A month ago, Zijin Mining Group was a Chinese corporate star, a profitable gold and copper miner with ambitions to further expand abroad. Today, Zijin is an environmental villain to China's public after a July 3 leak of copper mine waste into a river killed fish, fouled drinking water for 60,000 people and flowed into a populous neighboring province. Zijin admits breaking rules and state media are questioning whether local officials ignored misconduct. The scandal highlights chronic complaints in China that politically favored companies are allowed to ignore safety rules, leading to deadly and damaging oil and chemical leaks, mine fires and other disasters. It has focused scrutiny on a major publicly traded Chinese company with assets in seven countries from Peru to South Africa and that is bidding to expand in Australia and Congo. Zijin boosted profits by slashing costs but skimped on investment, making such a disaster almost inevitable, said Liu Minda, an analyst for Huatai Securities. “They didn't spend money on things they should have,” Liu said. “We are not surprised that they have environmental accidents.” The disaster in Shanghang, a town on China's southeast coast in Fujian province, has received extensive coverage by state newspapers, possibly as a warning to other companies and local officials. “Like other polluters, Zijin has countless ties with the local government,” complained an editorial in the Guangzhou Daily, a major newspaper in Guangdong province, downstream from the mine. “Zijin Mining is like a selfish, gold-hungry crocodile. It takes no responsibility for the local people's life and health.” Also this week, an oil spill has coated beaches near the port of Dalian in the northeast after a pipeline owned by state-owned China National Petroleum Corp. blew up July 16. Communist leaders promise improvements after each but accidents still are common. Local officials sometimes are reluctant to enforce regulations for fear of losing jobs and tax revenue. Since Zijin's waste spill, police have detained the facility's manager, deputy manager and environmental protection officer. The chief county environmental official resigned. Zijin publicly apologized and admitted a waste pond at its Zijinshan Copper Mine in Shanghang was improperly built and operated.
