Dazhong Mining Co., Ltd.
Environmental, Social,and Governance (ESG) Report
2024
Tel：0472-5216664Email：info@dzky.cnAddress：No. 55, Huanghe Street, Baotou City, Inner Mongolia Autonomous Region
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About this ReportChairman’s Message2024 Sustainability Highlights
Future OutlookAppendixIndex Form 141
Feedback Form
Special Focus (I)Accelerating Lithium Mine Constructionto Pioneer a New Chapter of DevelopmentSpecial Focus (II)Advancing Energy Efficiency andConsumption Reduction to Forge anEco-Development Engine
Content
Sound Governance:
Responsibility for Governance
Party Building as the Guiding PrincipleStandardize Corporate GovernancePrevention and Control of Compliance RisksInvestor Rights ProtectionAdherence to Business Ethics
Green Mines:
To be a Green Pioneer
Climate Change ResponseEnvironmental Protection andPollution PreventionCircular Economy andResource UtilizationGreen Mines and EcologicalConservation
Smart Mines:
Innovative Development for Win-Win
R&D and InnovationInformation Security and Privacy ProtectionResponsible Supply Chain Management
Safe Mines:
To Be a Safety Benchmark
Product & Service Safety and QualityProduction Safety and Occupational Health
Humanistic Mines:
To Be a Social Duty BearerTalent Recruitment and DevelopmentFulfilling Social Responsibility
Introduction of Dazhong MiningSustainable Development Management
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About this ReportReport IntroductionThis report is the second ESG report publicly released by Dazhong Mining Co.,Ltd.The report adheres to the principles ofobjectivity,standardization, transparency, and comprehensiveness. It details the continuous efforts and achievements of DazhongMining Co.,Ltd. and its subsidiaries in actively addressing sustainability opportunities and challenges during 2024,integrating ESGdevelopment into corporate management,and responding to the concerns of stakeholders to achieve mutual development.
In this report, for ease of expression and reading, Dazhong Mining Co., Ltd. is referred to as “Dazhong Mining,” “the Company,”or “we” depending on the context. For details, please refer to the 2024 Annual Report of Dazhong Mining Co., Ltd.
Reporting Scope
This report focuses on Dazhong Mining Co.,Ltd.,with relevant sections covering its subsidiaries.Unless otherwise specified,thescope of this report aligns with the company’s annual report.
Data SourceThe data sources used in this report include original data from the Company’s operations, publicly available data fromgovernment departments, annual financial data, internal statistical reports, third-party questionnaires, and third-party evaluationinterviews. The financial data in this report is denominated in RMB. In case of any discrepancies with the financial report, thefinancial report shall prevail.
Abbreviations
Report Availability
Reporting PeriodReporting Period: January 1 to December 31, 2024.To improve the report’s comparability and forward-looking aspect, certainexpressions and data have been appropriately traced back in time and extended.
Reporting Standards?? jointly released by the Ministry of Finance and other departments?China Enterprise Reform and Development Society: ? by the Global Reporting Initiative?United Nations Sustainable Development Goals (SDGs)
Contact Person:Lin Puzheng (Board Secretary)Contact Address:No. 55,Huanghe Street,Baotou City,InnerMongolia Autonomous Region,Dazhong Mining Co.,Ltd.
Company Website: http://www.dzky.cnEmail Address: info@dzky.cnContact Number: 0472-5216664
Feedback
This report was approved by the Company’s board of directors on April 18, 2025, and was released concurrently with the annualreport. The board of directors is committed to supervising the content of this report, ensuring that it contains no false records ormisleading statements, and takes responsibility for the authenticity, accuracy, and completeness of the content.
Confirmation and Approval
This report is published in electronic format, available in both Chinese and English versions. In case of any discrepancies orconflicts between the two languages, the Chinese version shall prevail. You can download the electronic version of this reportfrom the Shenzhen Stock Exchange (http://www.szse.cn), the Company’s official website (http://www.dzky.cn), and the CNINFOwebsite (http://www.cninfo.com.cn) to access more information about company.
If you have any questions or valuable suggestions regarding the content of this report, please feel free to contact us through thefollowing channels.
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About this Report
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Chairman’s Message
Dear Shareholders, Partners, Employees, and Friends from All Sectors of Society:
The year 2024 marks a crucial period for global green transformation and represents a significant year for Dazhong Mining to deepen ESGpractices and promote high-quality development. Confronted with a complex and ever-changing economic landscape and industry challenges, wehave remained steadfast in our corporate mission of “developing mining resources for the benefit of society” and adhered to the developmentphilosophy of “green mines, responsible enterprise.” We have comprehensively advanced the construction of our Environmental, Social, andGovernance (ESG) system, delivering impressive sustainable development achievements.
Adhering to Green Development: Building a New Benchmark for Ecological MiningWe fully recognize that sustainable mining development must progress in harmony with ecological conservation. Dazhong Mining resolutelyimplements the national “dual carbon” strategic goals, integrating ecological and environmental protection concepts throughout the entire processof mine construction and production operations, fulfilling our green development commitments with concrete actions.We have achieved remarkable results in green mine construction and mining area ecotourism development. Zhouyoufang Iron Mine was awardedthe title of National Green Mine for its outstanding environmental governance and green development practices. Both the Jinrisheng MiningCultural Park and Inner Mongolia Dazhong Mining Industrial Tourism Zone have been rated as AAA-level industrial tourism sites. Currently, we aremaking every effort to develop the lithium mining bases in Hunan and Sichuan into AAAA-level scenic mining areas. This innovative model hasbecome an industry exemplar, providing successful experience for the harmonious coexistence of mining and ecological environment.In 2024, adhering to the principle of “respecting nature and prioritizing environmental protection,” Dazhong Mining invested RMB 115.1275 millionin special funds to establish a comprehensive ecological protection system. By deploying intelligent dust removal equipment and dynamic fogcannon systems, we built a three-dimensional protection network that ensures exhaust gas emissions meet standards and significantly reducesdust concentration in mining areas. Through technological innovation and process improvements, we established a complete waste classificationand disposal system, achieving 100% safe disposal of solid waste and “zero discharge” of wastewater. In terms of clean energy application, weutilized 26.667 million kWh of photovoltaic power generation for mining area electricity supply. Combined with measures such as “peak shavingand valley filling” power scheduling and energy-saving equipment upgrades, we saved a total of 3,277.37 tons of standard coal and reducedcarbon dioxide emissions by 21,893.61 tons, fulfilling our solemn commitment to green development through technological innovation.
Innovating Governance Systems: Strengthening the Foundation for Sustainable DevelopmentA sound governance system is the fundamental guarantee for healthy corporate development. In 2024, under the guidance of the Strategy andSustainable Development (ESG) Committee, Dazhong Mining established a top-down ESG management framework and incorporated ESGindicators into the performance evaluations of senior executives. Meanwhile, we have optimized our corporate governance structure, giving fullplay to the core role of the Board of Directors. Throughout the year, we held 5 shareholders’ meetings, reviewing and approving 31 proposals, andconvened 13 board meetings, reviewing and passing 46 proposals, fully demonstrating the efficiency, standardization, and effectiveness of ourcorporate governance.Fulfilling Social Responsibilities: Creating a New Landscape of Shared Development
Looking Ahead: Dazhong Mining Will Anchor Itself to the Goal of Becoming a“World-Class Green Mining Enterprise” and Focus on Advancing Three Strategic Tasks:
We firmly believe that a company’s value is reflected not only in economic performance but also in its commitment to social responsibility. Overthe past five years, the Company has donated nearly RMB30 million in total, including RMB7.91 million in various donations in 2024, coveringpublic welfare areas such as education assistance, sports development, and flood relief. We were honored with the 2024 Outstanding Contributionto Public Welfare Award by the Bayannur Charity Federation, among other accolades.In terms of employee care, we established diversified career development channels, achieved full coverage of employee training, and increasedthe proportion of female employees to 13%, creating an excellent environment for professional growth.Regarding supply chain management, we took the lead in integrating ESG standards into supplier access and evaluation systems, driving morethan 500 upstream and downstream partners to jointly build a responsible industrial chain, ensuring the sustainability and stability of the supplychain.
Enhancing Governance Effectiveness: Strengthening the foundation of modern corporate governance, improving ESG strategy implementation, andcultivating management teams with both mining expertise and ESG vision.Deepening Low-Carbon Transition: Accelerating the carbon neutrality process, expanding the application of clean energy, and continuouslyupgrading energy-saving equipment.Strengthening Responsibility: Giving back to society through public welfare initiatives, gathering strength through sustained actions, and makinggreater contributions to social development.Though the road is long, perseverance will lead us to the destination; though the task is difficult, determination will ensure success. DazhongMining will adhere to the development vision of “employee recognition, industry leadership, and social respect,” remain true to our originalaspiration, strive for innovation, and endeavor to build a mining model that stands the test of time. Let us join hands to paint a new picture ofharmonious coexistence between mining and nature! Let us work together to create a bright future of green and sustainable development for themining industry!
Chairman of Dazhong Mining Co., LtdGuofeng Niu
“
”
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Chairman’s Message
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
2024 Sustainability Highlights
FinancialPerformance
EnvironmentalProtection
CorporateGovernance
Operating Revenue3,842.7909
million yuan
Total Assets15,416.8180million yuan
Net Profit Attribute to ParentCompany Shareholders
751.2620
million yuan
Total Tax Paid
745.5670
million yuan
Numbers of Shareholders’Meetings Held
5times
Number of SupervisoryBoard Meetings Held8times
Number of BoardMeetings Held
13times
Internal Risk Training
5timesA total of186 announcements and related documents were disclosed externally,with 0 penalties received for violations in information disclosure.
Awarded TOP300 Most Popular Listed CompanyAwarded the 75th place in the 2024 Inner Mongolia Top 100 Private EnterprisesAwarded the 9th “Times Finance Golden Orange Award” - High-QualityDevelopment Listed CompanyAwarded the 2023 Bayannur City “Safe Enterprise” Construction Advanced CollectiveSelected as one of the Top 50 Chinese Metallurgical Mining Enterprises in 2023,ranking 13th
Environmental protection investment
115.1275million yuan
Total Energy Consumption63,700.65tceEnergy consumption intensity
16.58tce/million yuan
Total photovoltaic power generation2,666.70million kWhGreenhouse gas emissions242,892.87tCO2e
Environmental protection inspection36times
Photovoltaic power generation reducescarbon dioxide emissions
21,893.61tCO2e
One National-levelGreen Mine
Greenhouse Gas Emission Intensity
63.21 tCO2e/million yuan
Research andDevelopmentInnovation
Total number of R&D personnel
436people
Research and developmentinvestment
132.8222million yuan
Cumulative number ofauthorized patents
380items
Proportion of R&D personnel
11 .53%
R&D investment as apercentage of operating income
3.46%
Year-on-year growth inauthorized patents
97items3 National High-Tech Enterprises, 1CNAS-Accredited Laboratory (National Certification), and2 Provincial-level Enterprise Technology Centers.
Dazhong Mining has alreadyobtained the autonomousregion-level “Enterprise R&DCenter” and “EnterpriseTechnology Center”No intellectual propertyinfringement lawsuits or legaldisputes
SafetyProduction
Safety production investment
154million yuan
Number of participants insafety education
37,688person-times
Qualification rate of safetyhazard rectification
100%
Number of safety educationand training sessions
965times
Safety production accidents
0case
Coverage rate of occupationalhealth check-ups
100%
EmployeeCare
Total number ofemployees
3,780people
Social insurancecoverage rate
100%
Total number ofparticipants in training
1,339sessions
Total number oftrainees received
37,418person-times
Basic employeewelfare expenditure
16.0836
million yuanLabor contract signing
100%
New employees
1,434people
Total duration ofemployee training24,958hours
Average duration ofemployee training
6.6hours
Employee satisfaction
100%
SocialWelfare
Total social welfareinvestment
7.91million yuan
Number of participationin public welfare activities
11times
No inquiries, notifications, orpenalties occurred due to violationsof anti-corruption, anti-extortion,anti-fraud, or anti-moneylaundering laws and regulations,and no employee corruptionincidents occurred.
Zhouyoufang Iron Mine: Has obtained national-level greenmine certificationChongxinji Iron Mine: Has obtained Anhuiprovincial-level green mine certificationThe Iron Ore Culture Park of Jinrisheng Mining and theIndustrial Tourism Scenic Area of Dazhong Mining havebeen rated as national 3A-level tourist attractions
During the reporting period, the company'senvironmental protection equipment and facilitiesoperated normally, environmental protection effortsadvanced in an orderly manner, and there were noincidents of significant impact on the company'sproduction and operations due to environmental issues.
Awarded the title of Advanced Enterprise for “Caring for Tomorrow,Donating to Support Education”Awarded the 2024 Outstanding Contribution to Public Welfare and Charityby the Bayannur Charity FederationMr. Lin Pusheng, Director and General Manager of the Company, wasawarded the honorary title of ‘Outstanding Individual in Caring forTomorrow, Donating to Support Education.’01 02 03 04 05 06 07 08 09 10 11 12
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2024 Sustainability Highlights2024 Environmental, Social, and Governance (ESG) Report
Dazhong Mining Co., Ltd.
Introduction ofDazhong Mining
Company Profile
Dazhong Mining Co., Ltd. (hereinafter referred to as “Dazhong Mining”, stockcode: 001203) was formerly known as Inner Mongolia Dazhong Mining Co., Ltd.,established on October 29, 1999, and was transformed into a joint-stockcompany on May 29, 2009. The Company was officially listed on the mainboard of the Shenzhen Stock Exchange on May 10, 2021. The Company’sheadquarters is located in No.55 Huanghe Street, Baotou City, Inner MongoliaAutonomous Region.The Company is in the solid mineral resource mining and processing industry,with its main business being iron ore mining and processing, iron concentrateand pellet production and sales, and by-product manufactured sand andsulfuric acid processing and sales. The main products are iron concentrate andpellets. The Company has two major iron ore production bases in InnerMongolia and Anhui, with rich mineral resource advantages and years ofaccumulated mining and processing technology advantages, making it alarge-scale iron ore mining and processing enterprise in China.Under the national strategy of “Carbon Peak, Carbon Neutrality”, the Company,while firmly developing its main iron ore business, responded to the nationalstrategic call and began to enter the lithium mining industry, known as “whiteoil”, in 2022 as a new profit growth point. Through proactive expansion into thelithium mining industry, the Company has acquired two major resources: theHunan Jijiaoshan Lithium Mine and the Sichuan Jiada Lithium Mine, which willprovide a solid resource guarantee for the Company’s lithium battery industryprojects. In the future, as the Company’s iron ore mining capacity graduallyreaches full production and the lithium mining project is put into operation, theCompany’s industry status will be further enhanced.
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Introduction of Dazhong Mining
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Industrial LayoutEnterprise Culture
To be a mining group recognized byemployees, well-known in the industry,and respected by the society.
Conquer difficulties and operatewith innovation
Team first, talent second
Unswervingly support the leadership of the Communist Party of China,and actively respond to General Secretary Xi’s call for the realization ofthe great rejuvenation of the “Chinese Dream”, and work hard for it.Nature first,environmentalprotection first
Life first,safety first
Common wealth is theoriginal aspiration ofDazhong Mining
Buoyed by the rise of the“Belt and Road” Initiative tobuild a century-long greaterChina mining company
Main business:Iron Ore Mining and Processing
Iron ore reserves filed with the Ministry of NaturalResources: 690 million tons.
Pyrite retained resource reserves: 70.8541 million tons.
Entered the lithium mining sector for new energy applications in 2022.
Acquired two major lithium resources in 2023.Accelerated full-scale project development in 2024.
The resource reserves have passed approval of the lithium oreprocessing plant has been granted land use rightsand completed site leveling works; the smeltingprocess has been continuously optimized, achievingbreakthroughs in key challenges such as meetingenvironmental compliance standards for lithiumslag and improving recovery rates.
The exploration engineering has been completedand the exploration report has been submitted to for review; shieldmachines are continuously excavating to achievethe breakthrough of the mining-processingconnection tunnel; extensive testing has identifiedthe optimal process flow.
Two Major Iron Ore Production Site
安徽
Iron Ore Business
Reserve Advantages
Hunan Jijiaoshan Lithium MineSichuan Jiada Lithium Mine
Expanding into new energy mineral resources and developinglithium mining operations for the new energy sector.
Enterprise SpiritEnterprise Culture
Enterprise Mission
Enterprise ObjectivesPersist in industry andstay true to the originalaspiration
Adhering to the innovationdrive, innovatingmanagement and businessmodels, and leading thedigitalization and upgradingof industries
Adhering to processreengineering with aninternet-driven mindset tocontinuously improvecorporate managementmodels.
Adhering to assetsecuritization, leveragingcapital and feedingindustry
InnerMongolia
Anhui
Development Vision
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Introduction of Dazhong Mining
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Strategy Positioning
Development History
Endogenous growth strategyExogenous expansion strategyBased on iron, with the chain as the vein, relying on existing iron ore resources, focusing on “quality improvement, productionincrease, cost reduction, and efficiency enhancement”; integrate resources, deepen and thicken, build a high-value life cycle ofiron ore, achieve stable growth in net operating cash flow and key financial performance, and establish a benchmark forefficiency in the private iron ore industry.
Invest in and acquire high-quality resources domestically and internationally to expand iron ore reserves; continue to deepen thelithium ore new energy industry, opening a second growth curve. Dual-wheel drive, consolidating the leading position in theprivate iron ore industry, and building a highly competitive new energy lithium ore enterprise.Strategically layout high-value core minerals such as gold and copper, continuously expand the resource map, achieve astrategic upgrade from “single-point breakthrough” to “dual-wheel drive”, and ultimately build a “multi-polar coexistence”three-dimensional development pattern.
1999
2009
2021
2022
2023
2023
2024
Inner Mongolia Dazhong Mining Co., Ltd.
Overall change to establish InnerMongolia Dazhong Mining Co., Ltd.
Officially listed on the main board ofthe Shenzhen Stock Exchange
Public issuance of convertiblecorporate bonds
Auctioned to obtain the controlling stake ofChenzhou City Chengtai Mining Company,thereby controlling the lithium-containingpolymetallic mineral resources in theJijiaoshan mining area of Linwu County,officially entering the lithium ore newenergy industry
Auctioned to obtain theexploration rights ofthe Jiada Lithium Minein Sichuan
The first mining area of theJijiaoshan Lithium Mine in LinwuCounty passed the reservereview and filing
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Introduction of Dazhong Mining
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Honors and Qualifications
Dazhong Mining won the 9th “TimesFinance Golden Orange Award” forhigh-quality development listed
companies.
Dazhong Mining wasrecognized as one of the
TOP 300 Most Popular
Listed Companies.
Dazhong Mining was ranked 75th
in the 2024 Inner Mongolia Top100 Private Enterprises.Jinrisheng Mining won the title of“Top Ten Mines” in the 8thMetallurgical Miningt
Jinhui Rare Earth was
recognized as ahigh-tech enterprise.
Dazhong Mining receivedthe lithium battery newenergy industrydemonstration project.
Hunan Dazhonghe wasselected as a keyconstruction project inHunan Province.Jinrisheng Mining was honoredwith the title of “2024High-Quality Iron ConcentrateSupplier in Southern China”
Dazhong Mining was recognizedas one of the first batch ofhigh-tech enterprises in 2023.Dazhong Mining was awarded thetitle of “Advanced Collective in theConstruction of Safe Enterprises” inBayannur City for 2023.
Company Honors
Association Qualifications
Jinrisheng Mining was awardedthe title of “Outstanding IndustrialEnterprise of Lu’an City and
Huoqiu County in 2023”.
Dazhong Mining was ranked 13th
in the 2023 China MetallurgicalMining Enterprises Top 50 List.
Member unit of the ChinaMetallurgical Mines Association
Member unit of the ChinaNonferrous Metals Industry
Association
Member unit of the China
Mining Association
Member unit of theChina Sand and Gravel
Association
Member unit of theUrad Front Banner
Trade Union
Vice President unit of theUrad Front BannerEntrepreneurs Association
证券代码：001203
证
券简称：大中矿业
| 证 | 公 |
告编号：2025-003债券代码：127070
券简称：大中转债
| 债 |
大中矿业股份有限公司关于全资子公司通过高新技术企业认定的公告
本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导性陈述或重大遗漏。2025年1月2日，国家“高新技术企业认定管理工作网”发布了《对内蒙古自治区认定机构2024年认定报备的第三批高新技术企业进行备案的公告》，根据《高新技术企业认定管理办法》（国科发火〔2016〕32号）和《高新技术企业认定管理工作指引》（国科发火〔2016〕195号）有关规定，大中矿业股份有限公司全资子公司内蒙古金辉稀矿有限公司（以下简称“金辉稀矿”）被列入内蒙古自治区认定机构2024年认定报备的第三批高新技术企业备案名单，具体内容如下：
序号
公司名称 证书编号 发证日期
1 内蒙古金辉稀矿有限公司 GR202415000342 2024年12月7日
本次系金辉稀矿首次被认定为高新技术企业。根据《中华人民共和国企业所得税法》等有关规定，金辉稀矿自获得高新技术企业认定后的连续三年内，将享受高新技术企业所得税优惠政策，即按15%的税率缴纳企业所得税，上述税收优惠政策将对金辉稀矿后续的经营业绩产生一定的积极影响。
特此公告。
大中矿业股份有限公司
董事会2025年1月3日
Member unit of theAll-China Federationof Trade Unions
Honors and Qualifications
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Introduction of Dazhong Mining
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Individual HonorsESG-related Honors
Jinrisheng Iron Mine Cultural Park and InnerMongolia Dazhong Mining Industrial TourismZone were awarded 3A-level national tourist
attractions
Lin Puzheng won the “Best BoardListed Company Secretary” award at
the China Listed CompaniesReputation Awards.
Ma Shumin was awarded the
title of “Female Model” in
Bayannur City.Lin Puzheng wasrecognized as one of theTOP 300 Most PopularCompany Secretaries.
Zhang Jie, the head of Jinrisheng Mining,
was awarded the title of “Top Ten Mine
Directors”.Dazhong Mining was awarded thetitle of “Healthy Enterprise” inBayannur City.
Dazhong Mining was awarded the2024 Outstanding Contribution toPublic Welfare and Charity by the
Bayannur Charity Federation
Dazhong Mining Industrial Tourism Areawas selected as the 2022 Inner MongoliaAutonomous Region SciencePopularization Demonstration Base
Liu Qiuli was awarded the title of“Female Model” in Urad Front
Banner.
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Introduction of Dazhong Mining
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Sustainable Development ManagementDazhong Mining actively practices sustainable development governance, integrating ESG governance into the Company’sdevelopment and operation processes, actively undertaking social responsibilities, and creating lasting positive impacts on societyand the environment by building “Five-Dimensional Mines”—green mines, scenic mines, smart mines, safe mines, and humanisticmines, thereby creating sustainable long-term value.
To further improve the corporate governance structure, enhance the scientific decision-making of the board of directors, andimprove the Company’s environmental, social, and governance (ESG) performance, the Company has established an ESGmanagement framework led by the board of directors, with a Strategy and Sustainable Development (ESG) Committee under theboard of directors, responsible for promoting the Company’s medium- and long-term development strategies, major investmentdecisions, and ESG-related matters.
ESG Governance Mechanism
Board ofDirectors
Strategy and SustainableDevelopment (ESG) Committee
Audit Committee
NominationCommittee
Remuneration andAssessment Committee
ESG Working GroupHeads of variousfunctional departments
Subsidiaries
HR DeptSecurities DeptDevelopmentPlanning CenterParty Affairs &Administration DeptSafety & EnvironmentalProtection DeptManagementControl DeptTendering &Procurement DeptJinrisheng MiningHunan DazhongheSichuan Dazhonghe
......
Decision-making Layer
Management Layer
Execution Layer
Decision-making Layer
Management Layer
Strategy and Sustainable Development (ESG) Committee
Committee Responsibilities
Research and provide recommendations on the Company’s medium- and long-term development strategy planning;Review and supervise ESG matters, including goals, planning, policy formulation, organizational implementation, riskassessment, performance, information disclosure, and report to the board of directors;Review the Company’s ESG report and other ESG-related information disclosures to ensure the completeness andaccuracy of the ESG report and other ESG-related disclosures;Inspect the implementation of the above matters.
ESG Working Group
Led by the Board Secretary,overseen by the Securities DepartmentComprehensively coordinate, guide, and implement the ESG strategies, goals, and plans formulated by the board ofdirectors and the Strategy and Sustainable Development (ESG) Committee;ESG-related work assigned by various committees under the board of directors.
Execution LayerHeads of various functional departments and subsidiaries
Strictly adhere to the Company’s ESG strategy, goals, and plans, integrating ESG work into daily operations forimplementation.
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Sustainable Development Management2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
CorporateGovernance
Green Mines /Scenic Mines
Smart Mines
Safe Mines
HumanisticMines
Responsibility for Governance: Building agovernance structure of “Three Boards andOne Layer,” establishing and continuouslyimproving the governance system, adheringto the Party’s leadership, focusing on mainbusiness development, protecting investorrights, enhancing investor communicationand interaction, improving informationdisclosure transparency, and upholding thebottom line of business ethics.
Actively responding to the national “Dual Carbon” goals,comprehensively advancing carbon reduction and emissionreduction through energy-saving and consumption-reducingupgrade measures;Strengthening the environmental management system, reducingwastewater, exhaust gas, and solid waste emissions or resourceutilization through technological innovation and the improvementof environmental protection facilities;Enhancing energy utilization efficiency and reducing waterresource consumption by promoting circular economyconstruction and lean management;Formulating a mid-term plan for green factories, advancing greenmine certification, with Zhouyoufang Iron Mine already obtainingnational-level green mine certification; Chongji Iron Mine hasalready obtained provincial-level green mine certification in Anhui;Introduce fully mechanized equipment, such as Epiroc loadersand Simba drill rigs, to improve the efficiency of miningoperations;By building an intelligent scheduling and control platform, usinghuman-machine interfaces and real-time video for command andcontrol, thereby enhancing production and operational efficiency;Introduce intelligent inspection robotic dogs to achieveautomated and intelligent inspection of key facilities andequipment;
To Be a Safety Benchmark: Adhere to thesafety philosophy of “Cherish life, safety first,”uphold the operational purpose of safeproduction, deeply embed safety concepts,safety thinking, safety mindset, safetyknowledge, and safety skills into thecorporate culture, and reflect them inoperations; By increasing safety investments,achieve mechanization to replace humanlabor, informatization to reduce human labor,and enhance intrinsic safety; Build a safetymanagement system, use intelligent meansand systematic management to improvesafety levels.
To Be a Responsible Employer: Adhere to thepeople-oriented philosophy, develop togetherwith employees, focus on employee training,support employee growth, activate employeemotivation, create and share value withemployees, while creating good workingconditions and atmosphere, care foremployees’ lives, solve employees’ difficulties,and build a happy mining community.To Be a Social Duty Bearer: Adhere tocommon prosperity, continuously explore andinnovate development models for commonprosperity, promote the joint development ofenterprises and communities, and regionalprosperity, serve national strategies such asthe “Belt and Road,” actively respond topublic welfare responsibilities, anddemonstrate corporate social responsibility.
Adhere to the principles of equal and lawfulemployment, prohibit any discrimination involvinggender, age, race, ethnicity, religion, nationality, etc.,in the recruitment process, and prohibit therecruitment of child labor, illegal employment, andforced labor;Actively recruit talents through various means,advocate democratic management, actively collectand feedback employee opinions and needs, and fullyprotect employee rights;Establish a comprehensive employee training system,providing employees with clear career developmentpaths;Through continuous employee care, providingassistance to employees in need, and other measures,continuously improve employee satisfaction andhappiness index, and build a mining group that istruly recognized by employees;Take proactive corporate responsibility, actively giveback to society, support disaster relief, conducteducational donations, contribute to ruralconstruction, assist farmers with love, and servenational strategies such as the “Belt and Road”.
To be a Green Pioneer: Respecting nature,conforming to nature, protecting nature, fullyimplementing the green mine developmentstrategy, and striving to build atourism-oriented mine. Integrating ecologicalconstruction responsibility and environmentalprotection awareness into the Company’sproduction structure and methods.
Innovative Development for Win-Win: Closelyfocusing on the development goals ofmechanization, automation, informatization, andintelligence, introducing new technologies andmodels through integrated development,embedding the “Digital and Intelligent” minedevelopment concept throughout the entireprocess of mineral resource development andutilization, while striving to build a “FourModernizations” smart mine with Da Zhongcharacteristics, creating a new model of safe,efficient, green, and sustainable miningdevelopment, leading the Company’s high-qualitydevelopment.
Progress on ESG Strategy and Goals
The Company is actively promoting comprehensive progress in environmental, social, and governance (ESG) aspects, integratingits core concepts into the Company’s strategic blueprint to achieve sustainable development goals. Our strategic focus is closelyaligned with the “Five-Dimensional Mine” concept, specifically covering the following aspects:
Strategic Positioning and Goal DirectionCompany Actions in 2024
Benchmarking Against UNSustainable Development GoalsContinuously improving the “Three Boards and One Layer”governance structure, strictly standardizing the operation ofthe three boards;Effectively safeguarding investor rights by strengtheninginvestor communication, implementing cash dividends,share buybacks, and increasing holdings;Effectively safeguarding investor rights by strengtheninginvestor communication, implementing cash dividends,share buybacks, and increasing holdings;Formulating the clarifying responsible departments,and strengthening anti-corruption management.
Further improve the series of safety productionsystems and strengthen the safety productionresponsibility system;Strengthen safety culture construction, conduct 122safety emergency drills, 965 safety education andtraining sessions, with 37,688 participants;Invest 154 million yuan in safety production, achievingfull-process automated control from mining to tailingsprocessing and auxiliary systems, further enhancingsafety management levels;
Strategic Positioning and Goal DirectionCompany Actions in 2024
Benchmarking Against UNSustainable Development Goals
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Sustainable Development Management
2024 Environmental, Social, and Governance (ESG) Report
Dazhong Mining Co., Ltd.
ESG Risk Management
Stakeholder Communication
Dazhong Mining continuously explores integrating ESG concepts intocorporate risk management and decision-making processes,strengthens the Company’s control over non-financial risks, andimproves systems including environmental management, safetymanagement, talent management, supplier management, and corporategovernance, identifying, assessing, and analyzing various internal andexternal risks, covering climate change, environmental management,product quality control, employee rights protection, etc., to ensureeffective risk management and promote the overall sustainabledevelopment of the Company.
Dazhong Mining looks forward to establishing a long-term and mutually trusting working mechanism with stakeholders, places highimportance on communication with stakeholders, and continuously pays attention to their demands and expectations. During thereporting period, the Company actively responded to the expectations and demands of stakeholders.
Dazhong Mining carefully analyzes the groups that may be affected by the Company’s business decisions, including individuals,departments, and institutions, and identifies shareholders and investors, customers, employees, communities, governments, andregulatory bodies as the Company’s stakeholders, placing high importance on their opinions and suggestions.
In September 2024, Dazhong Mining, in collaboration with external experts,organized the for variousfunctional departments. This training thoroughly analyzed the Company’s ESGmanagement and practices in 2023, helping the Company identifyshortcomings in ESG work, enhancing the understanding and recognition ofESG concepts across departments, and providing direction for the optimizationand improvement of the Company’s future ESG efforts.
ESG Training and PromotionDazhong Mining attaches importance to the implementation of the ESG management system, continuously improves the ESG trainingsystem, and enhances employees’ policy awareness and management capabilities for sustainable development. During the reportingperiod, the Company invited industry experts and organized 5 ESG-related training sessions, with more than 50 participants.
Stakeholder Identification
The Company adheres to the principles of “integrity, interaction, equality, and transparency” to maintain regular communicationwith stakeholders, continuously deepens stakeholder communication strategies, comprehensively collects demands andsuggestions around substantive issues, and incorporates the concerns of stakeholders into the Company’s strategicdecision-making, enabling effective participation of stakeholders in the Company’s sustainable development governance.
Stakeholder Communication Channels
ESG RiskManagement
Structure
CorporateGovernanceManagement
SystemSupply ChainManagement
System
Human ResourceManagement
System
QualityManagementSystem
EnvironmentalManagement
System
SafetyManagement
system
Conducted ESG governance diagnostic enhancement training
Shareholdersand Investors
Customers
Employees
Government orregulatoryauthoritiesPartnersCommunity andPublic Welfare/SocialOrganizationsNaturalEnvironment
Media
?Ore Quality?Maintaining Good Cooperation?Providing High-Quality
Product Services
?After-sales Service?Group Website and Email?Customer Symposium?Satisfaction Survey?Employee Rights Protection?Compensation and Benefits?Occupational Health and Safety?Improving Career Development Channels?Comprehensive communication channels
?Staff congress?Symposium?Company visits and condolences?Employee satisfaction survey?Legal and compliant operations?Promoting economic development?Tax Compliance?Undertaking social responsibilities
?Information disclosure platform?Visits and information reporting?Government Research?Business Ethics?Integrity and Win-Win?Accurate Information
?Daily Communication?Supplier Training?Industry association activities?Supporting community development?Regional economic development?Attention to vulnerable groups
?Public welfare and charitable activities?Volunteer Service?Cultural Exchange?Promotion and Visits?Climate Change?Water Resource Management?Biodiversity?Emission Management
?Mining Area Construction?Environmental protection cooperation?Environmental protection publicity?Establish ESG as brand reputation
?Public media platform?Media Meeting
StakeholdersDemands and ExpectationsCommunication Channels
?Protecting Shareholder Rights?Risk Resistance?Steady Operation?Accurate Information Disclosure
?Shareholder
Returns
?Investor Service
Hotline and Email
?Shareholders’ Meeting?Interactive Platform
?On-siteInvestor Research?Earnings
Conference
Case Study
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Sustainable Development Management
2024 Environmental, Social, and Governance (ESG) Report
Dazhong Mining Co., Ltd.
The Company has established a comprehensive process for assessing material issues, analyzing and identifying key issues basedon the latest exchange disclosure guidelines and domestic and international regulatory standards, combined with the concerns ofstakeholders, and integrating them into ESG governance to achieve the Company’s sustainable development.
Based on stakeholder questionnaire surveys and combined with the Company’s development strategy and expert judgment,analyze from the dimensions of “impact materiality” and “financial materiality” to form a material issues matrix.Evaluation Process and Methods
Material Issues Assessment Results
Management of Material Topics
Establish a Databaseof Material Issues
Establish anIssues List
Evaluation ofMaterial Issues
Ranking andDeterminationof Issues
?Macro-environmental analysis based on national policies and industry development trends?Analysis based on the Company’s business model, development goals, and strategy?Analysis based on the Company’s business model, development goals, and strategy?Identify the Company’s stakeholders and the impacts, risks, and opportunities the Company faces
Referencing the Global Reporting Initiative (GRI), United Nations Sustainable DevelopmentGoals (SDGs), SASB, MSCI, and relevant issues in the domestic and international industry,communicate with internal and external stakeholders, and establish a sustainabledevelopment (ESG) issues library through questionnaires, interviews, and other methods.
?Impact Materiality Assessment：
To more accurately understand the focus of stakeholders and the impact of various issues onthe external environment, society, and economy, the Company conducts special research,using methods such as questionnaires to collect opinions and suggestions from stakeholders.
?Financial Materiality Assessment:
Through analysis of impact, dependency, and other factors, combined with expertjudgment and questionnaire surveys from various departments on the likelihood of issuesand the potential extent of financial impact, identify and assess risks and opportunitiesunder relevant issues, and assess issues with financial materiality.?Align corporate strategy with evaluation insights to conduct dual materiality?assessment, prioritizing material topics through which impact materiality and?financial materiality matrices are established, ensuring transparent, balanced?and comprehensive disclosure of related issues.
Environmental ComplianceManagementEnergy UtilizationClimate Change ResponseCircular EconomyWater resource utilizationPollutant emissionsWaste disposalTailings ManagementEcosystem and biodiversityprotection
Protection of employees’ legal rightsEmployee training and developmentOccupational health and safetyInnovation DriveProduct and service safety and qualityData security and privacy protectionSupply chain securityEqual treatment of small andmedium-sized enterprisesSocial ContributionRural RevitalizationTechnology ethics
Both FinancialMateriality andImpactMaterialityFinancial Materialitybut NotImpactMaterialityImpact Materialitybut Not Fi-nancialMaterialityNeither FinancialMaterialitynor lmpactMateriality
The material issues list of Dazhong Mining is as follows:
ESG
Anti-commercial bribery andanti-corruptionAnti-unfair competitionDue DiligenceStakeholder communication
Materiality to economic, social, andenvironmental impacts
Very high
Very highMateriality to corporate finance
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Sustainable Development Management2024 Environmental, Social, and Governance (ESG) Report
Dazhong Mining Co., Ltd.
In the second quarter of 2024, the Company pioneeredthe use of the world’s first lithium mine TBM shieldmachine, “Longyuanhao,”for the excavation of theJijiaoshan Lithium Mine exploration tunnel, targeting amonthly excavation of 600 meters. The actual progress ofthe tunnel excavation has far exceeded expectations andhas repeatedly set new records in the mining industry. It isexpected to be completed by mid-2025.The lithium resources in the Tongtianmiao section of the Jijiaoshan Lithium Mine in Hunan are equivalent to approximately
3.2443 million tons of lithium carbonate. According to the (DZ/T0400-2022),
this already qualifies as a large-scale mineral resource reserve, exceeding the Company’s expectations.
As of the reporting disclosure date, the "" submitted by our wholly owned grand subsidiary has successfully passedexpert review organized by the Strategic Research Center for Oil and Gas Resourcesof the Ministry of Natural Resources and completed filing procedures. This milestonesignifies the official commencement of the strategic mineral resource developmentproject.
The lithium mining, beneficiation, andsmelting project of Hunan Dazhonghehas been listed as a “Key ConstructionProject in Hunan Province,” a “LithiumBattery New Energy DemonstrationProject,” and one of the “Top Ten KeyIndustrial Projects.”
Launch ceremony site of the“Longyuanhao” TBM shield machine
The “Longyuanhao” TBMshield machine
Chenzhou City held a quarterly observation and promotion meeting for the “Six New Actions”
Praise for Hunan Dazhonghe’s efforts to build a lithium battery benchmark
On October 19, 2022, Dazhong Mining officially launched the lithium minedevelopment project in Hunan. In April 2023, the Company acquired control of theJijiaoshan Lithium Mine in Linwu County through judicial auction, achieving 100%ownership in 2024. The Company has planned to invest in lithium mining,beneficiation, lithium carbonate smelting, and lithium battery production projects inLinwu County. Since 2024, the Company has completed land application andcompensation for multiple lithium industry projects, while simultaneously advancingkey stages such as exploration, mining, beneficiation, and lithium carbonatesmelting. Significant progress has been made in the construction of industrial andmining infrastructure. As of the end of the reporting period, the Company isaccelerating the development and construction of of a comprehensive recyclingand utilization project for polymetallic resources with an annual processing capacityof 20 million tons (Phase I) and a lithium carbonate production project with anannual output of 20,000 tons. .
The Jijiaoshan Lithium Mine in Hunan is accelerating itsprogress,actively building a benchmark for the lithium battery industry.
Adjacent to the Jijiaoshan mining area
Real scene of the southern area of the Jiada Lithium Mine
I
Under the national strategy of “CarbonPeak and Carbon Neutrality”, whilefirmly developing its main iron orebusiness, the Company responded tothe national strategy and entered thelithium mining industry, known as“white petroleum”, in 2022, making it anew profit growth engine for theCompany. Through active layout in thelithium mining industry, the Companyhas acquired two major resources: theJijiaoshan Lithium Mine in Hunan andthe Jiada Lithium Mine in Sichuan. Thefirst mining area of the JijiaoshanLithium Mine in Hunan has beenproven to contain 1.3135 million tonsof Li
O mineral, with an average gradeof 0.268%, and approximately 3.2443million tons of lithium carbonate,temporarily rising to the seventh placeamong lithium mining enterprises inChina. Meanwhile, the Jiada LithiumMine project in Sichuan has alsocompleted the exploration of the firstmining area and is accelerating theprocess of reserve filing procedures.The two major lithium mine projectsprovide a solid resource guarantee forthe Company’s full industrial chainproject of lithium mining, beneficiation,and smelting.
Special FocusAccelerating LithiumMine Construction toPioneer a New Chapterof Development
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Special Focus (I)
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
“Longyuanhao” breaks the world record again, with three consecutive months of excavation exceeding 1,000 meters
The construction of the Hunan lithium mine is rapidly progressing, with frequent visits from provincial and municipal leaders.
Exploration Camp in the Mining AreaCableway Transporting Drilling Tools
In August 2023, Dazhong Mining successfully acquired the exploration rights for the Jiada Lithium Mine in Barkam City, Sichuan, through publicauction, spending 4.206 billion yuan, and paid the auction price on time. In 2024, the exploration work of the Gada Lithium Mine was fullylaunched. The exploration project team actively responded, undeterred by hardships and cold, and after a year of drilling operations, theexploration work was successfully completed. The resource situation of the ore body in the first mining exploration area was basically clarified,laying the foundation for the next step of exploration to mining.
On September 24, 2024, Dazhong Mining held the launch ceremony of the “Dazhong” shield machine, marking a new chapter in Dazhong Mining’slithium battery business development in the Sichuan region. Dazhong Mining will shoulder its mission, committed to building the Gada LithiumMine into a safe, intelligent, green, and scenic mining area, drawing a bright blueprint for the Company’s sustainable development.
Dazhong Mining adheres to the development philosophy of “transformation without changing the industry, innovation within the industry,” and isrealizing the dual-wheel drive of “iron and lithium.” The Company has entered a new sequence of China’s lithium industry in mining, selection, andsmelting. In the future, it will plan from a high starting point, layout with high standards, and promote with high quality as its developmentstrategy, accelerating lithium mine construction and building a benchmark for the lithium battery industry. With a vigorous stride, it will advancetowards the leading enterprises in China’s lithium industry, pushing forward a new chapter in the development of Dazhong Mining.
The Jiada Lithium Mine in Sichuan has beensuccessfully completed its exploration work.
Launch Ceremony Site of the “Dazhong” TBM Shield MachineThe “Dazhong” TBM Shield Machine
Dazhong Mining Leaders Taking a Group Photo in Front of the “Dazhong” Shield Machine
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Special Focus (I)
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
In recent years, Dazhong Mining hasactively responded to the national“dual carbon” strategy, making energyconservation and consumptionreduction an important lever for theCompany’s sustainable development.Through technological innovation,management optimization, and newenergy applications, it has achievedsignificant results in energyconservation and consumptionreduction, aiding the industry’s greentransformation.
Science-Based Planning for Systematic Energyconservation and Consumption Reduction
The Zhouyoufang mineral processing workshop of the subsidiary Jinrisheng Mining has conducted multiple trial experiments of permanent magnetmotors. After rigorous testing, it was fully proven that replacing permanent magnet motors on specific equipment in the mineral processingworkshop could achieve high economic and social benefits. The workshop established a systematic equipment update plan and has completed thereplacement of 29 permanent magnet motors, achieving an electricity saving rate of over 20%.Compared with traditional motors, the flotation machine equipped with permanent magnet motors achieved an electricity saving rate of up to
24.56%, the mixing tank achieved 22.51%, and the slurry pump also showed an excellent electricity saving rate of 20.47%. These data
comprehensively demonstrate the outstanding energy-saving effects of permanent magnet motors in various equipment scenarios in theZhouyoufang mineral processing workshop.
The crushing section of the Chongji mineral processing workshop strictlycontrols the idle running time of equipment through various methodssuch as automatic pop-up reminders for prolonged no-load operation ofproduction equipment in the automated production system. Byimplementing multiple technical modifications such as cone crusher fullfeeding, improving the efficiency of circular vibrating screens, andreplacing cloth trolleys with chute feeding, the existing buffer bins werefully utilized to maximize production supply while reducing equipmentrunning time, ultimately achieving off-peak operation.Through various technical modifications, the production time ofequipment such as crushers and circular vibrating screens increased bymore than 20% compared to before, and the use of chute feeding savedthe annual electricity loss of a 45 kW motor. Compared with theproduction data of the same period last year, the electricity consumptionper ton of crushed raw ore in the section reached a historical low.
We have set clear energy conservation and consumption reduction goals and development paths.In the Inner Mongolia region, Dazhong Mining aims to reduce energy consumption by anadditional 12% (measured in standard coal equivalent) by 2025. This will be achieved throughfocused execution of 21 energy-saving projects across five key categories: power trading, greenenergy adoption, equipment upgrades, and other initiatives, with a planned investment of 45.09million RMB. The subsidiary Jinrisheng Mining aims to reduce energy consumption by another10% tons of standard coal equivalent by 2025, achieving energy saving and consumptionreduction goals through comprehensive optimization of the power system, peak-shaving miningproduction, and energy center renovation.
Dazhong Mining and its subsidiaries, based on actual conditions, have implemented precisemeasures, carrying out a series of effective green technology retrofit in equipment upgrades,process optimization, and energy recycling, building a comprehensive and multi-level energysaving and consumption reduction technology system.
The original fan system had technical bottlenecks such as high operating noise, high energyconsumption, and the need for dual-machine operation under high sulfur conditions, severelyrestricting production efficiency improvement. In response to this pain point, the Companyconducted in-depth technical research and solution comparison, and innovatively introducedthe magnetic levitation fan technology solution. With significant advantages such as nomechanical friction, low noise operation, and high energy efficiency, this technology not onlyachieved a comprehensive improvement in equipment operation efficiency but also madebreakthrough progress in energy consumption control and maintenance cost optimization.Verified by actual operation data, the project showed significant results within one month ofimplementation: the electricity saving rate exceeded 37.99%, which was 10.99% higher thanthe expected target. Through comparative analysis of electricity consumption data beforeand after the renovation, the daily electricity saving reached 1,772.93 kWh, significantlyexceeding the expected energy-saving benefits.
Technological Innovation for TappingEnergy-Saving Potential
On February 1, 2024, the was approved by the Company’sdecision-making committee, and the bentonite workshopimmediately launched the industrial test, marking a new stage inthis innovative exploration. After nearly three months of effort, thecementitious materials produced using the new process not onlyfully met the compressive strength requirements but also achievedsignificant economic and social benefits.This technical modification is expected to save raw material costsof up to 2.67 million yuan annually, and the optimized process cansave electricity consumption of about 70,000 yuan and reduceequipment maintenance costs of about 8,000 yuan annually. Atthe same time, the number of production personnel can bereduced from 15 to 12, achieving true streamlined efficiency.
EquipmentUpgrade
EquipmentUpgrade
Energy-saving Renovation of the DesulfurizationMagnetic Suspension Fan in Dazhong Pellet Plant
Permanent magnet motor replacement inZhouyoufang mineral processing workshop
ProcessOptimization
Off-peak ore accumulation production
ProcessOptimization
Grinding aid replacing activator in theproduction of cementitious materials
II
Advancing EnergyEfficiency and ConsumptionReduction to Forge anEco-Development EngineSpecial Focus
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2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
The Company vigorously promotes the digital transformation of energy management, establishing an energy management platform to achievereal-time monitoring and intelligent analysis of energy usage data; with the dispatch center as the core, optimizing energy allocation and usageefficiency; through measures such as power factor regulation and transformer billing adjustments, refining the management of electricity costs.
Innovative Governance for Smart Energy SystemsRemarkable Achievements with Dual Economic and Social Benefits
Through systematic promotion of energy conservation and consumptionreduction, the Company and its subsidiaries achieved significant results in 2024.Dazhong Mining InnerMongolia RegionJinrisheng Mining
Pellet PlantSulfuric Acid PlantBentonite Plant
Water, electricity, coal, and oil costs decreased by 6.27 million yuan compared to the beginning ofthe year, achieving 75.0% of the energy conservation and consumption reduction target.Through the implementation of 22 energy conservation and consumption reduction projectsthroughout the year, the Company successfully completed the 10% energy conservation target,reducing costs by a total of 21.8 million yuan for the year.Process energy consumption decreased by 481 million yuan, achieving 132.3% of the budgeted
3.63 million yuan.
Process energy consumption decreased by 5.7 million yuan, achieving 106.6% of the budgeted
5.35 million yuan.
Cost per ton of product saved 29 yuan, with an annual cumulative savings of 2.24 million yuan.
To accelerate informatization construction and leadthe Company’s comprehensive digitaltransformation, in July 2024, the Company held agrand launch ceremony for the “EnergyManagement Information Platform.” This not onlymarks a new milestone in our journey to acceleratethe Company’s digital transformation but alsosignifies a solid and crucial step in enhancingenergy management efficiency and optimizingresource allocation. At the meeting, the projectleader outlined the implementation blueprint,covering the project’s goals, comprehensive layoutof functional modules, robust structure of theleadership team, and a detailed plan for projectadvancement, providing a clear roadmap forsubsequent project implementation.
Dazhong Mining Holds Grand Launch Ceremony for “Energy Management Information Platform”
Through systematic and intelligent energy conservation andconsumption reduction practices, Dazhong Mining not onlyachieved considerable economic benefits but also providedvaluable insights for the green transformation of the miningindustry. Under the guidance of the “Dual Carbon” goals, theCompany will continue to adhere to the concept of greendevelopment, increase investment in technological transformation,expand the scale of clean energy applications, improve the smartenergy management system, and strengthen energy conservationtechnology innovation, making greater contributions to building aresource-saving and environmentally friendly enterprise.
Future Outlook
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Special Focus (II)
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Adhere to Party-building LeadershipStandardize Corporate GovernanceMitigate Compliance RisksSafeguard Investor RightsUphold Business Ethics
Our Actions
Sound Governance:
Responsibility for Governance
Dazhong Mining integrates the concept of compliance management intothe Company’s daily operations, continuously improving internalgovernance structures, risk control mechanisms, and enhancingoperational efficiency and transparency. The Company focuses on theconstruction of business ethics, striving to protect investors’ rights andinterests, and creating long-term value for shareholders and society.
SDGs Responded in This Chapter
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Party Building as the Guiding Principle
Adhering to the leadership of the Communist Party of China and strengthening Party building are not only the core requirementsof national political life but also important guarantees and powerful driving forces for the healthy development of privateenterprises. Dazhong Mining has always adhered to the guidance of Xi Jinping Thought on Socialism with ChineseCharacteristics for a New Era, fully implemented the spirit of the 20th National Congress of the Communist Party of China, thespirit of the Central Economic Work Conference, and the relevant conference spirits of local Party committees. It hascomprehensively, accurately, and fully implemented the new development concepts, closely integrated Party building withenterprise development, and used Party building to guide the high-quality development of the enterprise.
The Dazhong Mining Party Committee had1 basic Party committee, 3 general Party branches, 21 Party
branches, and 236 Party members, accounting for 6.24% of full-time employees. The annual Partycongress was held once.
Party Building Work
Dazhong Mining actively promotes Party building through a variety of educational activities, strengthens the ideologicalguidance, organizational construction, and style construction of the Party member team, and promotes the overall improvementand common progress of the employee team.
Party Building Honors
On July 1, 2024, to set examples, commend the advanced, and further inspire the fighting spirit of Party organizations and Partymembers at all levels, the Party Committee of the Wulate Front Banner Industry and Information Technology Bureau held a selectionand commendation event for outstanding Communist Party members, outstanding Party affairs workers, and advanced grassrootsParty organizations. In this commendation, the Party branch of Dazhong Mining’s Shujigou Plant was awarded the honorary title of“Advanced Grassroots Party Organization”, one Communist Party member was awarded the honorary title of “Outstanding Party AffairsWorker”, and three Communist Party members were awarded the honorary title of “Outstanding Communist Party Member”.
The subsidiary Jinrisheng Mining carried out the Party building activity “Inheriting the
Red Gene and Remembering the Great Leader”.
Leaders of the Lu’an Municipal Ecological Environment Bureau led a delegation to the subsidiary Jinrisheng Mining.
Conducted the “Party Building + Green” research activity.
The Non-coal Mine Safety Supervision Office of the Anhui Provincial Emergency Management Department, the Party Committee ofthe subsidiary Jinrisheng Mining, and the Maotai Village Party Committee jointly held a Party building alliance joint symposium.
Party Building System
As of the end of thereporting period
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Sound Governance: Responsibility for Governance2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Standardize Corporate Governance
Dazhong Mining strictly adheres to the (hereinafter referred to as the ), and other relevant laws and regulations. It has formulated internalmanagement systems such as the (hereinafter referred to as the ),continuously improved the business decision-making and management system with the general meeting of shareholders, theboard of directors, the board of supervisors, and the management as the framework, clarified the rights, obligations, andresponsibilities, ensured the legal operation and scientific decision-making of the power, decision-making, supervisory, andexecutive bodies, and enabled independent directors and supervisors to fully and independently perform their supervisory dutiesand provide independent evaluations and suggestions.
The general meeting of shareholders is the power body of the Company and the main way for shareholders to exercise their rights. The Companystrictly follows the provisions and requirements of the ,and to standardize the convening, holding, and voting procedures of the general meeting ofshareholders, ensuring the legality of the Company’s general meeting of shareholders and avoiding voting on related matters. A combination ofon-site voting and online voting is adopted to provide convenient conditions for all shareholders to exercise their rights, ensuring that allshareholders, especially minority shareholders, enjoy equal status and fully exercise their rights. At the same time, lawyers are hired to witness theconvening, holding, and voting of the meeting and issue a , providing authoritative legal basis and guarantee for the Company’sdecision-making.In addition, the Company has formulated the , which stipulates the vote calculationmethod of the cumulative voting system, ensuring that the elected directors or supervisors comply with the provisions of the Company’s articlesof association, further safeguarding the interests of minority shareholders, and standardizing the election of directors or supervisors.
The board of directors is the Company’s decision-making body and is responsibleto the shareholders’ meeting. In accordance with the requirements of laws andregulations such as the , the Company has formulated the to standardizethe decision-making procedures and methods of the board of directors, promotedirectors and the board to effectively fulfill their duties, and improve thestandardized operation and scientific decision-making level of the board ofdirectors.
The Company’s board of directors has established four special committees:
Strategy and Sustainable Development(ESG), Nomination, Audit, andCompensation and Assessment. In strict accordance with the and, the Company has formulated the , and fulfills correspondingresponsibilities according to the rules of procedure, assisting the board ofdirectors in executing its decision-making and supervisory duties. The convener ofthe audit committee is an accounting professional among the independentdirectors, and the members are directors who do not hold senior managementpositions in the Company.
Shareholders’ Meeting
Board of Directors
Operation of Three Boards
Governance Structure
During the reporting period, the Company held a total of 5 general meetings of shareholders, including1annual general meeting and 4 extraordinary general meetings, reviewing 31 proposals.
During the reporting period, theCompany held13 board meetingswith a100% attendance rate ofboard members, reviewing
proposals.
Special Committees of the Board of Directors
Audit CommitteeMeeting
5times
NominationCommittee Meeting2times
Compensational andAssessmentCommittee Meeting
1times
Strategy and SustainableDevelopment (ESG)Committee Meeting1times
Shareholders’ MeetingSupervisory Board
Board SecretaryBoard of DirectorsManagement Team
Strategy and Sustainability (ESG)
CommitteeNomination Committee
Key Performance
Key Performance
Audit CommitteeCompensation and Assessment
Committee
Organizational structure of Dazhong Mining
ChairmanGeneral ManagerDeputy General
Manager
Capital OperationCenter
Securities DeptOperations andDispatch DepartmentFinancial ManagementDepartmentBusiness and FinanceShared Services DepartmentFinancing and CreditDepartmentInformation TechnologyDepartmentManagement ControlDepartmentAutomation ControlDepartmentSystem StandardsDepartmentCentral LaboratoryMineral ProcessingLaboratory
Jinhui Rare MineralCompanyJinrisheng MiningHunan DazhongheSichuan DazhongheDazhong TradingDazhong GeologicalExploration Institute
OperationManagement CenterFinancialManagement CenterIntelligent ControlCenterR&D Center
Human ResourcesDepartmentDevelopmentPlanning CenterAudit and LegalDepartmentParty and AdministrationDepartmentBidding and ProcurementDepartmentSales DepartmentSafety and EnvironmentalProtection Department
Chief EngineerChief Financial
Officer
First-levelCompany
Dazhong
Mining
Key Performance
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Sound Governance: Responsibility for Governance
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
In accordance with the provisions of the and, the Company has formulated the ,which clarifies the selection, responsibilities, rights and obligations of independent directors, as well as the methods andprocedures for participating in company decision-making and supervision, ensuring that independent directors can perform theirduties independently and impartially, providing strong guarantees for the standardized operation and healthy development of theCompany. There are 3 independent directors on the Company’s board of directors, accounting for 42.86%.
The Company actively promotes diversified management of the board of directors, eliminating all forms of discrimination basedon gender, age, religion, ethnicity, etc., actively promotes gender equality, and focuses on diversity in professional fields,educational backgrounds, knowledge reserves, and skill levels to enhance corporate decision-making and management.
Supervisory BoardThe Company elects supervisors in accordance with the procedures stipulated in the. All supervisors perform their dutiesobjectively and impartially in accordance with the Articles of Association and relevantregulations, supervising the Company’s major matters, financial status, and thelegality and compliance of the performance of directors and senior management.
In accordance with the and other relevant regulations, the Company has formulated the , implementing an incentive and restraint mechanism that links individual compensation to performance. Atthe same time, the Company has hired a third-party company to guide the construction of the compensation system, combining the Company’soperating conditions and industry compensation levels, the Compensation and Assessment Committee formulates a quantitative compensationplan based on performance evaluation standards and procedures, and conducts performance evaluations for directors and senior management.Based on the business innovation and profit-making capabilities of senior management, combined with their job responsibilities, performanceevaluations, operating conditions, and financial indicators, the Company allocates compensation in accordance with the Company’s compensationmanagement system, linking safety, environmental protection and other ESG indicators to senior management compensation, encouragingmanagement to actively promote sustainable development practices.
Executive Compensation
Independence of the board of directors
Board Diversity
The independent directors of the special committees are as follows:
Special Committe
IndependentDirectors (number)
Non-independent
Directors(seats)
Does the independent director
serve as the chairman?Strategy and SustainableDevelopment (ESG) CommitteeNomination CommitteeAudit CommitteeCompensation andAssessment Committee
NoYesYesYes
Company Board Members
7 members
Female Board Members
1 members
Proportion of FemaleBoard Members
14.29%
Independent BoardMembers
3 members
Non-independentdirectors
4 members
Proportion ofindependent directors
42.86%
During the reporting period, theCompany held 8 meetings ofthe board of supervisors,reviewing 23 proposals.
the total remuneration of directors, supervisors and senior management was
17.0078 million yuan.
During thereporting period
Name
Niu GuofengLin LairongLiang BaodongLin PushengWei YuanWang LixiangChen Xiu
Type
Non-independent
directorNon-independentdirectorNon-independent
directorNon-independent
directorIndependent
DirectorIndependent
DirectorIndependent
Director
Specialty
Finance, economics,management, capital
operationEconomics, mining,management, investmentEconomics, Management
Mining, safety,managementElectric PowerAccounting, TaxationFinance, Investment
Gender
MaleMaleMaleMaleMaleFemale
Male
Age(years)
Education
Master’s degree
Technicalsecondary schoolBachelor’s degreeBachelor’s degree
Master’s degreeBachelor’s degreeBachelor’s degree
Title
-SenioreconomistEconomist
-
-Certified Public Accountant,Senior Accountant, Certified
Tax Agent
-
The Company’s board of supervisors consists of 3 supervisors, including 2non-employee representative supervisors and 1 employee representative supervisor.During the reporting period, the procedures for convening and holding meetings ofthe board of supervisors, the qualifications of participants, and the voting proceduresall complied with relevant regulations.Key Performance
Key Performance
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Sound Governance: Responsibility for Governance2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Prevention and Control ofCompliance Risks
Dazhong Mining Co., Ltd adheres to national laws, regulations, and relevant policies, and has formulated , establishing a holistic risk management framework. These measures define risk control protocols tailored tospecific operational contexts, providing clear guidance for the Company’s risk governance. Risk management follows principles such ascomprehensiveness, integrating preemptive, ongoing, and post-event controls across all business operations, departments, andpersonnel. It permeates every stage—decision-making, execution, supervision, and feedback—to eliminate gaps or vulnerabilities in riskoversight. This systematic approach ensures the effective prevention and mitigation of potential risks and crises during operations,safeguarding the achievement of strategic objectives and fostering sustainable, stable, and healthy business growth.Comprehensive Risk Management Framework
Risk Management
Our Company develops tailored risk management solutions and establishes a risk monitoring andearly-warning system, coupled with emergency response protocols. This framework enables theproactive tracking, analysis, and monitoring of significant risks and critical incidents. Emergencyresponse teams are mobilized to develop and execute mitigation plans, ensuring rapid and effectiveresolution upon risk materialization. Post-incident reviews are conducted to extract lessons learned,refine contingency plans, and continuously strengthen operational resilience, thereby safeguardingbusiness continuity and operational security.
Initial Risk InformationCollection
Risk Identification
Risk Analysis
Risk Assessment
Response Strategies
Risk Handling
Supervision andImprovement ofRisk Management
2024年风险管理培训情况
Board of Directors
The highest leadership and responsible body for comprehensive risk management
ManagementThe executive body for comprehensive risk managementAudit and LegalDepartment
The specific organizational and coordinating department for comprehensive risk management
Each Centers andDepartments
Each center and department shall be responsible for overseeing the day-to-day operations ofcomprehensive risk management within their respective functional scopes. This includesidentifying risks within their areas of responsibility, conducting evaluations, developing mitigationstrategies, and implementing controls.
Subsidiariesand BranchCompanies
Each subsidiary and branch company is responsible for the day-to-day execution ofcomprehensive risk management within its operational scope. This includes identifying risksspecific to the branch, conducting assessments, formulating mitigation plans, and implementingcontrols.Risk Management Process
Each center, functional department, subsidiary, and branch company shall analyze the identifiedrisks by determining the root causes, likelihood, preconditions, and potential impacts of each risk,which are then documented in the Risks are categorized into distinct levels based ontheir likelihood of occurrence and impact on organizational objectives, enabling the assessment ofrisk significance and the development of targeted mitigation strategiesWe conduct a comprehensive evaluation of the identified and analyzed risks by leveraging toolssuch as a risk matrix to quantify their likelihood of occurrence and potential impact severity,thereby determining their priority levels and risk ratings. The evaluated results are then reviewed bythe General Manager and submitted to the Executive Committee for final deliberation.Based on the distinct characteristics and severity of impact of each risk, our Company flexiblyselect and apply a combination of strategies—including risk avoidance, risk mitigation, risk transfer,risk compensation, risk hedging, and risk acceptance—to reduce, transfer, or eliminate risks.Regularly evaluate the effectiveness of these strategies and refine them through iterativeadjustments.
The Operations Management Center is responsible for establishing risk management informationcommunication channels, and each center, subsidiary and branch company must regularlyself-inspect and report on risk management work. The Audit and Legal Department regularlysupervises internal control evaluation work and reports directly to the Board of Directors, whileincorporating risk management into the audit scope. The Audit and Legal Department annuallycompiles a risk management report for the Board of Directors and adjusts risk strategies based onenvironmental changes, subject to the General Manager’s approval.
The initial collection of risk-related information shall be led by the Audit and Legal Department.All centers, subsidiaries, and branch companies are required to systematically gather internaland external historical data and future predictive information pertaining to risks and riskmanagement in accordance with the established plan. This ensures the comprehensiveness andtimeliness of the information collected, and implementation shall proceed upon obtainingapproval from the General Manager.Risk identification involves conducting a comprehensive review of all company departments,business units, and operational processes to systematically pinpoint potential risk points. Theserisks are then documented in detail within a , while tools such as cause-and-effectanalysis are employed to clearly delineate the characteristics of each risk.
2024 Risk Management Training StatusNumber of Internal RiskTraining Sessions 5 sessionsTotal Number of Internal RiskControl Training Participants
33 participants
Total Hours of Internal RiskControl Training8 hours
Risk Management Training
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Sound Governance: Responsibility for Governance2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Dazhong Mining Co., Ltdbuilds a systematic tax risk
prevention and control
system
Internal Audit
Dazhong Mining Co., Ltd strictly adheres to regulations such as the . The Company continuously optimizesits internal management system, establishing complete processes and policies for procurement, sales, engineering, assetmanagement, capital management, and investment. Clear approval authorities mitigate operational risks, ensuring efficientoperations, accurate financial reporting, and legal compliance.
The Company strictly adheres to relevant laws and regulations such as the has been formulated to regulate the legal acts of resourceor obligation transfers between the Company and its related parties, ensuring that all related-party transactions are conducted ina fair, just, and transparent manner, preventing improper benefit transfers, and protecting the legitimate rights and interests ofthe Company and all shareholders.
Dazhong Mining Co., Ltd strictly complies with the , and other tax law documents. It has formulated the Tax ManagementMeasures, implementing the principles of lawful tax payment and reasonabletax savings, centralized management and consolidated tax payment with theCompany as the legal entity, and the principle of reporting major tax-relatedmatters and tax planning of subsidiaries level by level. It specifiesmanagement measures for company tax registration, ensuring that all taxactivities comply with national laws and regulations.
During thereporting period
The Company complies with the . The Audit and Legal Department conducts independentoversight under the Board Audit Committee, performing audits at all stages (pre-event, in-process, post-event) to ensureaccuracy and risk mitigation.
In 2024, to ensure operational compliance and financial transparency, the Company engaged a third-party institutionto conduct an internal audit of the Company’s related-party transactions and the use of raised funds and to issue anaudit report. The report comprehensively evaluated the compliance of related-party transactions and the specificuse of raised funds, providing strong guarantees for the Company’s standardized operations and important basis formanagement decision-making.
Internal Control
Tax Management
Related-party Transactions
Tax Risk Prevention and Control Measures
The Company’s total taxpayment was 745.5670million yuan.
Third, compliance is strengthened. Forrelated-party transactions and taxinformation disclosure, professionalinstitutions are introduced to conduct auditassessments, and transparency is enhancedthrough investor communication. At thesame time, good communication andcooperation with tax authorities aremaintained to stay informed of changes intax policies, actively cooperate with taxinspections, and avoid tax risks caused bynon-compliant operations.
First, a comprehensive tax managementsystem and processes have beenestablished. In accordance with the normsof listed companies, the FinancialManagement Center has set up a taxinternal control mechanism covering theentire process, clarifying the responsibilitiesand authorities of the board of directors,management, and various departments.Regular tax risk assessments andself-inspections are conducted to promptlyidentify and correct potential tax issues.
Second, dynamic control is implemented.Relying on the information system, tax data inbusiness, investment, and financing links aremonitored in real-time. Risk points areidentified in conjunction with regulations suchas theand processloopholes are optimized by comparing withindustry peers and historical data.
Fourth, precise responses are made.Graded response plans are formulated forpolicy changes or controversial matters,with a focus on controlling high-riskareas such as fund flows to ensurecompliance with the bottom line. Tax riskcontrol measures are incorporated intothe assessment system to achievelong-term tax management andpreemptive risk prevention and control.
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Sound Governance: Responsibility for Governance2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Investor Rights Protection
Dazhong Mining Co., Ltd always attaches great importance tothe protection of shareholder rights, strictly implements theprofit distribution principles stipulated in the , and has formulated the to ensure that all shareholdersare treated fairly, increase the transparency and operability ofprofit distribution decisions, and enable shareholders tosupervise the Company’s operations and profit distribution.
Dazhong Mining Co., Ltd effectively safeguards and protects the legitimate rights and interests of creditors. The Company hasformulated the strictly adheres to thecontract terms signed with creditors, actively fulfills debt repayment and interest payment obligations, and ensures that all debtsare properly handled on time. During the reporting period, Dazhong Mining Co., Ltd obtained Class AA Taxpayer in Tax CreditRating. The Company did not experience any debt defaults, maintained an excellent credit record, and consolidated thefoundation of trust and cooperation with creditors.
Shareholder Returns
Creditor Rights Protection
The Company always adheres to a rigorous attitude, fully fulfills its information disclosure obligations, ensures the truthfulness,accuracy, completeness, timeliness, and fairness of the disclosed information, and fully protects the right to know of the majorityof investors. The Company has formulated the , clarifying the principles, content, and procedures of information disclosure. TheCompany publicly discloses matters such as performance, profits, acquisitions, asset restructuring, and related transactions in theform of periodic reports and temporary reports. At the same time, the Company has strengthened the internal review andaccountability mechanism for information disclosure, ensuring that all significant information that may affect investors’ decisionsis timely and fairly communicated to all investors, safeguarding the legitimate rights and interests of the Company and investors.
Information Disclosure
Dazhong Mining Co., Ltd strictly follows the and other relevant laws and regulations, as well as the provisionsof the . The Company has formulated the clarifying the basic principles,objectives, and targets of investor relations management. With the chairman as the first responsible person, the board secretaryis responsible for the overall planning, coordination, and arrangement of the Company’s investor relations work. The SecuritiesDept serves as the designated management department and daily working institution for investor relations activities. Weestablished a comprehensive investor communication mechanism to ensure timely information delivery and feedback, enhancinginvestors’ trust and recognition of our Company.
Dazhong Mining Co., Ltd consistently upholds all legal rights and interests of shareholders, fully advancing the deepening andoptimization of investor relations management to build a closer and more efficient bridge for investor interaction. By adoptingdiversified communication channels—including but not limited to the Company’s official website, telephone, email, and faxexchanges—we safeguard the legitimate rights and interests of investors, ensuring their rights to be informed, participate, andbenefit in the Company’s development are fully respected and realized.
Investor Relations Management
Investor Communication
Operating revenueTotal assetsCash dividend per shareTotal cash dividend (including tax)Net profit attributable toshareholders of the listed company
RMB 10,000RMB 10,000Yuan/shareRMB 10,000RMB 10,000
384,279.091,541,681.80
0.10
14,868.6175,126.20
400,345.721,405,749.76
114,126.48
415,721.091,167,720.58
0.30
44,662.15109,328.33
During the reporting period, the Company disclosed a total of186 announcements and related documents,
and the number of penalties received for violations in information disclosure was 0.
Key Performance
In 2024, the Company achieved total operatingrevenue of 3,842.7909 million yuan, thetotal profit reached 913.6057 million yuan.
The Company’s cash dividend distribution in the past 3 years
Key PerformanceUnit202420232022
Key Performance
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2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Key Performance
Case Study
Steering the ship of integrity to sail steadily and far;wielding the sword of inspection to build mutual trust.
Anti-Commercial Bribery and Anti-Corruption
Dazhong Mining Co., Ltd strictly complies with laws and regulations, strengthens a culture of integrity, prohibits unfaircompetition, ensures legal and compliant business activities, resolutely avoids involvement in improper business practices,actively maintains market competition order, and protects the legitimate rights and interests of the Company and its partners.
The Company strictly adheres to the and other laws and regulations, has formulated the , and established amanagement system composed of the Audit and Legal Department, the Intelligent Control Center, and various units. The Auditand Legal Department, as the main responsible department, is responsible for promptly investigating and handling variousillegal activities reported by employees and discovered through inspections, and resolutely combating fraudulent behavior withinthe Company. New employees must sign an onboarding declaration, clearly agreeing to comply with the Company’s integrityagreement, committing to integrity and self-discipline, and eliminating violations. If violated, they are willing to acceptcorresponding penalties.The Company maintains a firm stance of zero tolerance towards internal illegal activities, resolutely cracking down on all illegaland corrupt practices. By improving systems, strengthening supervision, and conducting integrity education, among othermeasures, we aim to build a clean and upright internal environment, ensuring the healthy development of the Company.
Adherence to Business Ethics
At the 2024 annual summary and 2025 work conference, the Auditand Legal Department reported under the theme Sailing withIntegrity, Steady and Far; Raising the Sword of Inspection, BuildingTrust Together, emphasizing that integrity and self-discipline promotecorporate health. We are advancing the integration of business andfinance systems, accurately warning of anomalies, maintaining zerotolerance towards internal violations, fostering a clean and uprightatmosphere, and jointly building the foundation for the Company’ssteady development.
Case StudyAnnual Performance Briefing
On March 19, 2024, the Company held the 2023 Annual Performance Briefing in Shanghai, attended by Chairman Niu Guofeng,General Manager Lin Pusheng, and Board Secretary Lin Puzheng. They provided detailed explanations on the Company’s 2023annual performance and operational status, while actively addressing concerns and questions from investors.
2024 Investor Communication StatusNumber of On-site Investor Research Receptions 3 timesNumber of Investors Received forOn-site Research200 people
Number of Investor Open Exchange Meetings Held2 times
Number of Investor Calls Received116 timesNumber of Investor QuestionsAnswered on Interactive E520 times
Investor Question Response Rate
99.43%
1.The Company publicizes illegal and corrupt activities through the corporate information platform and WeChat Moments to create an
anti-corruption atmosphere within the Company.
2.The Audit and Legal Department will promptly investigate, decisively handle, and publicly address any leads on illegal and corrupt
activities, and transfer them to judicial authorities.
3.The Company strengthens the anti-corruption supervision mechanism by setting up a public reporting platform. On the basis of
enhancing internal audit and control measures, establish a reward channel for reporting illegal and corrupt activities within theCompany, encourage external partners to participate in supervision, and implement a feedback system for the investigation results ofreported issues.
4.The Company actively builds mechanisms to dare not corrupt, cannot corrupt, and do not want to corrupt.
5.The Company strives to achieve the Three Persistences in Anti-Corruption. Persist in balancing transferring illegal cases and
strengthening internal supervision; persist in synchronizing criminal prosecution with civil compensation; persist in combining punishingcrimes with internal standardization.
Anti-corruption measures
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Dazhong Mining Co., Ltd.
Key Performance
The Company has established various reporting channels, includingWeChat, hotline, email, and mail, to publicly disclose reportingmethods and encourage employees to report any illegal ornon-compliant activities. For reports that meet the case filingstandards after verification, the Company will reward thewhistleblower to demonstrate support and encouragement forintegrity, jointly maintaining a clean and compliant businessenvironment. At the same time, the Company places importance onprotecting the legitimate rights and interests of whistleblowersfrom infringement, preventing them from suffering retaliation dueto their reporting actions.
Dazhong Mining Co., Ltd strictly adheres to and other relevant laws and regulations, upholds the bottom line of business ethics, resolutelyprohibits any unfair competition practices, fully maintains a fair and just market order, effectively protects the legitimate rightsand interests of consumers, wins market trust through honest operations, and promotes the sustainable development of theenterprise.The Company advocates anti-monopoly and fair competition, and has built a comprehensive risk prevention and control systemaround anti-monopoly and fair competition. The board of directors approves the anti-monopoly compliance system andauthorizes major dispute resolution plans; the Audit and Legal Department leads risk identification, training, and dailymonitoring, and has the authority to halt high-risk businesses; it is also responsible for contract review, merger and acquisitiondeclarations, and legal responses, issuing compliance opinions; procurement, sales, and other business departments executecompliance requirements, cooperate with data provision, and implement rectifications.
Market Behavior Boundaries: All pricing agreements and regional sales policies must be reviewed by theLegal Department, and the signing of exclusive clauses or setting regional restrictions is prohibited;Pre-Merger Evaluation: Investment and merger projects must submit a , and
the Legal Department, in conjunction with external law firms, determines whether the declaration standard istriggered (e.g., market share exceeds 15%);
Industry Chain Collaborative Control: Prohibits the exchange of sensitive information such as productionvolume and price with upstream and downstream enterprises, and business contracts must includeAnti-Monopoly Compliance Commitment Clauses.
Anti-Unfair CompetitionNumber of directors who participated in anti-bribery and anti-corruption trainingPercentage of directors who participated in anti-bribery and anti-corruption trainingTotal duration of anti-bribery and anti-corruption training provided to directorsAverage duration of anti-commercial bribery and anti-corruption training received by directorsNumber of management personnel who participated in anti-commercial bribery and anti-corruption trainingPercentage of management personnel who participated in anti-commercial briberyand anti-corruption trainingTotal duration of anti-commercial bribery and anti-corruption training provided to managementAverage duration of anti-commercial bribery and anti-corruption training received by managementNumber of grassroots employees who participated in anti-commercial bribery and anti-corruption trainingPercentage of grassroots employees who participated in anti-commercial bribery and anti-corruption trainingTotal duration of anti-commercial bribery and anti-corruption training provided to grassroots employeesAverage duration of anti-commercial bribery and anti-corruption training received by grassroots employees
7 People100%56 hours8 hours/person44 People100%352 hours8 hours/person139 People
3.72%
556 hours
0.15 hours/person
Anti-Monopoly and Fair Competition Risk Control Measures
During the reporting period, the Company did not experience any inquiries, notifications, or penalties arisingfrom violations of anti-corruption, anti-extortion, anti-fraud, or anti-money laundering laws and regulations, nordid any employee corruption incidents occur.
Key Performance
During the reporting period, the Company did not incur any penalties for violations of the and the
Anti-bribery and anti-corruption training status
Reporting ChannelsReporting Email：493233450@qq.comReporting Hotline：0472-5216686
Reporting channels
Mail and Visit: Audit and Legal Department, Dazhong Mining Co.,Ltd., No. 55 Huanghe Street, Baotou City, Inner MongoliaAutonomous Region
Business Compliance
Review
Data Monitoring: The Sales Department collects industry market share and regional price fluctuation data
monthly, comparing and analyzing potential monopolistic behaviors;
Reporting Mechanism: Establishes internal anti-monopoly reporting channels (anonymous email/hotline),
and the Audit and Legal Department verifies reporting clues quarterly.
All members of the Sales and Procurement Departments must complete 8 hours of anti-monopoly trainingannually, focusing on policies such as the ; anti-monopolycompliance is included in departmental KPIs, and violations are directly linked to performance deductions.
Risk Dynamic
Monitoring
Compliance Trainingand Assessment
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144 147 148
Sound Governance: Responsibility for Governance
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Climate Change ResponseEnvironmental Protection and Pollution ControlCircular Economy and Resource UtilizationGreen Mines and Ecological Protection
Our Actions
Green Mines:
To be a Green PioneerDazhong Mining Co., Ltd adheres to the corporate culture ofEnvironmental Protection as the Priority, Green Development, and iscommitted to promoting the transformation and upgrading of the miningindustry. Through continuous exploration and practice, the Company hasdeeply embedded the concept of green and low-carbon into its businessprocesses, comprehensively advancing the green mine developmentstrategy. Taking the protection of the ecological environment as itsresponsibility and green development as its mission, the Company hasembarked on the sustainable development journey of Dazhong.
SDGs Responded in This Chapter
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144 147 148
Climate Change Response
Facing the severe challenges of global climate change and environmental issues, Dazhong Mining Co., Ltd actively responds tothe national strategic deployment of carbon peaking and carbon neutrality, taking on the responsibility of sustainabledevelopment. In line with its operational practices, the Company follows the guiding principles of the exchange and theframework of the Task Force on Climate-related Financial Disclosures(TCFD). From the four key dimensions of governance,strategy, risk management, and metrics and targets, the Company takes practical and effective measures to contribute to thenational vision of carbon neutrality and sustainable development goals.
Dazhong Mining Co., Ltd identifies, assesses, and manages climate-related risks and opportunities as key components of itsstrategic planning and daily operations. The Company evaluates the potential impacts of climate change issues on its businessdevelopment, operational management, supply chain stability, and finances based on the guidelines and recommendations of theTask Force on Climate-related Financial Disclosures(TCFD). Based on the analysis, the Company further formulates correspondingstrategies and measures to address the challenges posed by climate change.
Dazhong Mining Co., Ltd considers climate change response as one of the core issues of its long-term development strategy. Toactively explore effective paths for climate change response and promote transformation and upgrading, the Company hasformulated the , clarifying the responsibilities of the board of directors,the Strategy and Sustainability(ESG) Committee, the ESG working group, and other levels in climate change response. At thesame time, the Company has established and improved a climate change assessment mechanism, setting quantifiableassessment indicators, and regularly evaluating and assessing the effectiveness of climate risk management to ensure theeffective implementation of various planning goals.
Governance
Strategy
Board of Directors Strategy and Sustainability(ESG) CommitteeResponsible for approving climate-related policies, strategies, and targets, incorporating climate-relatedrisks and opportunities into consideration, and overseeing climate-related risks and disclosures.
ESG Working GroupResponsible for assessing andmanaging climate-related risksand opportunities, exploring stra-tegic research related to climatechange, planning the Company’sclimate-related strategies, andestablishing effective mecha-nisms to ensure the implementa-tion of climate-related actions.
Various Execution DepartmentsDevelop climate risk man-agement policies, standards,and requirements, collect,disclose, and verify climatechange-related data andinformation, and compileannual climate changeaction reports.
RiskType
Risk Description
Probability ofOccurrence
ImpactMagnitude
Timeframeof Impact
ImpactedValue ChainSegment
PriorityRanking
PotentialFinancial
Impact
Response Measures
Physical RiskTransformation risks
Policy and legal risksTechnical risks
Acute RiskChronic risks
Shortandmediumterm
Mediumand long
term
Mediumand long
term
Short,mediumand long
term
Operations,Downstream
Operations
Operations
Middle
Middle
Middle
Middle
MiddleMiddle
Operating
incomedecreased;fixed assetsdepreciated;
operating
costsincreased
Risingoperating
costs
Risingoperating
costs
Strengthen dailyenvironmental, weatherand engineeringinspections; in case ofextreme weatherconditions, reportpromptly and activateemergency plans, takeeffective measuresquickly, organize rescueoperations, and preventthe accident fromexpanding; conductcomprehensiveinspections and cleanupafterwards.
Pay close attention topolicy developments of thegovernment and relevantregulatory agencies, andpromptly understand theimpact of policy changeson the Company’s business;accelerate clean energysubstitution and reducecarbon dependence.Increase investment inR&D of low-carbon andenergy-savingtechnologies, optimizelow-carbon technologypaths based on R&Dresults, and improve theapplication of new energytechnologies.
LowHigh
High
High
High
High
Climate Change Response Governance System
Long-term changes such asrising global averagetemperatures and naturalresource shortages mayaffect the Company’s miningoperations, while increasingemployee health and safetyrisks and affecting laborcosts.operations, andproduction, leading tobusiness interruptions orincreased costs.As the carbon tradingmarket gradually improves,carbon costs are likely toincrease significantly due topolicy influences.
The industry’s greentransformation places higherdemands on the Company’sinnovation and R&D level,and may increase theCompany’s technologicalinvestment.
Operations,Downstream
The Company’s productionbases are mainly located inInner Mongolia, Anhui,Hunan, and Sichuan.Extreme weather eventssuch as heavy rain, drought,and landslides may damageThe Company’s facilities,employee safety, operations,and production, leading tobusiness interruptions orincreased costs.
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61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
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Green Mines: To be a Green Pioneer2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Transformation risks
Market Risk
Short,mediumand longterm
DownstreamMiddleMiddleHigh
High
Note:
1.Probability of occurrence: refers to the frequency interval and possibility of risk or opportunity occurrence, which is mainly based on the historical
probability of occurrence, external scenarios, progress of policy implementation and expert predictions. Probability of occurrence ranges from lowto high.
2.The size of impact: refers to the size of the impact determined by the impact level and the possibility of risk/opportunity, taking into account
factors such as the impact on the business model, value chain, and financial impact. Effect sizes range from low to high.
3.Time frame of impact: Different risks and opportunities have an impact on the Company. The Company divides the time frame of impact into
short-term(0-1 year), medium-term(1-5 years), and long-term(more than 5 years).
Note: Greenhouse gas emissions are calculated in accordance with Appendix II of the theand the???
4.Impact on the value chain: refers to upstream(involving suppliers, procurement and logistics, etc.), operations(involving production, manufacturing
and internal processes, etc.), and downstream(involving distribution, sales and customer service, etc.).
5.Priority ranking: Taking into account factors such as probability of occurrence, impact size, and impact time range, and combined with the
Company’s actual situation, the priority ranking is divided into low, medium, and high.(Note: The definitions of probability of occurrence, impact, time frame of impact, value chain links affected, and priority ranking in other chaptersof the report are consistent with those above and will not be repeated.)
Based on the importance of assessing climate change risks, Dazhong Mining Co., Ltd identifies, assesses, responds to, monitorsand improves climate change-related risks based on the and combines the advice ofthird-party professional organizations to ensure that the Company can move forward steadily in the process of responding toclimate change.
The Company closely follows the national strategic development needs and steadfastly implements the development philosophyof green, low-carbon, and sustainable. In the future, the Company will methodically advance the carbon neutrality process bysetting short-, medium-, and long-term carbon reduction targets, steadily achieving the goals of climate change management,and contributing to the early realization of the national dual carbon strategic goals.
Referencing the disclosure framework recommended by theTask Force on Climate-related Financial Disclosures(TCFD),identify the types of risks and opportunities the Companyfaces from the three major categories of physical risks,transition risks, and opportunities, and compile a climatechange risk/opportunity inventory.
For each identified risk and opportunity, assess theprobability of occurrence, magnitude of impact, time frameof impact, and the impact on the value chain and finances.
Develop different response strategies based on thecharacteristics and impact levels of the risks to ensure theCompany’s business operates robustly.
Continuously track and monitor the implementation of riskresponse measures and changes in risk status.
Risk IdentificationRisk Assessment
Risk ResponseMonitoring and Improvement
Impact, Risk and Opportunity Management
Metrics and Targets
Greenhouse Gas Emission IntensityTotal Greenhouse Gas Emissions(Scope 1 and Scope 2)Direct Greenhouse Gas Emissions(Scope 1)Indirect Greenhouse Gas Emissions(Scope 2)
tCO2e/RMB10,000tCO2etCO2etCO2e
0.6321
242,892.8720,458.08222,434.80
2024UnitMetrics
RiskType
Risk Description
Probability ofOccurrence
ImpactMagnitude
Timeframeof Impact
ImpactedValue Chain
Segment
PriorityRanking
PotentialFinancial
Impact
Response Measures
Opportunity
Type
Opportunity Description
Probability ofOccurrence
ImpactMagnitude
Timeframeof Impact
ImpactedValue ChainSegment
PriorityRanking
PotentialFinancial
Impact
ResponseMeasures
Reputational risk
Downstream customers’demand for low-carbonproducts may increasetheir requirements forthe Company’s productsand services, therebycausing fluctuations inthe Company’soperating income.Climate change maytrigger public concernabout companies’environmentalawareness andresponsibility. Ifcompanies fail to takeeffective measures toaddress climate change,their reputation may bedamaged, which in turnaffects brand value andcustomer trust.
Climate change encouragescompanies to increase theproportion of clean energy use andpromotes corporate participation inthe carbon trading market.
Downstream customers’ preferencefor low-carbon products increasesmarket demand for the Company’sproducts and services.
Climate change brings the needand opportunity for technologicalinnovation to enterprises, drivingthe continuous emergence oflow-carbon and energy-savingtechnologies.
According to marketdemand and policyguidance, we adjusted ourproduct portfolio and servicemodel and activelydeveloped the Company’slithium mining business.Strengthen the Company’sinternal environmentalmanagement and strictlyregulate production andoperation behaviors throughenvironmental protectionsystems; strengthencommunication with externalstakeholders and demonstratethe Company’s actions inenvironmental protection.
Optimize energystructure, increasethe proportion ofclean energy use.Increase R&Dinvestment, enhancethe strength of theR&D team, andstrengthentechnologicalinnovation and R&Dcapabilities.Enhance competitivemarket position andadapt to changes incustomerpreferences.
Decline inoperating
income
Operating
incomedecreased;Impairmentof goodwill
Reducedoperating
costs,increasedrevenuesourcesIncreasedoperatingincome;reducedoperating
costsIncreasedoperating
income
LowLowMiddle
MiddleMiddle
Shortandmedium
term
Shortandmedium
term
Mediumand long
term
Mediumand long
term
Operations
Operations
Operations
EnergySubstitution
TechnologicalOpportunity
MarketOpportunities
HighHigh
High
HighHigh
High
Operations,Downstream
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13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44
45 46 47 48 49 50 51 52 53 5455 56 57 58 59 60
61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108
109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124
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Green Mines: To be a Green Pioneer
2024 Environmental, Social, and Governance (ESG) Report
Dazhong Mining Co., Ltd.
Dazhong Mining Co., Ltd strictly focuses on the management of greenhouse gas emissions in production and operations, withthe main types of greenhouse gas emissions being carbon dioxide, sulfur dioxide, and nitrogen oxides. In the implementation andadvancement of greenhouse gas management, the Company prioritizes achieving emission reduction targets, continuouslyincreasing investment in technological upgrades, and actively seeking innovative applications of clean energy.
The first phase of the photovoltaic project (5.9 MW) in the Shujigou Mining Area and Dongwufenzi Mining Area in theInner Mongolia region of the Company has been connected to the grid, and the first phase of the photovoltaic project (5.9MW) in the Shanpiangou Pyrite Mining Area has been completed. The first phase of the photovoltaic project (5.9 MW) inthe Zhouyoufang Mining Area in the Anhui region has been connected to the grid, and the second phase of thephotovoltaic project (5.9 MW), except for the North Air Shaft, has been completed and is undergoing trial operation.As of the end of the reporting period, the Company’s total photovoltaic power generation reached
26.67 million kWh. Among
them, Dazhong Mining Co., Ltd’s Inner Mongolia region generated a total of 11.95 million kWh of photovoltaic power,reducing carbon dioxide emissions by 9,810.95 tCO2e and saving a cumulative electricity cost of 8.82 million yuan; AnhuiJinrisheng Mining Co., Ltd. generated a total of 9.41 million kWh of photovoltaic power, reducing carbon dioxide emissionsby 7,725.61tCO2e and saving a cumulative electricity cost of 4.8 million yuan; Inner Mongolia Jinhui Rare Ore Co., Ltd.generated a total of 5.31 million kWh of photovoltaic power, reducing carbon dioxide emissions by 4,359.51tCO2e.
Dazhong Mining Co., Ltd and its subsidiaries jointly implement green office strategies, enhance employees’ environmentalawareness, and are committed to building a low-carbon, efficient, and healthy working environment. Driven by green officeinitiatives, the Company creates a healthier and more comfortable workspace for employees while reducing resourceconsumption and lowering the carbon footprint.
Automatic shutdown of office computers after work
Posting slogans for saving electricity and water
Online video conferencesRecycling old batteries
Cafeteria replaces with smart faucets
Waste sorting implemented in company premises and offices
Greenhouse Gas Reduction InitiativesGreen Office
Case Study
Establishing Photovoltaic Bases toPromote Low-carbon Development
The Company’s action strategies in addressing climate change management mainly include the following key areas:
“”
?Distributed photovoltaic systems are implemented to create photovoltaic bases, increasing the proportion of clean
energy usage.PhotovoltaicPowerGeneration
?Underground ore is transported by rail, achieving power-free ore unloading.
?Systems such as hoists, drainage, ventilation, and compressed air are controlled by PLC to reduce electricity
consumption.
?Production water supply pumps are equipped with variable frequency speed control devices to achieve
effective energy savings.
?Fans use variable frequency speed control, adjusting the appropriate fan power based on underground workingconditions to improve energy efficiency.Technologicaland ProcessInnovation
Energy-savingEquipmentApplication
?Large, electric mining equipment is selected for its high production capacity, efficiency, and low energy
consumption.
?When selecting or replacing equipment, priority is given to new energy-saving equipment; both main ventilation
fans and local fans are energy-efficient models.
?In daily operations, more new energy vehicles are used as official vehicles to reduce carbon emissions.
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29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44
45 46 47 48 49 50 51 52 53 54 55 5657 58 59 60
61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108
109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124
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Green Mines: To be a Green Pioneer
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Key Performance
Environmental Protectionand Pollution Prevention
System Certification Status
Environmental Protection Training
Dazhong Mining Co., Ltd deeply implements the development concept of environmental protection, respects nature, conforms tonature, and protects nature. The Company continuously strengthens its environmental management system, strives to improvethe efficiency of pollutant and waste treatment, strictly controls the emission standards of various discharges, and effectivelysupports and promotes the green concept of sustainable development through concrete and powerful measures.
Dazhong Mining Co., Ltd and its subsidiaries attach great importance to reducing the direct environmental impact of theirbusiness activities. As active advocates and practitioners of environmental protection, the Pellet Branch has been awarded thehonorary title of Autonomous Region-level Green Factory. During the reporting period, the Company and its subsidiaries, AnhuiJinrisheng Mining Co., Ltd. and grand-subsidiary Anhui Zhongsheng Metal Pellet Co., Ltd. have passed the ISO 14001Environmental Management System certification.
During the reporting period, the Company conducted multi-level environmental protection training sessions. The training contentcomprehensively covered key areas such as air pollution prevention, radiation source safety management, water pollution control,and standardized solid waste disposal, effectively enhancing the environmental awareness and professional skills of allemployees.
Dazhong Mining Co., Ltd and its subsidiaries strictly comply with the ¤, and other laws and regulations, and haveformulated a series of systems such as the and Environmental ¤The Company hasestablished a clear environmental management structure with well-defined responsibilities for each department and unit toprevent environmental pollution and ecological damage. Each subsidiary strictly implements environmental protection inspectionand supervision work according to the and evaluates and assesses theenvironmental protection work in the production and operation of each unit through the establishment of a quantitativeassessment form.
During the reporting period, the company's environmental protection equipment and facilities operated normally, environmentalprotection efforts advanced in an orderly manner, and there were no incidents of significant impact on the company'sproduction and operations due to environmental issues.
Dazhong Mining Co., Ltd ISO 14001Environmental Management System
Certification
Anhui Jinrisheng Mining Co., Ltd. ISO 14001
Environmental Management System
Certification
Zhongsheng Metal Pellet Co., Ltd ISO 14001
Environmental Management System
Certification
Governance
?Responsible for participating in Dazhong Mining Co., Ltd’s environmental protectioninspection work.?Responsible for supervising and urging the rectification and feedback of environmentalprotection hazards within the scope of assigned business.Each Center andDepartment
?Organize or participate in environmental protection inspections of Dazhong Mining Co., Ltd
in accordance with inspection requirements.
?Responsible for implementing the rectification, feedback, and archiving of hazardsdiscovered during environmental protection inspections.?Develop annual environmental protection plans and budgets, clarifying environmentalprotection goals, tasks, and measures.?Incorporate environmental protection publicity, education, and training into the annualtraining plan, actively organizing the participation of unit leaders, managers, and technicalpersonnel in environmental protection-related training.
?Responsible for formulating the annual environmental protection supervision andinspection plan and organizing its implementation.?Responsible for organizing each center and department to form inspection teams and
carry out comprehensive inspection work.?Responsible for urging units with hidden dangers to complete rectification on time,
reviewing the rectification of hidden dangers, forming closed-loop management, and
establishing management archives.
Safety and EnvironmentalProtection Department
By the end of the reporting period, the Company had conducted 4 environmentalprotection training sessions, with a total of 225 participants and a total training durationof 900 hours.
Each Subsidiary andBranch Company
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77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
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Green Mines: To be a Green Pioneer
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Management MechanismDazhong Mining Co., Ltd places great importance on environmental protection and pollutant emission control. the Companyconducts in-depth analysis, identifies and addresses potential risks and opportunities in the environmental protection process,continuously improving management levels to maximize resource efficiency while minimizing adverse environmental impacts.
Dazhong Mining Co., Ltd and its subsidiaries have formulated and implemented the
establishing a comprehensive mechanism for identifying, evaluating, updating, and managing environmental
risks throughout the lifecycle of the Company’s product production, activities, and services.
Each year, the Safety and EnvironmentalProtection Department organizes variousdepartments to identify, summarize, andupdate environmental factors. The identifiedenvironmental factors are categorized intofour major types: pollutant and wasteemissions or generation, energy resourceand raw material consumption, stakeholderenvironmental issues and requirements, andother environmental factors.
A qualitative and quantitative scoringmethod (including six aspects: scope anddegree of impact, probability of occur-rence, community concern, unit outputconsumption, and potential for savings) isused to evaluate each environmentalfactor, resulting in the
The Safety and Environmental ProtectionDepartment formulates specific forsignificant environmental factors. Afterreview, these plans are submitted to theresponsible leader and the generalmanager for approval and inclusion inthe Company’s operational plan.
Emergency Management System
In accordance with national laws and regulations such as the and the
, Dazhong Mining Co., Ltd has established an environmental
accident emergency system and formulated the and the
to prevent and reduce the occurrence of emergency
environmental incidents and strengthen the response and handling of such incidents. In the event of an emergency
environmental incident, the heads of each center, department, subsidiary and branch company must report to Dazhong Mining
Co., Ltd’s Safety and Environmental Protection Department within 1 hour and submit a written
within 12 hours, with penalties imposed on the responsible parties. The Company and its subsidiaries conduct emergency drills
annually. In the Inner Mongolia region of Dazhong Mining Co., Ltd, one to two emergency drills for sudden environmental
incidents are organized each year. Before the drills, training is conducted first, followed by a desktop emergency drill for sudden
environmental incidents, and then an on-site emergency drill for sudden environmental incidents.
Note：1. Environmental Factor: An element of an organization’s activities, products, and services that interacts with or can interact with the
environment.
2. Significant Environmental Factor: An environmental factor that has or can have one or more significant environmental impacts.
EnvironmentalFactor Identification
EnvironmentalFactor Assessment
EnvironmentalFactor Control
Impact,Risk and Opportunity ManagementStrategy
RiskType
Risk Description
Probability ofOccurrence
ImpactMagnitude
Timeframeof Impact
ImpactedValue ChainSegment
PriorityRanking
PotentialFinancialImpact
Response Measures
Type ofopportunity
Opportunity Description
Probability ofOccurrence
ImpactMagnitude
Timeframeof Impact
ImpactedValue ChainSegment
PriorityRanking
PotentialFinancial
Impact
Response Measures
Technical risks
Reputational risk
Policysupport
Resilience
Mediumand longterm
Short andmediumterm
Short andmediumterm
Mediumand longterm
Increasedoperatingcosts
Decrease in
operatingrevenue,impairmentof goodwill
Reductionin operating
costs
Reductionin operating
costs
Operations
Operations
Operations
Operations,Downstream
Middle
Middle
Middle
Middle
LowLow
High
HighHigh
High
High
High
The complex diversity ofmine waste makes thecomprehensiveutilization of tailings andwaste rock dependenton a high level oftechnical expertise.Public concern forenvironmental protectionis continuouslyincreasing, and anyenvironmental issueswithin the Company maytrigger negative publicopinion, affecting theCompany’s image.
The government hasintroduced a series of policiesto support the greendevelopment andcomprehensive utilization ofresources in miningenterprises, and the Companycan obtain governmentsubsidies and incentives.The Company emphasizesenvironmental protection andthe construction of greenmines, strictly controllingitself to comply with nationalrequirements and enhanceenvironmental resilience.
Continuously update and applyadvanced technologies, andincrease professional technicalpersonnel for maintenance andmanagement.Develop detailed and strictcontrol measures for thetreatment of waste andpollutants, including monitoring,classification, storage,transportation, treatment, anddisposal, implementingfull-process management.
Pay attention to thepolicies introduced bythe government,actively respond torelevant calls, and takepractical actions toincrease environmentalprotection investment.Promote thecomprehensive upgradeof green mines throughintelligent construction.
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13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44
45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108
109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124
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Green Mines: To be a Green Pioneer
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Environmental ProtectionInvestmentSolid Waste Utilization RateWastewater DischargeWaste Gas Emission
Continue to increase environmental protectioninvestment100% compliance rate for the disposal of garbage,fertilizer pool residue, waste oil, and other solid wasteContinue to maintain zero discharge≤3000 tons/year
The Company’s total environmental protectioninvestment is 115.1275 million yuan
100%Zero dischargeGoals Achieved
2024 Annual SituationGoalsMetrics
Waste Gas EmissionWaste gas emission intensity
TonTon/RMB 10,000
155,838.6
0.375
106,807.3
0.267
342,066.0
0.890
202220232024UnitIndicator name
Nitrogen Oxides(NO
X
）Sulfur Oxides(SO
X
）Particulate Matter(PM）
TonTonTon
818.9
546.8
324.1
106.1
136.8
19.7
284.0
289.2
12.1
202220232024UnitIndicator name
Waste Gas Management
Wastewater Management
The safety and environmental protection department ofDazhong Mining Co., Ltd is responsible for formulatingwaste gas pollution prevention plans and assistingrelevant units in completing feasibility studies, schemedemonstrations, and project implementation for majorgovernance projects. In the two major production basesin Inner Mongolia and Anhui, the Company mainly setsup monitoring points based on functional zoning andgrid layout principles, combined with the meteorologicalconditions and terrain characteristics of the plant area.The Company signs annual monitoring contracts withqualified monitoring units and formulates monitoringplans, conducting atmospheric monitoring quarterly andissuing inspection reports.The Company’s waste gas is mainly generated duringunderground drilling and blasting; ore stockpiles, wastedumps, and tailings ponds may produce a certainamount of dust; dust is generated during the crushingand screening of ore; and heating boilers produce sulfurdioxide-containing smoke.
In the Company’s daily production and operation processes, three main types of wastewater are generated: mining wastewater,mineral processing wastewater, and domestic sewage, including underground water inflow, equipment cooling water, overflowwater from the concentrator pool of the mineral processing plant, filling station wastewater, dust removal wastewater, floorwashing water, boiler discharge water, tailings pond overflow water, etc. The Company has established a strict wastewatertreatment mechanism to properly handle various types of wastewater.
Dazhong Mining Co., Ltd strictly manages environmental protection-related work. The Company formulates environmentalindicators and goals based on actual production and operation conditions to ensure that the Company’s environmentalconstruction and emission management levels are leading domestically. Through technological innovation and the improvementof environmental protection facilities, achieve zero discharge or resource utilization of wastewater, waste gas, and solid waste.
Metrics and Targets
Emission Management
Measures to reduce dust and harmful gas emissionsWet operation is used during underground rock drilling.Spraying water is used at ore loading and unloading sites, waste rockyards, and other dust-producing points.The crushing and screening workshops of the concentrator are fullyenclosed, and dust hoods and mechanical reverse-blowing flat bagdust collectors are installed at each dust-producing point.The boiler room corridor has been fully enclosed and retrofitted intoa biomass boiler through technical upgrades. The system is equippedwith cloth dust collector with bi-alkaline desulfurization facilities,achieving a dust removal efficiency of 95%.The tailings pond utilizes a multi-point discharge system for dustsuppression, with geotextile blankets installed on the slopes andvegetation planted to enhance greening.The exhaust gas treatment at Inner Mongolia Jinhui Rare Ore Co.,Ltd. employs electrostatic precipitators (ESP) combined with analkali-based desulfurization process.The tail gas treatment of Inner Mongolia Dazhong Mining Co., Ltd.Pelletizing Branch utilizes electrostatic precipitation combined with thelimestone-gypsum desulfurization process.
Underground water inflow is utilized as a source for production water supply, with zero external discharge.Production wastewater is collected in the turbid circulating water reservoir of the concentrator and reused for mineralprocessing production, with no external discharge.The overflow water from the tailings pond is clarified and returned to the return water tank via the return water chute, thenpumped back to the concentrator for reuse by the return water pump station, with no external discharge.After preliminary treatment in the grease trap and septic tank, domestic sewage, along with boiler drainage, is sent to thedomestic sewage treatment equipment and discharged into the 10,000-ton water tank, then reused in the mineral processingprocess, with no external discharge.The desalinated water from Inner Mongolia Jinhui Rare Ore Co., Ltd. is mixed with circulating cooling water and dischargedinto the industrial park’s sewage pipeline network.The cooling water from Dazhong Mining Co., Ltd. Pelletizing Branch is recycled, with no external discharge.
Wastewater TreatmentMechanism
Waste gas emission status
Emission status of waste gas pollutant types
Key Performance
In terms of wastewater management, the Company recycleswastewater through multi-stage filtration and reuse, achievingzero discharge of wastewater.
During the reporting period, thewastewater recycling rate was100%.
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Waste ManagementThe Company strictly adheres to the and the environmental protection standards stipulated by the national environmental protection administrative department.The Safety and Environmental Protection Department is responsible for supervising the classification and centralized disposal ofsolid waste generated during the production process by various units. The Company and its subsidiaries promptly designateresponsible persons to improve the classification, collection, and disposal of general industrial solid waste and hazardous wastegenerated during the production process according to the acceptance report requirements. At the same time, relevant ledgershave been established and improved to ensure that the ledger records are consistent with the on-site waste quantities.The Company’s solid waste mainly includes mining waste rock, tailings, dust collected by the mineral processing dust removalsystem, and boiler ash.
Actively apply the national technical policies for theprevention and control of industrial solid wastepollution, adopt advanced production processes andequipment for the prevention and control ofindustrial solid waste pollution, and take measuresto prevent and control industrial solid wastepollution.
Reasonably select and utilize raw materials, energy,and other resources, adopt advanced productionprocesses and equipment, and reduce thegeneration of industrial solid waste.
For hazardous waste, the Company has established management mechanismssuch as the in accordance with relevantlaws and regulations such as the and the to standardize the collection, storage, transfer, and disposal ofhazardous waste, prevent environmental pollution, maintain ecological safety, andensure personnel health. The Company’s hazardous waste mainly includes wastemineral oil and waste mineral oil barrels, primarily from mechanical equipmentmaintenance, replacement, lubrication, etc.; tar residue, acid sludge, wastecatalysts, waste acid solutions, etc. Each production unit and departmentestablishes its own hazardous waste ledger to manage its hazardous waste. Eachhazardous waste generating unit regularly conducts emergency drills for suddenenvironmental incidents involving hazardous waste.
Key PerformanceTotal general solid wastegenerated:
4,704,333.30 tons,
with 100% compliantdisposal rate.Total hazardous wastegenerated: 67.04 tons,with 100% compliantdisposal rate.
General Solid Waste Management
Dazhong Mining Co., Ltd Hazardous Waste Management Flowchart
Measures shall be taken to prevent rain, leakage andfire. Hazardous waste signs shall be set.Hazardous waste is stored in a temporary storage areafor hazardous waste by specific personnel designatedby the generating organization.it shall be categorizedaccording to the type of hazardous waste, managedby specific personnel and distinctly marked.If the storage volume in the temporary storage areareaches 0.5 tons, the items shall be transferred to theTemporary Repository of Hazardous Waste and filed onthe machine account.
Measures shall be taken to preventrain,leakage, andfire.Hazardouswastes that are easily flown and volatileshall be stored in closedcontainers. The period for tempo-rary storage of waste shall not exceed one year.Containers, packaging. collection,storage,transporta-tion,disposal equipment, and disposal sites of hazardouswaste shall be marked with hazardous waste signs.Other items are prohibited to place: fire-fighting equip-ment and hazardous waste signs shall be available.The site shall be clean and items shall be stacked neatlyand orderly..It is prohibited to pile up hazardous wastes in undesignat-ed places.
Registration of hazardous waste
Temporary Repository of Hazardous Waste
If the storoge volume in the Temporary Repository ofHazardous Waste reaches five tons, the items shall betransferred and filed online on time and following theregulations.The safety and Environmental Protection Departmentshall handle relevant procedures following the law ofthe People's Re.public of china on Prevention andcontrol of Environmental Pollution by Solid Wastecontacting the hazardous waste disposal agency andsigning the disposal contract.After the government authorities approve the transfer,the disposal agency may be contacted for the transferand records shall be made on the ledger.
Transfer and disposal of hazardous waste
Fill in the Record of Hazardous Waste
Temporary Repository of Hazardous Waste
Hazardous waste generated in the production process shallbe stored in the Temporary Re-pository of Hazardous Waste:
its inbound and outbound ledger shall be managed bydesignated personnel and recorded online in real-time.
Urge construction and construction units topromptly remove and dispose of solid wastegenerated during the construction process toprevent environmental pollution.
Urge equipment maintenance units to classify andcollect solid waste generated during themaintenance process for centralized disposal.
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Satellite Image of the Surrounding Environment of the Tailings Pond
Noise Management
The Company conducts environmental risk and safety risk investigations and assessments for tailings ponds at its two major iron ore productionbases in Inner Mongolia and Anhui. For identified environmental risks or accident hazards, the Safety and Environmental Protection Departmentissues a hazard rectification notice and actively rectifies them according to the Three Fixes Principle to ensure that environmental safety hazardsare eliminated in the bud. For major hazards that cannot be rectified temporarily, preventive measures and rectification plans should beformulated, conspicuous signs should be set up, a major hazard source file should be established, and emergency rescue plans should bedeveloped and continuously practiced.
Dazhong Mining values the role of circular economy in the Company business model. Unlike the traditional“acquisition-manufacturing-use-disposal” linear mode, the Company promotes the construction of sustainable developmentthrough circular economy, and strives to reduce the mining and consumption of natural resources, and reduce the consumptionintensity of energy and water resources.Dazhong Mining Co., Ltd attaches great importance to tailings management. In accordance with the requirements of relevantlaws and regulations such as the GB39496-2020 (Document No. 4, 2022, National Mine SafetyAdministration), the and the the Company and its subsidiaries have formulated the They conduct risk impact assessments throughout the operation of tailingsponds and implement appropriate management measures.To effectively prevent safety accidents in tailings ponds, the subsidiary Anhui Jinrisheng Mining Co., Ltd. established a SafetyProduction Committee for the Daqiaowan Tailings Pond. The primary responsible person for the tailings pond is the first personresponsible for the safe operation of the tailings pond and is fully responsible for the safety of the tailings pond.
Tailings Management
Dazhong Mining strictly complies with we have formulated to strengthen energy efficiency in electricity management and reduce energy consumption, tapconsumption reduction potential, improve energy utilization efficiency, and achieve sustainable development goal of reducingcost and increasing efficiency. Meanwhile, the Company has established a strict investigation and assessment mechanism toclarify the responsibilities of department. The Management and Control Department and Subsidiaries Mobile ManagementDepartment are responsible for carrying out regular inspection on all aspects of energy utilization, and punishing relevantresponsible persons for corresponding amount in case of non-compliance.
Governance
Circular Economyand Resource Utilization
Noise Pollution Prevention Measures
When purchasing production and auxiliary equipment that generates environmental noise, consider design requirements and useequipment with noise reduction, sound insulation, and vibration damping measures to ensure environmental noise meets standards.Under economically and technically feasible conditions, implement noise reduction measures, promote new technologies, and phase outprocesses and equipment with severe environmental noise pollution to ensure environmental noise meets emission standards.The Management Control Department comprehensively manages traffic vehicle noise within the plant area, sets up warning signs tolimit vehicle noise, informs vehicles entering the plant area about relevant noise control regulations, and penalizes non-compliantvehicles.Each production unit and department is responsible for the normal operation of its equipment and the daily maintenance ofenvironmental noise pollution prevention facilities, ensuring equipment is in good condition to reduce noise pollution. If noise reductionequipment fails, it must be reported to the Mechanical Power Department immediately, and repairs must be organized promptly.The engineering department is responsible for making requirements to relevant parties during the construction process to ensure thatthe noise levels and emission times of construction activities comply with the construction site noise standards.For high-noise job positions, personal protection should be strengthened, and noise protection equipment should be provided.
Risk of Tailing Ponds and Emergency Management
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?Responsible for organizing the formulation of Dazhong Mining’s medium and long-term energy-saving plans and energy consumptionindicators for subsidiaries;?Responsible for organizing the investigation, evaluation, and diagnosis of the current energy utilization status of subsidiaries, and
formulating energy-saving plans;?Responsible for organizing internal and external experts to conduct energy-saving review and demonstration for investment projects;?Responsible for the initiation, budget review, and post-project evaluation of energy-saving technological transformation projects.
Dazhong Mining is actively promoting the efficient utilization of resources and deeply identifying and analyzing the risks andopportunities the Company may face. The Company not only focuses on the current business situation but also proactivelyadapts to the trend of the circular economy, exploring new paths for sustainable development.
?Responsible for formulating Dazhong Mining’s annual energy-saving plan;?Responsible for the implementation and assessment of energy consumption indicators;?Responsible for regular statistical management and data analysis of energy utilization, and supervising the regular inspection and daily
maintenance of energy metering equipment in subsidiaries.
?Responsible for decomposing the unit's energy consumption indicators to various factories, workshops, and processes, and formulating
energy consumption indicators for each process;
?Responsible for improving the allocation and management of energy metering instruments in the unit;?Responsible for the maintenance of energy metering equipment and the updating of energy metering ledgers in the unit.
StrategyPlanning and EngineeringConstruction Department
Operations Management Center，Business Dispatch Department
Subsidiaries
Dazhong Mining attaches great importance to energy use structure andenergy efficiency. Within reporting period, the Company has passed ISO50001energy management system certification, and carried outcomprehensive diagnosis on Company process technology equipment, energyutilization efficiency, energy management system, etc., to find the potentialof company energy efficiency in electricity and further improve energyefficiency and Energy efficiency in electricity management level.
Dazhong Mining ISO 50001 EnergyManagement System Certification
OperationOpportunity
RiskType
Risk Description
Probability ofOccurrence
ImpactMagnitude
TimeFrame of
Impact
ImpactedValue ChainSegment
PriorityRanking
PotentialFinancialImpact
Response Measures
Opportu-nity Type
Opportunity Description
Probability ofOccurrence
ImpactMagnitude
TimeFrame ofImpact
ImpactedValue Chain
Segment
PriorityRanking
PotentialFinancial
Impact
Response Measures
Physical RisktPolicy RiskOperational Risk
TechnologicalOpportunity
Mediumand long
term
Mediumand long
term
Longterm
Shortandmedium
term
Short,mediumand longterm
Increase inoperatingcosts
Increase inoperating
costs
Increase inoperating
costs;Impairmentof goodwill
Increasedoperating
income
Reducedoperating
costs
Operations
Operations
Downstream
Operations，Downstream
Operations
Low
LowLow
Medium
Medium
LowHigh
High
HighHigh
HighHigh
High
High
High
If persistent drought occurs,causing a decline in thegroundwater level, theCompany's production andoperations will be affected.New policies may increaseenergy usage costs (such ascarbon taxes) or energycompliance costs, therebyaffecting the Company’s coststructure and energy budget.Improperly managedabandoned mining areas maycause long-term damage tosurrounding land andecosystems.
Adopting cutting-edge energytechnologies drives innovationand competitive differentiationfor companies.Promoting circular resourceutilization enables thecompany to reduce costs andenhance operationalefficiency.
Maximize internalwastewater recyclingand reduce wastewaterdischarge.Adjust energy strategy,optimize energy usestructure, and increasethe proportion of cleanenergy usage.
Enhance technologicalinnovation capabilitiesand expand R&D teams.Boosting energyefficiency throughenhanced conservationmeasures and innovativerecycling processesdrives continuous energycost reduction.
Establish tailingsmanagement regulations,develop emergencymeasures, and regularlyassess the environmentalconditions of tailings.
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To ensure the effective process of resource recycling and control potential risks, Dazhong Mining has established a series ofsafeguard mechanisms to enhance the Company’s risk response capabilities and continuously strengthen the efficiency ofresource utilization.
In order to strengthen material management, eliminate the accumulation of materials in secondary warehouses, timely return waste and oldmaterials, and avoid loss and waste of materials, the Company has formulated the to further improve the utilization rate of materials and reduce production costs. The Management Control Department of the Companyis responsible for the recovery, classification, sorting, storage, and disposal of returned old materials, as well as supervising, inspecting, andassessing the implementation of the returning old materials and receiving new ones by each material usage unit.For the scrap metal materials generated during production operations and engineering construction, Dazhong Mining has formulated the The Management Control Department regulates the entire process from identification, transfer,classification, and storage to sale and disposal, promoting the normalization of disposal practices and timely recovery of disposal funds. At thesame time, rewards will be given to units and individuals that actively sort and recycle scrap metal.For general solid waste, we adopt a “turning waste into treasure” strategy. Among the solid waste generated by the Company, mining waste rockis used for environmental management of surface subsidence areas; approximately 98% of the beneficiation tailings are filled into undergroundgoafs, while the remaining small amount of tailings is stored on a qualified anti-seepage layer.
Dazhong Mining sets quantitative indicators and targets for various resources, ensuring the Company’s resource utilizationefficiency reaches a leading domestic level through technological innovation and energy efficiency improvement.
the Company identifies and summarizesresource utilization risks throughout theentire process of resource acquisition,utilization, and processing.
Based on the likelihood of riskoccurrence and the potential impact, weconduct detailed assessments andcategorizations of risks that may arise ateach stage.
Each department systematically reviewsthe identified risks and formulatescorresponding risk response strategies forkey risk points.
Impact,Risk,and Opportunity Management
Recycle Waste
Metrics and Targets
EnergyUtilization
WaterResources
Improve the comprehensive recovery rate of iron ore, iron concentrate, and sand materials.
Enhance energy utilization efficiency, reduce energy consumption, and save energy costs.
Improve water resource utilization efficiency and save water resource costs.
Inner Mongolia and Anhui production bases:Total ore volume increased by 15,549,041 tons, iron concentrate by3,766,599.39 tons, and sand materials by 3,676,380 tons.
Anhui production base: Total electricity consumption of 261 million kWh, total electricity cost of 180 million yuan,average electricity price of 0.68 yuan/kWh, a decrease of 0.01 yuan/kWh compared to 0.69 yuan/kWh in 2023, saving
2.61 million yuan in electricity costs.
Inner Mongolia production base: Through real-time multilateral electricity trading, a total of 199.01 million kWh ofelectricity was traded, reducing the purchase price by 0.0313 yuan/kWh compared to 0.31 yuan/kWh, resulting in areduction of 5.074 million yuan in electricity costs.
Anhui production base: Water consumption in 2024 decreased by 38.75% compared to 2023, with costs decreasingby 22.87%, saving 207,300 yuan in water costs.Inner Mongolia production base: Collected overflow water and transported it back to the workshop for use, totaling115,200 m?; reduced new water costs by 272,000 yuan.
CircularEconomy
Target
Target
Target
Completion status in 2024
Completion status in 2024
Completion status in 2024
Risk IdentificationRisk AssessmentRisk Response
Jinrisheng Mining
Dazhong MiningJinhui Rare MinePellet Branch/Zhongsheng Pellet
Waste Rock and
TailingsOre Dressing Dust
Boiler AshWaste Rock and
TailingsPyrite Concentrate
Dust and Waste
Classified by diameter size as different building materials for export, generating benefitsAll returned to the beneficiation systemUsed for road paving in the plant area or back filling in subsidence areas
Comprehensively utilized as raw materials for large and medium-sized pellet plantsReused as raw materials
CompanyWasteRecycling Methods
All waste rocks enter the stone production workshop, processed into various sizes offinished stone products for external sales. Unsaleable stone powder is used for backfillingand remediation of mine subsidence pits. Most of the tailings are used for backfillingunderground goafs, and a small portion is discharged into the tailings pond for storage.
Mobile crushing station processes stone materials, turning waste into treasure
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Dazhong Mining Co., Ltd.
ElectricalEnergyEfficiency
Energy-savinglightingsystem
The project is planned to be completed and put into use by the end of August 2025, with an expected constructionscale of processing 500,000 tons/year of secondary high-intensity magnetic tailing, and an annual increase of 50,000tons of iron concentrate with 55% grade. We plans to increase the production of iron concentrate with a grade of 55%by 16,700 tons in 2025, achieving a benefit of 8.03 million yuan.
The Company is committed to promoting the green and low-carbon transformation of energy, optimizing the use of energy,meanwhile, refining energy management, and continuously improving the utilization efficiency of energy.
To ensure safe production, ordinary loaders are prohibited from entering the area within the lintel of the goaf forloading operations. Residual ore in the stope cannot be loaded out. Using remote-controlled loaders can fully recoverresidual ore. the Company plans to increase ore recovery by 60,000-80,000 tons in 2025, increase iron concentrateproduction by 18,000 tons, and increase annual benefits by 7 million yuan.
Improve Energy Efficiency
Use energy-saving building structural materials, appliances, and products to improve thermalinsulation performance and reduce energy consumption.The walls and roofs of the main factory building should be insulated as much as possible, and thedoors and windows should be well sealed.
Use electrostatic capacitors for step-by-step reactive power compensation to reduce line losses.Select new series of energy-saving transformers and motors, and adopt power electronicsenergy-saving technology.Adopt reasonable process flows for heating, ventilation, air conditioning, and power supplysystems to minimize energy consumption during transit.Choose the location of transformers (substations) reasonably, aiming to position them at the loadcenter to minimize distribution distance and reduce cable line losses.Select automatic reactive power compensation devices to ensure automatic adjustment ofreactive power under heavy inductive load conditions, reducing reactive power losses.Use high-quality copper-core cables with large current-carrying capacity and low line losses toreduce line losses.Replace with permanent magnet motors, replacing old power cores with high-efficiency andenergy-saving operation.
For lighting in workshops and welfare facilities, try to use fluorescent lamps, sodium lamps, orother high-efficiency light sources. Select high-efficiency, long-life, safe, and stable-performanceelectric light sources, lamps, wiring materials, dimming control equipment, and light controldevices, which improve illumination, save electricity, enhance lighting quality, and benefit theenvironment and human health.Use solar lighting devices for outdoor road lighting.
Key Performance
During the reporting period,The Inner Mongolia Mine’s total ore lifting volume was 7,401,108 tons,iron concentrate was 1,909,989.34 tons ,pellets was 1,050,130 tons ,sand and stone materials were 547,500 tons .During the reporting period,The Anhui Mine’s total ore lifting volume was8,147,933 tons,
iron concentrate was 1,856,610.05 tons,sand and stone materials were 3,128,880 tons.During the reporting period,Jinhui Sulfuric Acid Plant used326,500 tons of sulfur concentrate as raw material,
produced 363,100 tons of sulfuric acid, 246,500 tons of roasted iron powder, 490,200 tons of steam,and generated 69.1033 million kWh of electricity.
Case Study
Fine-grained iron tailings recovery projectat Zhouyoufang Beneficiation Plant
Case Study
Application of remote-controlledloaders at Zhouyoufang Mine
BuildingEnergyEfficiency
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Water Source Protection
Water-saving Measures
The Company’s mining area primarily uses surface water for production. To effectively protect the ecological environment ofwater source areas, the Company requires that water source areas should be located in areas where water quantity and qualityare guaranteed and where it is easy to implement water source environmental protection. In river sections with relatively lowturbidity, or where conditions allow for the construction of sand peak avoidance and regulation facilities, water intake pointsshould be set up, and they should comply with the national current standard . Within a5km radius of the Company, there are no environmentally sensitive targets such as nature reserves, scenic spots, water sourceprotection areas, etc., and there are no perennial surface water systems.
Dazhong Mining’s Inner Mongolia region has submitted a “Water-saving Enterprise Report” and related documents to localgovernments, detailing the Company’s water-saving actions, and has initiated the application process for water-saving projectswithin the enterprise. Through technological upgrades and the use of new equipment, the Company is committed to reducingwater resource consumption.
Shujigou MiningAreaZhouyoufangMining Area
Installation of skid-mounted integratedmachines for mineral processingThe filling station reduces theconcentration of overflow water through
technical transformationInstallation of water purification
equipment
Daily water saving of600m?
Directly transported to the ShujigouMineral Processing Plant for use, reducing
water evaporation and wasteDaily water saving of600 tons
Renewable Energy ConsumptionPhotovoltaic Power GenerationProportion of Renewable Energy usageTotal Direct Energy ConsumptionDieselTotal Indirect Energy ConsumptionPurchased ElectricityTotal Energy ConsumptionEnergy Consumption Intensity
tcekWh
%tceTontcekWhtcetce / RMB 10,000
---6,724.084,614.761,156.75497,613,91167,880.83
0.1633
1,054.458,579,700
1.61
9,212.086,322.255,048.94447,916,553
65,315.47
0.1631
3,277.3726,667,000
5.14
9,478.00
6,504.750,945.28414,526,269
63,700.65
0.1658
Energy Consumption Status
202220232024UnitIndicator
Mining AreaWater-saving MeasuresWater-saving Effect
typesourcetreatment method
Wastewater Recycling
the Company and its subsidiaries take corresponding treatment measures for different types of wastewater to achievewastewater recycling without discharge.
mining wastewater
mineral processingwastewater
Domestic sewage
Underground water inflowfrom rock aquifers during themining processIndustrial water actively addedduring the ore grinding andselection process
Generated from the dailylives of employees.
Pumped to high-level ponds outside the tunnelfor storage, used for mineral processingproduction at the plantThe mineral processing production adopts acirculating water supply system, with allconcentrate wastewater being reused. Tailingswater is discharged into the reservoir viachutes, and after clarification, it is sent back tothe mineral processing plant for recyclingthrough pipelines.Treated by facilities such as septic tanks andsewage treatment stations, then used forgreening the factory area or for production.
Dazhong Mining deeply recognizes the urgency and criticality of water resource management. We have established awater-saving management mechanism and strictly implemented it. The Company emphasizes maintaining cleanliness andhygiene around water intake points and surface water areas to ensure the purity of water sources; meanwhile, ensuring that keyequipment such as pump sets and motors at water intake points are properly protected, and implementing regular inspectionand maintenance work to ensure the safe and reliable operation of the equipment. Each subsidiary should manage the waterusage of external units (including contractors), adhering to the principle of whoever signs the contract is responsible, signingenvironmental protection agreements, clarifying the environmental requirements related to water usage and drainage, andinforming the personnel of relevant parties upon entry.
Minimize the Consumption of Water Resources
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2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Anhui MineInner Mongolia MineOther production anddomestic water
1,455,157.81,835,949.3
487,318
11,674,85813,161,483.2855,920,000
88.9%
87.8%
99.1%
Circulating waterconsumption(tons)
Water resource recycling rate(%)Fresh water consumption(tons)Classification
Dazhong Mining deeply adheres to the development concept of “Green mountains and clear waters are as valuable as gold andsilver,” and fully promotes the strategy of green mine construction. The Company regards ecological protection and greendevelopment as its core mission, adheres to the path of sustainable development, and focuses on environmental governance andthe creation of green scenic mines.
Dazhong Mining adheres to the principles of resource conservation and recycling in mining, striving to minimize the negativeimpact of mining activities on the geological environment, reduce damage to the surrounding ecology, and maintain biodiversity.Every year, the Company carries out ecological restoration and environmental management based on the formulated by a third-party institution.
Dazhong Mining and its subsidiaries strictly adhere to relevant laws and regulations such as the Moreover, they formulated the?? to standardize the managementprocesses of the design, construction, and operation stages of environmental protection facilities in new, renovated, andexpanded projects, effectively controlling environmental pollution and ecological damage, and protecting environmentalresources. The environmental management of construction projects in Dazhong Mining is divided into the following five majorstages:
Note: 1. “Three Simultaneities”: Article 15, Chapter 3 of the states that theenvironmental protection facilities required for construction projects must be designed, constructed, and put into use simultaneously with the mainproject.The Company actively promotes clean production technology transformation to achieve resource conservation, reduce materialand energy consumption, and minimize the use and emission of toxic and harmful materials, gradually establishing an efficientclean production promotion model based on technological progress. Meanwhile, the Company entrusts third parties to audit theclean production status of the Company and its subsidiaries, and issues audit reports to provide a scientific basis for continuousimprovement of clean production work.As of the end of the reporting period, the Shujigou Iron Mine haspassed clean production audits, with clean production at adomestically advanced level.The relevant reports for Jinrisheng Mining and Jinhui Rare Metals have been completed and arecurrently awaiting review by the relevant government departments.The Company operates in the mineral resource mining and beneficiation industry, positioned at the upstream end of theindustrial chain. Primary raw materials include iron concentrate and by- product sand and aggregates, with minimal usage ofexternal packaging materials.In production and operation process, the Company actively implements the Green Mine Initiative, adopting environmentallyfriendly production processes to reduce the use of toxic/hazardous substances. For instance, the subsidiary Jinrisheng Miningextends the service life of lubricants and recycles gear oil, thereby minimizing the generation of waste mineral oils and otherhazardous materials.
Water Usage
Clean Production
Environmental Management of Construction Projects
Land Resources and Ecological Protection
Green Mines and Ecological Conservation
By 2030, all mines will meet the green mineconstruction standards, and all smelting andprocessing enterprises will meet the greenfactory construction standards.
Zhouyoufang Iron Mine: It has obtained national greenmine certification;Chongxinji Iron Mine: It has obtained Anhui provincialgreen mine certification;Shujigou Iron Mine: It passed the preliminary review bythe Bayannur City Natural Resources Bureau;Dongwufenzi Iron Mine: Plan to carry out certificationwork.
Green Mine Construction Goals2024 Annual Completion Status
“Three Simultaneities” implementation rate 100%100%
EnvironmentalAssessment ofConstructionProjects
Design ofEnvironmentalProtectionFacilities
EnvironmentalProtectionAcceptance Upon
ProjectCompletion
ProjectSupervision andInspectionSupervisionand Control During
Construction
Note: The circulating water consumption for other production and domestic water is relatively high, mainly because Jinhui Rare Minerals, in additionto continuously maintaining the cooling and reaction heat control of sulfuric acid production equipment, also fully utilizes the waste heat generatedduring the sulfuric acid production process for power generation. An additional waste heat power generation system is equipped to recover the heatenergy exchange of the waste heat power generation unit, resulting in a high base circulating load when the two systems operate simultaneously.
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2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
The Company consistently integrates the concept of green mine development throughout the entire process of mineral resourceexploitation and utilization, forming a green mine and tourism-oriented mine model that can be referenced and promoted withinthe industry. Currently, over 500,000 poplar, willow, and elm trees have been planted within the Shujigou Iron Mine area, withmore than 5,000 meters of elm tree walls, achieving a greening coverage rate of over 80% of the area that can be greened. TheCompany plans to fully transform the Shujigou Iron Mine into a garden-style mine within 3 to 5 years and apply for national4A-level tourist attraction status. Both the Jinrisheng Iron Mine Cultural Park and Inner Mongolia Dazhong Mining IndustrialTourism Zone have been certified as AAA-level Industrial Tourism Attractions.
Zhouyoufang Iron MineChongxinji Iron MineNational Green MineAnhui ProvincialGreen MineCertification statusCertification status
As a benchmark enterprise in green mine construction in Anhui Province, Jinrisheng Mining holds mining rights for twomajor sites: the Zhouyoufang Iron Mine and Chongxinji Iron Mine in Huoqiu County. Upholding green developmentprinciples, the company has invested nearly 500 million RMB over the past decade into sustainable mining practices,achieving an 80% vegetation coverage rate across its mining areas.In pioneering the integration of mining and cultural tourism, Jinrisheng Mining has ingeniously developed an industrialtourism site centered on iron mining heritage, realizing a transformative model of "Green Mining + Industrial Tourism."The park features a fully preserved iron ore beneficiation process for visitors to observe mineral extraction firsthand. Itsunique attractions blend spectacular industrial landscapes with the technical precision of ore processing, while theserene Five-Dhyani Buddha Pagoda harmonizes with the auspicious Tibetan Eight Auspicious Symbols, creating adistinctive destination that integrates industrial sightseeing, cultural immersion, and eco-leisure with exceptionalaesthetic and recreational value.
Case Study
Iron Mine Cultural Park – The Ecological andCultural Harmony of Jinrisheng Mining.
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2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Research and Development, Innovation,Information Security and Privacy Protection,Responsible Supply Chain Management
Our Actions
Smart Mines:InnovativeDevelopment for Win-WinDazhong Mining, guided by innovation, is committed to building adistinctive “four modernizations” smart mine, creating a new model ofsafe, efficient, green, and sustainable mining development. In addition,we actively practice responsible supply chain management, ensuring thelegality and environmental protection of mineral resources from thesource, and working with partners to build a transparent, fair, and greensupply chain ecosystem, leading the mining industry towards a moreresponsible and high-quality development future.
SDGs Responded to in This Chapter
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Key Performance
Organizational System
Dazhong Mining closely focuses on the development goals of mechanization, automation, informatization, and intelligence, usinginternet thinking to upgrade and transform the industry:
(1) Promoting the deep integration of sensing technology, automatic control, industrial internet, big data, artificial intelligence,
robots, and other technologies.
(2) Introducing new technologies and models through integrated development to build a smart brain with comprehensive
perception, automatic upload, real-time monitoring, analysis and decision-making, and collaborative control.
(3) Embedding the concept of “digital intelligence” mine development throughout the entire process of mineral resource
development and utilization, and striving to build a distinctive “four modernizations” smart mine, creating a new model of safe,efficient, green, and sustainable mining development, leading the Company towards high-quality development.
Dazhong Mining has always regarded technological innovation as the core driving force of enterprise development, it hasformulated a series of systems such as the and the Through a standardized governance system, the Company can clarify specific contents such as science and technologyproject management, science and technology achievement transformation, intellectual property management, and science andtechnology activities, improve the quality of scientific research and innovation projects, enhance innovation capabilities and thedevelopment and application of innovation achievements, thus forming proprietary technologies and products and enhancing theCompany's core competitiveness.
The Dazhong Mining R&D Team is composed of a group of highlyqualified and professional researchers, they dedicated to the researchand development of mining technology, mineral processing technology,and environmental protection technology. The team possessesadvanced research and development equipment and experimentalconditions, as well as a comprehensive research and developmentmanagement system, making the Company a competitive leader in theiron ore mining and processing industry.
Responsible for formulating the Company’s medium and long-term research and innovation plans, ensuring thatthe research direction aligns with the Company’s overall strategy; responsible for the application, progresstracking, resource allocation, cost collection, and project acceptance of research projects; responsible for themaintenance of high-tech enterprise qualifications and patent management.
The highest decision-making body for the Company’s science and technology management, providing unifiedleadership for the Company’s science and technology management, deciding on science and technologydevelopment strategies, plans, funding, institutional setup, reward schemes, assessments, conference plans, andkey issues in the implementation of major science and technology matters.
The Business Department is responsible for the Company’s science and technology management, performing thefunctions of organizing, managing, and serving the Company’s science and technology work, implementing andcoordinating various science and technology management tasks.
Research and Development Center
Technical Committee
Technology Committee Office
R&D and Innovation Organizational Structure
Governance
R&D and Innovation
R&D CenterTechnical Committee
Office of theTechnical Committee
R&D ProjectManagement Group
R&D Cost Management Group
R&D Project Team
R&D PersonnelAdministration Group
As of the end of the reporting period, theCompany has a total of436 research
and development personnel, accountingfor
11.53% of the total employees.
Below Bachelor’s DegreeBachelor’s DegreeMaster’s Degree
Under 30 years old30-40 years old40-50 years oldOver 50 years old
By Age
38.48%
28.91%
32.61%
Responsibilities of Each Entity
R&D Team Building
By Age
30.96%
29.36%
19.04%
20.64%
1.61%
51.15%
47.25%
By EducationBackground
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R&D Capability
Dazhong Mining adheres to the scientific and technological innovation concept of “intelligent manufacturing for mutual benefit”,actively promoting the research and development philosophy of “mechanization to reduce labor, automation to replace labor”.The Company and its subsidiaries, Jinrisheng Mining and Jinhui Rare Mine, are both nationally recognized high-tech enterprises.The Dazhong Mining Research and Development Center was certified as the “Dazhong Mining Iron Concentrate Research andDevelopment Center” by the Inner Mongolia Autonomous Region in 2017. In April 2024, the Dazhong Mining Central Laboratoryconducted a management review, document review, and measurement review of related elements in accordance with CNAS(China National Accreditation Service for Conformity Assessment) requirements and obtained the CNAS certification. Thesehonors and certifications not only affirm the technical level and innovation capability of the R&D team of Dazhong Mining, butalso serve as an important guarantee for the Company's sustainable development and transformation and upgrading.During the reporting period, the Company had 3 national high-tech enterprises, 1 national CNAS-certified laboratory, and 2provincial enterprise technology centers. Dazhong Mining has already obtained the titles of provincial-level “Enterprise R&DCenter” and “Enterprise Technology Center”; Jinrisheng Mining has obtained the title of “Provincial Enterprise TechnologyCenter”.
Dazhong Mining actively implements the innovation-driven development strategy, closely integrates with its own reality, andkeenly observes the risks and opportunities hidden in the field of R&D innovation. the Company takes the initiative to deeplyanalyze technological frontiers and market dynamics, striving to find breakthroughs for sustained, rapid, and healthydevelopment in key areas such as intelligence and greenization.
Dazhong Mining High-Tech Enterprise CertificateJinrisheng Mining High-Tech Enterprise Certificate
Strategy
RiskType
Risk Description
Probability ofOccurrence
ImpactMagnitude
ImpactTimeRange
ImpactValue Chain
Links
PriorityRanking
PotentialFinancialImpact
Response Measures
Technical RisksPolicy and Legal Risks
Short toMedium
Term
Short toMedium
Term
Short toMedium
Term
Increasedoperating
costs;Decreasedoperating
income
Decreasedoperating
income
Increasedoperating
costs
MediumMediumOperations
Operations
Operations
Medium
MediumMedium
Medium
Low
HighHigh
With the rapiddevelopment oftechnology, newtechnologies maysoon be replacedby more advancedtechnologies,leading to the riskof technologicalobsolescence forenterprises.
Continuously pay attention toindustry dynamics and technologicaldevelopment trends, strengthentechnology R&D and innovation, andmaintain the Company'stechnological leading edge; at thesame time, establish a flexibletechnology update mechanism toensure the Company can quicklyadapt to the development of newtechnologies.Conduct thorough market researchand technology evaluation to ensurethe rationality and effectiveness oftechnology investment; at the sametime, establish a risk managementmechanism for risk warning andmonitoring of technology investment.Establish a comprehensive safetymanagement system and compliancemechanism, conduct comprehensivesafety assessments and compliancereviews of new technologies; at thesame time, strengthen employeesafety training and awareness toensure the safe application of newtechnologies.
R&D innovationrequires substantialcapital investment,but the returncycle andeffectiveness ofnew technologiesare uncertain.The introduction ofnew technologiesmay bring new safetyand complianceissues, such as thesafety of unmanneddriving technology inmining areas anddata protection.
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During the reporting period
Number of Authorized Patents
Cumulative Number of Software Copyrights
Number of Authorized Invention PatentsNumber of Authorized Utility Model Patents
PiecePiecePiecePiece
20232024UnitIndicator
Number of R&D personnelNumber of Patents
PersonsItems
Continuous R&D investment and
R&D team constructionExpand the number of patents
R&D investment of 132.8222 million yuan,accounting for 3.46 % of operating income436 R&D personnel, accounting for 11.53%of the total number of employeesTotal number of patents 380, an increaseof 97 over the previous year
Target2024 Annual SituationUnitIndicator
Authorized Patent Inventory
According to the Dazhong Mining comprehensively identifies potential risks intechnology, market, and talent during the process of promoting R&D innovation; at the same time, actively capturesopportunities brought by R&D innovation, formulates and implements opportunity utilization strategies, drives developmentthrough innovation, and achieves the Company's sustainable development.
The Company identifies andsummarizes innovation R&Drisks throughout the entireprocess from project initia-tion, R&D process to resulttransformation and accep-tance.
Risk Identification
Based on the impact degreeand occurrence probability ofthe identified risks, assessand classify potential risks ineach link.
Risk AssessmentRisk Response
The departments involved inthe risks sort out the assessedrisks and formulate corre-sponding response measuresfor important risks.
Impact,Risk,and Opportunity Management
Metrics and Targets
Intellectual Property Protection
Dazhong Mining attaches great importance to intellectual property protection, strictlycomplies with relevant laws and regulations including the and formulates theTheTechnical Committee Office is the Company’s intellectual property business managementdepartment, responsible for the management of patents, trademarks, copyrights, tradesecrets, technical standards, and other intellectual property matters. the Companycontinuously improves the patent application and subsequent maintenance work bystrengthening the intellectual property protection system, thereby ensuring independentintellectual property and core technology in key areas, and eliminating any form ofintellectual property infringement.
Through continuous technological research and development and patent applications, the Company has accumulated richintellectual property resources. As of the end of the reporting period, the Company and its subsidiaries have owned multipleinvention patents, covering various fields such as mining, mineral processing technology, and environmental protectiontechnology.
The Company wasnot involved in anylitigation or legaldisputes related tointellectual propertyinfringement.
Evaluate the effectiveness of riskresponse strategies, improveemergency plans, and ensurethe smooth progress of R&Dinnovation activities.
Monitoring and Improvement
Opportu-nity Type
OpportunityDescription
Probability ofOccurrence
ImpactMagnitude
ImpactTimeRange
ImpactValue ChainLinks
PriorityRanking
Potentialfinancialimpact
Response Measures
Technical OpportunityMarket OpportunitiesPolicy Opportunities
Short toMediumTerm
Short toMedium
Term
Mediumto Long
Term
Operating
costsreducedOperating
incomeincreased;operationalefficiencyimproved
Operating
costs
reduced
Operations,Downstream
Operations,Downstream
Operations
MediumMedium
High
High
High
High
High
High
High
Through technologicalinnovations such asunmanned driving and remotemining, the efficiency ofmining operations can besignificantly improved, whilereducing labor costs andsafety risks.Intelligent transformation notonly helps improve theoperational efficiency ofenterprises but also enhancestheir market competitiveness,attracting more investors andpartners.Promote the construction ofgreen mines through R&Dinnovation, reduceenvironmental impact, andalign with global carbonreduction and sustainabledevelopment trends.
Increase R&D investment,collaborate with researchinstitutions, introduceadvanced technologiesand localize them toensure effectiveapplication in practicaloperations.Develop a clear intelligenttransformation strategy,implement it in phases,and strengthen employeetraining to enhance theteam's acceptance andapplication capabilities ofnew technologies.Introduce environmentalprotection technologiesand equipment, optimizethe energy structure,increase the proportion ofclean energy use, andstrengthen environmentalgovernance and ecologicalrestoration efforts.
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Technical Cooperation and Exchange
Innovative Practices
Overview of Dazhong Mining’s Cooperative R&D
Dazhong Mining has shown continuous activity in technical cooperation, established extensive cooperative relationships withmultiple domestic and foreign manufacturers, universities, and research institutions. Over time, the Company has continuouslyintroduced new technologies and models, promoting the mechanization, automation, informatization, and intelligent developmentof mines.
Cooperation inMechanizedEquipmentConstruction
Cooperation inProductionInformatizationConstruction
Cooperating with foreign manufacturers such as Epiroc to introduce advanced mining equipment, includingST1030 loaders and Simba1254 medium-hole jumbos, to enhance the level of mechanization.
Since 2013,the Company has cooperated with Liaoning Technical University and Shanghai Huace Chuangshi tobuild an online monitoring system for tailings ponds, enabling real-time monitoring of tailings pond safety.In 2020, the Company cooperated with the China Academy of Safety Science and Technology to implement athree-dimensional preventive safety production management system and informatization system construction.In 2023, investing 98 million yuan to cooperate with Baosight Software for overall informatization planning,promoting the construction of digital mines.
Cooperationin Automationand IntelligentSystemConstruction
From 2004 to 2023, the Company cooperated with Maanshan Mining Research Institute and DandongDongfang Measurement and Control Technology Co., Ltd. to research and implement mineral processingautomation systems, achieving full-process automated control.Since 2009, cooperating with Beijing LiControl Technology Co., Ltd. to implement a surface intelligent watersupply system, gradually upgrading to unmanned and intelligent water distribution control.Since 2013, in collaboration with Luoyang Zhongzhong Automation Engineering Co., Ltd., we haveimplemented remote centralized automation control for the main and auxiliary shaft hoisting and undergroundventilation fans.Since 2019, in cooperation with Xi’an Riyadh Electric Co., Ltd. and Luoyang Yuanchuang Electric Co., Ltd., wehave carried out automation control for the main shaft hoist.In 2021, in collaboration with Changsha Mining and Metallurgy Research Institute, we conducted research andimplementation of automation for the filling station; and in cooperation with Chuzhou Anrui ElectricAutomation Company, we carried out automation transformation for the 35kV substation.
Encourage R&D Innovation
Intelligent Mine Construction
To stimulate employees’ enthusiasm for technological development and innovation, and to transform scientific researchachievements into practical applications in business operations, the Company has established a series of systems including the and These systems provide acomprehensive science and technology reward mechanism, covering various aspects such as science and technology workevaluation, company science and technology award review, commendation and rewards, external scientific and technologicalachievement rewards, and intellectual property rewards, aiming to recognize and encourage units and individuals who havemade outstanding contributions to science and technology work, and to promote the sustainable development of theCompany’s science and technology.
Dazhong Mining actively responds to the great strategic plan proposed by the Party and the state to “deeply promote theintelligent construction of mines and promote the transformation of mine safety governance mode to pre-event prevention”. Bymaking full use of advanced sensing technology, Internet of Things technology, information transmission technology, automaticcontrol technology, and video surveillance technology, we have built automation monitoring and control systems for all majorproduction processes, achieving full-process automation control from mining, mineral processing, tailings, and auxiliary systems,promoting the pace of unmanned mine construction, and driving high-quality development of the enterprise with “digitalintelligence”. In the innovative process of promoting mechanization, intelligence, and high-end development, the Companyalways adheres to the ethical principles of science and technology, prevents technology abuse and ethical risks, and ensuresthe compliance and sustainability of technology applications.Dazhong Mining has made significant progress in the construction of intelligent mines. By introducing full-process mechanizedequipment such as Epiroc loaders and Simba mid-hole jumbos, the efficiency of mining operations has been greatly improved.At the same time, the Company has achieved full-process automation control from mining to tailings processing and auxiliarysystems, including underground personnel positioning, monitoring and surveillance, emergency escape, compressed airself-rescue, water supply rescue, and communication, the construction of the “six major safety systems”, ensuring the safeoperation of the mine. In terms of key systems such as main and auxiliary shaft hoisting, ventilation fans, and drainage pumps,Dazhong Mining has also achieved remote centralized automation control, further improving the level of safety management.
Jinrisheng Mining has launched the “Five Small and One Method” Star Employee Activity since November 2024. “FiveSmall and One Method” refers to small tips, small designs, small innovations, small inventions, small suggestions,and advanced operation methods of employees, aiming to encourage frontline employees to contribute theirintelligence based on their positions, focusing on production, quality, equipment transformation, and safetyoperations, to improve efficiency and benefits.Each production unit needs to formulate a plan to create conditions for the promotion of employee achievements.Results should be reported by the 20th of each month, and the technical committee will announce the review andreward results by the 25th of the same month. The bonus will be issued in the same month, with a reward of50~200 yuan per item for winning projects. Excellent achievements can receive higher rewards and assistance inpatent application.
Case Study
“Five Small and One Method”Star Employee Activity
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The underground mining operation process includes excavation, drilling, charging and blasting, transportation, andhoisting, which also includes shotcrete support, scaling, material transportation, vehicle refueling, etc., all requiring thesupport of modern mechanical equipment. In terms of excavation, Dazhong Mining has achieved undergroundexcavation with jumbo drilling, including single-arm and double-arm models. The excavation, which previously used 28drills, has now been fully replaced by jumbo drilling, resulting in a multiple increase in construction efficiency and, moreimportantly, reducing the safety risks for personnel at the working face. In terms of rock scaling, the Company hasintroduced multiple XMPYT-45/450 scaling jumbos. The rock scaling process, which was previously handled manuallywith crowbars, has been replaced by personnel operating the jumbos, significantly reducing safety risks.
In terms of informatization and intelligence, Dazhong Mining has built a smart brain, integrating the development concept of“digital intelligence” throughout the entire process of resource development and utilization. By establishing an intelligentdispatch control platform, the Company can utilize human-machine interfaces and real-time video for command and control,thereby improving production and operational efficiency. Additionally, the Company has introduced intelligent inspection robotdogs, achieving automated and intelligent inspection of key facilities and equipment, further enhancing the intelligence level ofthe mine. Using video technology, big data analysis, and artificial intelligence algorithms, Dazhong Mining has achievedcomprehensive monitoring of personnel behavior safety and equipment operation safety, ensuring the safe production of themine.
Intelligent Dispatch Control PlatformIntelligent Inspection Robot DogRemote Operation and Dispatch of Load-Haul-Dump Machines
Automatic Ball Adding System for Ball Mills
Remote Control of Drilling and Blasting DronesSmart Mine System
Automatic Dosing System for Flotation
Remote One-Button Start/Stop in the Concentrator
Dispatch Room
Case Study
Underground mining operations have basicallyachieved full-process mechanization
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2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
During the reporting periodDazhong Mining strictly complies with relevant laws and regulations such asthe the and the the Company has formulated a series of rules and regulations,including the and§ to standardize the Company’sinformation security management, protect the Company’s information assets,and promote the healthy development of the Company’s informatizationconstruction.The Company adheres to the principles of “who is in charge, who is responsible” and “position needs, authority and responsibilityare equal” for authorization and management, and promptly handles user permissions for personnel transfers, resignations, etc.We have established a dedicated information security management organization—the Information Automation Department, whichserves as the centralized management department for the Company’s information security, fully responsible for informationsecurity management, including the formulation, improvement, and execution of information security systems, as well as theprevention, response, and handling of information security incidents. At the same time, each subsidiary also establishescorresponding informatization centralized management departments, responsible for the information security management oftheir respective units.
There were no privacybreaches or otherinformation securitybreach incidents.
Information Securityand Privacy Protection
Information Security Management System
Information Security Management Content
Room Security
Network Security
SoftwareSecurity
Data Center Environment Safety: Independent data center, quiet location, suitable temperature (around 22°C in spring andautumn, around 25°C in summer, 20-23°C in winter)Cleanliness: Walls without stains, peeling paint, or dents, smooth ceiling, maintenance access left at equipment installationpoints, flat floor without subsidenceAnti-theft and Fire Prevention: Doors and windows equipped with anti-theft and fire prevention measures, unauthorized entryor operation of equipment is prohibited
Access the Internet through the group's designatedinternet gatewayConfigure internet behavior management equipmentfor supervision
Emergency Plan
Data Security
Personal Terminal Securitythe Company arranges desktop cloud office equipment and relatedaccount permissions for new employees
Sort out sensitive data (top secret, confidential, internal), and personnel in contact signconfidentiality agreementsUse dedicated computers to store top-secret information, and prohibit access to thesystemSensitive data cannot be sent out without approval, and data retrieval and modificationrequire approval
The emergency handling of system business continuity incidents follows the principle of “who is in charge, who isresponsible”When the main online process is affected for a long time, offline operations are initiated, and data is immediatelyre-entered after system recovery
General software and antivirus software arepurchased by the group and installed by each unitEmployee’ personal work computers are notallowed to install pirated software
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Dazhong Mining has taken a series of strong measures in information security management to ensure the stable operation of theCompany's information systems.
Dazhong Mining actively practices responsible supply chain management, continuously strengthening management requirementsfor suppliers in environmental, social, and governance aspects, and works with suppliers to build a transparent, fair, and greensupply chain ecosystem.
To standardize the supplier management work of the Company and its subsidiaries, Dazhong Mining has formulated a series ofmanagement systems such as the ¤ to strengthen the screening, performance evaluation, and exit management of suppliers,and establish a dynamic optimization mechanism to maintain a stable and reliable supplier team.
Adhering to the principles of “open and voluntary, competitive and selective, fair and transparent, and total control”, DazhongMining requires new suppliers to fill out and upload relevant background investigation materials, including the etc., and conducts due diligence on basic conditions such as legal entity qualification, business license, performancecapability, business scale, product quality, and corporate litigation, as well as other conditions such as quality, environmental,and occupational health and safety management system certifications.
On the e-commerceplatform, suppliers
self-recommend
Complete theinformationplatform review
Complete theinformation requiredby our company
Project ownership unit procurementorganization review (review by procurement
managers of each company, review byprocurement leaders of each company)
Group procurement organization review(approval by group procurement manager,
approval by group procurement leader)
Inclusion in the
qualifiedsupplier list
Entry into the supplier
management stage.
Standardize the planning, annual plan, project initiation, bidding, contract signing, execution and tracking, acceptance, andpost-evaluation of information projects.Clarify the responsibilities of various departments in information project management, such as the Information AutomationDepartment, Audit and Legal Affairs Department, and Financial Management Department.Emphasize the legality, compliance, and effectiveness of information projects, and prevent the risk of information system isolationand project process management out of control.
Standardize the daily operation and maintenance management of information systems, including key position personnelmanagement, system authority management, daily inspection and maintenance, etc.Establish fault handling processes, including fault reporting, handling, verification, and confirmation.Strengthen the inspection, evaluation, and assessment of system application, as well as the approval and executionprocesses for system changes or optimizations.
Specify the principles of office computer use, such as the mandatory use of company-configured computers, and prohibit theuse of computers without desktop cloud systems in office areas.Clarify the office computer management process for employees during onboarding, transfer, and departure.Emphasize the confidentiality of company materials, prohibit unauthorized copying and external distribution of companymaterials, and disable USB copying functions.Regularly back up and archive data stored on confidential computers to ensure data security.
Responsible Supply Chain Management
Information Security Management Measures
Supplier Management System
2024
Number of Information Security Related Training Sessions
5 Times
Number of Training Participants
178 Person
Supplier Admission
Supplier Admission Review Process
Information Project Management
Information System Operationand Maintenance Management
Employee OfficeComputer Management
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77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
93 9495 96 97 98 99 100 101 102 103 104 105 106 107 108
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The Company strengthens the evaluation of supplier performance and has formulated relevant evaluation mechanisms anddetails such as ¤A dedicated supplier review team has been established forequipment and materials suppliers, conducting performance evaluations on qualified suppliers with delivery performance in thecurrent year, and establishing a supplier classification management system. the Company's procurement managementdepartment organizes annual supplier performance review meetings based on the annual performance evaluation scores andrelated performance of suppliers, reviews the evaluation structure, and forms an annual supplier performance evaluation report,adjusting the supplier hierarchy.The supplier review team regularly conducts multi-dimensional performance evaluations on qualified suppliers with deliveryperformance in the year, including performance, quality, and delivery, and divides the supplier hierarchy into peripheral suppliers,alternative suppliers, qualified suppliers, and blacklisted suppliers based on the evaluation results.
The Company scientifically and reasonably removes suppliers who do not meet the Company's supplier access conditions, do notaccept or violate the Company's “Supplier Cooperation Commitment”, whose product quality and service capabilities do notmeet on-site needs, who are forcibly exited in supplier evaluations, who voluntarily propose to no longer cooperate, and whohave not had business cooperation for three consecutive years, continuously optimizing the Company's supplier managementlibrary.
Qualified SupplierAlternative SupplierPeripheral SupplierBlacklist
Supplier EvaluationSupplier Exit
Key Performance
The number of suppliers whose cooperation was terminated due tonon-compliance was9, and the number of potential suppliers rejectedwas18.
Supplier Classification Management
Number of Local SuppliersTotal Number of Suppliers
482386
Note: The number of local suppliers only covers the number of suppliers in the Inner Mongolia and Anhui production bases.
Normal business can beconducted, and regularcontracts can be signed.
Suppliers are eligible toparticipate in quotationsand may apply for inclusionin the Approved SupplierList. They are permitted toenter into trial contractsbut are not authorized toexecute regular contracts.
They can participate inquotations, can apply to enterthe alternative supplier list,cannot recommend winningbids, and is prohibited fromsigning contracts.
They cannot participate inquotations, cannot win bids,cannot sign contracts,cannot issue invoices, cannotmake payments, and legacybusiness must be transferredto audit before it can beconcluded.
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45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
93 94 95 9697 98 99 100 101 102 103 104 105 106 107 108
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Key Performance
To ensure supplier quality, Dazhong Mining has implemented dynamic management measures for suppliers from multipledimensions including enterprise qualifications, product quality, environmental responsibility, and business ethics, including butnot limited to: requiring suppliers to sign the requiring suppliers to provide quality,environmental, and occupational health management system certifications, thereby continuously strengthening the socialresponsibility performance of the supply chain, effectively ensuring supply chain stability, promoting suppliers to jointly build asustainable industrial chain, and achieving mutually beneficial long-term cooperation.
Dazhong Mining has established an open and strict bidding procedure, formulated the and¤ to standardize supply chain procurement management, reduce and controlprocurement costs, improve procurement efficiency, and prevent supply chain risks caused by unreasonable procurementmethods and non-standard authorization and approval. The Company adheres to the principles of fair, just, and open sunshineprocurement and compliant procurement, stipulating procurement modes such as bidding, inquiry and comparison, strategy,consignment, and contracting, and requires standardized execution according to the procurement plan. At the same time, theBidding and Procurement Department is responsible for organizing procurement standard training meetings at production unitsevery quarter to exchange the implementation of procurement standards.
On April 30, 2024, Dazhong Mining successfully held the second Supply and Sales Conference at the InterContinentalHotel in Xishuangbanna, Yunnan Province. The conference invited a total of 63 enterprises, including 13 strategic salescustomers, 49 core suppliers, and 1 bank. The meeting revolved around the theme “Grateful for Your Company, We WalkTogether,” reviewing the execution of the strategic cooperation signed at the first Supply and Sales Conference andexploring future cooperation upgrades. During the conference, Dazhong Mining engaged in business cooperationnegotiations and management experience exchanges with multiple suppliers and signed strategic cooperationagreements with six suppliers, including Qianqiang Pump Industry Co., Ltd and Hubei Tianteng Heavy Machinery Co., Ltd.
The Company requires all suppliers to sign the including integrity clauses and ethical restraintclauses, incorporating factors such as environmental protection,safety, and human resources compliance into supplier access andmanagement. Suppliers must commit to strictly adhering to nationallaws and regulations as well as industry self-discipline rules. Anysupplier found to have violated business ethics, national laws andregulations, or company-related regulations will be included in thesupplier blacklist, and all procurement business execution units mustcease any procurement business with suppliers on the blacklist.
Dazhong Mining collaborates with multiple partners to deeply explore the resource aggregation advantages in the industrialchain, strengthen complementary advantages, and achieve a new level and height of cooperation. the Company enhances thespirit of honest fulfillment and the awareness of actively assuming social responsibilities among supply chain partners throughvarious communication forms such as supplier conferences and daily technical exchanges, jointly improving the overallcompetitiveness and sustainable development capabilities of the supply chain.
Supplier ESG Management
Responsible Procurement
Industry Cooperation and Exchange
Supplier Behavior Management
During the reporting period, thesigning rate of the by suppliers reached100%.
Case Study
Dazhong Mining Held the SecondSupply and Sales Conference in 2024
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61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
93 94 95 96 97 9899 100 101 102 103 104 105 106 107 108
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Product & Service, Safety and QualityOur actions
Safe Mines:
To Be a Safety Benchmark“Cherish Life, Safety First” is the development philosophy of DazhongMining. The Company firmly upholds safe production as itsoperational tenet, adhering to the principle of ”safety above all else.”With high professionalism, it ensures the quality of deliveredproducts; with a strong sense of responsibility, it fortifies thefoundation of mine safety; and with a profound sense of mission, itsafeguards employees’ occupational health and safety.
SDGs Responded to in This Chapter
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System CertificationDazhong Mining rigorously adheres to laws and regulations and has established a comprehensive quality management system.The Company has formulated and implemented numerous internal management measures to ensure the quality compliance ofincoming raw materials and outgoing finished products. By implementing product lifecycle management and full-process qualitycontrol across all operations, Dazhong Mining has introduced the Lean-based TnPM management system to enhance equipmentefficiency and guarantee product quality. Simultaneously, the Company actively engages in responsible marketing practices,places strong emphasis on after-sales service, and provides customers with premium services that meet the highest standards.
The Company strictly adheres to both domestic and international regulations while continuously improving product quality andtechnology. As of the reporting period, Dazhong Mining, along with its subsidiary Jinrisheng Mining and affiliated CompanyZhongsheng Pellet, have all obtained ISO 9001 Quality Management System certification.
Dazhong Mining achieves long-term sustainable development by thoroughly identifying potential risks and opportunities inproduct quality management, formulating targeted response strategies, continuously optimizing its industrial structure, andstrengthening core competitiveness.
Dazhong Mining Quality
Management System
Certification
During the reporting period, our subsidiary
Jinrisheng Mining was honored with theprestigious “2024 High-Quality Iron OreConcentrate Supplier in Southern China” award.
Jinrisheng Mining Quality
Management System
Certification
Zhongsheng Pellet Quality
Management System
Certification
Quality Management Organization Responsibilities
Central Laboratory of the Control CenterSales Department
Dazhong Mining strictly abides by and other laws and regulations, and has formulated internal management systems such as the and based on the quality management system standards such as ?, to standardize the quality inspectionprocess for the entry of raw and auxiliary materials into the plant and the exit of finished products from the plant, and to ensurethat the quality of the sold The quality of finished products is up to standard, effectively preventing quality risks. Meanwhile, theCompany has established a quality control system for the whole chain of business, covering technical management standards forgeological exploration, surveying, mining, etc., so as to realize the scientific, institutionalized and standardized production ofproducts.Dazhong Mining has established a Central Quality Control Laboratory under its management system, operating in strictcompliance with This facility serves as the cornerstone of our quality assurancesystem, undertaking critical responsibilities including formulating product quality standards and operational procedures,conducting comprehensive sampling and testing of raw materials and finished products, performing rigorous quality monitoring,resolving quality disputes, and ensuring safe and standardized laboratory operations.
Formulate and update the Conduct quality inspection and laboratory testing onincoming/outgoing raw materials, auxiliary materials,and finish products in compliance with theregulations.Investigate and deal with quality disputes of rawand auxiliary materials and finished products.
According to the quality and measurement clauses inthe purchase and sales contract, combined with thedata of quality inspection indexes of the CentralLaboratory, we will deduct or return the materials withunqualified quality.
Governance
Strategy
Product & Service Safety and Quality
RiskType
Risk Description
Probability ofOccurrence
Impact
Size
ImpactTimeframe
ImpactValue Chain
Link
Prioritization
PotentialFinancialImpact
Countermeasures
Technology Risk
Short,mediumand long
term
Increase innon-operationalexpenses anddecrease inoperationalincomeMediumDownstreamOperationsHighLowProductiondisruptions andproduct qualityissues due toinaccurategeological surveys,outdated miningand processingtechnologies, orequipment failure.
Enhance the accuracy ofgeological surveys andadopt advancedexploration technologies.Regularly update andmaintain productionequipment and introduceautomation and intelligenttechnology to improveproduction efficiency andproduct quality.Establish contingencyplans for technicalfailures to ensure timelyrecovery in the event ofproduction disruptions.
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77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
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2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Dazhong Mining, through the formulation and implementation of the , clarifies the specific path of risk identification, establishes a perfect risk monitoring and controlmechanism by meticulously evaluating the potential risks and formulating targeted response and mitigation measures, so as toensure the continuous and stable quality of products, and to effectively safeguard and enhance the reputation of theenterprise, while at the same time promoting the steady growth of economic benefits.
Comprehensive identificationincludes but is not limited topossible quality problems ofpurchased raw and auxiliarymaterials, possible improperoperation, equipment failure,etc. during the productionprocess, and possible humanor equipment errors duringthe quality testing process.
Investigate and handlequality dispute issuessuch as disputes overthe quality of raw andauxiliary materials andfinished products, andassess the severityand scope of impactof quality issues.
Ensure that the quality of raw andauxiliary materials and finishedproducts meets the standards throughthe processes of sampling, samplemaking, testing and assaying, etc.;when the sales department disagreeswith the test results, it can raisequality objections and arbitratethrough the third-party testing unit.
Sample retention management fortesting samples to ensure that thesamples can be traced during thesample retention period; after thelaboratory technician completes thesample testing, he/she is requiredto fill in the original record sheet ofthe testing and the analysis ledgerof the testing and be audited bythe team leader and the supervisorto ensure the accuracy of the data.
Impact,Risk and Opportunity Management
Risk IdentificationRisk Assessment
Response and
Mitigation
Risk Monitoring
and Control
RiskTypeRisk Description
Probability ofOccurrence
Impact
Size
ImpactTimeframe
ImpactValue ChainLink
Prioriti-zation
PotentialFinancialImpact
Countermeasures
Type ofOppor-tunity
OpportunityDescription
Probability ofOccurrence
ImpactSize
ImpactTimeframe
ImpactValueChain Link
Prioriti-zation
PotentialFinancial
Impact
Countermeasures
Market Risks
Policy and Legal Opportunities
Market OpportunitiesReputation Opportunities
Technological Opportunities
Short-term
Short-term
Medium-term
Long-term
Long-term
Increase innon-operationalexpenses anddecrease inoperationalincome
Decrease inoperationalcosts anddecrease inincome taxexpense
Increase inoperationalincome
Increase inoperationalincome anddecrease insellingexpenses
Decrease inproductioncosts andincrease inrevenue(long term)
Medium
Medium
Medium
MediumOperations
Operations
Operations
Operations
Operations
Low
High
High
High
High
High
High
High
HighHigh
Low
Changes inmarket demand,intensifiedcompetition, pricefluctuations, andcustomers’ strictrequirements onproduct quality.
National supportand policypreferences forthe miningindustry, such astax incentivesand loansupport.
Growth indomestic andoverseas marketdemand,especially therapiddevelopment ofnew energy andnew materials.Quality productsand services canenhance theCompany’sreputation andattract morecustomers andpartners.
The emergenceof newtechnologies,processes andequipment hasbroughtinnovation andchange to themining industry.
Pay attention to market dynamicsand make timely adjustments toproduct strategies and salesstrategies.Enhance market research tounderstand customer needs andcompetitors’ dynamics, andformulate targeted competitivestrategies.Improve product quality andservice level to meet customers’strict requirements and enhancecustomer satisfaction and loyalty.
Pay close attention to nationalpolicy developments andunderstand the direction ofpolicy preferences and support.Actively apply for policypreferences and support toreduce production costs andimprove profitability.Utilize policy opportunities tostrengthen technologicalinnovation and industrialupgrading to enhancecompetitiveness.
Expand domestic and overseasmarkets, understand the needsand preferences of differentmarkets, and formulate targetedmarketing strategies.Strengthen product R&D andinnovation, and develop newproducts and technologies thatmeet market demands.Strengthen product qualitymanagement to ensure productquality meets national standardsand customer requirements.Provide high-quality after-salesservice and technical support tosolve customer problems andenhance customer satisfaction.
Strengthen technological R&Dand innovation, introduce newtechnologies and processes,and improve productionefficiency and product quality.Strengthen technological R&Dand innovation, introduce newtechnologies and processes,and improve productionefficiency and product quality.Strengthen cooperation withuniversities and scientificresearch organizations tojointly carry out technologicalinnovation and R&D.
Type ofOppor-tunity
OpportunityDescription
Probability ofOccurrence
Impact
Size
ImpactTimeframe
ImpactValueChain Link
Prioriti-zation
PotentialFinancial
Impact
Countermeasures
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Production Outsourcing Management Regulations: The production outsourcing management system strengthens contractor oversight,mitigates risks, and enhances project quality. It encompasses contractor selection and contract execution, quality and progresssupervision, and safety management. The system implements dynamic performance evaluations of contractors, with the removal ofnon-compliant units, to ensure the quality and safety of outsourced projects.
Full Life Cycle Control of Products
Quality Control of the Entire Business Chain
Dazhong Mining implements comprehensive and strict product quality life cycle management to ensure that every step fromraw materials to finished products meets high standards.
Incoming Material InspectionProcess ControlFinished Product Inspection
Sample RetentionNon-Conforming Product Management
1. Designated sampling locations (e.g.,
concentrate warehouse, conveyor belts ateach mine portal crusher station).
2. Defined sampling requirements (e.g.,
per-vehicle sampling with ≥5kg samples).
3. Standardized sample preparation
(including mixing, quartering, andmoisture testing).
4. Laboratory testing following SOPs with
documented results entered into system.
Dazhong Mining’s business-wide quality control system covers geology, surveying, mining, ore dressing and product qualitystandard management, which together constitute a comprehensive quality control network. By formulating detailed managementmethods, the Company ensures the standardization, standardization and scientification of all the work during the period of mineinfrastructure and production. At the same time, it focuses on technological innovation and quality management, andstrengthens the management and risk prevention and control of outsourcing units, in order to improve the quality level ofengineering construction and eliminate hidden safety hazards.
Product Quality Standard Management Regulations: Product quality management ensures products comply with national standards andindustry standards, while establishing stricter corporate product standards. Special order sales standards meet customers’ specificrequirements. Process product standards and internal control standards are more stringent than national standards to guaranteeproduct quality.
Integrated Quality Control across the Entire Business Chain
1. Testing of production flow samples
(feed ore, concentrate, mill feed, tailings).
2. Defined sampling locations and
frequencies at each production stage.
3. Complete testing cycle (sampling →
preparation → analysis) for aggregateproduction.
1. External sales products (e.g., iron
concentrate) sampled at dedicatedplatforms using point sampling.
2. Sample preparation and lab testing for
elements (TFe, Zn, etc.).
3. Test results recorded and entered into
automated monitoring system.
1. Sample sampling is divided into three parts: internal,
cross-lab, and external.
2. Internal random sampling every half a month, mutual
inspection monthly between the center laboratories totest each other.
3. external inspection is carried out by a third party
testing organization with a long term contract.
4. Sample retention period varies according to product
types, such as 1 month for self-produced raw materialsand intermediate products, and 3 months for exportedfinished products and purchased raw materials.
1. Detect non-conforming products, including raw materials or finished goods
that fail to meet established standards or technical specifications.
2. Conduct evaluation of non-conforming products, including assessment of
production quality incidents.
3. Implement disposal measures such as returns, concessionary acceptance,
or quarantine, with full documentation.
4. Analyze production processes for non-conforming products and adjust
manufacturing procedures accordingly.
5. The sales department enforces contractual deductions for non-compliant
products and collects customer feedback for improvement.
Quality control throughout the life cycle
First-pass Yield Rate100 Percent
Product Recall Rate0 Percent
Customer Satisfaction100 Percent
Metrics and Targets
Management Measures
Indicator/Target2024 Achievement
Finished
Mining professional management methods: Mining technical management focuses on safety and quality, establishes a technicalresponsibility system, and maintains a reasonable extraction ratio. Mining design must be complete, including text description anddrawing information. The technical management of the quarry emphasizes the construction quality and the reduction of mining depletionrate. Technical files are collected and organized by the technical department, and audited and filed.
Beneficiation professional management methods: Beneficiation management improves the level through standardization, and theoperation management department is responsible for plan review and technical reform program evaluation. The ore dressing plantestablishes technical management organizations and improves systems and responsibility. Material management emphasizes the testingand storage of important materials, especially pharmaceuticals. Technical improvement and scientific research focuses on the applicationof new technology, the establishment of a laboratory and the formation of test reports.
Measurement management methods: Measurement management includes control measurements, construction measurements, etc., andrequires that the mapping data undergo strict inspection. Surveying and mapping instruments and tools need to be calibrated andmaintained regularly. Mine surveying and mapping data is an important basis for mining and needs to be properly preserved. At thesame time, technical research is carried out, advanced technology and equipment are promoted, and the level of measurementtechnology management is improved.
Geological management methods: Geological work covers exploration, cataloging, resource reserve management, etc., focusing oncontrolling loss and depletion and ensuring ore quality. Ore grade is calculated through geological grade map, and quality plan andassurance measures are formulated. Quality management involves the process of digging and blasting and slagging to ensure that theore and rock are not mixed. The mining process discharges the ore in sequence, strictly controls the grade, collects quality informationin time, and supervises the execution of the quality plan.
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Quality Product Training
Lean-based TnPM management system
The Company continuously strengthens employees’ quality awareness and enhances the overall quality management level byconducting activities such as quality management system training and quality awareness programs.
Since July 2024, to improve measurement accuracy, the Quality andMeasurement Department of Jinhui Rare Minerals has consistentlycarried out national standard operation training, laying a solidfoundation for the efficient and precise execution of various qualityinspection standards.
To enhance product quality management, Jinrisheng Mining, a subsidiary of Dazhong Mining Group, has introduced theLean-based TnPM (Total Productive Maintenance) management system. By formulatingand adopting a Company-wide participation and continuous improvement approach, the Company hasoptimized equipment management processes, reduced equipment failure rates, and improved equipment efficiency—therebyindirectly ensuring and enhancing product quality.
Responsible Marketing
Dazhong Mining is committed to delivering exceptional service and high-quality products through the implementation of itsand These regulatory documents standardizeall customer service processes by clearly defining responsibilities across organizational levels and relevant departments, withdetailed specifications for complaint handling, product retesting, liability assessment, dispute resolution, corrective actions, andperformance evaluation. This comprehensive framework ensures rapid response to customer feedback, continuous qualityimprovement, sustained customer satisfaction, and reliable protection of corporate reputation.During the reporting period
During the reporting period, the Company issued 55 customer satisfactionsurveys, attaining a 100% satisfaction rate.
Dazhong Mining attaches importance to customers’ experience and rights, strictly follows and other relevant laws and regulations on marketing andpublicity, actively carries out responsible marketing, eliminates false marketing, effectively protects the rights and interests ofcustomers, and provides all-around high-quality services to customers in a high standard.
Organizational Structure and Responsibilities
TnPM Management Content
A TnPM Project Leadership Teamhas been established, headed bythe Deputy General Manager, withtwo deputy leaders. Under thisteam, a Promotion Office has beenset up, which oversees TnPMimplementation groups across twomines and three plants.
Organizational Structure
Responsible for the overallplanning and deployment of TnPMmanagement, including theestablishment of a soundorganizational structure, overseeingand guiding the implementationprocess, providing resources,coordinating departmentalactivities, solving problems,evaluating and assessing, andorganizing monthly and annualwrap-up meetings.
Responsibilities ofthe Leadership Team
The implementation teams shall be fullyaccountable for executing corporateobjectives and overseeing all TnPMinitiatives within their respective units.Key responsibilities encompass resourcemobilization, project execution, policyformulation, compliance assurance,performance evaluation support, trainingand awareness programs, troubleshooting,trend analysis, and results consolidation.Regular work reports must be submittedto the corporate TnPM Promotion Office.
Responsibilities of the two minesand three plants promotion team
After-sales Service and Product Recall
Work Plan ManagementPromotion Meeting
Management
TnPM Project Training
Management
Talent cultivation andteam building
TnPM Project Assessmentand Incentive Management
......
Case Study
National Standard Operation Training by Jinhui RareMinerals Quality and Measurement Department
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Dazhong Mining upholds the safety philosophy of “Cherishing Life, Safety First” and adheres to safe production as its operationaltenet. The Company deeply embeds safety concepts, mindset, awareness, knowledge and skills into its corporate culture andbusiness practices. With a strong sense of mission, we safeguard employees’ occupational health and safety, using safetyassurance to drive development and chart a grand blueprint for the enterprise’s high-quality and sustainable growth.
Dazhong Mining strictly complies with relevant laws and regulatory requirements such as and The Companyconsistently implements the work safety policy of ”safety first, prevention as the priority, and comprehensive management”,and has established a series of safety production systems, including§and The Company has set up a Work Safety Committee, with the Chairman of theBoard/General Manager serving as the committee director. A comprehensive all-staff work safety responsibility system hasbeen established, extending horizontally across all departments and vertically through all levels, with responsibilities clearlydelegated. Among them, the primary leaders of the Party and administration are the first persons responsible for worksafety, bearing overall leadership responsibility for safety production. The Safety and Environmental Protection Departmentoversees the implementation of the all-staff work safety responsibility system, conducting monthly and annual assessmentsand enforcing rewards or penalties based on the evaluation results. The Company’s core management team possessesextensive experience in mine exploration, mining, mineral processing, smelting, construction, and operational management,with a deep understanding of industry technologies and development trends. They demonstrate strong strategic planningcapabilities and highly efficient execution.Meanwhile, the Company’s two major iron ore production bases in Inner Mongolia and Anhui have all established § and relevant management measures, forming a comprehensive work safety managementresponsibility system. Under this system, the general manager serves as the primary person accountable for work safety,with senior management assuming overall responsibility, while department heads and functional units implement layeredresponsibilities to ensure coordinated and multi-level safety management.
Production Safety and Occupational Health
Governance
Occupational Health and Safety Management Structure
Centers and DepartmentsSubsidiaries
Safety & Environmental Protection Department
After-sales Service Process
Rapid Response: Sales Center communicates with customerwithin 24 hours to confirm complaint details;Information Verification: Verifies receipt details andcompares complaint content with Company’s shipmentinspection results.
Complaint Acceptance &Communication
Product Retesting Process
Liability Determination & HandlingComplaint ResolutionAgreement & Settlement
Analysis & Improvement& Verification
Product RecallAssessment & Supervision
Retesting Arrangement: Sales Center forwardscomplaint letter and customer test results tosubsidiary Quality & Measurement Dept. for retesting;Retesting Results: Subsidiary Quality & MeasurementDept. retrieves original retained samples for retestingwithin 24 hours and issues retest report.
Non-Company Liability: Original and retest results
fall within contract terms-complaint dismissed;
Company Liability: Deviation exceeds contract
terms-implements price adjustment, compensation,
replacement, return, etc., signs complaint
resolution agreement.
Root Cause Investigation: The Sales Centerprovides complaint information to theProduction Technology Department forinvestigation and analysis;Improvement Measures: ProductionTechnology Department and the responsibledepartments formulate and implementimprovement measures, solidify and revisethe management system after validation.
Recall Measures:
Replacement and returnmeasures constituteproduct recall actions,specifically the retrievalof confirmed defectiveproducts.
Accountability: Based on liability
determination results, primary and
secondary responsible departments bear
corresponding losses or penalties;
Timeline Requirement: The entire
complaint process (acceptance, handling,
and resolution) must be completed within
20 days, with written justification required
for any delays.
Agreement Signing: Sales Center negotiates and signs complaintresolution agreement with customer, submits to Operations ManagementCenter for review;Chairman Approval: After Operations Management Center review, submitsto Chairman for approval as settlement basis;Arbitration: If no agreement reached, both parties appoint third-partyarbitration institution.
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2024 Environmental, Social, and Governance (ESG) Report
Dazhong Mining Co., Ltd.
Dazhong Mining carries out scientific and systematic identification and risk assessment of dangerous and harmful factors in theprocess of safety production and management of its mines, and adopts corresponding risk control measures based on theresults of the risk assessment, so as to prevent, reduce or eliminate risks. In the process of risk identification and assessment,we mobilize safety management personnel and employee representatives at all levels of the mines to participate in the process,enhance the awareness of risk prevention among all employees, and promote the effective implementation of the system of fullresponsibility for safety production, which is “everyone has responsibility, everyone bears the responsibility, and everyone takesthe responsibility of prevention and control”.Dazhong Mining comprehensively identifies potential risks and opportunities across all mining operations—particularly inunderground operations and fundamental safety management processes—to develop systematic, scientific countermeasures thatensure full protection of employee safety and health.
During the reporting period, both Dazhong Mining and its subsidiary Jinrisheng Mining, as well as its affiliated CompanyZhongsheng Pellet, have obtained ISO 45001 Occupational Health and Safety Management System certification.
Dazhong Mining Co.,LtdJinrisheng Mining Co.,Ltd.Zhongsheng Pellet Co.,Ltd.
Strategy
Impact,Risk and Opportunity Management
For each operational step or operational content ineach operational activity, identify the risk pointsand sources of risk related to this step or content,establish a record of work hazard analysis andevaluation, and fill in the List of Hazard SourcesIdentification and Risk Evaluation and ControlAccording to a number of identified risk pointsand sources of risk.
Adopt the method of combining quantitativecalculation and qualitative analysis to calculate therisk value, and adopt the hazard analysis method ofoperating conditions to evaluate the risk level, anddetermine the significant sources of danger andmajor risks.
Corresponding engineering and technicalmeasures, management measures, training andeducation measures, individual protectionmeasures and emergency response measures areformulated to cope with the risks.
Risk grading and control follow the principle of “thehigher the risk, the higher the level of control”, andshould focus on the monitoring of operationalactivities that are difficult to operate, have hightechnical content, high risk level and may lead toserious consequences.
Risk IdentificationRisk Assessment
Risk ResponseRisk Monitoring
RiskType
Risk Description
Probability ofOccurrence
Impact
Size
ImpactTimeframe
ImpactValue Chain
Link
Prioriti-zation
PotentialFinancialImpact
Countermeasures
Technical RiskReputational Risk
Short andMid term
Short andMid term
Increase inoperational
costs
Decrease inoperationalrevenue
Medium
Medium
HighOperations
Operations
Low
LowLow
Inadequate hazardidentification may lead toworkplace accidentsincluding falls fromheight, mechanicalinjuries, fire/electrocution,slips & falls, potentiallycausing shutdown ofmajor equipment orfacilities.Potential media exposureof serious casualtiesduring operations maytrigger negativestakeholder perceptions,damaging corporatemarket reputation.
1. Strengthen management of
the mine’s six major hazardprevention systems.
2. Enhance safety education
and training for contractors’personnel.
Intensify mine risk preventioncontrols, establish robustpost-specific safetyresponsibility systems, andproactively address stakeholderconcerns.
Operational Opportunities
Long-term
Decrease inoperationalcostsOperationsHighMediumMedium
The digital transformation(informatization andintelligentization) ofoccupational health andsafety managementprocesses will enhanceoverall corporatemanagement efficiency,reduce the incidence ofoccupational accidents,and prevent significantfinancial losses.
Adopt innovativetechnologies to improveOHS managementefficiency, accelerateintelligent mineconstruction, implementreal-time monitoring anddata analytics to ensuremining safety andminimize accident risks.
Type ofOppor-tunity
OpportunityDescription
Probability ofOccurrence
Impact
Size
ImpactTimeframe
ImpactValueChain Link
Prioriti-zation
PotentialFinancial
Impact
Countermeasures
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Key Performance Metrics
Emergency Preparedness & DrillsIn strict compliance with the and the Company and its subsidiaries have formulated relevant systems including and These documents establish emergency response and handling measures forpotential mining accidents such as roof collapses, landslides, and blasting accidents. Each subsidiary has established anemergency rescue organizational structure in accordance with its own organizational framework, clarifying the responsibilities ofeach department in safety emergency management during project operations. The Company conducts regular emergency drillsannually, prepares drill plans in advance, and provides relevant training to participants.All mining enterprises under the Company have implemented ¨ where subsidiaryand mine department leaders personally conduct monthly underground inspections. This strengthens on-site management ateach mine, facilitates timely identification and elimination of safety hazards, and demonstrates the Company’s primarycommitment to mine safety management through concrete actions.
Dazhong Mining’s affiliated mines have established detailed targets aligned with key safety indicators including accidentprevention, occupational disease control, safety education, and standardized safety production. Performance against thesetargets is incorporated into annual evaluations with corresponding rewards/penalties.
On November 29, 2024, the Lu’an Work Safety Committee, incoordination with the Municipal Earthquake Administration,Public Security Bureau, and county-level emergencymanagement departments across the city, along with over 20enterprises, conducted the “2024 Lu’an City Metal andNon-metal Mine Work Safety Accident ComprehensiveEmergency Drill” at subsidiary Jinrisheng Mining. Throughrigorous evaluation, the Lu’an Emergency ManagementBureau selected Jinrisheng Mining as the host venue for thiscity-wide emergency rescue drill demonstration event.Company leadership and the Safety & EnvironmentalProtection Department accorded high priority to the event,actively participating in planning and revising both the drillscenario and script. In accordance with the drill script, eightemergency rescue teams were organized to conduct multipleunderground rehearsals, involving a total of over 120participants.
Occupational DiseaseIncidence Rate0%
Work-related Fatalities
0Persons
Work Injury Rate
0%
Lost Workdays Dueto Injuries
0Days
Lost Workdays per Million RMB Revenue
0Days
Recordable InjuryFrequency Rate
0%
During thereporting periodt
The Company organized a total of 122 emergency drills with 2,596 participant attendances.
Metrics and TargetsManagement Measures
Work Safety IncidentsNew Occupational DiseasesHazard Rectification Rate
CaseCases
100%100%%
UnitTarget2024 AchievementIndicator
Safety Training Coverage &Certification Rate for SpecialOperations
%
100%100%
Zero fatalities, explosions, poisonings, major fires,equipment failures, or environmental incidents
Case Study
Jinrisheng Mining Hosts “2024 Lu’an City Metal and Non-metalMine Work Safety Accident Comprehensive Emergency Drill”
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During the reporting period
During thereporting period
Number of SafetyTraining Sessions
965Sessions
Participants inSafety Education
37,688Persons
Total SafetyTraining Hours
60,480Hours
Average TrainingHours per Employee16Hours/Person
Safety Hazard Inspection
The Company’s mining areas and production units regularly organizesafety production management personnel, engineering technicians,and other relevant personnel to investigate potential safety hazardswithin their respective units, conducting a comprehensive safetyproduction inspection each month. For general potential safetyhazards, the responsible persons of mining areas or workshops shallimmediately organize rectification with a correction period of 3-7days. For major potential safety hazards, all personnel must beevacuated from the hazardous areas, and production or usage shallbe temporarily suspended. The primary responsible person shallorganize the formulation and implementation of a hazard controlplan. Upon completion of rectification, an inspection and acceptanceprocess shall be conducted to confirm the elimination of hazardsbefore resuming operations or usage.
Safety Education and TrainingDazhong Mining regularly organizes training programs such as Safety Month campaigns and occupational health awarenessactivities. These training initiatives focus on safety production regulations, standard operating procedures, and emergencyresponse knowledge, enabling employees to master safe work practices and obtain necessary operation certifications, therebyfostering a strong mine safety culture.
Safety Education and Training StatisticsDuring the reporting period, theCompany conducted39 specialinspections, identifying 3 majorpotential safety hazards and 797general potential hazards, with arectification rate of 100%.
In December 2024, the Safety and Environmental Protection Department of Jiada Lithium Mine collaborated with ChinaRailway Equipment to carry out a special operation for safety hazard investigation in the mine tunnels. The inspectionteam conducted meticulous examinations area-by-area, section-by-section, and equipment-by-equipment, coveringtransportation roadways, ventilation systems, and support structures, thereby safeguarding underground operations.
Dazhong Mining thoroughly implemented the spirit of issuedby the Office of the Work Safety Commission of the State Council. During the 33rd National Fire Safety Month, focusingon the theme “Fire Safety for All, Life First”, Dazhong Mining conducted a series of fire safety knowledge lectures andpractical drills, organized employees from various plants, mines and functional departments to watch fire safety warningand education films, deeply learned lessons from fire accidents, used cases as references to draw inferences, andtightened and consolidated fire safety responsibilities. During the Fire Safety Month activities, Dazhong Mining hungmore than 30 fire safety promotional banners and slogans in key locations and critical areas; organized and conducted 21various specialized fire safety training sessions with 814 participant attendances.
Case Study
Jiada Lithium Mine Conducts Compre-hensive Safety Hazard Investigation
Case Study
Dazhong Mining Conducts “FireSafety Month” Campaign
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Contractor Safety Management
Occupational Disease Risk Prevention
To address potential occupational disease risks in the mining industry, such as diseases caused by exposure to dust, radioactivematerials, and other toxic and harmful factors, the Company has established management measures. These include providingemployees with occupational disease protective equipment that meets national occupational health standards, supervising andguiding employees to correctly wear and use the equipment according to regulations, establishing protective facilities,formulating protective systems to standardize protection procedures, and effectively prioritizing the health and safety ofemployees.Jinrisheng Mining conducts annual testing for occupational disease hazard factors and carries out an occupational hazard statusevaluation every three years. The Company has specifically installed dust collectors and noise detectors, and provides regularhealth examination services for employees.The Company provides employees with one health examination per year, achieving a coverage rate of 100%. Additionally, theCompany establishes occupational health monitoring records for employees, including their occupational history, exposurehistory to occupational hazards, occupational health examination results, treatment outcomes, and other relevant personal healthinformation related to occupational disease diagnosis and treatment. For employees who suffer or may suffer from acuteoccupational hazards during production operations, the Company promptly organizes medical treatment or observation andrecords the details in their personal health monitoring files.
To standardize and enhance the safety management and supervision of the Company’s outsourced projects, effectively controlrisks, eliminate potential hazards, and prevent various accidents, Dazhong Mining and its subsidiaries have establishedregulations including and The Safety and Environmental Protection Department exercises supervisory authority over the safety management of contractorsand their personnel, and ensures that contractors conduct three-level safety education and training (plant/mine level, workshoplevel, and team level) for their employees. The Company strengthens safety supervision and management of contractors,promoting the establishment of a self-regulatory mechanism for production safety among contractors.
To thoroughly implement ??? issued by Huoqiu County titled and to further promote the implementation of the Occupational DiseasePrevention and Control Law, subsidiary Jinrisheng Mining carried out the Occupational Disease Prevention and ControlLaw Awareness Week activities from April 25 to May 1, 2024. Jinrisheng Mining utilized various methods includingpre-shift meetings, public bulletin boards, training sessions, hanging promotional banners, and posters to widelydisseminate occupational health knowledge.
Case Study
Jinrisheng Mining Conducts Occupational DiseasePrevention Law Safety Awareness Week Activities
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Talent Recruitment & Development and Corporate SocialResponsibility Implementation
Our Actions
Humanistic Mines:
To Be a Social Duty BearerDazhong Mining has always upheld the philosophy of promoting value creationand sharing development outcomes. We place high importance on talentdevelopment, focusing on building a high-quality professional team, and havelong been committed to empowering employees, rural revitalization, povertyalleviation through education, and philanthropic donations. By fulfillingcorporate responsibilities and obligations, we demonstrate our mission andcommitment, embodying the profound meaning of “Humanistic Mining”through concrete actions.
SDGs Responded to in This Chapter
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Dazhong Mining has always regarded becoming a mining group recognized by its employees as one of its corporate visions,adhering to a people-oriented approach and pursuing development together with its employees. The Company is committed toattracting outstanding and like-minded talents to join, establishing a comprehensive employee career development system, andcreating and sharing value with employees. While providing favorable working conditions and environment for employees, theCompany also cares for their well-being, helps resolve their difficulties, and fosters a happy mining community.
The Company actively attracts talent through multiple approaches. In addition to regular external campus recruitment and socialrecruitment, the Company has established a comprehensive internal referral system to encourage employees to recommendqualified candidates. To this end, the Company has implemented the “Talent Scout Award” program, incentivizing all employees(excluding HR personnel) to recommend outstanding talent to the Group in compliance with the principle of familial recusal, withcorresponding rewards granted based on the position filled. Besides, the Company also provided employment assistance toveterans and disabilities.During the reporting period, the company onboarded 1,434 new employees, with voluntary turnover of277 employees worked at least one year of service, resulting in a turnover rate of 7.30%.
Dazhong Mining strictly complies with the , and other applicable labor and employment laws and regulations in the regions where its mines and plants are located.The Company has formulated the which specifies the fundamental management principles, code of conduct,career development, compensation and benefits, performance evaluation, and other relevant provisions for employees. TheCompany implements a matrix management system, whereby various departments of Zhongda Mining and its subsidiariescoordinate horizontally and provide vertical operational guidance in accordance with the Rules of Procedure for theShareholders' Meeting, the Supervisory Board, the Board of Directors, and the Managerial Meetings, as well as the , to efficiently achieve corporate objectives. Employees receive professional guidance and approvals fromfunctional departments in operational matters, while being subject to coordination and supervision by administrative leadershipin administrative matters.
Dazhong Mining consistently adheres to the principles of equal employmentand lawful employment, strictly complying with national laws and regulationsincluding the The Companyprohibits any form of discrimination based on gender, age, race, ethnicity,religion, nationality, etc. during recruitment, and strictly forbids theemployment of child labor, illegal employment, and forced labor. During therecruitment and hiring process, applicants are required to provide personalinformation such as identification cards, academic credentials, andcertificates to the Human Resources Department. The Company verifiesapplicants’ identities through multiple channels to prevent child laboremployment. All employees are hired under legally binding labor contracts.
Upholding Equal Employment
Diversified Recruitment Channels
Management System
Safeguard the LegitimateRights and Interests of Employees
Talent Recruitment and Development
During the reporting period
The Company achieved a100% labor contractsigning rate, with noincidents of child labor orforced labor occurring ateither the Company or itssubsidiaries.
By GenderBy Recruitment Channel
FemaleMale
Other RecruitmentChannelsSocialRecruitmentCampusRecruitment
New Employees
1,305
91.00%
9.00%
17.15%
22.11%
60.74%
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61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
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Note: Senior Management refers to employees at Deputy Director level and above.
Dazhong Mining fully respects and safeguards employees’ democratic rights as prescribed by law, including the rights toinformation, participation, expression, and oversight. The Company has established a labor union committee in accordance withlegal requirements and formulated regulations such as and Under the leadership of the Company’s general labor union, the committee represents and protects employees’ interests whileconducting its work independently and autonomously in compliance with the law. Employees may voluntarily participate in thelabor union.The labor union regularly organizes employees to engage in democratic processes such as elections, consultations,decision-making, management, and oversight. It provides multiple feedback channels, including employee forums and suggestionboxes, to actively collect and address employees’ opinions and needs. This establishes a comprehensive labor union servicesystem dedicated to serving employees.
Dazhong Mining fully safeguards all employee rights. The Company provides one-monthadvance notice to employees regarding termination of employment, position transfers, andcontract renewals, and implements changes only after obtaining employee consent. TheCompany strictly prohibits discrimination based on ethnicity, social class, language, religiousbelief, gender, age, or other factors in matters including hiring, compensation, trainingopportunities, promotion, termination, or retirement. Human rights protection is incorporatedas a mandatory component of pre-employment training for employees and security personnel,as well as in supplier due diligence processes Any labor disputes arising during theperformance of the labor contract may be appealed by the employee to a superior manager orresponsible department (Trade Union Committee, Human Resources Department) through thegrievance procedure. During the reporting period, the company had 11 labor dispute cases.
Dazhong Mining has established a series of policies including the andThese areoverseen by the corporate Human Resources department, with implementation carried out by HR departments acrosssubsidiaries.The Company adheres to the principle of “position-based salary, salary adjusted by position, salary adjusted by grade, and salaryadjusted by level” to establish a fair, transparent, and reasonable compensation and benefits system. To attract and recruit scarcesenior technical and managerial talents who are crucial to the Company’s development, the Company has established a“compensation special zone” for personnel whose salaries exceed the standard job-based pay scale. This initiative aims tomotivate employees’ autonomous work enthusiasm, enhance their professional capabilities and job performance, and ensure thecontinuous improvement of the Company’s core competencies as well as the realization of its long-term goals.
Promoting Democratic Management
Protection of Employee Rights
Compensation and Benefits Protection
During thereporting period
Labor union coverage reached 100%, and employee satisfactionwas 100%.
During the reporting periodDuring thereporting period,social insurancecoverage foremployeesreached 100%,
Employee Composition (2024)
As of the end of the reporting period, Dazhong Mining had a total of 3,780 full-time employees, including 3,289 male employeesand [491] female employees, with women accounting for 12.99% of the workforce. The workforce included [124] ethnic minorityemployees (3.28%), 92 veterans (2.43%), and 8 employees with disabilities (0.21%). There were no labor dispatch or part-timeemployees. The workforce demonstrates diversity in gender, background, education, professional fields, and ethnicity, withspecific distributions as follows:
Diversified Employee Structure
FemaleMale
Below 30 (excl. 30)30-40 (incl. 30, excl. 40)40-50 (incl. 40, excl. 50)50 and above
Frontline EmployeesMiddle ManagementSenior Management
Production
SalesTechnical
FinanceAdministration
Master’s DegreeBachelor’s DegreeAssociate DegreeBelow Associate Degree
OverseasMainland China
By Gender
By Age
By Job Level
By Function
By EducationBy Region
3,289
87.01%
12.99%
1,183
2,466
3,776
2,631
1,025
3,597
20.32%
31.30%
27.12%
21.27%
1.16%
3.68%
95.16%
69.60%
0.45%
6.72%
1.01%
22.22%
0.71%
16.80%
17.25%
65.24%
99.89%
0.11%
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77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
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Employee Care Initiatives
During thereporting period
The Company has established a comprehensive performance evaluation system. Monthly salaries are determined based on KPIperformance assessment and incremental work quantification. Employees who complete additional tasks beyond their regularduties receive extra compensation outside the standard salary range. On an annual basis, the Company conducts objective andfair departmental and individual performance evaluations for all employees. Salary grade promotions are directly linked to annualperformance results. For senior executives, compensation is tied to key indicators such as net profit, production output, safety,and environmental compliance. The Company publicly discloses the remuneration of its directors, and senior executives each year.If employees have questions or disputes regarding evaluation results or processes, they may promptly communicate with theassessors. If disagreements persist after discussion, they may file an appeal with the Operations Management Center or the HR &Administration Department of their respective business division. For payroll-related disputes or inquiries, employees may submit anappeal to the Human Resources Department within one month after salary disbursement. The HR department will provide a clearresponse within one week.
Dazhong Mining is committed to enhancing employee well-being. While creating optimal working conditions, the Companyactively supports employees’ personal lives through ongoing care programs and targeted assistance for those in need.These efforts continuously improve employee satisfaction and happiness, fostering a genuinely recognized “Happy MiningGroup.” During the reporting period, the Company conducted an employee satisfaction survey to gather feedback on workenvironment, corporate culture, compensation & benefits, career development, and management communication.
Dazhong Mining consistently focuses on assisting financially struggling employeesby implementing tailored support measures aligned with both corporate values andstaff needs. The Company diligently advances its aid programs to provide tangiblesolutions, effectively addressing employees’ difficulties.
Dazhong Mining’s Support Measures for Employees in Need
Employee Benefits System
Performance Evaluation and Appeal Mechanism
The Company’s basic employee benefits expenditure amounted to
16.0836 million yuan.
EmployeeMutual-Assistance
Platform
A dedicated platform mobilizes internal and external resources to provide job counseling,entrepreneurship guidance, and skills training to empower employees in need.
EmployeeCare Fund
The Company established a fund to assist struggling employees and their families throughhardship grants, charitable donations, and care visit, fostering solidarity and cohesion.
Employee Basic Pension Insurance, Employee Basic Medical Insurance, Unemployment Insurance,Work-Related Injury Insurance, Maternity Insurance, Housing Provident Fund
Social Insurance & Housing Fund
Statutory Holidays, Marriage Leave, BereavementLeave, Maternity Leave, Work-Related Injury LeaveLeave Benefits
Daily BenefitsCommuting & Transportation Allowance, Meal Subsidy, Birthday Benefits, Holiday & Summer Benefits, Employee HealthCheckups, High-Altitude Allowance, Underground Meal Service for Mining Employees
Special AllowanceEducation & Professional Title Allowance, SenioritySubsidy, Wedding Bonus & Condolence Payment
During thereporting period
The average employee compensation was 18.07 ten thousand yuan, accounting for
17.85% of the Company’s operating revenue.The per capita revenue generated was
101.25 ten thousand yuan.
During thereporting period
The Company providedassistance to 72employees in need.
Assistance inApplying for
Social Aid
The union helps eligible employees apply for social relief programs (e.g., unemploymentinsurance, hardship subsidies, disaster aid) to secure additional support and alleviatefinancial burdens.
RegularVisits &Support
The labor union conducts periodic visits to employees facing hardships, identifying theirliving difficulties and needs while offering necessary assistance and emotional support.
EstablishEmployeeAssistance
Records
The labor union maintains detailed records of employees in need, tracking familycircumstances, financial status, and health conditions to provide a basis for targeted support.
Employee Care ProgramsSupport for Employees in Need
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Dazhong Mining focuses on safeguarding and protecting the rights and interests of female employees. It is explicitly stipulatedin the and the that normal childbirth entitles employees to 158 days ofmaternity leave (including 15 days before delivery), no overtime or night shifts are arranged for pregnant women who are morethan seven months pregnant; breastfeeding mothers are entitled to one hour of breastfeeding time per day (with an additional30 minutes for each baby in the case of multiple births). Moreover, it is prohibited to assign female employees to workunderground in mines, engaging in labor with the fourth level of physical intensity as stipulated by the state, as well as otherprohibited types of labor. In the processes of training, selection, professional technical assessment, and promotion, the principleof gender equality is strictly adhered to. Equal pay for equal work is implemented between men and women. The company iscommitted to creating a fair and equal working environment, ensuring that all employees, regardless of gender, have equalopportunities for career development and remuneration.
In December 2024, Dazhong Mining’s Party Committee partnered with Xiaoshetai Town’s Party Committee, localgovernment, and Women’s Federation to organize the “Urad Embroidery Skills Preservation and Ethnic Cultural HeritagePromotion” competition. The event featured Narenqimuge, the designated inheritor of Bayannur City’s Intangible CulturalHeritage project for Urad Embroidery, as chief judge. Eleven competition entries demonstrated how traditionalneedlework techniques can stitch modern livelihoods, with artisans literally weaving pathways to prosperity through theirvibrant threadwork.
Dazhong Mining and its subsidiaries have established dedicated counseling rooms to provide employees with professionalpsychological support services. Regular mental health education programs are conducted to promote psychological well-being.Additionally, the labor union offers warm and caring psychological counseling services to enhance employees’ mental resilienceand foster positive mindsets.
To ensure employees can enjoy proper relaxation and rest amidst demanding work schedules, the Company and its subsidiariesactively organize diverse cultural activities to promote healthy lifestyle concepts, continuously strengthening team spirit andemployee well-being.
Employee Activities
On December 4, 2024, subsidiary HunanDazhonghe sent a 14-member team to participatein the Linwu County 2024 New Era IndustrialWorkers Fun Games. The team showcased theirskills in various events, including multi-directionaltug-of-war, beach landing, whirlwind run, andteam drumming. After intense competition,Hunan Dazhonghe achieved outstanding resultsdue to exceptional organizational skills, strongteamwork, and excellent performance, earningthe “Outstanding Organization Award” at theevent.
Protection of Female Employees’ Rights and IntereststEmployee Mental Health Initiatives
Case Study
Dazhong Mining Facilitates Preservation of IntangibleCultural Heritage - Urad Embroidery Initiative
Case Study
Subsidiary Hunan Dazhonghe Actively Participates in LinwuCounty 2024 New Era Industrial Workers Fun Games
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During the reporting period
On August 9, 2024, Dazhong Mining collaborated with the Urad Front Banner Women’s Federation, Communist YouthLeague Committee, and Trade Union to organize a social networking event for young professionals. Participantsincluded single employees from Dazhong Mining and local government agencies in Urad Front Banner. Thiscorporate-sponsored initiative successfully created a structured platform for interpersonal connection and relationshipbuilding, while promoting healthy social values and marriage perspectives among employees.
Dazhong Mining adheres to a talent-centric development strategy, progressively establishing a comprehensive, standardized,and high-efficiency talent cultivation mechanism. The Company focuses on holistically enhancing employees’ knowledge base,professional skills, comprehensive competencies, and career ethics to ensure robust, healthy, and sustainable corporate growth,thereby laying a solid talent foundation for long-term prosperity.
The Company is committed to talent development through implementing policies such as the and, establishing a multi-dimensional training system covering pre-job,on-the-job, promotion and specialized skill enhancement training. To this end, the Company has built a professional, efficientand innovative internal lecturer team. Using Dazhong Mining’s online learning platform as the carrier, the Company activelyconducts training activities and develops high-quality courses while continuously expanding and optimizing training resources.The curriculum system is meticulously designed and improved to meet the specific needs of employees at different levels andcategories. For instance: providing onboarding training and pre-job guidance for new campus recruits, leadership trainingprograms for departmental management teams, and solid support for the high-quality development of both employees and theenterprise. In addition to organizing various training courses to enhance employee competencies, it encourages employees topursue further education at colleges or professional training institutions. Employees may submit their graduation/completioncertificates to the HR department for record, which will serve as reference for transfers and promotions.
New Employee Training Implementation
Leadership Training Implementation
Training Investment
34.5 ten thousand yuan
Training Sessions
1,339 times
Total Trainees
3,560 persons
Total Training Attendances
37,418 person-times
Employee Training Coverage Rate
94.2%
Total Training Hours
24,958 hours
Average Training Hours per Employee per Year
6.6 hours
Employee Training & Development
Employee Training
Training Categories
?Job Skills Training ?Promotion Training?Special Short-term Training ?Thematic Seminars?Individual Further Education?External Dispatch Training
New Employee Training
?Orientation Training?On-the-job Training
In-service TrainingDazhong Mining Employee Training SystemCase Study
Dazhong Mining Hosts “Love in Urad”Youth Social Networking Event
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61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108
109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124
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Humanistic Mines: To Be a Social Duty Bearer2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
During thereporting period
Senior Management
36 hours
Middle Management50 hours
Frontline Employees
4.5 hours
Dazhong Mining has established comprehensive policies including ?and creating dual career pathways that integrate vertical promotionwith horizontal cross-functional mobility.The Company implements a merit-based advancement system where diligent, high-performing employees demonstratingexceptional capabilities are prioritized for promotion opportunities through competitive selection processes. Concurrently, theorganization facilitates lateral career development by providing cross-functional platform opportunities. When position vacanciesoccur, qualified employees may undergo assessment for role transitions, enabling diversified professional growth within thecorporate structure.
Promotion Channel：Staff Level → Supervisor Level → Department Head Level →Executive Level
Dazhong Mining Position Development System
Through technical title evaluation: Technician → Assistant Engineer (GradeII/I) → Engineer (Grade III/II/I) → Senior Engineer (Grade III/II/I/ChiefEngineer)
Career Advancement & Development
IndicatorNumber of Internal Transfers/Internal Applicants (persons)Internal Transfer/Application Rate (%)Number of Female Executives (persons)
20241,413
37.31%
Job Category：Management & Professional Track
Job Category：Technical Track
Horizontal development
Horizontal development
Verticaldevelopment
Promotion Channel：Through skills assessment: Junior Worker →Intermediate Worker → Senior Worker → Technician (Grade III/II/I) →Senior Technician (Grade III/II/I)Job Category：Operations & Maintenance Track
Average Training Hours by Job Level
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29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44
45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108
109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124
125 126 127 128 129 130 131 132133 134 135 136 137 138 139 140141 142 141 142
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Humanistic Mines: To Be a Social Duty Bearer2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
During the reporting period
Fulfilling Social Responsibility
Commitment to Philanthropy
Dazhong Mining actively fulfills its social responsibilities. Whilecommitted to corporate growth and development, theCompany considers giving back to society, supporting publicwelfare, and demonstrating compassion as its duty, embodyingthe profound meaning of “progress through prosperity”through concrete actions. Additionally, the Company activelyresponds to the national rural revitalization strategy and seizesnew opportunities in the high-quality development phase ofthe “Belt and Road” initiative to create sustained value for thenation, society, and the public.
Note: Social contribution value per share = (Company's net profit +taxes paid to the state during the year + wages paid to employees +interest paid to creditors such as banks + donations and other valuecreated for stakeholders - social costs such as environmentalpollution) / total number of company shares.
Since its establishment, Dazhong Mining has consistently focused on philanthropic causes, demonstrating its social responsibilitythrough practical actions and dedicating itself to supporting the development of public welfare initiatives. The Company hasfirmly rooted the traditional Chinese virtues of “striving for excellence and embracing kindness, finding joy in charitable deeds”within its corporate culture.
Total Social Welfare Investment
7.91 million yuan
Number of Public Welfare Activities11 times
Volunteer Participation165 person-times
Total Hours Contributed660 hours
Average Volunteer Hours per Person
0.18 hours
Number of individualsreceiving assistance
Dazhong Mining remains steadfast in its commitment to co-creating better livelihoods, proactively undertaking corporateresponsibilities to give back to society. In 2024, the Company contributed nearly 1 million RMB in cash and supplies to supportChenzhou’s flood-stricken areas and assist disadvantaged communities.
In 2024, Chenzhou suffered catastrophic rainfalltriggered by Typhoon “Gaemi” (No. 3), with 111townships affected across the municipality. Zixing Cityrecorded precipitation levels exceeding provincialhistorical records, resulting in severe devastation.Demonstrating the Chinese ethos of “solidarity inadversity,” Dazhong Mining responded to the municipalgovernment’s appeal by donating 1 million RMB onAugust 1 to support emergency relief operations.
Poverty Alleviation & Disaster Relief
Dazhong Mining adheres to the deep integration of poverty alleviation and intellectual empowerment, actively carrying outeducational sponsorship initiatives to further promote educational support. The Company annually collaborates with universitiesto implement the “Dazhong Mining Scholarship” program, providing financial aid, stationery supplies, and opportunities for visits,internships, and social practice to underprivileged students. Cumulatively, the Company has donated over 10 million RMB toeducational causes, contributing substantial Dazhong strength to the advancement of education.
Educational Sponsorship
On March 8, 2024, the Bayannur City and Urad Front BannerWorking Committee for Caring for the Next Generation jointlyorganized the 2024 Banner-wide Conference on Caring for theNext Generation. During the conference, Dazhong Mining wasawarded the title of “Caring for Tomorrow, SupportingEducation” Exemplary Enterprise, and the Company’s Directorand General Manager Lin Pusheng was honored as “Caring forTomorrow, Supporting Education” Exemplary Individual.
During thereporting period
The social contribution valueper share was 1.36 yuan.
Case Study
Dazhong Mining’s 1 Million RMB DisasterRelief Donation to Chenzhou
Case Study
Dazhong Mining Honored as “Caring for Tomorrow,Supporting Education” Exemplary Enterprise
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77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108
109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124
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Humanistic Mines: To Be a Social Duty Bearer
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Supporting Rural Revitalization
Advancing the Belt and Road Initiative
Dazhong Mining contributes to urban infrastructure development through philanthropic donations, enhancing city growth andresidents’ quality of life.
Under the guidance of the Belt and Road Initiative, Dazhong Mining has accelerated its overseas expansion. In 2024, theCompany registered a subsidiary in Singapore to enter overseas markets. The resource development team conducted fieldsurveys at Liberia, formulated comprehensive operational plans, and procured 285,000 tons of mineral resources from SouthAfrica, Liberia, Turkey and other countries, laying the foundation for future subsequent trade route connection. The Companyadheres to a 'trade-first, development-second' phased strategy, employing a 'rolling development and mine-sustaining-mine'model to achieve steady expansion of high-quality mineral resource acquisitions..
For years, the Company has actively responded to the national rural revitalization strategy by addressing local livelihoodissues—resolving dilapidated housing problems, building roads, repairing wells, and providing flood/droughtrelief—demonstrating its social responsibility through concrete actions to promote coordinated development between ruralrevitalization and regional economies.
Supporting Urban Development
In June 2024, a high-level delegation including Urad Front Banner Party Secretary Suyalatu, Dazhong Mining’s actualcontroller Lin Lairong, and Head of Party-mass and Administration Affairs Liu Luming visited Hetao College - BayannurCity’s sole undergraduate institution - to discuss government-enterprise-school collaboration and long-term strategiccooperation. During this visit, Dazhong Mining donated 1 million RMB to establish the Hetao College Education Fund. Thisstrategic partnership represents Dazhong Mining’s commitment to elevating Hetao College’s capabilities in teaching,scientific research, and community service. The initiative aims to foster a regional development consortium across allbanners and counties of Bayannur City through collaborative advancement.
On January 8, 2025, the Urad Front BannerCharity Association convened its 2024Annual Summit and held a donation cere-mony. Dazhong Mining donated 500,000yuan, with 475,000 yuan earmarked formunicipal road maintenance under theBanner’s Urban-Rural Development Bureau,and the remaining 25,000 yuan supportingthe Charity Association’s operations. Thisinitiative demonstrates Dazhong Mining’ssteadfast commitment to urban infrastruc-ture advancement.
In December 2024, Dazhong Mining’s Party Committee learnedthat Tian Jun, a vegetable farmer in Group 5 of Mabulzi Village,Dashetai Town, Urad Front Banner, faced over 40 acres ofunsold cabbage in his greenhouses. The committee promptlyorganized a team to assess the situation and decided topurchase 20,000 jin (10 metric tons) of cabbage to alleviate hisurgent difficulties. This act not only earned the farmer’sgratitude but also high praise from Urad Front Banner’s Social
In 2024, the Company proactively funded the construction of new housing for surrounding villagers and conductedsafety renovations for dilapidated dwellings in Xiaojinggou Village, Xiaoshetai Town, significantly improving local livingconditions. Throughout the construction process, rigorous quality control measures were implemented, with premiumbuilding materials selected to ensure all new structures meet durability and safety standards.
Work Department. Corporate growth is inseparable from societal support, and this farmer assistance initiative is just one example ofDazhong Mining’s commitment to social responsibility. Moving forward, the Company will continue to focus on public welfare andactively participate in charitable causes.
Case Study
Dazhong Mining Establishes Long-term Strategic Partnershipwith Hetao College, Donates 1 Million RMB Education Fund
Case Study
Fulfilling Social Responsibility,Empowering Urban Construction
Case Study
Party Committee’s Caring Initiative forFarmers, Fulfilling Responsibilities
Case Study
People-Centric Approach, MutualVillage-Enterprise Benefits
01 02 03 04 05 06 07 08 09 10 11 12
13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44
45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108
109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124
125 126 127 128 129 130 131 132 133 134 135 136137 138 139 140141 142 141 142
144 147 148
Humanistic Mines: To Be a Social Duty Bearer
2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Improving Governance Systems:Strengthening the Development Foundation
We will improve our governance system with a global perspective, create a model of modern corporate governance, integrateenvironmental and social risks into comprehensive risk management, and enhance ESG information disclosure mechanisms towin long-term trust from the capital market through transparent and standardized operations. Over the next three years, we willcultivate a group of interdisciplinary governance talents with international vision, making modern corporate systems a solidguarantee for the Company’s enduring success.
Prioritizing Ecology:Leading Green MiningGreen principles will be deeply embedded in our corporate development. Guided by “ecological priority,” we will promote greendevelopment, increase environmental protection investments, innovate in the application of environmental technologies, andachieve pollution prevention and control throughout the production process. By implementing mine ecological restorationprojects, we will build a synergistic system for resource development and ecological conservation, establish zero-carbondemonstration mines, and create benchmarks for green mining, providing replicable experience for industry transformation andsupporting the national "dual carbon" goals.
Future Outlook
Standing at a new historical starting point, Dazhong Mining will aim to “build a benchmark for sustainable development inChina’s mining industry,” focus on three strategic dimensions, and establish a new development paradigm of“governance-ecology-responsibility,” composing a more splendid green chapter on the path of high-quality development.
Practicing Social Responsibility:Promoting Shared DevelopmentThe true value of an enterprise lies in creating shared well-being. We will build a comprehensive employee development system,enhancing employee happiness through full-cycle career growth mechanisms. We will deepen the construction of the“Mining-Land Community of Shared Destiny,” drive regional economic development through industrial synergy, and extend ESGvalue to areas such as community co-construction, education support, disaster relief, and low-carbon transition, working hand inhand with all sectors of society to create a better future.With the perseverance of Yu Gong who moved mountains and the determination of Jingwei who filled the sea, let us compose amagnificent chapter of green transformation on the new journey of mining development, illuminating the bright prospects ofsustainable mining with responsibility and commitment!
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13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44
45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108
109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124
125 126 127 128 129 130 131 132 133 134 135 136 137 138139 140141 142 141 142
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look into the future2024 Environmental, Social, and Governance (ESG) ReportDazhong Mining Co., Ltd.
Appendix
Index Form
Report Section
Global ReportingInitiative Standards
(GRI Standards)
China CorporateSustainability ReportingGuidelines (CASS-ESG 6.0)
Self-Regulatory Guidelinesfor Listed Companies No.17 – SustainabilityReporting (Trial)
Material Topics
Related
Report Section
Global ReportingInitiative Standards(GRI Standards)
China CorporateSustainability ReportingGuidelines (CASS-ESG 6.0)
Self-Regulatory Guidelinesfor Listed Companies No.17 – SustainabilityReporting (Trial)
Material TopicsRelatedAbout This Report2-1/2-2/2-3P1.1/P1.2/Chairman’s Message/P2.1/2024 Sustainability Highlights
/
///Introduction of Dazhong Mining2-1/2-6/2-8P3.1/P3.2/P3.3//ESG Governance
Mechanism
2-14
G1.1.1/G1.1.2/G1.1.4/
G1.1.5/G1.1.6
Articles 11
Articles 4Articles 6
Articles 12
/Progress on ESGStrategy and Goals
3-3G1.1.7/G1.1.11
Articles 11Articles 13
/ESG Risk Management/G1.2.3Articles 52/ESG Training & Promotion2-17G1.1.3Articles 12/StakeholderCommunication
2-16/2-29/3-1G1.2.3/G1.3.1/G1.3.2
Articles 9Articles 53
StakeholderengagementMaterial IssueManagement
3-2/3-3G1.1.8
Articles 5Articles 52
Due DiligenceSpecial Focus I:
Accelerating Lithium Mine Construction toPioneer a New Chapter of Development
////Special Focus II:
Advancing Energy Conservation &Consumption Reduction Upgrades toBuild an Eco-Development Engine.
E3.1.5/E3.3.2/E3.3.4/
E3.3.5/S2.1.13
Articles 42
Innovation DriveEnergy UtilizationCircular Economy
SoundGovernance:
ResponsibilityforGovernance
Party Building as the
Guiding Principle
////Standardize Corporate
Governance
2-9/2-10/2-11/2-12/2-13/2-18/2-19/2-20/2-
27/405-1
///Prevention and Control
of Compliance Risks
207-1/207-2///Investor Rights
Protection
2-16/2-27/201-1///
Adherence toBusiness Ethics
2-23/2-27/205-
2/206-1
G2.1.1/G2.1.2/G2.1.3/G2.1.4/G2.1.5G2.1.6/G2.1.7/G2.2.2
Articles 55-56
Anti-commercialbribery andanti-corruptionFair competition
Green Mines:
To be aGreenPioneer
Climate Change
Response
201-2/305-1/305-
2/305-4/305-5
E1.1.1/E1.1.2/E1.1.3/E1.1.4/E1.1.5/E1.1.6/E1.1.7/E1.1.8/E1.1.13/E1.1.14/E1.1.15/E1.1.16/
E1.1.17/E1.1.18/
E1.1.19
Articles 21-28Climate Response
EnvironmentalProtection & Pollution
Control
305-6/305-7/306-1/306-2/306-3/306-
4/306-5
E2.1.1/E2.1.2/E2.1.3/E2.1.5/E2.1.6/E2.1.7/E2.1.8/E2.1.9/E2.2.1/E2.2.2/E2.2.3/E2.2.4/E2.2.5/E2.2.6/E2.2.7/E2.4.1/E2.4.2/E2.4.3/
E2.4.4
Articles 29-31
Articles 33
Environmentalcompliance managem
Pollutant discharg
Waste disposa
Circular Economy &Resource Utilization
302-1/302-2/302-
3/302-4/302-5/303-1/303-2/303-3/303-
4/303-5
E3.1.1/E3.1.2/E3.1.3/E3.1.4/E3.1.5/E3.2.1/E3.2.2/E3.2.3/E3.2.4/E3.3.1/E3.3.2/E3.3.3/E3.3.4/E3.3.5/E3.3.6
Articles 35-37
Energy utilizationWater resources
utilizationCircular economGreen Mines &Ecological Conservation
304-1/304-
2/304-3
E2.3.1/E2.3.2/E2.3.3Articles 32
Ecosystem and
biodiversity
protection
Smart Mines:
InnovativeDevelopmentfor Win-Win
R&D and Innovation203-1
S2.1.1/S2.2.2/S2.1.3/S2.1.4/S2.1.5/S2.1.6/S2.1.7/S2.1.10/S2.1.12/
S2.1.13
Articles 42
InnovationEthics of science
and technoloInformation Securityand Privacy Protection
417-2/417-3/418-1
S3.4.1/S3.4.2/S3.4.3/
S3.4.4
Articles 48
Data security andprivacy protectionResponsible SupplyChain Management
414-1/414-2/308-1/308-2
S3.1.2/S3.1.3/S3.1.4Articles 45
Supply chain secu
Equal treatment
of SMEs
SustainableDevelopmentManagement
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45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
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Appendix
2024 Environmental, Social, and Governance (ESG) Report
Dazhong Mining Co., Ltd.
Dear Readers：
Thank you for taking the time to review our report. We highly value and sincerely welcome your feedback, as yourcomments and suggestions will serve as important references for us to continuously improve our ESG disclosure standardsand advance our ESG management and practices. We genuinely appreciate your valuable input!
1.Your overall evaluation of our ESG performance:
□ Excellent □ Good □ Fair □ Poor □ Very Poor
2.Your overall evaluation of this report:
□ Excellent □ Good □ Fair □ Poor □ Very Poor
3.How do you rate our stakeholder engagement efforts?
□ Excellent □ Good □ Fair □ Poor □ Very Poor
4.How do you rate our product responsibility practices?
□ Excellent □ Good □ Fair □ Poor □ Very Poor
5.How do you rate our environmental, safety, and occupational health performance?
□ Excellent □ Good □ Fair □ Poor □ Very Poor
6.How do you rate our employee responsibility practices?
□ Excellent □ Good □ Fair □ Poor □ Very Poor
7.How do you rate our overall ESG performance?
□ Excellent □ Good □ Fair □ Poor □ Very Poor
8.What comments or suggestions do you have regarding our ESG practices and this report?
——————————————————————————————————————————
Feedback Form
You may contact us through the following channels:
Offline Mail
Mailing Address: 12th Floor Conference Room, DazhongMining Co., Ltd., No. 55 Huanghe Street, Baotou City, InnerMongolia Autonomous RegionPostal Code：014010
Online Feedback
Email：info@dzky.cn
(GRI Standards)ESG 6.0)》报告（试行）》
Safe Mines:ToBe a SafetyBenchmark
Product and Service
Safety & Quality
417-3
S3.3.1/S3.3.2/S3.3.4/
S3.3.5
Articles 47
Product andservice safetyProduction Safetyand Occupational
Health
403-1/403-2/403-
3/403-4/403-5/403-6/403-7/403-9/403-10
S4.2.1/S4.2.2/S4.2.3/S4.2.4/S4.2.5/S4.2.6
Articles 50Employees
HumanisticMines: To Bea Social DutyBearer
Talent Recruitmentand Development
401-1/401-2/404-
1/404-2/405-1/405-2/406-1/408-1/409-1
S4.1.1/S4.1.3/S4.1.4/S4.1.5/S4.1.6/S4.1.7/S4.1.8/S4.1.9/S4.1.11/S4.1.12/S4.3.1/S4.3.2/S4.3.3/S4.3.4/S4.3.5/
S4.3.6
Articles 49Articles 50
Employees
Fulfilling SocialResponsibilities
413-1/415-1
S1.1.2/S.1.1.3/S1.2.1/S1.2.2/S1.2.3/S1.2.4/
S1.2.6
Articles 39Articles 40
Rural revitalizationSocial contributionsFuture Outlook2-22A1//Appendices
Index/A3Articles 57/Feedback Form2-26A6Articles 9/
Report Section
Global ReportingInitiative Standards
(GRI Standards)
China CorporateSustainability ReportingGuidelines (CASS-ESG 6.0)
Self-Regulatory Guidelinesfor Listed Companies No.
17 – SustainabilityReporting (Trial)
Material Topics
Related
01 02 03 04 05 06 07 08 09 10 11 12
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77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108
109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124
125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140141 142 141 142
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2024 Environmental, Social, and Governance (ESG) Report
Dazhong Mining Co., Ltd.
Appendix