Tibet Summit Resources Co.Ltd(600338) 2021 environmental, social and corporate governance (ESG) report catalogue
Remarks on chairman Tibet Summit Resources Co.Ltd(600338) – one belt, one road, 2021, enter the 2021 Tibet Summit Resources Co.Ltd(600338) – event management model to promote sustainable development – ESG practice – Corporate Governance – stakeholder communication and participation – substantive assessment of the issue, building an environment-friendly mineral company – addressing climate change challenges – air quality – energy consumption – water conservation – waste and hazardous materials management – Materials Management undertaking “one belt and one road” Social responsibility – Caring Employees – caring communities – caring partners appendix – about this report – gri sustainable development report standard index table – United Nations Sustainable Development Goals index table
Chairman’s speech
Dear friends: on behalf of Tibet Summit Resources Co.Ltd(600338) board of directors, I sincerely thank you for your concern and support for Tibet Summit Resources Co.Ltd(600338) and the sustainable development performance of the company. In the past year, the global covid-19 epidemic spread and the challenge of climate change have exacerbated various risks of environmental, social and economic development. The evaluation of enterprise achievements is not only reflected in financial data, but also reflected in the emphasis on non-financial impacts such as environmental, social and corporate governance, which also makes the company deeply aware that we must take action for sustainable development. Therefore, this year, we released our first environmental, social and corporate governance (ESG) report to disclose our actions on ESG to all sectors of society. In the past year, the company has actively promoted addressing the challenge of climate change. As a mining enterprise rooted in China and expanding overseas, we are deeply aware of the importance of “green, low-carbon and sustainable development”, actively explore new models to promote the development of green and low-carbon mining, keep in mind the principle of “high utilization and low emission” in production and operation, formulate and strive to implement emission reduction strategies, actively respond to the call of “carbon peak and carbon neutrality” put forward by the general secretary of Xi Jinping and promote the transformation of low-carbon economy, So as to realize the sustainable development and utilization of mineral resources. The risks and opportunities posed by climate change are affecting the business models of the metals and mining industries. In November 2021, the company became the first TCFD supporting enterprise in China’s metal and mining industry. One belt, one road, is the most important part of the world. The traditional basic metals such as lead, zinc, copper and other basic metal products are very important for achieving low-carbon economic transformation. The sustainability of the production process is a strategic direction for the company to consider. Therefore, in January 2022, the company joined the International Zinc Association (IZA) and entered the international peer network, and continued to advance along the road of building a “one belt and one road” with high quality. At the same time, in order to cope with the growing demand for new energy lithium products outside China, the company officially started the lithium salt lake project in Argentina in December 2021, which promoted the upgrading of the company’s mining portfolio and made a good layout for a low-carbon future. This year, the company took the first step in sustainable development. We maintain active communication with customers, investors, employees, suppliers, government agencies, industry associations, communities and other stakeholders. By deepening the interaction with stakeholders, we identified and evaluated sustainability issues highly related to the company’s business. Climate change is both a challenge and a major opportunity for us. Taking greenhouse gas emissions as an example, the regulatory authorities will introduce stricter regulatory requirements to improve the compliance costs of high emission enterprises. We are aware that the increased frequency of extreme weather events such as rainstorms, floods and typhoons may lead to the interruption or closure of mine operations, as well as the interruption of transportation roads and supply chains. These climate change related risks may lead to potential challenges such as increased operating costs, business interruption and employee health hazards. The company will reduce greenhouse gas emissions in the product value chain and improve the company’s sustainability performance by producing low-carbon materials needed in the future, using new technologies to improve production efficiency, reducing fossil energy consumption and working with partners to improve operational efficiency. We firmly believe that embracing the ESG concept will bring unprecedented opportunities to the company. The company solemnly promises to integrate the concept of high-quality green sustainable development into the company’s future development strategy and contribute to promoting global sustainable development.
In the future, one belt, one road construction, will continue to take the important role of the sustainable development concept. Through continuous investment and scientific exploration, we will increase the amount of resources, continuously improve the management level, accelerate the transformation of resources to the advantage of social and economic benefits, ensure the benign growth of the company’s performance, and help the overseas social and economic development of the project location, so as to realize the long-term economic value and social responsibility of the company.
Signature of chairman:
Enter Tibet Summit Resources Co.Ltd(600338)
Tibet Summit Resources Co.Ltd(600338) (hereinafter referred to as “the company”) was established on November 30, 1998 and was listed on Shanghai Stock Exchange in December 2000 (Stock Code: Tibet Summit Resources Co.Ltd(600338) ). The registered address of the company is No. 65, Beijing Middle Road, Chengguan District, Lhasa, Tibet Autonomous Region, and the management headquarters is located at No. 305, Liuying Road, Jing’an District, Shanghai. The main business of the company is mining and beneficiation of non-ferrous metal mines, and the development of lithium salt lake resources is started through the holding company. The main products are lead concentrate (containing silver), zinc concentrate and copper concentrate (containing silver). The concentrate products produced by the company are processed into corresponding metal products by downstream smelting enterprises and are widely used in various fields of social economy. With the help of the financial, information and talent functions of Shanghai’s central city, and giving full play to the unique geopolitical advantage of Xinjiang autonomous region, which is registered in the Tibet autonomous region and controlling shareholder’s registered place, the company focuses on the upstream development of the resource industry, based on the existing central Asia’s non-ferrous metals, and actively develops the upstream raw materials project of the new energy industry in South America. The company strives to develop into a large multinational mining group with a leading position in the industry and strong competitive advantages in Central Asia and South America through 5-10 years of efforts. The main operating assets of the company are the wholly-owned subsidiary Tazhong Mining Co., Ltd. (hereinafter referred to as “Tazhong mining”). Tazhong mining is located in zalenisol Town, gulistone City, the Republic of Tajikistan. Its main production and operation business is mine mining, beneficiation and crude lead smelting. Tazhong mining is currently the largest Chinese funded enterprise in Tajikistan, with the most strategically valuable Polymetallic Mine Resources obtained by Chinese enterprises in Central Asia. The company has signed the memorandum of cooperation between Tibet Summit Resources Co.Ltd(600338) (Tazhong mining) and the Ministry of industry and new technology of the Republic of Tajikistan on the establishment of rare, precious and non-ferrous metal processing enterprises and the “transformation and upgrading project of Tajikistan’s state-owned non-ferrous metal industry” with the government of Tajikistan. Based on the mineral resources and supporting preferential policies allocated by the government of Tajikistan, the company will invest Design and build mining and processing projects with an annual processing capacity of 6 million tons, and support the comprehensive production capacity of non-ferrous metal industry with an annual metal production capacity of 350000 tons (including rare and precious metals and non-ferrous metal smelting and by-products), so as to form an international non-ferrous metal industry park in the north of Tajikistan.
Tazhong China mining one belt, one road project in the framework of economic cooperation of Shanghai cooperation organization, is the largest cooperation project in China and Tajik mining industry, and also a benchmark enterprise in the “national strategic layout” of “one belt and one road”. The company has two large-scale salt lake projects in Argentina: anheles and arizaro. The anheles Salt Lake project, which was mainly developed in the early stage, has a resource of 2.05 million tons of lithium carbonate equivalent (LCE), with an average concentration of more than 500ppm, excellent resource endowment and a planned capacity of 50000 tons of LCE. This is the first known Salt Lake development project of Chinese enterprises in Argentina and the fifth largest in the world.
By the end of the reporting period, the company had 1846 employees, including 1552 male employees, 294 female employees, 393 Chinese employees and 1453 foreign employees. 1781 employees are covered by collective bargaining agreements. The company’s employees are mainly engaged in enterprise management, administrative personnel management, marketing and procurement, finance, geological survey, mining, beneficiation and metallurgy and other mine technology management. Workers other than employees are migrant workers of the Contractor’s construction unit, mainly engaged in mining construction and front-line production. The total number of overseas workers of the Contractor’s construction unit is 2131.
During the reporting period, the company produced 120000 tons of lead, zinc and copper metal and 2100 tons of crude lead, realizing a sales revenue of 2.049 billion yuan. The main customer is Glencore international.
Member of the branch, member of China Association of listed companies, member of Tibet Securities Association and member of International Zinc Association, and officially became a supporting enterprise of the working group on climate change related financial information disclosure (TCFD) in November 2021. Lead: metal lead has good ductility and corrosion resistance. It is easy to make alloys with other metals. Metal lead, lead alloys and their compounds are widely used in battery, cable sheath, machinery manufacturing, shipbuilding, light industry, lead oxide, radiation protection and other industries. Zinc: metallic zinc has good calendering, wear resistance, corrosion resistance and castability, and has good room temperature mechanical properties. It can be made into excellent alloys with a variety of metals. Zinc oxide is widely used in zinc, zinc alloy, automotive, and other industries. At present, the consumption of non-ferrous metals is second only to copper and aluminum. Copper: metal copper has excellent conductivity, thermal conductivity, ductility, corrosion resistance, wear resistance and other excellent properties. It is widely used in power, electronics, energy and petrochemical, machinery and metallurgy, transportation, light industry, emerging industries and other fields. At present, it is second only to aluminum in the consumption of non-ferrous metals. Silver: metal silver is one of the common precious metals, which can be used to make jewelry. In the industrial field, it is often used to make highly sensitive physical instrument components. A large number of contact points in various automation devices, rockets, submarines, computers, nuclear devices and communication systems are made of silver.
Events in 2021
In March 2021, the company distributed cash dividends of more than 274 million yuan – the company implemented the established profit distribution. This profit distribution was based on 914210168 shares of the company’s total share capital, with a cash dividend of 0.3 yuan per share (including tax), with a total cash dividend of 2742630504 yuan.
In April 2021, the first batch of returning workers arrived at Tazhong mining
-In 2021, the company’s first charter plane for returning to work carried more than 190 returning personnel and successfully arrived at the destination.
The academician and expert workstation of China Geophysical Society was unveiled at the Shanghai headquarters – the academician and expert workstation of China Geophysical Society ( Tibet Summit Resources Co.Ltd(600338) resource sub station) was unveiled and the entry meeting of academicians and experts was grandly held at the Shanghai management headquarters of Mount Everest, Tibet. Teng Jiwen, academician of the Institute of Geology and Geophysics of the Chinese Academy of Sciences (resident academician), di Qingyun, deputy director of the Institute of Geology and Geophysics of the Chinese Academy of Sciences (elected academician of the Chinese Academy of Sciences on November 19), and other six resident experts attended the meeting. In May 2021, professional managers were publicly selected and employed
-In order to successfully implement the company’s five-year business objective plan for 20212025 approved by the board of directors, the company decided to select and appoint talents for the market and the society (including the company) based on the principle of “market-oriented competition and contractual management”, and select professional managers who have a pattern and dare to take good actions in an open, fair, equal and selective manner. The second batch of returning workers arrived at Tazhong mining – more than 150 engineering and technical personnel were transferred by land to Tazhong mining via the karamov airport in Tashkent, the capital of the Republic of Uzbekistan. In June 2021, the domestic covid-19 vaccine arrived in Tajikistan with a chartered plane – carrying 300000 doses of domestic Kexing Zhongwei covid-19 inactivated vaccine with the friendly wishes of the Chinese government and people, it was successfully transported to Tajikistan with Tibet Summit Resources Co.Ltd(600338) ‘s chartered plane. Tajik Deputy Prime Minister sadoliyon personally greeted him at the airport. Chinese ambassador to Tajikistan Liu Bin and Tajik health minister abdullozoda handed over at the airport on behalf of China and Tajikistan. Full vaccination of domestic covid-19 vaccine in Tazhong mining area – the company and Tazhong mining actively connected with the Embassy in Tajikistan, coordinated with the Ministry of health of Tajikistan, and successfully applied for the vaccine for Tajik employees and mining area residents through various efforts, realizing the full vaccination covering the mining area. The third batch of returning workers arrived at Tazhong mining – more than 100 professional and technical personnel required by the production line of Tazhong mining arrived in Tajikistan by vaccine delivery flight. The three batches of personnel replenishment effectively supported the on-site work of Tazhong mining to improve production capacity, and laid a good foundation for Tazhong mining to complete the production plan as scheduled in the second half of the year. In July 2021, the 20th anniversary of the Shanghai Cooperation Organization was celebrated. Zhang Jieyuan, vice chairman of the company, delivered a speech. The company was awarded the “special contribution award for Tajikistan China Friendship” – the 20th anniversary of the Shanghai Cooperation Organization: the exchange activity of the Republic of Tajikistan China Shanghai Cooperation Organization local economic and trade cooperation demonstration zone was held in Qingdao Tibet Summit Resources Co.Ltd(600338) vice chairman Zhang Jieyuan was invited to attend the event and deliver a keynote speech on behalf of the company and Tazhong mining, one of the wholly-owned subsidiaries of “model projects under the framework of SCO economic and trade cooperation”. As China Tajikistan relations
Enterprises and companies that have made outstanding contributions and Tazhong mining won the “special contribution award for Tajikistan China Friendship” issued by the Embassy of Tajikistan in China. In August 2021, the 30th anniversary of Tajikistan’s independence was celebrated, and the construction of roads funded by Tazhong mining started
-On the occasion of the 30th anniversary of the independence of the Republic of Tajikistan, a grand commencement ceremony was held for the “Boston zalenisol highway” project funded by more than 75 million somoni. In September 2021, Tazhong mining donated 10 special concierge vehicles to Tajikistan
-In order to support the celebrations of the 20th anniversary of SCO and the 30th anniversary of Tajikistan’s independence, Tazhong mining donated 10 special concierge vehicles to the government of the Republic of Tajikistan. The SCO Secretary General issued a letter of thanks to commend the work of the company’s president Wang Xibing and other senior executives during the SCO activities. Signing ceremony of the framework agreement on cooperation and joint construction of Tazhong vocational and technical training center – during the Council of heads of state of SCO, the signing ceremony of the framework agreement on cooperation and joint construction of Tazhong vocational and technical training center of the Ministry of industry and new technology of the Republic of Tajikistan, Tazhong mining and Lanzhou resource and environment vocational and technical college was held in Dushanbe. The board of directors approved the non-public offering plan and plans to raise 8 billion yuan – the board of directors of the company plans to raise funds through the non-public offering plan
