Message from the Chairman
Statement of the Board ofDirectors
Foreword
Performance in 2023
Outlook for the Future
Index of indicatorsKey performanceRating reportFeedback
Appendix
Governance enhancement
Integrity and compliance
Risk prevention and controlESG governance
Working together withInvestors to PromoteMutual Development
Green management
Green operation
Ecological protection
Making ArduousE?orts for EnvironmentProtection and GreenDevelopment
Rights and interests protection
Safety and health
Growth promotionHappy workplace
Working togetherwith Employees to Builda Better Future
Development facilitation
Community service
Public welfare and charity
Working togetherwith the Public to Createa Happy Life
Responsible procurementCustomer service
Cooperating with partners
Working togetherwith Partners to AchieveMutual Bene?ts
CONTENTS
About Us
ContentsHBIS RESOURCES CO.,LTD.2023 Environmental, Social and Governance (ESG) Report
Information about the ReportThe Report is the fourth social responsibility report and Environmental, Social and Governance (ESG) Report released by HBISResources Co., Ltd. to the public. It aims to truly re?ect the development and practical achievements in ESG of the Company in2023, report the operation of the Company to stakeholders, and help shareholders, creditors, partners, employees and otherstakeholders have an in-depth perspective on the Company's social responsibility practice activities. We hope to strengthencommunication with stakeholders, build consensus and promote sustainable development through the release of the ESGreport.Reporting PeriodThe Report is an annual report, covering the period from January 1, 2023 to December 31, 2023. To enhance the comparabilityand foresight of the Report, some data and contents are appropriately extended.Scope of the Report
The Report covers "HBIS Resources Co., Ltd." and its branches and subsidiaries. Unless otherwise speci?ed, the scope of theReport is consistent with that of the Company's annual report.Basis of PreparationUnited Nations 2030 Sustainable Development Goals (SDGs)）
Sustainability Reporting Guidelines (GRI Standards) issued by the Global Reporting Initiative
Guidelines of the Shenzhen Stock Exchange for Self-regulation of Listed Companies No. 1 - Standardized Operation of ListedCompanies on the Main Board Market issued by Shenzhen Stock ExchangeGuidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-ESG 5.0)issued by Chinese Academyof Social SciencesData Sources and Reliability Assurance
All the information and data quoted in the Report is sourced from o?cial documents, statistical reports and ?nancial reportsof HBIS Resources Co., Ltd. The internal data and public information of various functional departments and business unitshave been counted, summarized and reviewed by the Company. At the same time, unless otherwise speci?ed, the types andamounts of currencies involved in the Report herein are stated in CNY. In case of any discrepancies between the ?nancial dataand the annual report, the latter shall prevail.Reference Explanation
For the convenience of expression and reading, "HBIS Resources Co., Ltd." is hereinafter referred to as "HBIS Resources", "theCompany" or "We"; "HBIS Group Co., Ltd." referred to as "HBIS Group"; and "Palabora Mining Company Proprietary Limited" as"PMC" .
Unit DescriptionsIn the Report, the monetary amounts related to the South Africa Rand are converted into CNY at the exchange rate atthe end of the reporting period (December 31st, 2023).Report AccessTo practice the concept of low-carbon, environmental protection and sustainable development, the Report can be readonline or downloaded electronically on the company website (http://www.hbiszy.com/), CNINFO (http://www.cninfo.com.cn/). For more information about the Company beyond the Report, please refer to the Company's Annual Report or visitthe Company's website.Feedback
We are very concerned about your opinions on our ESG work and the Report of the Company. For ideas andsuggestions for the Report, please contact us as follows. We would like to express our sincere gratitude for yourvaluable comments.
Foreword
Address: No. 385 Tiyu South Street, Shijiazhuang,Hebei, ChinaTel.: 0311-66500923
Fax: 0311-66508734E-mail: xgdsb@sina.com
Statement of the Board of Directors
The Company has established an Environmental, Social and Governance (ESG) Committee under the Board of Directors inaccordance with the provisions of laws and regulations such as theCompany Law, Code of Corporate Governance for ListedCompaniesandStandardized Operation of Listed Companies on the Main Board Market,normative documents, as well as theArticles of Association. The Committee is mainly responsible for overseeing and guiding the e?ectiveness of the Company's ESGinitiatives, as well as o?ering opinions and suggestions.The Board of Directors is the highest decision-making body on environmental, social and governance matters. It takes fullresponsibility for the Company's ESG strategies and reporting, approves the Company's sustainable development strategies,policies, goals and risks, follows up the progress in achieving ESG goals promptly, and achieves more independent, e?cientand professional ESG management under the Board of Directors. Members of the ESG Committee are elected by the Board ofDirectors, work under the leadership of the Board of Directors and are responsible to the Board of Directors. They regularlyreport annual ESG-related work to the Board of Directors. They are mainly responsible for studying the Company's ESG policies,strategies and performance; formulating the strategic planning, implementation rules and other goals of ESG management;guiding and supervising the implementation of the Company's environmental, social responsibilities and corporate governancework, supervising the actual performance and completion of goals, and putting forward corresponding suggestions; reviewingthe Company's ESG-related reports and other major matters.The Company attaches great importance to ESG governance and continues to build an ESG governance system. Based on theexternal socio-economic macro environment and the Company's development strategy, the Company regularly evaluatesimportant ESG issues and incorporates them into the overall strategy of the Company for consideration, so as to supervise issuemanagement and performance.The Report discloses in detail the progress and e?ectiveness of the Company's ESG work in 2023, which has been reviewed andapproved by the Board of Directors. The Board of Directors and all directors of the Company guarantee that there are no falserecords, misleading statements or major omissions in the Report, and they are jointly and severally liable for the authenticity,accuracy and completeness of the information contained herein.
Statement of the Board of Directors
HBIS RESOURCES CO.,LTD.2023 Environmental, Social and Governance (ESG) Report
Message from the Chairman
Message from the Chairman
HBIS Resources Co., Ltd.Chairman and Director of ESG CommitteeWang Yaobin
In 2023, we actively responded to the "Dual Carbon"goals, deeply integrated corporate operationdevelopment with ESG by improving the top-level design of ESG, and promoted the long-term value construction of the Company throughESG development. We continued to optimizeour governance structure, strengthened ESGrisk management and control, and continuouslyexpanded and strengthened our business throughcompliant and trustworthy operation, so thatinvestors and stakeholders could share developmentdividends.
We have gradually improved corporate governance andcontributed to the sustainable development.ESG has
become an indicator for the sustainable development ofenterprises. We have actively integrated the ESG conceptinto corporate governance and adhered to the overallleadership of the Board of Directors on ESG. The Boardof Directors has passed a resolution to establish an ESGCommittee to escort the sustainable, healthy developmentand safe and efficient operation of the Company. We havefurther standardized the human ethics work and set upa Human Resources Committee and a Social, Ethics andTechnical Committee under the Board of Directors of PMCto supplement the duties of the Board of Directors. We havealso strengthened the disclosure of compliance information,continuously disclosed social responsibility reports andenvironmental, social and governance (ESG) reports to thepublic, promoted investors' understanding and recognitionof the Company, and maximized the overall interests of theCompany and shareholders.We have created a positive and energetic workenvironment for employees.We have adhered to theprinciple of "three localizations" (i.e. benefit localization,employment localization and cultural localization), andsincerely respect every employee from di?erent nationalities,cultures and races. We have safeguarded and protected thelegitimate rights and interests of every employee through aseries of systems such as theEmployment Equity, IndustrialRelations, Leave, Overtime, Medical Aid, Risk-Based FatigueManagement, Sexual Harassment. We pay attention to theinterests of female employees and publicize the importanceof female employees to the Company by holding a "WomenIn Mining" Activity every year so that female employees canenjoy the same rights and treatment as male employees inthe Company. We have implemented employee developmentplans, improved employees' working skills through trainingand testing, and issued professional quali?cation certi?catesto employees who pass examinations to stimulate theirgrowth potential. We implemented the measurementaccident prevention plan, the safe work procedures HIRA(Hazard Identification and Risk Assessment) and Xiya-Xiya (Continuous Hazard Identification) strictly at work,and clearly defined employees' "right of refusal" for thehazardous working environment to reduce safety risks
in production operations. Taking "Zero Harm" as ourpursuit goal, we have continuously created a safe workingenvironment for employees. We have won the "TopEmployer" certi?cate of South Africa six times in total.We have promoted quality and efficient cooperation.With the goal of "being the most competitive enterprisein the industry", we make full use of our advantagesin whole process in the copper market, magnetite costand vermiculite quality in each market of South Africabased on annual customer surveys to mine, process andsell copper, iron ore, vermiculite and other products,providing customers with more reliable products withhigher quality. We strictly abide by the local laws andregulations of South Africa, carry out full life cyclemanagement on suppliers, and give priority to localAfrican women and suppliers with higher B-BBEE levelsto help the sustainable development of the supplychain. We have continuously expanded the scope ofcooperation with government agencies, universitiesand upstream and downstream enterprises, and haveestablished win-win partnerships with the LimpopoDepartment of Public Works, Roads and Infrastructure,the University of South Africa, the University of theWitwatersrand, Murray & Roberts, etc.We have actively engaged in coping with climatechange and practicing the "Dual Carbon" goals.As a
resource enterprise, we have a deep understanding of thepotential impact and risks of climate change on businessoperations. We have completed the environmental impactassessment report and environmental management planin accordance with the Mineral and Petroleum ResourcesDevelopment Act of South Africa, and gradually promotedPMC, a main production enterprise of the Company,to pass ISO 14001 environmental management systemcertification. We have attached importance to theimplementation of energy management, water resourcesuse, "three wastes" emission control, etc., and won atough battle against pollution prevention. During thereporting period, we reduced 16 million kWh of energy useand more than 16,000 tons of carbon dioxide emissions.To protect the precious ecological environment, we have
long adhered to the biodiversity management plan andinstalled surveillance camera systems, which have greatlyreduced the amount of wildlife trapping. We have alsoactively formulated a land restoration plan to restoreabout 22 hectares of land and promote the harmoniouscoexistence of human beings, industry, wild animals andcultural heritage.We have worked together with stakeholders to builda harmonious future.With the standpoint of win-windevelopment, we have built a solid foundation fordevelopment, supported the development of smalland medium-sized enterprises in local communities inSouth Africa, supported youth employment, carried outa series of community-based activities such as materialdonations and infrastructure construction to benefitthe people, letting local people enjoy more fruits ofreform and development of the Company. During thereporting period, we have built infrastructures such asschools, asphalt road and sewage treatment pumpingstations for local communities, and made variouspublic welfare donations to local areas with an amountof over CNY 10 million, significantly improving the livingenvironment of local communities and benefiting over100,000 people in the surrounding areas.
Though there is a long way to go, we'll reach theend if we keep moving forward.In 2024, we will seekopportunities and development while meeting socialneeds and addressing challenges, unswervingly striveto become stronger, better, and bigger, and enhance ourcapabilities and levels of international operations. We willcontinue to play an active role in improving local people'slivelihood, engaging in public welfare undertakings, andpromoting cultural exchanges. We will seek friendships,energetically promote the high-quality development, andgive back to shareholders and society.
HBIS RESOURCES CO.,LTD.2023 Environmental, Social and Governance (ESG) Report
About Us
HBIS RESOURCES CO.,LTD.
2023 Environmental, Social and Governance (ESG) Report
HBIS Resources Co., Ltd. (HBIS Resources), founded in 1950, was listed on the Shenzhen Stock Exchange on July 14, 1999 (stock code:
000923.SZ), with its registered address in Zhangjiakou City, Hebei Province. It is a local state-owned holding listed company. TheCompany indirectly controls PMC through Smart Union Resources (HONG KONG) to carry out mining, processing and sale of copper,iron ore and vermiculite, forming an industrial layout with mining and processing in South Africa and products sold to North America,Europe, Asia and other regions, with strong competitiveness in both local and international markets.
About Us
Company pro?le
Shareholding structure
Product introduction
Industrial layout of the Company
Main products of the CompanyCopperMagnetiteVermiculiteProcess
Underground mining,?otation and smelting
Magnetic separation of storageore and copper tailings
Open pit mining and bene?ciationReserveApproximately 960,000 tons
Approximately 150 million tons(including surface and underground)
Approximately 16 million tonsProducts
Copper rod, cathode copper and
concentrate
Iron oreGrade 1-5 ?nished productsMain sales regionsSouth AfricaChinaEurope, North America and Asia
HBIS Group Co., Ltd.HBIS Resources Co., Ltd.
Smart Union Resources (HONG
KONG) Co., Limited
Smart Union Resources (Mauritius)
Co., LimitedSmart Union Resources South
Africa LimitedPalabora Mining Company
Proprietary Limited
The Palabora Employee Trust
10%10%74%
100%
100%
100%100%
34.59%
20%
80%
6%
The Leolo Community TursPalabora BEE InvestmentCompany Proprietary LimitedPalabora CopperProprietary Limited
Industrial DevelopmentCorporation of South Africa Limited
State-Owned Assets Supervision andAdministration Commission of the People'sGovernment of Hebei Province
ShijiazhuangThe People's Republicof China
Hong KongSingaporeMauritiusSouth Africa
UKUSA
Smart Union Resources (Mauritius) Co., Limited
Palabora Asia Pte Limited (Singapore)
Smart Union Resources (HONG KONG) Co., LimitedHBIS Resources Co., Ltd.
South African Palabora CopperProprietary Limited
Palabora Europe Limited (UK)Palabora America Limited (USA)
A glance of the Company
About Us
HBIS RESOURCES CO.,LTD.
2023 Environmental, Social and Governance (ESG) Report
CopperMagnetiteThe PMC is the largest copper wire manufacturer in South Africa, with stable sales to end customers. As the second-largest economyin Africa, South Africa has great potential for infrastructure development and its demand for copper wires will maintain steady growth.After the Phase II Copper Project is put into production, it is expected that the production and operation period of the copper mine canlast for 13.5 years, which will continue to ensure PMC's market in?uence and industry position in South Africa's copper products andprovide stable pro?t guarantee for the Company.
The Company's magnetite is an associated product separated from copper ore processing. After decades of copper mine production,about 130 million tons of magnetite are stockpiled on the ground with an average grade of 58%. At the same time, undergroundproduction will increase magnetite products every year. In 2024, PMC plans to implement a magnetite quality improvement project,with the aim of further improving the grade of ?ne iron powers, increasing premium sales, and alleviating the tight transport capacitywithin South Africa.
DMS ?nished
products
Filtration and
dewatering
Concentration
Sampling and Testing in Magnetite Production
Rolled Copper Wire CoilsProduction Line for Rolling Copper Rods
Magnetite Production Site
Watery slurry
Finishedproduts
Coarseparticles
Fineparticles
Grading systemMagneticconcentrationCoarse magnetic
separationTailingsafter copper
?otation
Magnetite yard
Anode mud
Copper cathode
Copper wire
99.999% Cu
Sulphuric acid
Electrolyte
Magneticseparation
Horizontalbelt ?lter
Finisahedproducts
Drying pond
Outgoing
Outgoing
About Us
HBIS RESOURCES CO.,LTD.
2023 Environmental, Social and Governance (ESG) Report
VermiculiteVermiculite ore of PMC, as the main mine producing vermiculite in South Africa, is one of the top three vermiculite ores in the world. Theoutput of vermiculite accounts for about 1/3 of the global share. Due to the high grade and quality of vermiculite ore of PMC, PMC hasestablished a ?rm supply relationship with downstream vermiculite customers and exported vermiculite to North America, Europe andAsia for a long time.
Corporate culture
Corporate goalTo be the most competitiveenterprise in the industry
Marketing
Entrepreneurship, Excellence
and InnovationProviding value for shareholders,opportunities for employees, and
fortune for society
Being Harmonious, Passionate,Fast and Precise
Science and Technology Leadthe Future, Green DevelopmentPromotes Development
People-oriented, law-abiding,work safety, energy conservation
and consumption reduction,green environmental protection
and continuous improvement
People-oriented, law-abiding,
work safety and preventionfirst, comprehensive treatmentand continuous improvement
Wastes
Discharge
Particles on the
screen
Screening system
Sieve shakerCrusherRawvermiculiteore
Non-Conformance
Vermiculite in Experimental TrayVermiculite for Delivery in the Finished Products Warehouse
Separation andscreening machine
DrierBu?er storage
Ultra-?ne particles Slightly-?ne particlesLarge particlesFine particlesMedium-sized particles
Finished products
Quali?ed productswarehouseShipment for outwarddistribution
Conformance
People OrientationPeople ExcellenceCustomer-oriented
Core ValueCorporate SpiritCorporate Style
Quality PolicyEnvironmental PolicyOccupational Health Policy
About Us
HBIS RESOURCES CO.,LTD.
2023 Environmental, Social and Governance (ESG) Report
Company strategy
Leadership team
Honors
Title of Honor "Top Employer 2024 Winner in South Africa"
“Best Improved Safety Performance from the South AfricanInstitute of Mining and Metallurgy (SAIMM)”
Title of Honor "Outstanding Performance Award of MiningEnterprises in South Africa"
"2023 Best Improved Safety Performance from the SouthAfrican Institute of Mining and Metallurgy (SAIMM)”
ChairmanWang Yaobin
Director
Yao Yongbo
DirectorZhang Zhiting
Independent DirectorWang Zhanming
Employee Supervisor
Yan Chunlong
Director and General ManagerZhao Lishu
Director and Deputy General
Manager
Wei Guangmin
Independent Director
Shang Youguang
Chairman of the Board ofSupervisors
Fan Haiquan
Secretary of the Board ofDirectorsZhao Qingsong
DirectorBao Yanli
Independent DirectorXu Yongqian
SupervisorLu Yaohao
Financial Director
Yu Chao
The Company's strategic goal is to become bigger and stronger in the field of resources and achieve sustainable and healthydevelopment. The Company will focus on the global resource market in the future, continue to seek projects that meet its owncharacteristics, seize opportunities in the capital market, grasp the opportunity, realize mergers and acquisitions, expand the scale ofindustrial development of the Company, and enhance the sustainable pro?tability of the Company.
Performance in 2023
Business performance
Governance performance
Performance in 2023
%
Attendance rate of Boardof Directors membersAttendance rate ofshareholders to the GeneralMeeting of Shareholders
%Percentage of femaledirectors
%
Percentage of femaleexecutives
%
Percentage of independentdirectors
%
Environmental performance
Water saving
2,502,441m
Total annual water consumption4,258,200m
Fresh water consumption
m
833,914Circulating water consumption
m
33,886,627
HBIS RESOURCES CO.,LTD.2023 Environmental, Social and Governance (ESG) Report
Customer service performance
Complaintresolution rate
%
Customersatisfaction rate
%
Investment in process technologyimprovement and research
32,827,838CNY
Safety management performance
Total safety training duration41,239hourstimes
Emergency drillsCoverage rate of work safety training
93.9
%
5,815,000 tonsMagnetite outputVermiculite output
169,000tons
Operating revenue
5,867CNY million
Total assets
15,870CNYmillion
Net pro?t
CNYmillionCopper output
23,700tonsIncome tax
CNYmillion
2023 Environmental, Social and Governance (ESG) Report
Working together with Investorsto Promote Mutual Development
Working together withInvestors to PromoteMutual Development
Modern governance is the guarantee for enterprise development.Adhering to the core value of "providing value for shareholders,opportunities for employees, and fortune for society", theCompany has continuously strengthened corporate governance,adhered to integrity and compliance management, done a goodjob in company risk prevention and control, further promotedESG governance, and empowered enterprises to operate moresustainably with high-quality governance level.
SDGs：
We have established a corporate governance structurecoordinated and operated by the General Meeting ofShareholders, Board of Directors, Board of Supervisors andthe Management;We have been rated as Grade A of the annual informationdisclosure evaluation of the Shenzhen Stock Exchange forthree consecutive years, and there was no punishment dueto violations of information disclosure during the reportingperiod;We have established an Environmental, Social andGovernance (ESG) Committee under the Board of Directorsto supervise and guide the e?ectiveness of ESG work of theCompany;We have integrated the ESG concept into the wholemanagement process through measures such as reportcompilation and participating in training.
Our philosophy
Our actions
2023 Environmental, Social and Governance (ESG) Report
Working together with Investorsto Promote Mutual Development
Governance enhancement
General Meeting of Shareholders
Board of Directors
Board of Supervisors
Special CommitteesThe Company strictly abides by the requirements of laws, regulations and normative documents such as theCompany Law,SecuritiesLaw,Code of Corporate Governance for Listed Companiesand theRules for the Listing of Stocks. It actively innovates governancemethods and optimizes corporate governance structure. The Company has formulated various rules of procedure and working rulesto standardize operation and established a corporate governance structure coordinated and operated by the General Meeting ofShareholders, Board of Directors, Board of Supervisors and the Management. A corporate governance mechanism for decentralized andhierarchical management of decision-making, supervision and operation has been established to ensure the healthy and sustainabledevelopment of the Company.
The Company formulatedthe Rules of Procedures of the General Meeting ofShareholdersin accordance with the provisions and requirements of theCompany Law,Securities Law, Rules for the General Meetings of Shareholders of Listed Companiesand
Articles of Association, to clarify the functions and powers of the General Meeting ofShareholders, standardize the legality and e?ectiveness of the convening, proposal andnotice, holding and deliberative procedures of the General Meeting of Shareholders. Acombination of on-site voting and online voting to attend the meeting are adopted toensure that all shareholders, especially minority shareholders, can fully exercise theirrights.During the reporting period, the Company held 2 sessions of General Meeting ofShareholders and approved a total of 10 proposals at the meeting, including the 2023Annual Work Report of Board of Directors, Work Report of Board of Supervisors, AnnualReport, ?nancial settlements, system revisions, etc.
The Company formulated theRules of Procedures for the Board of Supervisorsin accordance with the relevant provisions of theCompany Law, Guidelines for Articles of Association of Listed Companies, Rules for Governance of Listed CompaniesandArticles ofAssociation, and established the Board of Supervisors as the supervisory organization of the Company. The Board of Supervisors isresponsible to the General Meeting of Shareholders and supervises the performance of duties by directors and the management of theCompany and ?nancial activities of the Company. The Board of Supervisors consists of 3 supervisors, including 1 employee supervisor.During the reporting period, the Company held a total of 3 meetings of the Board of Supervisors with an attendance rate of 100%. Atotal of 13 proposals were approved at the meetings, including regular reports, re-employment of audit institutes, special reports on thestorage and use of raised funds, etc.
The Company has set up six committees according to theCompany Law, Code of Corporate Governance for Listed Companies, Articles ofAssociationand
theRules of Procedures for the Board of Directors: Strategy Committee, Risk Management Committee, Audit Committee,Nomination Committee, Remuneration and Assessment Committee, ESG Committee. Each committee consists of three directors.Among them, independent directors account for more than half. At the same time, rules of procedures for those committees have beenformulated respectively to standardize work processes and give full play to the functions of each committee.
The Company formulated theRules of Procedures for the Board of Directorsin accordance with theCompany Law,Articles of Associationand other relevant rules, and set up the Board of Directors as the executive organization of the Company. The Board of Directors consistsof nine directors, including three independent directors and one female director. The nomination and appointment of members of theBoard of Directors take into account many factors such as gender, age, cultural and educational background, professional experienceand skills. The professional ability of directors covers business management, finance, engineering, law and other professionalbackgrounds. During proposal deliberation and decision-making, they can make brainstorming, scienti?c and prudent decisions fromdi?erent professional backgrounds on behalf of di?erent stakeholders.During the reporting period, the Company held a total of 5 meetings of the Board of Directors and approved 37 proposals at the meeting,including the 2022 annual pro?t distribution, internal control self-evaluation, risk assessment report, etc.
2023
The Strategy Committee consists of 3 members, and is mainly responsible for studying theCompany's long-term development strategies and major investment decisions and makingsuggestions.
Strategy Committee
The Risk Management Committee consists of 3 members, and is mainly responsible forsupervising and guiding the Company's risk management work, studying the risk issues of majorinvestment matters of the Company, and putting forward opinions and suggestions on policiesand schemes related to the Company's risk management.Risk Management
Committee
The Remuneration and Assessment Committee consists of 3 members and is mainly responsiblefor formulating the assessment standards for directors and managers of the Company andconducting assessments; formulating and reviewing the remuneration policies and schemes fordirectors and managers of the Company.
Remunerationand Assessment
Committee
The ESG Committee consists of 3 members and is mainly responsible for supervising and guidingthe e?ectiveness of the Company's environmental protection, social responsibility, standardizedgovernance and other work, and putting forward opinions and suggestions.ESG Committee
The Audit Committee consists of 3 members and is mainly responsible for the communication,supervision and veri?cation of internal and external audits.Audit Committee
The Nomination Committee consists of 3 members in total, mainly responsible for selectingdirectors, general managers and other senior executives of the Company.NominationCommittee
Human Resources, Social and Ethics CommitteeTo further standardize the human resources ethics work in South Africa, PMC has set up a Human Resources Committee and a Social,Ethics and Technical Committee under the Board of Directors according to the relevant provisions of theCompany Law,Articles ofAssociationandCode of Practice for Corporate Governance Reporting in South Africa Countries, and formulated relevant articles ofassociation to supplement the duties of the Board of Directors.The Committee has focused on the impact of the Company on stakeholders, implemented and oversaw matters such as humanresources, remuneration and nomination duties, and social and ethical responsibility on behalf of the Board of Directors to ensure thatthe activities of the Company have a positive impact on employees, communities and the environment.During the reporting period, the Human Resources Committee of PMC held 3 meetings in total, including business ethics and integrityreports, internal audits, etc. The Social, Ethics and Technical Committee held 4 meetings in total, including project progress descriptions,performance reports, etc.
sessions
items
Number of General Meetingof Shareholders held
Proposals approved bythe General Meeting ofShareholders
2023 Environmental, Social and Governance (ESG) Report
Working together with Investorsto Promote Mutual Development
Compliance operation
Business ethics
Protection of investors' rights and interests
The Board of Directors and special committees of the Company shall, in accordance with the relevant requirements of theOpinions ofthe State Council for Further Improving the Quality of Listed Companies, carry out a penetrating and all-round compliance review forthe Company, continuously improve the compliance operation management system, establish an e?ective compliance managementsystem, and strengthen the standardized operation ability of listed companies; focus on the identi?cation, evaluation and managementof major compliance areas and violation risks, and e?ectively respond to compliance risks in production and operation from four stagesof compliance risk identi?cation, compliance risk assessment, compliance risk management and compliance risk monitoring, timelyprevent and resolve various risks, build a solid ?rewall for the Company's risk control management, and maintain the Company's marketimage.
The Company has adhered to abide by business ethics, opposed any form of commercial bribery and corruption, and strictlyinvestigated the internal corruption of the Company; adhered to the principles of legitimacy and fairness in business competition, andnever infringed upon the legitimate rights and interests of other operators and consumers. In 2023, the Company did not engage inmajor corruption and unfair competition.
The Company formulatesthe Management System for Investor Relationsin accordance with theCompany Law, Securities Law, Lawof the People's Republic of China on Guarding State Secrets, Rules for the Listing of Stocks, the Guidelines on Investor RelationsManagement of Listed Companiesand other relevant laws, regulations and normative documents to strengthen communication withinvestors through adequate information disclosure and exchange. It strengthens communication with investors by fully disclosing andexchanging information, promotes investors' understanding and recognition of the Company, realizes the maximization of the overallinterests of the Company and the interests of shareholders through strategic management behaviors. In 2023, the Company increasedcommunication with investors by issuing announcements, holding general meetings of shareholders, opening company websites,carrying out and participating in performance brie?ngs, online collective reception days for investors, analyst meetings, symposiumsand other forms.The Company attaches great importance to strengthening the disclosure of compliance information. It discloses important matters ina true and detailed manner through channels such asChina Securities Journal, Securities Times, Shanghai Securities News, SecuritiesDailyand CNINFO. In 2023, the Company disclosed 86 announcements, including 4 periodic reports and 82 other documents. TheCompany has been rated as Grade A of the annual information disclosure evaluation of the Shenzhen Stock Exchange for threeconsecutive years, and there was no punishment due to violations of information disclosure during the reporting period.
Code ofconduct
Integrity and compliance
The Company has strictly abided by theAdministrative Supervision Law, Anti-money Laundering Lawand other relevant laws andregulations, continuously improved the compliance management policies and systems, adhered to integrity operation, strengthenedinvestor relations management, and created a standardized and legalized operating environment.
Determining applicable statutory andregulatory requirements;Forming a register of regulatory scope.Compliance risk identi?cation
Strengthening risk control;Evaluating the e?ectiveness of controlmeasures;Residual risk rating.
Compliance risk managementCompliance risk monitoring
All employees shall perform their duties in accordance withtheEmployee Handbookand abide by professional ethics,and the management shall play an exemplary role. It isstrictly prohibited to abuse power for personal gains andprevent con?icts of interest.Formulate theInsider Registration Systemto standardizethe management of insiders.
The Company shall strictly abide by theAnti-UnfairCompetition Law,Anti-monopoly Lawand other relevantlaws and regulations to promote fair competition andmaintain market economic order.Formulate theManagement System for Related PartyTransactions and theAdministrative Measures for InternalControl Management
of Related Party Transactionstostandardize the internal management of related partytransactions of the Company, ensure that all related partytransactions of the Company conform to the principles offairness, openness and impartiality, and ensure that theinterests of shareholders and creditors will not be harmed.
2023
Including
other documents
Internal audit
PMC has stipulated the responsibilities of employees in various positions in internal control. Senior managers take ultimateresponsibility for the control system, the executive management and committee is responsible for setting guidelines and a global visionof the enterprise, the Internal Control and Audit Department monitors the permanence and e?ciency of the control system, and allemployees are responsible for participating in the implementation of internal controls.
Risk prevention and control
By establishing an organizational structure with clear rights and responsibilities and scienti?c and reasonable rules and regulations, theCompany has built a good internal control environment, created a professional and e?cient risk prevention and control system, helpedthe Company continuously improve its risk management ability, and laid a foundation for the stable and sustainable operation of theCompany.
The Company has formulated theInternal Audit Systemin accordance with laws and regulations such as theAudit Law of thePeople's Republic of China, Regulations on Internal Audit Work of the Auditing Commission, the Rules for the Listing of Stocksandthe Standardized Operation of Listed Companies on the Main Board Marketto continuously optimize the internal control system andimprove the internal control system. The Internal Control and Audit Department is responsible for carrying out audit work within thescope authorized by the Audit Committee of the Board of Directors and checking and supervising the establishment and implementationof the Company's internal control system and the authenticity and integrity of the Company's ?nancial information. The Internal Controland Audit Department is responsible to the Audit Committee and reports to it.
Internal Control
and AuditDepartment
Compliance risk assessment
Identifying compliancerisks;
Identifying weaknesses in compliance;Conducting dynamic monitoring.
Board of DirectorsAudit Committee
Carrying out impactassessment;
Carry out probabilityassessment;Inherent risk rating.
Number of announcementsdisclosedannouncementsperiodic reports
2023 Environmental, Social and Governance (ESG) Report
Working together with Investorsto Promote Mutual Development
Risk managementSince its establishment, the Company has been strengthening risk management and strictly abiding by various managementmethods such as theSensitive Information Screening System, Rules of Procedures for the Risk Committee of the Board of Directors,Administrative Measures of Comprehensive Risk Management and Administrative Measures of Compliance Risk Management. It hasestablished a perfect risk management operation mechanism to improve the Company's risk prevention and control capabilities, toensure the Company's legal and compliant operation, safe and stable operation. In 2023, the Company has continued to strengthen riskprevention and control works, revised and improved various rules and regulations, completed early warning and emergency disposalmeasures for major risks and hidden dangers, promoted risk prevention and control to deeper levels, and e?ectively prevented andresponded to major risks and hidden dangers. During the reporting period, there were no major risk events in various risk areas such asproduction and operation, sales, safety and environmental protection and investment.
Risk Management Process of PMC
Three levels
Three lines of defense
ESG Committee
The main responsibilities of the ESG Committee are as follows
The Company has set up an ESG Committee, which is responsible for supervising and guiding the effectiveness of the Company'senvironmental protection, social responsibility, standardized governance and other work, and putting forward opinions andsuggestions. ESG Committee work under the leadership of and are responsible to the Board of Directors. The ESG Committeemembers are elected by the Board of Directors and consist of three directors, including at least one independent director.
ESG governance
The international community is paying more and more attention to corporate social responsibilities, and ESG has beendeveloped rapidly. Corporate social responsibility shows a trend of strengthening rigid constraints. The Company attaches greatimportance to ESG work and is committed to deeply integrating ESG governance into the production and operation business. Ithas continuously improved the ESG management system and has continuously played a role of ESG in helping the high-qualitydevelopment of the Company.
Study the Company's ESG policies, strategies andperformance to make them comply with relevantlaws, regulations and standards;Put forward update suggestions on the Company'senvironmental protection, social responsibility andstandardized governance;Study and formulate the strategic planning,implementation rules and other goals of ESGmanagement;Take appropriate countermeasures for ESG-relatedrisks and opportunities that have a significantimpact on the Company's business;
Guide and supervise the implementation ofcorporate environmental, social responsibility andcorporate governance work, monitor and check thefulfillment of goals and make recommendationsaccordingly;Deliberate the Company's reports and other majormatters related to ESG;Handle other matters authorized or assigned by theBoard of Directors.
It is the highest decision-making body for risk management and is responsible to theBoard of Shareholders for the e?ectiveness of risk management.Board of Directors
It is responsible to the Board of Directors for the e?ectiveness of risk management. TheCompliance Management Department is responsible for daily risk management.The Management
Each business department is the front-line department of risk management. The InternalControl and Audit Department audits, evaluates, reports and tracks the rectification ofthe control of major risk matters of the Company as well as the integrity and e?ectivenessof the Company's risk management system, and is directly responsible to the Board ofDirectors.Functional Departments
and O?ces
Approval of the strategyIdentifying and assessing risk
Challenges andassessment controlsRisk response and actionMonitoring reports
Risk management policies/frameworks
Continuous process
Risk self-control in business
departments
Operational risk warning of compliancemanagement department in main business links
Supervision and inspection during and after the
internal control audit
First line of defenseSecond line of defense
Third line of defense
2023 Environmental, Social and Governance (ESG) Report
Working together with Investorsto Promote Mutual Development
Identi?cation of substantive issuesThe Company attaches great importance to the analysis and identification of substantive issues in ESG work. The Companyidentifies substantive responsibility issues that are practically concerned by all stakeholders and have important significance forthe development of the Company in combination with its own business areas, divides the identified issues into "major issues","important issues" and "general issues", and focuses on response and improvement during development.
Major issuesWork safety, ensuring product quality, waste management, improving service quality, business ethics andtransparency, energy management, water resources management, coping with climate change, humanrights protection, community relations, employee training and development, occupational health and safety,biodiversity, tailings managementImportant issuesEconomic performance, industry development promotion, compliance management, strategic sharingmechanism and platform, regional economic development promotion, legal employment, framework of Board ofDirectors, risk management, natural disaster emergency management, environmental management system
General issues
Information security, customer management, intellectual property protection and technological innovation,freedom of association and collective bargaining, charity, rural revitalization, supply chain responsibility
AppealsResponseStakeholders
Suppliers
Open and fair procurementMutual bene?t and win-winCommon development
Creating a responsible supply chainAdhering to business ethicsCooperation and exchange
Investors
Improving corporate governanceTimely information disclosureSustained pro?tability
Improving the level of internal controlRegular information disclosureProtecting shareholders' rights and interests
Communities
Actively integrating into communitiesConducting volunteer activities
Implementing public welfare servicesContribute to rural revitalization
Environment
Energy conservation and emissionreductionProtecting the ecology
Improving the e?ciency of resourceand energy useSelecting green process
Employees
Building a career development channelAbundant remuneration and bene?tsSafeguarding occupational healthSafeguarding the rights and interests ofemployees
Improve the internal management systemProviding employees with work and lifesecurityStrengthening the construction ofoccupational health and safety systemEmployee communication and feedbackmechanism
Government
Compliance operationDriving regional developmentTax payment according to lawEnvironmental protectionSustainable development
Compliance with Laws and RegulationsProviding employment postsActive tax paymentImplementing green managementPromoting green manufacturingDeveloping environmentally friendly products
Customers
Product and service innovationProtecting customers'rights and interestsImproving customer satisfaction
Strengthening innovation in science andtechnology and managementAdhering to honest managementActively responding to customer demands
Communication with stakeholders
The Company communicates smoothly with investors and the public in accordance with the principle of "truthful, comprehensive,timely and sufficient" information disclosure. The Company disclosed the Company's ESG work by organizing annual and semi-annual performance briefings, publishing reports, etc. In 2022, the Company took the initiative to upgrade its social responsibilityreport into an ESG report and further strengthened communication with stakeholders.
ESG practice
In 2023, the Company actively practiced its ESG concept and integrated it into the whole process of management throughmeasures such as preparing and issuing reports and participating in training to promote the Company's gradual sustainabledevelopment. The Report is the Social Responsibility Report and Environmental, Social and Governance (ESG) Report preparedand released in the fourth year of the Company. It systematically sorts out and summarizes the practice and effectiveness ofresponsibility fulfillment and discloses it to stakeholders.
The Company took the initiative in ESG work and actively participated in the start-up training meeting for HBIS Group's 2023Sustainable Development Report, so as to deeply study ESG-related knowledge, understand ESG situation requirements andenterprise ESG management improvement suggestions, and improve its own ESG management level.
CaseThe Company Participated in the HBIS Group's Social Responsibility/ESG Training Meeting in 2023
2023 Environmental, Social and Governance (ESG) Report
Working together with Employees to Builda Better Future
SDGs：
Working together withEmployees to Build aBetter Future
The Company adheres to the people orientation of "PeopleExcellence", and strives to practice the value proposition of"providing employees with complete remuneration and a goodworking environment, so as to return their contributions tothe Company". The Company has adhered to safeguarding thebasic rights and interests of employees, paying attention to theirphysical and mental health, encourage them to learn and grow,balancing their work and life, and realizing the common breathingand destiny between enterprises and employees.
PMC has been certified as the "Top Employer" in SouthAfrica six times;Implemented the Measurement Accident Prevention Plan(MAP) to promote work safety and achieve "Zero Harm";Successfully held the 7th Annual Certification Conferenceof Professional Qualifications for Companies in PMC toimprove employees' skills;Established a new Women in Mining Executive Committeeto promote greater responsibilities for capable women.
Our philosophy
Our actions
HBIS RESOURCES CO.,LTD.2023 Environmental, Social and Governance (ESG) Report
Working together with Employees to Builda Better Future
Rights and interests protection
Diversi?ed and equal employment
The Company strictly abides by the localEmployment Equality Law, Equal Employment Law, Labor Relations Actand other relevantpolicies
and regulations. It has set up an Employee Relations Department to continuously standardize the employee managementsystem, implement diversi?ed equal employment, improve the remuneration and bene?ts system, strengthen democratic managementand communication, and safeguard and protect the legitimate rights and interests of each employee.
The Company abides by theConstitution of South Africaand other local laws and regulations, establishes diversified and equalemployment relations, and protects the basic rights and interests of employees; adheres to the equal treatment of employees withdifferent nationalities, ethnic groups, races, skin colors, genders, religious beliefs and cultural backgrounds, and opposes forcedlabor and hiring child labor; pays attention to the employment of disabled people, women and other special groups; focuses on theemployment of local residents and increases employment opportunities in local communities; improves the coordination mechanism oflabor relations, actively builds harmonious and stable labor relations, and safeguards the legitimate rights and interests of employees.In 2023, the Company had 3,944 employees in total and all of the employees signed labor contracts with the Company.
Educational AttainmentSpecialty CompositionEmployee Composition(unit: %)
PMC Won the "Top Employer South Africa2024" Certi?cation
Management Team Member of PMC
The "Top Employers Association" is a global authority dedicated to recognizingexcellent HR practices. PMC won six "Top Employer" certifications in 2016 -2024 (not participating in the selection from 2020-2022). It is not only proof ofits obvious e?ectiveness in managing sta? but also marks that PMC has metthe requirements for diversity, inclusiveness and digitalization of personnelrecruitment.
CasePMC Won Six "Top Employer" Certi?cations in South Africa
2023
Total number of employees
3,944
persons
%Rate of employees signed labor contracts
1.75
1.09
6.29
77.48
13.39
8.92
12.68
78.40
Bachelor's degree and master'sdegree or above
College degreeTechnical school and high schoolor belowProduction personnelSales personnel
Administrative personnelFinancial personnel
Technician
2023 Environmental, Social and Governance (ESG) Report
Working together with Employees to Builda Better Future
Improving remuneration and bene?tsEmployee labor union constructionThe Company has always adhered to the concept of "employees are the most valuable wealth" and guaranteed that employees' bene?tshave su?cient competitiveness in the same industry.
To broaden the communication channels with employees and e?ectively understand theirneeds, PMC issued documents and systems such as theEmployee Relations RecognitionAgreementandLabor AssociationandConsultation Forum, established and improvedemployee participation mechanism, including but not limited to managed and organizedmonthly labor union meetings, transformation consultation forum (also serving thepurpose of the future forum) and Employment Equity Committee. The National Union ofMineworkers of South Africa Union (NUM), the Association of Mineworkers and ConstructionUnion (AMCU) and SOLIDARITY were established, with regular meetings to discussworkplace concerns. In 2023, 82.5% of employees joined the labor union.According to the remuneration assessment standard of "remuneration determined by post, remuneration changing withpost, result-oriented and performance ?oating standard", the Company formulates the post remuneration grade sequencefor different posts respectively and pays employees according to their actual positions and comprehensive abilities. TheCompany reviews the remuneration system every year and provides di?erent incentive plans for employees at di?erent levels.
Bene?t policies. The Company has formulated a complete bene?t system for employees to comprehensively escort them towork and grow healthily and comfortably in the Company, and enhance their sense of belonging and happiness. In 2023, thecoverage rate of the Company's medical aid insurance was 100%, the coverage rate of the pension fund insurance was 100%,and the per capita paid annual leave days were 34.
Providing medical aid programs foremployees so that they and their familiescan enjoy the best health care services.
Providing scholarships to eligibleemployees and their families to helpthem improve their skills.
Providing rent subsidies for new employeesto settle down in Phalaborwa, and housepurchase subsidies for employees to buyreal estate.
Providing employees with good retirementbene?ts (pension fund plans).
Allowing the employees to participate in theCompany's ownership plan as a beneficiaryand can enjoy benefits for another 5 yearsafter retirement.
Remuneration policies
Bene?t policies
EmployeeBene?ts Systemof PMC
Agreement Signing Site
In March 2023, after four weeks of remuneration negotiations of PMC with the National Union of Mineworkers of SouthAfrica Union (NUM), and the Association of Mineworkers and Construction Union (AMCU), a substantive agreement onremuneration and employment conditions was reached to meet employees' needs and highlight the image of "TopEmployer" in South Africa.
Case
PMC Negotiated with the Labor Union to Sign a Substantive Agreement on Employee Remunerationand Employment
2023
2023Coverage rate of the medical aidinsurance
Coverage rate of the pension
fund insurance
Per capita paidannualleave days
%days%
82.5
%
Proportion of employeesjoined the labor union
2023 Environmental, Social and Governance (ESG) Report
Working together with Employees to Builda Better Future
Safety and health
Employees’ health management
Management of work safety
Rights of mineworkers under theOccupational Diseases in Mines and Works Act
The Company has always been concerned with the safety and health of employees, formulates and improves policies and systemsrelated to their physical and mental health, relieves fatigue in a timely and moderate manner, avoids long-term and continuous work,and ensures the health of employees during work. During production, the Company adheres to the policy of "safety ?rst and preventionforemost", strives to achieve the sustainable production goals of "Zero Harm", strengthens safety management and emergency training,enhances employees' awareness of work safety, and realizes "safety from the heart".
The Company promotes all employees to undergo occupational hygiene and personal health standard medical checkups to ensurethat employees are working in the right positions in accordance with the provisions of theCode of Conduct for Employees, Safety,Health, Environment and Quality (SHEQ) Policy; educates employees to actively pay attention to their own health and provide healthmanagement services; actively masters the policies and procedures of health related to mine work; supervises and checks employees'health risks at all times, and reports employees' physical conditions to the superior in time; timely reports any violation of healthstandards; reports openly and honestly any health-related incidents; establishes Palabora Copper Mine Clinic for medical examinations,accidental injuries etc. and voluntary counseling & HIV status testing and Employee Assistance Program (EAP) as required.
The Company attaches great importance to work safety, and the leadership regularly holdswork safety meetings and conducts accident analysis, prevention and risk assessment toidentify risks. It also initiates emergency plans and control measures to identify unsafe workingprocedures or improper working conditions and minimize the possibility of accidents at work. In2023, the Company implemented a Measurement Accident Prevention Plan (MAP) to reduce risksand achieved work safety with zero harm. During the reporting period, the Company achievedremarkable results in work safety through the strict implementation of a series of safetymeasures. There were 5 lost time injuries (LTI) (the upper limit standard is 13), and the lost timeincident frequency (LTIFR) is 0.08 (the upper limit standard is 0.32).The Company adheres to the concept of "Safety is a top priority for PMC", transmits the worksafety concept and policies to every employee, and encourages all employees to pay attention towork safety issues actively. In 2023, the Company carried out 41,239 hours of safety training withthe coverage rate of work safety training reaching 93.9%.
TheOccupational Diseases of Mines and Workers Act of 1973confers a range of rights on mineworkers, all mineworkers and former mineworkerssu?ering from lung diseases due to exposure to harmful dust in the mine have the right to apply for compensation from the State; the mineworkersshall receive regular medical examinations during their employment to check whether they have lung diseases, and at the same time are entitledto a free welfare medical examination every two years; when a mineworker dies for any reason, the family has the right to request an autopsy freeof charge to determine whether the mineworkers su?ered from occupational lung disease at the time of death and if so, to apply to the State forcompensation.
Occupational Health and Safety ManagementSystem Certi?cate
The Company Commended the Emergency Response Team
The PMC Emergency Response Team, which consists of employees and volunteer capable of responding during emergenciesafter highly rigorous in training to minimize injury and ultimately save lives. On September 28, 2023, an employee of SouthAfrica suddenly fainted due to illness while working in the smelter. His colleague immediately alarmed and notified hissupervisor and emergency response team. Members of the Emergency Response Team of PMC immediately arrived at thescene to deliver the fainted employee out of danger.
CasePMC Established an Emergency Response Team
2023
PMC Popularized Health Knowledge in Internal Publications
Hours of safety training41,239hours
Coverage rate of work safety training
93.9
%
HBIS RESOURCES CO.,LTD.2023 Environmental, Social and Governance (ESG) Report
Working together with Employees to Builda Better Future
The Smelter Renovation Project (SRP) team completed 2 million hours ofzero lost man-hours and zero medical injury since the project launch in2016
Scene of the "Zero Harm" Cup Football Games
PMC has always been recognized as a leader in work safetyin the mining industry. In the 2022/2023 Mine MetallurgicalManagers’ Association of South Africa (MMMA), PMC wontwo awards in the safety category, once again consolidatingits position in work safety.
CaseMagnetite Department Won Safety Awards in the 2022/2023 MMMA Award Cycle
Member of Magnetite Department, PMC
Employees Who Received the "Innovation Awards"
PMC has launched the Employee Value Proposition program to reward individuals and teams who have demonstratedexcellent services and positive working attitudes at work. In 2023, the Company awarded four of PMC employees the"Innovation Award" for their outstanding contributions to innovation.
CasePMC Rewarded Individuals or Teams with Outstanding Performance
Growth promotion
Smoothing development channels
The Company attaches great importance to talent cultivation and development. By launching various talent programs, it builds acapable, enterprising and dedicated employee team to promote the career development and personal growth of employees; activelyencourages employees to take the initiative to carry out professional training to achieve common development between employees andthe Company.
The Company provides a performance development plan (PDP) for each employee to help them achieve career development. TheCompany links the performance management system with business objectives, evaluates the overall ability of potential employeesopenly and progressively, further encourages and supports outstanding employees through mentoring and coaching programs,accelerated learning plans and leadership development strategies, and gives guidance to correct errors for poorly performingemployees. It optimizes the promotion system, creates a career development path for employees according to the work attributes ofeach department, gives priority to internal promotion, and continuously makes smooth the career development channel. In 2023, theturnover rate of employees was 3.28%.
HBIS RESOURCES CO.,LTD.2023 Environmental, Social and Governance (ESG) Report
Working together with Employees to Builda Better FutureEncouraging employees to learn
The Company strives to provide employees with fair education, training and development opportunities. It provides correspondingtechnical and behavioral skills training programs for different categories of professional positions. As of 2023, PMC has held sevenconsecutive annual vocational qualification certification meetings to recognize outstanding employees who have successfullycompleted vocational skills training or industry projects. The Company helped to solve the skill gap in the industry and signi?cantlyimprove the skills of employees; provided mandatory training on specific policies and regulatory responsibilities to ensure thatemployees could continuously accumulate and update their skills and experience. At the same time, the Company provided variousforms of learning assistance such as grants to eligible employees so that they could improve their work skills. In 2023, a total of CNY36,696,148 was invested in employee training, and the average training duration was 53 hours per capita.
PMC Conducted Technical Training for Operators and MaintenancePersonnel
PMC Awarded Certi?cates to Graduates at the Annual Vocational Quali?cationConference
New WIM Executive Committee Member
Happy workplace
Caring for female employees
A happy workplace environment can stimulate employees' work vitality and recognition of the Company. The Company attaches greatimportance to improving the well-being of employees, especially the care for female employees, and promotes more women to standin the center of the workplace with a complete system. It regularly holds activities to strive to form a happy workplace atmospherethroughout the Company through rich forms of activities and improve the work enthusiasm and e?ciency of employees.
PMC attaches great importance to the recruitment of femaleemployees, aims at reaching or exceeding 25% of femaleemployees, and helps them solve the problems faced in miningthrough the "Women In Mining" system. In 2023, PMC establisheda new Women in Mining Executive Committee to enable womenemployees to proactively organize and manage resources andpromote greater responsibilities for capable female employees.
The Company insists on giving a special welfare system to female employees during pregnancy, maternity leave andlactation in accordance with relevant national regulations to effectively protect the rights and interests of femaleemployees. PMC established an applicable maternity leave policy, which provided eligible female employees with amaximum of 6 hours of paid vacation per week to facilitate the care of infants.
PMC has prepared theSexual Harassmentto eliminate sexual harassment in the workplace and take disciplinary action againstall employees convicted of sexual harassment.
Maternity leave policy
Anti-sexual harassment
Jane van Wyk, an Employee of PMC, Became the World Champion of Women'sShotgun in 2023
Induction training (employees)
Promoting the integration of new employees into the organizationMeasuring satisfaction index
Scheduled training coursesBooking training activities and keeping learning records
CTSProviding computer-based security and technical training for employees
Online learningCare about employee development in soft skills areas
External trainingDocument and plan training needs to drive employee development
Employee Training System of PMC
2023 Environmental, Social and Governance (ESG) Report
Working together with Employees to Builda Better Future
SHEQ Spring WalkingBalancing work and lifeTo make the majority of employees adjusted in their spare time, the Company attaches great importance to balancing the work and lifeof employees and organizes employees to jointly carry out diversi?ed theme activities, interesting activities, festival activities, etc., toenhance employee cohesion and show their personal charm and value. In 2023, the employee satisfaction of PMC was 81.8%.
Valentine's Day Activity
Awarding Ceremony of "Long-term Service Award"
Employee recognition is an important part of a healthy working environment and culture. On November 17, 2023, PMC helda long-term service award activity to commend 48 employees who have served the Company for many years, motivate themand fully a?rm their loyalty and sense of mission.
CasePMC Held "Long-term Service Award" Activity
Traditional Day Activity
The 2nd Family Marathon
PMC Heritage Day Celebration
2023 Environmental, Social and Governance (ESG) Report
Working together with Partners to AchieveMutual Bene?ts
SDGs：
Working together withPartners to AchieveMutual Bene?ts
With the goal of "being the most competitive enterprise in theindustry", the Company adheres to the marketing concept of"customer-oriented" and the quality policy of "Science andTechnology Lead the Future, Green Development PromotesDevelopment". It is committed to establishing transparent andethical relationships with suppliers, customers and governments,so as to promote the Company to take solid steps on the road ofhigh-quality development.
The Company conducts regular customer surveys every yearto understand customers' views on the service;The Company continuously improves the procurementsystems such asPreferential PolicyandPreferentialProcurement Policy, and standardizes the Company'sprocurement management work and process;The Company established a Supplier Evaluation Committeeto evaluate the quali?cations of suppliers;PMC signed a memorandum of understanding with theUniversity of South Africa to actively carry out academicexchanges and strategic cooperation;PMC participated in the 10th Annual Social and Labour PlanConference, which was endorsed by its President.
Our philosophy
Our actions
2023 Environmental, Social and Governance (ESG) Report
Working together with Partners to AchieveMutual Bene?ts
Customer serviceThe Company continues to implement rules and regulations suchas Marketing and Sales Strategy Policies, Customer Service andComplaint Procedures and Customer Requirementsto ensure that the Company protects customers' rights and interests in accordancewith ISO 9001, ISO 14001 and other standards, strengthens quality management, insists on innovation empowerment, and is committedto providing customers with more high-quality and reliable products. Win the trust of customers. The Company timely responds tocustomer complaints, standardizes the customer complaint handling process and improves customer satisfaction.High-quality products
Excellent services
The Company makes full use of its competitive advantages in the copper wire market, magnetite cost advantage as a by-product andrich vermiculite resources in South Africa to exploit, process and sell products such as copper, iron ore and vermiculite, strengthensproduct quality management, registers quality risks and environmental risks during product production and sales, and providescustomers with high-quality mineral products stably. It collects relevant information on customers' views and opinions on products andstops losses of nonconforming products according to relevant standards. The ex-factory pass rate of the Company's products reached95% during the reporting period.The Company adheres to the quality policy of "Science and Technology Lead the Future, Green Development Promotes Development",advocates and supports value creation and innovation culture, adopts innovative technologies, completes the transformation of thesmelter supporting the copper phase II project, provides a guarantee for the smooth production of copper phase II, e?ectively improvesthe quality of copper products, and promotes the Company's capacity to a new level. During the reporting period,the Company investedCNY 32,827,838 in process technology improvement and research.
The Company adheres to the marketing concept of "customer-oriented" and practices responsible marketing; conducts a customersurvey once a year to understand the overall view of customers on the Company's services; updates the list of customers in time andrecords it in "Pivot" and SAP to ensure customer information security; timely handles customer complaints based on theCustomerService and Complaint Procedures, monitors customer complaints, and attaches importance to improving the customer service quality.During the reporting period, the Company's complaint resolution rate was 100% and customer satisfaction was 100%.
2023
Flotation Plant Recovery Improvement Project Team
The ?otation mill recovery improvement project is mainly to optimize the production of the new ?otation mill, increasingthe copper recovery from 75% to 85% while maintaining the copper grade of copper concentrate at 28%-30%. In 2023, the?otation mill recovery rate improvement project was recommended for the "Outstanding Contribution Award of Scienti?cand Technological Innovation".
Case
Flotation Plant Recovery Rate Improvement Project Participated in the Appraisal of the"Outstanding Contribution Award for Scienti?c and Technological Innovation"
Customer complaint handling measures of PMC
Actively handle quality objections to avoid them escalating into formal customer complaints;
Convene a meeting to study and determine the responsible department when dealing with cross-departmentcustomer complaints;
After receiving customer complaints, the sales and administration specialist shall contact relevant personnel in timeto ensure that customer complaints are resolved promptly;
Send reminder letters to the parties involved in the incident every week during the handling of customer complaints;
Record customer complaints in the "Pivot" system and analyze complaint information to prevent similar complaintsfrom happening again;
The survey conducted in the business area is expected to receive initial feedback within 7 working days.
High-Quality Cathode Copper Produced by PMCCerti?cate of Quality Management System
Certi?cationInvestment in process technologyimprovement and research32,827,838
CNY
%Product ex-factory pass rate
2023 Environmental, Social and Governance (ESG) Report
Working together with Partners to AchieveMutual Bene?ts
Responsible procurement
Cooperating with partners
The Company has continuously improved the supply chain ESG managementsystem, made full use of local laws and regulations in South Africa such as theBroad-Based Black Economic Empowerment Act (B-BBEE) and the Mineraland Petroleum Resources Development Act,actively implemented lawsand regulations such asEnterprise and Supplier Development Policy, andimplementedProcurement and Material Management Operating Procedures.The Company has continuously improved the procurement systems such asPreferential PoliciesandPreferential Procurement Policies, standardized theCompany's procurement management work and process, carried out full lifecycle management of suppliers, provided training for suppliers, and helped thesustainable development of the supply chain.
The Company actively carries out strategic cooperation with partners, continuously drives the coordinated development of upstreamand downstream industrial chains, realizes resource sharing and complementary advantages, and ensures the safety and stability ofthe industrial chain and supply chain. It actively participates in industry exchanges, discusses high-quality development plans for themining industry with industry experts and outstanding enterprise representatives, and promotes exploration and innovation in themining industry.
Supplier access
Strategic cooperation
Supplier audit
Supplier training
The Company continues to improve supplier development and access, increases procurement channels, strengthens cooperation withlocal suppliers in South Africa, actively seeks more suitable supplier partners worldwide, continuously optimizes the supplier structure,and maintains the stability and sustainability of the supply chain. It established a Supplier Evaluation Committee to evaluate thequali?cation of suppliers and participate in judging whether the procurement process is compliant. PMC gave priority to local Africanwomen and suppliers with higher B-BBEE levels.
The Company has continuously improved the strategic cooperation mechanism, actively expanded the scope of cooperation withgovernment agencies, colleges and universities, upstream and downstream enterprises, etc., launched more projects with strategiccooperation potential, and achieved win-win results with strategic partners.
The Company continuously conducts supplier ESG review and evaluation through the SAP system and ARIBA e-procurement platform,regularly evaluates the performance of suppliers, grades suppliers, and uses rating as a standard for key procurement decisions. Duringthe reporting period, the Company conducted ESG assessment on 7 suppliers, and 62 suppliers were suspended from cooperation dueto non-compliance.
The Company attaches importance to improving the supplier training system and carries out relevant training through the supplierdevelopment plan. If the Supplier is identi?ed as a quali?ed enterprise or supplier development bene?ciary, the Company may elect tosupport the growth of the Supplier by providing early payment, business support and other speci?c support speci?ed in the supplierdevelopment agreement through the Supplier development plan.
Certifyingsuppliers'developmentalquali?cations
Conducting aneeds analysis with
suppliers
Quantifying the valueof this non-monetaryagreement
Instruction, training,
reporting, etc.
PMC biddingprocess
Contracting withsuppliers basedon SD standards
Integrating supplierdevelopment clauses
into compliance
contracts
Supplier Development Model - Based on Procurement and Transformation
PMC won the B-BBEE Level 4 Evaluation
Employees of PMC Participated in the "UNISA Open Day" Activity
Based on the concept of deepening cooperation, PMC signed a memorandum of understanding with the University of SouthAfrica to establish close links in education and research in mining, metallurgy and other ?elds and jointly carried out research,data collection, policy analysis and educational activities. The Company has e?ectively promoted cooperative developmentbetween PMC and the University of South Africa to achieve complementary advantages.
CasePMC Signed a Memorandum of Understanding with the University of South Africa
HBIS RESOURCES CO.,LTD.2023 Environmental, Social and Governance (ESG) Report
Working together with Partners to AchieveMutual Bene?ts
PMC Worked with Partners to Patrols
PMC cooperated with the Limpopo Province Department of Roads and Transport Limpopo Province, Phalaborwa Departmentof Transportation, and Roads Agency Limpopo to patrol the R40 Highway to encourage drivers to observe road safety rules,e?ectively reduce magnetite scattering and ensure road cleanliness.
CasePMC Carried out Multi-party Cooperation to Ensure the Safety of Mineral Resources
Group Photo of PMC Leaders with the Ventilation Shaft Project Team Members
"As a mining company, we are always at the forefront of advancing e?cient community development plans and projects,actively holding and participating in industry conferences, and demanding ourselves with higher standards."
- Tshidi Ngobeni, President and Speaker of the Conference
The successful cooperation between PMC and Murray & Roberts in laying a ventilation shaft with a diameter of 8.5 metersand a depth of 1,200 meters was an extraordinary achievement that has vividly witnessed the careful planning andexecution of PMC and Murray & Roberts for ?ve years, which could extend the lifetime of the copper phase II project byabout 13.5 years.
The 10th Annual Social and Labour Plan Conference was held at Midland Gallagher Convention Centre from June 28-29, 2023. PMC sent representatives to attend the meeting and communicate with companies in the same industry. At themeeting, PMC was recognized by the chairman of the meeting, and this pointed out the direction for mining enterprises toassume social responsibilities and comprehensively improve their core competitiveness.
Case
Case
PMC and Murray & Roberts Successfully Cooperated in the Copper Phase II VentilationShaft Project
PMC Participated in the 10th Annual Social and Labour Plan Conference
Industry exchanges
The Company is committed to enhancing cooperation and communication within the industry. It actively participates in industrymeetings to stay informed of the latest industry trends and developments. The Company aims to learn from advanced developmentexperiences and share its own experience and wisdom with the industry. Furthermore, it strives to convey its advanced concepts andmodels to the industry and explore new ways for industry exchanges and cooperation.
HBIS RESOURCES CO.,LTD.2023 Environmental, Social and Governance (ESG) Report
Making Arduous E?orts for EnvironmentProtection and Green Development
SDGs：
Making Arduous E?orts forEnvironment Protectionand Green Development
The Company is committed to its environmental policy whichfollows the principles of "people orientation, legal compliance,work safety, energy conservation and consumption reduction,green environmental protection, and continuous improvement".The Company is actively exploring a green and low-carbondevelopment model that complies with international standards.It has established an environmental management system topromote energy conservation and emission reduction, protect theecological environment, and highlight its image as a responsibleenterprise.
Make coping climate change one of the Company's keytasks and promote the construction of an environmentalmanagement system.Establish and improve the environmental protectionemergency mechanism, enhance the emergencyresponse ability, and cultivate employees' awareness ofenvironmental protection;Continuously implement the energy management plan andwater management plan, promote discharge management,and reduce the harm of "three wastes" to the environment;Develop a biodiversity management plan and pay closeattention to the natural environment and biologicalprotection of the area.
Our philosophy
Our actions
2023 Environmental, Social and Governance (ESG) Report
Making Arduous E?orts for EnvironmentProtection and Green Development
Green management
Green operation
The Company is committed to coping with climate change by reinforcing the construction of an environmental managementsystem and enhancing environmental protection emergency mechanisms. It aims to promote its green transformation and high-quality development by cultivating employee awareness of environmental protection and improving their ability to deal withenvironmental risks. By doing so, the Company strives to make a tangible contribution towards building a green homeland inSouth Africa, where people and nature coexist harmoniously.
The Company is committed to integrating green development into its business operations. To achieve this, it promotes three-dimensional energy management and control, plans and reasonably utilizes water resources, and strengthens the emission controlof waste gas, wastewater, and residue. The Company ensures that all types of waste are disposed of properly and coordinates itseconomic, social, and environmental development.
Coping with climate change
Strengthening energy management
Environmental protection emergency mechanism
Cultivating environmental awareness
Environmental management system
The Company has a deep understanding of the potential impact and risks of climate change on its operations, and always regardscoping with climate change as one of its key tasks to mitigate the adverse e?ects of climate change on business operations.The Company conducted in-depth research on greenhouse gas emission sources and found that most of the greenhouse gases emittedwere indirectly from purchased electricity, while the rest came directly from the consumption of fossil fuels such as coal and diesel.The Company decided to take power use as a key control area to reduce greenhouse gas emissions. In 2023, the direct greenhouse gasemissions (Scope I) was 65,131 tCO
eq and the indirect greenhouse gas emissions (Scope II) was 470,872 tCO
eq, with a greenhouse gasemissions density of 0.91 tCO
/CNY 10,000.
In 2012, PMC launched an energy management plan to determine, implement andmaintain energy conservation projects, and strengthen the construction of its internalenergy use management system. It actively created a more energy-saving andenvironmentally friendly internal environment, continuously improved the energyutilization rate, and promoted the benign interaction and organic integration of theCompany's environmental bene?ts and economic bene?ts.As a mining resource enterprise, the Company needs a lot of electricity to support itsmining, ?otation, smelting and re?ning processes. The Company obtained the requiredpower from Eskom through a local substation. The Company has built a new wasteheat turbine generator set rated at 4 MW, which will be ready to operate when the newsmelter is put into production, and will further support its energy needs. During thereporting period, the Company consumed a total of 13,011 tons of standard coal, andimplemented 12 energy management projects, reducing 16,841,074 kWh of energy useand 16,793.39 tons of carbon dioxide emissions.
To cope with environmental emergencies, the Company has established a resource, training and alarm team. For hazardous chemicalsinvolved in the production process, the Company has established material safety data sheets to ensure that countermeasures can betaken quickly in case of environmental incidents such as chemical leakage. During the reporting period, there were 11 environmentalincidents occurred in PMC.The Company has provided targeted training for employees to ensure that they understand the environmental management systemof the Company and promoted the e?ective implementation of the environmental management system. It has clearly communicatedthe Company's environmental policy implementation standards to contractors and other partners at all times, ensured that partnersunderstand their own obligations, and ensured that the environmental management system covers the whole process of the Company'sbusiness.
The Company's energy consumption and pollution emissions come from PMC.According to theMineral and Petroleum Resources Development Act of South Africa,PMC completed the environmental impact assessment report and environmentalmanagement plan, which were successfully approved and obtained ISO 14001environmental management system certification. It established, implemented andcontinuously improved the environmental protection management system, promotedthe construction of the environmental management system, and strived to achievesystem compliance, up-to-standard discharge, energy conservation and consumptionreduction. During the reporting period, the Company invested a total of CNY 5,220,945 inenvironmental protection
.
1.This data does not include expenses that could be used for environmental protection in the business, such as dust suppression and ecological restoration.
2023
2023
Investment in environmentalprotection5,220,945CNY
tCO
eqDirect greenhouse gas emissions(scope I)65,131
Indirect greenhouse gas emissions(scope II)470,872t CO
eq
Greenhouse gas emissions density
0.91
tCO
/CNY 10,000
PMC Obtained ISO 14001 EnvironmentalManagement System Certi?cate
Newly Built Waste Heat Turbine Generator atSmelter
Environmental Protection Knowledge Poster
2023 Environmental, Social and Governance (ESG) Report
Making Arduous E?orts for EnvironmentProtection and Green Development
Waste from the Main Business of the Company
Fossil energy consumption
Product productionOre mining
Power ConsumptionCopper ProductionVermiculite ProductionMagnetite
Underground mine
Miscellaneous
Surface ore
Total consumption
Polyester fuel560 t
Copper ore
Magnetite
Vermiculite ore
423,118.62 MWhCoal7,873 t
Production of copper
products
Magnetite production
Vermiculite ProductionProduction of otherproducts
17,978.02 MWh
Diesel1,082 t
Bene?ciationPyrometallurgyElectrore?ning
RollingFlotationHydraulic recoveryCrushing and screeningDrying and separation
Blowing and assayConcentrated sulfuricacid, etc.
Pollution of reverberatory furnacewaste gas, converter waste gas
and dust
Dust, wastewater and other pollution
Dust and other pollutions
Acidic wastewater and other pollution
21,845.45 MWh1,156.93 MWh464,099.02 MWh
Protection and sustainable utilization of water resources
Discharge and control of "three wastes"
Water Consumption of PMC
Total annual Water Consumption from 2021 to 2023(unit: m
)
The Company is committed to complying with the relevant regulations related to water resource protection. The Company is activelyinvolved in managing water resources by developing water management plans and improving the utilization rate of these resources. Themonthly water consumption in the mine premise, tailings dam area, and powerhouse area is thoroughly recorded to identify the usageof water resources. Targeted measures are then taken to control the consumption and promote the optimal use of water resources. PMCtook part in local water resource management meetings to collaboratively develop a comprehensive strategy for the region. In 2023, theCompany saved 2,502,441 m3 of water consumption.
In response to the discharge of "three wastes", the Company strictly abides by national and local environmental protection regulationsand standards. It not only strictly controls the discharge, but also makes remarkable efforts to reduce waste generation, improveresource utilization efficiency and promote the circular economy, to ensure the environmental compliance of its production andoperation activities and help it achieve sustainable development.
2014201520162017201820192020202120222023
Jan-23Feb-23Mar-23Apr-23May-23Jun-23Jul-23Aug-23Sep-23Sct-23Nov-23Dec-23
Water Consumption from 2014 to 2023（MI/Day）Monthly Total Water Consumption in 2023 (MI/Day)
Total fresh waterTotal recycled water
Raw WaterPotable waterFresh water ceiling
VermiculiteProduction
Monthly Total Water Consumption in 2023 (MI/Day)
10.77
2.07
10.17
2.05
10.16
1.95
9.80
2.11
8.50
2.19
7.56
2.23
10.37
2.23
7.51
2.14
8.82
2.50
11.43
2.57
7.78
2.61
9.30
2.68
Jan-23Feb-23Mar-23Apr-23May-23Jun-23Jul-23Aug-23Sep-23Sct-23Nov-23Dec-23Water Consumption from 2014 to 2023（MI/Day）2014201520162017201820192020202120222023
13.2
2.7
12.3
2.6
15.1
2.6
14.78
2.38
9.35
2.28
16.08
2.45
18.32
2.73
15.57
3.17
13.8813.50
2.59
2.81
2021
6,261,748
20226,760,641
20234,258,200
2023 Environmental, Social and Governance (ESG) Report
Making Arduous E?orts for EnvironmentProtection and Green Development
Tires, rubber linings, waste containing PCBs, etc.Placed in a speci?c storage yardSpecial wastes
Wastewater management
Waste gas management
Solid waste management
PMC has obtained many water use permits in accordance with therequirements of theWater Law of South Africa, which are regularlyaudited by external agencies. To reduce raw water consumption andevaporation from the return tailings dam, the Company has establisheda closed water circulation system that brings all used water resourcesunder control for recycling within the plant. PMC monitored theseepage of tailing storage facilities, groundwater and water quality ofnatural rivers, with more than 45 monitoring points. PMC has excavatedmore than 140 borehole monitoring points to monitor groundwater,built groundwater models and monitoring systems, used monitoringdata to assess the impact of wastewater discharges, and immediatelyadjusted water management systems.
PMC has obtained an Air Emissions Permit (AEL) to strictly comply with its emission limits for sulfur dioxide, particulate matter and dust. The main sources ofwaste gas from PMC are reverberatory furnaces and converters in the production of copper products. Since the converter exhaust gas is rich in sulfur dioxide,most of it is transported to acid plants for conversion into sulfuric acid to reduce sulfur dioxide emissions. At the same time, PMC has built an air qualitymonitoring station and a dust drop measuring instrument to monitor meteorological data, sulfur dioxide and particulate matter in real time, evaluate theimpact of production on the environment and community, and ensure that emissions do not exceed the speci?ed limits.In 2023, the Company discharged 1,132,900 tons of waste gas, 201.22 tons of particulate matter, 2.27 tons of sulfur dioxide and 54.26 tons of nitrogen oxidesin total.
PMC has obtained a Waste Management License (WML) accordingto local requirements for waste discharge management, whichis regularly audited by external agencies. It has establisheda comprehensive waste management plan, formulatedthe Integrated Waste Management Standard, specified theclassification and disposal methods of wastes, determinedthe disposal process, and treated solid waste generated inproduction and operation according to law and regulationsthrough reasonable use of materials, waste classi?cation, wasterecycling and reuse.In 2023, the Company discharged a total of 821,000 tons ofhazardous waste, 756 tons of non-hazardous waste and 165 tonsof recycled waste. The comprehensive utilization rate of solidwastes reached 21.8%.Groundwater Monitoring Point of PMC
Hierarchy of waste management
Required Emission Limits of Air Emissions Permit (AEL)
Types and Treatment Methods of Solid Wastes
Type of wastesTreatment method
General waste/non-mineralsPaper, plastics, cans, plastic bags, glass, wood, etc.
Land?ll and recycleas much as possible
Tailings, waste rocks, slags, boiler ash, etc.Placed in speci?c yardsMinerals and processing wasteBatteries, printer cartridges, chemical waste (acids,PCBs, hydrocarbons), asbestos, ?uorescent tubes, etc.
Placed in a speci?c storage yardHazardous waste
Measures taken by the Company to reduce sulfur
dioxide emissions include
Measures taken by the Company to reduce
dust emissions includeUpgrade treatment equipment (including secondaryhood, demister and ?uoride scrubber)
Install electrostatic precipitators and gas scrubbingequipment on production equipment such asreverberatory furnaces
ShutdownInstall a dust suppressing system in the plant anddevelop a preventive maintenance program
Replace primary shields to minimize fugitive sulfurdioxide emissions
Install sprinklers on conveyor belts and other conveyingdevices for regular sprayingGas treatment and scrubber maintenance
Regular clean-up of spills along ?xed infrastructure suchas the conveyors and crushers
Renovated Sulfuric Acid PlantNew DSB Furnace
The Company renovated the smelting process in the smelter, and further improved its development quality by replacing theold reverberatory furnace with a double-sided blowing (DSB) electric furnace, changing the sulfuric acid plant into a double-contact double-suction device, adding converter slag cooling devices and other measures, to explore a new direction for theenterprise's transformation towards green, low-carbon and resource conservation.
CaseThe Company Promoted the Smelter Renovation Project (SRP)
10-minute mean
ppb
Average hourly
value
ppb
Average yearly
value
ppb
Average daily
value
ppb
Residential limits
mg/㎡/day≤
Non-residential limits1,200mg/㎡/day≤DustSulfur dioxide value
AVOID 避免REDUCE减少RE-USE再利用RECYCLE回收
DISPOSE
处理
HBIS RESOURCES CO.,LTD.2023 Environmental, Social and Governance (ESG) Report
Making Arduous E?orts for EnvironmentProtection and Green Development
Ecological protectionIn accordance with the relevant laws and regulations of the host country, such as theNational Environmental Management Act
and the Mineral and Petroleum Resources Development Act, and the practical requirements of Kruger National Park, PMC strivedto promote the harmonious coexistence of human beings, industry, wildlife and cultural heritage in biodiversity conservation,vegetation protection, land restoration and other aspects.
Practicing green o?ce
Wildlife management
The Company actively promotes a green o?ce culture by adopting practical measures to protect the environment. It strives to create aneco-friendly work environment by focusing on energy conservation and reducing consumption. It has posted signs to save electricity andwater, encourage electronic and paperless o?ces, reduce printing, and minimize the use of disposable o?ce supplies. The Companyadvocates video and telephone conferences as an alternative to in-person meetings to reduce energy consumption. It also encouragesemployees to adopt green and low-carbon o?ce and living habits to save water and electricity.
As a semi-open system, there is not only the flow of wildlife but also an integrated growth system of vegetation between the minepremise of PMC and Kruger National Park. To protect the precious ecological environment, PMC has long adhered to the biodiversitymanagement plan and paid close attention to the natural environment and biological protection in its area. In 2023, PMC implementedan anti-poaching program and installed all-mine camera systems, resulting in a signi?cant reduction in poaching incidents and a 91percent decrease in the number of trapped animals.
Sign at the Entrance of Palabora Mine Premise: "PALABORA" NOT ONLYA MINE, A WILDLIFE SANCTUARY TOO
Palabora Mine Premise
Kruger National Park is the largest wildlife park in South Africa and one of the wildlife reserves with the best naturalenvironment and the most animal species in the world. There are more than 1,000 kinds of animals and plants, making it aprecious resource reserve in South Africa.
Tips:
Flora and fauna management measuresundertaken by PMCFormulate wildlife management proceduresaccording to the species and characteristics of wildanimals encountered;
Provide appropriate forage and water for wildlifecoming to the mine premise, as applicable;Carry out a general survey of wild animals andan ecological investigation once a year, and forma wildlife investigation report and an ecologicalmonitoring report;Study climatic conditions and conduct trendanalysis to predict biomass;Establish a dedicated wildlife management team toprevent poaching, rescue injured wild animals andexpel dangerous wild animals (venomous snakes,predators, etc.).
Set protective nets at the border between KrugerNational Park and PMC to prevent wild animalsfrom entering;Take tra?c interventions on roads within the minepremise to ensure priority and safety of wildlife;
PMC Popularized Migratory Birds Knowledge inInternal Publications
In the 17th internal publication, PMC popularized theknowledge of migratory birds in a separate edition,introduced these "amazing travelers" and their?ight routes, and published some seasonal picturesof "tourists" who would come to PMC, to enhanceemployees' awareness of wild bird protection andhelp enterprises achieve positive results in protectingwildlife habitats.
Case
PMC Carried out SciencePopularization on Migratory Birds
Wildlife on PMC Site
Wild Elephants in the Mine PremiseWild Antelopes in the Mine Premise
2023 Environmental, Social and Governance (ESG) Report
Making Arduous E?orts for EnvironmentProtection and Green Development
Wild Birds in the Mine Premise
Zebra in the Mine Premise
Employees Rescued a ElephantAn Employee Rescued a Lion
Wild Baboons in the Mine Premise
Wild Egret in the Mine Premise
An Employee Rescued a Python
动物救助及转移
A Warthog is Feeding on the Acacia ?owers Scattered in Front of the O?ceVegetation protection in the mine premise
Land remediation in the mine premise
PMC has conducted detailed investigation and analysis on the surrounding landtypes and vegetation types, established a vegetation restoration plan according to thecomposition of plant communities, and protected local species by chemical destruction,removal from the area and burning. For land negatively a?ected in the mine premise,local plant species are also used for vegetation restoration. The Company is committedto maintaining the stability of ecosystems.
PMC has actively formulated a land remediation plan. For the damage to land functionscaused by production, plants are replanted in the tailings dam and rock pile, andreasonable plant species combination selection is adopted to improve plant coverageand reduce the erosion of wind and water on the surface, thus reducing the potentialpollution threat to the surrounding area. By December 2023, PMC has rehabilitatedapproximately 22 hectares of land.
Vegetation Types of Plant Communities Around PMC
Trees
Black wattle, birch, mopane, acacia, actinodaphne forrestii, dalbergiamelanoxylon, dichrostachys cinerea, Barbarium africana, eucalyptusbilifolia, silver tufted leafCephalotaxus fortunei, Commiphora africanum and melhania
Evolvulus alsinoides, heliotropium arborescens, Ipomoea pes-tigridis L.and xanthocerasIndian rehmannia, eupatorium chinensis, bluestem grass, rhododendronchinensis, guinea grass and kangaroo grassShrub
HerbsGrass
Wild Acacia in the Mine Mremise
Marula Trees in the Mine
Comparison Before and After Rehabilitation ofWaste Dumps
Actions to be taken for future reclamation work plans
Covering the dumps of the tailings dam and remaining magnetitestockpiles to reduce ground and surface water pollution as well as winderosion and soil erosion, using a harmless mixture of vermiculite wasteand sowing with indigenous grass species;pumping of saline groundwater from around the tailings dam for a periodof 10-20 years until seepage is reduced to speci?ed values;Removing abandoned process facilities and replanting disturbed areas.
2023 Environmental, Social and Governance (ESG) Report
Working together with the Public toCreate a Happy Life
SDGs：
Working together withthe Public to Create aHappy Life
The Company has consistently followed the sustainabledevelopment principles of "mutual benefits" and "win-wincooperation". It has actively taken on social responsibilities,forged long-lasting relationships with local communities andbusinesses, and promoted harmonious and friendly relations.With a focus on long-term development, the Company has builta high-quality enterprise that is committed to promoting localgrowth and development.
Drive the development of local enterprises and talentswith company advantages and resources, implement ESDprograms, provide vocational training for local youth, andempower talents;Actively undertake social responsibilities to serve thecommunity, strive to build a harmonious relationshipwith the local community, help the community improvetraffic conditions and enable the community to achievesustainable development;Participate in a variety of public welfare and charityactivities, and continuously provide warmth for the localarea by supporting the development of local education andimproving medical and health conditions.
Our philosophy
Our actions
2023 Environmental, Social and Governance (ESG) Report
Working together with the Public toCreate a Happy Life
Development facilitationCommunity serviceSince it acquired PMC in 2017, the Company has continuously supported the development of small and medium-sized enterprisesin local communities in South Africa and youth employment, promoted local communities thrive with advanced technologiesand experiences,, and gained a good reputation in the local area. Since 2018, PMC has been actively carrying out LED projects toprovide skills development and educational opportunities for residents of surrounding communities. In 2023, PMC submitted anew round of social and labor plans for the period 2023-2027.
The Company insists on establishing a long-term partnership of mutual respect and mutual benefits with the local communities,contributing to the community with sincerity. In South Africa, the PMC actively develops formal and informal relationships withlocal communities such as Phalaborwa, Namakgale, Lulekani, Makhushane, Maseke, Mashishimale, Selwane and Majeje. It hasactively formulated policies related to relationship management with local communities and met the development needs ofcommunities by carrying out some community-based activities. During the reporting period, the Company actively carried outcommunity services, directly benefiting 3,075 community residents and indirectly benefiting over 100,000 community residents.The Company has continuously implemented the ESD (Enterprise and Supplier DevelopmentPolicy) program to provide employment opportunities for local community personnel, especiallyAfricans. Since 2021, it has assisted in indirectly employing more than 1,000 local communitypersonnel.Providing employmentopportunities
The Company has actively cooperated with local enterprises to involve small and medium-sizedenterprises in the procurement value chain and accelerate their development.Driving enterprise
development
The Company has paid attention to the development and growth of local youth, used the ownadvantageous resources to provide them with vocational professional training, brought careergrowth opportunities and helped long-term development.Empowering youth
growth
In 2018, PMC launched a new project to support the development of local small and medium-sized enterprises and suppliers- "Palabora Link". The "Palabora Link" project supported local enterprises, created employment opportunities for communityresidents and reduced the economic impact of mine closure on community residents. The project beneficiaries got thepriority of supply, and their equipment or services were preferred by the Company's procurement department to promote thedevelopment of local enterprises and suppliers of PMC.
From April 2023, PMC encouraged employees to donate fresh food, toiletries, clothes and blankets to the poor. In July, PMCfurther expanded its scope of donation. On Mandela Day, PMC prepared meals for more than 1,000 children in Phalaborwacommunity to give back to local communities.
Case
CasePMC Launched the Palabora Link Project to Promote the Development of Local Enterprises
PMC Provided Dietary Help for Children in the Community
PMC Donated Food to Children on Mandela Day
Community Relations Policies
Ensure that the needs of local communities are understood through consultation;Ensure that all employees correctly understand the policies;Cooperate with local contractors and suppliers to ensure compliance with the policies;
Promote the development and self-su?ciency of Phalaborwa communities and workers;Develop and implement cultural heritage management systems with local communities.
Conduct regular "community baseline assessments" to ensure updated information on social issues and economicdevelopment needs;Partnering with the Leolo Community Trust to help bring harmony to the community;
Establish and maintain a mutually acceptable consultation and engagement process to build consensus withcommunities on shared visions and improvement actions;
PMC Facilitated Local Youth Grow
2023 Environmental, Social and Governance (ESG) Report
Working together with the Public toCreate a Happy Life
PMC actively carries out scholarship activities and grantsgenerous scholarships every year to motivate outstandingstudents and support higher education. In March 2023,PMC awarded scholarships to 27 students who performedwell in the academic year.
In August 2023, PMC, in partnership with the Leolo Community Trust, and Murray & Roberts, inaugurated a fully equippedschool in Mashishimale Community. The primary school had infrastructure such as classrooms, administrative districts andrestaurants. Among them, the kitchen, as part of the government's nutrition program, provided students with meals every dayto help local students grow up healthily.
Case
Case
PMC Awarded Scholarships to 27 Outstanding Students
PMC Invested in the Establishment of a Primary School in Mashishimale Community
Group Photo of Award-winning Students
Delivery Ceremony for Primary SchoolStudents Attending Primary SchoolPanorama of the Primary School Invested by
PMC
Public welfare and charityThe Company focuses on the field of public welfare and charity and continuesto repay society with its original intention of charitable action. The Companyhas actively carried out charity education, charity medical care and otheractivities to create a social atmosphere of uplifting kindness and altruism withpractical actions and implement corporate citizenship responsibility. In 2023,the total public welfare donations of the Company was CNY 10,436,183.
2023
Total amount of public welfaredonations
10,436,183CNY
Investment in education
The Company pays attention to the development of local education and improves the school-running conditions and teachingenvironment in South Africa through activities such as building schools, donating materials and setting up scholarships according to thecurrent situation of local education level, to illuminate the future path for students.
PMC is committed to the infrastructure development of local communities. In accordance with the comprehensivedevelopment plan of the municipal government, a 3.4 km-long road was built in Mashishimale Community to help localresidents easily access neighboring villages, schools and Phalaborwa Community. It was very convenient to travel andbrought prosperity to the local area.
CasePMC Built Roads in Mashishimale Community to Optimize Community Transportation
PMC Built Roads in Local Communities
PMC Donated Ambulances to Local CommunitiesPMC Donated Christmas Food Kits to Community Residents
PMC Donated Football Equipment to Local Communities
2023 Environmental, Social and Governance (ESG) Report
Working together with the Public toCreate a Happy Life
Disease prevention
The Company pays attention to the medical and health conditions in South Africa and improves them. By donating cleaning supplies,and helping drinking water meet standards and other measures, it reduces the risk of disease transmission and protects the life andhealth of residents.
Poor sanitary conditions were the main cause of infection. The lack of cleaning supplies in local clinics in South Africa is notconducive to the health of patients. By cooperating with the local health department, PMC donated toilet paper and othermaterials to community clinics to reduce disease transmission rate and promote the progress of local medical and healthservices.
20-26 March 2023 is the National Water Week of South Africa. Against this background, PMC called on all people to wear blue ribbons andparticipate in the challenge of donating bottled pure drinking water to help students in vulnerable rural schools do their best to promotelocal drinking water sanitation and safety.
Case
Case
PMC Reduced the Risk of Disease Transmission
PMC Launched the Activity of Donating Pure Drinking Water
PMC Donates Cleaning Supplies to Local Clinics
Promotion Poster for Donation of Pure Drinking Water
Despite all the di?culties we have experienced, we will forge ahead with courageand strive to create a more brilliant future. In 2024, we will closely follow thefootsteps of HBIS Group, with the strategic goal of "getting stronger in the field ofresources and achieving sustainable and healthy development" as our guide. We willcontinue to implement the principles of "localization" in three aspects, empower andenhance efficiency for the sustainable development of the Company, and become abuilder of a happy homeland and a guardian of the ecological environment. We willactively share the achievements of development with communities, and strive to createa beautiful pattern of harmonious coexistence among humanity, industry, wildlife andcultural heritage. We will establish a global corporate citizen image with strong feelings,high sense of responsibility and tangible actions.
Outlook for the Future
Appendix
HBIS RESOURCES CO.,LTD.
2023 Environmental, Social and Governance (ESG) Report
Appendix
Key performance
IndicatorUnit202120222023
Copper output10,000 tons
2.292.322.37Magnetite output10,000 tons
948.9859.7581.5Vermiculite output10,000 tons
15.017.216.9Total assets
CNY100million
139.8154.4158.7Operating revenue
CNY100million
65.6750.5358.67Income tax
CNY100million
7.873.266.13Net pro?t
CNY100million
13.016.669.12Attendance rate of shareholders to theGeneral Meeting of Shareholders
%100100100Percentage of independent directors%333333Percentage of female directors%111111Attendance rate of Board of Directorsmembers
%100100100Percentage of female executives%8810Number of supplier ESG appraisalsNo.
Number of training sessions onsuppliers
Time——3675Number of persons who receivedtraining from supplier
Person——5463Number of training sessions on suppliersocial responsibilities
TimeN/AN/AN/ACustomer satisfaction rate%100100100Number of customer complaintsTime
Rate of resolution of customercomplaints
%100100100Number of occurrences of product stoploss events
Time
Economic responsibilities
IndicatorUnit202120222023
Female employeesPerson527545585Proportion of female employees%20.4020.6721.26Employee turnover%4.154.833.28Number of people employed duringreporting period
Person128165235Coverage rate of physical examination%100100100Signing rate of labor contracts%100100100Coverage rate of social insurance(medical aid)
%5050100Coverage rate of social insurance(pension fund)
%12.512.5100Number of female managersPerson51013Proportion of female employees inmiddle management
%7.7917.0016.43Per capita paid vacationDay343434Investment in employee trainingCNY 10,0001,968.862,712.903,669.61Average training hours per capitaHour/person38.141.053.0Total hours of safety trainingHour26,75923,35641,239Coverage rate of work safety training%88.491.093.9Number of emergency drillsTime627669Number of work safety incidentsTime1,064770859Rate of special operations personnelwith a certi?cate for work
%3.864.063.94Investment in public welfare andcharity
CNY 10,0001,453.01949.011,917.43
Social responsibilities
Appendix
HBIS RESOURCES CO.,LTD.
2023 Environmental, Social and Governance (ESG) Report
Index of indicators
Primary titleSecondary titleGRI indicator
Guidelines on Corporate SocialResponsibility Reporting for ChineseEnterprises (CASS-ESG 5.0)
Foreword-
102-1/102-45/102-46/102-50/102-52/102-53/102-54/102-56
P1.1-1.3、G3.7Statement of the Boardof Directors
---Message from theChairman
-102-14P2.1、P2.2About Us
Company Pro?le102-1/102-2/102-3/102-4/102-7P4.1、P4.3Corporate Culture-P4.2Company Strategy-P4.2
Leadership Team102-22P4.4Honors-P2.2Performance in 2023--A2
Working together withInvestors to PromoteMutual Development
Governance enhancement102-10/102-18/102-23/102-24/102-25G1.1-1.2Integrity and compliance102-16/102-17/205-1/205-2/205-3/206-1G1.3、G1.5、G1.7、G1.9、G1.10Risk prevention and control102-11G1.11ESG governance
102-19/102-20/102-21/102-27/102-28/102-32/102-40/102-43/102-44/103-2
G3.1、G3.2、G3.3、G3.5、
G3.6Working together withEmployees to Build aBetter Future
Rights and interestsprotection
102-36/102-41/201-3/202-2/401-1/405/406-1/408-1/409-1
S1.1-1.9、V3.1-3.2Safety and health403S3.1-3.5、S3.8-3.12Growth promotion404/412-2S2.1-2.4Happy workplace-S1.10、S1.11Working together withPartners to AchieveMutual Bene?ts
Customer service416/418S4.1-4.8Responsible procurement204-1/414-1/414-2S5.1-5.6Cooperating with partners102-12/102-13/416-1/417/418S4.1-S4.6、V2.1-2.2、V2.4-2.8Making Arduous E?ortsfor EnvironmentProtection and GreenDevelopment
Green management307-1E1.1-1.4、E1.6Green operation201-2/301-1/302/303-1/305/306E1.8Ecological protection304-2/304-3E1.7Working together withthe Public to Create aHappy Life
Development facilitation-V3.3-3.6
Community service413-1V3.3Public welfare and charity415-1V3.4Outlook for the Future--A1Appendix
Key performance-A2Index of indicators102-55A4Rating report-A3Feedback-A5
IndicatorUnit202120222023
Investment in environmental protectionCNY 10,000—
292.02522.09
Non-fossil energy volume (Electricity)10,000 kWh47,074.0248,731.9645,428.92Total annual water consumption10,000 m
626.17676.06425.82
Fresh water consumption10,000 m
86.7989.2583.39Quantity of water saved10,000 m
25.26-49.89250.24Circulating water consumption10,000 m
3,986.403,935.793,388.66Wastewater discharge10,000 m
12.0016.0613.77Non-hazardous waste dischargesTon—792756Hazardous waste discharges10,000 tons—
96.082.1
Comprehensive utilization rate of solid waste%30.0829.4021.80Amount of waste recycledTon225233165Direct greenhouse gas emissions (scope I)t CO
eq58,18260,42365,131Indirect greenhouse gas emissions (scope II)t CO
eq460,337479,456470,872Volume of clean energy utilizationTon000O?ce power consumption10,000 kWh94.64101.4797.11
Environmental responsibilities
AppendixHBIS RESOURCES CO.,LTD.
2023 Environmental, Social and Governance (ESG) ReportRating reportFeedbackDear readers,Thank you very much for reading the Report. We attach great importance to and look forward to your feedback on the Report. Youropinions and suggestions are an important basis for us to continuously improve the level of ESG information disclosure and promoteESG management and practice. We sincerely thank you for your valuable opinions and suggestions!
1. Your overall assessment of our ESG performance is?
□ Excellent □ Good □ Average □ Below average □ Poor
3.How do you think we are doing in stakeholder communication?
□ Excellent □ Good □ Average □ Below average □ Poor
6.How do you think of our employee responsibilities?
□ Excellent □ Good □ Average □ Below average □ Poor
2.Your overall assessment of the Report is?
□ Excellent □ Good □ Average □ Below average □ Poor
5.How do you think we are doing in terms of environment, safety and occupational health?
□ Excellent □ Good □ Average □ Below average □ Poor
4.How do you think we are doing in terms of product liability?
□ Excellent □ Good □ Average □ Below average □ Poor
7.How do you think we're doing with community responsibilities?
□ Excellent □ Good □ Average □ Below average □ Poor
8.What are your opinions and suggestions on our performance of ESG and the Report?
You can contact us by:
Address: No. 385 Tiyu South Street, Shijiazhuang, Hebei, ChinaTel.: 0311-66500923E-mail: xgdsb@sina.com
Rating Report for2023 Environmental, Social and Governance(ESG)Report of
HBIS Resources Co., Ltd.
Upon the request of HBIS Resources Co., Ltd., the Chinese Expert Committee on CSR Report Rating invited experts to form a rating panel to ratethe2023 Environmental, Social and Governance (ESG) Report of HBIS Resources Co., Ltd. (hereinafter referred to as “the Report”).I. Rating BasisGuidelines on Corporate Social Responsibility Reporting for ChineseEnterprises (CASS-ESG 5.0)issued by the Chinese Academy of SocialSciences, andRating Standards for Corporate Social ResponsibilityReporting in China (2023)issued by the Chinese Expert Committeeon CSR Report Rating.
II. Rating Process
1. The rating panel reviews and confirms the
Confirmation Letteron Process and Accessibility Rating Materials of ESG Reportingandassociated materials submitted by the preparation team oftheReport;
2. The rating panel assesses the compilation process and contents
ofthe Report and prepares the rating report;
3. The vice chairman of the Chinese Expert Committee on CSR Report
Rating, the leader of the rating panel, and the expert of the ratingpanel jointly review and sign the rating report.III. Rating ConclusionProcess (★★★★☆)The Company has established an ESG Committee responsiblefor overseeing and guiding the effectiveness of the Company’senvironmental protection, social responsibility, standardizedgovernance, and other efforts, and offering opinions andsuggestions. The ESG members work under the leadership of theBoard of Directors and are accountable to the Board of Directors.The Reportis positioned as a crucial tool for compliance disclosureof performance information, enhancing ESG management, andstrengthening stakeholder communication, with clear functionalvalue positioning. It identifies substantive responsibility issuesthat are of practical concern to all stakeholders and hold greatsignificance to the Company’s development in conjunction withtheir respective business areas.The Reportis presented in electronic,paper, and other formats, featuring leading process performance.Materiality (★★★★★)The Reportsystematically discloses the key issues of the industry,such as improving ESG governance, serving national strategies,reducing emissions of “three wastes”, coping climate change,implementing safe production and sustainable supply chain. It isdetailed and has excellent materiality performance.Completeness (★★★★)The main contents ofthe Reportsystematically disclose 76.33% ofthe core indicators of the industry from the perspectives of “Workingtogether with Investors to Promote Mutual Development”, “WorkingTogether with Employees to Build a Sustainable Future”, “Workingtogether with Partners to Achieve Mutual Benefits”, “Making ArduousEfforts for Environment Protection and Green Development” and“Working together with the Public to Create a Happy Life”, whichshow good completeness.Balance (★★★★☆)The Reportdiscloses negative data information such as “number ofwork safety incidents”, “number of customer complaints”, “numberof lost time injury (LTI)” and “lost time incident frequency (LTIFR)”,showing leading balance performance.Comparability (★★★★★)The Reportdiscloses the comparative data of 49 key indicators forthree consecutive years, such as “Attendance rate of shareholders
to the General Meeting of Shareholders”, “proportion of independentdirectors”, “number of female employees” and “total annual waterconsumption”. Through horizontal comparison with the honorarytitle of “Top Employer in South Africa 2024”, showing excellentcomparability performance.Readability (★★★★☆)The Reportsystematically shows the actions and results of theenterprise to fulfill its responsibilities for stakeholders such asinvestors, employees, partners, environment and communitiesfrom five chapters, and responds in detail to the expectations anddemands of stakeholders. The cover design integrates the localcharacteristic elements of South Africa and forms a picture togetherwith the report covers of the Group and other listed companies toenhance the recognition of the Report. The high-definition largeimages that fit the theme are selected for chapter pages, whichenhance the appeal ofthe Report.By presenting the effectivenessof enterprise responsibility fulfillment from a third-party perspective,the credibility of the Report is strengthened, demonstrating leadingperfomance in terms of readability.Accessibility (★★★★☆)The Reportis the fourth social responsibility report andenvironmental, social and governance (ESG) report issued by HBISResources. It will be published on the website of the Shenzhen StockExchange and its designated website (www.cninfo.com.cn) withinone month from the release time of the Annual Report, and relevantnews reports will be released through the company’s official website,industry media and other channels to enhance the disseminationbreadth of the report.The Reportis available through channels suchas web search, which improves the ease of access to the Report anddemonstrates leading accessibility performance.Overall Rating (★★★★☆)According to the assessment of the rating panel, the2023Environmental, Social and Governance(ESG)Report of HBIS ResourcesCo., Ltd. is awarded a four-and-a-half rating. It is a leading ESGreport.IV. Improvement Suggestions
1. Increase the disclosure of core indicators relating to the industry to
further improve the completeness ofthe Report;
2. Further enhance the building of ESG responsibility system and
management system;
3. Increase the disclosure of negative data and negative event
analysis to improve the balance ofthe Report.
Vice Chairman of the Chinese ExpertCommittee on CSR Report Rating
April 23, 2024
Scan the QR code to learnmore about the corporaterating reportLeader of theRating Panel
Expert of theRating Panel