Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection and Energy Saving
• Work Safety
• Employees' rights
• Scientific and Technological Advancement
• Harmonious and Win-win Development

Environmental Achievements

• Reduced chemical oxygen demand emission to 4.95 tons and sulfur dioxide emission to 42.83 tons in 2010, leading in China in pollutant emission control.
• Recycled water accounted for 79.1% of total water usage (960,000 tons).
• Invested 2.55x10^8 RMB on tailings treatment, dedusting, sewage treatment, environmental monitoring, and land reclamation. New mine environmental protection investment accounted for over 10.55% of total investment (exceeding national standard).

Social Achievements

• Zero death toll per million tons (DTPMT) in 2010.
• Actively employed local residents in Inner Mongolia and Tibet (30% at Changshanhao Mine, 35% at Jiama Mine), with women comprising over 10% of the workforce at Changshanhao.
• Invested in community development, including infrastructure, education, and healthcare in local communities.
• 100% employee contract signing rate and social insurance coverage.

Governance Achievements

• Established a corporate social responsibility management system.
• Implemented a safety responsibility system and strengthened safety supervision.
• Maintained 100% contract performance rate for headquarters and major subsidiaries.

Climate Goals & Targets

Environmental Challenges

• High degree of production risks in mining operations.
• Maintaining environmental protection in challenging geographical locations (high altitude, fragile ecosystems).

Mitigation Strategies

• Increased investment in safety protection, safety education, and safety construction.
• Implemented advanced technology and equipment to minimize pollutant emissions.
• Utilized solar power technology to reduce energy consumption and carbon emissions.
• Implemented environmental management systems with organization, statistical monitoring, and assessment/reward/punishment components.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing eco-label products; selecting suppliers with advanced green environmental protection and energy-saving technologies; implementing government procurement for eco-label products; establishing long-term strategic partnerships with qualified suppliers; promoting localized procurement.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Guiding Opinions on Implementation of Social Responsibility by the Central Government Owned SOEs, China Corporate Social Responsibility Recommended Standard (CASS-CSR 2.0)

Certifications: Null

Third-party Assurance: Corporate Social Responsibility Research Center, Economics Division of Chinese Academy of Social Sciences

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards received in 2010 from various organizations (see report for details).

Environmental Metrics

ESG Focus Areas

• Health
• Safety
• Environmental Protection

Environmental Achievements

• Both of the Company’s mines have been improving their management system in health, safety, and environmental protection, enhancing the intrinsic safety, and strengthening the management of construction units.

Social Achievements

• The Company actively participates in and supports social welfare and charity causes, sponsoring a highly successful annual event with the Canadian Cancer Society.
• Its 2015 social responsibility report obtained the leading 4.5 star evaluation from Chinese Academy of Social Sciences.

Governance Achievements

• The Board has taken steps to ensure good governance practices, including appointing committees consisting solely of independent directors, establishing charters for Board committees, adopting a Code of Business Conduct and Ethics, and formalizing processes for assessing Board effectiveness.

Climate Goals & Targets

Environmental Challenges

• 2016 was another challenging year in the mining industry.
• Operational and financial challenges.
• Global economy is in a period of significant volatility and uncertainty.

Mitigation Strategies

• The Company continues to direct our attention and focus to the operational and financial challenges it faces, which we believe better equips the Company for future success and to maximize shareholder value.
• The Company is also planning to speed up the resource development, external mergers and acquisitions and seize opportunities with quality projects to achieve its goal of developing into a premier international mining company.
• The Company is also working to lower costs and improve efficiency at both its mines by taking practical and effective measures to optimize mine plans, manage power costs and promote greater scientific innovation in its operations.
• The Company has also been successful in reducing general and administrative, foreign exchange exposure and net interest expenses.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Deloitte Touche Tohmatsu

Awards & Recognition

• First place in the Awards of Science and Technology of Land Resources

Environmental Metrics

ESG Focus Areas

• Responsible management
• Energy conservation and environmental protection
• Work safety
• Rights and interests of employees
• Science and technology innovations
• Creation of harmonious communities

Environmental Achievements

• Reduced COD emission by 0.2 ton at Jiama Mine
• Reduced COD emission by 0 ton at CSH Mine
• Improved filling quality, efficiency and stability of tailings at Jiama Mine
• Built water-holding dam at CSH Mine dump area to prevent water seepage
• Implemented dust control and reduction measures at CSH Mine
• Invested RMB 443,800 million in plant restoration at CSH Mine
• Invested RMB 72 million in Sibugou water treatment plant at Jiama Mine

Social Achievements

• Achieved 100% employment contract signing ratio and social insurance coverage ratio
• Held employee representative conferences at CSH Mine to address worker concerns
• Provided training to 2,171 employees
• Achieved zero fatality rate for million-ton production, zero major equipment accident rate, zero major fire and explosion accident rate, and zero major traffic accident rate
• Implemented a safety culture building program at Jiama Mine
• Carried out 137 safety education and training sessions at Jiama Mine with 9,253 participants
• Introduced VR technology for safety training at Jiama Mine
• Donated 840 sets of school uniforms to schools near Jiama Mine
• Donated 50,000 kg of corns to herdsmen in Xinhure Sumu by CSH Mine

Governance Achievements

• Held four Board meetings, four Audit Committee meetings, three Nominating and Corporate Governance Committee meetings, one Compensation and Benefits Committee meeting, and five Health, Safety and Environmental Committee meetings
• Achieved 100% contract execution rate at headquarters and 100% major contract execution rate at subsidiaries
• Implemented anti-corruption education and audit and supervision
• Issued a total of 92 announcements and press releases

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied)
• Water scarcity (implied)
• Maintaining safety in mining operations
• Environmental protection in mining operations

Mitigation Strategies

• Developed alternative sourcing strategies (implied)
• Implemented water recycling initiatives
• Increased investment in safety and environmental protection
• Implemented stringent protective measures for hazardous chemicals
• Strengthened safety management systems and training programs
• Improved environmental management systems and technologies

Supply Chain Management

Responsible Procurement

• Public bidding for suppliers
• Review of supplier compliance with labor laws and SA8000 standard
• Incentives for CSR-qualified suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Sustainable Development Goals of the United Nations, Guideline on Fulfillment of Corporate Social Responsibility of Central Enterprises, Environmental, Social and Governance Reporting Guide (Hong Kong Stock Exchange), Guide on Preparation of Corporate Social Responsibility Reports of Chinese Enterprises (CASS-CSR4.0)

Certifications: CNAS certification for CSH Mine testing center, CNAS laboratory certification for Jiama Mine

Third-party Assurance: Independent third party authorized by the Research Center for Corporate Social Responsibility, Economics Division, Chinese Academy of Social Sciences

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

The report details how various initiatives contribute to the UN SDGs (see Appendix I)

Awards & Recognition

• Numerous awards for Jiama Mine and CSH Mine in various categories (see report)

Environmental Metrics

ESG Focus Areas

• Environmental Protection and Energy Conservation
• Work Safety
• Employees' Interests
• Technological Innovation
• Harmony and Win-win
• Corporate Governance
• Compliance with Laws and Regulations

Environmental Achievements

• Jiama Mine achieved zero discharge of domestic wastewater.
• CSH Mine replaced 25 coal-fired boilers with 17 air-source heat pumps, reducing exhaust gas emissions.
• Significant investment in ecological restoration projects at Jiama Mine, including research collaborations with universities.
• Both Jiama and CSH Mines met emission standards for various pollutants.

Social Achievements

• 100% employment contract signing ratio and social insurance coverage ratio.
• Zero occupational disease cases.
• Significant investment in employee training and development programs.
• Various employee engagement activities, including sports competitions and cultural events.

Climate Goals & Targets

Environmental Challenges

• Meeting stringent environmental regulations in both China and Tibet.
• Maintaining high safety standards in mining operations.
• Ensuring employee well-being in remote locations.

Mitigation Strategies

• Investment in advanced safety equipment and training programs.
• Implementation of robust environmental management systems.
• Employee support programs and initiatives to improve well-being.

Supply Chain Management

Responsible Procurement

• Public bidding
• Prioritization of local suppliers
• Review of supplier compliance with labor laws and SA8000 standard

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals, Guideline on Fulfillment of Corporate Social Responsibility of Central Enterprises, Environmental, Social and Governance Reporting Guide (Hong Kong Stock Exchange), Guide on Preparation of Corporate Social Responsibility Reports of Chinese Enterprises (CASS-CSR4.0)

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Environmental Metrics

ESG Focus Areas

• Environmental protection and energy conservation
• Work safety
• Employees' interests
• Technological progress
• Harmony and win-win

Environmental Achievements

• Jiama Mine adopted solar power generation equipment to reduce greenhouse gas emission.
• CSH Mine replaced all 7 coal-fired boilers with 72 air-source heat pumps, realizing zero emission of exhaust gas.
• Jiama Mine updated slurry filling systems and cement blanking, which has greatly improved filling quality, efficiency and stability. Backfill area reached 895,900 cubic meters in total.
• Jiama Mine achieved zero discharge of domestic wastewater.
• CSH Mine completed the land reclamation of southwest dump, with an accumulated reclamation area of 847,800 square meters.

Social Achievements

• The Company recorded zero fatality rate for million-ton production, zero major equipment accident rate, zero major fire and explosion accident rate, and zero major traffic accident rate.
• Both the employment contract signing ratio and the social insurance coverage ratio of the Company reached 100%.
• The Company provided training to 1,954 employees in total.
• The Company donated a total of RMB 342,100, mainly for supporting local infrastructure, helping difficult families and students and other programs.
• Jiama Mine launched an “enterprise plus farmer” model, realizing the industry-based and benefit-sharing Jiama Model.

Governance Achievements

• The Company held four Board meetings, four Audit Committee meetings, one Nominating and Corporate Governance Committee meetings, one Compensation and Benefits Committee meeting, and four Health, Safety and Environmental Committee meetings.
• The Company recorded a 100% contract execution rate, and the subsidiaries also recorded a 100% major contract execution rate.
• In 2021, there existed no legal cases regarding corrupt practices among employees.
• The Company issued a total of 82 announcements and press releases (in both English and Chinese language).

Climate Goals & Targets

Environmental Challenges

• Global climate change
• Reduction of discharge of mine production wastes
• Ensuring safety in the storage, transportation, and application of hazardous chemicals
• Maintaining a high level of safe operations
• Improving the safety management system

Mitigation Strategies

• Actively fighting climate change and fulfilling its corporate social responsibility.
• Updating slurry filling systems and cement blanking.
• Developing stringent protective measures in the storage, transportation, application and other processes of hazardous chemicals.
• Strengthening onsite management and system construction.
• Formulating a reward and punishment system based on the original safety management system.

Supply Chain Management

Supplier Audits: 316 suppliers selected by public bidding in 2021

Responsible Procurement

• Selecting suppliers with legal business qualifications, good reputation, good contract performance and perfect after-sales service.
• Prioritizing materials and equipment featuring mature technologies in local production, reliable product quality and notable price advantages.
• Requiring suppliers to comply with local labor laws and regulations, as well as SA8000 standard.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Sustainable Development Goals of the United Nations, Guideline on Fulfillment of Corporate Social Responsibility of Central Enterprises issued by the SASAC, Environmental, Social and Governance Reporting Guide issued by Hong Kong Stock Exchange, Guide on Preparation of Corporate Social Responsibility Reports of Chinese Enterprises (CASS-CSR4.0)

Certifications: CNAS certification (CSH Mine)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

The report details how various initiatives contribute to each of the 17 UN SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Listed in B.C.'s largest companies by revenue and CMJ's Top 40 Canadian mining companies.
• Various science and technology awards (Jiama and CSH Mines)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Work Safety
• Employees' Interests
• Technological Progress
• Harmony and Win-win
• Climate Change Response
• Corporate Governance
• Community Welfare
• Supply Chain Management
• Anti-corruption

Environmental Achievements

• Achieved zero emission of greenhouse gases at Jiama Mine.
• Reduced carbon dioxide emissions by 8,516 tons at CSH Mine due to replacing coal-fired boilers with air-source heat pumps.
• Improved filling quality, efficiency, and stability of tailings at Jiama Mine through updated slurry filling systems and cement blanking.
• Treated approximately 1.06 million cubic meters of acidic water at Jiama Mine's Sibugou Water Treatment Plant.
• Greening area of 251,900 square meters and planting of over 20,000 trees at CSH Mine, achieving a 93% greening coverage rate.
• Invested 410 million yuan in over 50 ecological restoration projects at Jiama Mine.

Social Achievements

• Maintained zero fatality rate, zero major equipment accident rate, zero major fire and explosion accident rate, and zero major traffic accident rate in 2022.
• Achieved 100% employment contract signing ratio and social insurance coverage ratio.
• Implemented “replacing manpower with mechanization and automation” project at Jiama Mine, improving production efficiency and reducing personal injury.
• Provided training to 1,712 employees.
• Maintained zero occupational disease cases.
• Donated a total of 10.188 million yuan for supporting local infrastructure, helping difficult families and students, and pushing forward rural vitalization.

Governance Achievements

• Established an effective internal audit system, with 15 consecutive years of reports indicating no material weaknesses.
• Implemented a three-level review mechanism for connected transactions, ensuring compliance and legitimacy.
• Conducted anti-corruption training for 825 employees.
• Recorded zero legal cases regarding corrupt practices among employees in 2022.
• Successfully returned to Shenzhen-Hong Kong Stock Connect.

Climate Goals & Targets

Environmental Challenges

• Climate change risks including policy and legal changes, market and technological shifts, and extreme weather events.
• Potential increase in compliance costs due to carbon peaking and carbon neutrality goals.
• Competitive pressure from peers with better ecological restoration, energy conservation, and emission reduction performance.

Mitigation Strategies

• Strengthened communication with local policy authorities and implemented compliance operations.
• Adjusted energy consumption structure, adopted environmentally friendly and energy-saving equipment and processes, and increased research and development of low-carbon technologies.
• Monitored extreme weather events, developed pre-plans and emergency measures, and actively responded to operational interruptions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Public bidding for suppliers
• Preference for suppliers with ISO14000 and OHSA18000 certifications
• Emphasis on environmentally friendly, energy-saving, and low-consumption products and services

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Policy and legal changes
• Market and technological shifts

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: Sustainable Development Goals of the United Nations, Guideline on Fulfillment of Corporate Social Responsibility of Central Enterprises, Environmental, Social and Governance Reporting Guide (Hong Kong Stock Exchange), Guide on Preparation of Corporate Social Responsibility Reports of Chinese Enterprises (CASS-CSR4.0)

Certifications: ISO 14000 (some suppliers), OHSA 18000 (some suppliers), CNAS (Jiama & CSH Mines)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17

Initiatives align with various UN SDGs, as detailed in Appendix I.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards received by Jiama and CSH Mines for various achievements in safety, technology, and environmental protection.