Zhongjin Gold Falls as Six Students Die in Factory Visit Accident

(Digital Phablet) July 24 — Shares of Zhongjin Gold declined sharply following a tragic accident that resulted in the deaths of six college students during their visit to the company’s beneficiation facility.

Zhongjin Gold [SHA: 600489] ended the trading day down 4.4%, closing at CNY15.19 (approximately USD2.12) in Shanghai, after experiencing an initial drop of up to 8.1% earlier in the session.

Yesterday, a group of students and faculty from Northeastern University in Liaoning Province toured the processing plant operated by Zhongjin Gold’s subsidiary, China Gold Inner Mongolia Mining, according to the Beijing-based parent company. During the visit, a grating platform unexpectedly gave way, causing the six students to fall into a flotation tank—one of the facility’s critical processing units—and tragically lose their lives. One teacher was injured in the incident.

A flotation tank is a large, deep container used for separating metal-bearing mineral particles from ore through a specialized process. It contains a high-density slurry made of crushed ore, chemicals, and reagents, along with a rapidly spinning impeller. Experts warn that falling into such a tank nearly always results in fatality.

The accident likely stems from inadequate safety checks on the grating structures and a lack of proper emergency response drills, according to safety analysts familiar with industrial accidents.

Zhongjin Gold operates as a subsidiary of China National Gold Group, a state-owned enterprise. It specializes in the exploration, mining, beneficiation, and smelting of gold and other non-ferrous metals.

Last year, the company reported a 14% increase in net profit, reaching CNY3.4 billion (about USD475.4 million), driven by rising gold prices. Revenue also grew by 7% to CNY65.6 billion (roughly USD9.2 billion).

Founded in 2007, China Gold Inner Mongolia Mining primarily focuses on developing the Wunugetushan Copper-Molybdenum Mine in Hulunbuir. The subsidiary posted a net profit of CNY2.3 billion last year, marking it as Zhongjin Gold’s most successful subsidiary, according to recent financial statements.