FAST NEWS: Five missing in Zijin mining accident
The latest: Zijin Mining Group Co. Ltd. (2899.HK; 601899.SH) announced on Monday that a lift cage fell during construction of an open pit metal mine operated by its Julong Copper subsidiary, leading to the loss of contact with six people.
Looking up: Following the accident, Julong Copper activated its emergency rescue plan and provided updated reports to government agencies as the rescue operation continued.
Take Note: Any potential casualties could lead to an lengthy investigation, resulting in a shutdown of the operation that could lead to significant delays.
Digging Deeper: Established in 1986, Zijin was listed in Hong Kong in 2003 and in Shanghai in 2008. It engages in exploration, mining, production, smelting and sale of gold and other metals as its main business, and is a leader in China and a top 10 company worldwide in terms of mineral resources and reserves. Benefiting from higher gold and copper prices and increased production, the company’s revenue rose 20% to 270.3 billion yuan ($39 billion) last year, 79% of which came from domestic customers. Its net profit for the year rose 27.9% to 20.04 billion yuan.
Market Reaction: Zijin’s Hong Kong-listed shares rose 1.4% in early trading on Tuesday, but later gave back all of those gains and closed down 0.2% at HK$11.56 by the midday break. It now trades in the middle of its 52-week range.
Translation by Jony Ho
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