2023 ESG Report
Environmental Protection Of Mining Win-win CooperationCONTENTS
About this Report 01 Chairman’s Message 03 Annual ESG Compliance Highlights 05
01030507
About Dazhong Mining 07 Responsibility for Governance 29 To Be a Safety Benchmark 61 To Be a Social Duty Bearer 91
1.1 Company Profile 09 3.1 Governance System and Mechanisms 31 5.1 Safety Management System 64 7.1 Win-Win Development of Industry Chain 94
1.2 Development System 11 3.2 Leadership in CPC Construction 33 5.2 Quality Management System 68 7.2 Promotion of Common Prosperity 95
1.3 Business Conditions 13 3.3 Diversity Management 33 5.3 Construction of Smart Mines 69 7.3 Responding to the Belt and Road Initiative 98
1.4 Industry Chain 14 3.4 Compliance Management 35 5.4 Construction of Safe Mines 73
1.5 Honors 17 3.5 Business Ethics 37
020406
ESG Management 19 To Be a Green Pioneer 41 To Be A Responsible Employer 75
Appendixes 99
2.1 ESG Objectives and Strategie 21 4.1 Environmental Management System 44 6.1 Talent Management System 78 Comments & Feedback 108
2.2 ESG Management Structure 23 4.2 Water Management 49 6.2 Employee Rights and Interests 80
2.3 ESG Risk Management 24 4.3 Pollutant Management 51 6.3 Promoting Employee Development 85
2.4 Stakeholder Communication 25 4.4 Climate Change Management 55 6.4 Creating a Happy Mine 89
2.5 Material Topics 26 4.5 Construction of Green Mines 5701 2023 ESG Report 2023 ESG Report 02
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.About this Report
☆Reliability assurance
Introduction The Company guarantees that there are no false records misleading statements or material omissions in this ☆
Report.This is the first Environmental Social and Governance Report (hereinafter referred to as the "ESG Report") issued
by Inner Mongolia Dazhong Mining Co. Ltd. and discloses the Company's ongoing efforts and achievements in
actively responding to the opportunities and challenges of sustainable development and integrating ESG ☆Acquisition channel
development into the Company's operations and management. This Report can be viewed and downloaded from the Company's official website (http://www.dzgf.com/) or
the website of the Shenzhen Stock Exchange.☆Time range
January 1 2023 to December 31 2023 with portions retroactive to prior years. ☆Report feedback & Contacts
Contact person: LIN Puzheng (Secretary)
☆Coverage Contact address: Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining No. 55 China
Inner Mongolia Dazhong Mining Co. Ltd. and its subsidiaries Company website: http://www.dzgf.com/
Email: info@dzky.cn
☆Release date Tel: 0472-5216664
March 18 2024
☆Reporting period
The present report is an annual report.☆References
This report was prepared in accordance with the Shenzhen Stock Exchange Social Responsibility Instructions to
Listed Companies and Annex I Requirements for Disclosure of Social Responsibility Reports of Listed Companies of the
Shenzhen Stock Exchange Listed Companies Business Handling Guideline No. 2 - Matters Relating to Disclosure of
Periodic Reports.The Report has been prepared with primary reference to the following standards:
United Nations Sustainable Development Goals (SDGs);
Global Reporting Initiative (GRI): Sustainability Reporting Standards (GRI Standards);
International Organization for Standardization (ISO): ISO 26000: Guidelines for Social Responsibility (2010);
China's national standard: Guidance on social responsibility reporting (GB/T 36001-2015);
China Corporate Social Responsibility Reporting Guidelines (CASS-ESG 5.0) by the ESG Expert Committee of China
Social Responsibility 100 Forum.☆Sources of information
The data is derived from internal documents and relevant statistical data of Inner Mongolia Dazhong Mining
Co. Ltd. and partly from third-party data.☆Title of the Report
In this report "Dazhong Mining" "the Company" and "we" refer to Inner Mongolia Dazhong Mining Co. Ltd.03 2023 ESG Report 2023 ESG Report 024
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.Chairman’s Message
Mineral resource is an important material basis for economic and social development and the development The journey starts from the cloud and travels far from here. Looking ahead to the new year we will continue to
of the mining industry has a bearing on national economic development. With the gradual deepening of global forge ahead deepening and fulfilling our commitment to ESG. We will solidify our internal strengths enhance
carbon emission reduction and the steady advancement of China's "carbon peaking and carbon neutrality our governance capacity improve operational efficiency strengthen the cultivation of high-quality talents with
goals" the demand for strategic mineral resources related to new energy and new materials continues to grow the courage to strive and take responsibility and make the corporate colors of green mines intelligent mines
and the pace of the transformation and upgrading of the mining industry in terms of low-carbonization and and safe mines brighter with high-technology and informationization as the driving force. We will adhere to the
intellectualization is accelerated. Therefore building green mines and intelligent mines has become an import- public welfare road of co-development with the region win-win with partners and progress with the society to
ant issue for the high-quality development and sustainable development of the mining industry. Thus ESG create more value for all stakeholders and contribute to the development of the industry and society.development has become an inevitable path for the high-quality sustainable blueprint of the mining industry.Dazhong Mining has been ranked among the "Top 50 Metallurgical Mining Enterprises in China" for many
consecutive years. Since our establishment we have firmly established the concept of responsible enterprise
and adhered to the corporate culture of "environmental protection first and follow green development". We
constructed green mines intelligent mines and safe mines and shared the wealth with our employees part-
ners and the region to create a benchmark for shouldering social responsibility in the industry. In 2023 we
grasped the new trend of industry development. We benchmarked against the United Nations Sustainable
Development Goals domestic and international ESG standards and rating indicators combined with our devel-
opment goals and strategies and experience in social responsibility practices comprehensively created an
ESG system formulated ESG goals and strategies built an ESG management structure and strengthened ESG
risk management and control. We aim to integrate ESG development with enterprise operation and develop-
ment in depth coordinate and comprehensively promote ESG and thus promote the building of long-term
enterprise value with ESG development.We persist in optimizing corporate governance targeting strategic mineral resources and successfully laying
out lithium carbonate mining processing and metallurgy. We further improve the environmental management
system safety management system and quality management system and interpret the mission and principle
of "nature first environmental protection first" and "life first safety first" with practical actions. The Company's
four main mines are national green mines of which two are national AAA-level tourist attractions namely the
Iron Mine Cultural Park of Anhui Jinrisheng Company under Dazhong Mining and the Dazhong Mining Industrial
Tourism Scenic Spot. With the goal of common prosperity we join hands with our partners to promote the intel-
ligent and low-carbon development of the industry and achieve value co-creation and sharing; we continue
to create employment opportunities and economic benefits for the local communities and residents; and we Guofeng NIU Chairman of Inner Mongolia Dazhong Mining Co. Ltd.take on our social responsibilities and sustain a leading role in the industry in the areas of rural revitalization
charitable donations public welfare activities etc. We won the "Kumquat Award - Pioneer Listed Company in
the ESG Era" the "China Red Cross Medal of Universal Love" the "2023 Advanced Group of Public Welfare and
Charity" the "Healthy Enterprise" etc. demonstrating the achievements of our ESG development. These are
highly recognized by the industry society and the public as well as urge and encourage our future develop-
ment.051 2023 ESG Report 2023 ESG Report 062
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.Annual ESG Compliance Highlights
E: Environmental Performance S: Social Responsibility Performance G: Corporate Governance Performance
Dazhong Mining had no environmental emergencies or In 2023 there were 1229 new employees of which 13th place in "Top 50 Metallurgical Mining Adhering to the leadership of the CPC the company
environmental events that were subject to state admin- 1043 were recruited from the society and 87 were Enterprises in China" by Metallurgical Mining held the annual party congress for 4 times.istrative penalties. graduates. Association of China Member.Achieved operating income of CNY 4.003 billion net
Annual environmental protection investment of CNY The labor contract signing rate is 100% and the Establishment of ESG management system and profit attributable to sharehold- ers of CNY 1.141billion
172.5 million. incidence rate of child labor and forced labor is 0. mechanism.
The Company strictly fulfills its disclosure obligations
The comprehensive environmental protection inspec- The total annual employee training hours were The Company held 7 general meetings of sharehold- and enhances the depth and breadth of voluntary
tion was carried out 31 times the special environmen- 16576.83 hours and the average annual training ers 21 board meetings and 13 supervisory board information disclosure with 156 announcements and
tal protection inspection was carried out 29 times and hours for a single employee was 4.3 hours. meetings. 87 documents on the Internet during the year.the rectification rate reached 100%.Continuous employee support and care The Company accepted investor investigations 6 The Company has strengthened its supplier manage-
times and replied to SZSE Interactive Ease questions ment by incorporating ESG factors into
The total water intake was 2193900 tons in 2023 158 times with a response rate of 94.05%. its supplier access and evaluation
The Company successfully landed a lithium proj-
achieving recycling of wastewater without external dis- ect system with 516 qualified suppliers by the end of in Linwu County Chenzhou City Hunan Province
charge. During the reporting period there were no inci- 2023.China and completed the signing of "three sets of
TBMs" dents in which the Company was penalized for vio- and strategic cooperation with China Railway
lating the Anti-monopoly Law of the People's Republic of
The general solid waste utilization rate was 100%; the Engineering Equipment Group Co. Ltd. which firstly ap- The number of incidents in which penalties were im-
China and the Anti-Unfair Competition Law of the People's
hazardous waste compliance rate was 100%. plied to lithium mine in China. posed for publicity violations during the year was 0.Republic of China.The four major mines are all national green mines; the During the year the Company successfully incorpo- To enhance security management the Company
Iron Mine Cultural Park of Anhui Jinrisheng Company rated Dazhong Singapore Company and conducted 78 emergency safety drills.under Dazhong Mining and the Dazhong Mining Industrial the newly-established company received the first inter-
Tourism Scenic Spot were assessed as national national trade order of iron ore.AAA-level tourist attractions.The Company continues to create economic benefits for
its region leading the development of industries in neigh-
boring regions.The Company was awarded the "China Red Cross
Fraternity Medal" by the Red Cross Society of
China the "2023 Advanced Group of Public
Welfare and Charity" by the Bayannur Charity
Federation of Inner Mongolia Autonomous Region and the
first batch of "Healthy Enterprises" in Bayannur
Inner Mongolia in 2023.017 2023 ESG Report 2023 ESG Report 028
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
01
About Dazhong Mining
1.1 Company Profile
1.2 Development System
1.3 Business Conditions
1.4 Industry Chain
1.5 Honors019 2023 ESG Report 2023 ESG Report 1002
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
1.1 Company Profile Main Business Layout and Advantages
Inner Mongolia Dazhong Mining Co. Ltd. (hereinafter referred to as "Dazhong Mining"; stock code: 001203. SZ) is
formerly known as Inner Mongolia Dazhong Mining Limited Liability Company. The Company was established on Main business: Iron ore mining
October 29 1999 and changed to a joint-stock company by Dazhong Limited on May 29 2009 and was officially
listed on the main board of the Shenzhen Stock Exchange on May 10 2021. During the reporting period changes in Iron ore business
the legal representative business scope and registered capital were conducted.Owns two iron mine production bases
Legal representative: Pusheng LIN
Inner Mongolia Anhui Province
Before change After change
CNY 1508000000 Registered capital CNY 1508021588
Reserve advantage
Iron ore reserves filed in the Ministry of Land and Resources
1508000000 shares Capital stock 1508021588 shares 516 Sulfurous iron ore reserves: 70.8541 million tonsof the People's Republic of China: million tons
Licensed items: mineral resources (non-coal mines) Business Licensed items: non-coal mining mineral resources
mining; road management and maintenance; road scope mining. General items: mineral processing; metal ore Excellent quality of iron ore
cargo transportation (excluding dangerous goods). sales; metal products sales; non-metallic minerals
General items: mineral processing; metal ore sales; and products sales; tourist attraction management; The average grade of TFe not less than 28.87% of the mineral resources: ≥80%
metal materials sales; metal products sales; mineral import and export of goods; construction materials
washing and processing; non-metallic minerals and sales; construction stone processing.products sales; ferrous metal casting; tourist attrac- Layout of new energy mineral resources and development of new energy business in lithium mining
tions management; import and export of goods;
construction materials sales; construction stone pro- 2022
cessing; construction engineering machinery sales; Enter the lithium new energy industry
mining machinery sales.
2023
The company has been awarded "Top Metallurgical Mining Enterprises in China" by the China Metallurgical Mining Enter- Accelerate the layout
prises Association for many consecutive years and ranked th among the "Top Metallurgical Mining Enterprises in
China in " which is places higher than before.On March 8 On April 10 From August to October
The business scope of the company is the solid mineral resources mining industry. Its main business is iron ore mining
production and sales of iron ore concentrate and pellets and processing and sales of mechanism sand and gravel as The Company's lithium mining The Company obtained the con- The Company obtained the pros-
by-products. Its main products are iron ore concentrate and pellets. The company has two iron ore production bases in Inner and lithium carbonate processing trol right of lithium polymetallic pecting right of Jiada Lithium
Mongolia and Anhui Province with the advantage of rich mineral resources and mining technology accumulated over the project in Linwu County Chenzhou mineral resources in the Jijiaoshan Mine through an auct ion on
years. It is a large-scale iron ore mining and processing enterprise in China. City Hunan Province was listed as Mining Area of L inwu County August 13 and completed the
one of the key construction proj- through auct ion and l i th ium payment of all auction prices on
Under the background of "implementing dual-carbon policy and promoting green development" the Company chose to ects in Hunan Province. exploration mining selection and October 13 as scheduled. The
metallurgy-related works are un- project is estimated to have an
enter the lithium new energy industry to resist the cyclical risk of the iron ore industry and enhance the company's profitability.derway. ore volume of about 120 million
In 2023 the Company acquired the control right of lithium-bearing polymetallic mineral resources in the Jijiaoshan Mining tons with an average grade of
Area in Linwu County Hunan Province and the prospecting right of the Jiada Lithium Mine in Sichuan Province through an 1.26% lithium oxide and has the
auction which provided strong support for the Company's new energy transformation. The Company is actively promoting potential of super-large lithium
the administrative licensing procedures of the relevant projects to lay the foundation for the implementation and construc- pyroxene mineral reserves.tion of the projects.101 2023 ESG Report 2023 ESG Report 102
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
1.2 Development System Objectives
Dazhong Mining adheres to the company's long-term sustainable development as the guide and "to be a mining group
recognized by employees well-known in the industry and respected by the society" as the company's development vision Persist in industry and stay true to the original aspiration
deeply plowing into the main business of iron ore. Based on its advantages in mining processing and metallurgy the Com-
Industry is the root of national prosperity! The industrial prosperity of Dazhong Mining contributes to the prosperity of
pany continues to explore opportunities of the new energy industry of "decarbonization" and actively lays out new energy China! We take the Company's development vision as the long-term goal adhere to the concept of industrial develop-
mineral resources such as lithium expanding its new energy business. The Company has set clear development goals and ment and always take innovation as the important hand. By introducing a new management model we advocate a new
directions from the top level and constructed a complete cultural value system to promote the development of the Compa- corporate culture of "happy work happy life". We reform and implement the partnership system and promote "everyone
ny from the two strategic levels of "endogenous growth" and "external expansion". is an operator everyone is a partner" in the company. We develop together with our employees and contribute value to
our employees the industry the industrial chain and the society while realizing our value.Adhering to the innovation drive innovating management and business models and leading
Development vision the digitalization and upgrading of industries
We always take innovation as the engine to drive the development of the enterprise and reconstruct the enterprise oper-
To be a mining group recognized by employees well-known in the industry and respected by the society. ation and management mode with the Internet thinking to help the operation and management level continue to
improve. We actively embrace new technologies such as big data cloud computing and artificial intelligence to digitally
upgrade and transform the production sales supply chain of the enterprise. We explore new ways such as Internet
platforms and online and offline integration to innovate the business development model improve profitability and
expand development space thus to be the leader in the digital transformation and upgrading of the industry.Cultural value system Adhering to asset securitization leveraging capital and feeding industry
We take the road of integration of "capital" and "production" development adhere to the mode of industry-based
Enterprise spirit capitalized path to develop our industry. Steady promotion of capital specialized management and specialized invest-
ment We should widely communicate with the capital market industry benchmarking cultivate newcomers to the enter-
prise securities the introduction of partners leverage peer professionals master cutting-edge information and play the
Conquer difficulties and operate with innovation company's advantages in industrial operations to make up for the shortcomings of the capital operation jointly explore
and cultivate projects and jointly develop the capital market.Enterprise mission
Unswervingly support the leadership of the Communist Party of China and actively respond to General Secretary Strategies
Xi's call for the realization of the great rejuvenation of the "Chinese Dream" and work hard for it.Endogenous growth strategy Extensive expansion strategies
To enhance production capacity improve quali- To expand iron ore reserves and to develop new
ty reduce costs increase efficiency develop lithium ore energy industries through domestic
Buoyed by the rise of the new products and integrate resources on the and foreign acquisitions and mergers. We aim
Nature first Common wealth is Belt and Road Initiative basis of existing iron ore resources to achieve to build a leading domestic iron ore enterprise Life first
environmental the original to build a century-long stable growth in benefits thus consolidating the and a highly competitive new energy lithium safety first
protection first aspiration of greater China mining leading position in the private iron ore industry. mining enterprise.Dazhong Mining
company1013 2023 ESG Report 2023 ESG Report 0124
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
1.3 Business Conditions 1.4 Industry Chain
In 2023 the Company actively promoted the completion and commissioning of the expansion projects of the re-gathering 1.4.1 The iron ore industry chain
mine the Zhouyoufang Mine and the Guyang Mine. The Company's annual raw ore mining capacity was further increased
and the profitability was expected to grow further.The Company is currently at the forefront of the industry chain and its business at this stage involves iron ore mining the
production and sale of iron ore concentrate and pelletsand the processing and sale of mechanism sand and gravel as
by-products. We provide raw materials for the iron and steel industry thereby providing strong support for such industries as
After adjustment construction machinery automobile shipbuilding and light industry. China contributes the vast majority of the incremental
increase in global crude steel production and drives the continued strong global demand for iron ore. Currently the propor-
tion of steel used in construction in China has remained at 63-64% and steel used in the machinery industry has been at
19-20%.
CNY 4.003 billion Industry chain
CNY 1.141 billion an increase of
4.39% Pelletiz-
Iron ore
year-on-year Mining Exploitation Raw ore Washing ing/Sinter- Pig ironconcentrates
ing Smelting
Smelting
2023 Operating income 2023 Net owners' profits
attributable to the owners
of the parent company
Refining
Smelting Coarse pot Steel
rolling
Basic EPS
CNY 0.76/share
Net cash flow from operating activities
CNY 1.607 billion
Other industries
Petrochemical industry
Light industry
Shipbuilding industry
Automotive industry
Machinery industry
Construction industry0151 2023 ESG Report 2023 ESG Report 0126
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
1.4.2 Lithium industry chain
Salt
Lithium Translucent Lithium Lithium
lithium lake Geothermal Oilfield
Lithium is an important raw material for the new energy industry. China has a high dependence on external lithium resources feldspar mica clayfeldspar brine brine brine
including imported lithium pyroxene and carbonate. The Company is actively exploring the lithium mining industry contribut-
ing to the enhancement of lithium resources' self-sufficiency rate in China. The Company is at the forefront of the upstream
of the industry chain covering lithium mining mineral processing lithium salt preparation of the three major business
segments and the implementation of an integrated strategy. The main product is battery-grade lithium carbonate
by-products for feldspar powder and sodium sulfate. The Company has two lithium mines Hunan Jijiaoshan Lithium Mine
and Sichuan Jiada Lithium Mine respectively on the supply side with huge reserves of lithium resources. It is expected that Hardrock Lithium
the output of lithium powder can fully meet the demand for the production of lithium carbonate by self-mining. lithium brine
Lithium carbonate is the core raw material for both new energy vehicle power batteries and energy storage batteries and the
company's main products. The price fluctuations have a huge impact on the downstream enterprises and act as the main
component of the cost of lithium batteries. In 2023 the penetration rate of new energy vehicles in China exceeded 30% and
the development of the industry ushered in an accelerated period. According to the market mainstream organizations it is Lithium
expected that the average annual growth rate of the market demand for new energy vehicles will be maintained at more Waste battery recycling raw Pharmaceutical catalyst recycling
than 20% in the next five years. The accelerated layout of the Company in the lithium mining industry contributes to the stabil- materials
ity of the new energy vehicle power battery supply market in China reduces production costs and boosts the growth of new
energy vehicles and related industries in China.Industrial Industrial Other
-grade -grade
lithium lithium
Lithium Lithium
lithium compounds fluoride chloride
hydroxide carbonate
Battery Battery
-grade -grade Lithium
lithium lithium hexafluoro-
Lithium
metal Pharmacy
hydroxide carbonate phosphate
Anode Electrolyte Cathodematerials materials
Lithium battery
Energy storage New energy automobile Consumer electronics
Upstream Midstream Downstream2023 ESG Report 2023 ESG Report
1017 Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd. 1082
1.5 Honors
1.5.1 Honors related to ESG 1.5.3 Company qualification
2023 "Kumquat Award - Pioneering Listed Companies in the ESG Era" The Company and Anhui Jinrisheng Mining Co. Ltd. are both high-tech enterprises. "China Red Cross Fraternity Medal" by the Red Cross Society of China The Shujigou Iron Mine and Dongwufenzi Iron Mine have been successively recognized as "the Second Batch of National
"2023 Advanced Group of Public Welfare and Charity" by the Bayannur Charity Federation of Inner Green Mine Pilot Units" and "the Fourth Batch of National Green Mine Pilot Units" and both of them have been recog-
Mongolia Autonomous Region nized as "National Green Mines" by the Ministry of Land and Resources of the People's Republic of China. The first batch of "Healthy Enterprises" in Bayannur Inner Mongolia in 2023 The Technology Center of Inner Mongolia Dazhong Mining Co. Ltd. obtained the certification of Enterprise Technology
The Hunan Lithium New Energy Project of Dazhong Mining was listed as one of the "Key Construction Center of Inner Mongolia Autonomous Region.Projects in the Hunan Province in 2023" by the General Office of Hunan Provincial Government. Anhui Jinrisheng Mining Co. Ltd. was included in the List of Green Factories (the third batch) of Lu'an City Anhui
Dazhong Mining was awarded a "Class A Taxpayer in Tax Credit Rating" by the Urad Front Banner Tax Province.Bureau of the State Administration of Taxation for three consecutive years from 2020 to 2022. The Iron Mine Cultural Park of Anhui Jinrisheng Company under Dazhong Mining and the Dazhong Mining Industrial
It was recognized as a science popularization and demonstration base in Inner Mongolia by the Depart Tourism Scenic Spot were assessed as national AAA-level tourist attractions.ment of Science and Technology of the Inner Mongolia Autonomous Region. "Energy Innovation Pioneer Enterprise" by China Energy News and China Energy Economics Research
Institute (2021)
The labor unions of the mining sites of the Company and Anhui Jinrisheng Mining Co. Ltd. were both
awarded the title of "National Model Workers' Home" by the All-China Federation of Trade Unions
Awarded the title of "Workers' Vanguard" and "Top Ten Model Workers' Houses of Private Enterprises in
the Region" by the Federation of Trade Unions of Inner Mongolia
Top 50 Metallurgical Mining Enterprises in China in 2022 by China Metallurgical Mining Enterprises
Association
1.5.2 Honors for executives 1.5.4 Association qualification
Since 2018 LIANG Baodong Director of the Company has served as the "Vice Chairman of the Inner
Mongolia Democratic Revolution Entrepreneurs Association". Metallurgical China China All-China
Mining Non-Ferrous China Gold Urad Front
In August 2022 LIN Lairong the Actual Controller of the Company was elected as "Vice Chairman of the Aggregates Federation Association Metals Industry Association Banner Labor Association of Trade Unions
Federation of Industry and Commerce of Inner Mongolia Autonomous Region". of China Association Member Union Member Member Member
Member
In January 2023 LIN Pusheng Director and General Manager of the Company was elected as "Deputy to Member
the People's Congress of Inner Mongolia Autonomous Region".1091 2023 ESG Report 2023 ESG Report 0202
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
02
ESG Management
2.1 ESG Objectives and Strategie
2.2 ESG Management Structure
2.3 ESG Risk Management
2.4 Stakeholder Communication
2.5 Material Topics021 2023 ESG Report 2023 ESG Report 022
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
2.1 ESG Objectives and Strategies
Dazhong Mining has incorporated ESG management into its development and operational objectives. The development To Be a Safety Benchmark
system of Dazhong Mining shows that the Company's vision and objectives have taken ESG factors into full consideration and
it has formulated relevant strategies around ESG development. Adhere to the safety concept of "Life first safety first" uphold the
business purpose of safe production and implant safety
Company vision/ESG vision concepts safety thinking safety mentality safety knowledge
and safety skills into the corporate culture which is reflected in
the operation; correctly handle the relationship between safety
To be a mining group recognized by employees well-known in the industry and development adhere to the red line that development can
and respected by the society never be achieved at the expense of safety and implement safe
production; uphold the principle of "people-oriented safety first"
and give priority to solving safety issues supplying safety mate-
Planning rials and guaranteeing safety funds; increase investment in
safety to save manpower with mechanical and information
technology and enhance intrinsic safety; construct a safety
In 2025 it is planned to make two national AAA-level tourist attractions namely Dazhong
management system and improve safety with intelligent means
Mining Industrial Tourism Scenic Spot and Iron Mine Cultural Park of Anhui Jinrisheng Compa- and systematic management.ny under Dazhong Mining into national AAAA-level tourist attractions.Strategic performance dimensions
To Be a Responsible Employer
Responsibility for Governance Adhere to the concept of being people-oriented develop with
employees focus on staff training promote employee growth
Build a governance structure of three boards and one layer
activate employee motivation create value and share value with
establish and continuously improve the governance system
employees create favorable working conditions and atmo-
adhere to the leadership of the Party focus on the develop-
sphere for employees; care for employees' livelihoods solve
ment of the main business protect the rights and interests of
employee difficulties and create a happy mine.investors strengthen investor communication and exchanges
enhance the transparency of information disclosure and
safeguard the bottom line of business ethics.To Be a Green Pioneer
Adhere to the environmental protection concept of "Nature first To Be a Social Duty Bearer
environmental protection first" assume environmental respon-
sibility persist in industry create wealth and contribute to Adhere to the common prosperity continuously explore and
realizing the Chinese dream. Respect nature follow nature and innovate the development mode of common prosperity
protect nature. Fully implement the green mine development promote the common development of the enterprise and the
strategy and strive to build a tourist-oriented mine. The Com- community and the common prosperity of the region serve the
pany respects conforms to and protects nature integrating Belt and Road Initiative and positively respond to public welfare
the responsibility of ecological construction and the awareness responsibilities to show the social responsibility of the Company.of environmental protection into its production structure and
mode.2031 2023 ESG Report 2023 ESG Report 2024
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
2.2 ESG Management Structure 2.3 ESG Risk Management
The Company has established a top-down ESG management structure under the leadership of the Board of Directors to The Company attaches great importance to ESG risk management by constructing an environmental management system
better coordinate guide and implement ESG-related matters. The Board of Directors of the Company is the highest a safety management system a quality management system a talent management system a supplier management
decision-making body for ESG responsible for reviewing and approving ESG strategies management policies and objec- system a corporate governance system etc. The Company identifies evaluates and systematically manages the major
tives and reviewing ESG-related matters. As of the date of disclosure of this Report the Company has upgraded the Strategy risks in environment social and governance and effectively guides and coordinates all departments and subsidiaries to
Committee under the Board of Directors to the Strategy and Sustainability Committee of Environmental Social and Gover- circumvent or reduce all kinds of ESG risks.nance (ESG) which is responsible for formulating and promoting ESG strategies management policies and objectives
supervising the implementation of ESG strategies and objectives as well as the implementation of ESG-related investments
and other ESG-related matters; and has established the ESG Working Group which is led by the Secretary of the Board of
Directors and is under the responsibility of the Securities Department for the overall co-ordination guidance and implemen-
tation of ESG strategies objectives and plans formulated by the Board of Directors and the ESG Committee as well as
ESG-related matters issued by the committees under the Board of Directors to contribute to the continuous improvement of
the Company's ESG performance the Group's functional departments and subsidiaries in strict accordance with the ESG
strategy objectives and plans and to incorporate and implement ESG tasks into the daily operation.Environmental
ESG Management Structure of the Company Management
System
Board of Directors
Safety
Board of Corporate
Directors Governance Management
System System
Strategy and Sustainability Audit Nomination Remuneration and
Committee of Environmental Committee Committee Evaluation Committee
Social and Governance (ESG) Esg
Risk Management
System
ESG working groups Executives Supplier Quality
Management Management
System System
Functional departments Subsidiaries
Talent
… … Management
System
Sichuan Dazhonghe
Lithium Industry Co. Ltd.Hunan Dazhonghe Lithium
Mining Co. Ltd.Anhui Jinrisheng
Mining Co. Ltd.Inner Mongolia Dazhong
Mining Co. Ltd.Bidding and Procurement
Department
Management and
Control Department
Safety and Environmental
Protection Department
Party Administration
Department
Planning Engineering and
Construction Department
Security Department
Human Resources
Department2051 2023 ESG Report 2023 ESG Report 0226
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
2.4 Stakeholder Communication 2.5 Material Topics
The Company highly respects the demands of stakeholders and has established a regular communication mechanism with 2.5.1 Analysis of material topics
stakeholders based on the principles of honesty interaction equality and transparency. Through diversified communication
methods the Company continuously discovers the concerns and demands of stakeholders which serves as an important basis
for the Company in determining the material topics and formulating the ESG strategies and carries out the performance of its The Company has formed a complete material topics assessment process which benchmarks international and domestic
responsibilities around the substantive issues and following the ESG strategies and continuously responds to the concerns and standards and combines the concerns of stakeholders to identify ESG material topics integrate stakeholders and their concerns
demands of stakeholders to enable stakeholders to participate in the Company's ESG governance. into operations and decision-making and incorporate relevant issues into actual ESG work thereby realizing the combination of
ESG and daily operations.Stakeholders Focus Communication
Performance robustness Step 1
Shareholder returns General Meeting of Shareholders
Completeness of disclosure Performance briefing Establish a database of material issuesShareholders and Open investor communication
investors Information disclosureCompliance We identify material issues in multiple dimensions and establish a database of issues by combining national policies and Investor exchange platform
Sustainability industry development trends benchmarking against major international and domestic ESG rating standards based on our
Risk resilience own development goals and strategies.Satisfaction survey
Ore quality Customer visit
Customer Occupational Health and Safety Service hotline
Risk resilience After-sales service Step 2
Protection of rights and interests Employee Council Stakeholder research
Employee Compensation and benefits Employee complaint or feedback channels
Occupational health and safety Employee satisfaction survey Communicate with stakeholders internally and rely on internal departments to continuously discover the demands and
Equal rights and development Internal meetings concerns of external stakeholders and screen significant issues through questionnaires and regular communication summa-
ries.Legal business
Stock exchange meetings
Paying taxes in accordance with the law
Government and Government meetingsRegional development
regulatory authorities Information disclosure platformPolicy response
Government investigation visit and guidance
Social responsibility Step 3
Occupational health and safety Evaluation of material issues
Partners Business Ethics Strategic cooperation
Openness and transparency Supplier training and communication Evaluate the material issues combining the internal evaluation of the enterprise and the evaluation opinions of professional
Integrity and win-win organizations or experts in the field of ESG to screen out the material topics.Regional economic development
Community & Facilitating employment Community visits and exchanges
philanthropy/ Human rights protection Recruitment fair
social organizations Community development Cooperation with public welfare organizations
Public welfare development Step 4
Climate Change Mining construction Ranking and determination of material topics
Natural environment Water management Environmental protection cooperation
Biodiversity Environmental protection publicity Taking into account the Company's strategy and assessment opinions rank the importance of material topics and develop
Emissions management and implement action plans.ESG achievements Media communication
Media Brand reputation Official publicity
Omni-channel investor relations2017 2023 ESG Report 2023 ESG Report 0228
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
2.5.2 List of material topics
Content Issues Material topics management (presented in the Report) Content Issues Material topics management (presented in the Report)
Carbon emission 4.4.2 Low-carbon development Elimination of child and forced labor 6.2.1 Law-based employment
4.3.1 Prevention and management of air pollution Employee communication and
Atmospheric protection democratic management
6.2.6 Democratic management
4.5 Construction of green mines Product quality assurance 5.2 Quality management system
4.2 Water management 5.2 Quality management system
Water resource protection Technology and process innovation
4.5 Construction of green mines 5.3 Construction of smart mines
4.3.2 Prevention and management of waste 5.1 Safety management system
Waste management and recycling Safe production
4.5 Construction of green mines 5.4 Construction of safe mines
4.3.2 Prevention and management of waste Intelligent and digital transformation 5.3 Construction of smart mines
Management of hazardous waste
4.5 Construction of green mines S: Social Intellectual property protection 5.3.2 Intellectual property protection
management
4.5.1 Environmental management of construction projects Information security 5.3.3 Information security
E: Environmental Land resources protection 4.5.2 Land resources and ecological conservation Win-win cooperation 7.1 Win-Win development of industry chain
management
4.5 Construction of green mines Maintaining a favorable market environment 3.5.3 Anti-unfair competition
4.5.1 Environmental management of construction projects Charitable donations 7.2.2 Practicing public welfare responsibility
Ecological protection 4.5.2 Land resources and ecological conservation Regional development 7.2.1 Regional economic contribution
surrounding the mine 4.5 Construction of green mines Rural revitalization and common prosperity 7.2.2 Practicing public welfare responsibility
4.5.2 Land resources and ecological conservation 4.4 Climate change management
Biodiversity
4.5 Construction of green mines 4.5 Construction of green mines
Policy support and response
4.1 Environment management system 5.3 Construction of smart mines
Environmental compliance
4.5 Construction of green mines 7.3 Responding to the Belt and Road Initiative
Investment in environmental 4.1.2 Environmental protection facilities management 3.4.3 Investor returns
protection facilities and improvement Investor relation management
of processes 4.5 Construction of green mines 3.4.4 Investor communication
3.5.1 Supplier management Responsible purchasing 3.5.1 Supplier management
Occupational Health and Safety 5.4.1 Occupational health and safety management system G: Corporate 3.5.1 Supplier management
Governance Integrity management
5.4.2 Safety management training 3.5.2 Integrity management
S: Social Labor rights and interests 6.2 Employee rights and interests Information disclosure 3.4.1 Responsible disclosure
management
6.2.1 Law-based employment Compliance Management 3.4 Compliance Management
Diversity and equal opportunity 6.2.2 Diversity in employee structure
Very important Important Ordinary
6.3 Promoting employee development0219 2023 ESG Report 2023 ESG Report 0302
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
03
Responsibility for Governance
3.1 Governance System and Mechanisms
3.2 Leadership in CPC Construction
3.3 Diversity Management
3.4 Compliance Management
3.5 Business Ethics301 2023 ESG Report 2023 ESG Report 032
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
3.1 Governance System and Mechanisms
The Company has established a corporate governance organizational structure of "three boards and one layer" of share-
holders' meetings board of directors supervisory board and management layer with clear division of powers and respon- Operational norms of the three boards
sibilities and mutual supervision and constraints. The Board of Directors consists of the Audit Committee the Strategy and
Sustainability Committee of Environmental Social and Governance (ESG) the Nomination Committee and the Remunera- The Shareholders' General Meeting comprising all shareholders is the highest authority of the Com-
tion and Evaluation Committee. The Company has optimized and enhanced its governance. pany and is responsible for making decisions on the Company's major operational matters. During
Shareholders the reporting period the Company standardized the convening holding and voting procedures of
and Shareholders' the shareholders' general meeting to ensure that all shareholders had equal status and fully
General Meeting
Organizational Structure of the Company exercised their rights and ensured the legality of the convening holding and voting procedures of
the meeting by engaging lawyers to certify the legality of the convening holding and voting proce-
dures to safeguard the lawful rights and interests of the Company and the shareholders.General Meeting
of Shareholders Strategy and Sustainability Committee of
Supervisory Environmental Social and Governance (ESG) As the Company's operational decision-making body the Board of Directors is responsible for the
Committee
Nomination Committee General Meeting of Shareholders. The Board of Directors of the Company consists of seven directors
Secretary to with three independent directors. The Independent Directors of the Company can carry out their
the Board Board of Directors
Audit Committee Directors work in accordance with the Rules for Independent Directors of Listed Companies the Rules of Procedure
and Board of the Board of Directors the Working System of Independent Directors and other laws and regula-
of Directors
Remuneration and Evaluation Committee tions. In 2023 the Independent Directors of the Company issued 11 independent opinions and 2
pre-approval opinions on major matters of the Company throughout the year fully safeguarding
Chairman the legitimate rights and interests of the Company and its shareholders especially the small and
medium-sized shareholders.Finance director
General manager Chief engineer
Deputy general manager Supervisors The Supervisory Committee as a standing supervisory body of the Company performs supervisory
and Supervisory functions on behalf of the general meeting of shareholders. The Supervisory Board of the Company
Committee consists of three supervisors.In 2023
The Board of Directors The Supervisory Board
the General Meeting
held 21 meetings with an held 13 meetings with an
of Shareholders was
7 average attendance rate average attendance rate held times
of 100% for directors. of 100% for supervisors.The Company has formulated internal management-related systems such as the Information Disclosure Management
System the Management System for Informants of Insider Information the Investor Relationship Management System and the
Internal Reporting System for Material Information in strict accordance with the requirements of the Company Law the Securities
Law the Guidelines for the Governance of Listed Companies the Rules Governing the Listing of Stocks on the Shenzhen Stock
Exchange and other laws and regulations in order to continually improve the internal management and control system.Audit & Legal Departmen
Sales Department
Bidding and Procurement
Department
Management and
Control Department
Safety and Environmental
Protection Department
Party Administration
Planning Engineering and
Construction Department
Security Department
Resource Expansion
Capital Operation Department
Center
Investment and Financing Risk
Management Department
Financial Department
Industry and Financial
Sharing Department
Operation Management
Center Human Resources
Department
Operations Scheduling
Department3013 2023 ESG Report 2023 ESG Report 3024
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
3.2 Leadership in CPC Construction Guofeng NIU Age 47 Male Specialty：Finance economics management capital operations
Resume: From 2001 to 2009 he served as Assistant Director Director and Executive Director of the Investment Banking Headquarters of Guotai
Junan Securities. From 2009 to present he has been a Director of Zhongxing Group; from March 2011 to April 2020 he was the Secretary of the
As of the end of 2023 Board of Directors of the Company; from 2012 to 2013 he was in charge of the Company's Inner Mongolia Mines; from 2014 to 2016 he was
the Party Committee of Dazhong Mining has 1 basic Party committee concurrently the General Manager and the Chairman of the Board of Directors of Anhui Jinrisheng Mining Co. Ltd.; from 2017 to 2019 he was in
2 general Party branches and 16 Party branches. charge of the strategy financing and operation management of the Company and is currently the Chairman of the Company.
There were 254 Party members accounting for 6.66% of full-time employees.Currently there are 8 reserve Party members and 42 party activists among the employees. Baodong LIANG Age 53 Male Specialty：Economy management Professional title：Economist
The annual general meeting of Party members was held 4 times
Resume: From 1989 to 1994 he studied at Baotou Iron and Steel College. From 2002 to 2007 he studied at Peking University specializing in MBA
and the Chairman's Advanced Training Course on Management Philosophy and Corporate Strategy. From 1995 to 1998 he was the Director of
To promote the study and implementation of Xi Jinping's thought of the Baotou office of Wuhai Zhongxing Coal Co. Ltd. and participated in the founding of the Company's predecessor Dazhong Limited in 1999;
socialism with Chinese characteristics in the new era in private enter- he served as the Vice Chairman of the Company from May 2009 to July 2016 and the Chairman of the Board of Directors of the Company
prises on October 25 2023 the Party Committee of Dazhong Mining held from July 2016 to April 2020 and is currently a Director of the Company. LIANG is currently the Chairman of the Bayannur Mining Association of
the second phase of thematic study and training meeting on the theme Inner Mongolia and the Vice Chairman of the Inner Mongolia Democratic Revolutionary Entrepreneurs' Association.of education for studying and implementing Xi Jinping's thought of
socialism with Chinese characteristics in the new era. Members of the
General Party Branch of Inner Mongolia Dazhong the secretaries of Pusheng LIN Age 33 Male Specialty：Mining safety management
seven party branches and the secretaries of the General Party Branches
of subsidiaries attended this meeting. This special meeting conveyed Resume: He has served as an underground safety officer mining production staff technician dispatcher manager of the human resources
the theme education implementation plan emphasized the progress of department the director of operation center and the general director of the pellet project of Anhui Zhongsheng Metal Pellet Co. Ltd.; received
party-building tasks and objectives of each basic-level party organization and focused on studying the Regulations on the training at Jingye Iron and Steel Co. Ltd. and Sinosteel Trading Company Limited. He is currently the Director and General Manager of the
Education and Management of Party Members of the Communist Party of China. Company the General Manager of the Company's Pellet Branch the General Manager of Hunan Dazhonghe Lithium Mining Co. Ltd. the
Chairman of Inner Mongolia Jinhui Rare Ore Co. Ltd and the Director of Zhongxing Group Co. In January 2023 LIN Pusheng was elected as a
deputy to the People's Congress of the Inner Mongolia Autonomous Region.
3.3 Diversity Management Lixiang WANG Age 41 Female Specialty：：Accounting taxation Professional title：Certified Public Accountant
Senior Accountant Certified Tax Accountant
3.3.1 Diversity of the Board of Directors Resume: From 2004 to 2012 she served as a cashier accountant and treasurer of Inner Mongolia Xishui Venture Company Limited and its subsidiaries; from 2013 to 2017 she served as the finance manager of Inner Mongolia Division of Tomorrow Holding Company Limited; from 2017
The Company actively promotes diversity management of the Board of Directors by eliminating all discrimination on gender to 2019 she served as deputy director of finance of Zongxing Group Company Limited; from 2019 to 2020 she served as an accountant of
age religious beliefs ethnicity etc. and actively promotes gender equality focusing on diversity in the field of specialization Zhongxu Accounting Firm in Hohhot; from 2020 to present she served as a project partner of Inner Mongolia Zhonglu Huacai Accounting Firm
educational background knowledge reserve and skill level to enhance corporate decision-making and management. The (Special General Partnership). Currently she serves as an independent director of the Company.Board of Directors of the Company consists of seven directors with one female director accounting for 14.29%.Wenbing LU Age 56 Male Specialty：Economy investment management capital operation Professional title：Senior economist
Profile of Directors of Dazhong Mining in 2023
Resume: Famous entrepreneur and expert in enterprise capital operation and management in China He is currently the Chairman of Inner
Mongolia Minfeng Seed Co. Ltd. the Chairman of Inner Mongolia Yinshan Youmai Food Co. Ltd. the Chairman of Inner Mongolia Tengary Invest-
Lairong LIN Age Male Specialty:Economy mining management investment Professional title：Senior economist ment Co Ltd. Independent Director of Jinhe Biotechnology Co. Ltd. Independent Director of Inner Mongolia MengDian HuaNeng Thermal Power
Corporation Limited a member of the Executive Committee of the Inner Mongolia Federation of Industry and Commerce Vice Chairman of the
Resume: In 1995 he founded Wuhai Zhongxing Coal Co. Ltd. and served as the Chairman of the Board (later changed to INNER MONGOLIA
Ulanqab City Federation of Industry and Commerce Visiting Professor of Inner Mongolia University Visiting Professor of Inner Mongolia University
Wuhai Zhongxing Coal Group Co. Ltd.). In 1999 he founded the predecessor of the Company Dazhong Limited. He served as the Chairman of
of Finance and Economics and Visiting Professor of Inner Mongolia Agricultural University. He serves as the Vice President of Inner Mongolia
the Board of the Company from May 2009 to July 2016 and is currently a director of the Company. Lin Lairong was awarded by the Inner
Mengniu Dairy (Group) Co. Ltd. and CEO of Inner Mongolia Little-Sheep Catering Chain Co. Currently she serves as an independent director
Mongolia Wuhai City Government as "Wuhai City Ten Outstanding Young Entrepreneurs"; by the Inner Mongolia Autonomous Region Govern-
of the Company.ment as "Township Meritorious Entrepreneurs" and "Outstanding Township Entrepreneurs" for four consecutive years. In 2006 he was awarded
the "Eighth Ten Outstanding Youths of Inner Mongolia Autonomous Region" by the Organization Department of the Party Committee of the Inner
Mongolia Autonomous Region and other departments; in 2008 and 2010 he was awarded the "Integrity Character of Enterprises in Inner Yuan WEI Age 68 Male Specialty：Electrical power
Mongolia Autonomous Region" by the Propaganda Department of the Party Committee of the Inner Mongolia Autonomous Region the Financial
Affairs Office the Development and Reform Commission and other departments; and in 2013 he was awarded the "May 1st Labor Medal of the Resume: He served as the Deputy General Manager of Datang International Power Generation Co. Ltd. General Manager of Datang Huayin
whole region" by the Federation of Trade Unions of the Inner Mongolia Autonomous Region. In August 2022 he was elected as "Vice Chairman Electric Power LTD. Director of Tangshan Power Plant and Director of Qinhuangdao Thermal Power Plant. Currently she serves as an indepen-
of the Federation of Industry and Commerce of Inner Mongolia Autonomous Region". dent director of the Company.3015 2023 ESG Report 2023 ESG Report 0326
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
3.3.2 Diversity of operations 3.4.2 Strict internal control
The Board of Directors consists of the Audit Committee the Strategy and Sustainability Committee of Environmental Social The Company continuously improves its internal management system; refines various business processes and
and Governance (ESG) the Nomination Committee and the Remuneration and Evaluation Committee. The specialized management measures; formulates comprehensive and perfect business processes and management systems in
Committees are accountable to the Board of Directors and perform their duties following the Company's Articles of Incorpo- procurement sales engineering asset management capital management and investment management; and strictly
ration and the authorization of the Board of Directors and submit proposals to the Board of Directors for consideration and regulates the approval authority to avoid operational risks. In December 2023 the Company revised and issued the Articles
decision. The members of the specialized Committees are all directors with a majority of independent directors serving as of Association Rules of Procedure of the Board of Directors Rules of Procedure of the General Meeting of Shareholders Rules for the
convenors of the Audit Committee Nomination Committee and Remuneration and Evaluation Committee; the convenor of
Work of Independent Directors Management System for External Guarantees Management System for Connected Transactions and
the Audit Committee is an accounting professional among the independent directors and the members are directors who
other rules in accordance with the latest laws and regulations and the actual situation of the Company.do not serve as senior management of the Company. The Board of Directors is responsible for formulating the working
procedures of the specialized Committees and regulating the operation of the specialized Committees. The specialized
The scope of the Company's audit includes fund operation and management procurement and payment management
Committees perform their duties within their respective terms of reference.sales and collection management production process and cost control external investment management external guaran-
tee management. The Audit Committee of the Board of Directors considers and approves the Company's annual semi-an-
Specialized committees Responsibilities nual and quarterly internal audit work plans.It is responsible for reviewing the Company's financial information and its disclosure monitoring
Audit Committee and evaluating of internal and external audits and internal control and communication
between the internal and external audits. 3.4.3 Investor returns
It is responsible for conducting research and making recommendations on the Company's
The Company has actively rewarded its shareholders since
Strategy and Sustainability medium- and long-term development strategies and major investment decisions; responsible
Committee of Environmental for formulating and promoting ESG strategies management policies and objectives supervising
its listing and shared the operating results of the Company's
Social and Governance (ESG) the implementation of ESG strategies and objectives as well as the implementation of ESG-re-
development with them. The Company made two cash divi-
lated investments and other ESG-related matters. dends namely CNY 603 million in the half-year of 2021 and
CNY 447 million in 2022; the cumulative cash dividends
It is responsible for formulating criteria and procedures for the selection of candidates for amounted to CNY 1.05 billion and the ratio of dividends to net
Nomination Committee directors and senior management of the Company making selections and making recom- profit was 41%.mendations.To make investors feel more confident the Company has
It is responsible for formulating assessment standards for directors and senior management of invested a total of CNY 268 million in cash by the end of 2023
Remuneration and the Company and conducting the assessment; responsible for formulating and reviewing the to repurchase 21.0833 million shares of the Company ac-
Evaluation Committee remuneration policies and programs for directors and senior management of the Company. counting for 1.4% of the Company's current total share capital.
3.4 Compliance Management 3.4.4 Investor communication
3.4.1 Responsible disclosure The Company has established diversified investor communication channels both online and offline through regular perfor-mance briefings roadshow activities SZSE Interactive Ease investor calls and letters research activities to answer questions
During the reporting period and solve problems for investors promptly to convey the Company's value to fully protect the investors' right to know to keep
The Company has formulated relevant systems such as the Information
the Company issued 156 a detailed record of investor's opinions and suggestions and to report them to the management regularly.Disclosure Management System the Management System for Informants of
Insider Information the Investor Relationship Management System and the announcements and
Internal Reporting System for Material Information etc. and discloses informa- 87 documents on the
tion truthfully accurately completely and promptly in strict accordance Internet. Among them Year
with the requirements of the relevant laws and regulations and the Com- there were 4 periodic
pany's system to ensure that all shareholders have equal access to reports and 152 temporary
information. During the reporting period the Company voluntarily A total of 6 times to host investor investigations
disclosed the progress of major projects and favorable matters and took announcements. Responded to CSI The online The offline with a response
the initiative to improve the depth and breadth of voluntary information Interactive Ease
investigation rate of 94.05%.disclosure to provide sufficient information for investors' value judgment. investigation questions 158 times
The employees of the Securities Department of the Company proactively was 2 times was 4 times
participated in the training organized by the Shenzhen Stock Exchange
China Listing Association and Inner Mongolia Securities Regulatory Bureau
to enhance the professional level of information disclosure.0317 2023 ESG Report 2023 ESG Report 3028
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
3.5 Business Ethics
Supplier access management flowchart
3.5.1 Supplier management
The Company's suppliers include equipment and material suppliers and outsourced construction suppliers. The Company
has established relevant mechanisms and systems in the areas of supplier admission supplier procurement bidding suppli- E-commerce platform
Purchasing organiza- Group procurement
tion of each division organization Group leadership
er evaluation supplier management of which the equipment and material suppliers are controlled following the relevant
requirements of quality control and the outsourced construction suppliers have increased the management of safety.As of the end of 2023 Start Organization of
inspections
the Company had a total of At the beginning of the year 29 supplier violations (quality issues)
516 qualified suppliers were investigated and dealt with at a rate of 100%
Supplier Purchasing manager
self-nomination review propose
Basic information increase or decrease
collection
Review by Review by Group Audit by Group
Platform review purchasing leader Purchasing Purchasing
Manager Leader
Inclusion of Sign the trial
qualified suppliers contract and Unqualified
Implementation
of withdrawal
to the platform organize the trial procedures
Supplier admission
The Company adheres to the principles of "embracing openness and voluntariness competition and selection Qualified
transparency and fairness and control of the supplier size" in the selection and management of new suppliers. For newly
introduced suppliers the Company requires them to fill in and upload relevant background investigation materials
including Supplier Background Investigation Form Trial Product Quality Standards Trial Product Qualification Property Rights
End enter supplier
Attribution Certificate or Authorized Agent Documents to carry out due diligence investigations on the basic conditions
management program End
including legal person qualification business licenses performance capability scale of operation product quality
corporate litigation and other conditions such as the status of certification of the quality environmental and
occupational health and safety management systems.embracing
openness and competition transparency control of the
voluntariness and selection and fairness supplier size3019 2023 ESG Report 2023 ESG Report 0420
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.Supplier evaluation and removal 3.5.2 Integrity management
The Company has strengthened its assessment of supplier performance and formulated relevant assessment mecha-
nisms and rules. A special supplier evaluation team has been set up for suppliers of equipment and materials to assess the The Company has established relevant integrity management mechanisms and incorporated integrity training as key
performance of qualified suppliers whose deliveries have taken place in the current year and a supplier tier management contents of new employee training and regularly organizes relevant training every year to enhance the integrity awareness
system has been established. Based on the annual performance assessment scores of the suppliers and the relevant of all employees. During the reporting period the Purchasing Department and Sales Department of the Company have orga-
performance the Company's Procurement Management Department organizes and convenes an annual supplier perfor- nized various trainings regarding "integrity self-discipline and production safety warning education training" for all employ-
mance review meeting to validate the evaluation structure form an annual supplier performance assessment report and ees and played relevant clean propaganda films which have played a good role in warning.make adjustments to the division of the supplier tier. Supplier performance evaluation consists of quantitative evaluation
business evaluation and user evaluation and the "Annual Supplier Evaluation" is launched in January each year. By
strengthening the regular evaluation of supplier performance the Company promotes the continuous improvement of
supplier performance improves the quality assurance capability of suppliers and reduces the risk of substandard procure- 3.5.3 Anti-unfair competition
ment quality or violation of laws and regulations caused by suppliers' integrity credibility performance and other issues. In
addition the Company pushes the results of annual supplier performance evaluation back to suppliers through the e-com- The Company fulfills the work requirements of fair trading and integrity and compliance. During the reporting period there
merce platform to promote the continuous improvement of suppliers help suppliers strengthen the whole process of quality
control capability and improve their management system. were no incidents in which the Company was penalized for violating the Anti-monopoly Law of the People's Republic of China and
the Anti-Unfair Competition Law of the People's Republic of China.The Company scientifically and reasonably removes suppliers that do not meet the Company's supplier access condi-
tions do not accept or violate the requirements of the Company's Supplier Cooperation Commitment whose product
quality and service capabilities do not meet the on-site requirements who have been forcibly withdrawn from the
supplier evaluation who have taken the initiative to propose that they will no longer cooperate with the Company and 3.5.4 Publicity compliance
who have not had business cooperation for three consecutive years to continually optimize the Company's supplier
management system. The Company strictly complies with the requirements of the relevant laws and regulations of the Company Law and the
Advertising Law for publicity. During the reporting period there were no incidents of penalties for publicity violations.Supplier integrity and ethics management
The Company requires all suppliers to sign a Supplier Cooperation Commitment Letter including integrity clauses and
ethical constraints; factors such as environmental protection safety and human resources compliance are
incorporated into supplier access and management; suppliers shall commit to strictly abide by national laws
regulations and industry self-regulation provisions. For any supplier that violates business ethics national laws and
regulations or relevant company regulations into the supplier blacklist each implementation unit of procurement
business shall no longer have procurement business with the blacklisted suppliers.Responsible purchasing
The Company has established open and strict bidding procedures and formulated Bidding Management Measures to
strengthen the supervision and management of the bidding business and ensure the openness fairness and
transparency of the bidding process. Meanwhile the implementation of the Company's bidding procedures strictly
complies with national laws and regulations and the Company's system and is committed to anti-monopoly at source
prohibiting the selection of oligopoly suppliers in the bidding of general-purpose equipment protecting fair competition
in the market and creating a healthy environment for the sustainable development of the market.Building a responsible supply chain
The Company has taken a series of measures to promote the continuous improvement of suppliers including promot-
ing the improvement of suppliers' performance in ESG such as helping suppliers to strengthen the whole process quali-
ty control capability through on-site audits of suppliers; building an exchange platform between supply and demand
carrying out localization production supply research and other projects and improving the technical improvement
capability of suppliers; actively promoting the e-coordination capability with approved suppliers and improving the
supplier's integrity efficiency and rapid response; promoting the establishment of environmental management system
and occupational safety and health management system by suppliers prompting suppliers to choose green resourc-
es promote energy saving and emission reduction and carry out occupational health in production and operation and
continuously improve the system; holding supplier seminars and professional training sessions from time to time to
publicize the Company's procurement policies concepts operation and the latest developments;
creating a "clean open and win-win" procurement supply chain system to promote the common development of both
parties.401 2023 ESG Report 2023 ESG Report 042
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
04
To Be a Green Pioneer
4.1 Environmental Management System
4.2 Water Management
4.3 Pollutant Management
4.4 Climate Change Management
4.5 Construction of Green Mines4013 2023 ESG Report 2023 ESG Report 4024
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
4.1 Environmental Management System
Inner Mongolia Dazhong Mining Co. Ltd. (herein-
after referred to as "Dazhong Mining" or "the Com-
pany") upholds the development philosophy of 4.1.1 Environmental factor assessment and management system
"Respecting nature and prioritizing environmental
protection". The Company respects conforms to The Company and its subsidiaries have established the Environmental Factors Identification and Evaluation Management System in
and protects nature integrating the responsibility accordance with the Environmental Protection Law of the People's Republic of China and Environmental management systems—
of ecological construction and the awareness of Requirements with guidance for use (GB/T 24001-2016) intending to identifying and determining the environmental factors within
environmental protection into its production the scope of the Company's and all other related activities as well as identifying evaluating updating and managing the
structure and mode. The Company actively environmental factors in the life cycle of the product production activities and services. The General Manager takes the lead in
responds to China's strategy for realizing the identifying and evaluating environmental factors in the organization identifying important environmental factors and
"carbon peaking and carbon neutrality goal" by
establishing and continuously improving the envi- supervising and implementing management measures; the Safety and Environmental Protection Department is responsible for
ronmental management system attaching great identifying evaluating updating and managing environmental factors in the life cycle of production activities and services of
importance to water resource management the products. Each organization (department) is responsible for identifying and implementing management measures for the
strictly controlling pollutant emissions identifying environmental factors in each management area.climate change risks on time and developing
response strategies and mechanisms. Accord- The Company and its subsidiaries conduct evaluations of important environmental factors using a combination of
ingly the Company aims to become a bench-
mark for environmental protection in the industry qualitative and quantitative scoring methods and prepare a List of Important Environmental Factors based on the evaluations.by continuously reducing carbon emissions The Safety and Environmental Protection Department manages the important environmental factors included in the List of
comprehensively implementing the green mine Important Environmental Factors in the environmental objectives and targets as well as in the environmental management
development strategy and creating a tour- program and formulates a specific Implementation Plan for Control Measures of Important Environmental Factors for those that
ism-oriented mine. cannot be implemented temporarily due to the limitations of economic and technological conditions and other reasons.The List of Important Environmental Factors and Implementation Plan for Control Measures of Important Environmental Factors are
included in the business plan of the Company after being reviewed and approved by the supervisory leaders and the
general manager.Impacts on the Company surrounding residents and the local communities due to the
consumption of water gas sound solids waste as well as resources and energy generated
by the operations products and services of the Company;
Environmental impacts arising from the activities of related parties such as suppliers of raw
materials and purchased items waste handlers and material transporters;
Identification of
In 2023 environmental factors and environ- Environmental impacts arising from the Company's newly planned developments and
mental impacts in a projects as well as newly-upgraded activities products and services;
the company invested including CNY 34.4424 CNY 138.1 million in achieving comprehensive and
CNY 172.5 million in million in environmental other environmental multi-dimensional good results manner Potential significant environmental impacts accompanying normal abnormal and unfore-environmental protection equipment investments seen circumstances or emergencies (such as fires and explosions);
In 2023 the company did not experience any environmental pollution accidents nor did it encounter any situations that affected its And environmental issues of the past on-site and existing pollution as well as environmen-
production and operations due to environmental issues. The company also did not receive any administrative penalties related to tal issues that may be brought about by the production process and potential require-
ments of laws regulations etc..environmental protection. The environmental equipment and facilities operated normally and pollutants were continuously
discharged in accordance with standards.Classification of environmental factors
in Dazhong Mining Supervision and inspection
Emission or generation of water gas sound Execution level of environmental
solid electricity and pollutants; Organizations Inspection periodfactors inspection
As of December 31 2023 Energy resource and raw material Workshop General and important
consumption; environmental factors
Weekly
and two national 3A-level tourist attractions Iron Ore Cultural Park of Anhui
Environmental issues and Important environmen-the Company possesses Factory tal factors MonthlyJinrisheng Company under Dazhong Mining and requirements of related parties;
four national green mines Dazhong Mining Industrial Tourism Scenic Spot.And others.4051 2023 ESG Report 2023 ESG Report 0462
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
4.1.2 Environmental Management Structure and Mechanisms 4.1.3 Environmental protection facilities management
The Company and its subsidiaries have formulated Measures for the Management of Environmental In 2023
Protection Supervision and Inspection established an environmental management structure with clear
rights and responsibilities clarified the duties of each department and organization and the Company invested in 32 new facilities / equipment for with a facility serviceability
conscientiously implemented state and local environmental protection guidelines policies laws and environmental protection rate of 100%
regulations. The Company and its subsidiaries adhere to the scientific outlook on "comprehensive
coordinated and sustainable development" and further strengthen the management of
environmental protection to fully implement the responsibility system of environmental protection The Mechanical Power Department incorporates environmental protection equipment and facilities into the equipment
and prevent the occurrence of unforeseen environmental pollution incidents. management shoulders the responsibility for equipment maintenance and management assessment following the
regulations to protect its normal operation. Each department sets up a machine account of environmental protection
The legal representative serves as the primary person responsible for environmental protection facilities a machine account of inspection and maintenance and an inspection and maintenance plan maintains and
work bearing overall leadership responsibility. Each subsidiary's general manager acts as the repairs environmental protection facilities and regularly cleans and overhauls environmental protection facilities to ensure
principal person responsible for the company's environmental efforts directly overseeing the a serviceability rate of 100% so that the environmental protection facilities synchronize with the main production facilities.environmental work within their respective subsidiaries and integrating environmental protection into The Safety and Environmental Protection Department regularly supervises inspects and evaluates the operation and
their operational plans as mandated by law. The vice general manager of safety is the supervisor of
Environmental management of the environmental protection facilities of each organization and the results of the inspections are included the environmental tasks bearing the main management responsibility for the environmental work of
management in the performance appraisal.structure all subsidiaries. The other vice general managers assist the subsidiaries in carrying out the
environmental protection tasks by providing necessary support for the environmental protection
equipment facilities engineering technologies and production conditions of the subsidiaries. The
manager of the Safety and Environmental Protection Department formulates and revises the 4.1.4 Supervision and inspection system for environmental protection
Company's environmental protection management system in accordance with Chinese laws and
regulations and supervises the implementation of the environmental protection system and duties The Company has established a three-tier environmental protection supervision and inspection system at the corporate
at each level. Safety and Environmental Protection Department serves as the environmental level namely "Safety and Environmental Protection Department - Centers and Departments - Subsidiaries and Branches"
protection management department of each subsidiary responsible for organizing and and formulated the Management of Environmental Protection Supervision and Inspection which is in strict line with laws and
implementing the relevant policies standards laws and regulations of the state and local regulations such as Environmental Protection Law of the People's Republic of China and Environmental management records and
governments establishing and improving the Company's environmental protection management compliance reports of pollutant emission permit technical specification for pollution sources (HJ944-2018) to fulfill the duties of
system formulating the medium- and long-term planning for environmental management of environmental protection supervision and inspection and timely identify deficiencies in the environmental protection
subsidiaries as well as the yearly quarterly and monthly work plans and the environmental management of each subsidiary and branch thereby preventing and reducing environmental pollution and ecological
protection index system and supervising the implementation of each department. In addition it is damage. The Safety and Environmental Protection Department of Dazhong Mining is responsible for formulating the annual
responsible for setting up the environmental protection management structure of subsidiaries and supervision and inspection plan for environmental protection and organizing to implement it by setting up inspection teams
promoting the establishment of the environmental protection management team at five levels in each center department and office to carry out comprehensive inspections supervising and urging the organizations with
which consists of the company level (Safety and Environmental Protection Department) the mining potential risks to rectify on time reviewing the rectification managing in a closed loop and setting up management files.level the workshop level the section level and the group level.Inspection mode
Quarterly Comprehensive
Inspection of The Safety and Environmental Protection Department of the Company organizes inspections in all centers and departments quarterly.The Company establishes and continuously improves its environmental management mechanism by Environmental Protection
setting up a series of systems covering the management of environmental protection equipment and
facilities supervision and inspection of environmental protection management of projects under Special Inspection on The Safety and Environmental Protection Department organizes personnel to carry out
construction environmental monitoring pollution prevention and control management of hazardous Environmental Protection targeted special inspections on each subsidiary and branch; the inspection date frequency and items are determined according to the annual inspection plan and work arrangement.wastes prevention and management of environmental accidents environmental protection training
and management of environmental protection accounts and files to implement and promote the
environmental protection process. In the current year the Company revised the Measures for the
Environmental Inspection itemsManagement of Environmental Protection Supervision and Inspection and the Measures for the Management
management
mechanisms of Investigation Handling and Accountability for Reports of Safety and Environmental Protection Accidents to Project
further strengthen the environmental supervision and management and to improve the mechanism Regulatory System Targeted management for Prevention and Clean Environmenta Environmenta
for preventing and responding to environmental protection accidents. agency building accountability the building of control of production l emergency l information
management environmental pollution response management
The subsidiaries formulate environmental protection plans and budgets on an annual basis specify protection
environmental protection objectives tasks and measures include environmental protection publicity facilities
education and training in the annual training plan and organize and implement relevant trainings.0417 2023 ESG Report 2023 ESG Report 4028
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.Workflow of environmental protection supervision and inspection
Inspection results in 2023
Safety and Environmental Protection Department Headquarters Subsidiaries and Branches of
of Dazhong Mining Dazhong Mining
The comprehensive environmental protection inspection was carried out 31 times the special environmental protection
inspection was carried out 29 times 46 environmental risks were found and the rectification rate reached 100%
Start 4. Inspection teams visit the
headquarters or subsidiaries
and branches.
1. Prepare the Annual
Environmental 4.1.5 Environmental Accident Emergency Management System
Protection Supervision
and Inspection Plan. 5. Record the issues in the List 7. Carry out rectification in
of Potential Environmental Risks accordance with the requirements
of the rectification instructions. The Company has established an emergency response system for environmental accidents in line with the requirements of Annual Environmental Protection and notify them in the Intranet;
Supervision and Inspection Plan and issue rectification Chinese laws and regulations such as Measures for Information Reporting of Environmental Emergencies and Measures for
instructions to the responsible Rectification Investigation and Handling of Environmental Emergencies and formulated the Management of Safety and Environmental Accident
units for the potential risks. completed Reporting Investigation and Accountability to prevent and minimize environmental emergencies and to strengthen the
Unable to complete
List of Potential Environmental Risks rectification on schedule response to environmental emergencies. If any environmental emergency occurs the person in charge of each center
Letter of Order for Rectification department or subsidiary and branch shall report it to the Safety and Environmental Protection Department of the
2. Prepare inspection notices Company within one hour and submit a written Accident Information Report within 12 hours; and the relevant responsible
and checklists in accordance
with the Annual Environmental 8. If the rectification is not persons shall be punished.Protection Supervision and completed on time the rectification
Inspection Plan and actual extension shall be applied to the
requirements. Process for notification of Safety and Environmental
potential risks Protection Department before the
Environmental Inspection Notice expiration.Environmental Inspection Form Application for Extension of
Rectification
3. The Safety and Environmental 6. The supervisor
Protection Department approves.organizes the managers or
professional technicians of each
department and office to set up
a safety inspection team.Rectification unqualified
12. The Safety and Environmental
Protection Department reviews
and accepts the rectification 9. The Safety and
outcomes. Environmental Protection Department approves the
Rectification qualified rectification extension report.
10. Continue rectification
Approval following the approved In 13. Cancel the List of Potential rectification schedule.Environmental Risks and record the
rectification on the account.Rectification
Register of Rectification of
Environmental Risks
11. Feedback rectification to the environmental events
Safety and Environmental Dazhong Mining did not that were subject to
Protection Department after have environmental
completion. state administrative emergencies penalties
End
Rectification Completion Report0419 2023 ESG Report 2023 ESG Report 0520
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
4.2 Water Management
4.2.2 Prevention and control of water pollution
4.2.1 Water usage
Wastewater disposal mechanisms
Water usage at Dazhong Mining in 2023 High-concentration wastewater shall be disposed of in wastewater disposal facilities;
untreated wastewater is prohibited from being discharged;
The total water intake in Anhui Mines is 2193900 tons and the total water intake for other domestic uses is 521229 tons.It is prohibited to discharge waste oil waste acid or alkali or highly toxic waste liquids into
Freshwater Recycled Water Water Recycling the drainage system directly;
Industries Consumption (tons) Consumption (tons) Rate (%)
Waste oil or sludge generated during the operation of wastewater disposal facilities shall
Anhui Mines 515000 439549 67.14 be disposed of in accordance with the provisions of the Hazardous Waste Management
Nei Mongol Mines 1570000 System;9951411.74 97.13
Other Production and Domestic Water 33595 490540 98.00 If any wastewater is discharged during the overhaul of equipment and facilities measures
to prevent pollution shall be formulated and the time of overhaul the condition of
wastewater discharge and the measures shall be reported to the Safety and Environmental
In terms of water utilization the Company has established and strictly enforced relevant mechanisms to ensure the quality Protection Department for approval in advance. The measures can be implemented only
of water intake by keeping the area and water surface near the water intake site clean and hygienic and to ensure safe after approval. Those that can be centrally recycled shall be disposed of in wastewater
stable operation by protecting equipment such as pumping units and motors at the intake site and by performing regular disposal facilities and those that cannot be recycled shall be discharged up to standard;
inspections and maintenance.Wastewater disposed of by disposal facilities shall not be discharged beyond the standard;
The subsidiaries shall oversee external units (including contracted parties) for water consumption sign environmental if yes processing measures shall be taken to meet the standard before discharge;
protection agreements with them on the principle that the contract signer assumes accountability specify the relevant
environmental requirements for water consumption and drainage and inform the relevant parties.The operators of the wastewater disposal facilities shall be trained to strengthen
environmental awareness and operational skills to ensure the normal operation of the
facilities;
The laboratory tests the wastewater. Acid and alkali wastewater shall be neutralized and
processed and other highly toxic wastewater shall be classified and centrally processed;
all processes shall comply with the provisions of the Hazardous Waste Management Measures;
and general wastewater shall be discharged up to standard;
Domestic wastewater is collected and transported to the sewage disposal station;
The wastewater discharge outlets shall be standardized according to the requirements of
environmental supervision and signs shall be set up.In production and operation the Company generates three types of wastewater including mining wastewater ore dressing
wastewater and domestic wastewater. The Company has formulated a strict wastewater disposal mechanism and
adopted different disposal measures for different sources of pollution. Mining wastewater comes from the underground
gushing water from the fracture of the rock aquifer during the mining process so it is pumped to the elevated tank outside
the cave for storage and then supplied to the processing plant for ore dressing. Ore dressing wastewater comes from the
industrial water purposively added during ore grinding so the ore dressing production adopts a recycling water supply
system; all concentrate wastewater is reused and tailing water is drained from the reservoir by chute clarified and then
transported to the dressing plant for recycling through the pipeline. Domestic wastewater is processed by facilities such as
septic tanks and sewage disposal stations and then used for greening the plant or for production. The wastewater
generated by the Company has been recycled instead of being discharged which saves water resources and minimizes
the disturbance to the environment.501 2023 ESG Report 2023 ESG Report 052
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
4.3 Pollutant Management 4.3.2Prevention and management of waste
4.3.1 Prevention and management of air pollution Management of general solid waste
Air pollution is the most serious source of pollution generated by the mining industry. The safety and environmental protec- For general solid waste Dazhong Mining adopts a "Trash into Treasure" strategy. For the solid waste generated by the Com-
tion departments of the Company and its subsidiaries are responsible for proposing prevention and control plans for waste pany the waste rock of mining and processing is used for environmental protection of the surface subsidence area; ap-
gas pollution and assisting the relevant organizations in completing the feasibility plan demonstration and project imple- proximately 98% of the tailing sand is filled to the tailing of the underground mining area and the rest is stacked on the
mentation of major prevention and control projects. The subsidiaries shall oversee external units (including contracted standard impermeable layer; the waste rock and tailing sand of Anhui Jinrisheng Mining Co. Ltd. are exported as different
parties) for waste gas emission sign environmental protection agreements with them on the principle that the contract building materials according to their diameters and sizes yielding profits; all the dust ash from the ore dressing is recycled
signer assumes accountability specifies the relevant environmental requirements for waste gas emission and informs the back to the ore dressing system and the boiler ash is used for paving the roads in the factory area or backfilling in the col-
relevant parties.lapsed area. The iron-sulfur concentrate powder generated by Inner Mongolia Jinhui Rare Ore Co. Ltd. is comprehensively
To reduce dust and hazardous gases during production Dazhong Mining adopts wet operation in underground rock drilling utilized as raw material for Inner Mongolia Dazhong Mining Co. Ltd. The dust removal ash and waste materials of Inner
and adopts spraying and sprinkling for loading and unloading of mines waste rock quarries and other dusty areas; the Mongolia Dazhong Mining Co. Ltd. Pelletizing Branch and Anhui Zhongsheng Metal Pellet Co. Ltd. are reused as raw materi-
workshops of crushing and screening in the ore-dressing plant are closed; equipment such as dust-absorbing hoods and als to reuse and save resources.mechanical blowing flat-bag dust collectors are equipped in all dusty areas; the continuous operation of the dust-collect-
ing equipment ensures the continuity of dust removal and no dust overflowing. In the Circulation Subsidiaries and Branches The Safety and Environmental Protection Department urges all units to classify collect and centrally dispose of solid waste
Inner Mongolia Dazhong Mining Co. Ltd. Pelletizing Branch has built ultra-low emission and desulphurization towers to generated during production. Disposal facilities and sites for industrial solid waste shall comply with the environmental pro-
reduce the emission of hazardous gases such as SO2 and NOx from the root; the sulfuric acid processing factory has built tection standards set by the state administrative department. Each organization shall actively apply technical policies to
a new closed warehouse for raw materials and remodeled a closed warehouse for finished products to control dust. Anhui prevent and control the pollution caused by industrial solid wastes; adopt advanced production processes and equipment
Zhongsheng Metal Pellet Co. Ltd. adopts a combination of electric dedusting SCR denitrification and desulfurization by to reduce industrial solid wastes; take relevant measures; reasonably select and utilize raw materials energy and other
lime gypsum method for tail gas processing with an efficiency of 95% in the processing of dust and hazardous gases. With resources; supervise the construction units to promptly remove and dispose of solid wastes generated in construction; and
the joint efforts of various measures the air quality in the mines has been significantly improved ensuring blue skies are a
constant presence. supervise equipment maintenance units to collect and centrally dispose of solid wastes generated during maintenance.The two production bases in Inner Mongolia and Anhui are laid out in functional zoning and grid distributions. Monitoring
locations are made according to the meteorological conditions and topographical features of the factories; annual moni- General Solid Waste Disposal in Dazhong Mining in 2023
toring contracts are signed with qualified monitoring agencies and monitoring programs are formulated. Atmospheric
monitoring is conducted quarterly and test reports are issued. If data is detected out of limits the Safety and Environmental
Protection Department shall issue rectification instructions and the production unit shall control waste gas pollution. Total amount of general solid waste generated Comprehensive utilization rate
3493850.88 tons 100%
Waste gas disposal mechanisms
Operation and Maintenance of Waste Gas Disposal Facilities
Each production unit is responsible for the operation management and maintenance of waste gas disposal facilities to ensure the
normal operation of the disposal facilities and the discharge of waste gases in compliance with the standards. The Mechanical
Power Department carries out regular inspections of the waste gas disposal facilities to ensure that they are overhauled and put Prevention and management of hazardous waste
into operation in synchronization with the main production equipment collects and promotes new technologies and techniques for
air pollution control and eliminates outdated equipment with serious pollution. The Company has formulated management mechanisms such as Hazardous Waste Management Regulations according to
relevant laws and regulations such as the Law of the People's Republic of China on Prevention and Control of Environmental
Emission management during production Pollution by Solid Waste and the National Catalogue of Hazardous Wastes to standardize the collection storage transfer and
Each production unit is responsible for balancing energy reducing the emission of polluting gases and eliminating the combustion disposal of hazardous wastes thus preventing pollution and protecting the ecological system and the health of personnel.of seriously polluting fuels during production. Hazardous wastes include waste mineral oil and its oil drums from machinery and equipment maintenance and
replacement lubrication tar sludge acid sludge waste catalysts and waste acid. Each production unit and department
Reduction of dust emissions set up and manages hazardous waste accounts. Each hazardous waste generating unit carries out emergency drills for
For dust emissions from the transfer and storage of raw materials materials and supplies in the process the dust removal environmental emergencies of hazardous waste regularly.equipment shall be kept in good operating condition; if no dust removal equipment is available the production process shall be
controlled by dust prevention and control measures to minimize emission.Prohibition of refuse incineration In 2023
Any organization or individual is prohibited from incinerating all kinds of refuse such as asphalt linoleum rubber and plastic in the
factory and living area to reduce the pollution to the atmosphere.the total amount of hazardous waste generated by the Company was 7693.84tons
Reinforcement of the management of chemicals and oils with a qualified processing rate of 100%.Organizations that use and store chemicals and oils shall strengthen their management to prevent the volatilization leakage
combustion and explosion of toxic and harmful chemicals from polluting the atmosphere.0513 2023 ESG Report 2023 ESG Report 0524
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.Process Flow Chart for Hazardous Waste 4.3.3 Prevention and management of noise pollution
Prevention and management measures of noise pollution
taken by Dazhong Mining
Registration of hazardous waste Temporary Repository of Hazardous Waste When purchasing production and auxiliary equipment that generates environmental
noise it is necessary to consider the design requirements of realizing noise elimination
Fill in the Record of Hazardous Waste Measures shall be taken to prevent rain leakage insulation and damping so that the environmental noise will meet the standards.and fire. Hazardous waste signs shall be set.Hazardous waste is stored in a temporary stor- Under the condition that economic and technical conditions permit noise reduction
age area for hazardous waste by specific per- measures are taken new technologies are promoted and process equipment with
sonnel designated by the generating organiza- serious environmental noise pollution is removed so that the environmental noise is
Hazardous waste generated in the production tion. It shall be categorized according to the discharged following the standards.process shall be stored in the Temporary Re- type of hazardous waste managed by specific
pository of Hazardous Waste; its inbound and The Management and Control Department carries out comprehensive management personnel and distinctly marked.outbound ledger shall be managed by desig- of traffic noise in the plant setting up warning signs to minimize vehicle noise inform-If the storage volume in the temporary storage
nated personnel and recorded onl ine in ing vehicles entering the plant about relevant regulations and penalizing non-compli-area reaches 0.5 tons the items shall be trans-
real-time. ant vehicles.ferred to the Temporary Repository of Hazardous
Waste and filed on the machine account. Each production unit and department is responsible for the normal operation of the
equipment and the daily maintenance of noise pollution prevention and control facili-
ties to keep the equipment in good condition and reduce noise pollution. If the noise
reduction equipment fails to work it shall be immediately reported to the Mechanical
Power Department and maintenance shall be conducted immediately.Relevant departments of the project are responsible for imposing requirements on
Temporary Repository relevant parties during the construction of the project so that the noise level and noise
emission time comply with the requirements on the construction site.of Hazardous Waste
Measures shall be taken to prevent For noisy operation positions personal protection such as noise protection gears shall
rain leakage and fire. Hazardous be enhanced.wastes that are easily flown and
volatile shall be stored in closed
containers. The period for tempo-
rary storage of waste shall not Transfer and disposal
exceed one year. of hazardous waste 4.3.4Prevention and management of waste radioactive sources
Containers packaging collection If the storage volume in the Temporary Re-
storage transportation disposal pository of Hazardous Waste reaches five
equipment and disposal sites of On-site protection shall follow laws and regulations such as the Basic standards for protection against ionizing radiation and for tons the items shall be transferred and
hazardous waste shall be marked the safety of radiation sources (GB 18871-2002) and the Law of the People's Republic of China on Prevention and Control of Radio-filed online on time and following the regu-
with hazardous waste signs. active Pollution. Safety zones shall be set up with safety warning signs during production.lations.Other i tems are prohibited to The Safety and Environmental Protection
place; fire-fighting equipment and Department shall handle relevant proce- For collection and storage of waste radioactive sources if any of the following
hazardous waste signs shall be conditions occurs an application shall be made.dures following the Law of the People's Re-
available. public of China on Prevention and Control Radioactive sources have not been used for three years and will not be used in the next three years.The site shall be clean and items of Environmental Pollution by Solid Waste Radioactive sources without reliable security.shall be stacked neatly and order- contacting the hazardous waste disposal Waste radioactive sources without any value in use.ly. agency and signing the disposal contract. Radioactive sources that are no longer in use due to changes in the production process change of production or
It is prohibited to pile up hazardous After the government authorities approve closure of the using organization.wastes in undesignated places. the transfer the disposal agency may be For the waste radioactive sources each organization shall report to the Safety and Environmental Protection De-
contacted for the transfer and records partment promptly and the Safety and Environmental Protection Department shall dispose of them following the
shall be made on the ledger. state regulations. It is prohibited to dispose of them arbitrarily by any organization or individual.5015 2023 ESG Report 2023 ESG Report 5026
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
4.4 Climate Change Management Measures to reduce Actionscarbon emissions
New energy-saving New energy-saving technologies and techniques are adopted and large-scale electric mining
4.4.1 Management strategies and mechanisms for climate change technologies and equipment with high production capacity high efficiency and low energy consumption are
techniques chosen.Ventilation VVVF fan is adopted for production water supply pump to save energy efficiently.The main
ventilation fan and the local fans are energy efficient.Risk identification and responses for climate change
Underground
Underground ore is transported by rail to realize powerless unloading.Risk identification Response mechanism & measures transportation by rail
Application of new energy-saving technologies processes equipment and Automatic control PLC control is adopted for systems such as elevators drainage ventilation and pressure to
Risks of climate change
renovation to reduce carbon emissions in the mine facilitate the reduction of power consumption.New energy-saving
Daily preparations for organization engineering plans communication and flood New energy-saving equipment is used as much as possible.equipment
control inspections.Energy efficiency in
If a flood occurs the Company shall report the flood damage the casualties and water supply and VVVF device is adopted for the production of water supply pumps to save energy efficiently.major property damage to the higher flood prevention and control agency drainage
promptly; if the flood is severe general conditions shall be reported within two
hours. New building materials are used. Energy-saving building materials appliances and products
Energy efficiency are used to improve thermal insulation and reduce energy consumption.
3-level emergency response system shall be pre-planned according to the dif- in buildings Insulation measures for walls and roofs Insulation measures are taken for the walls and roofs of
ferences in emergencies the extent of damage the scope of influence and the the main plant and the doors and windows are well closed.Flood risks control of the situation. If a 3-level emergency occurs the emergency plan shall Electrostatic capacitors are used for reactive power compensation to reduce line losses.be launched to take effective measures rapidly and implement rescues to pre- Energy-saving transformers and motors are used and electricity-saving technology is adopted.vent spreading aggravation more casualties and property losses. Systems of heating ventilation air-conditioning and power supply are designed with proper
processes to minimize losses.If a flood threatens production or employee lives the flood prevention and con-
Energy efficiency The location of the transformer (substation) is properly selected to be in the center of the load trol agency shall issue an order to mobilize all workforce to respond to the flood.in electricity to minimize the distance of power distribution and reduce the line loss of the cables.Emergency support shall be guaranteed. Reactive power automatic compensation devices are adopted to automatically adjust the
reactive power and reduce the reactive power loss under several inductive loads.The dam and flood discharge structures shall be thoroughly and carefully High-quality copper cables with large carrying capacity and low line loss are used to reduce
inspected and cleaned after the flood. Any issues or incidents shall be resolved in line loss.a timely manner. Measures shall be taken to reduce the water level of the reser-
voir to prevent dam collapse after continuous heavy rainfall. High-efficiency energy-saving light sources Efficient light sources such as fluorescent lamps
and sodium lamps are used as much as possible in workshops and living and welfare facilities.Energy efficiency in Electric light sources with high efficiency long service life safety and stable performance as
lighting systems well as wiring accessories and light-control devices are used to improve illumination save
electricity improve lighting quality and benefit both the environment and the human.Solar-powered light equipment is used outdoors including roadways.To date the first phase of the Photovoltaic Project (5.9 MW) in the Shujigou Mine and Dong-
4.4.2 Low-carbon development Layout of distributed wufenzi Mine in Inner Mongolia China has been completed for grid connection; the first phase
photovoltaic and of the Photovoltaic Project (5.9 MW) in the Shanpiangou Pyrite Area has been completed for
construction of
Dazhong Mining actively responds to China's strategy for realizing the "carbon peaking construction and the license procedures for grid connection are underway. The first phase of photovoltaic bases
and carbon neutrality goal" by practicing the low-carbon concept with practical ac- the Photovoltaic Project (5.9 MW) in the Zhouyoufang Mine in Anhui China has been completed
tions such as continuously increasing investment in technological improvement. for grid connection; the second phase (5.9 MW) has been approved by the local government
Through energy-saving technologies processes equipment and renovation the and is under construction.Company reduces carbon emissions to effectively promote low-carbon development Energy efficiency in
and achieve the ideal reduction of energy consumption and emissions. official vehicles Use new energy vehicles as official vehicles in daily operations to reduce carbon emissions.0517 2023 ESG Report 2023 ESG Report 5028
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
4.5 Construction of Green Mines
Supervision and management during construction
Dazhong Mining always adheres to the concept of "lucid waters and lush mountains are invaluable assets" and the principle
of "developing circular economy and building green mining". The Company takes the realization of the Chinese dream as its
1.From the date of construction commencement the Safety and Environmental Protection Department shall
mission comprehensively implementing the development strategy of green mines taking the ecological priority and green
promptly report in writing to the local ecological and environmental branch office on the construction progress
development as the responsibility by unswervingly taking the road of sustainable development and attaching importance to
of the environmental protection facilities and the main project.the environmental governance and scenic spot construction.With unremitting efforts the vegetation coverage of the mining area of Dazhong Mining has reached more than 80% of the 2.During the construction process the construction unit shall take measures to control pollution such as dust
greenable area. The four main mines of the Company are all recognized as national green mines; Dazhong Mining and noise vibration waste gas wastewater solid waste and to prevent the destruction of the natural landscape
Jinrisheng Mining are both recognized as national AAA-level tourist attractions. and the impact on the human environment. The Safety and Environmental Protection Department and the
Operation and Management Department shall strengthen the daily supervision in the process of operation and
scheduling issue timely rectification instructions and supervise the rectification of irregularities.
4.5.1 Environmental management of construction projects 3.For construction projects that may cause significant environmental pollution an environmental supervision
system is implemented whereby the Safety and Environmental Protection Department commissions units
The Company strictly abides by relevant laws and regulations such as Provisions on Geological Environment Protection of qualified in environmental engineering supervision to supervise the entire process of designing constructing
Mines Measures for the Administration of Mineral Resources Registration and Measures for the Implementation of installing and commissioning pollution prevention and control items and to carry out technical supervision of
Regulations on Land Reclamation Programs etc. The Company's two production bases in Inner Mongolia and Anhui Province environmental protection measures.have formulated a series of systems such as Measures for the Three Simultaneous on Environmental Protection of
Construction Projects to regulate the management process in designing constructing and commissioning of environmental 4.The Safety and Environmental Protection Department carries out regular follow-up inspections of
protection facilities of the Company's new construction reconstruction and expansion projects so as to effectively control construction projects. It inspects and verifies the implementation of the "three simultaneous" in construction
environmental pollution and ecological damage and to protect the environment and resources. projects supervises the implementation of pollution prevention and control measures and handles and follows
up on any violations of the "three simultaneous" in construction projects found in the course of inspection.Environmental management of construction projects 5.During the construction and operation of the project if any situation occurs that is not in line with the
The "three simultaneous" principle:When new construction reconstruction and expansion projects are carried out approved EIA report a post-evaluation of the environmental impact shall be conducted promptly and
facilities for the prevention and control of pollution and other public hazards shall be designed constructed and put into improvement measures shall be taken and reported to the Environmental Protection Bureau.operation simultaneously with the main project.Pre-project environmental assessment and design
Environmental protection acceptance at project completion
Environmental evaluation of construction projects 1.After the completion of the main project the construction of environmental protection facilities shall be
According to the Classified Management List for Environmental Impact Evaluation of Construction Projects (Version 2021) put into operation at the same time as the main project. If the project requires trial production the
environmental protection facilities shall be put into trial operation at the same time as the main project.environmental protection of construction projects is managed in a categorized manner and if environmental impact
evaluation is required to be carried out the Safety and Environmental Protection Department commissions qualified units to 2.After the environmental protection acceptance the main project can be formally put into production or
prepare it. The Safety and Environmental Protection Department shall prepare an environmental impact report and an use.environmental impact report form for construction projects; it shall submit the environmental impact report and the
environmental impact report form to the competent administrative department for environmental protection with approval
authority for the environmental impact assessment documents for construction projects prior to the commencement of
construction; if the documents are not reviewed by the authority in accordance with the law or the documents have not been
approved after review the construction unit shall not commence construction and shall construct matching environmental
protection facilities for the prevention and control of pollution and ecological damage in accordance with the requirements
of the environmental impact assessment report and the approved documents.Design of environmental protection facilities for construction projects
the design of units qualified in engineering design of environmental protection facilities shall be entrusted at the design stage
of the main project. For construction projects with serious pollution the design plan of pollution prevention and control
facilities shall be attached with expert evaluation opinions.0591 2023 ESG Report 2023 ESG Report 6002
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
4.5.2 Land resources and ecological conservation
During the process of iron ore mining ecological and environmental issues such as ground subsidence and destruction of
surface vegetation may arise if left untreated. The Company adheres to the mining concept of resource conservation and
recycling to minimize the adverse impact of mining activities on the geological environment of mines reduce the impact of Case 2: Dazhong Mining Industrial Tourism Scenic Spot awarded national AAA-level scenic spot
mining on the surrounding ecological environment to safeguard biodiversity. Every year the Company carries out ecological
restoration and treatment in accordance with the Geological Environmental Protection and Land Reclamation Plan prepared
by a third-party unit. During the reporting period the Dazhong Mining Industrial Tourism Scenic Spot
was awarded as a national AAA-level scenic spot. Dazhong Mining Industrial
In 2023 the Company invested a total of CNY 138.1399 million in ecological management which included CNY 134.2439 million Tourism Scenic Spot the only mining industrial tourism scenic spot in Bayannur
in the management of collapsed areas CNY 3.8960 million in the backfilling of waste rock greening of slope repair and City Inner Mongolia China is developed by relying on advantages such as the
greening of the plant environment. complete ore mining dressing filling advanced facilities and equipment
spectacular industrial plant good industry evaluation. The scenic area is planned
The Company has always adhered to the development concept of "green mine" in the development and utilization of mineral and laid out in six areas including "visitor services industrial tourism hot springs
resources and has created a green mine and tourism mine template that can be referred to and promoted in the industry. and recreation cultural experience study activities and sports". It is linked with
The Shujigou Iron Mine and Dongwufenzi Iron Mine have been successively recognized as "the Second Batch of National Green historical resources such as the Qin Great Wall Yinshan rock paintings and the
Mine Pilot Units" and "the Fourth Batch of National Green Mine Pilot Units" and both of them have been recognized as "National ruins of the ancient city of Guanglusai around Xiaoshetai Town as well as the
Green Mines" by the Ministry of Land and Resources of the People's Republic of China. The Iron Mine Cultural Park of Anhui natural resources such as the Zenglongchang Reservoir and the Huofogou Gully
Jinrisheng Company under Dazhong Mining and the Dazhong Mining Industrial Tourism Scenic Spot were assessed as creating a unique and regionalized tourism. In 2022 it was recognized as a
national AAA-level tourist attractions. science popularization and demonstration base in Inner Mongolia.Case 1: Construction of a "national-level green mine" in the Shujigou Iron Mine
Shujigou Iron Mine insists on controlling and reducing the source of pollution giving full play to the important role of
the "three wastes" control equipment building a 1.5-kilometer-long fully enclosed tape corridor for ore
transportation surface crushing milling and other processes; the dust generation sites are equipped with dust
collectors and fog guns to reduce dust; the fine powder warehouse and the raw material warehouse are
surrounded by windproof dust nets; the heating boiler is equipped with cloth dust collector with bi-alkaline
desulfurization facilities; the tailing ponds take the laying of fiber blankets and mulching vegetation for overall
control dust. A series of comprehensive prevention and control measures ensure that all types of pollution sources
meet emission standards. In 2014 Shujigou Iron Mine passed the cleaner production audit and was accepted by
the Economic and Information Technology Commission of Niemen Gangu Autonomous Region in one go. To date
more than 500000 poplars willows and elms have been planted within the mining area of Shujigou Iron Mine and
more than 5000 meters of elm walls have been planted with the greening coverage reaching over 80%. The
Company plans to make Shujigou Iron Mine into a garden mine within three to five years and declare it a national
4A tourist attraction.601 2023 ESG Report 2023 ESG Report 062
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
05
To Be a Safety Benchmark
5.1 Safety Management System
5.2 Quality Management System
5.3 Construction of Smart Mines
5.4 Construction of Safe Mines0613 2023 ESG Report 2023 ESG Report 0624
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
5.1 Safety Management System
5.1.1 Management system for safety responsibilities
In order to implement the main responsibility of safe pro- Management and Procedure of the System of
duction the Company has established an all-round and Safe Production Responsibility
detailed Safe Production Responsibility System and related Centers departments Safety and Environmental
management regulations at the Group level following the and offices Protection Department
relevant laws and regulations such as the Work Safety Law of
the People's Republic of China the Circular on Comprehensively Start
Strengthening the Work of the Enterprise's All-employee Safe
Production Responsibility System issued by the Office of the
State Council's Safety Committee (AWB [2017] No. 29) the
Enterprise Safety Production Responsibility System Five imple- Safety and Environmental Protection Department
ment & Five in Place Regulations (AJZB [2015] No. 27). This 1. Preparat ion of the system
regulation specifies the safe production responsibilities of ofsafe production responsibility
the principal management personnel and operators of A system of safe production
each position thus is the most basic and core safe produc- responsibility for all personnel
tion management system of the Company. The Company Unqualified
implements the principles of "industry business production
operation in parallel with safety" and "Party and administra-
tion share the same responsibility; dual responsibilities for
Approval of the
one posit ion; co-monitor ing and co-management; supervisor
accountability for dereliction of duty". The Party and admin-
istration leaders of the Company are the first persons
responsible for safe production and are responsible for the
overall leadership of safe production; the leaders in charge
of safe production are responsible for the integrated man- Issue procedure of the system of safe production responsibility
agement of safe production; other leaders are responsible
for the direct leadership of the safety management within
the scope of their responsibilities. According to the require-
ments of Enterprise Safety Production Responsibility System Safety and Environmental
Five implement & Five in Place Regulations a safe production Protection Department
responsibility system is established and a Dazhong Mining 3.Implemetation of the 2. Promotion and training about
Safety Production Committee is set up with the chairman/- system of safeproduction the system of safe prduction
responsibility responsibility
general manager of Dazhong Mining as the director of the
Safety Production Committee. Records of promotion and
training
Simultaneously the two production bases in Inner Mongolia
and Anhui have formulated the Safe Production Responsibility
Dazhong Mining takes "Life first safety first" as its concept of safety development. The Company adheres to the business System and related management regulations. A safe pro- Safety and Environmental
purpose of safe production by correctly handling the relationship between safety and development adheres to the principle duction management responsibility system has been
Protection Department
established with the general manager as the first person
of "people-oriented safety first" by laying out the construction of intelligent mines with technological innovation and building 4. Evaluation of the systan of safe
responsible for safe production the main responsible production responsibility
the safety base of the mines with a high sense of responsibility to protect the occupational health and safety of the
person in charge is fully responsible principle leaders of Evaluation Record ofthe
employees with a high sense of mission and to promote both safety and development thereby drawing a grand blueprint sub-divisions and the functional departments implement systam of safe producti on
for high-quality and sustainable development in the future with the safety guarantee. responsibilityand supervise the system so as to strengthen the manage-
ment of safe production responsibility and safeguard the
lawful rights of the staff thereby ensuring that the compa-
ny's production and business activities are carried out in a End
normal orderly manner.0615 2023 ESG Report 2023 ESG Report 6026
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
5.1.2 Supervision and inspection system for safe production The mines and production units of the Company regularly organize safety production managers engineers technicians and
other relevant personnel to investigate the potential risks in their units and carry out safety production inspections once a
The Company establishes and continuously improves the production supervision and inspection system and attaches great month; the head of each production unit shall attend the inspections of each workshop and mining area. For general
importance to the production safety inspection and the investigation of potential risks. Dazhong Mining carries out quarterly safety potential risks the head of the mining area or workshop or the relevant personnel shall immediately organize rectification
inspections special safety inspections and daily safety inspections for each subsidiary incorporates the violations of each and the rectification period shall be 3-7 days. For major potential risks all personnel shall be evacuated from the hazardous
subsidiary into the safety performance appraisal and issues a Notice of Work and Production Suspension for serious violations which area production or use shall be suspended temporarily and the principal shall organize the formulation and implementation
requires the subsidiary to suspend work and rectify issues immediately. After the inspection the Safety and Environmental of a program for handling potential risks. After rectification is completed an acceptance inspection shall be conducted to
Protection Department of the Company summarizes the potential risks and problems forms an inspection report and posts it on confirm the elimination of the potential risks and then the operation or use is allowed to resume.the website within seven days and issues a Letter of Instruction for Rectification requesting the unit to complete the rectification in
accordance with the requirements and the time limit. After the completion of rectification the rectification unit shall prepare the
Report on the Completion of Rectification and the Feedback on Rectification of Potential Safety Risks and feedback them to the Safety and
Environmental Protection Department of Dazhong Ming. In accordance with the principle of "whoever inspects is responsible for
re-inspection" the inspection team is responsible for the review which can be conducted in the form of an on-site review or 5.1.3 Emergency management system for safe production
on-site random inspection supported by videos. If the rectification is qualified the cancellation will be made in the List of Potential
Risks of Safe Production to complete the closed-loop management and the Register of Rectification of Safe Production Risks will be The Company and its subsidiaries implement the production safety policy of "safety first prevention first and comprehensive
filled in. If the re-inspection fails a new rectification instruction shall be issued. management" by establishing a production safety emergency management system and formulating relevant systems to
prevent the occurrence of sudden incidents or secondary accidents and guiding the emergency rescue operations in order
Workflow of safe production supervision and inspection to minimize casualties property losses environmental damages and social impacts. Risk identification and assessment are
carried out in response to the characteristics and hazards of potential accidents. Emergency response plans and disposal
Safety and Environmental Protection Department Headquarters Subsidiaries and Branches plans are formulated for various types of safe production accidents such as mine roofing caving gangs landslides water
and fire disasters mine explosions electromechanical transportation special equipment accidents tailing pond dam
4. Inspection teams visit the failures electrocution accidents gunpowder explosions sudden power outages falls from height object strikes.
Start headquarters or subsidiaries and
branches.The Company regularly carries out emergency plan drills every year including preparing the drill program in advance
conducting relevant training for the personnel participating in the drill and notifying the personnel in the area where the drill
Safety and Environmental Responsible unit for rectification is to be carried out in advance. After the drill the site is well restored professional and technical personnel evaluate and
Protection Department Safety and Environmental Protection
Department 7. Carry out rectification in summarize the drill and relevant materials are archived.
1. Prepare the Annual Safe Production accordance with the requirements
Supervision and Inspection Plan. 5. Record the issues in the List of Potential of the rectification instructions.Safe Production Risks and notify them in
Annual Safe Production the Intranet. Issue rectification Unable to complete rectification on schedule According to its actual situation the Company has formulated an accident response During the
Supervision and Inspection Plan instructions to the responsible units for mechanism adapted to its safety management. In case of safety accidents the reporting period
potential risks.Responsible unit for rectification Company immediately launches the emergency response plan and rescues people in the Company
List of Potential Safe Production Risks
Safety and Environmental Letter of Order for Rectification 8. If the rectification cannot be danger to prevent the accident from expanding and aggravating keeps order at the conducted 78
Protection Department completed on time extension shall scene of the accident protects the scene of the accident and the relevant evidence emergency
2. Prepare inspection notices and be applied to the Safety and Environmental Protection and reports the accident in a timely manner. Each subsidiary has established an safety drills.checklists in accordance with the
Annual Safe Production Supervision Department before the expiration. emergency rescue organization system according to its own organizational structure
and Inspection Plan and actual Process for notification of potential risks Application for Extension of
requirements. so as to coordinate and implement the timely rescue in case of emergency accidents.Rectification
Safety Inspection Notice Rectification completed
Safety Inspection Checklist
6. The supervisor
approves.Emergency response
3. The Safety and Environmental
Protection Department organizes 9. The Safety and Environmental Protection
the managers or professional Department approves the rectification
technicians of each department extension report. Rapidly control the source of danger and rescue people in danger;
and office to set up a safety Approval Responsible unit for rectification After a safety Organize the evacuation of on-site personnel or evacuate them after taking inspection team.
10. Continue rectification following accident occurs the possible emergency measures according to the hazard level of the accident;
the approved emergency plan
12. The Safety and Environmental Protection Department Rectification Promptly notify units and persons who may be exposed to the accident;
reviews and accepts the rectification outcomes. shall be immediately unqualified Rectification completed launched one or Take necessary measures to prevent the expansion of the accident hazard and
Rectification qualified more of the following the occurrence of secondary and derivative disasters;
Responsible unit for rectification emergency rescue Assist neighboring emergency rescue agencies to rescue as needed and provide
Safety and Environmental Protection Department measures shall be
13. Cancel the List of Potential Safe Production 11. Feedback rectification to the
relevant technical data information and treatment methods to the emergency
Safety and Environmental Protection taken and the rescue teams;
Risks and record the rectification on the ledger. Department after completion. accident shall be Keep the order of the site and protect the site and relevant evidence;
Register of Rectification of Safe Production Risks Rectification Completion Report reported: Other emergency rescue measures according to laws and regulations.End6017 2023 ESG Report 2023 ESG Report 0628
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
5.1.4 Management system for leaders to lead the shift down the shaft 5.2 Quality Management System
The mining subsidiaries of the Company have formulated a Management System of Leaders Leading Down to the Mine Shaft. The mining subsidiaries of the Company have established a quality management system covering the whole process of
Leaders of subsidiaries and mines take the lead and go down to the shaft every month to strengthen the on-site manage- "census and geological prospecting-survey management-ore dressing-mining-production-delivery" and formulated
ment discover and eliminate potential risks and prevent unauthorized command unauthorized operation and violation of relevant management measures to ensure that the products meet the delivery quality that is stricter than the national
labor discipline to highlight the safety management in each mine by taking practical actions to embody the safety man- standards industry standards or local standards and that the sales standards of the special orders meet the customers'
agement concept of "solving problems in the shaft and focusing on the site". Leaders shall carry out "two simultaneous and special technical requirements.three inspections". "Two simultaneous" refers to the leaders and workers going up and down the shaft simultaneously; "three
inspections" refers to the inspection of potential risks and unsafe behaviors the causes of potential risks and the treatment
of potential risks. Census and geological
prospecting Survey management Ore dressing
Incorporate the ore quality manage- Dai ly surveying involves control Promote the application of scientific
ment into the basic content of the surveying construction surveying research technical reform assis-
mining geological process prepare drawing data project acceptance tance and application of the four
5.1.5 Outsourcing security management annual quarterly and monthly quality and management of survey ing news (new technology new tech-
plans according to the annual mining instruments. niques new materials new equip-
The Company has formulated a series of rules and regulations such as the Measures for the Management of Production plan and the mining geological grade ment) in ore dressing; improve the
Outsourcing to strengthen the management of production outsourcing units prevent and control risks eliminate potential indicators issued by the Company management level of ore dressing
and set up quality indicators. through standardization and refined
safety dangers assist the production outsourcing units to improve the quality level of engineering and construction and
management.prevent various accidents. All outsourced construction units shall obtain relevant qualifications such as safety production
permits and business licenses and shall sign outsourcing contracts in accordance with the Measures for the Management of
Tenders and the Measures for the Management of Contracts. The Company carries out quality progress supervision and safety
supervision for outsourced construction units by implementing a dynamic evaluation and elimination system which is based
on safety management indicators project completion indicators project quality indicators and site civilization indicators and
recording is required. For outsourced construction units that fail to meet the Company's requirements for each indicator they Delivery Production Mining
will be terminated from the labor contract and substituted by other units. Delivered products shall comply with Test raw and auxiliary materials; Continuously improve the technical
mandatory nat ional standards Referring to the definition of Guide for and economic indicators and pro-
industry standards and local stan- standardization--Part 1: Standardiza- mote the normalization standardiza-
dards on safety and health require- tion and related activities--General tion and scientification of mining
ments as well as recommended vocabulary (GB/T20000.1-2002) the technology management.national standards industry stan- Company has formulated techno-
dards and local standards declared logical standards according to the
by the Company and meet the company's situation improving the
company standards that are stricter process technology management
than the above standards; spe- and enhancing the production pro-
cess control;
cial-order products shall meet the
Develop internal control standards
special-order sales standards;
that are stricter than national stan-
Strictly control non-conforming prod- dards industry standards local stan-
ucts in incoming raw materials pro- dards or filed product standards as
duct ion process and export of well as process product standards to
finished products and strictly prohibit ensure and improve product quality;
non-conforming products from unin- Sampling sample preparation and
tended use or shipment. inspection of samples in the produc-
tion process are carried out in accor-
dance with Iron Mines-Sampling and
sample preparation procedures
(GBT10322.1-2000) Iron Mines —
Determination of total iron content —
Determination of total iron content.Titanium (II I) chloride reduction
potassium dichromate t i t rat ion
m e t h o d s ( r o u t i n e m e t h o d s )
(GB/T6730.65-2009) and relevant
regulations and standards of the
Company.0619 2023 ESG Report 2023 ESG Report 7002
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
5.3 Construction of Smart Mines
2004
Dazhong Mining focuses on the development goals of mechanization automation informatization and intelligence
upgrades and transforms the industry with Internet thinking promotes the deep integration of sensor technology automatic
control industrial Internet big data artificial intelligence robotics and cutting-edge techniques with its operation and 2009
introduces new technologies and modes through integrated development to build a smart brain with comprehensive
sensing automatic uploading real-time monitoring analyzing and decision-making and collaborative control so that the Implement the intelligent surface water supply system which has realized the unattended operation of
concept of "digital intelligence" mine development is carried through the whole process of mineral resources development each pumping station and intelligent water distribution control.and utilization; in addition the Company strives to build a 'four-advances' (new industrialization agricultural modernization
new urbanization and informatization) smart mine with rich characteristics and a safe efficient green and intelligent mode 2013
to achieve high-quality development. The Company was recognized as a national high-tech enterprise in 2017. During the
reporting period the Company was listed as one of the first batch of high-tech enterprises identified and reported by Inner Dazhong Mining completed online monitoring system for tailing ponds with real-time monitoring data
Mongolia for filing in 2023 once again successfully approved by the National High-Tech Enterprise Recognition. uploaded to the local emergency management platform.
5.3.1 Intelligent operation 2015
Jinrisheng completed an online monitoring system for tailing ponds with real-time monitoring data
The Company makes full use of advanced sensor technology IOT technology information transmission technology uploaded to the local emergency management platform.automatic control technology and video monitoring technology to construct automated monitoring and control systems for
all major production links thus achieving the automatic control of the whole process from mining ore dressing tailings and
auxiliary systems and accelerating the pace of the construction of unmanned mines thereby driving the high-quality 2019
development of the Company with "digital intelligence". During the reporting period the Company introduced the equipment
of Shanghai Baosight Software Co. Ltd at a high price and carried out the overall informationization planning realizing the Implement remote and centralized automation control of main and auxiliary shaft hoisting
integration of business and finance the convergence of management and control the coverage of the system and the underground ventilators drainage pumps and surface compressor systems realizing intrinsic safety
unification of the infrastructure. management and achieving the safety management goal of "safety comes from unattended or
fewer people".Mechanical mining 2020
The underground mines of the Company have adopted the whole-process mechanized equipment for mining operations.The Company has introduced imported equipment such as the Epiroc ST1030 shoveling machine Epiroc Simba1254 Implement the building of a three-dimensional preventive management system and informationization
medium-hole cart Charmec MC605 charging cart Boomer K111 tunneling cart and more which provide comprehensive system for safe production with risk classification and control potential risk investigation and
support for various mining processes such as tunneling rock drilling mining spraying anchor support skidding material management as the core management system so that safety management can be truly
transportation charging concrete mixing refueling of vehicles and tire replacement. implemented in post-operation and on-site maintenance."The most powerful operation brain" with diversified digital intelligence systems 2021
The Company actively cooperates with renowned companies in the industry to create diversified digital intelligence systems Carrying out automation research of filling station to realize automatic adjustment of sand discharge
and enhance its safety management and operational capabilities. flow filling concentration flocculant supply etc.Conducting automation transformation of 35kV substation to realize remote centralized monitoring and
unattended on-site operation.
2022
Complete the building of the Dazhong Mining Industry Intelligent Scheduling and Control Platform;
The Company has established "six safety systems" including underground personnel positioning
monitoring and control emergency risk avoidance pressure wind self-rescue water supply and rescue
and communication and liaison. In 2022 the Company installed a face recognition monitoring system
at each wellhead to supervise the authentication of personnel going down the wells with information
technology.
2023
Research and implement the automatic system of ore dressing to realize the automatic control of the whole
process from grinding and screening milling and sorting filtration and dewatering to tailings delivery.701 2023 ESG Report 2023 ESG Report 072
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
5.3.2 IPR
The Company adheres to technological innovation as the engine of development and has been recognized as a national
Case: Dazhong Mining Intelligent Scheduling and Control Platform high-tech enterprise and an enterprise research and development center in Inner Mongolia. The Company adheres to the
idea of scientific and technological innovation of "intelligent manufacturing and win-win cooperation" continues to increase
The Intelligent Scheduling and Control Platform of Dazhong Mining constructed in 2022 collaboratively controls investment in scientific research and steadily realizes the core competitiveness of "intelligent manufacturing". The Company
production and operations through man-machine display and live-action video command and control solving the and its subsidiary Anhui Jinrisheng Mining Co. Ltd. established Dazhong Mining Iron Concentrate Research and Development
issues of the dispersed central control room and poor information synergy facilitating the flattening of production Center and Jinrisheng Mining Science and Technology Research Institute respectively and have invested a total of CNY 149
technology scheduling and human resource management thus increasing the labor efficiency by 20%. The Platform million in research and development. A large number of advanced research results have been achieved.enhances the application effectiveness of video application data resource supervision and scheduling resource
positioning auxiliary decision-making emergency command through real map and visualization improves the
digitization visualization and intelligence and develops the incubation pool of AR-augmented reality VGIS real video CNY 152.1984 million
technology video intelligent analysis and in-depth application of business scenarios.CNY 122.1812 million
an increase of 24.57% compared with 2022
accounting for 3.80% of revenue.Research investment in 2022 Research investment in 2023
By the end of 2023
Utilizing technologies such as autonomous navigation dynamic
monitoring and intelligent analysis the Company introduces a there were 347 60 and 283 patents
four-legged intelligent inspection robot dog which carries out R&D technicians new patents obtained in total
inspections autonomously according to pre-set routes and
inspection schedules and displays video images and inspection
routes in real-time on the scheduling platform. Powered by AI
algorithms the robot dog automatically identifies meter readings The Company attaches great importance to the construction of the intellectual property (IP) protection system and
and determines whether equipment foot bolts are loose; by carrying
infrared thermal imaging cameras the robot dog automatically constantly improves patent declaration and subsequent maintenance to ensure independent intellectual property rights in ▲Intelligent Inspection Robot Dog
measures the temperature of the ball mill's axle tiles and motor bearings realizing the automated and intelligent key areas and independent and controllable core technologies to eliminate any form of infringement of IP rights. In terms of
inspection of key facilities and equipment in the milling and selection workshop. The abnormalities found during the mining technology Dazhong Mining adopts the stage-airfield subsequent filling mining method which is one of the
inspection are automatically transmitted to the scheduling and control platform. The Company adopts advanced cutting-edge mining methods in China effectively reducing the discharge of tailings to the surface tailing ponds and greatly
video technology big data analysis and artificial intelligence algorithms. By using visible light cameras and infrared improving environmental management. In the four advances construction the Company continues to strengthen
temperature measurement cameras in specific areas the Platform automatically identifies abnormalities such as automation mechanization informationization and intelligent investment. The automatic control projects in mining dressing
personnel violations and over-temperature of equipment automatically warns in the event of abnormalities and and filling processes require recording the relevant indexes in the automation system and realizing the remote automatic
utilizes AI algorithms to realize behavioral safety and equipment operation safety monitoring. It enhances the control of start-stop operation. The auxiliary system project in the Shujigou Iron Mine achieves the one-button operation intelligent
personnel's unsafe behaviors using mature and stable technology. Under the premise of ensuring a high recognition loading of ores and unmanned operation; and the projects on the application of continuous filling and gelling agent at the
rate and a low false alarm rate it carries out real-time monitoring recognition early warning and forensics for filling station and the three-dimensionally visualized safety system have achieved satisfactory results.personnel unsafe behaviors (such as failure to wear helmets and crossing the fence) in key control areas in the plant
to improve the efficiency of supervision and intelligence of the production process. In key control areas such as
substations and distribution rooms the infrared thermal imaging camera is used to carry out all-around control
upload data in real-time provide early warning of potential over-temperature and other conditions and provide 5.3.3 Information security
on-site video and pictures. In case of over-temperature lightning strikes and other events causing equipment high
temperature or fire the alarm can be issued in time and the platform can be connected to conduct intelligent analysis The Company and its subsidiaries have established information security and protection mechanisms and strengthened
and early warning. equipment and system maintenance. During the reporting period no privacy leakage or other information security leakage
occurred.Intelligent Scheduling and Control Platform0731 2023 ESG Report 2023 ESG Report 7042
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
5.4 Construction of Safe Mines 5.4.2 Safety management training
5.4.1 Occupational health and safety management system The company has established a long-term mechanism for safety management and training and continues to strengthen
the safety education and training of the headquarters and subsidiaries so as to enhance the safety awareness quality and
Dazhong Mining strictly implements the requirements of laws and regulations such as the competence of the employees and effectively eliminate and reduce casualty accidents. New employees and transferred
Law of the People's Republic of China on Prevention and Control of Occupational Diseases employees shall receive three-level (company workshop and team) safety education. Company-level safety education
and the Measures for the Supervision and Administration of Employers' Occupational Health Reporting period refers to the safety education carried out by the Safety and Environmental Protection Department for new employees
Surveillance to build an occupational safety and health management system. All Company staff safety workshop-level safety education is carried out by the center and department where the new employees work and
employees (including interns) shall be trained in occupational hygiene and occupational team-level safety education is carried out by the team and position where the new employees work. The Company carries
disease prevention and control laws and regulations knowledge of labor protection and the and health training out three-level safety education for new employees and transfers employees every month.usage of protective equipment before they start work and shall only be allowed to start Coverage rate 100%
work after they have passed the examination; occupational health education is included in
the three-level education for employees. During the reporting period the coverage rate of
safety and health training for the Company's employees was 100%.The Company provides employees with one health checkup every year with an annual
health checkup rate of 100% for employees and establishes occupational health files for the
employees including the employees' occupational history history of exposure to
occupational disease hazards the results of occupational health checkups the results of In 2023
treatments diagnosis and treatment of occupational diseases and other relevant personal the company's
health information. Employees who suffer or may suffer from acute occupational disease work-related fatality
during production and operation shall be promptly rescued or medically observed and
recorded in the personal health files. rate for each mining
enterprise was 0 ▲Safety Theme Month and Fire Safety Training
The Company has established an employee injury relief and management system to
provide timely relief to employees injured at work and give them appropriate compensation
and work injury leave to protect their rights and interests. In 2023 the company's
work-related fatality rate for each mining enterprise was 0.Disease relief and mental health assistance
The Company and its subsidiaries are equipped with medical rooms which provide
employees with medical services bridge channels for mental health relief and organize
regular psychological training for employees.▲Fire Safety Training
Protection against occupational diseases
For the potential occupational disease risks in the mining industry such as diseases caused by exposure to dust radioactive
substances or other toxic and hazardous factors management regulations are formulated; occupational disease protective
equipment that meets national occupational hygiene standards is provided to employees and employees are supervised
and guided to wear and use them correctly; protective facilities are established and a protection system is developed to
standardize the process of protection so that the health and safety of the employees are effectively given the first priority.The Company carries out regular maintenance and inspection of occupational disease prevention equipment emergency
rescue facilities and personal protection supplies; regularly tests their performance and effect to ensure that they are in
normal condition; configures protective equipment and alarm devices for radioactive workplaces and ensures that staff
exposed to radioactivity wear personal dosimeters; and equips with heat-prevention medicines for the prevention of
high-temperature heatstroke. Anhui Jinrisheng Mining Co. Ltd. conducts occupational hazards testing once a year and
occupational hazards status evaluation once every three years. The Company provides dust collectors and noise detectors
and offers regular medical checkups for employees. ▲Emergency Response Training ▲M Occupational Health and Safety Protection Train▲inHgigh-altitude Operation Training7051 2023 ESG Report 2023 ESG Report 0726
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
06
To Be A Responsible Employer
6.1 Talent Management System
6.2 Employee Rights and Interests
6.3 Promoting Employee Development
6.4 Creating a Happy Mine0717 2023 ESG Report 2023 ESG Report 0782
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
6.1 Talent Management System
6.1.1 Management concept and strategy
Talent management concept people-oriented
Reform to implement the partnership
Introduce new management mode Talent system. Each person should not only management
and advocate the new enterprise strategy care about the benefits of their small
culture of "happy work happy life". team but also care about the overall
benefits to truly realize that everyone is
an operator and everyone is a partner.Matrix management
The centers of Dazhong Mining and the departments and offices of each subsidiary company efficiently achieve the
goals of the enterprise through the management of horizontal coordination and vertical business guidance working in
accordance with the rules of procedure of the four meetings of the General Meeting of Shareholders Supervisory Board
Board of Directors and Manager's Office and the Table of Approval and Delineation of Management Authority. Employees are
subject to the guidance and approval of functional departments in business while coordinated and supervised by
executive leaders in administrative fields.Basic principles of employee management
Performance Departments and employees at all levels take completing their performance objectives
management as the basic criteria; work performance is determined as the target bonuses and position
promotions for all levels of departments and employees.Rules must be followed Each employee shall strictly abide by the Company's rules and regulations; for any
violations must be
investigated violation the Company will be held accountable in accordance with the relevant
provisions.Dazhong Mining always takes being a mining group recognized by employees as one of its visions and adheres to the The Company takes competition as the basic guideline for the selection of management Competition personnel based on each employee's virtue responsibility ability diligence and
people-oriented approach to developing with employees. The Company is committed to attracting talents with excellent
performance.ability and like-mindedness treating every employee as a partner of the Company providing a broad development platform
and a good working atmosphere providing opportunities and creating a stage for the development of the staff constructing Appraisal of rewards Employee rewards and punishments should be based on appraisal results and strive to
interdependent enterprise-employee relationship caring real difficulties in staff's life and jointly building a happy mine that and punishments be fair just and reasonable.is full of vitality health and upward mobility solidarity and cooperation positive and enterprising and rich in a sense of The Company establishes a reasonable incentive mechanism and a scientific and objective
mission and sense of responsibility.Terminal elimination appraisal system and implements normal elimination for employees at the bottom of the
appraisal results in order to continuously improve the overall quality of employees.Timeliness All work must be completed within a specified time frame with an emphasis on timeliness.Departments and positions are set up based on the principle of saturated workload
Saturated workload thus streamlining organizations and personnel and improving efficiency.7091 2023 ESG Report 2023 ESG Report 0802
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
6.1.2 Management mechanisms and initiatives 6.2 Employee Rights and Interests
6.2.1 Law-based employment
Creating a like-minded team
The Company advocates good teamwork and expects talents from various levels various professions and various Dazhong Mining always adheres to the principle of equal and legal employment and strictly fulfills the national laws and
backgrounds. The effective implementation of the "all over the world" principle of selection unites everyone in the regulations such as the Labor Law of the People's Republic of China Labor Contract Law of the People's Republic of China Law of the
Dazhong Mining platform to work together so that the Company's team of talent continues to improve and grow People's Republic of China on the Protection of Minors and Regulations on the Prohibition of Child Labor. Any discrimination involving
amid fierce competition. gender age race ethnicity religious beliefs nationality as well as child labor illegal employment and forced labor are strictly
prohibited in the recruitment process of the Company. Employees are hired under labor contracts in accordance with the
The Company expects like-minded talents. Only the same idea the same goal the same practice and the same law.norms can harmonize cooperation. Under the team model of "like-mindedness" the Company creates the team
style of "working together" and creates the cultural atmosphere of "overcoming oneself and innovative
management". Team first talent second. The Company adheres to the principle of selecting outstanding talents In 2023
who agree with the culture of Dazhong and maximizes the interests of the Company and individuals with culture as
the background and spirit as the main theme. there were of which 1043 87 were
1229 were recruited graduates
new employees from the society
Up-to-date university student training During the reporting period the signing rate of labor contracts in the Company was 100%
The Company continuously improves and strongly builds the college student training system and promotes the and neither the Company nor its subsidiaries had any incidents of child labor or forced labor.reserve force youth forbidden army program for each college student. The Company provides a perfect career
development and training system sets up 6-12 months of internship training period takes centralized training and
master with apprentice follow-up training combination and determines the future development direction of each In terms of talent introduction the Company has established and improved the internal recommendation system
person. One person one program for the entire training. Promote the rapid growth of each individual through encouraging all employees except those in the Human Resources Department to recommend outstanding talents for
stage-by-stage assessment. employment based on the principle of avoidance of relatives. To this end the Company has set up a special "Pearl Award"
in which all employees other than those in the Human Resources Department are encouraged to recommend talents to the
In the mature training stage we have established a full-cycle management model with multiple promotion and Company in accordance with the requirements of the Company's opening positions. If the recommended person meets the
development channels for management sequence professional sequence and skill sequence. Implement Company's standard requirements for specific working hours after joining the Company the recommender will be given
measures such as quarterly debriefing cadre training annual competition grade evaluation skill appraisal to corresponding rewards depending on his/her position.provide employees with a broad career development stage such as job promotion title advancement and job
transition.Senior management team with a strong industry background and outstanding manage-
ment capabilities
The core management team of the Company has rich experience in mine exploration extraction smelting
construction and operation management and has a deep understanding of industry technology and industry
development trends strong strategic planning capability and efficient execution capability. Most of the executives of
the Company take the roles of both managers and shareholders their stability and cohesion is conducive to the
long-term development of the Company.Strengthening the middle employees
Focused enhancement of staff development and optimization of the organizational structure.081 2023 ESG Report 2023 ESG Report 802
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
6.2.2 Diversity in employee structure 6.2.3 Remuneration and performance management
The Company is committed to creating a diverse equal and inclusive work environment eliminating all forms of
discrimination insisting on the setting of positions based on business hiring talents based on performance and promoting Systems and mechanisms
based on merit. As of December 31 2023 the total number of full-time employees of the Company was 3811 all of whom
were Chinese nationals achieving diversity in terms of gender background education field of specialization and ethnicity. The Company has formulated a series of systems such as Remuneration Management Measures Remuneration
Confidentiality Measures Attendance Management Measures KPI Performance Assessment and Quantitative Assessment
Structure of Full-time Employees in 2023 Management Measures for Incremental Work to standardize the Company's remuneration management give full play to (Unit: persons %)
the safeguarding and motivating roles of the remuneration system stimulate the enthusiasm of the employees
improve the ability to hold office and improve their work performance and ensure the continuous enhancement of the
Gender structure of employees Employee grade structure Company's core competence and the realization of the Company's long-term goals.Male Female Supervisor and above Staff Worker
The Board of Directors of the Company has set up the Remuneration Incentive and Assessment Committee which is
548 responsible for formulating the outline of remuneration assessment and incentive; supervising and promoting the 328 8.61%
14.38% formulation and decomposition of remuneration incentive and assessment programs; reviewing and checking the
implementation of remuneration incentive and assessment programs; reviewing and approving the planned task
objectives (output and cost) position salary standards position establishment (based on the determination of labor
1377 productivity) of the units and reviewing and approving the contracted unit price of the units' output; building the
36.13% information technology system of the remuneration accounting system. In addition the Company has hired
consultants from China Stone Management Consulting Ltd. to guide the construction of the remuneration system
3263 2106 which is independent of the organization the supreme governing body and the executives. The Company formulates
85.62% 55.26% the remuneration quantification plan through the Management Measures for Quantitative Assessment of Remuneration and
Management Measures for KPI Performance Assessment and Quantitative Assessment of Incremental Work confirms it with the
appraisees and the Remuneration Committee and implements it after unanimous agreement.Employee age structure Employee education structure
Age 18-30 (excluding 30) Age 30-50 Age 50 and above College and below Bachelor Master and above
870 22.83% Competitive remuneration
73819.36%
12 The Company adheres to the principle of equal remuneration for men and women provides employees with
0.31% competitive salaries and pays five social insurance and one housing fund. The Company determines the value of
487 positions and position remuneration through position value assessment. The Human Resources Department
12.78% regularly conducts external market research on salary levels takes into account factors such as regional wage
3312 increases and the Company's operating efficiency and puts forward proposals for salary adjustments which are
86.91% submitted to the Salary and Performance Management Committee for approval and implementation. The salary
2203 57.81% levels and starting salaries of the Company's subsidiaries maintain the upper-middle level of the industry in the local
regions. Employee annual performance appraisal meets the promotion standard or the ability to promote a salary
following the relevant provisions of the promotion of job salary standards.New Employee Structure of Dazhong Mining in 2023 (Unit: persons %)
Gender structure of new employees The age structure of new employees Educational structure of new employees The ratio of standardized starting wage to local minimum wage by gender in 2023
Male Female 1Age 18-30 (excluding 30) Age 30-50 College and below Bachelor
Age 50 and above Master and above The ratio of starting wage to local The ratio of starting wage to local
minimum wage for male employees minimum wage for female employees
19015.46%725.86%90.73%
Inner Mongolia . .
24219.69%
Anhui . .
468
38.08% Sichuan . .
1039689
84.54% 56.06% 978 79.58% Hunan . .8013 2023 ESG Report 2023 ESG Report 8024
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.The Company has set up a KPI performance appraisal and monthly salary is issued according to the KPI performance
appraisal and quantitative assessment of incremental work aiming at activating the employees' subjective initiative and 6.2.5 Labor protection
enhancing the contribution of personal value. Employees with incremental work in addition to the completion of their duties
are given additional incremental salary in addition to the salary standard while those without incremental work are not given The Company insists on the reasonable employment of labor and eliminates the fatigue operation and overload work of the
incremental salary; all incremental work is subject to quantitative assessment. During the reporting period the employee employees. The Company strictly carries out overtime management. The working hours can be extended after consultation
coverage rate of the Company's performance appraisal was 100%. with employees due to the needs of production and operation; overtime work should be initiated by the employees in the
attendance system one day in advance and approved according to the approval authority; the overtime work shall be
The Company's salary structure generally consists of fixed income (basic salary for the position) variable income carried out according to relevant regulations in China. Female employees who are pregnant or breastfeeding after giving
(performance pay piece-rate pay quantitative assessment pay) statutory and discretionary benefits seniority educational birth shall not be arranged to work overtime. If an employee returns to work early during the vacation period and has to adjust
allowances or subsidies and various incentives. The actual basic salary of the position is linked to the employee's monthly the vacation time the employee shall report to the Human Resources Department to cancel the vacation.attendance and the variable income varies according to the position category. Floating income for management positions
includes performance salary and quantitative assessment salary of which performance salary is linked to the incumbent's The company fully protects all rights and interests of employees. The termination of labor relations with employees transfer
appraisal results and quantitative assessment salary is based on the completion of work outside the historical data or of posts and renewal of labor contracts are all notified to employees one month in advance and are carried out only after
budgetary targets work to increase benefits increase work content improve service quality key management shortcomings obtaining the opinions of the employees; discrimination on ethnicity social class language religious beliefs gender age or
to improve and optimize the management process as the assessment indicators. For functional positions such as other differences is strictly prohibited in matters related to hiring remuneration training opportunities promotion dismissal
administrative professional and technical positions and production positions the variable income includes performance or retirement. The Company makes human rights protection a mandatory part of pre-employment training for employees
pay and production pay and production pay is paid according to the completion of production tasks. For piecework security personnel and supplier due diligence. All security personnel have received relevant training.positions the variable income is based on piecework salary which is paid monthly according to the approved unit price * the
actual amount of completed tasks.Salaries of the company's executives are all linked to the assessment of net profit production safety environmental 6.2.6 Democratic Management
protection and other indicators; the salaries of the Company's actual controllers directors and executives are announced to
the public every year. Dazhong Mining and its subsidiaries have established a Labor Union Committee in accordance with the law and have
formulated systems such as the Statute of Labor Union Committees and Collective Bargaining Agreements to represent and
The ratio of basic wages and remuneration of men and women by region 2023 (%) safeguard the interests of employees and work independently and autonomously in accordance with the law under the
leadership of the Group's General Labor Union. The Company's employees voluntarily participate in the Labor Union. As of
Inner Mongolia Anhui Sichuan Hunan December 31 2023 the coverage of Labor Union employees was 100%.The ratio of basic salary to
remuneration for male employees 51.48% 51.21% 58.76% 48.73% Safeguarding the legitimate rights and interests of workers and serving them wholeheartedly are the basic duties of the
The ratio of basic salary to remuneration Labor Union. The Labor Union promotes a sound mechanism for the coordination of labor relations safeguards the labor
for female employees 54.04% 51.00% 57.19% 67.30% rights and interests of employees and builds harmonious labor relations through the system of equal consultation and
collective contracts; in accordance with the provisions of the law it organizes the participation of employees in the
democratic election democratic consultation democratic decision-making democratic management and democratic
6.2.4 Employee benefits supervision of their units through the workers' congresses or in other forms; and it establishes a system of Labor Union work
that is broadly based on contact with and service to the employees closely liaises with the employees listens to and
Employees are entitled to leave rights and benefits such as legal holidays marriage leave funeral leave personal leave sick reports the opinions and demands of the employees cares for the lives of the employees assists the employees in solving
leave work injury leave and breastfeeding leave travel reimbursement and labor insurance supplies in accordance with the their difficulties and serves the employees wholeheartedly. The Company has established a staff opinion and feedback
law. In addition the Company puts the concepts of emphasizing talents and caring for talents into practice and provides mechanism. The Labor Union has set up employee groups and suggestion boxes to deal with employee feedback and
diversified additional benefits and services for employees by considering the actual needs of their work and life. The complaints in a timely manner listen to employee opinions and suggestions continuously improve and optimize work
Company provides subsidies for employees working in plateaus; provides underground meal service for employees working methods and enhance the employees' sense of belonging and identity. In addition the Labor Union plays an active role in
in wells; distributes relevant benefits for employees during holidays and offers condolences to employees by Labor Union; mobilizing and organizing production team training building a team of employees who have dreams and keep their faith
and implements the system of subsidies for employees' house purchase benefits in the subsidiaries in Hunan and Sichuan. understand technology strive to innovate and have the courage to take on responsibility and dedication.0851 2023 ESG Report 2023 ESG Report 0826
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
6.3 Promoting Employee Development
6.3.1 Career development system and mechanism Vertical promotion channels
The Company has formulated the Management Measures for Employee Promotion and Advancement the Management Measures Position SN Channel
for Position Ranking and Career Development the Management Measures for Worker Technical Rank Evaluation the Management
Measures for Professional and Technical Title Rank Evaluation etc. and established a career development system. According to
Employee level - Supervisor level - Department level -
the different nature of each position the Company has set up management sequence post professional sequence post Management positions and professional positions
Executive level
technical sequence post and operation and maintenance sequence post thus providing two career development paths for
employees realizing coordination and unification between the Company's human resource needs and employees' individual
career development needs and maximizing the exploration cultivation and retention of the company's talents. The Company By technical title assessment the promotion is Assistant
builds a bottom-up promotion mechanism to enhance the overall performance of the company's talent team promote the Technical positions Engineer (II I) - Engineer (III II I) - Senior Engineer (III II I
standardization and proceduralization of employee promotion management and allow employees to realize their value give Chief Senior Engineer)
full play to their value and create value for the company.Each department head serves as a counselor for the career development of its employees and provides career
By skill assessment the promotion is junior laborer -
development counseling for the employees; each human resources department is responsible for the establishment of
Operation and maintenance positions intermediate laborer - senior laborer - technician (III II I) -
employee career development files and for the storage and timely updating of the files; the career development files include
senior technician (III II I)
the plan form for the employee's career development the employee's training needs the assessment and the training
records etc. which serves as the basis for the adjustments of the career planning.Employee career development diagram Horizontal position change
Depending on the development needs of the In principle employees are given an assessment
Company the actual situation of the employees period of 3-6 months when they change positions. If
and their career interests the employees have the the employee passes the assessment period he/she
opportunity to change between different channels will be changed to another position; if he/she fails to
for development but the change shall be in line with pass the assessment period he/she will be arranged
Vertical job promotion the corresponding job requirements. as required.Employees in the corresponding sequence receive
vertical development. The Company prioritizes the
promot ion and deve lopment opportun i t ies for
hard-working employees with outstanding performance
and ability and implements the principle of competition
and merit-based recruitment. The Company eliminates all forms of As of the end of 2023 the Company had 2
discrimination in terms of gender ethnicity female executives accounting for 6.66%
and region in the promotion of employees of the total number of executives.Horizontal channel conversion and selection of executives.In add i t ion to the p romot ion o f employees in
accordance with the requirements of the job hierarchy
under the job sequence the Company also provides a
platform and opportunities for cross-sequence growth.In the case of job vacancies the company will give
Regional structure of executives in 2023
access to job adjustments training and development
through the assessment.Number of executives Number of local executives Percentage of local executives
Inner Mongolia 27 11 40.74%
Anhui 8 2 25%8071 2023 ESG Report 2023 ESG Report 0828
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
6.3.2 Employee training Intensive training for management trainees
The Company provides employees with diversified training such as induction training on-job training in-service training
promotion training special short-term training and special lecture training and opens up online and offline learning During the reporting period the Company conducted 4 intensive training sessions for management trainees
channels to help employees improve their professionalism and professional skills. Newly recruited employees are required to
covering all units of the Company and its first-grade subsidiaries for a total of 10 days with 157 trainees
complete 72 hours of three-level safety training and education and pass the examination before they are allowed to work.The Company actively encourages employees to further study in colleges and universities or professional training institutions and a total of 27 instructors engaged in the training.including degree studies induction training title and qualification examinations training. The completion (graduation)
certificates and transcripts of the employees of further study shall be reported to the Human Resources Department for filing
which serves as a reference basis for deployment selection as well as appointment and dismissal; and the Company
irregularly dispatches personnel for training according to the development of the enterprise and the actual demand.To pass on the internal expertise and work experience the Company has formulated the Management Measures for Internal
Part-time Lecturers selected employees within the Company who have excellent professional skills good work performance
and willingness to be trained and created a team of professional efficient and innovative internal lecturers to conduct
training lectures and upload the lectures onto the internal training platform for employees self-learning.
2023 Dazhong Mining Training Performance Specialized skill improvement training
Total hours of employee training: Of which 15513 hours Mining 3D software training: Dazhong Mining and all subsidiaries organized professional development
16576.83 hours 1063.83 hours of offline training of online training training for colleagues in the field of geodesy and mining with a total of 355 participants and a total of
24 hours of training; the training was completed in eight phases of primary and intermediate courses.
Cumulative number of employees participating in training: 3853 Special training for improving the business capacity of human resources: 6 training sessions were
Average number of annual training hours for a single employee: 4.3 hours organized with a total of 79 participants and 11 hours of training.Training for team leaders and section chiefs of Anhui Jinrisheng Mining Co. Ltd: a total of 394
participants and 18 hours of training.ESG thematic training
Training by internal part-time lecturers
During the reporting period the Company organized ESG thematic training focusing on ESG basic
concepts basic theories ESG ratings and ESG typical enterprise cases with a total of 103 participants
During the reporting period three internal part-time lecturers conducted a total of 5 special training activities and 3 hours of training to assist the heads of various departments and subsidiaries to have a
with a total of 82 participants and a total of 5.5 hours of training. comprehensive and in-depth understanding of the development trend and requirements of ESG and to
thoroughly implement the ESG matters.8019 2023 ESG Report 2023 ESG Report 0902
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
6.4 Creating a Happy Mine Assistance for employees with difficulty
The Company is not only creating good working conditions for its employees but also paying keen attention to their lives. The Company takes comprehensiveness and continuity as the entry point formulates helping measures in line with the
Through ongoing employee care the Company assists employees in difficulty and other initiatives continues to improve characteristics of the enterprise and the needs of the employees carries out the work of helping employees with difficulty
employee satisfaction and happiness index and creates a happy company that is truly recognized by its employees. and improves the pertinence and effectiveness of the assistance.Employee care Measures to Help Employees with Difficulty
The Labor Union establishes files of employees with difficulty knowing the family situation
Employee Care Mechanism and Initiatives Establishment of
difficult employees' files economic situation health condition and other information of the employees which provides
evidence for the assistance.The Company organizes employees to participate in various kinds of cultural and Regular visits and The Labor Union pays regular visits to employees in difficulty to learn about their difficulties and
Caring for sports activities to enrich their spare time life and enhance their physical and mental condolences needs and provides them with the necessary support.employees'
life health. For example we hold "May Day" cultural and sports activities "New Year's Day"
cultural and sports activities cultural performances and staff travel. Providing vocational The Labor Union provides vocational training and employment guidance to employees in
training and difficulty helping them to improve their skills and qualities and promoting their employment or
employment guidance change of jobs and business start-ups.Assisting in applying for The Labor Union assists employees in difficulty in applying for social assistance providing
The Company has set up the Employee Care Fund which is used to help families and social assistance certain living subsidies to employees in difficulty to solve their living difficulties such as
Employee employees in difficulty and enhance the cohesion and centripetal force of the unemployment insurance hardship assistance disaster assistance.Care Fund enterprise. For example we have carried out activities such as relief of difficulties love
The Labor Union builds a support platform making use of internal and external resources of
donations charitable donations and condolences. Setting up a support the enterprise to provide support and assistance to employees with difficulty in terms of
platform employment counseling entrepreneurial guidance and skills training.The Labor Union pays attention to the mental health of employees with difficulty and provides
Concerning mental
The Company cares about employees' families. We conduct regular interviews and psychological counseling and assistance in daily life to get out of difficulties and enhance their health
Employee surveys with employees to understand their work and life conditions assist
confidence and courage.care system employees in solving family issues and provide employees with services such as
business counseling psychological counseling mediation of family conflicts and
disputes and health checkups.Case: Solving urgent needs for the families of employees who passed away suddenly
On November 22 2023 YIN Zhirong an employee of No. IV Mine Filling Station of
Career Dazhong Mining passed away at home due to a sudden myocardial infarction. The Company provides employees with career development support and guidance
development He was the sole breadwinner of his family and thus his sudden death made the
support to improve their skills and quality and promote their career development. poor family even worse. YIN Zhirong's eldest daughter who had been severely
disabled since childhood was unable to take care of herself and needed
constant bedside care while his second daughter who was attending school
was unable to bear her sister's exorbitant medical expenses and her tuition fees
alone. The leaders of Dazhong Mining attach great importance to this situation.WEI Lihui the Vice President of mining technology organized condolences several
times and the Company's Labor Union organized fund-raising. Within 20 days
Employee The Company builds an employee mutual assistance platform to encourage Dazhong Mining raised a total of CNY 66194.41 in donations. ZHANG Jun Vice
mutual employees to understand each other help each other and support each other to General Manager of Administration WEI Lihui Vice General Manager of Mining
assistance enhance the harmonious atmosphere of the Company; it focuses on communication and REN Yongliang Chairman of the Labor Union on behalf of the company
platform and exchange with employees and optimizes employee care. expressed their condolences to the family members of the deceased employee
and handed over the collected money to them. This illustrates Dazhong Mining's
responsibility of "when disaster struck help came from all sides".901 2023 ESG Report 2023 ESG Report 902
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
07
To Be a Social Duty Bearer
7.1 Win-Win Development of Industry Chain
7.2 Promotion of Common Prosperity
7.3 Responding to the Belt and Road Initiative9013 2023 ESG Report 2023 ESG Report 9024
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
7.1 Win-Win Development of Industry Chain
Dazhong Mining has always maintained a high sense of corporate responsibility adhering to the concept of common The Company continues to carry out multi-dimensional and in-depth cooperation with industry chain partners exploring
prosperity win-win development with partners and the common prosperity of the region and surrounding populations. The new opportunities developing new modes innovating new ecosystems and seeking new development together. During the
Company actively responds to the call for national policy grasping the new opportunities of high-quality development reporting period the Company successfully landed a lithium project in Linwu County Chenzhou City Hunan Province China
supported by the Belt and Road Initiative accelerating international market integration actively practicing social and completed the signing of "three sets of TBMs" and strategic cooperation with China Railway Engineering Equipment
responsibility and demonstrating corporate responsibility thus creating value for the public community and China. Group Co. Ltd. which firstly applied to lithium mine in China.0915 2023 ESG Report 2023 ESG Report 0962
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
7.12 Promotion of Common Prosperity
7.2.1 Regional economic contribution
Iron and steel are key materials for modernization and the steel industry plays an important role in socio-economic
development. Iron ore the raw material of steel has a direct impact on the output and quality of steel products. In recent
years international iron ore prices have fluctuated greatly frequently experiencing a "roller coaster" market. At the beginning Case 2: Dazhong Mining and Yangzhong City of Jiangsu Province signed the Investment Agreement of
of 2022 the National Development and Reform Commission (NDRC) together with seven ministries and commissions
including the Ministry of Industry and Information Technology (MIIT) the Ministry of Finance (MOF) jointly launched the Dazhong Mining on Mineral Processing and Commodity Trading Base in Yangzhong
"Cornerstone Program". This action aims to safeguard the supply of the iron ore resource accelerate the development of
Chinese iron ore projects reduce external dependence and fundamentally address the shortage of resources in the upper During the reporting period Dazhong Mining entered into an Investment Agreement on the Construction of a Mineral
reaches of the iron and steel industry chain. As a large-scale iron ore mining and processing enterprise in China the Processing and Commodity Trading Base in Yangzhong by Dazhong Mining with the Management Committee of
Company takes the initiative to assume social responsibility to repay China with mining. The Company and its subsidiaries Yangzhong Economic Development Zone and Yangzhong Urban Construction Investment Development Group Co. Ltd.pay close attention to the development trend of the industries in the regions where they are located actively respond to the The Company is committed to constructing a green high-quality project and a benchmark of wharf mineral
call of the regional government pay taxes following the law promote the development of related industries by mining create processing and commodity trade in the Yangtze River Region taking Yangzhong as a pivot point and linking
economic benefits for the regions where they are located and drive the development of the industries in the neighboring high-quality resources at home and abroad to access the international and domestic markets further contributing to
regions. the realization of the National Iron Ore Cornerstone Plan safeguarding the safety of the iron ore mine in China and
promoting the high-quality development of the local economic development.Case 1: Dazhong Mining Signs Investment and Cooperation Agreement with Linwu County Government
In 2022 Mr. Niu Guofeng Chairman of Dazhong Mining on behalf of Dazhong Mining was invited to participate in the
2022 World Computing Conference held in Changsha Hunan Province and signed the "Investment and Cooperation
Agreement" with Linwu County Government for investing in the development of lithium resources in Linwu County in
the presence of governments at all levels in Hunan Province and experts and entrepreneurs. It is reported that a total
of eight projects were successfully signed at the opening ceremony of the conference with a total investment of CNY
48.94 billion. As the People's Government of Linwu County allocate 10000 tons of lithium carbonate resources for
each 5GWh battery project Dazhong Mining proposed a total investment of about CNY 16 billion aiming to further
improve the company's core competitiveness and profitability while fostering a mutually beneficial and
complementary partnership between the publicly listed company and the local government leading to shared
growth and development.9017 2023 ESG Report 2023 ESG Report 0928
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
7.2.2 Practicing public welfare responsibility
The Company supports rural revitalization and rural construction and actively Case 2: Activities to respect and care for the elderly during the Double Ninth Festival
participates in charitable and public welfare activities showing its corporate
responsibility during major events and rooting the traditional virtues of the On the Double Ninth Festival in 2023 the Labor Union of Dazhong Mining visited the elderly over 75 years old in the
Chinese nation of "being positive and benevolent" in Dazhong Mining. The villages around the enterprise sending them warm gifts to show the Company's respect and love for the elderly
Company and its subsidiary Jinrisheng Mining have donated more than CNY 50 advocate for the entire society to foster a culture of respecting revering loving and supporting the elderly.million to public welfare and charity in recent years for civilization construction
charity activities rural renovation and rural recreation. During the reporting period
the Company was awarded the "China Red Cross Fraternity Medal" by the Red
Cross Society of China for its continuous contribution to the Red Cross.Case 1: A great charity in crisis
Great charity in crisis. Dazhong Mining has always acted promptly to fulfill its social responsibility with practical
actions during critical periods. In the past three years the Company and its subsidiaries have made donations in
cash to the Red Cross Society of Ejinagi Banner the Red Cross Society of Urad Front Banner the Red Cross Society of
Guyang County the Red Cross Society of Damao Union Banner the Ejinagi Finance Bureau and the Huoqiu County of
Anhui Province with a total amount of about CNY 3.75 million to support the prevention and control.Case 3: Donation of CNY 500 thousand to Bayannur charity and public welfare
On September 5 2023 the first Fortune Love-Charity
Gala of "Charity Contributes to a Better Life" in Bayannur
C i ty Inner Mongol ia was he ld in Huanghewan
Pedestrian Street Linhe District. The Company donated
CNY 500 thousand to support the Bayannur Charity
Federation.
7.3 Responding to the Belt and Road Initiative
Since 2023 the Belt and Road Initiative in China has entered a new stage of high-quality development. Dazhong Mining has
grasped new development opportunities and embraced the international market comprehensively and deeply with an
open vision and positive actions to promote the development of China's mining industry based on high international
standards and accelerate the globalization strategy and layout. Through detailed planning Dazhong Singapore Company
was registered and established on July 28 and completed the first order of international trade of iron ore which formally
▲ Donations by the Company and its subsidiaries started the road of internationalization.0991 2023 ESG Report 2023 ESG Report 10020
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.Appendixes Level Laws and regulations to be complied with Corresponding chapter
Law of the People's Republic of China on Prevention and Control of
Water Pollution
Appendix 1: Index of laws and regulations Law of the People's Republic of China on Prevention and Control of Atmospheric Pollution
Law of the People's Republic of China on Prevention and Control of
Level Laws and regulations to be complied with Corresponding chapter Noise Pollution
Regulation of the People's Republic of China on Flood Control
Criminal Law of the People's Republic of China Environmental protection 04 To Be a Green Pioneer
Law of the People's Republic of China on Environmental Impact
Assessment
Company Law of the People's Republic of China
Electric Power Law of the People's Republic of China
Securities Law of the People's Republic of China
Measures for the Administration of Voluntary Greenhouse Gas Emission
Work Guidelines for the Investor Relations Management of Listed Reduction Trading (For Trial Implementation)
Companies
Cleaner Production Promotion Law of the People's Republic of China
Measures for the Administration of Information Disclosure by Listed
Companies
Production Safety Law of the People's Republic of China
Self-Regulatory Guidelines for Listed Companies of the Shenzhen Stock
Corporate Governance Exchange No. 1 - Regulating the Operation of Main Board Listed 03. Responsibility for Governance
(Revised in December 2023) Regulations on Work Safety in Inner Mongolia ChinaCompanies
Shenzhen Stock Exchange Social Responsibility Instructions to Listed Implementation Measures for the Work Safety License of Non-coal
Companies Mining Enterprises
Anti-monopoly Law of the People's Republic of China General Office of the State Administration of Safety Supervision on
the issuance of the Metal Non-metallic Mining Safety Production
Standardization Scoring Methods
Anti-Unfair Competition Law of the People's Republic of China
Administrative Measures for the Collection and Utilization of Enterprise
Work Safety Funds
Oversight Law of the People's Republic of China
Regulation on Work-Related Injury Insurance
Enterprise Income Tax Law of the People's Republic of China
Measures for the Implementation of Work-Related Injury Insurance in the
Inner Mongolia China
Audit Law of the People's Republic of China
Interim Provisions on Requirement for Mining Enterprise Leaders to
Descend into Mine Pits with Mine Workers on Regular Shifts and
Environmental Protection Law of the People's Republic of China Supervision and Inspection of Metal and Non-metal Underground Mines
Safety and quality Circular of the Office of the Safety Committee of the State Council on Comprehensively Strengthening the Work of Enterprises on the System of 05 To Be Safety BenchmarkMeasures for the Environmental Emergency Response Management management Responsibility for the Safety of All Personnel in Production (AWB [2017] No. 29)
Regulations on the Administration of Construction Project Environmental Enterprise Safety Production Responsibility System Five Implement &
Protection Five in Place Regulations
Environmental management records and compliance reports of pollutant
emission permit technical specification for pollution sources (HJ944-2018) Mine Safety Law of the People's Republic of China
Measures for Information Report of Environmental Emergencies Law of the People's Republic of China on the Prevention and Control of
Occupational Diseases
Measures for the Investigation and Handling of Environmental Emergencies Provisions on the Supervision and Administration of Occupational Health
at Work Sites
Environmental protection Law of the People's Republic of China on Prevention and Control of 04 To Be a Green Pioneer
Environmental Pollution by Solid Waste Prevention and Control of Occupational Diseases in China (2021-2025)
Directory of National Hazardous Wastes (Version 2021) Procedures on the Screening Identification and Control of Work Safety
Accident Hazards
Measures for the Administration of Environmental Surveillance by Order of Law of the People's Republic of China on Prevention and Treatment of
the State Environmental Protection Administration (No. 39) Infectious Diseases
Environmental management systems—Requirements with guidance for use
(GB/T 24001-2016) Response Regulations for Public Health Emergencies
Provisions on the Protection of the Geologic Environment of Mines Fire Control Law of the People's Republic of China
Measures for the Management of Mineral Resource Registration Provisions on the Administration of Fire Control Safety of State Organs
Organizations Enterprises and Institutions
Measures for the Implementation of the Regulations on the Land Reclama-
tion Program Regulation on Emergency Responses to Work Safety Accidents10011 2023 ESG Report 2023 ESG Report 10022
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.Level Laws and regulations to be complied with Corresponding chapter Level Laws and regulations to be complied with Corresponding chapter
Product Quality Law of the People's Republic of China Basic Standards for Protection against Ionizing Radiation and for the
Safety of Radiation Sources
Intellectual Property Law of the People's Republic of China Labor Law of the People's Republic of China
Patent Law of the People's Republic of China Labor Contract Law of the People's Republic of China
Law of the People's Republic of China on the Protection of Disabled
Cybersecurity Law of the People's Republic of China Persons
Regulations on the Security Protection of Computer Information Systems Law of the People's Republic of China on the Protection of Women's
of the People's Republic of China Rights and Interests
Classification for resources/reserves of solid fuels and mineral Trade Union Law of the People's Republic of China
commodities (GB/T17766-2020)
Technical specification for water safety prevention and control in metal Special Provisions on Labor Protection of Female Employees
and non-metal underground mines (AQ 2061-2018)
Human resources Law of the People's Republic of China on the Protection of Minors 06. To Be Responsible
Metallurgical Mining Survey Specifications management Employer
Acceptance and Settlement Management Measures for Mine Shaft Provisions for Special Protection of Underage Workers
Construction Projects
Provisions against Child Labor
Mineral Resources Law of the People's Republic of China
Criminal Law of the People's Republic of China
Safety testing specification of in-service main dewatering system for
metal and nonmetal underground mines (AQ 2029-2010) Labor Dispute Mediation and Arbitration Law of the People's
Republic of China
Safety regulations for metal and non-metal mines (GB 16423-2020)
Regulation on Labor Security Supervision
Code for design of metal mine (GB 50830-2013) Law of the People's Republic of China on the Prevention and
Control of Occupational Diseases
Metal and non-metal mine filling engineering technical standards (GB/T Law of the People's Republic of China on Prevention and Treatment
51450-2022)
Safety and quality 05 To Be Safety Benchmark of Infectious Diseases
management Safety regulation for tailings pond (GB 39496-2020) Civil Code of the People's Republic of China
Technical regulations for the tailings pond safety monitoring (AQ 2030-2010) Partnership Enterprise Law of the People's Republic of China
Safety regulations for blasting (GB 6722-2014) Contract Law of the People's Republic of China
Measures for the Administration of Information Disclosure by Listed
Technical standards for mine ventilation facilities Companies
Ventilation technical standards for metal and nonmetal underground mines Company Law of the People's Republic of China
ventilation system (AQ 2013.1-2008)
Safety regulations for metal and non-metal mines (GB 16423-2020) Labor Law of the People's Republic of China
Production Safety Law of the People's Republic of China
Iron ores-Sampling and sample preparation procedures (GBT10322.1-2000)
Business and strategic
Iron ores (sinter and pellets)--Sampling and sample preparation for physical Environmental Protection Law of the People's Republic of China 03. Responsibility for Governance
testing (GB 10122-1988) cooperation and supply 07 To Be Social Duty Bearer
chain management Enterprise Income Tax Law of the People's Republic of China
Iron ores - Determination of total iron content - Titanium(III) chloride
reduction potassium dichromate titration methods (routine methods) Audit Law of the People's Republic of China
(GB_T6730.65-2009)
Safety of chemical laboratories—Technical standards for conducting Anti-monopoly Law of the People's Republic of China
metallurgical analysis (GB 2595-1981)
Identification of major hazard installations for hazardous chemicals (GB Anti-Unfair Competition Law of the People's Republic of China
18218-2018)
Law of the People's Republic of China on the Protection of Minors
Technology standard for backfill engineering in metallic and non-metallic
mines (GB/51450-2022) Provisions for Special Protection of Underage Workers
Law of the People's Republic of China on Prevention and Control of
Radioactive Pollution Provisions against Child Labor
Regulations on the Safety and Protection of Radioisotopes and Radiation Law of the People's Republic of China on the Protection of Women's
Devices Rights and Interests10013 2023 ESG Report 2023 ESG Report 10024
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.Appendix 2: GRI Index
Indicator Subdivision/Description Page Indicator Subdivision/Description Page
Universal Standards GRI2-25 Processes to remediate negative impacts 243639485051-58666873
GRI 1: Foundation 2021 GRI2-26 Mechanisms for seeking advice and raising concerns 2535-398489-90
GRI 2: General Disclosures 2021 GRI2-27 Compliance with laws and regulations 5-64043487380
The organization and its reporting practices GRI2-28 Membership associations 18
GRI2-1 Organizational details 9-10 Stakeholder engagement
GRI2-2 Entities included in the organization’ s sustainability reporting 1 GRI2-29 Approach to stakeholder engagement 25
GRI2-3 Reporting period frequency and contact point 1-2 GRI2-30 Collective bargaining agreements 84
GRI2-4 Restatements of information 1 GRI 3: Material Topics
GRI2-5 External assurance —— 3-1 Process to determine material topics 26
Activities and workers GRI 3: Material Topics 3-2 List of material topics 27-28
GRI2-6 Activities value chain and other business relationships 1013-16 3-3 Management of material topics 27-28
GRI2-7 Employees 80-81 201-1 Direct economic value generated and distributed 1336
GRI2-8 Workers who are not employees 67 201-2 Financial implications and other risks and opportunities due to
GRI 201: Economic climate change 55-56
Governance Performance
201-3 Defined benefit plan obligations and other retirement plans 83-84
GRI2-9 Governance structure and composition 2331 201-4 Financial assistance received from government ——
GRI2-10 Nomination and selection of the highest governance body 32 202-1 Ratios of standard entry level wage by gender compared to
local minimum wage 82
GRI2-11 Chair of the highest governance body 2331 GRI 202: Market Presence 202-2 Proportion of senior management hired from the local 86
Role of the highest governance body in overseeing the community
GRI2-12 management of impacts 23-24
203-1 Infrastructure investments and services supported 94-95
GRI 203: Indirect
GRI2-13 Delegation of responsibility for managing impacts 23-24 Economic Impacts 203-2 Significant indirect economic impacts 93-97
GRI2-14 Role of the highest governance body in sustainability reporting 25-26
GRI 204: Procurement
Practices 204-1 Proportion of spending on local suppliers ——GRI2-15 Conflicts of interest 3235
205-1 Operations assessed for risks related to corruption
GRI2-16 Communication of critical concerns 25 ——
Collective knowledge of the highest governance body GRI 205: Anti-corruption
205-2 Communication and training about anti-corruption policies
GRI2-17 23-25 and procedures 40
205-3 Confirmed incidents of corruption and actions taken
GRI2-18 Evaluation of the performance of the highest governance body 32 ——
GRI 206: Anti-competitive 206-1 Legal actions for anti-competitive behavior anti-trust and
GRI2-19 Remuneration policies 82 Behavior monopoly practices Not involved
GRI2-20 Process to determine remuneration 82-83 207-1 Approach to tax ——
GRI2-21 Annual total compensation ratio —— 207-2 Tax governance control and risk management ——
GRI 207: Tax
207-3 Stakeholder engagement and management of concerns
Strategy policies and practices ——related to tax
GRI2-22 Statement on sustainable development strategy 21-22 207-4 Country-by-country reporting ——
GRI2-23 Policy commitments 31-3335-363744-455564-6878-808285
GRI2-24 Embedding policy commitments 39-4046-5456-6069-7485-9093-9510015 2023 ESG Report 2023 ESG Report 10026
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.Indicator Subdivision/Description Page Indicator Subdivision/Description Page
301-1 Materials used by weight or volume —— 308-1 New suppliers that were screened using environmental criteriaGRI 308: Supplier E 73，84
nvironmental Assessment 308-2 Negative environmental impacts in the supply chain and
GRI 301: Materials 301-2 Recycled input materials used —— actions taken 73，74
301-3 Reclaimed products and their packaging materials 55-56 401-1 New employee hires and employee turnove 73
401-2 Benefits provided to full-time employees that are not
302-1 Energy consumption within the organization —— GRI 401: Employment provided to temporary or part-time employees 7384
302-2 Energy consumption outside of the organization 49-50 401-3 Parental leave 73
302-3 Energy intensity GRI 402: Labor/ManagementGRI 302: Energy 49-50 Relations 402-1 Minimum notice periods regarding operational changes 73
302-4 Reduction of energy consumption 49 403-1 Occupational health and safety management system 73
302-5 Reductions in energy requirements of products and services: 49 403-2 Hazard identification risk assessment and incident investigation 73
303-1 Interactions with water as a shared resource 49 403-3 Occupational health services 87
403-4 Worker participation consultation and communication on occupational
303-2 Management of water discharge-related impacts 57-60 health and safety 87-88
GRI 303: Water and 303-3 Water withdrawal —— GRI 403: Occupational 403-5 Worker training on occupational health and safety 83Effluents Health and Safety
303-4 Water discharge —— 403-6 Promotion of worker health 33-34，81
403-7 Prevention and mitigation of occupational health and safety impacts
303-5 Water consumption —— directly linked by business relationships 83
403-8 Workers covered by an occupational health and safety management
304-1 Operational sites owned leased managed in or adjacent to protected system 81-84
areas and areas of high biodiversity value outside protected areas ——
403-9 Work-related injuries 84
304-2 Significant impacts of activities products and services on biodiversity
GRI 304: Biodiversity —— 403-10 Work-related ill health 80
304-3 Habitats protected or restored —— 404-1 Average hours of training per year per employee 80
304-4 IUCN Red List species and national conservation list species with habitats GRI 404: Training and 404-2 Programs for upgrading employee skills and transition assistance
in areas affected by operations —— Education programs
84
404-3 Percentage of employees receiving regular performance and career Not involved
305-1 Direct (Scope 1) GHG emissions 52 development reviews
405-1 Diversity of governance bodies and employees 94-95
305-2 Energy indirect (Scope 2) GHG emissions 52 GRI 405: Diversity and E
qual Opportunity
405-2 Ratio of basic salary and remuneration of women to men 94-95
305-3 Other indirect (Scope 3) GHG emissions 52
GRI 305: Emissions 305-4 GHG emissions intensity 52 GRI 406: Non-discrimination 406-1 Incidents of discrimination and corrective actions taken 37
305-5 Reduction of GHG emissions 3739 GRI407: Freedom of Association 407-1 Operations and suppliers in which the right to freedom of association and Collective Bargaining and collective bargaining may be at risk 39
305-6 Emissions of ozone-depleting substances (ODS) 37-39 GRI 408: Child Labor 408-1 Operations and suppliers at significant risk for incidents of child labor Not involved
305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other significant air —— GRI 409: Forced or 409-1 Operations and suppliers at significant risk for incidents of forced or emissions Compulsory Labor compulsory labor Not involved
306-1 Waste generation and significant waste-related impacts 83 GRI 410: Security Practices 410-1 Security personnel trained in human rights policies or procedures Not involved
306-2 Management of significant waste-related impacts 83 GRI 411: Rights of Indigenous
Peoples 411-1 Incidents of violations involving rights of indigenous peoples
None
GRI 306: Waste 306-3 Waste generated 84
413-1 Operations with local community engagement impact assessments None
and development programs
306-4 Waste diverted from disposal 73 GRI 413: Local Communities
413-2 Operations with significant actual and potential negative impacts on 40
306-5 Waste directed to disposal 73-74 local communities10017 2023 ESG Report 2023 ESG Report 10028
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.Indicator Subdivision/Description Page Comments & Feedback
414-1 New suppliers that were screened using social criteria 72
GRI 414: Supplier Social
Assessment Dear readers∶
414-2 Negative social impacts in the supply chain and actions taken 26 Thank you for reading this Report! We sincerely look forward to your evaluation of this Report and your valuable comments
so that we can continuously improve our ESG efforts and enhance our ESG compliance capabilities and performance!
GRI 415: Public Policy 415-1 Political contributions 27-28
416-1 Assessment of the health and safety impacts of product and service categories 27-28
GRI 416: Customer Health
and Safety 416-2 Incidents of non-compliance concerning the health and safety impacts of
products and services 1336 I. SELECTIVE QUESTIONS (please tick the appropriate box)
417-1 Requirements for product and service information and labeling 55-56
GRI 417: Marketing and 417-2 Incidents of non-compliance concerning product and service information and
labeling 83-84
1.Your overall comments on this Report:
Labeling
417-3 Incidents of non-compliance concerning marketing communications —— □Excellen □Very good □Good □Fair □Poor
GRI 418: Customer Privacy 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data 82
2.The information quality disclosed in this Report is:
□Excellen □Very good □Good □Fair □Poor
3.The structure of this Report is:
□Excellen □Very good □Good □Fair □Poor
4.The report layout design and presentation are:
□Excellen □Very good □Good □Fair □Poor
II. OPEN QUESTIONS
1.What further disclosures do you think are needed in this Report10019 2023 ESG Report 2023 ESG Report 10120
Inner Mongolia Dazhong Mining Co. Ltd. Inner Mongolia Dazhong Mining Co. Ltd.
2.What could be improved in this Report Please provide your valuable comments and suggestions.
You can choose the following ways to give us your feedback and suggestions:
Offline mailing
Address: 12th Floor Conference Room Inner Mongolia Dazhong Mining No. 55 Huanghe Street Baotou Rare Earth
High-Tech Industrial Development Zone Baotou Inner Mongolia China
Postal code: 014010
Online feedback
Email: info@dzky.cn
Contact information
Name: Employer:
Tel: Email:电话：- 邮箱： info@dzky.cn 地址：内蒙古巴彦淖尔市乌拉特前旗小佘太书记沟
