Value & Resilience-ZANGGE MINING COMPANY LIMITED

Product Quality

Zangge Mining consistently adheres to the quality policy of “customer focus and quality assurance; full participation and continuous improvement; creating value and contributing to society”. By establishing a comprehensive quality management system and strengthening quality risk control measures, the company continuously improves the management of product quality and safety across all processes, aiming to achieve industry-leading standards. At the same time, Zangge Mining resolutely safeguards customer rights and interests and builds a robust customer service management system, striving to continuously enhance service quality.

Customer Management

The company operates with a customer-centric approach, establishing a comprehensive customer service management system and workflow in accordance with the Customer Management System and Customer Satisfaction Measurement Procedures.

Quality Management

Zangge Mining has developed multiple quality management procedures, including the Quality Safety Management System, Quality Management System, Corrective Actions Control Procedures, Quality Objective Responsibility Letters, Incoming Material Inspection Procedures, and Finished Product Inspection Procedures. These systems enable comprehensive quality management across four major stages: salt fields, procurement, production, and sales.

The company has established a full quality management system. All production bases have obtained ISO 9001 Quality Management System certification, and the management processes are continuously optimized through ongoing internal audits and improvement initiatives. In 2024, internal audits of the quality management system were completed, ensuring the system’s compliance and effectiveness. To further enhance quality management, new testing equipment was introduced, QC team training and supplier quality audits were conducted, strengthening quality control capabilities and optimizing the end-to-end quality management system.

Technological Innovation

Key R&D Achievements in 2024

Zangge Mining embraces an open and collaborative innovation philosophy, sharing advanced technologies, participating in the development and revision of industry standards, and strengthening industry-academia-research collaborations. The company maintains close exchanges with upstream and downstream partners, industry associations, and academic institutions to promote high-quality industry development.
In 2024, Zangge Lithium participated in the formulation of the national standard “Brine Lithium Carbonate (GB/T 23853-2022)”, contributing to the improvement of technical and product quality standards in the salt-lake lithium extraction industry.

Innovation Management

Zangge Mining emphasizes independent innovation and continuously improves R&D management and processes. Innovation is integrated throughout product development, process optimization, and digital management, driving iterative upgrades of key products such as potassium chloride and battery-grade lithium carbonate.

The company has established a structured R&D management system: President → Chief Engineer → Dedicated R&D Department, with the president steering strategy and technical experts conducting in-depth research. Regular R&D progress reporting ensures that management stays informed of technological developments, allowing strategic alignment and timely decision-making.

Supply Chain Management

Zangge Mining is committed to responsible procurement, fostering a collaborative, transparent, and fair partnership environment. The company continuously optimizes supplier management to provide a high-quality supply chain that supports business growth. Through its influence in the value chain, Zangge Mining communicates sustainability requirements to partners, promoting positive environmental and social performance.

Supplier Management Process Supplier Due Diligence Process

Admission

Dedicated personnel conduct comprehensive assessments using the Supplier Evaluation Form, considering environmental compliance, product quality, and human rights risks. Suppliers are required to provide environmental credentials or undergo on-site inspections.

Classification

Suppliers are categorized based on product type and certifications such as ISO 9001.

Monitoring and Evaluation

A qualified supplier list is maintained, incorporating environmental performance as a bonus in evaluations. Annual quality surveys ensure suppliers meet standards. Supplier information is updated in the SAP digital management platform.

Exit

Suppliers failing to meet quality, environmental, or social requirements receive improvement suggestions. Persistent non-compliance or legal violations may result in termination of cooperation.

System Integration

Due diligence is embedded in ESG policies and management systems to ensure supplier compliance with sustainability requirements.

Risk Identification and Assessment

Regularly identify and assess environmental and social risks in supplier operations, including human rights, labor conditions, environmental protection, and anti-corruption. Suppliers must integrate risk management and maintain transparency.

Prevention and Mitigation

Suppliers implement measures to prevent or reduce identified negative impacts, supported by the company through training, technical assistance, and contractual guarantees.

Tracking and Monitoring

Establish regular review and monitoring to ensure suppliers implement ESG standards effectively. Suppliers report ESG improvements and initiatives

Remediation

The company may require corrective actions and provide support. Severe violations may result in termination of the partnership.

Responsible Procurement

Sustainability principles are integrated into the full supplier management lifecycle. Zangge Mining publishes its Responsible Procurement Policy, incorporating ESG factors such as business ethics, labor rights, and environmental friendliness. Supplier information is continuously updated, and non-compliant suppliers are terminated. The Board oversees policy implementation. The company also emphasizes ESG capability building for suppliers, providing guidance on environmental management, labor rights, and corporate governance through the Supplier ESG Handbook, referencing global ESG trends and best practices while aligning with the company’s ESG strategy.

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