PB 1HBIS Resources Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
CONTENTS
Deepen overseas ventures Leading value innovation
Report preface 03 25 and build a solid foundation sharing and integrating a for stable operation 57 better society
Statement of the Board of Directors 06
Address by chairman 07 Standardized operation to improve 27 Innovation-driven stimulating 59
management efficiency technological vitality
About us 09
Abiding the law being compliant 30 Mutual benefit and 63
and preventing operational risks win-win cooperation building a
ESG management 13 responsibility chain
Excellent quality to win customer 35
2025 annual responsibility performance 17 trust People-oriented building a stage 65
for growth
Upholding the bottom line and 37
fortifying the security barrier Inclusiveness for a harmonious 72
Responsibility focus I: 19 community
ensuring supply of high-quality ore Practice ecological
enhancing global industrial resilience 41 excellence and create a Future prospects 75green resource landscape
Annex 76
Responsibility focus II: 23 Low-carbon development 43
addressing climate change
jointly building the "Belt and Road"
r e a p i n g f r u i t s o f C h i n a - A f r i c a Environmental management to 44
cooperation strictly control pollution emissions
Clean production to reduce 48
resource consumption
Ecological restoration to reshape 51
the mining area landscape
01 02HBIS Resources Co. Ltd. Report preface
Report preface
Report description Data sources and reliability assurance
This report is the 6th Environmental Social and Governance (ESG) Report publicly released by HBIS Resources Co. Ltd. It aims to truthfully All information and data cited in this report are from HBIS Resources’ official documents statistical reports and financial reports as well
reflect the Company’s development and practical achievements in ESG during 2025 disclose the Company’s operation condition to as internal data and public information from various functional departments and business departments counted summarized and reviewed
stakeholders and help shareholders creditors partners employees and other stakeholders gain a deeper understanding of the Company’s by the Company. Unless otherwise specified all currencies and amounts mentioned in this report are in CNY. In the case of discrepancies
social responsibility practices. We hope to enhance communication with stakeholders by issuing this ESG report to build consensus and between the financial data and the annual report the annual report shall prevail.promote sustainable development.Reporting period Reference remarks
This report is an annual report covering the period from January 1 2025 to December 31 2025. To enhance the comparability and In this report for ease of expression and reading “HBIS Resources” “the Company” and “we” refer to “HBIS Resources Co. Ltd.” “HBIS Group”
prospectiveness of this report some content is extended. refers to “HBIS Group Co. Ltd.” “PMC” refers to “Palabora Mining Company Proprietary Limited” and “PC” refers to “Palabora Copper (Pty)Limited”.Report scope
This report focuses on HBIS Resources Co. Ltd. and its consolidated subsidiaries and branches. Unless otherwise specified the scope of this Unit description
report is consistent with that of the Company’s annual report.In this report monetary amounts involving ZAR are converted to CNY based on the exchange rate at the end of the reporting period (December
312025).
Basis of preparation
United Nations 2030 Sustainable Development Goals (SDGs)
Sustainability Reporting Standards of the Global Reporting Initiative (GRI Standards) Report accessibility
Self-regulatory Guidelines for the Companies Listed on the Shenzhen Stock Exchange No. 1 - Standardized Operation of the Companies Listed In order to practice the philosophy of low-carbon environmental protection and sustainable development this report can be read online or
on the Main Board issued by Shenzhen Stock Exchange downloaded in electronic version on the Company’s website (http://www.hbiszy.com) and (www.cninfo.com.cn). If you would like to learn
more about the Company beyond this report you can refer to the Company’s annual report or browse the Company’s website.Self-regulatory Guidelines for the Companies Listed on the Shenzhen Stock Exchange No. 17 – Sustainable Development Report (Trial) issued
by Shenzhen Stock Exchange
Guidelines for the Sustainable Development Report of Chinese Enterprises (CASS-ESG 6.0) - Ferrous Metal Mining Processing and Smelting
Industry issued by China Enterprise Reform and Development Society and CSR Cloud Research Institute
03 04HBIS Resources Co. Ltd. Statement of the Board of Directors
Statement of the Board of Directors
In accordance with the Company Law of the People’s Republic of China the Securities Law of the People’s Republic of China
the Code of Corporate Governance for Listed Companies the Self-regulatory Guidelines for the Companies Listed on the
Shenzhen Stock Exchange No. 1 - Standardized Operation of the Companies Listed on the Main Board the Self-regulatory
Guidelines for the Companies Listed on the Shenzhen Stock Exchange No. 17 - Sustainable Development Report (Trial) of
Shenzhen Stock Exchange and other laws regulations normative documents and the Company's Articles of Association
the Company has established the Environment Social and Governance (ESG) Committee under the Board of Directors
continuously improving and perfecting the ESG governance structure and management system.The Board of Directors is the highest decision-making body for the Company's environmental social and governance matters.It is responsible for integrating ESG matters into the Company's management regulations and business decision-making
processes approving the formulation of the Company's ESG strategy risk management information disclosure and goal
implementation and ensuring the independence efficiency and professionalism of the Company's ESG governance.Members of the ESG Committee are elected by the Board of Directors. They work under the leadership of the Board of
Directors are accountable to the Board of Directors and regularly report to the Board of Directors on the annual progress of
ESG work. The ESG Committee mainly fulfills the following responsibilities: researching and formulating the Company's ESG
development policies core strategies and performance evaluation standards; formulating strategic plans implementation
rules and annual work objectives for the Company’s ESG management; guiding and supervising the implementation of the
Company's ESG-related work supervising actual performance and goal completion of ESG work and providing optimization
suggestions and improvement recommendations to ensure the timely achievement of various ESG objectives; deliberating
the Company’s ESG-related reports and other significant ESG-related matters and providing professional deliberation
opinions to the Board of Directors.During the reporting period the Board of Directors attached great importance to the expectations of stakeholders on ESG
matters conducted stakeholder engagement activities in combination with industry characteristics and key issues of the
Company's operation screened assessed and prioritized ESG issues and promptly adjusted and determined the Company's
material ESG issues. Based on the external macro-economic and social environment and the Company's overall development
strategy the Board of Directors coordinated and promoted the strict implementation of ESG management responsibilities
across the Company and various departments and conducted a comprehensive self-assessment of the completion status of
ESG indicators and the achievement of annual targets for each module in 2025.This report discloses the detailed progress and achievements of the Company's ESG work in 2025 which has been deliberated
and approved by the Board of Directors. The Company's Board of Directors and all directors pledge that the report contains no
false records misleading statements or major omissions and bears joint and several liability for the authenticity accuracy
and integrity of the report.
05 05 06 06HBIS Resources Co. Ltd. Address by chairman
Address by chairman
This year we focused on governance empowerment and biodiversity protection and green mine construction.improved the corporate governance system to solidify
the foundation for development with standardized This year we fulfilled our responsibilities anchored
management and control. We strengthened compliance our common development goals and conveyed the
management improved the risk prevention and control warmth of the enterprise through practical actions. The
system strictly adhered to the bottom line of business Company adhered to innovation-driven development
ethics and effectively protected the rights and interests stimulated technological vitality improved the innovation
of investors. Focusing on quality excellence we deepened management system participated in core academic
the whole-process quality management optimized the conferences multiple times and collaborated with
service system and solidified the cornerstone of customer higher education institutions such as the University
trust. Adhering to the safety bottom line we continuously of South Africa to accelerate the transformation of
improved the safety management system fully practiced scientific and technological achievements; upheld a
the "Zero Harm" safety philosophy prioritized personnel people-oriented approach strictly complied with local
health and work safety and consolidated the foundation laws and regulations such as the Constitution of South
for stable overseas operations. Africa and the Employment Equity Act and effectively
safeguarded the legitimate rights and interests of
This year we remained true to our green aspirations employees; actively fulfilled its social responsibilities
fulfilled our commitment to "carbon peaking and carbon by persisting in local hiring supporting local business
neutrality" development and painted the ecological development and aiding educational initiatives and truly
landscape with precise measures. The Company achieved the goal of "teaching a man to fish rather than
coordinated pollution control ecological protection and giving him a fish"; invested in public infrastructure and
biodiversity protection and strengthened the construction healthcare built a harmonious and inclusive symbiotic
of green mines. The Company took permit compliance community and continuously unleashed social value while
as the baseline and ultra-low emissions as the goal and creating economic value thus allowing the fruits of its
systematically advanced the whole-process management development to benefit more people.of air water and solid waste. In 2025 the Company
Chairman of HBIS Resources Co. Ltd. Wang Yaobin completed the review of mine closure costs and updated Looking ahead HBIS Resources will proactively integrate
reclamation standards to designate 21 hectares of land for into the national "carbon peaking and carbon neutrality"
simultaneous ecological restoration gradually restored goal and the in-depth promotion of the "Belt and Road"
In 2025 the uncertainties arising from the evolving geopolitical landscape intensified accelerating
ecosystem functions through landform reshaping high-quality development take the development of new
the restructuring of global industrial chain. Under the background of the national "carbon peaking and
soil improvement and planting of native vegetation quality productivity as the traction unwaveringly follow
carbon neutrality" goal and the in-depth promotion of the "Belt and Road" high-quality development
implemented the Biodiversity Action Plan and regularly a green and sustainable path promote the synergistic
HBIS Resources firmly seized the historical opportunity to develop new quality productive forces deeply
conducted ecological survey entomological monitoring advancement of economic environmental and social
integrated ESG concepts into the entire process of corporate strategy and operation committed to
and assessment of herbivore activity trails to effectively value and strive to write a new chapter of high-quality
solidifying the development foundation with environmental responsibility demonstrated corporate
enhance the stability and resilience of the mining area development for resource-based enterprises in the new
commitment with social responsibility enhanced core competitiveness with governance efficiency
ecosystem and provide a replicable practical model for era!
committed to building a globally influential green mining benchmark and contributed to the building of a
community with a shared future for mankind.
07 08HBIS Resources Co. Ltd. About us
About us
The Company’s Main Products
Company overview
State-owned Assets Superv is ion and Administrat ion
H B I S R e s o u r c e s C o . L t d .Commission of Hebei Provincial People’s Government
established in 1950 was listed on
the Shenzhen Stock Exchange 100%
on July 14 1999 (stock code: 35.65% 100%
HBIS Group Co. Ltd. HBIS Resources Co. Ltd. Smart Union Resources (HONG
000923. SZ). It was registered in KONG) Co. Limited
Zhangjiakou City Hebei Province
100%
as a local state-owned holding
20%
listed company. The Company Smart Union Resources 80% Smart Union Resources
IDC
through its indirect holding of PMC (South Africa) Co. Limited (Mauritius) Co. Limited
via Smart Union Resources (Hong 100%
Kong) Co. Limited engages in the Copper Products Iron Ore Products Vermiculite Products
PMC
mining processing and sales of 10%Employee Trust
copper iron ore and vermiculite. 74%
It has formed an industrial layout 10%
Community Trust PC
where mining and processing Company Profile
are conducted in South Africa
Black Economic 6%
and products are sold to North Empowerment
America Europe Asia and other
regions which demonstrates
strong competitiveness in both Shareholding Structure of the Company
local and international markets.UK Shijiazhuang
Palabora Europe Limited (UK)
USA HBIS Resources Co. Ltd.Palabora America Limited (USA) The People’s Republic of China
Hong Kong
Smart Union Resources (HONG KONG) Co. Limited
Singapore
Palabora Asia Pre Limited (Singapore)
Mauritius
South Africa Smart Union Resources (Mauritius) Co.South African Palabora Copper Proprietary Limited
Limited
Industrial Layout of the Company
09 10HBIS Resources Co. Ltd. About us
Company culture Leadership team
To be the most competitive Wang Yaobin
enterprise in the industry People foremost law abiding work
Chairman
safety prevention first comprehensive
Creating value for users
management and continuous
creating opportunities for
improvement
employees and creating
wealth for society
Wang Fenglin Bao Yanli Wang Jing Zhao Qingsong
Company goal
Director General Manager Director Director Director Deputy General Manager
People foremost law and Secretary of Board of Director
Occupational
Company mission
health policy abiding work safety
energy conservation
Employees are and consumption
the irreplaceable reduction going green Zou Zhengqin Xiao Jinquan Hou Dongxi Wang Tingting
competitiveness of People-oriented and environmental Director Independent Director Independent Director Independent Director
philosophy Environmental
the enterprise protection and
policy
continuous
improvement
Wang Fenglin Zhao Qingsong Yu Chao
Marketing General Manager Deputy General Manager and Financial Principal
philosophy Quality policy Secretary of Board of Directors
Everything is to Science and technology
meet customer lead the future green
needs drives development
Core values Company style
Company spirit Company honors
User-oriented
Harmony passion
excellent quality
efficiency rigor
Entrepreneurship
excellence innovation
PMC was awarded the Level 2 Compliance Contribution Enterprise Certificate under South Africa Broad-Based Black
Economic Empowerment (B-BBEE) Act
Company strategy
PMC was honored as the 2025 Best Employers a total of 8 times receiving this honor
The Company's strategic goal is to grow and strengthen in the resource and achieve sustainable and sound development. In the future
the Company will focus on the global resource market continue to seek projects that align with its characteristics seize capital market
opportunities and achieve mergers and acquisitions to expand the scale of its industrial development and enhance its sustainable
profitability.
11 12HBIS Resources Co. Ltd. ESG management
ESG management
Honors
The Company is consistently committed to the business philosophy of compliance integrity openness and transparency and sustainability. It
continuously strives to reduce its environmental footprint promote inclusive growth and adhere to high standards of corporate governance.ESG management is integrated into the corporate development strategy and daily operations. The Company improves the ESG governance The 2024 Environmental Social and Governance (ESG) Report of HBIS Resources Co. Ltd. was awarded five-star rating by
system continuously enhances its capability in responsibility practices pays attention to and meets the expectations and demands of the China CSR Report Rating Expert Committee.stakeholders and promotes sustainable development of the enterprise environment and society.Awarded the "2025 ESG Whale and Bull Award for ESG Pioneer Enterprise".ESG governance mechanism Selected for the "China ESG Listed Companies Pioneer 100 (2025)" list ranking the 96th.The Company has established an ESG Committee which operates under the leadership of the Board of Directors and is accountable to the Selected for the "China ESG Listed Companies State-Owned Enterprises Pioneer 100 (2025)" list ranking the 15th.Board of Directors. The members of the Committee are elected by the Board of Directors and consist of three directors including at least
Selected for the "China ESG Listed Companies Pioneer 50 in Beijing - Tianjin - Hebei Region (2025)" list ranking the 35th.one independent director. All personnel responsible for ESG-related responsibilities possess the corresponding technical operational and
governance expertise to effectively ensure the implementation of the Company's ESG strategic objectives. A three-level ESG governance
The ESG case (Employee Rights and Development Practices at HBIS Resources: Building a People-oriented Sustainable
system comprising the "decision-making level organizational level and implementation level" has been established forming an ESG work
Workplace Ecology) was selected as one of the Best Practices for Sustainable Development of Listed Companies in 2025.system characterized by "strong coordination efficient collaboration and effective execution".ESG Architecture ESG issue assessment
Integrate ESG matters into the Company's management regulations and business decision-
In accordance with the latest international disclosure standards such as the European Sustainability Reporting Standards (ESRS) and IFRS
Board of Directors making process and approve the formulation of the Company's ESG strategy risk management
S1 General Requirements for Disclosure of Sustainability-related Financial Information as well as SZSE Self-regulatory Guidelines for Listed
information disclosure and goal implementation.Companies No. 17 - Sustainability Report (Trial) issued by the Shenzhen Stock Exchange the Company establishes a double materiality issue
Research and formulate the Company's ESG policies systems strategic plans and assessment framework identifies assesses and prioritizes sustainability-related impacts risks and opportunities. This report delivers a
implementation rules take appropriate measures to address ESG-related risks and focused response to the four identified financially material matters.opportunities that have a significant impact on the Company's business guide and supervise
ESG Committee
the implementation of the Company's ESG work supervise and inspect the actual performance Double materiality assessment process
and goal achievement review the Company's ESG-related reports and other significant ESG-
related matters and handle other matters authorized or assigned by the Board of Directors.Carry out the specific implementation of ESG work coordinate and promote the effective Step 1: Context analysis and issue Step 3: Double materiality
ESG Working Group implementation of ESG strategic objectives and policy frameworks and build a closed loop of identification assessment analysis
ESG management with wide coverage and smooth operation. Based on six categories of factors Assess the data based on step 2
20 potential material issues are form a 2025 ESG material issue
identified to form the issue pool. matrix and determine the material
The Company continuously improves its ESG system framework promotes the standardization institutionalization and systematization
issues and their priorities for this
of ESG management comprehensively standardizes the execution pathways for ESG work enhances the operability of ESG management
year.encourages subsidiaries to leverage the safety health environment and quality (SHEQ) management system to establish and improve the
management system covering ESG issues related to safety health environment and quality and strengthen the commitment to sustainable
Step 2: Step 4: Guide ESG disclosure and
development and ESG.practice with analysis results
2-1 Impact materiality assessment:Impact
ESG capability enhancement severity: stakeholder questionnaire survey; The Environmental Social and
possibility: assessment by internal and external
G o v e r n a n c e ( E S G ) C o m m i t t e e
ESG experts.The Company fully integrates ESG concept into the entire operation and management chain builds a model for high-quality development reviews and confirms the analysis
across multiple dimensions compiles and publishes environmental social and governance (ESG) reports for six consecutive years 2-2 Financial materiality assessment: Internal results and the Company is guided
systematically summarizes ESG responsibility practices and outcomes continuously improves the level of ESG information disclosure f inance department experts assess the by the analysis results to carry out
conducts ESG-themed training such as economic empowerment compliance training social and labor plan compliance training and financial materiality of each issue from two targeted disclosure and practical
employment equity compliance training actively participates in industry ESG exchange activities enhances employees' sustainable dimensions and multiple departments review improvement.development capabilities through seminars and knowledge sharing and continuously strengthens the Company's ESG management and confirm it.capabilities.
13 14HBIS Resources Co. Ltd. ESG management
Material issue pool Stakeholder communication
The Company adheres to the principles of "truthfulness comprehensiveness timeliness and sufficiency" in information disclosure to ensure
smooth communication with the government customers employees suppliers investors and the public interacts with internal and external
stakeholders through diversified means such as customer satisfaction surveys board meetings performance briefings and report releases
4. Ecosystem and biodiversity
1. Address climate change 2. Pollutant emissions 3. Waste disposal gains a deep understanding of their expectations and demands regarding the Company's environmental social and governance areas and
protection
establishes a responsible corporate image.
5. Environmental compliance
6. Energy utilization 7. Water resource utilization 8. Social contribution
management
Stakeholder Demands Answer
12. Equal treatment of
9. Innovation driven
10. Supply chain security 11. Industry cooperation small and medium-sized
development
enterprises Compliance management Compliance with laws and regulations
Support regional development Provide employment opportunities
13. Product and service 16. Employee training and
14. Information security 15. Human rights protection Tax payment according to laws Voluntary tax paymen
security and quality development Government
17. Occupational health and 18. Risk prevention and 20. Business ethics and Product and service innovation
19. Compliance operation Strengthen science technology and
work safety control transparency Protect customer rights and
management innovation
interests
Adhere to honest business
Improvement of customer
Customer Actively respond to customer needs
satisfaction
Build career development channels Improve internal management system
Comprehensive remuneration and Provide work and life assurance for employees
ESG material issue matrix welfare Strengthen the construction of occupational
Guarantee occupational health health and safety system
Employee Safeguard employees’ rights and Employee communication and feedback
interests mechanism
5.0
4.50104
02 Actively engage with the community Enhance community communication
4.0 06 Conduct volunteer activities Launch public welfare projects10 09 03 18 Community
3.50716
05 17 Improve the efficiency of resource and energy
3.0 13 Energy conservation and emissions utilization
08 reduction Practice green management
2.515
20 Biodiversity protection Advance green manufacturingEnvironment
11 Biodiversity protection and utilization2.0 19
14
1.5
12 Open and fair procurement Build a responsible supply chain
1.0 Mutual benefit and win-win Cooperation and exchange
Supplier
0.5
Improvement of company
0.0 Financial materiality governance Enhance internal control levels
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Compliance information disclosure Periodic information disclosure
Sustainable profitability of the Protect shareholders' equity
Investors
Company
1516
Impact materialityHBIS Resources Co. Ltd. 2025 annual responsibility performance
2025 annual responsibility performance
Operating revenue Total assets Total profits Copper production Magnetite production Vermiculite production
Operation CNY5.84billion CNY18.79billion CNY1.1billion 25.4Kt 11250 Kt 106Kt
performance
Total energy consumption Non-fossil energy (electricity) Water conservation Recycled water consumption Waste recycling volume Beneficiation recovery
Environmental 831542.3MWh 580759.9MWh -298 ML 45609ML 136t 90%
performance
Process technology improvement Customer Labor contract Coverage rate of work safety training Suppliers undergone ESG assessment Total amount of charitable donations
and research investment satisfaction coverage rate
Social CNY120million 100% 100% 92.8% 9Pcs. CNY22.6million
performance
Attendance rate at Attendance rate at meetings of Proportion of independent Proportion of female
shareholders' meetings Board of Directors directors directors
Governance 100% 100% 1/3 2/9
performance
17 18HBIS Resources Co. Ltd. Responsibility focus I
Magnetite
Ensuring supply of high-quality ore The magnetite from the PMC under the Company is an associated deposit separated during the processing of copper ore with low mining
cost and high iron content. By 2025 the PMC facility will hold approximately 110 million tons of magnetite ore with an iron content of about
55%. Prior to sale the ore undergoes pulping ball milling and magnetic separation processes which can increase its iron content to up to
Enhancing global industrial resilience 65%. The facility also produces approximately 1.5 million tons of magnetite products annually from newly mined raw ore underground.As of 2025
The magnetite pile at the PMC plant site is approximately The annual production capacity of newly extracted magnetite
products from underground raw ore is approximately
As a responsible practitioner in the field of global mineral resources HBIS Resources is committed to ensuring the stable supply of high-
quality ore deeply cultivates the core business of mining based on industrial advantages and global layout continuously optimizes the
supply capacity of three core product systems of copper iron ore and vermiculite provides high-quality mineral resources support for global 110million tons 1.5million tons
industrial development and fulfills its corporate social responsibility and sustainable development commitment through concrete actions.Consolidate the foundation for stable ore production
HBIS Resources grounded in mineral resource mining and processing adheres to the concept of lean green and efficient mining and
forms three product systems with copper products iron ore products and vermiculite products as the core with mature mining technology
and robust operation advantages so as to ensure the stable production capacity and practice its responsibilities for safe development
and ecological protection. In 2025 the Company continued to fully advance the production ramp-up of the Lift II project seize the market
opportunity presented by high copper prices accelerate the achievement of full production capacity steadily progress with the construction
of the magnetite quality improvement project promote the quality upgrade of high-grade magnetite products and achieve a comprehensive
increase in iron grade from 62% to 65%.
2025 PMC Three Major Product Output
Copper output Ten thousand t 2.5 Retrofitted Magnitite Mill Production of Superfines (DMS)
Iron ore output Ten thousand t 1125
Vermiculite
Vermiculite output Ten thousand t 10.6 The PMC under the Company is a major global producer of high-end vermiculite products with an annual production capacity of about 170000 t.The natural vermiculite produced by the Company includes golden/brown flakes and the main products are sold to Asia North America and
Europe through its globally distributed sales subsidiaries.Copper
The PMC under the Company is the largest
producer of full-process refined copper in South
Africa. The process covers all processes from ore
mining crushing grinding flotation smelting
electrolysis to rolling. After the completion of Lift
II the underground ore mining capacity can reach
11 million tons. The Company’s copper products
includecopper rod electrolytic copper and copper
concentrate powder with the majority sold locally
in South Africa. In recent years the main product
is copper concentrate containing about 30% Finished Product of Vermiculite Packaged Vermiculite
Copper rod
copper.
1920
Responsibility focus IHBIS Resources Co. Ltd. Responsibility focus I
Forge overseas resource advantages Case PMC railway upgrade and renovation project achieves operational optimization with customized solutions
HBIS Resources adheres to the "Going Global" strategy continuously promotes the construction of key overseas projects focuses on its
Since 2021 The Company has initiated a railway upgrade and
core mining business drives the increase of mineral resource reserves and delivers lasting value and sustainable development for local
renovation project and implemented a 4km extension project
communities stakeholders and PMC.through optimized design to achieve a capacity of loading and
unloading 80 freight cars in one trip and reach a maximum of
Case Completion ceremony held for the CMC project
5 train trips per day and ensure the transportation of collected
magnetite and vermiculite to the port without any damage
In March 2025 after five months of planning and unremitting efforts the company magnetite grinding operation team successfully throughout the entire process. This project achieved the safety
completed the refurbishment of No. 4 mill facility and restored it to full operation. The facilities in this area have been out of service goal of "Zero Harm" within 100000 hours and successfully
for over a decade with significant challenges in procuring key components and complex engineering work. Relying on professional met the needs of enterprises and customers with customized
expertise modern technology and collaborative efforts the team has successfully completed the renovation safely marking a solutions thereby promoting the sustainable development of
crucial step towards achieving the goal of an annual output of 6 million tons of 65% magnetite (Fe) . Palabora community.Railway Upgrade and Renovation Project Completed
Magnetite Team
Produced 65%
Iron Ore for Port
Shipment in 2025
Site of the Completed Renovation Project
Case PMC launches the construction of the largest mining return air fan station in the Southern Hemisphere
In June 2025 the first fan of the company's largest mining return air fan station project in the Southern Hemisphere was fully
completed. This project was built to meet the essential ventilation needs for underground mining in Shafts No. 1 and No. 2 so as not
only to ensure the respiratory safety of underground workers reduce hazards from dust and harmful gases and achieve efficient
energy utilization through technological upgrades but also create opportunities for local employment and skill development and
demonstrate the concept of win-win cooperation and sustainable development of enterprises.Block 1 of the Lift
II Underground
Project
Completed and
Handed Over for
Use.Construction Team for Mining Return Air Fan Station Project
21 22HBIS Resources Co. Ltd. Responsibility focus II
Fostering cultural integration
Jointly building the "Belt and Road" HBIS Resources adheres to a strategy of preserving cultural traditions integrates cultural considerations into the framework of business
operations deepens the participation of diverse communities increases investment in educational projects promotes the protection of local
Reaping fruits of China-Africa cooperation heritage and enhances the cultural identity between China and Africa.Cultural Investment in
Cultural Heritage
integration and culture and
Conservation
exchange education
As an active practitioner of the "Belt and Road" Initiative HBIS Resources has consistently adhered to the principle of extensive consultation
Cherish the multicultural value of Africa Actively participate in the Mopani Update and revise the List of Cultural Heritage and
joint contribution and shared benefits deepened its presence in the African market to promote the deep integration of China-Africa economic
form a unique business card for cultural TVET College Open Day and the 2025 Management Plan in accordance with the relevant
cooperation and sustainable development and made continuous efforts in areas such as infrastructure construction collaboration on
communication through internal cultural MTE Expo organize interactive skills provisions of the National Heritage Resources Act
major engineering projects youth skills training and cultural heritage protection which not only helps enhance the quality and efficiency
periodicals and take the cultural activities of demonstrat ions by outstanding of South Africa to ensure the protection and respect
of the local economy but also builds bridges of people-to-people connectivity through concrete actions writing a new chapter of win-win
employees such as "Africa Day" and "Heritage apprentices and current trainees to of cultural heritage resources in the region by
cooperation between China and Africa.Day" as the carrier to break cultural barriers vividly present vocational training mining and development projects and dynamically
promote cultural exchanges between China achievements and industry practice adjust the protection strategy through measures
Paving a smooth path for economic development and Africa and fosters a harmonious and paths and contribute to the youth such as archaeological site registration historical
congenial atmosphere. development and skills enhancement. and cultural value assessment site protection and
The Company has invested substantial resources in decades-long continuous investment in local communities focused on areas such as supervision.transportation education and health participated in the construction of basic public infrastructure from clinics to roads created viable local
business and supplier networks to stimulate economic development developed local human capital through youth education and workforce
skills enhancement promoted the sustainability of local community development and further driven local economic development.Build 24-hour open health centers and clinics renovate and rebuild school administration buildings
kitchen facilities for meal programs and others carry out road maintenance and construction
projects and restore critical traffic corridors to benefit local communities and logistics
Infrastructure transportation.construction
Implement large-scale strategic investments aligned with the development plan of the local
municipal government support the development of SMEs in local agriculture tourism construction
and engineering sectors incorporate local suppliers into the mining supply chain system execute
Empowering The Company Participated in Mopani TVET College Open Dayextensive scholarship programs and skills transfer partnerships and build a resilient local economy.economic growth
The Company Held a Cultural Heritage Meeting with Ba-
Maseke Community for Long-term Negotiations on
The Company Collaborated with Limpopo Provincial Roads The Company Provided Collaborative Support to 26 Local
Construction Permit for Granite Site Marker at the Late Iron
Agency on Road Construction Enterprises The Company Hosted Africa Celebration Day
Age Site of Fetwane (Located within PMC's Copper Mine Area)
2324
Responsibility focus IIHBIS Resources Co. Ltd. Deepen overseas ventures and build a solid foundation for stable operation
Deepen overseas
ventures and build a solid
foundation for stable
operation
HBIS Resources continuously improves its corporate governance mechanisms to solidify the
foundation for long-term development adheres to the bottom line of integrity and compliant
operations to conduct business with high ethical standards focuses on supplying high-quality
ore to build a premium product and service system strictly upholds work safety as a red line
integrates safety management into the entire mining operation process and comprehensively
fulfills corporate responsibility to achieve win-win value for all stakeholders.Standardized operation to improve 27
management efficiency
Abiding the law being compliant and 30
preventing operational risks
Excellent quality to win customer trust 35
U p h o l d i n g t h e b o t t o m l i n e a n d 37
fortifying the security barrier
SDGs
25 26HBIS Resources Co. Ltd. Deepen overseas ventures and build a solid foundation for stable operation
Standardized operation to improve management Special committees In accordance with relevant regulations the Company has established 6 special committees: the Strategic Development Committee the Audit Committee the Remuneration and
efficiency Assessment Committee the Nomination Committee the Risk Management Committee and the
Environmental Social and Governance (ESG) Committee. Each special committee is composed
HBIS Resources strictly follows the requirements of the Company Law of the People’s Republic of China Securities Law of the People’s of 3 directors and respective rules of procedure are formulated to fully leverage the functions of
Republic of China Code of Corporate Governance for Listed Companies Rules Governing the Listing of Shares on Shenzhen Stock Exchange each special committee.and other laws regulations and normative documents. The Company clarifies the boundaries of rights and responsibilities for each entity
continuously advances the scientific and standardized development of its corporate governance system establishes an efficient investor
relationship management mechanism utilizes information disclosure as a bridge to build trust with the broad base of investors and
safeguards the legitimate rights and interests of investors.Functions of Special Committees
Strengthening In accordance with the latest laws regulations and regulatory requirements for listed companies
the Company has refined its corporate governance structure involving the coordinated operation
corporate of the shareholders' meeting the Board of Directors and the management revised the Articles of
Association abolished the Board of Supervisors and transferred the functions and powers of the
governance Strategic Development Research and provide recommendations on the Company's long-term development strategies Board of Supervisors to the Audit Committee of the Board of Directors thus steadily enhancing
Committee and major investment decisions and submit them to the Board of Directors for review.the level of corporate governance.Shareholders’ meetings The Company implements the Rules of Procedure for Board of Shareholders ensuring that
the convening holding and voting procedures comply with the Company Law of the People’s Communicate supervise and verify in terms of internal and external audits and submit them to Audit Committee
Republic of China Rules Governing the Listing of Shares on Shenzhen Stock Exchange Rules for the Board of Directors for review.the Shareholders’ Meeting of Listed Companies and other relevant laws regulations normative
documents and the Company's Articles of Association. The Company adopts a combination
of on-site and online voting to provide convenience for investors to participate in the voting of
shareholders' meeting. In 2025 the Company held 3 meetings of the Board of Shareholders. Formulate assessment criteria for the Company’s directors and managers and conduct Remuneration and
assessments; formulate and review remuneration policies and plans for the Company’s directors
Assessment Committee
and managers and submit them to the Board of Directors for review.Board of Directors The Company's Board of Directors consists of 9 directors including 3 independent directors and
2 female directors. The nomination and appointment of board members consider factors such as
gender age cultural and educational background professional experience and skills and fully
represent the demands of different stakeholders in the deliberation and decision-making process Select the company’s directors the General Manager and other senior management personnel Nomination Committee
of the proposal by relying on diverse professional backgrounds such as enterprise management and submit them to the Board of Directors for review.finance engineering and law ensuring the professionalism and effectiveness of decision-making.Board members also actively participate in ESG training to better understand relevant regulatory
requirements. In 2025 the Company held 6 board meetings passed 33 proposals and revised Supervise and guide the Company's risk management research risk issues related to the
or newly established 16 systems including the Articles of Association and the Market Value Risk Management Company's major investment matters and provide opinions and recommendations on the
Management System. Committee Company's risk management policies and plans and submit them to the Board of Directors for
review.In 2025
Environmental Social Supervise and guide the effectiveness of the Company's environmental protection
The Company heldboard meetings passed proposals revised or newly established systems and Governance (ESG) social responsibility and governance standardization efforts and provide opinions and
Committee recommendations and submit them to the Board of Directors for review.
6items 33items 16items
27 28HBIS Resources Co. Ltd. Deepen overseas ventures and build a solid foundation for stable operation
Protection of rights The Company deeply practices the concept of investor first strictly adheres to relevant laws
and regulations such as the Code of Corporate Governance for Listed Companies and Rules Abiding the law being compliant and preventing
and interests of Governing the Listing of Shares on Shenzhen Stock Exchange promptly discloses the Company's operational risks
operating status and business progress to investors and insists on safeguarding the legitimate
investors rights and interests of shareholders and investors. HBIS Resources continuously improves its compliance management and risk prevention and control systems fosters a corporate culture
of integrity strictly resists any corruption bribery fraud and unfair competition that could adversely affect the Company and builds a
Transparentize The Company timely accurately and comprehensively discloses important matters through sustainable business ecosystem.information channels such as China Securities Journal Securities Times Shanghai Securities News Securities
Daily and the CNINFO website establishes an ESG report disclosure framework aligned with Governance The Company strictly follows laws and regulations such as the Audit Law of the People’s Republic disclosure sustainability standards clarifies the requirements and standards for data collection and of China Rules Governing the Listing of Shares on Shenzhen Stock ExchangeSelf-Regulatory
continuously improves the standardization of information disclosure. In 2025 the Company Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange — Standardized Operation
disclosed 83 announcements including 4 periodic reports and 79 other documents; there were no of Main Board Listed Companies the Company has established an Audit Committee and a Risk
penalties due to violations in information disclosure. Management Committee under the Board of Directors to build a multi-level and comprehensive
risk prevention and control management system.In 2025 Board of Directors
The Company disclosed announcements Including periodic reports Other documents
Audit Committee Risk Management Committee
83copies 4copies 79copies
Related Functional Departments
Strengthen investor The Company strictly adheres to the requirements of the Investor Relations Management Risk Management Architecture
communication System closely monitors the expectations and requirements of investors and shareholders
for the Company and maintains extensive communication with institutional investors and Strategies The Company establishes a risk management framework to regularly identify monitor and report
individual investors through multiple levels channels and forms such as investor hotlines relevant risks with results submitted quarterly to the management the Audit Committee and
emails interactive meetings interviews research visits telephone conference and performance the Risk Management Committee.briefings. While effectively conveying the Company's value the Company timely collects
investors' opinions and suggestions enhances investors' understanding and recognition of the Reporting
Company establishes a good image of the company in the capital market and boosts investors' Risks Risk description Measuresperiod
confidence. In 2025 the Company received over 410 investor calls. Dynamic update mechanism: Review domestic and international regulations
Lax internal system
System audit quarterly and revise internal system timely;
audits may increase Short term
risk Risk management concept promotion: Organize training on risk management
compliance risks.systems that covers management and key positions.Non-standard contract
Contract Full-process informatization: Conduct information-based contract
management may lead
management Short term management and ensure legality compliance and procedural review;
to clause omissions or
risk Multiple review: Conduct multiple reviews for contracts with large amounts.legal loopholes.Improper handling of Early warning mechanism: Monitor policy changes in the region in real-time
Legal dispute legal disputes may and assess legal risks;
Medium term
risk lead to reputational or Team building: Hire specialized legal professionals to be responsible for the
economic losses. company’s legal affairs compliance management and other related tasks.Multi-dimensional evaluation: Conduct multi-dimensional argumentation
on major decision-making matters including compliance economic and
Major decisions technical aspects to ensure sufficient decision-making basis;
without sufficient External expert support: Leverage third-party or industry experts to provide
Major decision-
argumentation or risk Long term independent assessments for major decisions making decisions more
making risk
review may lead to scientific;
strategic mistakes. Tracking and optimization: Regularly review major decision-making matters
and dynamically adjust strategies based on changes in internal and external
The Company participated the “National Investor Protection Promotion Day” Activity environments.
29 30HBIS Resources Co. Ltd. Deepen overseas ventures and build a solid foundation for stable operation
Impact risk and opportunity management
The Code on Corporate Governance of King IV is a voluntary code issued by the Institute of Directors in South Africa (IOD Tip
SA) applicable to all types of organizations in South Africa aiming to promote the overall development of organizations
Compliance management The Company continuously improves its legal and compliance construction system conducts through transparency ethical governance and sustainability.comprehensive compliance reviews from 4 stages: compliance risk identification compliance
risk assessment compliance risk management and compliance risk monitoring firmly adheres The COSO framework is a widely recognized internal control framework consisting of 5 interrelated components: control
to the bottom line of compliance management strengthens the promotion of compliance and environment risk assessment control activities information and communication and monitoring activities. It provides a
legal culture comprehensively advances the building of a law-based enterprise and consistently structured approach to managing and improving internal control governance and risk management processes.enhances the quality and effectiveness of compliance management. In 2025 the Company
conducted 5141 compliance training sessions covering 95.2% of its total employees.In 2025
The Company conducted compliance covering of its total employees 3 Levels
training sessionss
The highest decision-making body for risk management is responsible to the meeting of the Board of
5141games 95.2 Board of Directors% Shareholders for the effectiveness of risk management.
It is responsible to the Board of Directors for the effectiveness of risk management. The Compliance
Senior management
Management Department is responsible for the daily work of risk management.Determine applicable legal and regulatory requirements
Compliance risk identification Each business department is the frontline department for risk management. The Internal Audit
Form a regulatory scope register Department audits evaluates reports and tracks the rectification of the Company's major risk events and
Functional departments
the integrity and effectiveness of the Company's risk management system and is directly responsible to
the Board of Directors.Identify compliance risks Assess the impact
Compliance risk assessment 3 Lines of Defense
Assess the feasibility Rate inherent risks
1st line of defense Business departments conduct risk self-control.
Strengthen risk control Assess the effectiveness of control measure
Manage compliance risks
Rate residual risks 2nd line of defense The Compliance Management Department provides operational risk alerts in key business processes.
3rd line of defense The Internal Audit Department conducts in-process and post-event supervision and inspection.
Identify compliance weaknesses
Compliance risk monitoring
Conduct dynamic monitoring
The Company's Enterprise Risk Management Process
Risk control The Company adheres to the Sensitive Information Screening System Rules of Procedure for
Risk Committee of Board of Directors Comprehensive Risk Management Measures Compliance
Risk Management Measures and other systems to strengthen early warning of major risk hazards Approval of Identifying and
and enhance risk prevention and emergency response capabilities; follows the latest Global the strategy assessing risk
Internal Audit Standards and prepares an internal audit plan based on the consideration of key
strategic risks of PMC and the discussion with management focusing on high-risk areas in
operations to enhance the fairness and objectivity of internal audits; regularly organizes quarterly
risk assessment seminars where risk owners jointly participate in the risk level assessment Risk management
and develop response measures submits risk assessment reports to the Board Audit and Risk policies/frameworks
Continuous process
Committee (BARC) and dynamically tracks and monitors risk changes.Monitoring reports Challenges and
Based on the ISO 31000 risk management standard and the requirements of the Code on assessment
Corporate Governance of King IV a closed-loop mechanism for risk identification assessment controls
response monitoring and reporting using the 5 elements of the COSO framework was formed
effectively controlling enterprise risks. High risks (Class III-IV) require urgent handling while low
risks (Class I) only need passive management.Risk response and action
31 32HBIS Resources Co. Ltd. Deepen overseas ventures and build a solid foundation for stable operation
Business ethics The Company conducts its business in accordance with all applicable laws and regulations and
the highest standards of business ethics strictly resists any corrupt acts that adversely affect
the integrity and reputation of the Company and formulates such systems as Anti-Fraud Policy PMC’s Posters for Encouraging Reporting Fraud
and Code of Conduct to prevent any employee or contractor from committing fraud corruption
serious misconduct and dishonesty directly or indirectly so as to reduce the fraud risk of the
Company; sets up a 24-hour hotline to encourage employees and stakeholders to report fraud
and keep the information of whistleblowers strictly confidential. The internal audit department
conducts irregular inspections to identify potential fraud risks. In the event of fraud the Company
will initiate an investigation and take disciplinary actions legal proceedings or loss recovery
measures based on the investigation results. In 2025 the Company did not experience any
commercial corruption or unfair competition incidents.Code of Conduct
All employees perform their duties as per the Company’s system adhere to professional ethics and the management sets
an example. The Company strictly prohibits abuse of power for personal gain and prevents conflicts of interest.Strictly comply with the Anti-unfair Competition Law of the People’s Republic of China Anti-monopoly Law of the People’s
Republic of China and other local relevant laws and regulations of South Africa to promote fair competition and maintain
market economic order.Implement the Insider Registration System to standardize the management of insiders.Follow the Management System for Related Party Transactions Measures for Management of Internal Control of Related Indicators and goals In 2025 the Company did not experience any major risk events in production operations sales
Party Transactions and other regulations to standardize the internal management of the Company's related party safety and environmental protection investments and other risk areas.transactions ensuring that all related party transactions comply with the principles of fairness openness and justice and
In 2026 the Company plans to continue to strengthen risk governance capabilities improve
do not harm the interests of shareholders and creditors.the emergency plan system achieve full-process management and control in production and
operation and build a solid risk defense line for high-quality development.Fraud Prevention Strategies Indicators of anti-commercial bribery and anti-corruption training Unit 2025
Total number of directors participating in anti-commercial bribery and anti-corruption
Person 9
training
Institutional Implement supplier due diligence employee background checks mandatory leave policies and interest declaration
Percentage of directors participating in anti-commercial bribery and anti-corruption training % 100
control systems to reduce fraud at the institutional level.Total number of management personnel participating in anti-commercial bribery and anti-
Person 65
corruption training
Percentage of management personnel participating in anti-commercial bribery and anti-
Conduct annual fraud risk assessments categorize risks into 4 levels based on likelihood and impact and develop % 49.2
Risk assessment corruption training
corresponding control measures.Total number of employees participating in anti-commercial bribery and anti-corruption
Person 1393
training
Publicity and Promote a culture of integrity through employee ethics training new employee orientation and regular anti-fraud Percentage of employees participating in anti-commercial bribery and anti-corruption % 35.9
training awareness campaigns. training
33 34HBIS Resources Co. Ltd. Deepen overseas ventures and build a solid foundation for stable operation
The Process for Handling Customer Complaints
Excellent quality to win customer trust
Hold meetings to determine the
responsible department when Send weekly reminders to
HBIS Resources continuously enhances quality management through customer communication mechanisms ensuring product quality and
handling cross-departmental relevant parties during customer
service compliance while leveraging information security policies and customer satisfaction monitoring to achieve high-standard delivery
customer complaints; complaint handling;
and high-quality services and win the long-term trust of customers with reliable strength.Actively handle quality Sales and administrative
Product quality By fully leveraging its competitive advantages in
disputes to prevent specialists promptly contact
the South African copper wire market the cost them from escalating relevant personnel upon receiving
management advantages of by-product magnetite and the into customer customer complaints to ensure
abundant vermiculite resources the Company complaints; timely resolution;
strengthens quality management throughout the
mining and processing processes. For quality and
environmental risks identified in product production
and sales targeted measures are taken to prevent
and mitigate them. Non-conforming products are
treated in accordance with the Non-conformance
and Action Management Standard to minimize
losses and stable and high-quality mineral products Based on the nature of the customer complaint Initial feedback is expected Record customer complaints in the
are continuously provided to customers. In 2025 incident and the formal investigation results if within 7 working days for the “Pivot” system for archiving and
the factory pass rate of the company's products the Company is found to be in breach of contract survey of the business area; analyze the complaint information;
was 100%. The company has passed the ISO quality follow-up measures shall be taken to prevent
management system certification and had no similar complaints from recurring.liability accidents related to products and services. PMC has obtained the Quality Management
System Certification Certificate
The Company adheres to the requirements of the Personal Information Protection Policy and
Protect The Company has formulated the Customer Requirements Standard which specifies detailed Protection of Information Sharing Policy improving a data security management system that complies
methods for handling customer needs based on the ISO 9001 standard; it adheres to the relevant
customer rights information with industry standards and it implements identity authentication and authorization least-requirements of the Marketing and Sales Policy to provide comprehensive after-sales service
privilege access control network segmentation and isolation endpoint monitoring and sensitive
support for all launched products; it has improved its customer communication mechanisms
and interests security data encryption across the Company's management systems; it conducts annual penetration enhancing communication through various channels such as customer surveys regular visits
tests regularly to promptly identify potential vulnerabilities and verify system security; it
and customer satisfaction monitoring; it has also implemented a regular customer relationship
clarifies its obligations as the "responsible party" designates an information officer (IO) to
maintenance mechanism to deepen long-term collaboration with high-quality customers
oversee compliance and requires IO review for cross-border data transfers; it conducts regular
fostering stable business partnerships and building a strong corporate reputation. In 2025 the
information security training to enhance employees' awareness of information protection and
customer satisfaction rate was 100%.fortify information privacy security. In 2025 the Company experienced no major data security
incidents with no unauthorized access or data loss identified and all systems remained secure.The Company has established and operates a comprehensive customer privacy protection
system strictly complies with relevant privacy regulations in data collection storage and
processing and implements user authorization management data minimization practices
secure storage solutions and regular audits; it has established a customer privacy protection
monitoring and incident response mechanism based on the zero-trust principle to quickly
identify and address various potential privacy risks; In 2025 the Company consistently upheld its
commitment to protecting customer information with no incidents of customer privacy leakage
occurred.In 2025
The Company consistently upheld its commitment to protecting customer information with no incidents of
customer privacy leakage occurred.PMC VIP(Value Improvement Practice) Team Recognized for Outstanding Service
35 36HBIS Resources Co. Ltd. Deepen overseas ventures and build a solid foundation for stable operation
Upholding the bottom line and fortifying the security Cultivation of The Company upholds "Zero Harm" as its core operational goal actively conducts specialized hazard training covering safety awareness education risk assessment process training and
barrier safety culture the use of specialized personal protective equipment in confined spaces and underground
operations enhances employees' safety awareness and skills stimulates employee engagement
HBIS Resources consistently emphasizes that safety is the "highest priority" clearly defines the "Zero Harm" goal for work safety establishes through diversified actions such as team competitions and cultural promotion and integrates
and improves the occupational health and safety system strengthens work safety management comprehensively prevents occupational safety culture into the daily life and work of employees thereby creating a safe and healthy
health and safety risks and fosters a safe healthy and inclusive work environment. working environment for all employees contractors and suppliers.In 2025 the Company conducted safety training for 53318 hours with a work safety training
Work safety The Company has established an integrated safety health environment and quality management
coverage rate of 92.8% invested CNY 5.54 million in work injury insurance and work safety
system (SHEQ MS) in line with international standards clearly delineates SHEQ responsibilities and liability insurance with a coverage rate of 100% for work injury insurance and work safety liability
management authorities across all levels and positions within the enterprise and emphasizes the safety and health insurance personnel.of every employee and contractor through robust management systems; the Company employs a
hazard identification and risk framework which utilizes a four-tiered risk assessment approach
allowing for the selection of appropriate assessment levels based on the context nature and scale In 2025
of risks. Through a unified methodology it identifies SHEQ hazards aspects and opportunities while
evaluating and managing risks posed to personnel property assets reputation and environment so as Conducted safety Safety training Invested in work injury insurance Personnel coverage rate for work injury
to achieve the goal of "Zero Damage" and "Zero Harm" through effort. training for coverage rate of and work safety liability insurance insurance and work safety liability insurance
Safety emergency Adhering to the principle of safety first the Company has established a dedicated mine accident emergency (contingency) team and a medical team formulated the Palabora Emergency Management 53318hours 92.8% CNY 5.54 million 100%
management Plan which details the resources and strategies required to ensure an effective and coordinated
response to identified risk scenarios and integrated and coordinated risks listed in the company to
ensure all potential hazards are adequately addressed; the Company has established the Emergency
Response Training Procedures to provide guidance for emergency preparedness and response activities
conducts regular emergency drills tailored to the risk characteristics of various business sectors
continuously enhances the training effectiveness and risk awareness and organize at least one sudden
emergency drill every year to test the response readiness and handling efficiency of emergency service
departments and comprehensively assess the overall emergency response capabilities; the Company
has established a standardized mechanism for reporting emergencies to the business emergency
management team ensuring timely decision-making and activation of business continuity and disaster
recovery plans and that the information gathered from investigations helps the company identify the
root causes of incidents thereby enabling the development of corrective and preventive measures
to reduce the likelihood of similar events recurring; during major incidents the Company engages in
cross-industry collaboration with neighboring mines through emergency response teams and serves as
a member organization of the South African Mine Rescue Body.Standardized incident investigation process of PMC PMC Holds "Zero Harm Cup" Quarterfinal Draw Ceremony PMC Leadership and Employees Conduct Safety Theme Day Activity
with "Safety First" as the Theme
All SHEQ risks applicable to the operation have been identified assessed and
documented.The risk control measures are implemented following the risk control hierarchy
system to keep all risks at a level as low as reasonably practicable (ALARP).All employees shall understand the SHEQ risks in their work areas or teams as well
as the measures taken to manage these risks.Inspect and maintain risk control measures to ensure the level of protection
provided.Conduct regular reviews of risk assessments to ensure relevance to the nature and
scale of operations. The Company Logistics Operations Team and Management Gather to Lift II Project Mining and Construction Team Maintains Zero Lost-
All employees and leaders must complete HIRA Level 1 training with operational Launch the "Cross the Bridge" Safety Campaign Time Injury (LTI) Record
personnel required to renew HIRA training annually. The Company has obtained ISO 45001
certification for its Occupational Health
and Safety Management System.
37 38HBIS Resources Co. Ltd. Deepen overseas ventures and build a solid foundation for stable operation
Employee health management
The Company prioritizes employee health and safety strictly adheres to the Company Employee Code of Conduct and safety health
environment and quality (SHEQ) policies and improves the occupational health management system; it actively organizes employee health
check-ups to ensure all employees undergo medical examinations and are certified fit for their duties preventing occupational health
hazards proactively; it actively conducts occupational health education and promotion and organizes safety culture surveys to strengthen
employee safety values and personal health awareness; it pays attention to the mental health of both male and female employees
alleviating psychological stress through activities like health walks; it has established a clinic at the Palabora mining area to provide medical
examinations and treatment for accidental injuries and conducts HIV status testing and Employee Assistance Program (EAP) for employees
as required aimed at fostering a healthier and more supportive workplace environment.The Company Employees Sign Safety Commitment The Company Employees Participate in "Safety Pause" Activity
Tip
LTI refers to non-fatal injuries where employees are unable to work or lose work capacity due to work-related injuries
which is a basic indicator of company safety performance.World AIDS Day Activity Breast Cancer Awareness Week Activity
39 39 40 40HBIS Resources Co. Ltd. Practice ecological excellence and create a green resource landscape
Practice ecological
excellence and create a
green resource landscape
Environmental protection is the cornerstone for the sustainable development of HBIS
Resources. Adhering to the core philosophy of "Green Mining Ecological Win-Win" we integrate
environmental conservation into strategic decision-making and daily operations. We drive
low-carbon transformation through technological innovation strictly control pollution
emissions through systematic governance and reshape the landscape of mining areas through
ecological restoration committed to achieving harmonious coexistence between economic
development and nature.Low-carbon development addressing climate change 43
Environmental management to strictly control pollution emissions 44
Clean production to reduce resource consumption 48
Ecological restoration to reshape the mining area landscape 51
SDGs
41 42HBIS Resources Co. Ltd. Practice ecological excellence and create a green resource landscape
Low-carbon development addressing climate Environmental management to strictly control
change pollution emissions
The Company adheres to the concept of green development strictly complies with the environmental laws and regulations of its operating
Governance Addressing climate change is a common challenge for global enterprises and a persistent locations and continuously promotes the improvement of environmental performance by establishing and improving the environmental
responsibility for the Company. We have incorporated climate change response into our management system strengthening risk prevention and control and deepening pollution control. It strictly follows regulatory laws
corporate strategy continuously improved our governance structure integrated climate factors regulations and technical standards and conducts independent monitoring and separate disclosure of various pollutants.into business decisions and taken practical actions to reduce greenhouse gas emissions striving
to achieve a win-win situation for the economy and the environment.Strategies By establishing a climate risk assessment mechanism we systematically identify and evaluate Standardize The Company's energy consumption and pollution emissions mainly originate from PMC. PMC's
the potential impacts of physical risks policy risks and technological risks on our operations and environmental management plan (EMP) has been approved by South Africa's Department of
finances. We analyze the adaptability of our strategies and business models to climate change environmental Mineral Resources and Energy (DMRE) and is effectively implemented through the safety
in the short medium and long term and continuously advance smelter renovation projects to health environment and quality (SHEQ) management system ensuring all environmental
reduce fuel consumption through process optimization addressing climate challenges with management requirements are met. We legally hold the atmospheric emission license water use license and
practical actions. waste management license (WML) and submit annual compliance reports to the competent
authorities. In 2025 a third-party agency conducted a performance evaluation of the Company's
Risk type Risk description Reporting period Measures environmental management plan with no environmental violations or illegal incidents occurring.Establish an extreme weather warning system;
Extreme weather events lead to mine shutdowns Short-term / Strengthen the drainage system and equipment
Physical risks
equipment damage or logistics disruptions. medium-term protection in the mining area; PMC's safety health environment and quality (SHEQ) Policy
Develop emergency production plans. Our commitment:
Track policy changes and dynamically adjust
Stricter carbon emission policies in South Africa/ Short-term /
Policy risks environmental governance strategies;
China increase operating costs. medium-term We will provide a safe healthy and environmentally
Optimize the energy structure.responsible workplace for our employees contractors
The lag in energy transition technology iteration Plan research and development(R&D) of renewable Our goal:
Medium-term / energy technologies; and visitors and minimize our impact on the neighboring Technical risks (such as smart grid and energy storage
long-term
technologies) leads to a decline in competitiveness. communities and surroundings.Pilot digital energy management system.We will uphold our standards and continually improve
Develop cross-border carbon footprint accounting We will continually improve our operations to comply with
Compliance requirements of international climate our performance to achieve our goal of zero harm to our
Medium-term / standards;
Compliance risk agreements (such as the Paris Agreement) lead to employees and surrounding communities.all relevant legal and other requirements.long-term
obstacles to cross-border business. Participate in global supply chain decarbonization
programs. We will strive to create and maintain a work environment Use our resources responsibly and efficiently in particular
energy water and land.Insufficient disclosure of GHG emissions data raises Short-term / where every employee returns to his or her family at the
Reputation risks Establish ESG investor communication mechanisms.investor doubts. medium-term end of the shift unharmed. Manage our mineral and non-mineral wastes responsibly
Sign long-term agreements with green energy to ensure the lowest possible impact to the environment
Inadequate carbon reduction by upstream energy suppliers;
Short-term / and health of employees and communities.Supply chain risk providers (such as power companies) leads to Require suppliers to provide carbon management
medium-term
excessive indirect emissions. certificates;
Develop distributed energy systems.Impact risk and As the Company finds that most of the GHG emissions come indirectly from purchased electricity Our responsibility:
opportunity management while the rest come directly from the consumption of fossil fuels such as coal and diesel in an
in-depth study of the sources of GHG emissions it decides to make electricity use a key control
area to reduce GHG emissions. We strictly adhere to the accounting methodology stipulated Each employee has a responsibility to prevent harm
by South Africa's Department of Forestry Fisheries and the Environment (DFFE) to accurately to himself fellow employees damage to assets and
measure greenhouse gas emissions which are subject to independent third-party verification. detrimental impacts to our environment and intervene
when others are not.Indicators and goals In 2025 Scope 1 GHG emissions were 78248.6 tons of CO2 equivalent and Scope 2 GHG emissions No task will be undertaken without a clear understanding
were 572048.5 tons of CO2 equivalent.Going forward the Company will continuously monitor of the best method to mitigate the risk of injury
the progress against its climate targets and steadily advance its carbon emission reduction occupational health damage to assets and environmental
plan through initiatives including energy-saving equipment retrofitting and production process harm.optimization. The Company Obtains ISO 14001 Environmental
Management System Certificate
43 44HBIS Resources Co. Ltd. Practice ecological excellence and create a green resource landscape
Strictly control The Company identifies major environmental risks through its risk assurance process system and Standardize pollutant control
formulates corresponding prevention and control measures. To effectively respond to sudden
environmental environmental incidents the Company has established a professional team covering resources
training and alerts for comprehensive enhancement of emergency response capabilities; Waste water management
risks simultaneously it has developed emergency plans that clearly define the scope of coverage The Company successfully obtains multiple water utilization permits under the
types of incidents and emergency procedures to ensure orderly emergency response. For hazardous provisions of South Africa's National Water Law and regularly undergoes audits
chemicals used and stored during production the Company has developed detailed material safety by external agencies. During the production process the Company implements
data sheets (MSDS) specifying operational requirements for leakage handling emergency response classified collection and treatment of wastewater generated from mining and
etc. to ensure a rapid and standardized response when such sudden environmental incidents occur. mineral processing. By constructing a closed-loop water circulation system the
Company strictly controls all water usage and realizes recycling and reuse within
the factory effectively reducing the consumption of raw water and minimizing the
The Company emphasizes the development of an environmental protection culture. Relying on evaporation from the tailings return water dam. The Company also comprehensively Strengthen
the requirements of the environmental management system it continuously conducts employee monitors the seepage of tailings storage facilities and the water quality of
environmental environmental awareness training and environmental public welfare activities constantly groundwater and natural rivers and establishes over 45 observation points; in
improving the environmental responsibility awareness and emergency response capabilities of addition it drills over 140 boreholes as observation points to monitor groundwater
protection all employees. For contractors and other partners we always communicate the environmental conditions builds a groundwater model and monitoring system assesses the Water Quality Observation Points of the Company
education and policy implementation standards in a clear and explicit manner to ensure that partners fully impact of waste water discharge through monitoring data and adjusts the water
understand their environmental obligations and extend the environmental management management system in time. Additionally the Company submits annual water usage
advocacy requirements to the whole business process of the company. reports to relevant government departments continuously standardizing water
resource management.Waste gas management
The Company obtains the Atmospheric Emission License (AEL) and strictly adheres
to the emission limits for sulfur dioxide particulate matter and dust. The main
sources of exhaust gas in PMC are the reverberatory furnaces and converters used
in the production of copper products. Due to the high content of sulfur dioxide in the
exhaust gas of the converter the vast majority of exhaust gases are transported to
acid plants for conversion into sulfuric acid thus reducing sulfur dioxide emissions.Advanced exhaust gas treatment facilities are installed to continuously optimize
production processes improve resource utilization efficiency and achieve clean
Launch an Environmental Cleanup Activity at Tourist Attractions Deliver an Environmental Awareness Lecture at a Local School production. Moreover PMC establishes air quality monitoring stations and installs
dust detectors to monitor meteorological data sulfur dioxide and particulate matter
Locations of PM and PM Monitoring Stations of
in real time assess the impact of production on the environment and community 10 2.5
the Company
and ensure that emissions do not exceed the specified limits. In 2025 particulate
matter (PM) emissions were 135.7 t sulfur dioxide (SO2) emissions were 0.7 t and
nitrogen oxide (NOx) emissions were 110.2 t.Dust treatment Noise control
Organize an "Anti-Litter Initiative" for Waste Cleanup
Implement professional dust suppression management for unpaved roads Review mechanical noise control measures
and certain idle areas through a dust suppression contract. (e.g. white-noise backup alarms).Management Measures for Waste Gas Emission
Introduce water cannons in the magnetite operation area to suppress dust Plan to conduct a plant boundary noise
Process and technological emissions. survey in 2026 to optimize noise environment
upgrading Implement the smelter renovation project (SRP) by replacing the original reverberatory management.furnace with a high-efficiency double side-blown smelting furnace (DSB) significantly Optimize tailings discharge strategies to reduce dust generation.reducing fuel consumption.Install dust suppression spray systems in operational areas such as
Renovate the acid plant by adopting the double contact/double absorption process to further vermiculite processing zones.enhance SO2 capture rates and divert more process exhaust gases to the acid plant for
Plan to implement seeding and covering measures in 2026 to achieve
treatment.long-term dust control.
45 46HBIS Resources Co. Ltd. Practice ecological excellence and create a green resource landscape
Solid waste management The Company strictly complies with local waste discharge management requirements has
obtained a waste management license (WML) and undergoes regular audits by external bodies. Clean production to reduce resource consumption
The Company has established a comprehensive waste management plan formulated the
Integrated Waste Management Standard and handles solid waste generated from production
and operations in accordance with laws and regulations through measures such as reasonable Adhering to the principles of resource conservation and environmental friendliness the Company continuously enhances its clean production
AVOID
material use waste classification and waste recycling effectively reducing waste emissions. capabilities by strengthening energy management optimizing water resource utilization and promoting resource recycling thereby
contributing to green and low-carbon development. In 2025 the Company achieved cost savings of approximately CNY 30.36 million in energy
REDUCE For hazardous waste the Company implements special handling to prevent leaks and pollution and water resources.and entrusts qualified service providers for safe disposal; for special wastes such as radioactive
RE-USE
and explosive materials the Company has formulated a special action plan in accordance
with relevant regulations. Simultaneously the Company prioritizes promoting the resource
RECYCLE Strengthen energy The Company deeply implements an energy management plan (EMP) systematically identifying utilization of non-hazardous waste signing metal and high-quality plastic recycling contracts
advancing and continuously maintaining various energy-saving projects and constantly
DISPOSE with specialized agencies aiming to achieve a 10% increase in metal recovery rate . For residual management improving the Company's internal energy use management system. On this basis we focused wastes that cannot be recycled the Company arranges for unified transportation to a compliant
on promoting a series of energy-saving measures including variable frequency energy-saving air
landfill for disposal ensuring that the entire process is standardized and controllable. In addition
Waste Management Level System conditioners LED lighting process optimization in refrigeration plants upgrading of hoist control
the management of tailings ponds and mining waste is strengthened to prevent pollution to soil
systems and power factor correction for the main power distribution system in 2025.and groundwater. In 2025 the Company emitted a total of 429.4 t of harmful waste and 861 t of
harmless waste with recycled a total of 136 t of waste.Energy Management Plan
In 2025
Make commitment from the management through energy policy.Harmful waste emission Harmless waste emission Recycled waste consumption
Continuously implement the existing full set of energy and water saving measures.
429.4t 861t 136t Expand the existing energy and water saving measures.
Continuously expand the energy management team.Continuously monitor and evaluate all energy and water saving measures.Types and Treatment Methods of Solid Wastes
As a mining resource enterprise the Company consumes a large amount of electricity in production processes such as mining flotation
Type of wastes Treatment method
smelting and refining. Currently it primarily purchases electricity from the Eskom via local substations to meet its power demand. To optimize
its energy mix and enhance supply stability the Company has installed a waste heat boiler and steam turbine generator at its new smelter.General waste/ Landfill and recycle as much as Once the new smelting furnace is officially put into production this will further strengthen self-sufficient power supply with projected annual
Paper plastics cans plastic bags glass wood etc.non-minerals possible savings of approximately CNY 10.69 million in external electricity procurement costs. Simultaneously the Company is advancing renewable
energy projects planning to introduce off-site solar power through the Eskom grid to make the renewable energy penetration rate reach 40%
so as to further optimize the energy structure.Batteries printer cartridges chemical waste (acids PCBs
Hazardous waste Placed in a specific storage yard
hydrocarbons) asbestos fluorescent tubes etc. Energy Consumption
Minerals and Direct energy consumption - fossil fuels MWh 250782.4
Tailings waste rocks slags boiler ash etc. Placed in specific yards
processing waste
Indirect energy consumption - electricity MWh 580759.9
Special wastes Tires rubber linings waste containing PCBs etc. Placed in a specific storage yard
Total energy consumption MWh 831542.3
47 48HBIS Resources Co. Ltd. Practice ecological excellence and create a green resource landscape
Resource The Company has been continuously improving its residual ore recovery system. For the
concentrator we are exploring the recovery of copper from low-grade materials through grinding
recycling liberation and froth flotation; for the magnetite business we are performing magnetic separation
of materials from stored magnetite increasing the iron grade up to 65%. In 2025 we implemented
multiple improvements for the concentrator to address issues such as overly fine ore and
metal debris including converting the autogenous mill to a semi-autogenous mill installing
belt magnets and introducing froth sensors and an advanced process control system; we also
continuously improved separation efficiency and recovery rates in the magnetite business
through measures such as reuse constructing a new grinding plant increasing magnetic
separation capacity and adopting counter-current magnetic separators.The flotation tailings rich in magnetite are pumped to the magnetic separation plant for further
recovery achieving effective utilization of coexisting (associated) mineral resources. Relying on
the SHEQ management system we can track key performance indicators of concentrator daily
through the online instruments and metallurgical statistics system to ensure the continuous and
Collaborate with Multiple Parties to Advance Renewable Energy Projects in the Mining Area
controlled efficiency of comprehensive resource utilization.In 2025 the mining recovery rate was 85% the mineral processing recovery rate was 90% and
Optimization of The Company strictly adheres to water resource protection regulations continuously improves its the comprehensive utilization rate of associated mineral resources was 80%.water resource management system and develops and implements detailed water management
water resource plans. We meticulously track monthly water usage in the mining area tailings dam area and
plant area and implement targeted control measures to ensure rational allocation of water
utilization resources. In operations we uphold a "Zero Discharge" principle with all water collected and
stored on-site for recycling at the tailings return water dam and the east return water dam. We
regularly monitor record and assess water quality actively participate in local water resource
management meetings and collaborate with stakeholders to discuss regional management
strategies.Over the past decade as the process water reuse rate has continuously increased the daily
intake of raw water has decreased from approximately 21 megaliters to 12 megaliters. To further
consolidate water conservation achievements we will install approximately 20 additional
electronic flow meters in 2026 to enable real-time monitoring of water usage. Concurrently we
will advance the installation of
on-demand water supply flow meters to effectively eliminate flowing bubbling dripping or
leaking in areas such as changing rooms.Autogenous Mill Unit in Concentrator
Flotation Cell System in Concentrator
Average Total Water Use per day of PMC
Total fresh water (megaliters) Total recycled water (megaliters)
49 50HBIS Resources Co. Ltd. Practice ecological excellence and create a green resource landscape
Ecological restoration to reshape the mining area Biodiversity The company integrates biodiversity protection throughout the entire mining operation process. We strive to achieve a balance between mineral resource development and ecosystem protection
landscape protection through systematic monitoring scientific management and proactive restoration safeguarding
biodiversity in the mining area and surrounding regions.Under the country's National Environmental Management Act Mineral and Petroleum Resources Development Act and other relevant laws
and regulations The Company prioritizes ecological conservation as a core sustainability proposition based on the special location of the
mining area adjacent to the Kruger National Park and strictly abides by the ecological protection red line. Focusing on critical areas such
as biodiversity protection vegetation restoration and land rehabilitation we continuously advance the harmonious coexistence of mining
Governance The company strictly complies with South Africa's National Environmental Management:
activities and nature protection striving to achieve a unified balance between industrial development community well-being and ecological Biodiversity Act (NEMBA) the International Finance Corporation Performance Standards and
equilibrium.other relevant regulations and systematically identifies and manages the impacts of mining
activities on ecosystems based on the Biodiversity Action Plan comprehensively implementing
management measures including avoidance reduction restoration and compensation. On this
basis we continuously improve mine closure management. The land use management plan
review has been completed and the mine closure cost assessment and rehabilitation standard
revisions were carried out in 2025. To ensure the effective implementation of all conservation
commitments we are committed to promoting the continuous improvement of the ecosystem in
the mining area and its surroundings ultimately achieving the goal of a "Net Positive Impact" (NPI)
on biodiversity.Strategies The company is dedicated to seeking a balance between mining operations and ecological
protection and it develops targeted response strategies by systematically identifying and
assessing the impacts of mining activities climate change and other factors on the ecosystem.Risks Risk description Measures
Formulates corresponding strategies which are to optimize
The unstable rainfall in the area leads water resource management improve water use efficiency
Challenges posed by extreme
to an increase in droughts and extreme strengthen the cultivation and protection of drought-
weather
weather events which harm biodiversity. resistant plants and enhance the ecosystem's adaptability
Results of Vegetation Rehabilitation Work in the Mining Area to climate change.Actively seeks external cooperation and establishes
S i g n i f i c a n t i n v e s t m e n t i n f u n d s
The challenge of substantial partnerships with government departments scientific
Green office The Company integrates green concepts into daily operations actively promoting energy- technology and human resources is funding requirements research institutions non-governmental organizations etc.saving consumption-reducing and low-carbon office practices. We post electricity saving and required for biodiversity conservation.to jointly carry out biodiversity conservation.water conservation signs in office areas encouraging employees to turn off lights and conserve
water embedding environmental awareness in everyday actions. We vigorously promote
electronic and paperless office work reduce the printing of paper documents strictly control Explores and adopts advanced monitoring equipment and
the use of disposable office supplies and lower resource consumption from the source. In daily technical means to improve the accuracy and reliability
communication we encourage employees to prioritize online methods such as conference calls The complexity challenge of The monitor ing and evaluat ion of of monitoring data and establishes a scientific evaluation
to reduce unnecessary travel and energy consumption. Through continuous publicity guidance monitoring and evaluation biodiversity is complex and challenging. system to regularly evaluate the ef fectiveness of
and atmosphere-building the Company gradually cultivates green and low-carbon office and conservation efforts and adjust conservation strategies and
living habits among employees truly integrating environmental concepts into daily work. measures in time.
51 52HBIS Resources Co. Ltd. Practice ecological excellence and create a green resource landscape
Impact risk and To comprehensively identify and address the impacts of mining operations on the ecosystem Wildlife protection and management
opportunity management The Company has established a multi-dimensional monitoring system covering vegetation
insects mammals and predatory animals. Based on this system we can systematically track
For large predatory animals within the mining area The Company has developed specialized management plans that outline management
ecological trends assess the potential impacts of climate and operational activities and
objectives implementation pathways and operational procedures covering species such as cheetahs lions African wild dogs spotted hyenas
optimize management measures accordingly to ensure the effective achievement of biodiversity
The initiative aims to achieve a balance between mining operations and species conservation through scientific management contributing to
protection goals.the achievement of regional metapopulation conservation goals.Ecosystem dynamic monitoring
Case "Eagle Nesting Project" achieves win-win for ecological protection and production operations
Establish a vegetation monitoring project to systematically understand the current status and change
In accordance with South Africa's Biodiversity Act and Nature Protection Standards
trends of natural vegetation resources in the mining area;
the company innovatively implemented the "Eagle Nesting Project" to address issues
Monitor the plant species composition coverage standing biomass and community structure;
of African hawk-eagles nesting on monitoring poles obstructing camera lenses
Conduct correlation analysis between vegetation indicators and management practices such as and posing threats to employee safety. By constructing artificial eagle nests at
grazing density; strategic locations within the mining area the eagle population was successfully
Dynamic monitoring of Track the dynamic changes of vegetation in the mining area throughout the entire process and relocated away from the core facilities. This initiative not only protected a protected
vegetation conduct comparative analysis with ecological changes in regional nature reserves. species but also ensured the normal operation of the monitoring system utilizing
the territorial awareness of raptors to achieve "natural security" setting an industry
example of harmonious coexistence between industrial development and ecology.Initiate butterfly biodiversity monitoring efforts to establish a baseline for entomological ecological
impact assessment;
Case Innovative distribution of slingshots to prevent and control primate safety risks
Distinguish between natural climate cycle fluctuations and potential ecological impacts from mining
operations fulfilling the monitoring commitments outlined in relevant management plans.Establishment of butterfly
In response to the increasing incidents of harassment by primates such as monkeys and baboons within the mining area which have
monitoring and ecological
led to property damage and safety hazards for employees PMC distributed 50 slingshots to workers in high-risk zones as non-lethal
baseline
deterrent tools. The initiative aimed to alert the animals and maintain a safe distance by showing the slingshots rather than causing
harm. All recipients underwent standardized training to ensure humane usage. The team also strengthened the management of
feeding behavior and safety education ensuring both the personal safety of employees and harmonious coexistence with wildlife.Conduct annual assessments of herbivore activity trails monitor the impact of feeding behavior
on the ecological environment of the mining area and record and analyze data with the help of
Cybertracker software;
Control the disturbance of overgrazing to habitats assess the impact of feeding behavior on
vegetation restoration areas and facilitate the natural recovery of native vegetation;
Monitor the habitats of endangered species maintain the ecological integrity of undisturbed areas
Monitoring of mammal and safeguard the survival conditions of wildlife traversing the mining area.feeding impacts and activity
trails
53 54HBIS Resources Co. Ltd. Practice ecological excellence and create a green resource landscape
Indicators and goals
Indicator
In 2025 The Company identified a 21-hectare area for synchronized
ecological restoration with monitoring projects for vegetation
butterflies mammals and predatory animals all progressing as planned.The monitoring data shows that biodiversity in the restoration area is
gradually improving with a greater variety of butterfly species than
that in natural areas and the reptile and amphibian communities in
good ecological condition; the vegetation coverage and plant species in
tailings ponds and waste rocks have significantly increased enhancing
ecosystem stability. With the restoration of ecological functions
connectivity between different ecological areas has been strengthened
providing channels for the wildlife migration and gene exchange and
generating positive spillover effects on surrounding protected areas.Future plans
The Company will leverage continuously accumulated monitoring data
to dynamically optimize management measures further enhancing
the effectiveness of habitat restoration and ecosystem rehabilitation.Additionally we will enhance exchanges and cooperation with research
institutions industry partners and social organizations introduce
advanced conservation experience and technology and continuously
carry out public awareness campaigns to foster a positive pattern of
multi-stakeholder participation in biodiversity protection.Wildlife in Mining Area
55 56HBIS Resources Co. Ltd. Leading value innovation sharing and integrating a better society
Leading value innovation
sharing and integrating a
better society
HBIS Resources continuously improves its scientific and technological innovation system
strengthens the core competitiveness of enterprise development adheres to creating
opportunities for employee development safeguards employees' fundamental rights and
interests achieves alignment and resonance between the Company and its employees
engages in community building and joins hands with society to share the fruits of corporate
development.Innovation-driven stimulating technological vitality 59
Mutual benefit and win-win cooperation building a responsibility chain 63
People-oriented building a stage for growth 65
Inclusiveness for a harmonious community 72
SDGs
57 58HBIS Resources Co. Ltd. Leading value innovation sharing and integrating a better society
Innovation-driven stimulating technological Transform Leveraging its own business characteristics the Company directly solves current operational problems through innovative solutions with diverse value and long-term implementation driving the
vitality innovative transformation of innovative achievements into tangible benefits. Encourage employees to participate
in innovation-themed challenge projects promote business development by proposing innovative
HBIS Resources continuously refines its scientific and technological innovation system solidifying the foundation for self-reliance and self- achievements solutions and foster an inclusive innovation environment; actively showcase the Company's innovation
improvement in science and technology. It realizes the application of research results through transformation patent licensing and media and research achievements through conferences/seminars/technical activities/academic journals
coverage actively promotes the digital transformation of mining operations supports high-quality industrial development and enhances its completing core mining technology upgrades such as the installation of the Southern Hemisphere's
influence in the mining field. largest underground crusher magnetite mill modifications and intelligent underground ventilation
control; collaborate with universities like the University of South Africa and the University of Limpopo
on research projects conduct graduate projects oriented towards industry needs solve existing PMC
problems through in-depth theoretical research and comprehensively enhance the added value of
Improve innovation The Company adheres to an innovation-driven approach institutionalizing and normalizing the mining and processing value chain; establish an intellectual property management mechanism
innovation mechanisms as a core part of the daily operational system and includes them as formulate a written filing system for ownership of innovative achievements emphasize intellectual
system KPI indicators for all managers clarifying responsibilities and work priorities. It has established property creation and outcome transformation establish cooperation with the patent-holding company
a comprehensive innovation management system setting up an innovation management Mintek assist PMC in patent application patent registration and patent commercialization and
organizational structure led by the value enhancement practice department and involving strengthen the standardized management of intellectual property.project principals chief researchers and tailings and storage facility research managers
to systematically review innovation and R&D work. The Company has formulated the Value By the end of 2025 the value improvement practice (VIP) department had collected and organized a
Enhancement Practice System specifying operational procedures for innovation projects database of over 2200 creative proposals from various disciplines.and using standardized templates and evaluation criteria to ensure uniform assessment and
standardized management of employee innovation ideas. A comprehensive innovation incentive
Innovative achievements for mining operations
program is implemented to recognize employees who submit innovative ideas teams that
successfully implement innovation solutions and individuals who publish results in internal
or external publications. A knowledge-sharing platform has been established to promote the
sharing recognition and publication of innovative technologies and practices both internally
and externally. A multidisciplinary "SWAT" team composed of graduates apprentices interns Innovation: Upgraded old synchronous switches in the production shaft.and contractors has been formed to assist various departments in implementing their own
innovation solutions. The Company regularly compiles research quarterly reports and research Result: Reduced maintenance time from 4-6 hours to 30 minutes.journals to document its research activities which are included in monthly reports sent to
senior management fostering an innovation culture within the Company that values creativity
and embraces learning. In 2025 the Company invested CNY 120 million in R&D had 225
technical personnel completing certification for ISO 56001:2024 and ISO 56002:2019 standards;
successfully held 6 innovation challenge competitions collecting a total of 949 R&D suggestions.Innovation: Independently retrofitted a decommissioned engine.Innovation project operating guidelines/principles
Result: extending the service life of the equipment.Initiate approval: Obtain approval authorization from the Topic suitability: Address various existing problems at
Executive General Manager the concentrator and PMC
Value benefits: Bring financial benefits as well as safety Academic value: Possess research value and
health environment and quality (SHEQ) related benefits technological innovation
Innovation: Optimized the usage method for lifting beam slings.Result: Reduced time for removing the steel rope from the reel improving
production efficiency.
59 60HBIS Resources Co. Ltd. Leading value innovation sharing and integrating a better society
Development of database
Installed high-speed froth sensor cameras in flotation cells to collect real-time visual data of the froth surface and monitor key
parameters such as bubble size color and flow rate and enabling real-time visual control of mineral processing.Deployed the Schaeffler Optime wireless vibration/temperature sensor system leveraging AI machine learning to predict
potential equipment failures and achieving real-time feedback on the health status of critical and non-critical equipment.Equipped the reliability engineering and condition monitoring team with CAT S62 pro rugged phones supporting thermal imaging
and real-time data collection and enabling on-site identification of equipment hot spots and overheating components.The Company employee research findings were presented at the The Company Smelter Cooling Tower Structural Assessment Conducted Windows 11 system migration for equipment implemented SysAid cloud upgrade to modernize IT service management
AfriRock 2025 conference and selected for publication in the SAIMM and Repair Plan Project received a nomination for the Annual upgraded LIMS system HP Nimble storage system Barn Owl system to enhance workflow efficiency and compliance and
journal. Engineering Excellence Award of the Consulting Engineers South installed UPS devices to ensure operation of critical systems during power outages.Africa (CESA).Representatives from the University of South Africa and the Company The Company has established a technical collaboration with
participated in a project application seminar. professors from the University of Witwatersrand (WITS) for tailings
pond development.Innovative The Company seizes the digital wave strengthens digital infrastructure enhances governance
efficiency data integrity operational resilience and real-time decision-making capabilities;
technology support utilizes digital and intelligent technologies to innovate research & develop and upgrade mining
The company launches the "Basic Digital Skills Program" Vocational The company attends the 4th Mining Digital Transformation
technologies effectively improving equipment production efficiency enabling efficient resource
Education and Training Project Conference in 2025
utilization and building a solid technological foundation for corporate innovation; emphasizes
digital talent cultivation actively implements basic digital skills training programs to fill the
Company's digital skills gap and helps employees enhance their digital skills.Development of database
PMC has developed two research databases. Database (I) aims to list information related to employee research interests and
Database (II) aims to summarize all research work conducted by internal employees in collaboration with external institutions.The research database has been utilized on the portal of the Mine Health and Safety Council (MHSC) to assess the impact of
research and innovation adoption.The magnetite technology team purchased multiple monitoring Completed surface ventilation shaft fans.screens for the new process control room upgrading the equipment
for the process control facility.
61 62HBIS Resources Co. Ltd. Leading value innovation sharing and integrating a better society
Mutual benefit and win-win cooperation building a Contractor The Company conducts double review of contractors' qualifications and personnel capabilities to ensure that contractors involved in projects have the necessary competence and expertise.responsibility chain management Together with contractors it promotes the construction of a safety culture to enhance safety
awareness and emergency response capabilities among all parties. Highperforming contractors
HBIS Resources strictly adheres to supply chain management laws and regulations builds a secure and stable responsibility chain are rewarded with incentives while underperforming ones undergo corrective discussions or
strengthens contractor safety collaboration and incentive/elimination mechanisms collaborates with industry partners to deepen industry- are phased out. This approach fosters a collaborative and sustainable ecosystem for mutual
academia-research cooperation actively participates in industry exchanges and works with supply chain partners to jointly build an industrial development with contractors.ecosystem for collaborative development.Industry The Company consistently upholds the concept of open collaboration and mutual development. Supplier HBIS Resources strictly adheres to relevant regulations in its operating locations such as the Broad-Based It deeply engages with higher education institutions research organizations and industry
Black Economic Empowerment Act (B-BBEE) and the Mineral and Petroleum Resources Development Act.management partners for communication and exchange. It collaborates extensively with top experts in Guided by the Operating Procedures for Procurement and Material Management Code of Ethics and Mine communication
mineral processing geometallurgy sustainable mining technology and operational optimization.Health and Safety Standards the Company has established a supplier evaluation committee continuously and cooperation The Company actively participates in mining industry conferences technical seminars and
improves its supplier management mechanism systematically identifies assesses and monitors supply
professional forums showcasing its research achievements to promote experience sharing and
chain risks ensures the security and continuity of key goods and services supply chains promotes supplier
technological co-creation within the industry thereby enhancing its influence in the mining field.development and cooperation and ensures suppliers align with the Company's sustainable development
goals.In 2025 PMC was awarded the South African B-BBEE Level 2 Compliance Contributor Certificate signifying
its compliance practices under the requirements of B-BBEE and the Mining Charter have reached a high
level. This significantly enhances the Company's recognition within the local procurement system and
creates favorable conditions for expanding cooperation with government mining and large enterprises.Supply chain risk management Supply chain security and stability
Integrate risk assessment throughout the entire supplier Before collaboration assess supplier capabilities compliance
lifecycle including supplier eligibility and contract signing. and operational resilience through a due diligence process.Systematically implement identified risk mitigation and
monitoring through measures such as developing corrective Adopt supplier diversification and strategic sourcing strategies
action plans creating alternative procurement strategies to reduce the risk of supplier dependency.implementing contract controls and formulating contingency
Utilize digital procurement and contract management systems
plans.to promote supply chain traceability and transparency The Company participates in the African Rock Engineering Conference The Company Mintek and the University of South Africa hold a virtual
Review the effectiveness of risk management measures effectively monitoring and auditing supply chain transactions. meeting on research collaboration
through management oversight regular supplier performance
evaluations supplier audits and internal review activities.Access and review of suppliers Supply chain ESG management
Follow written procedures and delegation of authority (DOA) Integrate sustainable development ethical standards and
limits to conduct supplier pre-qualification performance health safety and environment requirements comprehensively
monitoring periodic evaluations and site visits. Assessment into the supplier selection process and performance
criteria include delivery performance quality health and evaluation system.safety cost and compliance.Improve the supplier training system and carry out relevant
Prioritize local African women and suppliers with higher training through the supplier development program.B-BBEE levels.For suppliers identified as qualified enterprises or beneficiaries
Conduct ESG review and evaluation of suppliers through of supplier development the Company may provide advance
the SAP system and ARIBA e-procurement platform rate payments business support and other specific support Employee representatives of the Company present research work at The employee representatives of the Company attend the SAIMM
suppliers and use the ratings as criteria for key procurement stipulated in supplier development agreements. the 13th International Heavy Minerals Conference (HMC2025) Limpopo Branch Technical Presentation in Bela-Bela; employee
decisions. presentation wins first place in overall awards
63 64HBIS Resources Co. Ltd. Leading value innovation sharing and integrating a better society
People-oriented building a stage for growth
Strictly comply with the Employment Equity Policy and Recruitment Policy formulate and issue the Employment
Equity Implementation Plan. Uphold the principle of equal opportunity as an employer to build a workforce with
a representative composition that fully reflects South Africa's diverse demographic characteristics thereby
HBIS Resources consistently adheres to domestic and international labor standards upholds equal employment improves the compensation promoting the establishment of a transformed and representative workplace environment.and benefits system strengthens union communication and management deeply integrates democratic management into modern corporate
governance comprehensively safeguards employee information security and solidifies the foundation for the fair healthy growth and Employee
development of employees. localization policy
Protection of rights The Company adheres to the principles of fair just and open recruitment prohibits any form of
discrimination and unfair competition refrains from differential treatment based on employees' Strictly comply with the POPI Act respect and protect employee personal privacy to ensure their rights are not
and interests of gender age ethnicity or religious beliefs actively promotes employee localization policies infringed upon; further enhance the security protection of employee electronic information through IT security
and fosters a fair and equitable employment environment. By 2025 the company had a total systems to prevent data leakage.employees workforce of 3885 employees with a 100% labor contract signing rate.Employee privacy
In 2025
protection
Total number of company employees Labor contract signing rate
3885 100 The Company PMC employee welfare systemperson %
Provide immediate economic assistance or leave Provide employees with good pension fund plan.arrangements for employees whose immediate family
members have passed away. Employees who participate in the Company's
The Company complies with local laws and regulations such as the Constitution of South Africa and the ownership plan as beneficiaries can enjoy an
Employment Equity Act formulates the Employment Equity Policy and Recruitment Policy and resolutely Provide medical subsidies for employees to enable additional 5 years of welfare after retirement.opposes any forced labor and child labor and treats employees with different nationalities ethnicities races them and their families to enjoy the best medical
skin colors genders religious beliefs and cultural backgrounds equally; a job evaluation and grading mechanism security services. Provide scholarships for eligible employees and
ensures that position settings meet reasonable level requirements maintaining an equal employment family members in need to help them improve their
environment; it establishes an accessible working environment and employment mechanism and states in Provide rental subsidies for new employees to settle skills.Adhering to equal recruitment that prioritize women or disabled in certain posts to help them realize their professional value.down in Phalaborwa and purchase housing subsidies
for employees to buy properties.employment
The compensation guidelines approved by the PC REMCO set salary standards for position appointments
The Company PMC employee composition
ensuring that offer letters comply with regulations by clearly defining job responsibilities and authority scopes.Specialty composition Education background
The Company provides employees with various types of leave including annual leave sick leave maternity/
paternity leave study leave and specialist doctor leave.
1.03%
The Company strictly adheres to the provisions on working hours in the Mine Health and Safety Law and the 2.37% 8.22%
10.76%
Remuneration and guiding clauses in the Basic Conditions of Employment Act regarding total weekly working hours and overtime. 5.00%
welfare system 0.33%
32.35%
In accordance with the Constitution of South Africa and the Labor Relations Act all employees have the right to 80.51% 59.43%
form labor unions freely establish join labor unions and participate in lawful activities without fear of dismissal
or discrimination.The relationship with labor unions is built based on written agreements such as Recognition Agreements and
collective agreements. All meetings require minutes to confirm the consensus reached.Production personnel Sales personnel Bachelor degree and above
Maintain regular constructive dialogue with labor unions to jointly address core employee concerns including
Strengthen labor job safety job security substantive negotiations improving overall employment conditions and employee
Technician Management personnel Associate degree
union construction development promoting a positive work atmosphere across all business units. Financial personnel Administrative personnel Technical secondary school and senior high school diploma or below
65 66HBIS Resources Co. Ltd. Leading value innovation sharing and integrating a better society
Impact risk and opportunity management
Talent acquisition From the perspective of its own development needs and taking into account the diversity and
balance of its staff composition the Company focuses on targeted recruitment and through
establishing partnerships with organizations that focus on recruiting talents with specific skills
and cooperating with special interest groups (e.g. the South African Association of Persons with
Disabilities) the Company insists on the openness and transparency of talent recruitment and
searches for specific talents that meet the needs of the Company's development in order to build
up a team of comprehensive professional and enterprising talents.Talent training The Company places high importance on creating growth opportunities and platforms for
employees. Strictly following employee needs and relevant compliance commitments in the
PMC won the "Best Employer" certification receiving this honor a total of 8 times. Social and Labor Plan (SLP) it provides training programs covering formal education technical
training soft skills enhancement and leadership development for different categories of
professional positions. It regularly conducts training needs analysis to support the budget
Employee growth HBIS Resources continuously strengthens the construction of employee cultivation system application process and training plan formulation. It offers assistance such as bursaries to
clears career progression paths transforms talent advantages into development advantages and eligible employees to stimulate their learning potential and support further education. It
support provides solid organizational and talent support for the Company's high-quality development. establishes partnerships with external professional institutions like the University of South Africa
to jointly develop specialized training courses.In 2025 the company conducted 33 specialized
Governance The Board of Directors has established a Nomination Committee to select and propose
training sessions with 2290 participants.candidates selection criteria and procedures for the Company's directors and senior
management fully consider the succession management capability development of the Board of
In 2025
Directors and management and the Company's leadership needs ensure the Company maintains
effective talent competitiveness in the market and ensure all employees can fully utilize their
The company organized specialized training Attended the training
talents through the implementation and execution of human resources work by subordinate
team leaders.Strategies 33terms 2290person
Risks Risk description Measures
Mineral resource development and University-enterprise cooperation for targeted training: Collaborate
engineering machinery manufacturing with South African universities to establish targeted classes in
are both technology-intensive fields mining engineering mechanical manufacturing and other fields with
and local South African employees customized courses.Skill gap risk
may lack the professional knowledge “Dual mentorship system for technical talents”: Chinese experts are
required for high-tech positions leading dispatched to pair up with local technical backbones in South Africa
to insufficient talent supply for technical accelerating skill enhancement through on-site practical operations
roles. combined with theoretical training.South Africa's vocational education
Mismatch Establish training centers within mining areas set up satellite training
resources are concentrated in major
risk between points and equip them with virtual reality (VR) devices to simulate
cities like Johannesburg making it
South Africa's mining scenarios and address geographical limitations.The company hosts VIP (Value improvement practice ) knowledge The company participates in the exciting career day event hosted by
difficult for employees in remote mining sharing and awards ceremony Lulekani Full Church
education
areas to receive systematic skill training Collaborate with local vocational colleges to build training bases such
system and
leading to inefficiency in operational as partnering with Limpopo Technical College to embed training courses
industry needs into the mining production process. Talent promotion The Company is committed to creating equal development opportunities for all employees. It positions.has established talent management and succession planning policies launched a structured
PMC is predominantly staffed by local Develop “culturally adaptive” training materials to integrate Chinese
career progression system and adopted a systematic integrated approach to accurately identify
Cross-cultural employees and cultural differences management experience with South African local culture.develop and retain key position talent based on current and future business objectives. Following
each annual performance management cycle it conducts annual assessments to prepare
management may lead to low acceptance of training Establish a “dual-track” promotion system with technical and for promotions and ensure optimal performance in current roles providing transparent fair
risk content and disputes over promotion management positions running in parallel so that employees can choose and diverse career development and advancement paths.In 2025 nine PMC employees of the
fairness. development paths based on their strengths. Company successfully passed the 2025 career promotion process.
67 68HBIS Resources Co. Ltd. Leading value innovation sharing and integrating a better society
Goal
Career development paths of the company
The PMC develops a training plan annually to determine the number of employees in various learning programs Prepare WSPs to help
Promotion opportunities are provided for employees who excel in their current roles and demonstrate employees (especially HDSA candidates) improve their skills.Vertical promotion
the potential to take on more challenging tasks.Goal for 2026 Goal for 2026 (Non- Goal for 2026 Goal for 2026
There is no significant change in function but the company rewards hardworking and outstanding Field Unit
Lateral promotion (HDSA) HDSA) (Male) (Female)
employees through salary increases.Bursary program Person 0 0 0 0
Employees are transferred to new positions in other departments or business units helping employees
Diagonal promotion
with quick learning abilities to excel in new roles and learn new skills. On-the-Job training program Person 27 1 18 10
Graduate internship program Person 11 1 8 4
The Company provides promotion opportunities to all eligible employees by posting vacancy information
Open promotion Management development program Person 0 0 0 0
on the employee bulletin board or via email.Study and practice program Person 0 0 0 0
Total Person 38 2 26 14
Talent selection The Company regularly conducts best employee selection activities. All employees and
management are eligible for nomination. Subordinates colleagues and superiors can nominate
any employee by filling out the best employee nomination form. After the HR Best Employee
Female employee The Company attaches great importance to ensuring the equal rights personal dignity privacy Nomination Form is submitted to the relevant department committee or the HR Service
physical and mental health and fair labor rights and interests of female employees aiming for
Department the department committee reviews all nomination materials within the department. care female employees to account for 25% or more of the workforce. Through the establishment of
The approved nominations are then submitted to the HR Service Department for reward approval.the “mining female” system improving female health facilities in the mining area and hosting
Nominees approved by the department automatically qualify for the annual best employee
female leadership forums the Company empowers the career development of female employees
selection. According to the career promotion policy being selected as the best employee of the
and reshapes the mining workplace ecology.month enhances eligibility for receiving senior or master allowances.Indicators and goals
Indicator
Indicator Unit 2025
Investment in employee training CNY ten thousand 3052.1
Average training duration per person Hour 39.9
Pregnancy health week activity Employee anti-sexual harassment education activity
Turnover rate of employees % 3.4
Note:HDSA stands for Historically Disprivileged South Africans. The planned quotas for the above programs in 2026 have been reduced due to
multiple operational challenges currently faced by the Company including flooding in underground mining operation areas and operational
difficulties in other supporting plant areas of the mine affected by the floods. The Company will dynamically review and adjust the planned
quotas based on the actual progress of these challenges.
69 70HBIS Resources Co. Ltd. Leading value innovation sharing and integrating a better society
Inclusiveness for a harmonious community
Maternity Anti-sexual
leave policy harassment
Th e C o m p a n y a d h e r e s t o n a t i o n a l The Company has formulated the Anti-Sexual Harassment Policy
regulations by providing special welfare to create a work environment free from bullying and harassment HBIS Resources upholds the philosophy of inclusive and equitable development. Leveraging its resource advantages it focuses its efforts
system for female employees during and discipline all employees convicted of sexual harassment. on key areas such as education healthcare community governance environmental protection and public welfare. Through concrete
pregnancy maternity leave and suckling actions it deeply engages in community co-construction supports local development and fosters a harmonious and symbiotic community
period to effectively safeguard the rights of The Company has conducted awareness campaigns on development ecosystem. In 2025 a total of 35 company personnel participated in public welfare and charitable activities.female employees. preventing workplace sexual harassment by vivid case studies to
help employees identify different forms of harassing behavior.PMC establishes an applicable maternity
leave policy to offer up to 6 hours of The Company has smooth reporting and assistance channels
paid leave per week for eligible female allowing harassment incidents to be reported through the HR Establish scholarships provide local youth with holiday work opportunities to cultivate the
employees. Department or the reporting system. professional skills young people need; advance school renovation projects improve the construction
Support education
of supporting facilities for campus nutrition programs donate computer equipment to schools to
development
enhance the level of local educational resources; organize career fairs to provide an interactive
platform for career exchange bridging the gap between education and employment.Honors
Mpho Chairperson of the PMC Mining Women's Organization was selected as a semi-finalist for the 2025 South Africa
TransUnion Rising Star Award in the category of mining & minerals. Construct health service centers and provide related diagnosis and treatment services; operate the
Guarantee healthcare Marara Medical Center to offer 24-hour medical security for enterprise employees and community
residents.Enrich employee life The Company organizes diverse cultural sports parent-child and holiday activities to promotework-life balance enhance employee cohesion and create a virtuous cycle of “happy workhealthy life”. In 2025 the employee satisfaction survey results at PMC reached 85.2%.Take root locally to strengthen governance actively participate in maintaining local community
security and order; in the face of natural disasters such as fires and floods actively engage in local
Participate in
rescue and post-disaster reconstruction and promote the integrated development and shared
community governance
benefits of the enterprise and the community to provide a safe and stable operating environment for
overseas business expansion.Organize community clean-up and environmental improvement actions for garbage removal conduct
Preserve the community public awareness campaigns on environmental protection concepts protect community flora and
Cooking challenge on Valentine's Day Healthy walking activity environment fauna maintain community biodiversity and achieve harmonious development between the Company
and the community environment.Focusing closely on local livelihood needs carry out a series of public welfare activities centered on
Engage in public welfare assisting disadvantaged groups and caring for special populations integrate the concept of public
and charity welfare into daily operations and interpret the Company's social value through sustained public
welfare practices.PMC cycling club members participated in the Capetown annual Family half marathon
cycle tour
71 72HBIS Resources Co. Ltd. Leading value innovation sharing and integrating a better society
Case Two-day public welfare action of the Company on Mandela Day in 2025 02
On July 17-18 2025 PMC conducted a two-day public welfare action on Mandela Day at the Tshubje temporary relief center and the
Thabelang disability center in the Phalaborwa municipal area. On the first day winter supplies were donated to the relief center
and doors and windows were renovated; partner Tharama Trading donated paint and repaired a well and toilet doors. On the second
day non-perishable food and clothing were donated to the disability center to support its long-term food project. This action
demonstrated PMC's corporate pursuit of deeply integrating social responsibility into its operational philosophy.
0103
04
Donating winter supplies to the relief center Donating non-perishable food to the disability center
05
06
Case The Company assists community in maintaining street safety and order
July 2025 PMC through its security services department donated an old trailer to the local community policing forum for use in
emergencies such as fires and floods enhancing community safety and providing support to the local South African Police Service
(SAPS). In recognition of the South African Police Service's (SAPS) tireless efforts in maintaining safety and order on the streets of
Phalaborwa PMC has sponsored three patrol vehicles to enable 24/7 patrols assisting local communities in combating criminal
activities and safeguarding and sustaining their sustainable development.
07
The Company scholarship program propels 31 students The Company contractor donates 825 brand new school uniforms
0102
towards career success to Wats-Wats Primary School in Ga-Selwane Village
The Company donates 44 computers and accessories to 11 The Company partners with Frans Du Toit Secondary School to
0304
under-resourced schools in the Phalaborwa area host a career expo
The Company conducts community environmental The Company conducts environmental awareness activities in
0506
clean-up campaign local schools
The Company launches child protection week public welfare
07
initiative
73 74HBIS Resources Co. Ltd. Annex
Future prospects Annex
Those who act often succeed and those who walk often arrive. In 2026 HBIS Resources will continue to deepen its ESG practices solidifying Key performance
the foundation of governance nurturing the beauty of ecology and fulfilling the path of responsibility. On the journey to building a world-class
mining enterprise it will forge ahead with determination and strive for excellence accelerating the creation of a new development paradigm
where HBIS Resources' social benefits and ecological development thrive together. it will continuously strive to achieve the corporate goal of Environmental performance
"becoming the most competitive enterprise in the industry"!
Indicator Unit 2023 2024 2025
Combat with climate change
Scope 1 greenhouse gas emissions t CO2 e 65130.8 70033.1 78248.6
Scope 2 greenhouse gas emissions t CO2 e 470871.9 513960.1 572048.5
Scope 1 greenhouse gas emissions reduction t CO2 e -4708.0 -4902.1 -8215.4
Scope 2 greenhouse gas emissions reduction t CO2 e 8584.0 -43088.3 -58088.3
Environmental management
Environmental investment CNY ten thousand 522.1 488.8 634.2
Office electricity consumption Ten thousand kWh 97.1 159.6 394.7
Energy utilization
Total energy consumption MWh 670633.9 765688.5 831542.3
Non-fossil energy quantity (power) MWh 485742.0 474357.0 580759.9
Total energy consumption intensity of the MWh/million
114.3137.2142.4
enterprise revenue
Clean energy consumption MWh 0.0 0.0 0.0
Utilization of water resources
Annual water consumption Ten thousand m3 3897.9 5086.8 5129.1
Fresh water consumption Ten thousand m3 425.8 538.4 568.2
Water saving amount Ten thousand m3 250.2 -112.6 -29.8
Recycled water Used Ten thousand m3 3472.1 4548.4 4560.9
Waste water Discharged Ten thousand m3 13.8 12.6 14.0
Recycling rate of mineral processing waste water % 89.1 89.4 88.9
75 76HBIS Resources Co. Ltd. Annex
Indicator Unit 2023 2024 2025 Indicator Unit 2023 2024 2025
Pollutant emission Social insurance coverage rate
%100100100
(pension fund)
Particulate matter (PM) emission ton 201.2 196.2 135.7
Number of female managers Person 13 12 14
Sulfur dioxide (SO2) emission ton 2.3 2.3 0.7
Percentage of female managers
Nitrogen oxide (NOx) emission ton 54.3 53.3 110.2 % 16.4 19.4 28.5among middle-level managers
Waste disposa Average days of paid leave per
Day 34 34 34
employee
Harmless waste Discharge ton 756.0 1177.0 861.0
CNY ten
Investment in employee training 3669.6 3256.7 3052.1
Harmful waste Discharge ton 82.1 133.0 429.4 thousand
Comprehensive utilization rate of solid waste % 21.8 11.8 13.6 Average training duration per
Hour 53.0 32.4 39.9
employee
Recycled waste Used ton 165.0 145.0 136.0
Occupational health and work safety
Consumption of renewable resources and its
%000
proportion in total resource consumption Total duration of safety training Hour 41239.0 39491.0 53318.0
Coverage rate of training on work
%93.992.992.8
safety
Number of safety drills Time 146 122 143
Social performance
Number of work safety accidents Time 972 771 770
Indicator Unit 2023 2024 2025 Number of work-related injuries Person 5 4 2
Protection of rights and interests of employees Number of work-related fatalities Person 0 0 0
Number of female employees Person 652 807 798 Lost working days due to work-
Day 449 502 53
related injuries
Proportion of female employees % 16.5 20.0 20.6
Rate of special operators with
Turnover rate of employees % 3.3 3.2 3.4 % 100 100 100
corresponding certificates
Number of people employed during
Person 235 159 26 Supply chain security
the reporting period
Number of supplier ESG assessments Pcs. 7 10 9
Physical examination coverage rate % 100 100 100
Social contribution
Labour contract signing rate % 100 100 100
CNY ten
Social insurance coverage rate
% 100 100 100 Charitable donations 1937.2 1988.8 2261.1
(medical subsidy) thousand
77 78HBIS Resources Co. Ltd. Annex
Governance performance Index of indicators
Sustainable Development Report of Chinese Enterprises
First-level heading Second-level heading
Indicator Unit 2023 2024 2025 (CASS-ESG 6.0)
Report preface P1.1-1.2
Company governance
Statement of the Board of Directors -
Attendance of directors at shareholders'
% 100 100 100 Address by chairman P2.1
meetings
About Us P3.1-3.3
Proportion of female directors % 11.0 22.0 22.2
ESG governance G1.1.1-1.1.10G1.3.1-1.3.2
Attendance of directors at meetings of Board 2025 annual responsibility performance A2
%100100100
of Directors
Responsibility Focus I: Ensuring Supply of High-Quality Ore Enhancing Global
S3.1.2S3.1.4
Industrial Resilience
Proportion of female executives % 10 10 9
Responsibility Focus II: Jointly Building the "Belt and Road" Reaping Fruits of
S1.2.1
Customer China-Africa Cooperation
Standardized operation to improve management
Customer satisfaction % 100 100 100 G1.1.1-1.1.3G1.3.1-1.3.2
efficiency
Deepen Overseas
Number of customer complaints Time 1 0 5
Ventures and Build Abiding the law being compliant and preventing G1.1.1-1.1.2G1.1.7-1.1.8
a Solid Foundation operational risks G2.1.1-2.1.8G2.2.1-2.2.3
Customer complaint resolution rate % 100 100 100 for Stable Excellent quality to win customer trust S3.3.1-3.3.6S3.4.1-3.4.4
Operation
Number of product loss prevention incidents Time 1 0 1 Upholding the bottom line and fortifying the security
S4.2.1-4..2.5
barrier
Low-Carbon Development Addressing Climate Change E1.1.1-1.1.5
Practice
Ecological Environmental management to strictly control pollution
Operation performance E2.1.1E2.1.3E2.1.5-2.1.7E2.2.1E2.2.3E2.2.5-2.2.7Excellence emissions
and Create a Clean production to reduce resource consumption E3.1.1E3.1.4-3.1.5E3.2.1E3.2.3-3.2.4E3.3.2
Indicator Unit 2023 2024 2025 Green Resource
Landscape Ecological restoration to reshape the mining area
E2.3.1-2.3.3
landscape
Operation performance
Innovation-driven stimulating technological vitality S2.1.1-2.1.4S2.1.6S2.1.12-2.1.13
Copper production Ten thousand t 2.4 2.5 2.5
Leading value Mutual benefit and win-win cooperation building a
innovation sharing S3.1.1-3.1.4responsibility chain
Magnetite production Ten thousand t 581.5 932.4 1125.0
and integrating a
better society People-oriented building a stage for growth S4.1.1S4.1.3-4.1.5S4.1.9S4.1.11-4.1.12S4.3.1-4.3.6
Vermiculite production Ten thousand t 16.9 16.3 10.6
Inclusiveness for a harmonious community S1.2.1S1.2.3S1.2.5-1.2.6
Total assets CNY 100 million 158.7 164.0 187.9 Future prospects A1
Operating revenue CNY 100 million 58.7 55.8 58.4 Key performance A2
Index of indicators A3
Income tax CNY 100 million 6.1 1.8 3.3 Annex
Report rating A5
Net profits CNY 100 million 9.1 5.7 5.7
Feedback A6
79 80Rating report Rating Report for the 2025 Environmental Social and Governance (ESG) Report of HBIS Resources Co. Ltd.
One-picture Guide
Upon the request of HBIS Resources Co. Ltd. for the third consecutive year the Chinese Expert Committee on CSR Report Rating invited experts to form a
One-picture Guide to the 2025 Environmental Social and Governance (ESG) Report of HBIS Resources Co. Ltd.Rating Report rating panel to rate the 2025 Environmental Social and Governance (ESG) Report of HBIS Resources Co. Ltd. (hereinafter referred to as “the Report”).I. Rating Result
I. Rating Criteria Performance" section at the beginning of each chapter allows readers to quickly grasp
key data improving the report's readability; the inclusion of "Knowledge Tips" interprets
1. The Corporate Sustainability Disclosure Guidelines - Basic Guidelines (Trial); industry-specific terminology enhancing the report's communication effectiveness
Rating Result Rating Illustration Development Level 2. Guidelines No. 17 of the Shenzhen Stock Exchange for the Self-regulation — with outstanding readability performance.Sustainability Report (Trial);
The 2025 Environmental Innovation (★★★★★ )
Rating Result ★★★★★ + 3. Guidelines for the Sustainable Development Report of Chinese Enterprises (CASS-ESG Model
Social and Governance (ESG) 6.0) - Ferrous Metal Mining and Processing Industry
4. Rating Standards for Corporate Social Sustainability Reporting in China (2026). The Report opens with special responsibility sections titled "Ensuring High-quality
Report of HBIS Resources Five-star ★★★★★ Outstanding Ore Supply and Enhancing Global Industrial Resilience" and "Collaborating on the Co-
Co. Ltd. (hereinafter II. Rating Analysis construction of the 'Belt and Road' and Reaping Fruits of China-Africa Cooperation"
showcasing the company's actions and achievements in global industrial development
referred to as the Report) is Four-and-a-half-star ★★★★☆ Leading and the co-construction of the "Belt and Road" and highlighting its sense of
awarded a five-star rating. It Process (★★★★☆ ) responsibility; the Report presents the company's characteristic responsibility
is an outstanding corporate Four-star ★★★★ Excellent performance in social contributions and biodiversity conservation in South Africa. The ESG Management Committee takes the lead in coordinating and advancing the Rich cases and images are used to present the company's in-depth China-Africa
sustainability report. report compilation work supervises the overall direction and key aspects of the report cooperation achievements to the public demonstrating creativity. It actively responds
Three-star ★★★ Good with the final approval by the Board of Directors; conducts preliminary research to international standards and regulatory requirements and discloses issues such
for report compilation constructs a sustainability indicator system establishes a as addressing climate change in accordance with the "governance strategy risk and
comprehensive ESG governance architecture and institutional system to enhance
Two-star ★★ Developing opportunity management indicators and targets" four-pillar framework enhancing sustainable development management; develops a l ist for collecting existing the standardization of information disclosure and demonstrating outstanding
quantitative and qualitative data for the report holds the report compilation kick-off innovativeness performance.One-star ★ Beginning meeting to comprehensively gather report materials; promotes the establishment by
subsidiaries of management systems covering ESG issues related to safety health
environment and quality based on the safety health environment and quality (SHEQ) III. Comprehensive Rating (★★★★★ )
management system and compiles and releases the annual ESG report to strengthen
According to the assessment of the rating panel the 2025 Environmental Social and
II. Highlight Performance vertical sustainability management; plans to release the report through channels such
as the Company's official website and stock exchange website in formats including Governance (ESG) Report of HBIS Resources Co. Ltd. is awarded a five-star rating. It is
Chinese and English versions printed copies electronic versions and a "one-picture an outstanding corporate sustainability report.
100% 100% 100% 100% 100% 100% 100% 100% 100% guide" version. The performance in the process is leading.
Process ★★★★☆ Materiality ( ) Rating Result Rating Illustration Development Level★★★★★
Materiality ★★★★★ 6 groups 11 groups The Report systematically discloses key issues in the ferrous metal mining and Rating Result ★★★★★ + Model
processing industry such as addressing climate change pollutant emissions
Integrity Water resource ★★★★☆ Employee rights biodiversity and land use water resource utilization (water scarcity) improving mining utilization protection Five-star Outstandingrecovery and processing efficiency intelligent mining sustainable supply chains ★★★★★
safety and quality of products and services occupational health and work safety
Balance ★★★★☆ sustainable governance mechanisms and anti-commercial bribery and anti-corruption. Four-and-a-half-star ★★★★☆ Leading
The descriptions are detailed and comprehensive with the most extensive coverage
Comparability ★★★★★ 2 groups for biodiversity and land use occupational health and work safety and sustainable governance mechanisms spanning 6 pages 4 pages and 4 pages respectively Four-star ★★★★ Excellent
demonstrating outstanding materiality performance.Readability ★★★★★ Communication with Three-star ★★★ Good
stakeholders Integrity (★★★★☆ )
Innovation ★★★★★ The Report systematically discloses 80.34% of
Two-star ★★ Developing
the core indicators in the ferrous metal mining The main body of the Report systematically discloses 80.34% of the core indicators in
The Report discloses the comparative data of the ferrous metal mining and processing industry from perspectives such as "Deepen
and processing industry with the highest
62 key indicators for 3 consecutive years in Overseas Ventures and Build a Solid Foundation for Stable Operation" "Practice One-star ★ BeginningThe materiality comparability readability and coverage rates of 100% for core indicators Ecological Excellence and Create a Green Resource Landscape" and "Leading Value
innovation aspects of the Report all achieved a detail with the most comprehensive disclosure in the environmental dimension regarding Innovation Sharing and Integrating a Better Society" with the highest coverage rates
five-star rating while the process integrity and of comparable data for 3 consecutive years in of 100% for core indicators in the environmental dimension regarding environmental IV. Improvement Suggestionsenvironmental compliance management and
the environmental dimension regarding water compliance management and energy utilization; in the social dimension regarding balance achieved a four-and-a-half-star rating. energy utilization; in the social dimension safety and quality of products and services data security and customer privacy Add the disclosure of core indicators under issues such as waste disposal and
resource utilization; in the social dimension protection occupational health and work safety and career development and training;
regarding safety and quality of products and innovation-driven to further improve the integrity of the Report.regarding employee rights protection; and in the and in the governance dimension regarding communication with stakeholders anti-
services data security and customer privacy commercial bribery and anti-corruption and anti-unfair competition demonstrating
governance dimension regarding communication V. Rating Medal
protection occupational health and work safety leading integrity performance.with stakeholders.and career development and training; and in the HBIS Resources Co. Ltd. has participated in the report rating for 3 consecutive years Balance (★★★★☆ ) has gained the five-star evaluation for 2 consecutive years and has been awarded the
governance dimension regarding communication Bronze Medal.with stakeholders anti-commercial bribery and The Report discloses negative data such as "number of work safety accidents"
"employee turnover rate" "number of work-related injuries" and "number of workdays Trend of Report Ratings
anti-corruption and anti-unfair competition. lost due to work-related injuries" and briefly describes situations such as "no incidents
Five-star Five-star
III. Improvement Suggestions of commercial corruption or unfair competition" and "no liability incidents related to products and services" with leading balance performance.Four-and-a-half-star
Comparability (★★★★★ )
Add the disclosure of core indicators under issues such as waste disposal and innovation-driven to further improve the integrity of the Report.The Report discloses the comparative data of 62 key indicators for 3 consecutive
years in detail such as "total assets" "attendance rate of directors at shareholders'
HBIS Resources has
meetings" "employee training investment" "customer satisfaction" "environmental participated in the report rating for 3 consecutive years
IV Rating Medal protection investment" "emissions of greenhouse gas in Scope 1"， with the mostcomprehensive disclosures of comparative data for 3 years in the environmental
Trend of Report Ratings dimension regarding water resource utilization; in the social dimension regarding
202320242025
HBIS Resources Co. Ltd. has participated in the report employee rights protection; and in the governance dimension regarding communication
with stakeholders involving 6 11 and 2 groups of data respectively. It also conducts
rating for 3 consecutive years has gained the five-
Five-star Five-star horizontal comparisons through indicators such as "Ranked 15th on the ‘ESG Pioneer
star evaluation for 2 consecutive years and has been Top 100 Listed Companies in China’(2025)" with excellent comparability performance.awarded the Bronze Medal. Four-and-a-half-star
Readability (★★★★★ ) Vice Chairman of China Expert
Committee on CSR Report Rating Date of Issuance:
The Report adopts an ESG-based framework structure comprehensively elaborating April 24 2026
HBIS Resources has participated in on the company's annual responsibility performance and achievements across
the report rating for 3 consecutive
years three chapters with a clear framework and highlighted key issues; the cover design
highlights the industry characteristics of the company and incorporates elements of its Scan the code to Panel Leader Panel Expert
main business enhancing the report's recognizability; the "2025 Annual Responsibility view the rating file
8120232024202582
Anti-unfair competition
Anti-commercial bribery
and anti-corruption
Communication with
stakeholders
Career development
and training
Occupational health
and work safety
Data security and customer
privacy protection
Product and service
safety and quality
Energy use
Environmental
compliance managementHBIS Resources Co. Ltd.Feedback
Dear readers:
What is your overall assessment of our performance in fulfilling
Thank you very much for reading this report. We highly ESG responsibilities
value and look forward to hearing your feedback
Excellent Good Average Poor Very Poor
on this report. Your opinions and suggestions are
an important basis for us to continuously improve
our ESG information disclosure and advance our
Your opinion on this report
ESG management and practices. We welcome and
sincerely appreciate your valuable input! Excellent Good Average Poor Very Poor
How do you think we have performed in terms of stakeholder
You can contact us through the following ways: communication
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Address： No. 385 South Tiyu Street Shijiazhuang
Hebei Province
How do you evaluate our performance in product responsibility
Tel.： 0311-66500923
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Email： xgdsb@sina.com
What is your assessment of our efforts in environmental
protection safety and occupational health
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How do you perceive our performance in employee responsibility
Excellent Good Average Poor Very Poor
What is your opinion on our community responsibility initiatives
Excellent Good Average Poor Very Poor
Do you have any comments or suggestions regarding our
fulfillment of ESG responsibilities and this report
83 84Address: No. 385 Tiyu South Street Shijiazhuang Hebei
ChinaTel:0311-66500923 Measures taken to protect environment during publication
Fax:0311-66508734 Paper:Environmentally friendly paper is used for printing the Report.E-mail: xgdsb@sina.com Ink: Environmentally friendly ink is used to reduce air pollution.
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