BEIJING - China's largest gold producer, Zijin Mining Group Co, said Sunday that two of its subsidiaries were being sued for 19.5 million yuan （$2.94 million） in compensation following a tin mine dam collapse in Xinyi city in South China's Guangdong province.
A tailings dam of a tin mine operated by Zijin's two subsidiaries, Xinyi Zijin Mining and Xinyi Baoyuan Mining, collapsed during a Sept 21 typhoon, leaving 28 killed or missing, said a statement by Zijin Mining Group Co on the Shanghai Stock Exchange website.
The Xinyi city government made the charges and said if the actual losses exceed 19.5 million yuan, it would take further legal action, said the statement.
The subsidiaries received notice of the pending lawsuit from the Guangdong Xinyi City People's Court on Saturday.
The accident is still under investigation and the two subsidiaries will turn over the dam's design and construction information and will shoulder corresponding responsibilities following the court's ruling, said the statement.
Before the accident, Zijin Mining Group Co said on Oct 7 that it had been fined 9.56 million yuan by the Fujian Provincial Environmental Protection Bureau for causing severe water pollution by its subsidiary copper plant in the Tingjiang River in Fujian province in July.
Zijin stocks ended the day at 10.27 yuan Friday, up 0.69 percent in Shanghai, but lost 1.39 percent to HK$7.83 （$1.01） in Hong Kong.
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