(Yicai Global) Aug. 7 -- Western Region Gold Co. [SHA:601069] (WRG) may face a loss of more than USD15 million (CNY100 million) as several of its gold and iron mines and exploration sites were shut down by the Chinese government for being in the Lop Nur Wild Camel National Nature Reserve.
The Xinjiang-based company said on August 4 that government agencies called off its rights to explore the Kesiman East gold mine and the Goukouquan West iron mine in Ruoqiang county, Xinjiang as they are in the reserve and ordered the group to exit the Wild Bactrian camel habitat.
WRG said it has spent USD12,242,700 (CNY82,301,300) on early-stage explorations of these two mines.
The government also told an Alatage iron mine backed by Western Region Gold Hami Gold Mine Co., a wholly-owned subsidiary of WRG, to stop production because it is in the reserve. The iron mine's net assets are worth about USD5,355,200 (CNY36 million).
The government terminated WRG's right to explore the Qiashikansayi gold mine in Xinjiang's Ruoqiang county for the same reason. The company invested USD34,000 (CNY229,000) on early-stage exploration of the gold mine.
The group said it is working to minimizes its losses, is studying the relevant national policies and will make suitable arrangements for affected workers. Wild Bactrian camels are a first-class nationally protected species on China's list of key protected animals.