Zijin Mining (02899) and some owned enterprises in Xinjiang were included in the UFLPA Entity List

Zhitong Finance App News, Zijin Mining (02899) issued an announcement. The company noticed that the US Department of Homeland Security added 37 new Chinese companies to the so-called “UFLPA” entity list on January 14. Among them, the company and Xinjiang Zijin Nonferrous Metals Co., Ltd., Xinjiang Habahe Ashele Copper Co., Ltd., Xinjiang Jinbao Mining Co., Ltd., and Xinjiang Zijin Zinc Co., Ltd. were included because they were involved in procuring raw materials from Xinjiang or employing ethnic minority employees.

In line with a responsible attitude towards investors, society and other stakeholders, the company hereby solemnly states the following: All enterprises owned by the company strictly abide by Chinese laws and regulations, as well as basic international labor human rights rules such as the United Nations “Guiding Principles of Business and Human Rights” and the International Labour Organization's “Declaration on Fundamental Principles and Rights at Work”, put an end to all forms of forced labor and other acts that infringe on employees' rights and interests. All recruitment and separation activities follow voluntary principles, respect employees' personal freedom, implement market-based and competitive remuneration policies, and pay levels that exceed the average wage in the local community 34%, and a smooth communication and complaint mechanism has been established, which fully respects the negotiation rights of employees and trade unions. Furthermore, the company has established a responsible supply chain management system in accordance with the “OECD Mining Supply Chain Due Diligence Guidelines” to ensure that suppliers and contractors simultaneously follow the company's code of conduct, and no credible evidence of forced labor in the supply chain has been discovered or received. The company is deeply sorry and shocked that the US Department of Homeland Security made hasty accusations based on facts.

According to the announcement, the UFLPA entity list only covers the listed entities themselves, does not include their holding or participating companies, and only restricts the export of products produced by the listed companies to the US. It will not have any impact on the other business activities of the company and its owned enterprises, nor is it prohibited for any entity to trade company shares.

The company has no assets in the US, nor has it obtained sales revenue from the US; the total assets, revenue, profits, etc. of the enterprises involved account for less than 5% of the company-related indicators; the inclusion of the company and some owned enterprises in the UFLPA entity list is not expected to have a significant impact on the company.

The company will cooperate with a team of US legal experts to study relevant remedy procedures, and actively communicate with relevant US government departments to resolve related misunderstandings and seek the removal of the company and some owned enterprises in Xinjiang from the UFLPA entity list.