Social Responsibility Report of 2010
Zijin Mining Group Co., Ltd.
Introduction
The thirdly published Zijin Mining Group Social Responsibility Report, in compliance with
"Guidelines for Environmental Information Disclosure of Listed Companies" promulgated by the
Shanghai Stock Exchange, focusing on strengthening cooperate social responsibilities‖, is complied based on Zijin Mining’s performance of its own.
Scope of the Report
Organizational scope of this report: Zijin Mining Group and all its subsidiaries
Reporting Period: January 1, 2010 – December 31, 2010
The report is to give the public a clear and comprehensive understanding of our company’s performance of its social responsibilities. It describes what it has done in terms of improvements of employees’ living standards and community life level, upgrade of customer service, promotion of safety production and enhancement of environment protection.
Release and Interpretation of the Report
The PDF-formed report is released in 2010-year report.
Suggestions are preferred.
Department of Investment Securities of Zijin Mining Group Co., Ltd
Xiamen, China
Tel.: 0592-2933649 Code: 361016
Fax: 0592-2933580 E-mail: [email protected]
Preface
Chairman’ Statement:
On behalf of the company, I would like to express my deepest apologies to the society for our company’s two major accidents happened on July 3 and September 21, 2010, which not only caused social dispute, but also tarnished our brand and damaged our reputation.
We remember the painful lessons of 2010, and consider it as a warning in our future development.
Therefore, to lay a solid foundation for the future, we will optimize internal management and social responsibilities mechanism.
Corporate social responsibilities is an important soft power of the enterprise. Based on our belief of ―harmony helps making profits‖, we dedicate ourselves to creating a harmonious growing environment for the enterprise, the employees, and the community, and our values are embodied in the performance of social responsibilities; we realize that environment protection, safe production, stakeholder’s interest, society advancement and communities’ development are as important as industrial development and company growth. Otherwise, there will be many obstacles in the progress of our company, and thus do harm to the realization of company business objectives.
We hope that people from all walks of life could point out our deficiencies. But meanwhile, when people criticize us, Zijin’s ―good deeds‖ shall also be known and felt. We want to make the public understand that the phylogeny of our company contains all that we have done for social responsibilities.
Directors and top managements have reviewed the influence of the two major accidents on our company and faced the difficulties during the company development. Under new environment situation, we raise the awareness of unifying thoughts and enhancing confidence. Moreover, the
Board has pointed out that development strategy should keep unchanged; environment protection must be given high priority; social responsibilities should be faithfully fulfilled; new round entrepreneurial activities must be unswervingly promoted; management of construction projects and infrastructure should be reinforced, and that innovation is the soul of our development, must be persisted.
In the 12th five-year plan, we will adhere to developing Zijin Mining into a high technology-intensive profiting international mining cartel, sticking to our strategic objective, and persisting in internationalization.We do believe that we can be even more successful after we put through the accidents.
Your suggestions on our social responsibilities would be appreciated.
Sincerely yours
Chen Jinghe
Chairman of the Board
Chapter 1
General Situation of Social responsibilities Management in Zijin Mining
I. A Brief Introduction to the Company
Zijin Mining Group Co., Ltd is located in Shanghang County, Fujian Province, China. It is a high-tech benefit-oriented super-large international mining group centered on exploration and development of gold and base metals. It was listed in Hong Kong Stock Exchange in December
2003 (Stock name: Zijin Mining, stock code: 2899) and had its Shanghai Stock Exchang A Share listing in April 2008 (Stock name: Zijin Mining, stock code: 601899). At present, its capital stock amounts to 14,541,309,100.
With subsidiaries spreading over 20 provinces nationwide and 7 countries oveseas,Zijin is the largest gold producer, second cooper producer and the fifth largest zinc producer in China, as well as a Chinese enterprises with most maintenance if mineral resources.
In 2010, the group achieved an income of RMB 28.54 billion, and a total profit of RMB 7.33 billion. By the end of 2010, the total assets of Zijin Mining Group were RMB 3.84 billion representing a double digital increase; net profits to parent Company were RMB 4827 million. By
31 December 2012, the total assets of Zijin Mining Group were RMB 111.65 billion, and the group becomes one of the largest listing companies in the global.
At present, Zijin Mining is selected into the Shanhai Stock Exchange 180 Index, Shanhai
Stock Exchange 50 Index and Shenzhen 300 Index.
II. Strategy and Sustainable Development
The overall goal of Zijin Mining Group is to become an international super lager-scale high-tech highly efficient mining group.
According to the mid/long-term development plan, our company sets up a ―three-step development‖ strategy before 2020.
Firstly, to achieve a leading position in domestic gold industry（realized in 2005）
Secondly, to achieve a leading position in domestic mining industry（realized in 2009) Thirdly, to strive to be in a leading position in international mining industry in 2020
At present, the group has already been a leader in domestic mining industry, and it is being on the path toward ranking top in international mining industry.
With the rapid development of world economy, Environmental and natural resources problems have been the spotlight and become the bottleneck that restricts further development of economy and society. Being a resource-based company, Zijin Mining attaches great importance to the environment protection, and take local economic development and environment protection as its social responsibilities during its development and construction. To get communities support and to achieve harmonious development with them, which will bring the company immediate and long-term interests, is also the necessary condition for the company to achieve sustainable development.
III. Corporate Society Responsibility System
Zijin Mining with modern enterprise management has built internal management and control system that enables shareholders, directors, supervisors, and administrators to work appropriately in making decisions.
To enhance our social responsibilities, in November 2009, we established ―Department of
Key Project & Social Responsibilities‖, which takes charge of prophase key project, coordinating social responsibilities activities, and presides over the establishment and improvement of social responsibilities system. It is also responsible for setting up annual social responsibilities plans, assessing subsidiaries’ social responsibilities performances. The department also evolves in dealing with public and periphery relations, implementing donation plans and organizing charity activities.
In February 2010, The Board ironed out ―Social responsibilities Policy of Zijin‖ that guides our work on social responsibilities.
In 2010 A special meeting minutes about ―our development and strategy implementation‖ points out that we will attaché great importance to community work, write social responsibilities plan yearly. In order to ensure develop harmoniously with the region where our project company located, we will promote regional economic development, strengthen communication with the locals, and set up correct propagandas for the Group. To promote social responsibilities work, responsibility plan will become part of production and business operating plans of all subsidiaries after 2010.
Chapter 2
Shareholders (Investors) and Creditors Rights Protection
I. Management of Relationships with Investors and Information Disclose
Zijin Mining attaches great importance to maintain good relationships with investors, and formulates policy to manage the relationships. The Department of Investment Securities stages road show and reverses roadshow, presents investor meetings, and investor reception to develop good relations with them. In 2010 alone, more than 100 investors visit our headquarter, Zijinshan
Gold & Copper Mine smelter, northwest branch mine, etc.
In November 2010, five ministries and commissions including China Securities Regulatory
Commission issued ―Opinions On Preventing And Cracking Down Insider Trading In Capital
Market‖ (National Office (2010) No.55 Document) which gives a comprehensive planning in terms of insider trading prevention. In respond to government call, the company sets a Securities regulations column in web homepage educate employees.
We deeply regret for the information disclose deficiencies, which not only damages our good image of integrity and transparency in stock markets, but leads to investigation by china security regulatory commission in March and July 2010.
To ensure normal operation, we will reexamine problem in information disclose, reinforce security regulation trainings, improve cooperate governance, and perfect internal control and management system.
II. Key Economic Indicators
Key ec onomic indicators (see the chart) Fiscal Year 2010 2009 2008 2007 2006 2005 2004 2003
Total 38,401.23 29,646.14 26,361.97 16,799.16 11,349.40 5,475.38 3,266.11 2,695.40 Assets(M RMB) Shareholder 21,831.57 18,170.18 16,134.39 5,337.03 3,652.03 2,370.92 1,927.40 1,706.36 Equity(M RMB) Fully 22.11% 19.49% 19.00% 47.75% 46.68% 29.32% 21.67% 18.39% Diluted Net Asset yield rate Sales 28,539.58 20,955.82 16,983.76 14,871.27 10,678.81 3,036.22 1,507.68 1,050.53 Income(M RMB) Net 5,755.75 4,050.65 3,894.02 3,519.76 2,358.52 870.06 457.87 322.87 Profit(M RMB) Profits to 4,827.92 3,541.45 3,066.20 2,552.01 1,704.51 703.64 417.62 313.91 Parent Company(M RMB)
III. Investors return
Zijin mining values shareholder returns. Cash dividends to shareholders amount to RMB
7.49775 million since its listing. In 2009, clause about profits distribution was modified to ensure that profits distribution in cash is no less than 60% of the average distributable profits over the previous three years, so that investors return can be guaranteed.
Statement of dividends in Zijin Mining Fiscal Year 2010 2009 2008 2007 2006 2005 2004 2003 Gains per 0.33 0.24 0.22 0.19 0.16 0.13 0.16 0.33 Share (RMB) Dividend 0.10 0.10 0.10 0.09 0.09 0.08 0.10 0.15 per Share(RMB)
Payout 30.30 41.47 45.45 47.37 56.25 61.54 62.50 45.45 Ratio (%) total 145.413 145.413 145.413 130.872 94.617 42.052 26.283 19.712 dividend payments(M RMB)
Company's profit distribution plan in 20100: sending shares 10 per 1 million (tax) to all shareholders to distribute cash dividends.
IV. Creditors’ Rights
By the end of 2010, asset liability ratio of Zijin Minging is 32.22%, and Sales income, which guarantees good cash flows, enables us to be capable of repay short/long-term debt.
The Group was awarded with Credit Enterprise AAA Class, building good cooperation relations with four domestic famous commercial banks and some regional financial institutions. At present, banks have established a line for confirmation of credits for us of up to 48.3 billion RMB.
Chapter 3
Right protection for Suppliers, Contractors and Clients
Zijin Mining maintains good relations with our supplier and client based on the procurement concept ―client first, cooperation with mutual benefit‖.
I. Maintain Good Relations with Suppliers
The group optimizes procurement mechnism to realize a win-win cooperation and mutual development with suppliers. The company, conforming to the purchase policy and the equal and mutual benefit rule, strictly carries out t the contracts and do the payment; When purchasing the quipment and other stuffs, priority will given to supplier with good faith; large-scale equipments, goods and materials will apply public bidding, strictly following regulations and rules such as
―Social Responsibilities Commercial Ethics Management Rule‖, ―Purchase and Bidding
Management Rules‖, ―Purchasing Work Ten Prohibitions‖, to insure the publicity, fairness and transparency of the purchase bidding; Classification Management and Quality Statistical Analysis are applied when purchasing raw material, and the result will be reflect to the suppliers for them to improve the supplied goods.
II. The Income of Subcontractor from Contracts with the Company and Employment In
Recent Years
In recent 3 years, our company has signed contracts with outside subcontractors. The business income of Zijinshan Gold & Copper Mine subcontractors: Year 2010 2009 2008 Fee paid to 526,67 541,24 566,43 subcontractor (million yuan)
According to incomplete statistics, Zijin Mining Group, in terms of the whole public company, has employed as many as 12,000 people in the construction teams working all over different mines.
III. Provide High-quality products and Better sales service
Our main products are gold, silver, copper concentrate, iron ore concentrate, highly pure cathode copper, standard zinc bullion, and we sold standard gold bullion with Au99.99 and
Au99.95.
The Au-1 gold Bullion products have been approved by the provincial Bureau of Quality and
Technical Supervision to use the symbol of ―The Products that Adopt International Standards‖.
And its production has been awarded the certificates of ISO9001 and 2000 National Standards,
ISO140001 environment management system certification, and GB/T18001-2001 professional health and safety system certification, and has won British London Gold&Silver Committee
LBMA Certificate. ―Zijin‖ Gold Bullion has won successional Title of ―Fujian Famous-Brand
Products‖ awarded by Fujian Provincial Government in 2002, 2005 and 2009. The Figurative
Mark applied by our company is recognized one of the first ―Famous Trademarks of China‖ by
CNIA(China Nonferrous Metallurgy Industrial Association). In December 2009, ―Zijin‖ brand Silver Bullion products were approved by Shanghang Gold
Exchange and could be freely traded in it, which enhances our brand effect.
In 2009, ―Zijin‖ brand Zinc Bullion(Zn99.995) produced by Inner Mongolia Bayan Nur Zijin
Company has passed Shanghang Gold Exchange Delivery Brand registration. In May 2010, the
Zinc Bullion won the title of The Famous Products of Inter-Mongolia Autonomous Region.
The cathode copper,copper concentrate and iron ore concentrate are all produced strictly according to the national standards, with various indexes meeting or exceeding national standards.
According to Zijin’s Customer Satisfaction Survey in recent years, the customer satisfaction have been improved continuously, leveling or exceeding other benchmark enterprises in the industry. In 2010, the price of our company’s main products kept going up, but the Company kept its commitment to customers and stably provided the products to meet customers’ requirements, with 100% contract fulfillment rate, winning good faith from the customers. In 2010, our company opened gold regular chains in Xiamen, Longyan and Shanghang, with the products demand exceeding the supply and excellent services, greatly favored by the consumers.
Our company totally respects and protects the legal rights of suppliers and customers, never invades the intellectual property rights such as trademark right and patent right, strictly protecting the secret information and proprietary information of suppliers and customers, keeping good cooperations with them. Our company completely respects and understands customers; shows sincerity to customers; always meets customers requirements; continuously improves service creativity and quality.
IV. Further Strengthen the Management of Anti-Fraud Work
Supervision Auditing Office, as the Company’s main anti-fraude work office, is directly under the leadership of the Board of Supervisors. Our company has established a three-level vertical supervision system of ―Group-Company Supervision level – Area Supervision level –
Primary Supervision level‖. Our company attaches great importance to the anti-fraud in construction and logistics work, and has established and been improving effective anti-fraud working system, promoting the Staff Code centered on ―Honest and Responsible‖, strengthening the cheap politics education of the employees, resolving the current problems and eliminating root causes. The middle management level and above are required to sign incorrupt responsibility code and to actively participate in anti-commercial-fraud, to strictly correct and prevent the misconduct in production and management work, so as to make a fair and healthy commercial cultural atmosphere.
Chapter 4
Protection of Employees’ Rights
I. Protection of Employees’ rights
Staff Number
There are 21,455 employees in total in 2010 with an increase of 10.2%, comparing to 2009. Year 2008 2009 2010 Employees 19304 19474 21455
Talent Introduction
We believe that employees are our most precious resources. Moreover, we practice sex and racial equality under our Labor and employment system.In 2010, we have recruited 94 employees with great talents, among whom talents of Bachelor degree or above accounts for 80.9%, that of middle management accounts for above 70%, and fresh university graduates 71 people.
Staff management
Under labor contractor system, our company formulates human resource management policy on staff training, payment, welfare, performance, promotion, and internal job transfer.
To maintain harmonious labor relations and to dedicate ourselves to ―creating a harmonious growing environment for the enterprise, the employees, and the community‖, our company, according to Labor’s law and the reality, makes amendments to labor contracts, and pays insurance for our employees, and ensures that their wages grow at the same time as our business prospers.
II. Compensation & Welfare System and Performance Appraisal System
The labor union, the staff representatives and the administration signed the commitment of community convention according to the related documents of the provincial, municipal and county governments. In the meantime, we organized the chairperson of the administration, the supervisor board and the labor union to sign the ―Remuneration Collective Agreement of the Zijin Mining
Group Limited Company‖.
(1) Compensations and benefits
For different positions, our company builds the compensation benefit system based on structural salary, consultative salary and annual salary. We determine the compensation standards according to the staff’s ability, the position, the education background, intelligences, contributions, the comprehensive qualities, etc. Further more, we adjust and maintain that according to the staff’s achievement and corporate operation state. All the above measures meet the demand of enterprise’s present development.
In 2010, our company adjusted the staff salary twice. The average growth is 15% approximately.
Our company affords the social insurances and the housing-funds for our employees according to the national stipulations. Except for these, we establish the health insurance, the company insurance, the long term prompting system for our employees. We paid 20.015 million for our employees’ social insurances and 14.86 million for their housing-funds in 2010.
The expenditure circumstances of employees’ social insurance for companies and
departments directly under the Zijin Mining Corporation from 2005 to 2010 Endowment Unemployment Procreation Compo Medical Year insurance insurance insurance insurance insurance
2005 5,916,313 682,651 159,285 355,704 1,662,067
2006 6,263,090 695,899 243,565 695,899 1,505,720
2007 5,995,170 666,488 233,180 666,188 1,633,762
2008 8,355,117 928,346 324,936 928,346 1,822,736
2009 11,781,508 1,258,410 458,746 1,461,258 2,778,855 2010 12,616,944 1,31,1,783 479,152 1,712,831 3,894,537
III. Training System and Career Developing Support for Employees
We always focus on the employees’ training and the continuing education, for which we built consummate institution and establish its management systems. Ensured from the policy, the organization, the outlay and some other aspects, we can persistently keep our trainings going for the employees from different levels. We have had multiple training projects in 2010, for instance, the On-the-job training, the managing training, the professional skill training and the continuing education.
Our company invested 150 million Yuan to build the Shanghang Education Base of Zijin
Mining College of Fuzhou University, which can enroll 1000 students. Meanwhile it is the training center of the whole group. In 2010, our expenses of training which includes developing targeted area students, in job professional skills training, postdoctoral working station, employees’ continuing education, off-job education and some other aspects is about 2.7 million. The cost for equipments and teachers of Zijin Mining College Education Base is no less than 5 million yuan.
The outlay for employees’ in job training and developing in Zijin Mining College in recent years
Items 2007 2008 2009 2010
The expenditure of 2,901,277 1,865,317 1,335,066 1,659,428 the staff training
The lab 2,000,000
The logistics The expenditure of 1,000,000 teaching facilities facilities The property 600,000 management
The scholarship 700,000 700,000 700,000
The expenditure of The teaching 300,000 the Zijin Mining bonus college The admittance 250,000 publicity and the practice
The donations to the Fuzhou 2,000,000 2,000,000 2,000,000 University The allowance 100,000 for the teacher The expenditure of The travel the internal training expenses of the 100,000 students The post-doctoral 400,000 working station
The total 2,901,277 4,565,317 4,035,066 9,109,428
IV. The Occupational Health and Psychological Health Care of Employees
According to the national provision and company’s policies, our company provides labor-protecting products for the front-line workers. The providing standard correspondingly adapts to the working circumstances and positions. We provide the labor protective products of special positions (like poison defense, dust prevention, rubber gloves, etc.) and the allowance respectively to staff who works in the special positions. The accumulated labor protection expenses are 3.5 million RMB in 2010.
We organize physical examinations for all the on job employees and specialized physical examinations for employees in special positions. We also organize specialized gynecology examinations for female workers. The expenses of physical examinations for all workers are 1.2 million RMB in 2010.
Our company also arranges expert lectures which is about position health and mental health to teach our employees the knowledge of position health.
V. The Help and Supporting toEmployees
Our company adheres to the managing principle of people as the foundation. We care the poor or sick workers and the elderly or retired employees. We particularly raise the consolation money for the employees with serious diseases. And thus the employees further their commitment for our company. We built the Zijin family, which is progressing together in harmony. In 2010, the labor unit has invested 126994 RMB for 3692 workers (include 538 female workers with serious disease) to join the mutual medical program of Longyan city. Parts of employees with serious diseases have claimed for medical expenses from the program. Recently, our labor union invested 131984 RMB to put 3841 our leaguers (include 572 female employees with serious disease) into the fourth mutual medical program of Longyan city for 2011.
We organized more than 60 people from relative apartments to visit 22 employees who lost relatives or their families. They subsidized 55 employees (include retired employees) 205,200
RMB who had economic difficulty because of the illness.
VI. The Cultural Life of Employees
The Company regularly holds sports and arts activities at national holidays like New Year’s
Day, Women’s Day, May 1st Day, May 4th Day, Mothers’ Day, July 1st Day, the Mid-autumn
Festival, November 1st Day in 2010.On account of the psycho-influence caused by twice accidents, our company developed serial activities called ―coagulate the mind and create the future together‖.
This serial activities included Calligraphy and Photography Exhibition,“Women hold up half the sky‖ Forum, the collection of ―brilliant ideas ‖ activities for environmental safety management, the election of the top ten moved and so on. The Zijinshan Gold & Copper Mine, a subsidiary company, also organized the second employees’ sports meeting. Each unit developed various kinds of sports activity like balls.
Chapter 5
Community Work & Commonweal and Donation
In the recent years，as the booming growth of our corporation, we have never forgotten to reward society and kept our duty in mind which is to promote the economy and social developments. We have actively fulfilled our social responsibilities and logos of ―Keep the enterprise, employees and society growing harmoniously”、“ Harmony makes fortune‖. We have tried our effort to build a ―harmonious Zijin‖.
Ⅰ.Commonweals and Teaching Assistances made by Zijin in 2010.
1、We had made a 114 million yuan financial contribution to participate in the construction of the new water source project of Shanghang County. Water was provided before the Spring Festival of 2011.
2、In the year 2010, we had set a social pension insurance account for everyone of elders lived in Jinmei village and Jiu county whose age was beyond 60 years old. It was the first case in setting social social pension insurance account for peasantry by the enterprise in Fujian province.
3、Right after the serious flood at June 15 in Fujian province, in July 2010, we had donated
10 million Yuan to disaster areas in the special soiree ―standing together in the eventful days, filling happiness in Fujian‖ which was held by the relevant departments of the Fujian province.
4、We have always attached great importance in caring and aiding the underprivileged group in society. Since the August 2010, we have given a 100-Yuan venerable age allowance to each of
9600 elders whose age was beyond 80 years old and a 200-Yuan living allowance to each of 300 orphans in the school monthly in Shanghang county. According to statistics, we have donated more than three million Yuan quarterly for the elders’ and orphans’ allowances by the local Civil
Administration Bureau and Labor and Social Security Bureau.
5、In the year 2010, we invested 2.5 million yuan to build the Shanghang Watereast bridge.
We also donated 3 million yuan as the education fund for 3 schools such as Eastcity primary school and 370,000 Yuan for the Shanghang Education Bureau.
6、Right after Yushu earthquake in Qinghai, we had taken a active participation in earthquake relief work immediately. Company and employees have totally donated over 3 million yuan to the disaster-affected area.
7、After typhoon-caused flood at September 21 in Xinyi city, company and affiliated branches have donated more than 51 million yuan to the disaster-affected area totally.
8、At December 5, 2010, the Longyan Charity Federation was funded. We had promised to donate 10 million yuan to the federation.
9、In 2010, the Shanxi branch company has pumped 3 million yuan to assist the new socialist countryside construction in nearby villages and its compulsory education . It has also invested
1,500,000 yuan to help Fanzhi county to build as a National Health City and 50,000 yuan for the traditional education of Qizhou city.
10、To support the development of education in Changji prefecture of Xinjiang province, the northwest area branch company has invested 2 million as Zijin Mining education fund which could draw 100,000 yuan for the local education yearly.
In 2010, our total expenditure on social commonweals is 311,580,000 Yuan.
Ⅱ.Achievements in Social Disaster Relief Work
In 2010, a great number of events and geo-hazards caused by extreme climates have taken placed. We were an active role in social disaster relief work. Using our actual deeds, we fulfilled our CRS (Corporate-Social-Responsibility) philosophy completely.
1、When the earthquake struke the Yushu county at April 4, Qinghai West Copper Industry
Co.,Ltd, a wholly-owned subsidiary in Qinghai province, quickly organized the ―Earthquake
Relief and Rescue team of Zijin mining”and went straight to Jiegu town for their disaster relief work. In the coming 12 days and nights, They found four victims、lots of goods、cash and the safes. They helped to build tents, carry medicals for the medical adding spot. The team was finally honored as ―the advanced team in Kyushu earthquake relief work‖ by the committee of Guoluo prefecture.
2、In July 2010, a serious flood flooded the urban area of Maqing county. Qinghai West
Copper organized a flood relief team and reached the Gequ River quickly. In the work which lasted for 6 days and nights, they had fixed the dam and dredged the river course , transported
13,750 tons of building stone from the mine, excaved and leveled more than 180,000 cubic meters of earth and stone, prevented and blocked the dam burst spot over 100 meters long, widen and strengthen the river course over 900 meters long. The oil consumption was 16,680 gallons. The direct financial expense was 861,400 Yuan. Lives and properties of the people in the county had been saved.
After the flood destroyed part of the road in the pastoral committee located around the mine,
Qinghai West Copper sent three engineers and a loader to take 550 hours to fix the road 102 kilometers length. It cost more than 200,000 Yuan, but brought and guaranteed the convenience for the herdsmen.
3、In August 7 2010, a serious debris flow struck Zhouqu county in Ganshu. The subsidiary company- Ganshu Yate mining limited company mustered 10 unites of equipments of different kinds and organized the rescue team immediately. They were bound for Zhouqu earthquake stuck area on August 9. They had fought against the disaster in Zhouqu earthquake stuck area for a week. They unblocked the road 75 kilometers long in Guoye town and Dachuan town, dealt with as many as 61 spots of land hazards caused by landslides and the debris flow. It helped to bring convenience to more than 10,000 people for their transportation. The Renmin net reported their deeds.
4、In the spring of 2010, a serious snowstorm disaster in 60 years stuck the Altai Area. The
Ashele copper mine company quickly organized a disaster relief team to help to unblock roads for severer villages around the mine and the road from the copper mine to the town. They also brought relief supplies to local residents. The Ashele copper mine company had organized 230 vehicle trips, which conclude the snow blower, the bulldozer and the forklift and blew the snow from road 9000 kilometers long. The expense directly used in the snow blowing and transportation keeping was more than one million. Our company was honored as ―the advanced group in the disaster relief and rescue work‖ by the government of Haba River county.
5、On June 15 2010, farm families on both banks of the Jiu county River were flooded around the Zijin Mount . Many roads were slid and crashed. The Zijinshan Gold & Copper Mine tried hard to prevent the flood from the mine, meanwhile instantly organized mechanisms and mobilized men to join the flood relief work for local farm families. It also provided disaster relief supplies and disinfectants freely to the surrounding villages, helped them sterilize and clean the flooded road. It also invested 1 million as the disaster relief fund for the after-flood reconstruction.
Ⅲ. Coordinate With the Government on Promoting Local Economy and Livelihood
We have taken great concern in investing and pushing the community development around mines. We employed a plenty of local residents, promoted the local economic development.
1、Promote the local economic growth and increase the employment opportunities.
During the report period, to promote the local economic growth, we have totally invested and setup over 40 companies (except the Zijinshan Gold & Copper Mine). The total amount of investment is 3,053,690,000 yuan. It has provided 7200 job opportunities for the local. From 2008 to 2010, the tax paid to the Shanghang County has been totally 1,365,050,000 Yuan.
2 、 Make contributions to the construction of the new socialist countryside and the development of livelihood issues, employment and the community construction
⑴ The Guizhou Zijin company has invested nearly 20 million to build the Shuiyin Cave Immigrant New Village. To bring convenience to the immigrant and keep the environment of the mine in good reputation, a market had been built. The Shuiyin Cave Immigrant New Village was the demonstration village of the construction of the new socialist countryside in Guizhou province.
It also became one of the demonstration samples which pushed by the local enterprise in the construction of the new socialist countryside.
⑵ The Bayan Nur Zijin Non-ferrous Metals Limited Company and the Urad Back Banner
Zijin Mining Company, located in the Inner Mongolia Autonomous Region, took active response to the program of restoring grazing areas to grassland which was pursued by the local government.
To the end of 2010, 2300 job opportunities were provided and the tax paid to the local government was over 600 million.
⑶ According to incomplete statistics, the Qinghai West Copper Industry Co.,Ltd has donated about 15 million in the construction of infrastructural facilities(the road from Dawu to the mine ), social securities aiding, student-aiding and social sympathy. To the end of 2010, the company has provided job opportunities to about 1300 residents of Qinghai province including provided 150 jobs to residents of Guoluo prefecture.
⑷ In June 2010, the Xinjiang Ashele Copper Mining Company took active response to the call of the Autonomous Region government, joined the water conservancy construction program of ―Reviving the Breeding and Improving the Lives of the People There‖ in the first batch. It invested over 30 million to build the Yelaman Reservoir in Burqin County, which would greatly help to ease up the drought. Thirty thousand mu hectares of land were converted into farmland with effective irrigation system.
⑸ The Zijinshan Gold & Copper Mine increased investment for the education in rural area around the mine. The mine put nearly one million into improving students’ camps and the teaching buildings, providing over 30 teaching computers for of the Shizhen primary school and Meixi primary school. Every year, the college candidates in villages around the mine such as Tongkang village, the Jingmei village and the Shizhen village can get a financial aiding (the aiding of the candidates who are enrolled into an undergraduate program is 3,000 and the higher diploma program 1,500). Every Children’s Day, primary schools around the mine can get a holiday fund for over 20,000 Yuan. In the recent years, the mine has invested over 10 million to help the local to build the main road, start the drinking-water program, etc. From the exploiting of the mine, up to 300 local workers including the losing land farmers have been employed. Eight certified construction teams are servicing for the technical transformation program of the mine.
⑹ Push the fisher folk turning to other field by setting up the Zijin Dragon Lake Company
After the July-3 Event happened, for making an overall program for the ecological farming, fishing and the tourism in Ting River Valley and protecting the environment from being polluted, the Dragon Lake Zijin Ecotourism Company (the Dragon Lake Company) had been setup. It is a joint venture by the Fujian Zijin Investment Company, a wholly owned subsidiary by the Zijin
Mining, and the Yongding Founds of the Nation State Asset Investment Limited Company. In
December 24 2010, four companies including the Yongding Founds of the Nation State Asset
Investment Limited Company，the Fujian, Hakka Tourism Limited Company, Xinhuadu Industries and Xiamen Hengxing Limited Company increased the endowment of the Dragon Lake Company.
After the increase, the Fujian, Zijin Investment Company held the 70 percents of its stock equities.
The Dragon Lake Company would be in the leading position in the development and integration of the tourism resources among the Ting River, the Long Lake and the periphery area.
It helped to promote the Dragon Lake ecological tourism development program to be one of the key programs of Fujian province. It excited the tertiary industry and bought new job opportunities to the local.
Ⅳ. Honors for Fulfilling Social Responsibilities
We have tried our most efforts in fulfilling our values of ―Keep the enterprise, employees, the society growing harmoniously‖. We have always had the passion for the social welfare service.
In December 2010, the Western Fujian Jinghe Chen Charitable Funds founded by Jinghe
Chen, the chairman of our company, was listed on the fourth of Chinese top 10 private charitable funds published by Forbes
Ⅴ. Performance in the Social Welfare Service of Oversea Branches
The Tajikstan ZGC Company has played an active role in improving local education, the medical and health condition, infrastructure facilities and rescue and relief work, by donations and mechanism support. It has donated 482,000 RMB to local schools, 1,856,000 RMB in repairing community bridges, roads, campuses and the disaster relief. It also gave 398,000 RMB to aid local poor families. Chapter 6
Report of the Safe Production Performance
Ⅰ. The Safe Production Management System
1. The Zijin Mining has established and improved the system of safe production. The corporate
headquarter founded the HSE Comprehensive Committee and the HSE Department, while the
production unit set up HSE Management Offices having full-time or part-time HSE engineers
and HSE supervision position in each working group
2、By promoting the construction of standard system, the Zijin Mining and its owned companies have had a set of HSE and position operation regulations which can basically fits for the enterprise management. Meanwhile the regulation can always be updated and revised according to latest national and local policies.
3、Create the safety management standardized enterprise
End to the report date, some of the owned companies, involving the Zijinshan gold-copper mine , the Guizhou Zijin Mining, the Huncun Zijin Mining, the Shanxi Zijin Mining, the Urad
Back Banner Zijin Mining and the Qinghai West Copper have obtained ―the (mining) company of the third grade safety standardization”. The Xiaochang tailing pond (in the Shuiyin Cave Gold
Mine of the Guizhou Zijin Mining) and the Golden Birds Mountain tailing pond (in the Shanxi
Zijin Mining) have been certified as ―the third grade safety standardization unit‖. The exclusively invested company, the Fujian Gold Mount Gold Smeltery has been certified as ―the second grade safety standardization company.‖
4、 Measures are taken to fulfill the Notice on Further Strengthening the Safety Production issued by the State Council and promote ―the Six systems‖ construction of danger avoiding in underground mines. According to the requirement of the State Administration of Work Safety, a general development plan, which defines the goal and the time schedule, has been made. All owned companies were required to complete the construction of ―the six systems‖ for the security and danger avoiding within three years.
5、 Measures are taken to promote the construction of online examinating system in the tailing pond. Tailing pond built and under building, whose volumes are over one million cubic meters must complete the construction of online examinating system before June 2011. Ⅱ. The Emergency System
In all Zijin owned companies, the mine emergency rescue system of safe production is being established and consolidated, with relevant emergency preplan being compiling. Mines that have favorable conditions are equipped with mine rescue teams which are well trained and necessary rescue equipments. The Zijinshan gold-copper mine Rescue Team has been certified as the fourth grade in rescue capability. The Guizhou Zijin Mine Rescue Team has abtained the third grade rescue capability.
Ⅲ. The Safety Training
The company always focuses on the On-the-job third grade safety training. Safety training rooms equipped with the safety training facilities has been specially set up in all owned companies.
The third grade safety training educational materials considering enterprise features have been compiled. The safety training archive is compiled from person to person. The company also places much emphasis on the regular safety-training program. Each mine, plant and department make safety-training plans and put them into practice annually. Workers gather to study for improving their skills and safety consciousness before or after group meetings. Effective measures are taken to propagandize safety knowledge in the form of annual skill competition and security knowledge competition
Ⅳ. Expenditure in Safety Managements and Safety Accidents
In 2010, the Zijin Mining Group has spent about 140 million in promoting the safety management of subsidiary companies in Fujian province. (The total expense was about 300 million from 2008 to 2009.)
The number of the safety production accidents is falling year by year. The death rate of creating 100 million product is far lower than the average in Fujian province or the whole nation.
（Details as the following table）
The table of compararison safety indicators among the Zijin Mining, the Fujian province and the whole nation The The whole The Fujian The Zijin The Zijinshan Indicators Year serial nation province Mining gold-copper mine number Group company
2007 246619 9160.14 156.98 31.42
The gross 2008 300670 10823.11 183.49 38.73 1 product (100million) 2009 335353 11949.53 226.00 44.79
2010 397983 14357.12 287.54 65.03
The death rate of 2 creating 100 2007 0.413 0.46 0.134 0.159 million product
The death 2008 0.312 0.312 0.06 0.077 rate of 3 2009 0.248 0.248 0.044 0 safety
accidents 2010 0.201 0.201 0.045 0.03
Notes:
1. The related statistics of the Fujian province and the whole nation are extracted from 《Statistical
Communique on the 2007~2010 National Economic and Social Development of China》and
《Statistical Communique on the 2007~2010 National Economic and Social Development of the
Fujian Province》
2. Safety accidents happened in plant-engineering companies have been counted.
Ⅴ. The September 21 Dam Bursting Accident happened to the Xinyi Zijin Company
On September 21 2010, by the influence of the 11 typhoon called ―the Vanbiya‖, an infrequent rainstorm attacked the Yinyan Tin Mine area, which belongs to the Xinyi Zijin Company. The primary dam of the Gaoqi Mount tailing pond was burst, which caused serious casualties and property losses. Three days later, the Xinyi Zijin Company immediately donated one million for flood relief, although it had suffered great loss. On October 12, for helping local people to overcome the difficulties in wintering, it donated half a million to the Qianpai town again. For the after-flood reconstruction, the corporation had donated 50 million to the Xinyi disaster area.
At the present, the investigating panel organized by the committee and the government of
Guangdong Province have made an investigation identification for the September 21 Dam
Bursting Accident. The Xinyi Zijin Company，the Baoyuan Mining and the Zijin Mining was sued as person and properties damages in the Xinyi people’s court by the Xinyi government, victims from Dadong village and Shuanghe village. Considering the accident responsibility remains to be judged by the court because of complex accident causes. The Group has employed lawyers to make responding and protect its own benefits.
Related Information have been disclosed instantly. The further details will be published constantly.
Chapter 7
Report on Environment Protection
Ⅰ. Ideas on Environment Protection and its Management System
The environment protection idea: Gold or silver, a beautiful land is the best
View of Development on environment protection: Environment can never be the sacrifice of the economy.
View of Existence on environment protection: The environmental safety is the bottom line.
View of Production on environment protection: Make full use of limited resources and promote the circular economy.
The Group establishes the HSE Committee to lead and coordinate the environmental work of the whole corporation, and designates a vice-president to take in charge of the environment protection. The HSE Department is specialized in the daily supervision and management of the environment protection and water protection. The environment protection supervision offices are setup in all owned companies, forming complete environment protection management systems.
Regardless the compiled environment protection systems, the responsibility pledge for eco-environmental protection and safety had been signed with owned companies and related management departments to define responsibilities, objectives, requirements and the standard. The performance in environment protection plays a key role in the annual evaluation.
Ⅱ. Constantly Expenditure in Environment Protection and its Measures
According to incomplete statistics, owned companies had invested 300 million for the environment protection including 150 million for pollution control and the environment protection program in the Zijin Mount in 2010.
In 2010, the Dadongbei tailing pond in the Zijinshan gold-copper mine was completed. The biological film system used to treat acidic and Cu containing wastewater were put in use. The old wastewater treatment systems had been improved to enlarge their capacity. Eight on-line monitoring systems had been built and connected with the network of the supervision department of the government. The tailing-brick factory has been constructed. Both the volume of drained wastewater and the pollution factors met the requirements of total volume control. The attainment rate of the wastewater discharge was 99.74%. The area by greening the scoria formed and naked slopes was 198,800 square meters and the vegetation restoration area was 896 mu over the whole year of 2011. Expense on the vegetation restoration was 4,709,600 Yuan. The greening for the primary stele of the Zijin National mine park has been completed, and the total area was over 7200 mu.
In 2010, the Zijinshan gold-copper mine had totally produced 55,559,126 tones of tailings, including 2,669,960 tones of the industrial solid wastes discharge, 11,937,884 tones disposal, and
43,621,241 tones reused. The utilization rate of the industrial solid wastes was 78.51%. 1.17 tones of gold had been retrieved from the low-grade gold mine. The total product was 445,830,000
Yuan.
Companies including the Xinjiang Ashele Copper Mine, the Shangxi Zijin company, the
Hunchun Zijin company, the Ganshu Ater company and etc had succeed to have no wastewater discharge.
In 2011, more investmentment and higher environment and safety standards can be expected.
Ⅲ. The July 3 Environmental Accident happening to the Copper Hydro-leaching Plant
By the influence of the extreme weather, the flood occurred in Shanghang County in the later
June 2010. On July 3, an acidic solution leakage accident happened to the copper hydro-leaching plant.
1. About the Accident
On the afternoon of July 3rd 2010, about 9100 cubic meters waste water containing copper acid (copper ion and sulphate contained, no toxic substances) leaked and flowed into the Tingjiang
River from the flood-discharge tunnel, due to the lasting heavy rainfalls, resulting in the major water pollution accident of the Tingjiang River and cage-culture cultivated fish in the lower reaches died. On the evening of July 16th, No. 3 transfer tank which was used to dispose the waste water for emergency partly leaked and about five hundred cubic meters wastewater flowed into the Tingjiang River. Zijin Mining Group took every concerned measures to reduce the impact of the leak of the transfer tank. By the investigation of Department concerned, the direct economic loss of the accident is RMB 31.8771 millions.
2. Treatment of the Accident by Concerned Authorities
According to the rules of concerned environmental protection laws, Fujian Provincial
Department of Environmental Protection makes administrative punishment to Zijinshan Gold &
Copper Mine as followings: instruct the company to take controlling measures to eliminate pollution until the completion of the treatment and a fine of RMB 9.56313 millions is imposed. At the end of the year, Fujian Provincial Department of Environmental Protection makes another administrative punishment: the company’s chairman Chen Jinghe, executive vice president and concurrently the Mine Director of Zijinshan Gold & Copper Mine Zou Laichang are fined separately. On January 30th 2011, the company received a criminal judgement issued by Fujian
Province Longyan City Xinluo District People’s Court, which determined that the defendant,
Zijianshan Gold and Copper Mine, commit a serious offence relating to environmental pollution and a fine of RMB 30 million was imposed (administrative fine punishment included). Five individual defendants (the former vice president, etc.) were sentenced to imprisonment for 3 to 4.5 years with fines. The defendants appealed against the sentence.
3. Reform and Consolidation
After finishing the emergency disposal of the accident, the company issues a notice to
Zijinshan Gold & Copper Mine to comprehensively implement the rectification work and requests
Zijinshan Gold & Copper Mine to check the existing problems and authorities’ rectification requirements, comprehensively implement the rectification work and obviate hidden/potential dangers to realize long-term development. Up to December 31st, hidden/potential dangers removed and rectification implemented are 44 items in total and another 18 items are under implementing.
Zijinshan Gold & Copper Mine focuses on the follow-up reform and comprehensive management of the environment according to the suggestion on this accident disposal which is put forward by National Special Working Group as follows:
Reconstruction at the original place, setting up defenses; safe and reliable, economic reasonability; attaching importance to flotation instead of hydrometallurgy, treatment from headstream; overall planning, scientific decision; mutual balance; advancing side by side.
Zijinshan Gold & Copper Mine The National Joint Working Group also requests that
Zijinshan should guard three passes and set up five defenses. The plan, design and construction work are progressing smoothly.
(1) Finish the planning and design texts of copper mine system
After several communication and coordination with China Nerin Engineering Co, Ltd. (Nerin),
Nrein has finished the planning texts of rectification engineering for Zijinshan Gold & Copper
Mine. Experts from China Nonferrous Metals Industry Association will evaluate the plan and then submit to related department for approval in accordance with the relevant procedures.
(2) Perfect/Improve the system to separate clean water from effluent and construct engineering for environment-protection emergency
Firstly, the open-pit mining plant takes the drainage-collection-disposal measures to dispose the catchments water. 360000 cubic meters flood control pool is constructed for emergency use and reagent adding system is also constructed to ensure the water quality meet the required standards.
Secondly, Through constructing, reconstructing and extending, 12000 cubic meters flood control pool is added for gold mine system, which efficiently increases the storage capacity in rainy season to improve the ability of flood control.
Thirdly, All the drainage valleys construct reagent adding system and equip liquid caustic soda adding system to dispose waste water in the beginning to ensure the drainage water reaches the required standards.
Fourthly To standardize the in-service reservoirs and dams to remove potential danger ①
Jiangshandong dam has been broadened to 150 meters; ② For Xinwuxia reservoir, 80000 cubic meters storage capacity has been increased by dredging; cutting slope and unloading measure and anti-seepage treatment have been employed for the upstream side of the Xinwuxia reservoir dam, and design specifications are followed in spillway construction; ③ For Jinzihu reservoir, 30000 cubic meters storage capacity has been increased by dredging; the design of heightening project for Jinzihu reservoir dam has been finished in the main.
(3) Finish the construction of online monitoring facility and ecological fish cage culture to monitor the water quality change around the mine area
In order to closely and carefully monitor the water quality change in/around the mine area,
Zijinshan Gold & Copper Mine has invested more than 8 million RMB in September 2010 to equip 8 online monitoring site with the new equipment which could upload the online monitoring data to environmental protection department simultaneously. Three observation areas Jinshan bridge, Ermiao trench, Sanqing pavilion are selected to set up ecological fish cage culture in
Tingjiang river.
(4) Make all-out efforts to construct the environmental protection emergency engineering to ensure passing flood season safely
According to the follow-up rectification plan, regulating reservoir and environmental protection system will be constructed at Yutian Pit and Duilian Pit; solution pool in the area of Copper
Hydro-metallurgical Plant is reconstructed; three vertical cut-off walls and a vertical gravity dam are also in constructing. More than 70% rectification items of environmental potential dangers have been finished and other items are under constructing. Emergency disposal system and engineering will be finished before the flood season in 2011.
In 2011, Zijinshan Gold & Copper Mine will thoroughly apply the national’s 12th Five-Year Plan on safety and environment to construct security system, strengthen enterprise production safety responsibility, promote further environmental protection reform and improvement, focus on the standardization of environment-protection, reinforce the construction of safe management in team and group, and consolidate the safe management in the unit at the grass-roots level. Zijinshan
Gold & Copper Mine will try the best to finish the follow-up rectification work at the end of 2011 in accordance with the request of high starting point plan, high standard construction and high quality of management to achieve the goal of ensuring the ecological safety in Tingjiang river and realizing long period of peace and stability and sustainable development.
IV Treatment of Potential Danger in Environmental Safety
Announcement about supervision results of listed companies’ environmental verification from
Ministry of Environmental Protection of PRC shows that six companies owned by Zijin Mining
Group failed to timely fulfill the promise of rectification requirements when listed. The six companies are Hunan Anhua Xinfeng Mining Company, Fu’ning County Zhenglong Gold Mine
Resources Development Co, Ltd, Longkou City Jinfeng Co, Ltd, Longkou City Jintai Gold Co,
Ltd, Zijinshan Gold & Copper Mine, Xinjiang Jinbao Mining Co, Ltd. After Environmental
Protection Supervision Centre from Ministry of Environmental Protection pointed out the problems of environmental verification at site In September and October 2009, the relevant enterprises started the rectification work. Please refer to Zijin Mining Group’s notice on May 28th
2010 for The rectification results. The rectification and check results are as followings (Fu’ning
Zhenglong has passed the re-check of local environmental protection department when noticed):
1、Hunan Anhua Xinfeng Mining Company
The company finished the rectification of reported problems in June 2010. Third level of environmental protection departments in Hunan Province checked the results at site.
Environmental Protection Department of Hunan Province submitted the check results to Ministry of Environmental Protection of PRC on June 25th 2010. Acceptance group organized by
Environmental Protection Bureau of Yiyang City and Environmental Protection Bureau of Anhua
County checked the rectification work at site and Environmental Protection Bureau of Anhua
County issued the check opinions that Hunan Anhua Xinfeng Mining Company had finished the rectification work before the deadline, pollutant discharged reached the required standards and implemented Ministry of Environmental Protection’s order for listed companies’ environmental verification. The acceptance was agreed.
2、Longkou City Jinfeng Co, Ltd
The company finished the rectification of reported problems in March 2010. Three levels of environmental protection departments in Shangdong Province checked the results at site for many times and submitted the check results to Environmental Protection Department of Shandong
Province.
3、Longkou City Jintai Gold Co, Ltd
The company is only proceeding geological prospecting now. The old processing plant is in the condition of suspending production and the new processing plant stops construction when Zijin
Mining Group takes over it. The company will not resume production and construction before solving the tailings dam problem and getting the approval of environmental department. Several measures—covering up with soil, planting trees, constructing protective dykes and water-guiding channel —were employed before June 2010 for the tailings dam.
4、Zijinshan Gold & Copper Mine
Zijinshan Gold & Copper Mine has finished the rectification of reported problems in November
2009 and in June 2010. Environmental Protection Bureau of Longyan City and Environmental
Protection Bureau of Shanghang County have checked at site and submitted the rectification results to Fujian Provincial Department of Environmental Protection.
5、Xinjiang Jinbao Mining Co, Ltd
The company has finished the rectification of reported problems in June 2010. Environmental protection departments of Altai region and Fuyun County have checked at site for several times and have submitted the rectification results to Xinjiang Department of Environmental Protection.
V National Monitored Key Enterprise
On 30th December 2009, General Office of Environmental Protection Ministry issued ―the list of national monitored key enterprises 2010‖. Ministry of Environmental Protection selected the enterprises whose cumulative industrial emissions is up to 65% in total as national monitored key enterprises of 2010. The selection was based on the unit of province, autonomous region and municipality and the environmental statistics database of 2008, according to the efflux of COD and ammonia nitrogen（ammonia-N） in wastewater and the emissions of sulfur dioxide and nitrogen oxides in exhaust gas. Chongli Zijin Mining Group CO.,Ltd was listed as national key enterprise monitored for waste water, Guizhou Zijin Mining Group Co.,Ltd and Bayan Nur Zijin
Nonferrous Metal Co.,Ltd are listed as national key enterprises monitored for waste gas.
Environmental protection statuses of the three companies are showed as following: Emergency plan for Drainage of main pollutant Environmental protection facilities construction and operation environmental pollution accidents Drawing up the environmental Tailings pond is constructed and impermeable membrane is built in the bottom of the pond; section of flood control pollution accident emergency system is also constructed. The tailings pond video monitoring system is networked with provincial and local Main pollutant of the company is waste water. plan for unexpected incident and environmental protection department. Waste water accidental pool, waste water collecting and disposal pool, water Chongli Zijin Mining Group Monitored results from monitoring station of organizing the ambassadors from recycling facility, multi-tube boiler flue gas desulphurization dust remover, three-effective wet dust precipitator, CO.,Ltd. Zhangjiakou City shows that the waste water is national environment setups to single-engine impulse bag filter of dust precipitator are also employed. Online monitor is equipped to monitor CN- and recycled and reused, non-discharged. take part in the environmental COD along the downstream section of the tailings pond. All the environmental protection equipment are operating protection emergency drill on the normally. spot. Main pollutants of the company are boiler flue gas and waste water. Boiler flue gas is discharged through chimney, steadily and successively。Majority of the Boiler flue gas granite water film spraying dust precipitator, calcium lime wet desulphurization facility are constructed. waste water is recycled and reused after disposal and Boiler flue gas auto-monitoring system is employed to monitor the factors of particulate matter, sulphur dioxide and Drawing up the environmental small amount is discharged at intervals. By the Guizhou Zijin Mining Group current velocity. The system is checked by Guizhou Environmental Monitoring Corps in June 2010 and networked with protection accident emergency monitoring and appraisal of local environmental Co.,Ltd. the source of pollution anto-monitoring center of Guizhou Environmental Protection Department. Tailings pond, waste plan for Guizhou Zijin Mining protection department, in the boiler flue gas discharged water disposal facility and waste water recycling facility are constructed. The environmental protection facilities are Group Co.,Ltd. in 2010,the emissions of sulphur dioxide is 75.4 tons in operating normally. The comprehensive waste water disposal system is under constructing. total, smoke and dust emissions is 25.3 tons, waste gas emissions if 18250 tons and COD emissions is 91 tons. All the emissions meet the standards. The main pollutants of the company are flue gas and waste water that contained sulphur dioxide. The flue gas is discharged through chimney, steadily and successively. Majority of the waste water is recycled Drawing up the environmental after disposal and small amount is discharged at Flue gas impulse bag filter of dust precipitator, electronic dust remover, acid tail gas ionic liquid absorption system are Bayan Nur Zijin Nonferrous protection accident emergency intervals. Monitoring result from Environmental employed. Waste water neutralization, oxidization, filter pressing, dynamic membrane reverse osmosis filtration treatment Metal Co.,Ltd. plan for Bayan Nur Zijin Protection Monitoring Station shows that, in 2010, system are constructed. All the environmental protection facilities are operating normally. Nonferrous Metal Co.,Ltd. sulphur dioxide emissions of the company is 520 tons, waste water emissions is 293000 tons, COD emissions is 22 tons. All the emissions meet the standards and under the aggregates control.
VI Integrated Utilization of Resources
The Zijin Mining Group always pays great attention on the research and application on the key technologies and difficult issues in the field of integrated utilization of resource, and largely increases the capital input for the relevant technical transformation and innovation. This factor contributes a lot to the comprehensive exploitation of symbiosis, associated and low-grade mineral resources as well as the rational utilization of solid waste and waste water in the segment of ore mining, enormously increases the rate of output and multipurpose utilization level of mineral resources. Meanwhile, the company also benefits a lot in building up a resource-saving enterprise and improving the level of sustainable development.
As for the integrated utilization of low-grade ore, under the guidance of Technical Research and
Engineering Project on combined mining for Zijinshan Low-grade Gold and Copper Ore, for the special kind of mine, the upper layer of which is gold and the lower copper ,the company develops the safe and highly-efficient combined mining technology, the mineral separation technology for the gold-bearing lean ore with high powder rate, the biohydrometallurgy technology for extreme low-grade copper ore, the recycle technology for low-grade copper-bearing gold ore and some other integrated utilization technologies for low-grade resources. With the aid of these technologies, rational technological renovation and exploring the potentials of present technologies and facilities, the industrialization is realized and the Zijin Mining Group eventually makes the grade of useful gold ore drops to 0.2g per ton and copper ore 0.1g respectively. It is considered as the leading technology in the world. The recovery rates are increased by 0.6% and
5% respectively. Thus, the gold production is increased by 2.537 tons and the copper 8926 tons.
The total output value is increased by 820 million RMB and the profit is increased by 382 million
RMB. The dropped feed grade brings great economic and social benefits as the exploitable gold is increased by 30 tons and copper 50 tons. Furthermore, it has a great strategic meaning for improving the comprehensive exploitation level of low-grade resources in China. Besides, it brings significant benefits for the social and ecological environment, and is of great academic value as well as a very wide range of marketing application perspective.
In the aspect of the efficient utilization of secondary resources, the company launches the study of key technologies on the comprehensive utilization of Fe, Al, K, Ga and waste residue in copper tailings, as there are about 125 million tons of copper tailings in the tailing pond, not only
32
taking a great amount of land, but also causing a great waste of available resources. So far, the study has broken through a lot of key technologies, including the flotation technology for the tailings with low-grade alunite, the key roasting technology for alunite concentrate with low energy consumption, the key technics for producing alum and crystallization of potassium sulfate by roasting alunite concentrate, the key technics for producing high-purity alumina, the key technology and reagent for gathering and extracting gallium from acid mother liquor and the key technology of producing building materials with alunite leaching. After the study efforts are transformed into engineering application, relevant valuable ingredients would be recycled. It is estimated that the potential productivity would be 4.8 million tons of iron concentrate, 11.6 million tons of sulfuric acid, 4.6 million tons of potassium sulfate, 15 million tons of alumina and
72.5 tons of gallium. Thus, it could not only solve the stockpiling problem of tailings, but also remit the shortage of resources such as iron concentrate, bauxite and potash fertilizer in China.
Zijinshan Gold-Copper Mine and Harrison Western Asia (HWA) have jointly conducted a research on the treatment of copper-containing acidic waste water with the membrane technology.
A membrane system for disposing the copper-containing acidic waste water was established and successfully put into use, not only recycling the valuable copper contained in waste water as well as reducing the discharge of pollutants. A new method of capped winning cell and forced ventilation was adopted, reducing the emissions of acid mist and recycling the acid liquor. The tailings from gold mines, in place of clay, had been used to make baking-free and steaming-free building bricks, thus recycling the waste, reducing environmental pollution and making full use of resources. By improving the refining process and recovery technics, the gold smeltery successfully cut down the consumption of reagent, shortened the recovery time, reduced the handling capacity and emission of acid waste gas. Moreover, by carrying out the project of leaching waste water and gas, recycling the floating oil and the extracting agent inside, it could reduce the consumption of reagent and the discharge of organics as well as recycle the gold, the valuable metal inside.
Fujian Jinshan Gold Metallurgy Company Limited reduced the discharge of SO2, by optimizing its tail-gas-disposing technology and adopting the dynamic wave lye-recycling absorption technology. The waste water produced in the process of collecting Arsenic is sent back to the raw material workshop for ore blending to enhance the utilization effectiveness of Arsenic.
As for the waste water produced in the process of making acid, it is put back into the roasting
33
process for the utilization of acid leaching to reduce the consumption of the end product, sulfuric acid. The company wins the Certificate of Integrated Utilization of Resources issued by the
Cognizance Committee of Integrated Utilization of Resources in Fujian Province.
Bayannaoer Zijin Nonferrous Metals Company Limited attached importance to the integrated utilization of valuable metals in the smelting process. It adopts new acid-making technology and successfully recycles 0.4 million tons of vitriolic acid as secondary product every year. Meanwhile, it realizes the integrated recycle of valuable metals, such as copper, cadmium, cobalt, lead, and silver from the smelting slags. Therefore, it wins the Certificate of Integrated Utilization of
Resources issued by the Cognizance Committee of Comprehensive Utilization of Resources in the
Inner Mongolia Autonomous Region. In 2007, and awarded as ―the Paradigmatic Enterprise on
Recycling Economy‖ by the Inner Mongolia Autonomous Region and ―The First Environmental
Friendly Enterprises in Bayannaoer City‖ listed by the Bayannaoer government. Moreover, it passed the preliminary round of verification on cleaner production organized by the Inner
Mongolia Autonomous Region in 2010.
VII. Circumstances of Energy-saving and Consumption-reducing
The Zijin Mining Group takes energy saving matter as long-term strategy. The company strictly follows the national industrial policies, the requirements of marketing-access and the requirements of the Cleaner Production Standards, completely abandons the projects with outdated technology and high energy consumption and ensures the normal operation of energy-saving facilities which have already been established in its subsidiaries. It has carried out its own energy-saving standards which are superior to those stipulated by the nation, local governments or the popular industry standards，and always regarded the achievement of lower energy consumption as its important goal in its development plan. Besides, by specifying target mission and taking a series of relevant measures, depending on the following three steps, which are advanced technology, increased input and innovative management, the company intends to fulfill the implementation of its energy-saving standard from every aspect, establish a superior relational management system, enforce the supervision and inspection, strengthen the evaluation of energy-saving and reduce the energy consumption of unit product.
34
Comparative Statement of Energy Consumption Index Year China Fujian Longyan The Zijin Mining per unit Province City Group (Parent GDP Company)
Energy Consumption of 2009 1.077 1.15 1.76 0.1661 Unit Industrial Added 2010 0.1647 Value tce/10,000 RMB
Plus: The government has not release the data on energy consumption of unit industrial added value and per unit GDP in 2010 yet. (tce, tons of standard coal)
Chapter 8
The Scientific Research and Sustainable Development
During the report period, the Zijin Mining Group always took the development of its scientific innovation as an important support，the research and engineering application of key generic technologies as its mean developing line. At the same time, by constantly increasing the inputs for research and development, accelerating the integration of production, teaching and research, enforcing the exploration of non-ferrous metal resources，the company achieved obvious corresponding effects.
I.The Condition of Scientific Research and Development
In 2010, the total cost of scientific research in the Zijin Mining Group was 192 million RMB.
At present, an integral scientific developing and innovation system has been successfully established including The National 863 Project, 973 Project, Science and Technology Support
Project, Key Project in Province Region, Technology Innovation Project in Provincial enterprises,
Outstanding Youth Project in Province Region and so on. Furthermore, it won the first prize of
Advanced Science and Technology in Fujian Province. This year, the Zijin Mining Group had obtained 11 scientific and technological achievements and passed through relevant appraisals as well, most of which could be common technologies in this field and be easily disseminated and applied.
The Zijin Mining Group has 4996 professional technicians in total, including 600 ones in the
35
geological survey field, 1038 ones in the field of mining, mineral separation or metallurgy, 2093 ones working on mechanics and electrics, and 1265 other kind of technicians. There are 525 full-time members in the science and technology group, including 42 senior engineers with professor title, 218 members with intermediate title or above, 15 members with doctor degree and
95 members with postgraduate degree. Thus, with senior engineers with professor title as the leaders, united with other professional members of full ages, a comprehensive and high-qualified team has been established，which is engaged in the technological development and innovation.
During the report period, the company applied for 27 patent authorization including 18 inventive ones, and successfully obtained 12 patent authorization including 4 inventive ones. The patents above greatly improved the popularization level of intellectual property and the level of autonomous intellectual property rights which are frequently emphasized by the government.
II.The Integration of Production, Teaching and Research
During the report period, the Zijin Mining Group got official approvals for ―the National Key
Laboratory of Enterprises‖ and ―The Research Centre for Non-ferrous Metal Mineral Resources
Exploitation in Fujian Province‖. It built up an open stage for scientific cooperation and communications of the ―Integration of Production, Teaching and Research‖ works. Meanwhile, the company had National Enterprise Technology Center, academicians and experts’ workstations, post-doctoral workstations and other high-level research stations, invited 6 academicians from The
Chinese Academy of Engineering including the well-know experts Wang Dianzuo and Qiu
Dingfan, and 16 other senior professors as its science and technology consultants. The company cooperated with the General Research Institute of Nonferrous Metals in Beijing, Beijing Institute of Mining and Metallurgy, Central South University, Jiangxi University of Science and
Technology, other well-know research institutes and prestigious universities on jointly working on many projects and obtained significant social effects.
In the headquarter, Shanghang, the company purchased 80 mu lands, invested 150 million
RMB in total to establish the ―Zijin Mining Institute of Fuzhou University‖. Zijin Mining Institute has a teaching building area of 38373 square meters in total including decent teaching and laboratory buildings, museum, library, living apartments, refectory, sports and leisure ground, etc.
With superior educational management system, the institute cultivates its students by following
36
the mode of ―Integration of Production, Teaching and Research‖. At present, Fuzhou University has established the project of ―Cultivation of Talents by Common Cooperation between Schools and Enterprise‖ by cooperating with the company. Thus, the institute is gradually becoming the main platform for personnel training according to the aim of ―Integration of Production, Teaching and Research‖.
III. The Resource Exploration
In 2010, the Zijin Mining Group invested 223.2 million RBM for the geological exploration in total and brought up significant efforts, such as 232.41 thousand meters drilling, 21 thousand meters drilling in cave, and 34.4 thousand meters trenching. The newly increased resources or reserves (some of them are still waiting for the appraisal) are as follows: 71.83 tons of gold, 1.014 million tons of copper, 1.782 million tons of lead and zinc, 78 thousand tons of molybdenum, and
3 million tons of iron ore. Thus, it greatly guaranteed the sustainable development of the Zijin
Mining Group and ensured its steady and rapid development.
Chapter 9
The Deficiency on the Performance of Social Responsibilities and the Direction of
Improvement
I. The Problems on the Performance of Social Responsibilities
The serious accidents of the ―3rd, July‖ and the ―21st, September‖ incurred a lot of adverse effect for the Zijin Mining Group. With the criticism from the public media, a group of people considered that the Zijin Mining Group is irresponsible and fails to take its social responsibilities.
However, the company would like to face up to these criticisms directly and solve them immediately by reflection and the rectified mechanism. Only thus, could the company revise the defects in development and realize the scientific, harmonious and sustainable development in a better way.
Reviewing the last year, the Zijin Mining Group had the following problems in performing its social responsibilities:
The first problem: Some managers considered the outstanding economic achievements
37
are superior to environment and safety.
The deficiency in ideological understanding is one of the key reasons that lead to the occurring of ―3rd, July‖ accident. With the rapid development, the senior executives of the Zijin
Mining Group highly emphasize the significance of environment and safety. However, due to the pressure of fulfill the business objectives in time or pursuing the implementation scheduling of project constructions, some managers do not pay enough attention to environment and safety.
Some problems come into being with irregular operations and neglecting the environmental protection in mind.
The second problem, the corporate image can not catch up with its outstanding achievements.
Through more than a decade of mechanism innovation, management innovation and technology innovation, the Zijin Mining Group has gotten rapid development and values a lot on the repayment for shareholders. But the people who are the acceptors of the company’s social responsibilities can not get a clear view of its social efforts. Meanwhile, the company had got inefficient communication with stakeholders and did not spend enough time in creating harmonious public relationship and building up its social and cultural images.
The third problem: Under the new situation, the company has not adapted to the new role after the enterprise transformation.
With entering the capital market, the Zijin Mining group has already transformed its business nature and become a public and listed company. A lot of problems call for solution for the company during the transformation period, including how to be a qualified enterprise in transforming the original simple mining enterprise into a social public enterprise and how to perform its legal, ethics and social responsibilities besides previous economic responsibilities.
There would be a quite distance for the Zijin Mining Group to be an excellent listed company once ignoring the changes in its situation, connections and communications with Medias, and the cultivation of crisis handling ability during the development and transformation.
The fourth problem: The essence and the right method of its social responsibilities.
As the common problem confronted by most Chinese enterprises, the social responsibilities of the company are still not performed systematically, designedly and insistently enough. The relational management and supervision is obviously weak. The social responsibilities call for not
38
only the external communication, but also ameliorating the internal operation mode of the company to meet the requirements of stakeholders and balance the relationship between its development and social responsibilities.
II. The Strategic Development Direction of the Zijin Mining Group’s Social Responsibilities
The social responsibilities are the foundation of long and prosperous development for the
Zijin Mining Group. The company would attach strategic importance to the development patterns, strive for the organic integration between the performance of social responsibilities and rapid development, and ensure its sustainable development in the end.
Firstly, the safety of ecological environment is always the corporation's bottom line, which is superior to anything else. The mutual development with communities is another stretching aspect of enterprise value, after which the Zijin Mining Group will strive all the way. Insisting on the people-oriented concept, the company always treats its employees as the most precious treasure. In view of the three important concepts above, the Zijin Mining Group would keep on promoting the status of social responsibilities and use it as the guidance for carrying out its strategies of social responsibilities.
Secondly，the manage and indemnification system should be improved to assist the implementation of social responsibilities. From now on，the Zijin Mining Group would widely take account of the management on the relationship among the company and the investors, the business partners, the employees as well as the communities and social environment, etc. Further more, the company should also perfect the complete management system including executive management, budget management, risk management and performance evaluation management, in order to implement the social responsibilities better.
Thirdly, the excellent culture of responsibility would support the enterprises’ strategy of social responsibilities to a great extent. The company is supposed to intensify this impact to make the social responsibility matters turn into its endogenous mechanism, which should be comprehended by all staff. Thus, the cultural atmosphere would be established, in which all staff can consciously implement the social responsibilities better. Moreover, the construction of enterprise culture and the strategy of social responsibilities would mutually promote in the development of the company.
39
Stakeholders are referred to ―groups or individuals who are able to affect the achievement of the enterprise’s aim or be affected by this achievement‖. Without valuing the stakeholders, the aim of enterprise means nothing. At the time of creating more economic benefits, the Zijin Mining
Group intends to achieve the safer and more environment-friendly development, pay more attention on benefiting all interested parties, take more care of the employees’ rights and promote their happiness as well as a sense of belonging. In addition, the company intends to intensify the communication and cooperation with local governments and the communities nearby, keep on providing support to the communities for their development and finally build a harmonious public relationship together.
Zijin Mining Group Co., Ltd.
March 31st, 2011
40