On November 17, Hulunbuir Chihong, a wholly-owned subsidiary of Yunnan Chihong Zinc Germanium Co., Ltd. (600497.SH), received the "Rectification review opinion" issued by the Hulunbuir Emergency Management Bureau and agreed to hulunbuir Chihong to resume production and operation activities. Accordingly, Hulunbuir Chihong gradually resumed production on November 18, 2021.
Previously, in August, Hulunbuir Chihong's reduction furnace caused an instantaneous spill of carbon monoxide from the dust collection area of the bag due to positive pressure, resulting in four employees accidentally inhaling carbon monoxide poisoning during the equipment inspection, and three of them died.
After the accident, Hulunbuir Chihong successively hired experts in two batches to conduct safety production inspections, and hired a qualified intermediary agency, Shandong Xinanda Engineering Consulting Co., Ltd., to compile and complete the "Hulunbuir Chihong Mining Co., Ltd. Lead and Zinc Smelting Project Safety Status Evaluation Report" and "Hulunbuir Chihong Mining Co., Ltd. Hazardous Chemical Project Status Evaluation Report", and the comprehensive evaluation conclusion is that there are safe production conditions. According to the expert acceptance results organized by the Hulunbuir Emergency Management Bureau twice, the problems found by Hulunbuir Chihong in previous inspections have now been rectified.
At the same time, the Hulunbuir Municipal People's Government also set up an accident investigation team in accordance with the law, found out the cause of the accident, and the accident investigation report was reviewed and approved by the Office of the Inner Mongolia Autonomous Region Work Safety Commission. Hulunbuir Chihong proposed and implemented the following preventive measures: dismantled the poppet valve chamber of the incident, sealed the leakage point, added toxic and harmful gas detectors, revised the three major procedures, added warning signs, added on-site instruments, and transformed the poppet valve gas circuit.
In addition, Hulunbuir Chihong re-sorted and identified the risks and established a control list of toxic and harmful gases, flammable and explosive hazardous chemicals. A total of 1,300 people have been trained and tested on toxic and harmful gas leakage, disposal, emergency response ability. According to the consent and approval of the Hulunbuir Municipal People's Government on the "Instructions on the Resumption of Work of Hulunbuir Chihong Mining Co., Ltd.", combined with the above situation, the Hulunbuir Emergency Management Bureau agreed to the resumption of production and operation activities of Hulunbuir Chihong.
It is understood that the accident caused Hulunbuir Chihong to stop production for 94 days, which is expected to reduce the output of electric zinc by 26,000 tons and crude lead by 12,000 tons; it is expected to reduce the net profit attributable to shareholders of listed companies by 124 million yuan in 2021. As of September 30, 2021, the company produced 373,900 tons of lead and zinc refined products, and achieved a net profit attributable to shareholders of listed companies of 1.109 billion yuan.
Chihong Zinc Germanium said that the company will deeply learn the lessons of this accident, further strengthen the safety production control of various molecular companies, and continue to improve the long-term mechanism for hidden danger investigation and governance.
(Editor-in-charge: Zhao Rong)