Responsible Supply Chain
Responsible Supply Chain

Responsible Supply Chain

With the vision of “To Become a Globally Respected Producer of Green Metals”, Zijin Mining requires its suppliers to conduct their business in a responsible and ethical manner, ensuring that their relevant policies on ethics, safety, health, environmental protection, human rights, etc., are generally in line with Zijin’s standards, as well as share Zijin’s fundamental cultural beliefs. This is a prerequisite for building business partnership with us. As a globally major supplier of minerals and metals with a diverse product portfolio, we focus on responsible supply chain management to effectively avoid economic, environmental and social risks in the mineral supply chain.

Targets and Progress
By 2023, the local procurement rate in the host countries will reach 70%
  • 80.33%
    Local procurement rate in the host countries was 80.33%
  • 57.29%
    57.29% of current suppliers evaluated by ESG
  • 1523
    1523 new suppliers selected by ESG standards

Our Approach

Revolving around our core objectives, our responsible supply chain policy uses risk-oriented thinking to push forward suppliers of goods and services and suppliers of minerals and metals to implement ESG policies consistent with those of Zijin Mining and conduct good stewardship.


Our highest accountable decision-making body for oversight of implementation of the supplier ESG program is executive management, in which we have a vice president having expertise in and in charge of supply chain.

 

We implemented management policies such as the “Supplier Management Measures, "Supplier Code of Conduct”, “Policy Statement on Whistleblowing Management”, “Polic y Statement on Supplier Management" and “Policy Statement on Business Ethics Management” to require suppliers conduct their business responsibly and ethically and to ensure that ethical, safety, health and human rights guidelines related to suppliers are aligned with those of Zijin Mining and suppliers' social and environmental performances are qualified.


We conduct supply chain training for employees in marketing, logistics and trading business at both headquarters and subsidiaries’ levels annually on their roles in the supplier ESG program.

Supplier Code of Conduct

At Zijin Mining Group Co., Ltd. (“Zijin Mining”, the “Group”, or “we”), we are committed to conducting our business in a professional, honest, and ethical manner. We always follow the highest levels of legal, regulatory and ethical standards in order to avoid negative influences on our integrity and reputation.


Zijin Mining formulates our Supplier Code of Conduct (the “Code”) with reference to international standards and our Corporate Code of Conduct, with the aim of improving ESG performance of our suppliers, contractors, and business partners in line with Zijin Mining. We expect our partners to abide by the Code. Any violation of the Code may damage their business relationship with Zijin Mining, or even lead to the termination of cooperation.


Our suppliers and partners should conduct business under the following codes:


Comply with the laws, rules and regulations

  Comply with all applicable laws and regulations in the place of operation, which is a prerequisite for the cooperation with Zijin Mining.

Practice business ethics

Legally handle trade secrets, patent, trademark, copyright, engineering data, databases, customer information, salary information and any confidential financial data and reports, etc.


Committed to fair, transparent and honest cooperation and competition. Establish a sound management system of business ethics and supervision. Prevent the practice of unfair competition and corruption. Prohibit from obtaining competitive advantage by false information or other fraudulent means.


Prohibit from any forms of corruption, such as offering or accepting bribes. Prohibit from intervening stakeholders by entertaining them, offering kickbacks or gifts.


Establish grievance and whistle-blower protection mechanism to prevent any form of retaliation against the whistle-blower.

Protect the environment and practice green procurement

Enhance the awareness of environmental protection. Actively promote ISO14001 EMS certification.


Prevent pollutions from gas, water, and noise in operation and production.


Protect the ecological environment. Use production techniques, raw materials and energy with less negative impacts on the environment. Actively practice energy conservation, GHG emission reduction, resource reuse, etc.


Promote a circular economy policy based on efficient use of resources and environmental protection.


Reduce packaging materials and reuse packaging. Packaging using recycled materials, renewable materials or biodegradable materials; Use green design and safety warning in packaging.


Promote clean production by waste recycling and improving technique.

Protect the human rights of labours

Prohibit from using child labour and any form of forced labour. Respect and protect the basic rights of employees.


Prohibit from slavery and forced labour. Ensure working hours are under the limit prescribed by relevant laws and regulations.


Respect and treat employees equally. Oppose any behavior that can be perceived as bullying, intimidation, harassment, or discrimination in workplace. Prohibit discrimination in hiring or promotion on the basis of race, religion, age, nationality, gender, marital status, pregnancy, etc. Do not ask employees or applicants to take medical test of a discriminatory nature.


Respect the legal rights of free association and collective bargaining of employees.


Ensure the welfare of employees in terms of salary, vacation, and social security.

Provide safe and health workplace and services

Actively promote ISO 45001 OHS management system certification. Improve employees' safety and health awareness. Encourage employees to work in a safe and responsible way.


Establish a safe working environment. Prevent employees from occupational hazards, Standardize occupational health monitoring.


Conduct safety risk assessment for all construction and operation activities. Work in strict accordance with safety operation procedures.


Develop the ability to deal with emergencies such as natural disasters, production accidents and environmental pollution to minimize casualties, environmental and social impacts.

Respect and engage with the community

Respect the culture, traditions and beliefs of the community in which we operate.  Respect indigenous people’ rights of free, prior and informed consent.


Establish an appropriate communication and grievance mechanism in the community. Pay attention to their concerns and properly solve reasonable appeals.

When operating in conflict affected and high-risk areas (CAHRAs)

Prohibit from directly or indirectly assisting or facilitating the implementation of:


    Any form of torture, cruel, inhuman and degrading treatment;


    Any form of forced or compulsory labour with the threat of punishment;


    Any form of involuntary extraction of individuals for labour or services;


    Any form of child labour;


Other serious violations and abuses of human rights, such as sexual violence;


War crimes or other serious violations of international humanitarian law, such as crimes against humanity or genocide.


Prohibit from direct or indirect support to illegal organized armed groups and public or private security forces.


Prohibit from bribery, corruption and money laundering in all business activities and transactions.

Responsible Supply Chain Management

Zijin Mining committed to not procuring, processing or selling conflict minerals and passed the audit of London Bullion Market Association (LBMA). During the reporting period, we built a responsible supply chain system with broader coverage based on the OECD Five-Step Framework and the requirements of the London Metal Exchange (LME) responsible sourcing policy and the "Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains", and actively require subsidiaries producing “Zijin” brand copper cathode and zinc bullion raw materials to carry out due diligence investigation.


With smelting plants at the centre, we on the one hand require upstream mines to carry out stewardship management and to fulfil their social responsibility, in particular the building of a comprehensive ESG system by all our own mines. On the other hand, we cooperate with downstream parties to carry out due diligence and provide due diligence and stewardship information, together building a responsible mineral supply chain.

Supplier Qualification

We advocate for es tablishing long-term and stable cooperative relationships with suppliers that are based on integrity, setting up a regular management-level communication mechanism with suppliers, raising suppliers’ awareness of fulfilling social responsibilities and pushing forward the building of responsible supply chains:

  • We have stringent regulations on supplier assessment and acceptance in accordance with the Company ’s “ Supplier Management Measures”, and grade suppliers on three aspects: environmental protection, social responsibility and corporate governance.Suppliers have to pass on-site visits and centralised reviews be finally be accepted as our suppliers.
  • To ensure that suppliers’ relevant ethical, safety, health and human rights guidelines are aligned with ours, and social and environmental performances are qualified, we have included in the standard purchase agreements signed by the suppliers a clause requiring compliance with our Supplier Code of Conduct.
  • We systematically share Zijin Mining ’s sus tainability philosophy, integrity policy, environmental protection philosophy, green procurement policy, etc., through our Yizhi procurement portal. To ensure effective learning and our suppliers follow us in complying with these policies and philosophies, each supplier logging onto our portal can proceed with registration, submit quotations, etc., only after they acknowledge their completion of the learning.

We will consider country-specific risks and sector-specific risks in our supplier screening process.


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.

Supplier Review and Assessment

Our purchasing practices towards suppliers are continuously reviewed to ensure alignment with the Supplier Code of Conduct and to avoid potential conflicts with ESG requirements. Suppliers will be excluded from contracting if they cannot achieve minimum ESG requirements within a set timeframe. Suppliers with better ESG performance are preferred, and we have applied a minimum weight of 6% ESG criteria in supplier selection and contract awarding.


We regularly review and assess the business responsibility practices of all of our suppliers, 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, significant safety and environmental protection risks, bribery, or being blacklisted for poor production and operation safety records by governments at all levels will be directly removed from our supplier list and permanently banned.

Communication with Suppliers

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.