Concerns grow over Zijin management after deaths at acid plant

Zijin Mining, the mainland's biggest gold miner, saw its share price tumble as much as 7 per cent after it announced its third operational crisis in 19 months, renewing concerns about its management.

Three workers died at an acid plant in the company's home base of Fujian province on Thursday. The company said a worker collapsed after he entered a container of activated coke while trying to clear a blockage in the vessel.

Three other workers tried to rescue him, but also collapsed. Three of the four later died.

The local authorities ordered the suspension of production trials at the plant, scheduled to run from mid-December last year to mid-June this year, and called an investigation into work safety.

CLSA resources sector analyst Richard Leung said Zijin had several months to sort out safety problems at the plant, so the incident should not affect its profit for this year and the plant's July production date.

'However, since this is its third industrial accident in one and a half years, its equity valuation continues to deserve a discount to peers due to governance issues,' he said.