CICC Lingnan's flagship mine, the Fankou lead-zinc mine, halts production after roof fall accident

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CICC Lingnan announced that its flagship Fankou lead-zinc mine has suspended operations after a roof fall accident resulted in one fatality. The company has received a notice from the Shaoguan Emergency Management Bureau ordering an immediate production halt and a comprehensive safety inspection. The mine is currently shut down, and the cause of the accident is still under investigation. The company stated that because the duration of the shutdown cannot yet be determined, the impact on current and full-year earnings cannot be accurately estimated at this time. The Fankou mine has an annual production capacity of 180,000 tonnes of lead-zinc metal content, accounting for 60 percent of the company's total lead-zinc mining and processing capacity of 300,000 tonnes of metal per year. In 2025, the company's mining operations produced 253,800 tonnes of lead-zinc metal in concentrate, and the 2026 operating plan targets 266,400 tonnes. CICC Lingnan expects attributable net profit for the first half of 2026 to be between 1.05 billion and 1.2 billion yuan, a year-on-year increase of 87.89 percent to 114.73 percent, mainly driven by higher metal prices compared with the same period last year. In addition, the company experienced two general accidents in 2025, each resulting in one fatality. The first-phase mining project for resource integration at the Fankou mine is currently under construction, and it remains to be seen whether this round of safety inspections will delay the project's progress.

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