Xinyi Zijin Mining settles with dam collapse victims

Updated: 2011-12-28 11:00


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GUANGZHOU - Xinyi Zijin Mining Co Ltd, subsidiary of China's top gold producer Zijin Mining, reached a settlement Tuesday with the victims of a dam collapse near a tin mine that killed 22 people last year.

Xinyi Zijin agreed to pay over 3.26 million yuan ($515,358) to the 21 plaintiffs from five lawsuits. The plaintiffs are relatives of five deceased people, according to the settlement.

Xinyi Zijin was found responsible for the fatal dam collapse in Xinyi city of Guangdong province on Sept 21, 2010, due to safety and construction violations, which were aggravated by a typhoon.

Chen Xiaoning, general manager of Xinyi Zijin, said in court that the company was "sorry for what happened and would like to reach a settlement with the plaintiffs."

Zijin Mining said it backed Xinyi Zijin to settle claims made by the victims.

The dam breach left 523 houses destroyed and 815 damaged, according to an official investigation.

A total of 2,499 lawsuits have been filed against Xinyi Zijin with a total compensation demand of over 340 million yuan, the Xinyi city people's court said.

The court sessions of the remaining 2,494 lawsuits will open later, the court said.