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Guangdong villagers sue Zijin Mining for 170 million yuan

Guangdong villagers sue Zijin Mining for 170 million yuan

Write: Varian [2011-05-20]
Zijin Mining Group Co, China's top gold producer, is facing claims filed by 852 villagers from Guangdong province for 170 million yuan for damage resulting from a series of toxic spills
Zijin, which had enjoyed a reputation as one of China's premier mining firms and has mining interests overseas, has run into frequent trouble with failing dams.
In September last year, the firm halted production at a tin mine in southern Guangdong province after a leak in the mine's residue pool caused by heavy rains had flooded nearby villages and killed several villagers.
Zijin authorities said in December last year that the company would pay to help victims of the accident. According to the company, it accepted a provincial government report that found it and one of the firm's subsidiaries responsible for the fatal dam collapse caused by safety and construction violations, which were aggravated by a typhoon.
Zijin was also fined 30 million yuan, 4.5 million U.S. dollars, by a court in Fujian Province for a major pollution accident last year.
The toxic spill in July at the company's Zijinshan gold and copper mine poisoned thousands of fish, causing losses of 22.2 million yuan, and also polluted drinking water for tens of thousands of people.
Zijin was ordered to pay the fine by the Xinluo District Court in Longyan City on Sunday, according to a filing from the company, which is listed in Shanghai and Hong Kong, on Monday.
The court allowed a deduction of the administrative fine of 9.56 million yuan imposed by Fujian's environmental protection authority, which Zijin has already paid.
According to the court, Zijin violated national environmental regulations and "did not adequately focus on environmental protection and safety issues in its production" or resolve existing problems, "which led to leaking of dangerous waste into the Ting River."
Five managers and employees directly responsible for the incident were sentenced to imprisonment of up to four years and six months and were also ordered to pay fines, according to the Fujian-based company.
China's press watchdog said Zijin also tried to bribe reporters to cover up the toxic spill.
By People's Daily Online