Mining and trading of mineral resources generate revenues, bringing socio-economic development and community prosperity, and promote the mutually beneficial relationships between communities, companies or partners in the supply chain, and individuals. We focus on responsible management of the supply chain and require suppliers to conduct business in a responsible manner, which is a prerequisite for doing business with us.
Our practice includes both global and local procurement, taking the needs of the community into full considerations, and we prioritize procurement of materials with regional advantages in the areas where our business is located. We support the development of local enterprises through local procurement, to increase local government tax and contribute to the economic development of the community. We are committed to considering the social and economic context of the areas where our business is located, with particular attention paid to disadvantaged groups who are excluded from employment or local business opportunities for systemic reasons.
We stick to the Material Procurement Management Policy, Smelting Raw Material Procurement Policy, Product Sales Management Policy, Supplier Management Operation Guidelines, and other supplier management policies, to promote suppliers to conduct business with the responsibility that is consistent with business ethics and ensure that our suppliers’ ethics, safety, health, and human rights principles as well as social and environmental performance are consistent with ours.
We advocate the establishment of long-term, stable and honest cooperative relations with suppliers and set up a normalized communication mechanism with them. We strive to motivate our suppliers to fulfill their social responsibilities and have a green procurement policy in place, prohibiting the purchase of equipment and facilities with high energy consumption and serious pollutions so as to promote the construction of responsible supply chains.
We conduct systematic access evaluation and audit of suppliers and contractors, assessing their basic qualifications, production and technology, product quality, delivery and services, as well as their ESG performance, including business ethics and anti-corruption efforts, occupational health and safety, environmental and ecological protection, labor management, community participation and human rights protection, etc.. With the establishment of Black and White List Rules, we could maintain suppliers and contractors.
Based on the Supplier Management Operational Guidelines, we integrated the ESG indicators into the supplier qualification and review evaluation and scoring criteria. No suppliers are qualified to be included in our supplier list unless they pass the on-site inspection and unified review.
|Environmental Assessment Elements||Social Assessment Elements||Governance Assessment Elements|
|● Environmental Management System and Policies
● Energy Consumption and Carbon Emissions
● Environmental Pollution Violations and Fines
● Production Environment
● Environmental Protection Measures
|● Engagement in Public Affairs
● Labor Rights Policies
● Negative Public Opinions from the Society
● Production Safety
|● Compliance and Anti-Corruption Policies
● Information Disclosure and Transparency
● Business Ethics Controversies and Violations
We have included the requirements for compliance with our Corporate Code of Conduct in our suppliers’ standard procurement agreements in an effort to make sure that their ethics, safety, health, and human rights principles, as well as social and environmental performance are consistent with ours.
We regularly review the authenticity and legitimacy of our suppliers’ qualifications, as well as their commercial reputation. In principle, we organize a centralized review of channel suppliers quarterly and a comprehensive assessment annually. We evaluate the supply chain risk after investigation and verification of some information to conduct daily management, and the information is gathered through irregular state authoritative industrial and commercial information system, internal and external feedback, or complaints and reports received by the company's compliant channels. We also conduct necessary risk-based audits on suppliers and contractors by internal audit or engaging external audit.
We review and evaluate the business responsibility practices of our tier-1 suppliers at least once a year, assessing their risks in terms of environment, safety, and social responsibility and taking corresponding measures. Suppliers found in serious violation of the contract or law will be blacklisted for 1-3 years. Suppliers with major quality problems or significant safety and environmental protection risks or bribery, or blacklisted for poor production and operation safety records by governments at all levels will be directly removed from our supplier list with their cooperation terminated.
We want to establish long-term, stable cooperative relations with our suppliers based on sincerity, and we have established a normalized communication mechanism with suppliers to improve the sense of suppliers to perform their duties. Besides, we provide suppliers and contractors with relevant policies and rules to obtain our responsible supply chains in forms of websites and contracts, and we keep necessary communication and appropriate meetings with them on their responsibility and performance.