Rectification rate of “97.71%” under the fatal loophole,China Gold 400 million investment in production safety is difficult to prevent the “old cracks”
2025-07-29 20:23

On July 23rd, six students from Northeastern University were visiting and learning about flotation processes at the Unugtushan Copper-Molybdenum Mine of China National Gold Group Inner Mongolia Mining Co., Ltd. ("Inner Mongolia Mining Company") when a grating plate fell off and caused them to fall into a flotation tank. A teacher accompanying them was also injured. The Inner Mongolia Autonomous Region government has upgraded the investigation into the incident.

On the afternoon of the 24th, a China Youth Daily reporter obtained an accident investigation report from relevant Northeastern University staff. The report indicates that the initial investigation determined the direct cause of the accident was a chronic crack in the weld seam of the fixed angle steel on one side of the steel grating plate (1.2m x 3m) above the flotation tank. The weld fractured instantly under concentrated load that day, causing the entire grating plate to flip and fall. Grids are metal mesh panels installed above equipment such as flotation tanks or in passageways, providing load-bearing and protective isolation, preventing people or objects from falling directly into the equipment or space below.

The accident investigation team found that while the company involved had partially replaced the grating in February, it failed to conduct nondestructive testing on all welds. The platform where the incident occurred was missing daily load-bearing markings, and there was no limit on the number of people standing at once. The "Teaching and Internship Safety Agreement" signed between the school and the company failed to specify on-site supervision, personnel limits, and emergency procedures.

According to Red Star News, on the 25th, a Red Star News reporter was allowed to visit the factory site involved. During their on-site observations, they discovered gaps in several gratings in the open area. The factory manager did not directly respond to questions about whether these gaps posed a safety hazard.

The company involved has a strong background. According to public information, China National Gold Group Inner Mongolia Mining Co., Ltd. was established in 2005 and is held 90% and 10% by China National Gold Co., Ltd. (600489.SH), respectively. It focuses on the development of the Unugtu Mountain project. In 2024, the Inner Mongolia Mining Company's net profit reached 2.28 billion yuan.

Its controlling shareholder, China National Gold Group, has seen continued growth since completing its acquisition of a 90% stake in the company in 2020. In 2024, China National Gold Group achieved record economic performance, with net profit attributable to parent company shareholders reaching 3.386 billion yuan, a year-on-year increase of 13.71%.

The highly publicized safety management approach is facing a reality check. According to the "2024 ESG Report of China National Gold Group Co., Ltd.", China National Gold Group's investment in production safety reached 418 million yuan in 2024 (approximately 450 million yuan in 2023); safety education and training coverage reached 100%; and 82 rounds of inspections were conducted on its subsidiaries throughout the year, identifying a total of 1,485 hidden dangers (including 1,245 general safety hazards, 192 environmental hazards, and 48 major accident hazards). Of these, 1,451 hazards have been rectified, a rectification rate of 97.71%. Rectification of 39 major hazards has been completed, and the remaining 9 are being rectified according to schedule.

The report specifically noted that in July 2024, the Inner Mongolia Mining Company conducted an in-depth safety hazard investigation, developed a detailed inspection plan, and adopted a "comprehensive investigation and comprehensive remediation" strategy, covering key areas and important links such as safety, environmental protection, and occupational health. The company continuously improved the targeted, standardized, professional, and effective nature of its safety hazard investigation work, and emphasized the need to "ensure that safety hazards are nipped in the bud."

However, these impressive statistics did not prevent the tragedy. The accident once again exposed the fact that, despite safety production publicity, some companies still have serious loopholes in implementing detailed supervisory measures and hazard investigation systems.

Just over ten days before the accident (on July 11), the Inner Mongolia Mining Company had held its first-half safety production committee meeting. Its WeChat official account, "China Gold Inner Mongolia Mining," published an article on July 16 titled "Analyzing the Situation and Strengthening Measures | Inner Mongolia Mining Holds First-Half Safety Production Committee Meeting," which has since been deleted.

The meeting emphasized that all cadres and employees of Inner Mongolia Mining should further enhance their political awareness, fully recognize the paramount importance of safety, stability, and ecological and environmental protection, and truly strengthen their sense of responsibility for safe development. Department heads should firmly uphold their primary responsibility as "leaders," taking personal responsibility and leading the charge. Mid-level managers in charge of safety in each department should proactively consider and act, fully implementing safety work in their respective areas of responsibility. All employees should shoulder their own responsibility for production safety, fulfill their responsibilities as "primary responsible persons" for safety, and conscientiously perform their duties. This will foster a positive environment of full participation, shared responsibility, and joint efforts, and contribute to the company's high-quality and safe development through strong performance.

The meeting emphasized the importance of deeply learning from recent domestic accidents, carefully analyzing and assessing the current production safety situation in this sector based on the current season and time, formulating targeted preventative measures, and effectively and effectively ensuring production safety. We must strengthen the investigation and remediation of hidden dangers, comprehensively utilize daily inspections and special spot checks, prepare for responses in advance, and strengthen monitoring and early warning to ensure responsible, preventive, and prepared production safety efforts. We must strengthen regular oversight and regulation, implement differentiated safety supervision based on different regions and categories, and resolutely implement strict management and control. We must strike hard, strike hard, and use severe punishments to create a strong deterrent.

Earlier on February 25th of this year, the Inner Mongolia Mining Company's official WeChat account published an article titled "Production and Operations | Inner Mongolia Mining's Ore Dressing Department Flotation Workshop Further Improves Production Efficiency and Quality" (the article has since been deleted). The article stated that throughout production, the flotation workshop of the mining company's Ore Dressing Department prioritized production safety and strictly adhered to the company's safety operating procedures. Regular internal self-inspections and safety training were conducted to effectively enhance employee safety awareness. Numerous technical renovation projects to improve the working environment were successfully completed, including the replacement of the ground screen plates on the second-level mixing platforms of the first and second series, the renovation of the third series foam flushing water system, and the repair of the reagent preparation room, lime milk preparation room, and the ground surface of the circulating pump, eliminating safety hazards on site. By 2024, the flotation workshop will have zero safety and environmental accidents, zero occupational health accidents, and zero production accidents, achieving the "zero accident" safety goal.

Another article published on July 8th, "Inner Mongolia Mining: Sparing No Efforts to Improve Production and Ensure Steady Growth in Ore Dressing Production Indicators," was also deleted.

The preliminary investigation revealed "old cracks" and "partial replacement without non-destructive testing," which stood in stark contrast to the company's high-profile safety pledges, intensive inspection meetings, and claims of "zero accidents" and "elimination of hidden dangers." After the accident, according to incomplete statistics, the company quickly deleted at least three related promotional articles, raising questions about the authenticity of its safety management practices.

The accident had an immediate impact on the capital market. At the opening of trading on July 24th, the share price of China Gold (600489.SH) plummeted 7.74%, wiping out nearly 4 billion yuan in market value. China National Gold released a statement explaining the situation that day, stating, "Following the incident, company leadership attached great importance to it, immediately activated the emergency plan, and promptly went to the scene to organize and handle the situation. The matter was promptly reported to the relevant local government departments in accordance with relevant procedures. All response efforts are currently proceeding in an orderly manner."

On the evening of the 24th, China National Gold released a progress announcement: "China National Gold Group Inner Mongolia Mining Co., Ltd. has currently halted production. The company will actively and properly facilitate follow-up efforts based on the on-site handling situation."

The tragedy caused by this accident is deplorable and serves as a fresh wake-up call for safe production in mining enterprises. The often-touted "zero accident" goal cannot be achieved by simply piling up data on paper; it must be implemented through the inspection of every weld, every load-bearing steel plate, and every level of personnel guidance and risk warning. The cost of this young life should prompt deep reflection across the industry.

Furthermore, why did high safety investments, intensive safety meetings, and publicity efforts fail to prevent this tragedy caused by "old cracks"? The results of the Inner Mongolia Autonomous Region government's upgraded investigation will reveal the underlying causes and management responsibilities behind the accident.

Author:Qinger