Domestic

Zijin shares jump in Shanghai

(Agencies)
Updated: 2010-07-20 15:09

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.

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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.