Safety and Environment

Environment

We have implemented a set of Environmental Protection Measures (《环境保护管理制度》). It sets forth our environmental protection controls and measures. In particular, it provides for the methods of handling different types of pollutants and the standards we should achieve in ash emissions and noise control.

We have adopted a number of environmentally responsible practices :

• Plant trees to compensate for the deforestation caused by our mining operations and near the mining areas after the completion of our mining operation.
• Recycle and reuse waste water at our processing plants and tailings dams
• Recycle gangue and use it as paving materials and construction materials.
• Monitor our noise level by adopting various noise control measures including the use of silencers.
• Prior to the launching of new production or expansion activities, we engage qualified experts (Hebei Province Zhonglian Energy Environmental Protection Technology Limited Company (河北省众联能源环保科技有限公司) and Zhong Kan Metallurgical Investigation Design& Research Institute Co., Ltd.( 中勘冶金勘察设计研究院有限责任公司) )to conduct environmental impact assessments.

Dewatering tailings discharge and Afforestation of tailing facility

 

Safety

We actively implement and enforce Safety Inspection Measures (《公司安全检查制度》)， Safety Production Regular Meeting Measures (《安全生产例会制度》) and other relevant measures to prevent and reduce the occurrence of dangers and risks related to our operation.

We had a dedicated team of 40 full-time employees responsible for monitoring and ensuring occupational health and safety :

• Provide regular occupational training to our employees and special safety technical training to our technical staff.
• Arrange health check-ups for our employees and provide social insurance to all of our employees.
• Conduct internal inspections on safety compliance at each of our production sites on a monthly basis.
• Monitor our noise level by adopting various noise control measures including the use of silencers.
• Prior to the launching of new production or expansion activities, we engage qualified experts (Hebei Province Zhonglian Energy Environmental Protection Technology Limited Company (河北省众联能源环保科技有限公司) and Zhong Kan Metallurgical Investigation Design& Research Institute Co., Ltd.( 中勘冶金勘察设计研究院有限责任公司) )to conduct environmental impact assessments.

SRK (SRK Consulting China Limited, an independent mining and geological consultant which qualifies as a competent person and a competent evaluator as defined under Rule 18.01 of the Listing Rules) has confirmed that the above occupational health and safety management measures are generally in line with recognized PRC industry practices and PRC safety regulations.