The Heilongjiang province of China ordered the suspension of Yichun Luming Mining Co. Ltd.'s molybdenum production after the Luming mine tailings dam leaked in March and contaminated the local river system, Reuters reported April 8, citing a report from the provincial government website.

Yichun Luming is a subsidiary of China Railway Resources Group Co. Ltd.

The newswire said there were no reported casualties in the March 28 incident, but the tailings pond released 2.53 million cubic meters of waste before it was plugged March 31.

The government said it will "temporarily withhold the company's safe production license" and the company's license for the tailings pond while rectifications are being conducted.

According to unnamed metal traders familiar with Yichun Luming, the company produces about 30,000 tonnes of molybdenum concentrate annually, which accounts for about 30% of spot market sales in the country, and a long suspension could result in a significant decline in supplies, Reuters reported.