Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Safety and Well-being
• Community Engagement
• Anti-corruption
• Sustainable Resource Management

Environmental Achievements

• Achieved 100% water recycling in Huili County processing plants.
• Remediated 171,000 m2 of area and created 118,000 m2 of green area.
• Purchased clean energy representing 20% of total electricity purchased.

Social Achievements

• No fatalities and only 4 minor injuries reported.
• 100% of employees received safety training.
• Spent over RMB300,000 on community development.

Governance Achievements

• Established a sound scheme for anonymous whistleblowing.
• Provided anti-bribery training to management.
• No lawsuits due to bribery or corruption.

Climate Goals & Targets

Environmental Challenges

• Meeting increasingly stringent environmental standards.
• Managing waste disposal (waste rocks and tailing slurries).
• Reaching the designed capacity of the tailing pond in Huili County.

Mitigation Strategies

• Expansion project launched for the tailing pond in Huili County.
• Implemented “Professional Management Measures for Safety and Environmental Protection” and “Rules for Evaluating Safety and Environmental Protection”.
• Strengthened waste management practices.

Supply Chain Management

Responsible Procurement

• Delegated procurement to one main supplier with anti-bribery clauses in the contract.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Well-being
• Community Development
• Corporate Governance
• Supply Chain Management
• Anti-corruption

Environmental Achievements

• Reduced carbon emissions by 5,654.78 tons through clean energy purchase.
• Saved 3,926,640 tons of water through water recycling and reuse.
• Reclaimed 215,953.19 square meters of waste mine land.
• Invested RMB115,000 in greening 79,761.33 square meters of mining area.

Social Achievements

• Provided occupational disease inspections for 482 employees.
• Invested RMB6,379,301 in safe production management.
• Average training duration per employee was 14.19 hours.
• Supported two villages in poverty alleviation, investing approximately RMB200,000 and creating job opportunities.

Governance Achievements

• Established three lines of defense for risk management.
• Implemented anti-corruption training and reporting channels.
• No major breach of conduct by employees in 2017.

Climate Goals & Targets

Environmental Challenges

• Insufficient treatment capacity of tailings pulp.
• High capital expenditure budgets for environmental compliance.

Mitigation Strategies

• Replaced old filter-press with advanced ones to improve tailings pulp treatment capacity.
• Implemented various preventive measures to protect ecological and geological conditions, consulting foreign mining specialists.

Supply Chain Management

Responsible Procurement

• Open, fair and impartial procurement principles.
• List of requirements on suppliers and contractors’ environmental and social responsibility.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Awards & Recognition

• 2016 Social Contribution Award of Wenchuan County
• 2016 Outstanding Contribution to Industrial Development Award Wenchuan County

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Slowdown in economic growth momentum in China.
• Downward pressure on China's economy.
• Stringent anti-smog policies in China.
• Tough regulations on emission control.
• Mounting risks in the fragmented iron ore industry.
• Escalating US-China trade tension and tariff war.
• Global economic uncertainty.

Mitigation Strategies

• Major restructuring exercise, including disposal of Low Fe and Inactive Mines.
• Rationalisation of certain mining assets.
• Streamlining operations for improving efficiencies and reducing impairment risks.
• Shift in business direction to progressively reduce exposure in trading segment.
• Discretionary change in trading product mix for improving margins.
• Focus on improving efficiencies for High Fe Mines.
• Monitoring the Group’s foreign currency exposure and considering hedging significant foreign currency exposure when the needs arise.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Water Management
• Ecological Protection
• Waste Management
• Energy Conservation and Pollution Emissions Reduction
• Caring for Employee
• Safety in Production
• Occupational Health
• Employee and Hiring
• Product Liability
• Anti-corruption
• Supply Chain Management
• Community Development

Environmental Achievements

• Freshwater consumption per production value of RMB10,000 is 1.54 tons
• Vegetation at the mines covers an area of 20,120 square metres
• Investment on greening mining area amounts to approximately RMB125,000
• Processed approximately 57,120 tons of tailings and recovered about 4,000 tons of iron concentrates
• Waste rocks recycled per production value of RMB10,000 is 2.46 tons
• Tailing slurries sold per production value of RMB10,000 is 5.06 tons
• 100% of hazardous waste are handled by qualified disposal enterprises
• No incident of excessive discharge and water pollution
• Energy consumption per production value of RMB10,000 is 0.53 kgce
• Purchase of 7,104.12 MWh clean energy (100% clean energy utilisation rate), reducing carbon emissions by 5,953.25 tons of carbon dioxide equivalent
• GHG emissions per production value of RMB10,000 is 0.0012 tons of carbon dioxide equivalent

Social Achievements

• 100% of employees are provided with adequate social insurance coverage in China
• 15 safety inspections are performed and 45 potential risks rectified
• 16 safety and environmental trainings are conducted
• Average of 52.50 safety training hours per relevant employee
• No fatalities in operations
• Investment of RMB4.57 million on safe production management
• No diagnosed occupational diseases
• No violations of laws and regulations concerning underage labour and forced labour
• Employee turnover is 6.52%
• Annual training input of approximately RMB86,000
• 100% of the Workforce received training
• No health and safety matters reported arising from the use of products
• Implemented Aba Mining COVID-19 Emergency Response Plan to protect employee health and safety during the pandemic

Governance Achievements

• No major breaches of conduct by employees
• No legal cases relating to corrupt practices
• All suppliers are evaluated annually

Climate Goals & Targets

Environmental Challenges

• Uncertainties due to the COVID-19 pandemic affecting operations

Mitigation Strategies

• Deferred major capital expenditure decisions and delayed expansion plans
• Focus on optimising capacity utilisation, stabilising operating cash flows, building inventories, and minimising operating costs after resuming production

Supply Chain Management

Supplier Audits: 21 suppliers evaluated annually

Responsible Procurement

• Comprehensive assessment of suppliers' capabilities, including track record, credentials, productivity, product quality, service capabilities, reputation, environmental and social risks.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on Hong Kong Stock Exchange

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 15
• Goal 16

The report details how various initiatives contribute to these SDGs.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Restored 12,423 square meters of vegetation (FY2020: 20,120 square meters) through planting trees and paving grass.
• Reduced freshwater consumption per RMB10,000 production value to 1.08 tonnes (FY2020: 1.54 tonnes).
• Achieved 100% clean energy utilization rate by purchasing electricity from a local hydropower plant.
• Processed approximately 8,440 tonnes of tailings and recovered about 716 tonnes of iron concentrates.

Social Achievements

• Invested approximately RMB615,000 (FY2020: RMB430,000) and 370 hours (FY2020: 250 hours) in community development.
• Conducted occupational disease inspections for 95 employees with zero diagnosed cases.
• Recorded zero fatalities and zero man-days lost due to work injuries.
• Provided 100% of its employees with full social insurance coverage in the PRC.

Governance Achievements

• Established an ESG Working Group and an ESG Executive Team to steer and implement sustainability practices.
• Implemented a zero-tolerance approach towards illegal acts such as corruption, bribery, and commercial fraud.
• Developed a series of policies and management measures to prevent fraud or unethical behavior.
• Established a whistle-blower channel for all stakeholders.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic brought greater uncertainties to the Group’s operations.

Mitigation Strategies

• Implemented Aba Mining COVID-19 Emergency Response Plan.
• Set up an Emergency Response Team.
• Provided personal protective equipment to employees and regularly disinfected the workplace.
• Evaluated corporate strategies to optimize resources amidst the pandemic.

Supply Chain Management

Supplier Audits: 62 suppliers evaluated

Responsible Procurement

• Comprehensive assessment of suppliers’ ability to provide/serve, considering track record, credentials, productivity, product quality, service capabilities, reputation, environmental and social risks.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on Hong Kong Stock Exchange

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 6
• Goal 7
• Goal 8
• 10
• 12
• 13
• 16

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Water Management
• Ecological Protection
• Waste Management
• Energy Conservation and Pollution Emissions Reduction
• Caring for Employee
• Safety in Production
• Occupational Health
• Employee and Hiring
• Product Liability
• Anti-corruption
• Supply Chain Management
• Community Development

Environmental Achievements

• Reclaimed 4,000 sqm of waste mines and restored 15,000 sqm of vegetation.
• Realized 100% clean energy utilization rate by purchasing electricity from a local hydro-power plant, reducing carbon emissions by 5,164.14 tonnes of carbon dioxide equivalent.
• Processed approximately 34,598 tonnes of tailings and recovered about 2,242 tonnes of iron concentrates.
• No environmental pollution incidents reported.

Social Achievements

• Invested approximately RMB517,068 and 380 hours in community development.
• No fatalities in operations, 125 man-days lost due to work injuries.
• No occupational diseases diagnosed.
• Provided 100% of its employees with full social insurance coverage in the PRC.
• Employee turnover rate decreased to 10.23% (FY2021: 18.90%).
• No major breaches of conduct by employees and no legal cases regarding corrupt practices.

Governance Achievements

• Established an ESG Working Group and an ESG Executive Team to implement sustainability practices.
• Adopted a three-line model for risk management and internal control systems.
• Implemented measures to prevent fraudulent or unethical behavior, including a code of ethics on dealing with conflict of interests and an Employee Performance Handbook.
• Established a whistle-blower channel for reporting corrupt practices.

Climate Goals & Targets

Environmental Challenges

• Increase in gasoline consumption due to road closures from landslides.
• Increase in diesel consumption due to increased production volume.
• Lower market demand for tailing slurries.

Mitigation Strategies

• Exploring alternative solutions to reduce reliance on polluting fossil fuels.
• Improving production technology and sourcing clean energy.
• Leased a new storage facility for mining tailings to expand reprocessing and retreatment capacities.

Supply Chain Management

Supplier Audits: 100%

Responsible Procurement

• Comprehensive assessment of suppliers based on track record, credentials, productivity, product quality, service capabilities, and reputation.
• Consideration of environmental and social risks.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on Hong Kong Stock Exchange

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 15
• Goal 16

The report details how various initiatives contribute to these goals.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reclaimed 3,000 sqm of waste mines and restored 12,000 sqm of vegetation.
• 100% of hazardous waste handled by qualified disposal enterprises.
• Realized 100% clean energy utilization rate by purchasing electricity from a local hydropower plant.

Social Achievements

• Invested approximately RMB90,400 and 350 hours in community development.
• Zero fatalities in operations.
• Employee turnover rate decreased to 7.26% (from 10.23% in 2022).

Governance Achievements

• Established an ESG Working Group and an ESG Executive Team to implement sustainability practices.
• Implemented a three lines model of defense for risk management.
• No major breaches of conduct by employees and no legal cases regarding corrupt practices.

Climate Goals & Targets

Environmental Challenges

• Adverse changes in climate patterns (floods and droughts) may disrupt operations.
• Increasingly stringent safety and environmental protection laws and regulations in China.
• Enhanced emissions-reporting obligations.

Mitigation Strategies

• Review and assessment of value chain to source environmentally friendly products and energy.
• Proactive identification and regular review of climate-related risks.
• Integration of climate-related risks and opportunities in the Group’s ERM framework.

Supply Chain Management

Supplier Audits: 100% of 90 suppliers evaluated

Responsible Procurement

• Comprehensive assessment of suppliers based on track record, credentials, productivity, product quality, service capabilities, and reputation; consideration of environmental and social risks.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods and droughts)

Transition Risks

• Stringent environmental regulations, carbon pricing

Opportunities

• Sourcing environmentally friendly products and energy

Reporting Standards

Frameworks Used: GRI Standards, TCFD recommendations

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions

The Group's initiatives contribute to these goals through community development, occupational health and safety, water management, energy conservation, supply chain management, employee hiring practices, waste management, ecological protection, product liability management, and anti-corruption measures.