China’s Zijin Mining (SHA: 601899) has paused activity at its Buriticá Gold Mine in Colombia following a bombing on Wednesday afternoon that killed two and injured 14 others.
The terrorist attack unfolded in the mine’s Higabra tunnel and was orchestrated by a local organization of illegal miners, according to preliminary investigations. The two workers killed were security and labour contractors at the site and four Colombian police officers were among those injured by the explosion.
In a news release Friday Zijin said that it was “deeply shocked and outraged by the attack.” Continental Gold, Zijin’s majority-owned subsidiary running the mine, initiated its emergency response plan in wake of the incident involving a swift underground rescue effort for the victims.
“We strongly condemn the heinous actions of the criminals and express our deepest sorrow and condolences for the two people who lost their lives,” said Zijin in the news release.
The government of Colombia has organized a security meeting to deal with the situation and says the attackers will be severely punished, according to Zijin.
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Zijin says it is calling on Colombian authorities to step up efforts to mitigate violence associated with illegal mining in the country.
The company has a 69 per cent interest in Continental Gold and the attack comes in the midst of an ongoing expansion at the mine expected to increase production capacity by 1,000 tonnes of ore per day. Zijin acquired the Buriticá Gold Mine from Continental Gold in 2019 for approximately $1 billion.
Newmont Corporation (TSX: NGT) (NYSE: NEM) acquired a 20 per cent stake in Continental Gold when it invested US$109 million in the Buriticá Gold Mine in 2017.
Zijin’s shares dropped by 1.89 per cent Friday to the equivalent of $2.10 on the Shanghai Stock Exchange.
rowan@mugglehead.com
