Shares of Zhaojin Mining Industry Co., Ltd. (1818.HK) opened down more than 8% on February 10th. By 11:19 a.m., the stock was trading at HKD 32.7 per share, representing a decline of 5.55%.
The drop follows a report from state media detailing an incident at one of the company's mines. According to a statement released by the Zhaoyuan Emergency Management Bureau on the evening of February 9th, a cage drop accident occurred in a blind vertical shaft at the Shangzhuang section of the Canzhuang Gold Mine at approximately 8:50 a.m. on February 7th. The accident resulted in seven fatalities. Post-accident handling is currently underway, and relevant departments including emergency management and public security have launched investigations into the cause of the accident and potential issues concerning the company's alleged failure to report the incident promptly.
Contacted for comment, a representative of Zhaojin Mining, speaking to an individual identifying as an investor, stated that the accident is not expected to have an immediate impact on revenue. However, when questioned about key issues such as whether the involved mine has suspended operations and the allegations of delayed reporting, the representative indicated that inquiries would need to be directed to the company's relevant functional departments. Multiple calls to the contact number provided by the representative went unanswered up to the time of publication.
Corporate records show that the Canzhuang Gold Mine is a member enterprise of Zhaojin Mining Industry Co., Ltd. (01818.HK). Established in 2009, the company primarily engages in the mining and dressing of non-ferrous metal ores. The Canzhuang mining area is located 20 kilometers northwest of Zhaoyuan city and has an annual construction scale of 750,000 tonnes.
It is noteworthy that the Canzhuang Gold Mine was penalized twice by local regulators in 2025. According to information from the Zhaoyuan government website, during a routine inspection on July 17, 2025, officials discovered that the quantities of tourniquets, triangular bandages, and satchels in the mine's emergency rescue storage were below the levels stipulated in its emergency预案. The mine was fined 25,000 yuan for violating regulations concerning the maintenance of emergency supplies.
Subsequently, on October 31, 2025, inspectors found additional safety violations at the mine's Shangzhuang section, including inadequate ventilation in a specific tunnel and insufficient capacity in the central pump house's power distribution system. For these infractions, which breached national safety equipment standards, the Canzhuang Gold Mine was fined 30,000 yuan.
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