Yue Da Mining (HKG:0629) (Yue Da) announced that in the morning of 5 July 2012, Tengchong Ruitu Mining and Technology Company Limited (Tengchong Ruitu, a wholly-owned subsidiary of Yue Da which is currently operating an iron mine in Tengchong county, Yunnan Province, the PRC) received a notice from the relevant local government authority saying that due to an industrial accident occurred in another mining site in Tengchong county (which is operated by a third party independent of Yue Da), all mining sites located in Tengchong county are ordered to suspend from any operation and production until further notice. As such, Tengchong Ruitu has stopped the operation and production of its mine since yesterday.

The board of Yue Da confirms that the safety procedures adopted by its operating subsidiaries are from time to time in compliance with the requirements and guidelines of the relevant regulatory authorities. Yue Da is currently estimating the losses that could be resulted from the abovementioned suspension of operation and production of the relevant mining site.

The board of Yue Da also wishes to inform the shareholders that, by reasons including certain road construction projects undertaken by the local government authority which have caused inconvenience to the transport to and from the relevant mining site, the production volume from Tengchong Ruitu for the six months ended 30 June 2012 has decreased comparing with that of the same period in 2011.
 

Source:chinesestock.org