Regent Pacific Group Limited

Climate Impact & Sustainability Data (2007-04 to 2007-12, 2023)

Completed upgrading of existing tailings storage facility and waste dump at Dapingzhang
Implemented a comprehensive mine-wide environmental, health and safety plan at Dapingzhang
No reportable environmental incidents during the financial year

No lost time injuries reported during the financial year at Dapingzhang
Community initiatives at Dapingzhang centered on land compensation and training locals

High standards of corporate governance with sound policies and procedures in place
Monitoring developments in corporate governance as they relate to listed issuers in Hong Kong

Long-term Goals:

Medium-term Goals:

Produce 3 million tonnes of thermal coal annually from Ji Ri Ga Lang after 2009
Formalize legal relationships with partners on Ji Lin South and Project X coal deposits

Short-term Goals:

Commodity price volatility, particularly for zinc
Risks related to joint venture partnerships (potential disputes, deadlocks)
Operational risks (accidents, geological conditions, weather events)
Uncertainties related to exploration (economic feasibility of reserves)
Licence period of exploration and mining rights
Capital requirements and funding sources
Potential cost overruns on expansion
Operational costs (raw materials, electricity)
Government regulations (changes in laws and regulations)
Political and economic considerations in the PRC
Legal considerations in the PRC
Competition for resources
Foreign exchange risk
Credit risk
Interest rate risk
Environmental risk (tailings storage facility, waste dumps)
Accidents and insufficient insurance coverage
Conversion of exploration licence into mining licence for Ji Ri Ga Lang Coal Project
Issues with land use rights and building permits for West China Coke
Incomplete environmental impact assessment for West China Coke
Cyclical nature of coal markets and fluctuations in coal prices
Maximum foreign equity holding permitted in coal exploration and mining

Strict merger and acquisition criteria
Focus on high-margin, long mine life operations
Close monitoring of operating costs
Renting a diesel power station to mitigate power shortages at YSSCCL
Implementation of recommendations for strengthening tailings dam, waste dump design, and sediment control at YSSCCL
Developing a comprehensive environmental management system at YSSCCL
Focus on training workforce in appropriate safety procedures
Community initiatives centered on land compensation and training locals
Securing assets within project pipeline
Maintaining ability to fund current projects through balance sheet and increased cash flow
No net debt and no hedging, substantial cash reserves
100% prepayment received before shipment of concentrates
Provisional payment arrangements for trade receivables at YSSCCL
Outsourcing internal audit function to independent risk consulting firm
Annual internal control assessment

Frameworks Used: JORC Code

Certifications: ISO 17025 (SGS coal quality testing)

Third-party Assurance: Grant Thornton

Potential for bribery, extortion, fraud, money laundering, and corrupt practices within the company and its supply chain.

Implementation of a zero-tolerance anti-corruption policy covering all employees, partners, and suppliers; establishment of reporting mechanisms; regular review and monitoring of the policy by the board of directors.

Anti-corruption practices extended to the supply chain through procurement procedures.