Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Protection
• Community Relations
• Economic Value
• Governance

Environmental Achievements

• SGX/HZG Silver-Lead-Zinc Mine classified as a "National Level Green Mine" in November 2015.
• Achieved "zero discharge" and full recycling of beneficiation wastewater at SGX/HZG mine.
• Guangdong Found built a dry-stack tailings (DST) system, setting a new standard for tailings treatment in Guangdong Province.
• Guangdong Found invested and built a paste backfill plant, expecting at least 40% of tailings to be backfilled into the underground mining area.

Social Achievements

• Received numerous awards and recognitions for social contributions and community engagement from various government bodies and organizations.
• Significant investments in improving employees' living environments and camp facilities.
• Implemented various poverty alleviation initiatives benefiting over 300 low-income families.
• Improved community transportation infrastructure through road and bridge construction projects.

Governance Achievements

• Maintained high standards of corporate governance with 80% of the Board of Directors being independent.
• Established a comprehensive system of internal controls over financial reporting.
• Implemented a Code of Business Conduct and Ethics and Whistle-Blower Policy with no reported breaches in 2020.
• Implemented a transparent procurement policy to promote integrity and avoid bribery and fraud.

Climate Goals & Targets

Environmental Challenges

• Mining "nest-like ore bodies" which are difficult to mine.
• Managing tailings and waste rock disposal.
• Maintaining high safety standards in mining operations.

Mitigation Strategies

• Adopted the cut-and-fill resuing mining method to reduce dilution and ore loss rates.
• Improved milling process to enhance recovery rates.
• Implemented a dry-stack tailings system and paste backfill plant to manage tailings.
• Established a comprehensive emergency response system and implemented a dual prevention mechanism to improve safety.

Supply Chain Management

Supplier Audits: 100% supplier evaluation rate

Responsible Procurement

• Transparent procurement policy
• Green Procurement practices prioritizing products with safety approval and certifications (ISO9001 or ISO14001)
• Long-term relationships with certain suppliers
• Integration of social responsibility concepts into procurement processes

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, CASS-CSR 4.0, CASS-CSR 4.0 - Mining Industry, UN Global Compact's Guide for Business Action on SDGs

Awards & Recognition

• Numerous awards and recognitions for social contributions, community engagement, and green mine construction.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Occupational Health and Safety
• Community Relations
• Human Rights
• Supply Chain Management
• Corporate Governance

Environmental Achievements

• Dongcaogou Gold and Silver Mine passed third-party green mine verification and evaluation.
• Five mines obtained Green Mine certification.
• Implemented photovoltaic power generation projects, saving 76 tonnes of standard coal and reducing 189 tonnes of carbon dioxide emissions.
• Water recycling and utilization rate increased from 83.52% to 84.85%.
• Reclaimed 9.98 hectares of land.

Social Achievements

• Zero work-related fatalities.
• Lost Time Incident Rate (LTIR) reduced to 0.25.
• Donated $1.1 million to support community infrastructure, education, and rural tourism.
• 72.48% of employees hired locally.
• Total employee participation in vocational training reached 15,783 person-times.

Governance Achievements

• Established a Sustainability Committee under the Board of Directors.
• Established an ESG Management Center.
• Formulated an ESG performance-based evaluation plan.
• Conducted 64 compliance training sessions.
• Invested $7.8 million in R&D and obtained 19 new patents.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacts on operations and sales.
• Intensified environmental legislation in China.
• Government annual inspections and potential penalties.
• Aging and decreasing number of miners.
• Cybersecurity risks.
• Climate change risks (extreme weather, flooding).
• Water stress in operating areas.

Mitigation Strategies

• Established an epidemic prevention and control leading group and emergency response plan.
• Increased investment in environmental protection and ensured compliance.
• Actively carried out deep exploration and digital exploration technology.
• Reviewed human resources strategy and collaborated with universities for training.
• Optimized information security management system and enhanced preparedness.
• Strengthened monitoring of energy consumption and emissions, transitioned to clean energy.
• Implemented water-saving measures and increased water recycling.

Supply Chain Management

Supplier Audits: 161 suppliers

Responsible Procurement

• Prioritized procurement of supplies with ISO9001, ISO14001, and other certifications.
• Prioritized local procurement.
• Required suppliers to meet environmental standards and avoid excessive packaging.
• Required suppliers to comply with transportation regulations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (torrential rains, floods, typhoons)
• Changes in precipitation and extreme weather fluctuations

Transition Risks

• Carbon emission quota system in China
• Stakeholder expectations regarding climate change response
• Market risks related to downstream customer carbon emission intensity investigations

Opportunities

• Development of energy-efficient products
• Providing mineral materials to support global energy transition

Reporting Standards

Frameworks Used: GRI Standards 2021, CASS-ESG5.0, SDG Compass, ICMM Global Industry Standard on Tailings Management, TCFD recommendations, SASB standard on Metals and Mining

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The report mentions alignment with the SDG Compass but doesn't specify which goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 8th Canada-China Business Excellence Award "Gold Award for Sustainable Development"
• Outstanding ESG Practitioner
• Henan Province "Ankang Cup" Contest
• Henan Rural Revitalization Special Event & 99 Public Welfare Day Caring Enterprises
• Civilization Unit of Luoyang City
• Top 100 Industrial Enterprises in Luoyang
• Outstanding Unit of Enterprise Management Innovation in Luoyang City
• Green Intelligent Lead-Zinc Mine Construction Engineering Technology Research Center in Yunfu City
• Specialized & Innovative SME of Guangdong Province
• 2022 Health Enterprise of Guangdong Province
• Outstanding Production Safety Unit in Luoyang City
• 2022 Luoyang Recommended Unit for Model Workers Helping Rural Revitalization

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Recycled 84.85% of water used in operations, a 5.63% increase compared to 2020 levels.

Social Achievements

• No work-related fatalities; reduced Lost Time Injury Rate (LTIR) from 0.55 to 0.25 for the fourth consecutive year.
• Invested in local communities supporting education, economic development, public health, and infrastructure.

Governance Achievements

• Adopted four new ESG-related policies at the Board level: Environmental Protection Policy, Community Relations Policy, Human Rights Policy, and Occupational Health and Safety Policy.
• 100% of operating mines awarded ISO certifications in environmental, energy, and occupational health and safety management.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core Accordance option), CASS-ESG5.0, SDG Compass, Global Industry Standard on Tailings Management, TCFD recommendations, SASB standard on Metals and Mining

Certifications: ISO certifications (environmental, energy, and occupational health and safety management)