Zijin Mining Group (601899.SH, 2899.HK) said that China’s securities regulator would formally investigate its actions preceding the disclosure of a copper smelting plant waste leak in early July, Bloomberg reported. Three employees at the plant have been taken into custody. The company has drawn public opprobrium for waiting nine days after it discovered a waste leak at a copper smelting plant in Fujian to reveal that the waste had seeped into the nearby Ting River, contaminating an estimated 1,890 metric tons of fish. Company spokesman Zhao Jugang said that the company would fully comply with authorities, and that the firm expects to spend US$29.5 billion in damage control. A recent Credit Suisse analysis estimates that the fiasco would knock some 0.9% off Zijin’s profit each month the plant is closed.
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