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September 29, 2010

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Cops grill mine execs over dam collapse

FOUR executives of a tin mine owned by China's largest gold miner in the southern Guangdong Province were being interrogated by police following the collapse of a tailings dam.

Twenty-eight people died or went missing in the collapse of the dam, which held back water-soaked waste products in the mining operation.

Guangdong government officials said they have frozen the company's account and begun questioning the company's four chief officers of management, engineering, security and finance.

The dam at Zijin Mining's Yinyan tin mine in Xinyi City broke on September 21 in a landslide triggered by heavy rains from Typhoon Fanapi.

Authorities said they found the dam suffered "a serious quality problem" that led to the breakdown.

They gave no further details.

The accident will lead to a loss of 19 million yuan (US$2.8 million), the Fujian-based company said.

Yinyan tin mine, a wholly owned subsidiary of Zijin, has had its operations suspended because of the incident.

The mine got a production permit from Guangdong in August and was running trial operations when the incident happened.

The dam collapse may have caused more damage as well. Downstream, more than 90,000 kilograms of fish at fish farms in a river basin are reported dead.

Environment authorities of Wuzhou City, Guangxi Zhuang Autonomous Region, said they have received reports of dead fish in Huanghua River since September 22. Wuzhou authorities said they expect the cause of the fish deaths to be determined in a couple of days.




 

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