SAFETY HEALTH
Safety Management System Safety Risk Prevention and Control Chemicals Management Occupational Health Protection

Zangge Mining has long prioritized production safety standardization and strives to establish a comprehensive and robust safety management system.By actively organizing safety awareness training and promotion activities, we have continuously raised the safety management capabilities of all employees and contractors and fostered a strong safety culture.

Safety System Development

Zangge Mining abides by relevant laws and regulations such as the Production Safety Law of the People's Republic of China, the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases, the Fire Control Law of the People's Republic of China as well as the Occupational Health and Safety Management System standards issued by the International Organization for Standardization (ISO). We have formulated and implemented production safety-related policies and documents including the Production Safety Management Regulations and the Environmental Protection and Safety Regulations, applicable to all domestic production bases, employees, and contractual employees. These policies cover key issues such as safety responsibility assessments, contractor management, hazardous chemical safety management, potential risk identification and rectification, risk assessments, occupational disease prevention, and emergency response, providing guiding principles for the management of each production base. In 2024, Zangge Mining achieved 100% ISO 45001 Occupational Health and Safety Management System certification coverage across its production bases (Zangge Potash Fertilizer and Zangge Lithium), with internal and external audits of the management system conducted annually to ensure certification validity.

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Management structure

The Company has established a three-tier safety management system.

1.The Safety Production Committee: As the leading organization, it organizes, guides and coordinates the production safety-related matters of various departments.

2.Safety Production Office:Set under the Safety Production Committee to coordinate daily production safety works of the Company. The Safety Supervisor & Engineer is responsible for planning and implementing specific safety tasks and making regular reports on safety management progress.

3.Safety Production Steering Groups: in charge of the daily production safety works of various production departments.

4.Full-time or Part-time Safety Specialists: Specialists are tasked with assisting workshop directors in carrying out production safety works at the workshop level.

Targets and Assessments

We formulate the Safety Objectives and Responsibility Letter and require all employees to sign it. Based on this Letter of Responsibility, we conduct quarterly performance assessments of department heads. 100% of employees at Zangge Mining's production bases have signed the Letter of Responsibility on Safety and Environmental Protection in 2024. Additionally, we improve the fire safety responsibility system by clarifying duties at all levels, securing 398 signed Fire Safety Responsibility Agreements, and formulating or refining 12 provisions in Fire Safety Management Procedures.

Contractor Management

We have formulated and implemented internal policies such as the Outsourced Construction Safety Management and the Business Outsourcing Management System to regulate processes including contractor pre-qualification and selection, pre-construction preparations, and onsite supervision. Additionally, we have established the Safety Production Management Agreement, in which specific safety responsibilities are defined for both parties. Contractors are required to sign this agreement before commencing construction or operations and undergo safety training and assessments. All contractor employees must provide health examination reports. For outsourcing contractors, we incorporate the Letter of Responsibility on Safety Objectives as a contract annex, striving to ensure a risk-controlled, safe, and healthy working environment for our contractors.

Safety Culture Cultivation

Zangge Mining has implemented the Safety Education and Training Management and other internal policies, covering safety training and safety work permits for all employees, including new hires, temporary workers, contractual employees, external interns, and other personnel. Each year, we develop annual safety education and training plans at both the company and workshop levels and conduct specialized training and themed activities including three-tier safety education, fire safety training, emergency first-aid knowledge training, Safety Production Month initiatives, and safety knowledge competitions. All these measures contribute to fostering the culture of occupational health and safety production. Special operation personnel and special equipment operators are required to hold relevant professional qualificationn certificates, while new employees must complete the three-tier safety training before starting work.

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Zangge Lithium Hosted the 2024 "Ankang Cup" Safety Knowledge Competition

In June 2024, to foster a culture of "Safety Management, Everyone's Responsibility," Zangge Lithium organized the "Ankang Cup" Safety Knowledge Competition, with six teams competing. This engaging, educational event promoted a wide range of safety knowledge and elevated employees' safety precaution awareness and accident response capabilities.

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Zangge Mining integrates safety risk management into all aspects of production and operation. Through diversified approaches such as implementing a dual risk prevention mechanism and establishing standardized safety emergency procedures, the Company strengthens compliance with work safety requirements and safeguards the physical health and life safety of all employees.

Risk Management System

To continuously mitigate safety and health risks, Zangge Mining has developed and implemented a series of policies, including the Hazard Identification and Risk Evaluation Management System and the Hidden Danger Inspection and Rectification Management System, established a two-tier risk prevention mechanism, and carried out hierarchical control of risks and inspection & rectification of hidden dangers. We implement safety production policies by minimizing incident risks, preventing major and critical accidents, and reducing minor and serious injuries, to ensure the safety and property of employees.

To manage risks, we annually update the Risk Identification and Assessment Form, determine control priorities, and implement corresponding response measures. For hidden danger investigation, we have formulated and published the Reward and Punishment System for Safety Hazard Inspection. A bonus will be awarded to the person who has identified hidden danger or submitted a valid, rational proposal. Additionally, we invite qualified third-party institutions to conduct major hazard assessments at least once every two years and demand our branches, subsidiaries and production workshops to maintain a major hazard record to effectively manage and prevent potential safety risks.

Safety Emergency Management

Zangge Mining complies with relevant laws and regulations, such as the Emergency Response Law of the People's Republic of China and the Regulation on Emergency Responses to Work Safety Accidents. The Company has also formulated and implemented internal policies including the Production Safety Emergency Response Plan and Emergency Rescue Management Regulations, which specify the emergency response procedures. These efforts aim to minimize losses or harm caused by accidents while continuously enhancing the standardization of emergency management.

Management Structure

Zangge Mining has set an emergency organization system at the levels of the Company and workshop and developed its emergency command structure, which is responsible for preparing emergency response plans, organizing emergency drills, conducting emergency team mobilization and resource allocation, and facilitating coordination at the accident scene to secure efficient emergency response.

System Construction

In accordance with laws and regulations such as the Work-Related Injury Insurance Regulations and the Regulations on the Reporting, Investigation and Disposition of Work Safety Accidents, Zangge Mining has formulated the internal Work Safety Accident Reporting and Investigation Management Measures. This policy defines accident classification levels and management processes, ensuring timely reporting, recording, investigation, and handling of potential production safety incidents to facilitate the adoption of effective preventive measures.

Besides, we have also developed an overall emergency response plan, special emergency response plan, and on-site response plan, which cover the responses to various production safety accidents, including fire, mechanical injury, electric shock, falls from height, crane injury, and collapses. Routine drills are conducted to validate these plans. A railway siding for product transportation has been constructed for Zangge Potash Fertilizer. Taking this into consideration, we have developed the Special Emergency Response Plan for Railway Accidents based on actual conditions to enable effective emergency management and rescue in case of accidents along the railway siding.

Emergency Response Practices

The Company annually formulates an emergency drill plan and regularly conducts diverse emergency drills, including comprehensive drills, specialized drills, on-site response drills, and fire emergency drills. These activities continuously enhance the emergency response and rescue capabilities of our teams and boost employees' emergency awareness, knowledge, and handling skills, while strengthening their self-rescue, mutual assistance, and emergency response abilities. Furthermore, we perform effectiveness evaluations of on-site response protocols twice a year, refining emergency plans and response measures based on drill outcomes to effectively safeguard employees' lives. In 2024, the Company organized a total of 9 emergency drills for comprehensive, specialized, and on-site response scenarios.

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Zangge Mining strictly complies with laws and regulations related to hazardous chemical management, including the Law of the People's Republic of China on the Safety of Hazardous Chemicals, the Regulations on the Safety Management of Hazardous Chemicals, and the Regulation on the Administration of Precursor Chemicals. We have formulated and implemented internal policies such as the Hazardous Chemicals Safety Management and the Precursor Chemicals Management System to clarify safety protocols for the procurement, storage, loading, unloading, use, transportation, and disposal of hazardous chemicals. The Quality Management Department conducts weekly specialized safety inspections on hazardous chemicals, with results shared with the Safety and Environmental Protection Department for coordinated management. Additionally, the Responsible Procurement Policy stipulates that suppliers follow laws and customer requirements that prohibit or restrict specific substances in manufacturing or product design, thereby reducing or avoiding the use of hazard substances.


Procurement:Strictly review the qualification certificates of the supplying units, and require them to provide the chemical safety technical instructions and safety labels of the purchased products.

Loading, unloading and transportation: Transport by a unit with relevant qualifications, and take fire prevention, explosion prevention, poisoning prevention, and other measures according to its nature.

Storage and preservation: There is a special warehouse for hazardous chemicals, which is managed by a warehouse keeper who has obtained a certificate after professional training, and is strictly classified and stored separately according to the regulations.

Collection and usage: Formulate safety instructions for the use of hazardous chemicals, train the operators, and require them to wear special protective equipment before working.

Scrapping: Formulate thorough safety guarantee measures, and carry out scrapping treatment after being approved by relevant departments such as the technology department, safety department, and production department (the destruction disposal of precursor chemicals should be approved by the public security authorities and the work safety supervision department).

 

By referencing regulations such as the Inventory of Hazardous Chemicals, List of Precursor Chemicals, and List of Explosive Precursor Chemicals, the Company identified and managed the risks of chemicals used in production. The Company has maintained internal documents like the Hazardous Chemicals List and Hazardous Chemicals Characteristics Table detailing physio-chemical properties, health hazards, emergency response, and protective measures. We also keep a hazardous chemical management ledger, to continuously conduct hazard assessments for substances and chemicals used in production and operations.

In 2024, the company continued to advance its chemical reduction and substitution plan. For hydrochloric acid used as a production auxiliary, a three-in-one flotation reagent was introduced in 2023 to widely phase out its use. In 2024, the YC-85 collector product free of hydrochloric acid components was introduced to achieve partial substitution. For powdered sodium hydroxide used as a production auxiliary, it was replaced with safer and more environmentally friendly liquid sodium hydroxide to avoid the risk of scalding to workers, achieving complete substitution.


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Zangge Mining strictly complies with the requirements of laws and regulations such as the Law of the People's Republic of China on the Prevention and Treatment of Occupational Diseases, and has formulated internal management policies including the Occupational Health Management Systems and the Occupational Hazard Monitoring Systems. Guided by the principle of "Prevention First, Integrated Prevention and Control, Classified Management, and Comprehensive Governance," we continuously optimize and upgrade production equipment and occupational disease prevention facilities while regularly conducting occupational hazard monitoring and assessments to ensure a healthy, safe, and stable work environment.

Occupational Health Management

We have established an Occupational Health Steering Group in charge of the supervision and administration of occupational health. On top of the Steering Group, full-time occupational health personnels have been assigned to assist in occupational health examination, hazard factor monitoring, production site inspection, occupational health education and training. 


Health Protection Measures

To effectively prevent, control, and eliminate occupational disease hazards, we actively implement health protection measures, including hazard factor identification, enhanced labor protection, and health examinations, to safeguard the health and related rights of all employees.

Hazard Factor Identification

According to relevant laws and regulations, qualified third-party institutions have been engaged by the Company to detect the occupational hazard factors existing in production and operation  sites on an annual basis. Moreover, the company-wide status quo assessment of occupational hazards has been conducted once every three years.

In 2024, Zangge Mining's production bases engaged third-party institutions to perform occupational hazard factor monitoring, covering dust, chemical hazards, noise, high temperature, and other chemical and physical factors, and notified and announced the results as well as the protection requirements to all employees in a timely manner. Meanwhile, routine status quo inspections of equipment and facilities were organized to fulfill main occupational hazard prevention responsibilities.

Labor Protection Enhancement

The Company has provided employees exposed to occupational hazards with effective personal protective equipment that complies with national standards, including safety helmets, insulating protective equipment, gas masks, dust masks (respirators), and ear protection devices, while overseeing their proper use to prevent occupational illnesses. Labor protection cards, which detail the labor protection equipment required for each type of work, have also been distributed to all production team employees.

Health Examination

Qualified medical facilities capable of making the diagnosis of occupational diseases have been engaged by the Company to provide employees in roles exposed to occupational hazards with occupational health examinations and regular health examinations on an annual basis. The occupational health surveillance archives have been established for employees. In addition, we have arranged employees' working hours based on their health condition and carried out position swaps on a regular basis to prevent employees from repetitive strain injuries.

During the reporting period, the Company had 0 incidents of occupational disease, 100% of employees are covered by occupational health examination and 100% of employees have the right to refuse dangerous work.


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