Zhaojin Mining's stock plummeted 5.08% during intraday trading on Monday, extending recent losses for the gold producer.

The sharp decline comes as the market reacts to the fallout from a fatal safety incident at the company's subsidiary. On May 13, an underground accident during slag removal operations at the Jintingling Mining subsidiary resulted in 3 deaths and 2 injuries. This marks the second fatal accident at Zhaojin Mining this year. In response, local emergency management authorities have ordered a full production halt across all operating mines in the Zhaoyuan region for comprehensive safety inspections.

The market remains concerned that the prolonged shutdown will directly impair the company's gold output, while heightened regulatory scrutiny may delay expansion projects. The broader gold sector also traded lower, amplifying the selling pressure on Zhaojin Mining.