China-focused Majestic Gold (TSXV: MJS) has suspended operations at its Denggezhuang (DGZ) underground mine in the eastern province of Shandong after a hanging wall incident killed one of its employees.
The gold miner worker was struck by loose rock while performing risk removal operations at DGZ, about 550 km southeast of Beijing, according to a news release on Monday. The site is one of three underground mines operated by Majestic’s subsidiary based in Yantai City. Despite immediate rescue efforts, the worker succumbed to injuries, it added.
Provincial authorities ordered production suspended and the company to rectify the situation while they temporarily withheld the mine’s licenses. They also ordered an immediate investigation into the accident’s cause and the suspension’s potential costs.
Investigation review
It wasn’t clear when mining might resume, but an investigation team is to review the company’s report first, company said.
Majestic said it will continue to work closely with its subsidiary, Yantai Mujin, to fully cooperate with the investigation. The company “is committed to implementing all necessary safety measures, addressing potential hazards, and ensuring that all on-site safety management and supervision are in place,” it said.
Majestic operates several mines in Shandong province, with its main asset being the Songjiagou open-pit mine located 50 km south of downtown Yantai. Last year, it produced 31,949 oz. across all its operations.
Shares of Majestic Gold fell 2% to 15¢ apiece following the mine suspension, giving the British Columbia-based gold miner a market capitalization of $152.9 million.
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