Yunnan Copper Corporation Ltd
Total Page:16
File Type:pdf, Size:1020Kb
REPORT SUMMARY Implementing firm RCS Global Ltd Address: 9a Burroughs Gardens, London, NW4 4AU, U. K [email protected] CONTACT PERSON: Katie Redmond, Program Manager CONTACT TELEPHONE: +49 176 6080 6483 Title of Report Independent Reasonable Assurance Report to Yunnan Copper Corporation Limited Type of assessment LBMA ISAE 3000 Assurance Assessment Refiner Yunnan Copper Corporation Limited 1. Headquarter: Lianmeng Road, Panlong Disrict, Kunming, Yunnan Province, P.R. China. 2. Procurement & sales site (Yunnan Copper Corporation Ltd Marketing Company Import & Export Company): Lianmeng Road, Panlong Disrict, Kunming, Yunnan Province, P.R. China. 3. Smelting & refining site (Yunnan Copper Corporation Ltd Southwest Copper Branch, including Rare & Precious Metals Plant): Wangjiaqiao, Wuhua District, Kunming, Yunnan province, P.R. China. Assessed Timeframe 1 January 2019 – 31 December 2019 1. INTRODUCTION We were engaged by Yunnan Copper Corporation Limited to provide reasonable assurance on its Refiner’s Compliance Report for the year ended 31 December 2019. The assurance scope consists of the Refiner’s Compliance Report. 2. RESPONSIBILITIES The Compliance Officer of Yunnan Copper Corporation Limited (“Yunnan Copper” or “The Refiner”) is responsible for the preparation and presentation of the Refiner’s Compliance Report in accordance with the Version 8 of the LBMA Responsible Gold Guidance (RGG) and Version 1 of the LBMA Responsible Silver Guidance (RSG). This responsibility includes establishing appropriate risk management and internal controls from which the reported information is derived. The criteria identified by the Compliance Officer as relevant for demonstrating compliance with the LBMA RGG and RSG are the activities described within the Refiner’s Compliance Report. Our responsibility is to carry out a reasonable assurance engagement in order to express a conclusion based on the work performed. We conducted our assurance engagement in accordance with International Standard on Assurance Engagements ISAE 3000 Assurance Engagements other than Audits or Reviews of Historical Financial Information issued by the International Auditing and Independent Reasonable Assurance Report 2 Assurance Standards Board and the guidance set out in the LBMA Responsible Gold and Silver Programme - Third Party Audit Guidance for ISAE 3000 Auditors (the Audit Guidance). This report has been prepared for Yunnan Copper for the purpose of assisting the Compliance Officer in determining whether Refiner’s Compliance Report has complied with the Guidance and for no other purpose. Our assurance report is made solely to Yunnan Copper in accordance with the terms of our engagement. We do not accept or assume responsibility to anyone other than Yunnan Copper for our work, or for the conclusions we have reached in the assurance report. 3. INHERENT LIMITATIONS Non-financial information, such as that included in the Refiner’s Compliance Report, is subject to more inherent limitations than financial information, given the more qualitative characteristics of the subject matter and the methods used for determining such information. The methods used by Refiners to comply with the Guidance may differ. It is important to read the Yunnan Copper’s gold and silver supply chain policy available on Yunnan Copper’s website http://www.yunnan- copper.com. 4. INDEPENDENCE AND COMPETENCY STATEMENT In conducting our engagement, we have complied with the applicable requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants. In conducting our engagement, we confirm that we satisfy the criteria for assurance providers as set out in the Audit Guidance to carry out the assurance engagement. 5. CONCLUSION In our opinion, the Refiner’s Compliance Report for the year ended 31 December 2019, in all material respects, describes fairly the activities undertaken during the year to demonstrate compliance, and management’s overall conclusion contained therein, is in accordance with the requirements of the LBMA Responsible Gold Guidance (RGG) and the LBMA Responsible Silver Guidance (RSG). Signature Kevin Wei Assurance Firm RCS Global Ltd Date 4 June 2020 City, Country Shenzhen, China Independent Reasonable Assurance Report 3 RGG & RSG COMPLIANCE REPORT OF GOLD AND SILVER (2019) FOR YUNNAN COPPER CORPORATION LTD. YUNNAN COPPER CORPORATION LTD. 20 APRIL 2020 1 / 20 TABLE OF CONTENTS 1. Introduction 2. Company Profile 3. Summary of Compliance Activities Step 1: Establishment of Strong Supply Chain Management System Step 2: Risk Identification and Assessment on Supply Chain Step 3: Strategy Design and Implementation in Response to Risk Identification Step 4: To Plan an independent Third-party Audit of Refiner's Due Diligence Practice Step 5: Annual Report on Supply Chain Due Diligence 4. Management Conclusion 5. Other Report Comments 2 / 20 1. INTRODUCTION LBMA Gold Responsible Guidance (hereinafter referred to as LBMA RGG) and LBMA Silver Responsible Guidance (hereinafter referred to as LBMA RSG) are reliability guidelines established by LBMA for qualified gold and silver delivery refineries in compliance with The Organization for Economic Cooperation and Development (OECD) responsible supply chain due diligence guidelines for ores from conflict-affected and high-risk regions. The purpose of using high standards to conduct due diligence on suppliers is to respond to risks of war, widespread violation of human rights, money laundering or terrorist ACTS in the supply chain; improve the level of enterprise management, establish a reliable supply chain, and prevent enterprise operation from being affected by supply chain risks. This report summarizes how Yunnan Copper Corporation Ltd. (hereinafter referred to as “Yunnan Copper” or “YCC”) has complied with the requirements of LBMA RGG and LBMA RSG in 2019. Name of Company YUNNAN COPPER CORPORATION LTD. Address: LianMeng Road, Panlong District, Kunming, Yunnan, P.R. China Reporting time interval : 01/01/2019 - 31/12/2019 Agent Shi Chunke Phone No.: +86 871-63124933 Contact information : E-mail address:[email protected] 2. COMPANY PROFILE Yunnan Copper was listed in Shenzhen Stock Exchange in 1998. The former of 3 / 20 Yunnan Copper was Yunnan Smelter which was approved and built during the 1st Five-Year Plan period. YCC manages 11 copper mines and 6 copper smelters, and YCC industry chain engages mainly in mining, ore-dressing, smelting and etc. It is the only one listed company under Chinalco Group and China Copper for copper business (Stock Name: Yunnan Copper; Stock Code: 000878). YCC have registered capital of RMB 1.699 billion, total assets of RMB 42.364billion, net assets RMB 12.2 billion, operating revenue of over RMB 63.29 billion, and over 10000 employees. Its major products include copper cathode, gold and silver, it can also recover various rare and precious metals, such as Se, Te, Pt, Pd, In, Re and so on. With strict quality control, all major products are organized and produced strictly according to international standard IS09002 quality management system. Among them, “Tie Feng” Brand of Copper Cathode has been registered and dealt in Shanghai Metals Exchange (SME) and London Metals Exchange (LME). “Tie Feng” Brand of Gold Ingot has been registered and dealt in Shanghai Gold Exchange (SGE). “Tie Feng” Brand of Silver Ingot has been registered and dealt in LBMA. Up to now, smelting block has achieved annual production capacities: 110,000 tons of copper in Cu concentrate, 1,300,000 tons of high purity copper cathode, 5,000,000 tons of industrial sulfuric acid, 16 tons of gold and 1,300 tons of silver. The smelting production capacity ranks in the forefront of the domestic copper industry. The output of gold is 11.950 tons and the 4 / 20 output of silver is 640.863 tons in 2019. YCC already got ISO9001: 2015 system certification and ISO14001: 2015 system certification, the production and processing authorization includes cathode copper, gold, silver, and sulfuric acid. In addition, YCC also got ISO45001: 2018 system certification of occupational health and safety management system. YCC main sources of gold and silver products include copper concentrate, gold concentrate, copper matte, blister copper, anode copper and high purity copper cathode. 3. SUMMARY OF COMPLIANCE ACTIVITIES Step 1Establishment of Strong Supply Chain Management System Compliance statement: For the year ended of December 31, 2019, we were totally in compliance with the requirements of Step 1: Establishment of Strong Supply Chain Management System. 1) Internal Management Organization StruCture: In accordance with " YCC Gold Supply Chain Management Regulations", YCC established Gold Supply Chain Management Organization on 2 April 2018. According to the requirements of LBMA RSG, "YCC Implementation Rules of Gold and Silver Supply Chain Management" was revised on March 11, 2019. On the basis of above policy, the Gold and Silver Supply Chain Management 5 / 20 Organization (hereinafter referred to as the "management organization") was established. The leaders in charge of marketing work acts as team leader of the management organization, members include: Compliance Risk Control Specialist from YCC, Compliance Specialist from manufacturing enterprise , Compliance Specialist from marketing company, Compliance Specialist for imported raw material, Compliance Specialist for domestic raw material, and Compliance Specialist for raw material business. And Mr. Shi Chunke from the Marketing Management