Domestic

Zijin shares jump in Shanghai

(Agencies)
Updated: 2010-07-20 15:09
Large Medium Small

Zijin Mining Group Co, China's biggest gold producer, rose by the maximum 10 percent limit in Shanghai as Great Wall Securities Co and Shenyin & Wanguo Securities Co said the company's recent losses were excessive.

Related readings:
 Zijin shares jump in Shanghai Zijin Mining required to close copper plant
 Zijin shares jump in Shanghai Zijin copper plant springs another leak
Zijin shares jump in Shanghai Zijin executives detained after water contamination
 Zijin shares jump in Shanghai Regulator probes Zijin's acid leak disclosure
Zijin Mining gained 0.52 yuan to 5.73 yuan at the 11:30 am local break, the most since October 2009. The shares had plunged 10 percent before today in the week since the company announced acid-laced water had leaked from its largest mine, polluting the Ting River and poisoning enough fish to feed 72,000 residents for a year.

"Because of the pollution scandal, Zijin's price is relatively low compared to other gold mining companies," Geng Nuo, analyst at Great Wall, said in a phone interview. At Shenyin & Wanguo, analyst Peggy Ye said the gains weren't unusual. "It's a bounce from the bottom," she said.

Zijin Mining today expressed "deep regret" for the leak of and a nine-day delay in admitting to the breach and losses caused to fish farmers.