At the end of January,2021,Zijin Mining released its announcement of performance prediction of 2020.It is estimated that,in 2020,net profit attributable to shareholders of listed company is RMB 6.45-6.65 billion,presenting a YOY increase of RMB 2.166-2.366 billion,with YOY increase of 50.56%-55.23%,which is the best performance it had ever made since its establishment.In 2020,Zijin Mining worked both ways.On one hand,it continued to consolidate its ownership of strategic mineral resources.On the other hand,it has set up internal governance and talent motivation mechanism so as to lay a solid foundation for its development into a high-tech beneficial-type super-large international mining group.

1.External:Continuously Consolidating Its Ownership of Strategic Mineral Resources

(1)Acquiring continental gold and completing settlement

In March,2020,Zijin Mining announced the equity settlement of its acquiring 100% equities of Continental Gold at the price of RMB 7 billion that was announced in December,2019.As of this point,beneficial gold resource reserves of Zijin Mining achieved 2130 tons,growing by 12.88%.Brutica gold mine,affiliated to Continental Gold,is a world-class large gold mine owning gold of 353 tons with average grade of 9.3g/ton; it owns silver of 1469 tons with average grade of 38.8g/ton.This mine provides favorable exploiting conditions and favorable ore prospecting conditions in its deeper ore body and its periphery,which means it has big potential in reserves.Underground mining adopted,the project aims to handle daily ore throughput of 3000 tons.After reaching design capacity,its average annual gold production is likely to achieve 7.8 tons,with 4-5 tons of production in 2020.

Columbia has long enjoyed a reputation of “Nation of Gold”.The acquisition of Zijin Mining helps to boost the performance of its gold sector,which is of significant importance to the company under the background of robust trend of gold market.Beside Brutica gold mine,Zijin Mining also obtained 13 ore exploring rights and 10 ore prospecting rights of Continental Gold in Andes metallogenic belt.What’s more important,Columbia is abundant in mineral resource of gold,silver and platinum,also a country famous for its gold production.This acquisition of Brutica marks that Zijin Mining has a big chance to enter South America through Columbia,which brings about more opportunities and rights of speech to work with international mining companies and deepen its exploiting activities in Columbia’s mines.

(2)Completing acquiring 50.1% equity of Julong Copper

In July,2020,Zijin Mining made announcement that its wholly-owned subsidiary,Tibet Zijin Industrial Limited Company completed acquiring 50.1%equity of Julong Copper.This marks its shareholding by project and becoming the leader in exploring the biggest porphyry type copper mine proven in the country.After this acquisition,Zijin Mining’s beneficial copper resource volume exceeds over 62 million tons.Julong Copper owns mining rights of three polymetallic ore,i.e.Qulong copper polymetallic ore,Rongmu Cuola copper mine and Zhibula copper polymetallic ore.Overall volume of copper reaches 10.40 million tons and prospective copper resource volume is likely to exceed 20 million tons.Two phases of massive open-pit mining are planned for the exploiting.Phase 1:it is going into operation by the end of 2021,after which annual copper production will be 165000 tons and annual molybdenum production will be 6200 tons; Phase 2:the construction will kick off 7-8 years after the commissioning of Phase 1,constructed with 300000 tons handled each day.After the completion,annual copper production will be 263000 tons and annual molybdenum production will be 13000 tons.

(3)Acquiring 100% equity of gold fields of Guyana Limited

In August,2020,Zijin Mining acquired 100% equity of Gold Fields of Guyana Limited,its second gold mine acquisition that year after its acquiring Brutica gold mine,marking that its gold resource reserves exceeds 23 million tons,making it the company owning the most gold resource reserves among all listed companies in China.Aurora gold mine of Gold Fields of Guyana Limited enjoys proven + controlled gold resource reserves of 118.69 tons,with average grade of 3.15g/ton; its inferred gold resource reserves is 59.13 tons,with average grade of 2.28g/ton.Its dressing plant is equipped with the handling capacity of 7500 tons/day and average annual gold production of 4 tons.

2.Internal:Making Efforts in Establishment of Internal Governance and Talent Motivation Mechanism

In 2020,Zijin Mining focused on establishing a management system that matches globalized operation,and appropriately loosened power limits in human resources,investment,construction and procurement.This further boosts vitality among affiliated subsidiaries,departments and the whole staff.

(1)To fully improve the ability for ESG

In September,Zijin Mining made simultaneous announcements in Shanghai Stock Exchange and Hong Kong Exchanges indicating its establishment of a top-down ESG management structure led by board of directors and disclosing a collection of statements concerning environment,society and governance.This demonstrates the confidence and determination of the company to accept supervision from the public and to fully improve its ability to make quality sustainable development.

“ ESG ” is a kind of sustainable investment concept that gives sufficient consideration to environment,society and corporate governance during investment decisions.As Zijin Mining is getting more and more global,it also attracts more attention from investors to issues concerning environment,society and governance.In particular,Zijin Mining is one of the first batch of Ashare listed companies selected by MSCI,it is given new topics during its global development including carrying forward environment protection,occupational health and safety,protection of human rights,Anticorruption and Anti-Bribery,responsible industry chain,community investment.

For this purpose,Zijin Mining decided to gear to international standards by comprehensively improving the construction of ESG management system in the process of deepening reform.The board of directors entitled strategy committee to the leadership and supervision right on ESG management,established ESG management committee for the responsibility to study,formulate and carry out ESG working goals and strategies,examine major trend of ESG and evaluate related risks and opportunities.In the meantime,the board established ESG working group that consists of responsible persons from functional departments concerning CSR,so as to jointly carry out activities regarding related policies and goals.

Zijin Mining made 8 announcements simultaneously,i.e.Statement on Corporate Policy on Ecological Environmental Protection,Statement on Corporate Policy on Human Resources Management,Statement on Corporate Policy on Safety and Health Management,Statement on Corporate Policy on Business Ethics Management,Statement on Corporate Policy on Vendor Management,Statement on Corporate Policy on Report Management,Statement on Corporate Policy on Water Resource Management and Statement on Corporate Policy on Security and Human Rights Protection.This indicates the company ’ s fundamental policies for sustainable development and demonstrates the company’s comprehensive deployment in global concerns like climate change,water resource protection,biodiversity,community and human rights protection,staff health and safety,anti-corruption and supply chain management.These policies are actually a declaration for sustainable development.

The core of ESG lies in implementation.Zijin Mining combines its reform deepening which is in progress by incorporating ESG-related requirements into the improvement of corporate system.Zijin Mining tries to ensure the translation of comprehensive ESG management in all aspects of corporate business by means of goal management.The updated version of Working Rules for Strategy Committee of The Board of Directors of Zijin Mining has incorporate ESG into evaluation on corporate management staff and ESG has relation to annual performance and salary.

(2)Implementing restricted stock motivation initiative for core backbone staff and special awards initiative for staff

Zijin Mining made announcement in November that it was going to entitle its backbone staff to no more than 100 million shares of A-share restricted stock at the price of 60% average transaction price of the company stock the trading day before announcement day.Backbone staff includes its executive directors,senior management staff,middle management staff,senior technicians,outstanding young talents and talents with high degrees.The first batch of motivated objects are no more than 700 people,approximately 95.10 million shares,and 4.9 million shares will be reserved to take effect within one year.The stock motivation initiative has set a big performance goal for the coming years,proposing that the lockup period is two years and the company will unlock it in three years.Unlocking condition is:compared to 2019,in 2021,2022 and 2023,CAGR of net profit attributable to parent company is no less than 25%,CAGR of net assets income rate is not less than 10%,and assetliability ratio is no higher than 65%.Net profit and net asset growth indicator are no less than 75-point value of peer companies and benchmark companies.This mechanism firmly binds corporate development with staff benefit and greatly boosts driving force for corporate goals.

The above measures demonstrate that Zijin Mining has made much achievements in 2020 in both internal and external performance,gaining more comprehensive and more completed development.This also laid a solid foundation for its future development.

3.Fruitful Achievements in 2020

In 2020,Zijin Mining made significant achievements in all indicators,many of which hit a new high since establishment.Fruitful achievements demonstrate Zijin’s tenacity and antirisk capability under complicated and changeable environment of epidemic outbreak and external market.In addition,Zijin Mining has gained much recognition from capital market for its value,and its global competitiveness and influence have been greatly boosted.In 2020,Zijin Mining made full efforts in promoting asset securitization and succeeded in issuing convertible bond in A-share market worth RMB 6 billion.Its stock price in A-share market and Hshare market both doubled compared to that at the beginning of the year.Its market value at the end of the year broke RMB 220 billion,ranking the 12nd among global major gold and nonferrous companies.

4.The Next Five-Year Plan and 2030 Development Goal Outline Indicating Its Big Aspiration

What deserves praises is that Zijin Mining does not stop although it has made much progress.Instead,it continues to accomplish challenges and aim higher.Recently,Zijin Mining released its next Five-Year Plan and 2030 Development Goal Outline which specify that,as of 2030,Zijin Mining’s major economic indicators approach or basically achieve the level of leading global mining companies,principal comprehensive indicators ascend to the 3rd,the 4th or the 5th globally,and Zijin Mining comprehensively grows into a super-large high-tech beneficial mining group in the world.Zijin Mining plans three phases for its Ten-Year Plan:The first phase is 2021-2022,to achieve a leapfrog growth in the yield of major mineral products and major economic indicators,and to significantly improve economic strength and corporate scale.The second phase is 2023-2025,to continue to comprehensively develop existing mineral resources,and pay attention to M&A opportunities with medium and large gold and copper manufacturing-type mining companies to significantly improve reserves and yield of principal mineral products.Major economic indicators and benefit step into new phase and achieve the level of globally leading metal and mining companies.The third phase is 2026-2030.As of 2030,the company comprehensively grows into a superlarge high-tech beneficial mining group in the world.Zijin Mining’s major economic indicators approach or basically achieve the level of leading global mining companies.Principal comprehensive indicators ascend to the 3rd,the 4th or the 5th globally,such as resource reserves controlling,yield of principal products,sales income,assets scale and profit.Imbued with ambitious goals inside,Zijin Mining firmly holds the “keys” to make these goals come true.What’s more important,Zijin Mining also makes steady efforts in the process of achieving.What a respectable company.