江西铜业铅锌金属有限公司

Jiangxi Copper Lead & Zinc Metal Co., Ltd

2023年度白银供应链尽职调查合规报告

Due Diligence Management Compliance Report of Silver Supply Chain in 2023

(2023/01/01-2023/12/31)

根据《伦敦金银市场协会负责任的白银指南》的要求，公司通过建立强大的管理体系，对供应商进行严格的尽职调查，避免系统性或广泛性的侵犯人权行为、避免产生冲突，采用供应链尽职调查方法对所有供应商进行风险识别和评估，制定了高风险供应链的管理策略，确保供应链风险在可接受范围内，确保本公司的白银供应链完全符合LBMA负责任白银指南的要求。

According to the requirements of the LBMA Responsible Silver Guidance issued by LBMA, the company has established a strong management system, conducted strict due diligence on suppliers, avoided systematic or widespread human rights violations, and avoided conflicts. The supply chain due diligence method has been used to identify and evaluate risks for all suppliers, and a high-risk supply chain management strategy has been developed to ensure that supply chain risks are within an acceptable range and that the company's silver supply chain fully complies with the requirements of the LBMA Responsible Silver Guidelines.

本报告总结了江西铜业铅锌金属有限公司2023财年内（2023年1月1日-2023年12月31日）对《伦敦金银市场协会负责任的白银指南》要求的遵守情况。

This report summarized how Jiangxi Copper Lead & Zinc Metal Co., Ltd has complied with the requirements of LBMA Responsible Silver Guidance for the fiscal year 2023 (January 1, 2023-December 31, 2023).

一、公司概况

I.Company Overview

江西铜业铅锌金属有限公司于2009年9月成立，为世界500强企业-江西铜业集团有限公司所属控股法人企业，位于江西省湖口县高新技术产业园，现有员工1100余人，生产铅锭、锌锭、金锭、银锭、硫酸等优质主产品，现已具备年产电解铅10万吨，电解锌12万吨，黄金1200公斤，白银350吨，硫酸25万吨的生产能力。

一期20万吨/年铅锌冶炼及资源综合利用项目首次引进基夫赛特直接炼铅技术，与常规湿法炼锌工艺形成国内独一无二的铅锌联合冶炼工艺,发挥出了资源利用率高、环境保护好、自动化程度高、能源消耗低等显著优势，2013年荣获中国有色金属工业科学技术一等奖。公司连续七年保持盈利，先后通过“五标一体”管理体系认证、“国家高新技术企业”认证、“国家认可实验室”认证，获评工信部工业领域电力需求侧管理示范企业、工信部铅锌行业首批合规企业，授予“全国‘安康杯’竞赛优秀组织单位”“‘十三五’江西省安全生产工作先进单位”“江西省品牌建设先进单位”“第八届九江市市长质量奖”，“江铜”牌铅锭、锌锭获评首届“江西精品”称号。2022年6月，公司取得“AEO高级认证企业”资格，入选2022年度江西省管理创新示范企业榜单，企业管理规范化、精细化、信息化之路越走越宽，位列2023年“江西百强企业”第49位。

Jiangxi Copper Lead and Zinc Metal Co., Ltd, established in September 2009, is a holding entity enterprise of Jiangxi Copper Corporation Limited, one of the world's top 500 enterprises. Located in High-tech Industrial Park, Hukou County, Jiangxi Province, it has more than 1100 employees, producing lead ingots, zinc ingots, gold ingots, silver ingots, sulfuric acid and other high-quality main products，an annual outputof electrolytic lead 100,000 tons, electrolytic zinc 120,000 tons,1200 kgs of gold, 350 tons of silver,300,000 tons of sulfuric acid.

With capacity of 200kt/a, we are the first one who developed advanced lead and zinc joint smelting process by combining world-class Kivcet Lead Smelting with conventional hydrometallurgy of zinc, having several significant advantages, like high resource utilization, environmental protection, high degree of automation, low energy consumption etc., the Company won the first prize of the 2013 China Non-ferrous Metal Industry Science and Technology Award.The Company makes profit for seven consecutive years, successively achieve the FIVE STANDARD MANAGEMENT SYSTEM CERTIFICATE, NATIONAL HIGH-TECH ENTERPRISE CERTIFICATION,NATIONAL ACCREDITATION LABORATORY CERTIFICATION.It’s a model enterprise of power demand management Ministry of Industry and Information Technology, the ministry of industrial power demand side management demonstration enterprise, the ministry of lead and zinc industry's first compliance enterprises. The Company awarded the Excellent Organization Unit of the National "Ankang Cup" Competition, the Exemplary Organization of Safety Production in Jiangxi Province during the 13th Five Year Plan, the Exemplary Organization of Brand Building in Jiangxi Province, and the Eighth Mayor of Jiujiang City Quality Award, JCC brand lead ingot, zinc ingot named the first" Jiangxi Boutique " title.The Company has obtained the qualification of "AEO Advanced Certification Enterprise"in June 2022 and was elected into the list of management innovation demonstration enterprises in Jiangxi Province in 2022, the road to standardization, refinement and informatization of enterprise management is getting wider and wider. It ranked 49th among the "Top 100 Jiangxi Enterprises" in 2023.

二、合规性概述

II. Compliance Overview

公司对所有供应商进行严格的尽职调查，确保原料来源合法合规。

The Company conducts strict due diligence on all suppliers to ensure that the source of raw materials is legal and compliant.

第一步：建立强大的公司管理体系

Step 1: Establish strong company management systems

合规声明

Compliance Statement with Requirement:

我们完全遵循第一步：建立强大的管理体系，开展白银供应链尽职调查工作。

We have fully complied with Step 1: Establish strong management systems and conduct due diligence in the silver supply chain

1、公司政策

1、Company Policy

合规陈述：

Presentation of compliance:

根据《LBMA 负责任的白银指南》和经合组织《来自受冲突影响和高风险地区的矿石负责任供应链尽职调查指南》附件 II 中规定，公司于2021年1月4日发布了《江西铜业铅锌金属有限公司LBMA负责任白银供应链尽职调查管理体系》，并视情况进行更新。体系中规定了白银供应链尽职调查政策、内部的组织构架及责任、尽职调查流程、白银供应链的风险识别方法、评判标准以及管理策略，此外还规定了白银供应链尽职调查培训培训、供应链追溯系统、记录的保存期限、交易监控等事宜。根据体系要求，制定了《风险评估方法和评价表》、《缓解策略》等文件。

In accordance with the requirements of the LBMA Responsible Silver Guidelines and Annex II of Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas of OECD，the Company issued the Jiangxi Copper Lead and Zinc Metal Co., Ltd LBMA Responsible Silver Supply Chains Due Diligence Management Systems on January 4, 2021 and update according to the situation. Besides, these systems stipulate silver supply chain due diligence policies, organizational structure and responsibilities within the Company, due diligence process, and risk identification methods, evaluation criteria and management strategies of silver supply chains. Moreover, these systems also stipulate due diligence training of silver supply chains, traceability systems of supply chains, preservation period of records, transaction monitoring, etc. Documents such as Risk Assessment Method and Evaluation Form and Mitigation Strategy are formulated based on the requirements of these systems.

2023年度，公司严格按照体系要求完成所有白银供应商尽职调查，并进行风险识别和评估，有效的管控了白银供应链的风险。

The Company completed the due diligence for all silver suppliers and conducted risk identification and evaluation according to the requirements of these systems in 2023, effectively managing and controlling the risk of silver supply chains.

公司的白银供应链尽职调查政策严格禁止白银供应商有如下行为：

The following behaviors of silver suppliers are strictly prohibited by the due diligence policies for silver supply chains of the Company:

a. 人权侵犯行为，包括使用童工、酷刑、非人道以及侮辱人格对待方式、广泛的使用暴力或其他严重反人权强迫劳动、战争罪、反人类罪或种族灭绝罪；

a. Human rights violations, including employing child labors, using excruciation, inhuman and degrading treatment, wide use of violence or other forced labor against human rights, war crimes, crimes against humanity or genocide;

b. 向非法武装组织或向通过供应链非法控制矿区、交易商、其他中介机构、运输线路的公共或私人安全部队提供直接或间接支持，或在整个供应链内非法征税或敲诈钱财或矿产品（“非法武装组织、公共或私人安全部队”）；

b. Providing direct or indirect support for illegal armed organizations or mining areas, dealers, other intermediary organizations, public or private security forces for transportation routes illegally controlled through supply chains, or  illegally taxing or extorting money or minerals in the whole supply chains (“illegal armed organizations, public or private security forces);

c. 通过贿赂或欺诈掩盖白银原产地；

c. Concealing the origin of silver through bribery or fraud;

d. 为遵照政府有关来自受冲突及高风险区域的矿产品的提取、贸易及出口税费要求；

d. To comply with the government’s requirements on extraction, trade and export taxes of minerals from conflict-affected and high-risk areas;

e. 洗钱或恐怖主义融资；

e. Money laundering or terrorist financing;

f. 资助冲突；

f. Contribution to conflict；

g. 从事高风险经营业务，例如武器、赌博、古董和艺术品、教派和其领导人；

g. Engaging in high-risk business, such as weapons, gambling, antiques and artworks, religious sects and their leaders;

h. 受益人是政治敏感人物或通缉人员；

h. The beneficiaries are the politically sensitive person or wanted person;

同时，公司也将该政策发布在官方网站上，网址为www.jxccqx.com/                                        

Meanwhile, the Company also publishes the policies on its official website at www.jxccqx.com/    

2、管理架构

2、Internal management structure

合规陈述：

Presentation of compliance:

根据体系要求，公司已建立供应链尽职调查管理制度，明确了组织架构及管理职责，包括一名合规总监、一名合规经理以及若干名合规组成员组成的管理团队，团队负责审批供应链尽职调查政策和制度、合规报告，开展供应链尽职调查流程和系统的运行和监控。

The Company established a supply chain due diligence management system, clarifying the organizational structure and management responsibilities based on the requirements of the systems, including one Compliance Director, one Compliance Manager and several members of the compliance team.The compliance team was responsible for approving supply chain due diligence policies and systems, compliance reports, and monitoring of supply chain due diligence processes and systems.

合规总监：公司授权的高级管理者副总经理刘湖滨，刘湖滨副总自我公司建厂以来一直为我公司重要董事，且负责公司经营管理工作，对经营管理有着丰富的理论知识和实操经验。对外根据我公司原料采购政策和公司的生产、财务以及销售情况等实际情况需要负责审批与供应商合作合同的签订（包括是否与高风险供应商合作的合同签订），并负责对供应商进行审查相关事宜。对内高级管理者根据LBMA负责任的白银指南文件，对相关员工进行培训，使相关负责人清楚的理解这一体系的目的和意义，明白自己在尽职调查政策实施中的职责，并半年组织培训重温相关内容。

Compliance Director: Liu Hubin, a senior manager and the Deputy General Manager authorized by the Company. He has been an important director of the Company since its establishment, and is in charge of the operation and management of the Company with his rich theoretical knowledge and practical experiences of operation and management. Externally, based on the Company’s raw material purchasing policies and actual requirements of production, financial and sales situations, he takes charge of reviewing and approving the signing of cooperation contracts with suppliers (including whether to sign contracts with high-risk suppliers), and reviewing suppliers. Internally, on the basis of the LBMA Responsible Silver Guidance, senior managers are responsible for training the related employees and ensuring related personnel in charge to clearly understand the purpose & meaning of the systems and know their responsibilities in the implementation of the due diligence policies. Besides, they should also organize the training to review the related contents every six months.

合规经理（周圣兵）：协助高级管理人员全面负责白银供应链尽职调查事务，对白银供应链上的所有事情负责，确保在高风险供应链或交易时采取了恰当的措施，提交风险评估报告。并有义务就责任供应链方面进行培训，起草和更新白银供应链政策，为高级管理者履责提供准确的信息。

Compliance Manager (Zhou Shengbing): He assists the senior managers in fully taking charge of the silver supply chains due diligence, and is also in charge of all matters related to the silver supply chains, so as to ensure that appropriate actions are taken for high-risk supply chains or during the transaction, and to submit the risk evaluation report. Besides, it is his duty to conduct training on responsible supply chains, draft & update policies of silver supply chains, and provide accurate information for senior managers to fulfill their responsibilities.

营销部：确保原材料精矿供应的长期性、稳定性、安全性，并拒绝与高风险地区的相关企业、组织或国家合作。

Marketing Department: It is necessary to ensure the long-term, stability and safety of the supply of raw material concentrates, and refuse to cooperate with related enterprises, organizations or countries in high-risk areas.

质量计量部负责对采购含银原料进行过磅称重、出入库记录；检化部负责对采购含银原料进行化验；稀贵分厂负责对产出银锭进行称重、打标记录，车间组织投料生产并做好投料记录和产出银锭记录，在生产过程中采用封闭式流程，确保白银生产加工的安全性与可追溯性。

Quality Measurement Department is in charge of weighing and making warehousing records of purchased silver-bearing materials; the Inspection and Chemical Department is responsible for testing the purchased silver-bearing materials; the rare and precious metal branch is in charge of weighing, marking and recording the produced silver ingots. Besides, the workshop should organize the production of material input and make feeding records and the records of the produced silver ingots. The closed process should be provided during the production, so as to ensure the safety and traceability of silver production and processing.

财务部负责完整保存所有客户的交易凭证。

The responsibility of the finance department is to keep all transaction documents intact.

质量计量部负责与营销部结合，保证含银原料接收的准确性；稀贵分厂负责对白银销售前的数量的统计，保证白银实物出厂的安全性。

Quality Measurement Department, in combination with the Marketing Department, is responsible for ensuring the accuracy of receiving silver-bearing materials; the rare and precious metal branch is in charge of calculating the quantity of silver before sales to ensure the safety of leaving the factory for the physical silver.

营销部需对交货人身份信息进行确认，并在交易过程中，采用监督机制确保交易的安全性，保证公司不参与恐怖主义融资。

Marketing Department should confirm the identity information of the delivery personnel, and ensure the security of the transaction with supervisory mechanism during the transaction. It is also needed to ensure that the Company does not participate in the terrorist financing.

2023年度，管理团队严格按照体系文件要求对所有白银供应商进行了尽职调查，合规经理对所有调查结果进行了监督和审核，确保所有含银物料供应商在合作前都满足LBMA要求并得到合规总监的批准，所有原料采购业务均签订合同、供应商承诺书，所有供应商均承诺含银物料来源符合白银指南要求。

The management team conducted due diligence for all silver suppliers in strict accordance with requirements of the system documents in 2023. Besides, the Compliance Manager implemented supervision and audit for all results of the due diligence, so as to ensure that all suppliers of silver-bearing materials meet the requirements of LBMA and are approved by the Compliance Director before cooperation.A contract and letter of commitment for suppliers were signed for all raw material procurement businesses. All suppliers promised that the source of silver-bearing materials complied with the requirements of silver guidance

3、供应链可追溯系统

3、Supply chain traceability system

合规陈述：

Presentation of compliance:

公司根据《LBMA负责任白银指南》，确定了供应链追溯体系，在业务过程中，收集和保存所有供应商提供的信息，包括供应商名称、产地、合同评审表、合同文本、结算方式、运输过程、重量和检验报告、生产日期、入库时间等。每批出库银块都有一个唯一的编号，并有一个出库台帐记录，包括日期、重量、质量等。

The Company has determined the traceability system of supply chains based on the requirements of the LBMA Responsible Silver Guide. It collects and saves all information provided by suppliers in the process of business, including supplier name, origin,the contract review form, contract text, method of settlement, transportation process, weight and inspection reports,warehousing time, etc.Each batch of outgoing silver bullion is assigned a unique number, and there is an outgoing account record, including the date, weight, quality,etc.

根据保留的所有记录，可以完成从成品追溯到原料、从原料追溯到成品，并能追溯每个供应商每批产品的采购合同，根据合同内容可以追溯包括贵金属类型、采购重量、分析报告以及相关尽职调查文件等信息。

Based on all saved records, it is able to trace from finished products to raw materials and from raw materials to finished products, and trace the procurement contracts about every batch of products of all suppliers. Furthermore, according to these contracts, it is able to trace a lot of information including types of precious metals, procurement weight, analysis reports and related due diligence documents, etc.

4、与供应商约定

4、Engagement with silver supplying counterparties

合规陈述：

Presentation of compliance:

根据管理体系的要求，在对供应商风险评估时，与供应商签订合同前，公司业务人员依据公司的合规要求，与所有白银供应商签署《LBMA合规承诺书》，以确保他们了解公司LBMA管理的要求和供应链政策。在承诺书中，白银供应商应以书面形式承诺并承认，提供的所有原料应符合 LBMA 白银责任指南，避免冲突区域和高风险区域开采、处理进出口金属产品、滥用人权、融资非政府武装实体、违法犯罪团伙、贿赂、欺诈、洗钱等。公司支持实施采掘业透明度行动计划的倡议。2023年度签约的所有供应商均签署了相关的承诺书。

According to the requirements of management systems, the Company’s business personnel should sign the Letter of Commitment for LBMA Compliance with all silver suppliers as required by the Company’s compliance requirements to ensure that they are aware of the Company’s commitment to LBMA management and the supply chain policies at the time of conducting risk evaluation on suppliers and before signing the contract with suppliers. Besides, in this letter of commitment, silver suppliers should commit to, and acknowledge in writing that all raw materials provided by the seller should conform to LBMA Silver Responsible Guidance to avoid mining and handling import and export of metal products in conflict areas and high-risk areas, abuse of human rights, financing of non-governmental armed entities, illegal and criminal gangs, bribery, fraud, money laundering, etc.. . The Company supports the implementation of the initiative of the excavation industry transparency action plan.All suppliers contracted in 2023 have signed the related letter of commitment.

5、交易付款和交易监控

5、Transaction Payment & Monitoring

合规陈述：

Presentation of compliance:

公司所有业务均通过官方银行渠道收款和付款，没有任何现金交易，每笔货款都经过严格审批后支付。国外进口精矿结算是通过信用证付款，国内是通过银行转账付款。

The receipt and payment of all business of the Company should be subject to the official bank channels, without any cash transaction，and each payment is made after strict approval. The settlement of concentrates imported from abroad is made through the letter of credit, and that of domestic concentrates is made through bank transfer.

根据管理体系要求，我们对每批白银产品都进行交易监督，保留相关付款凭证。合规专员负责交易监控工作，对不符或以任何形式疑似不符的交易背景进行检查，并书面确认调查结果，报告给合规总监。此外，我们与当地政府建立了反洗钱合作关系，任何洗钱行为我们都会第一时间通知政府，并配合政府进行洗钱调查。2023年度的交易全部采用银行转帐方式，未出现异常现象。

The Company supervises the transaction of every batch of silver and keeps related payment vouchers in accordance with requirements of the management systems. Besides, the Compliance Officer is responsible for monitoring the transaction and checking the background of transactions that do not meet the requirements or are suspected to not meet the requirements in any form. The findings should be confirmed in writing and reported to the Compliance Director. In addition, the Company has established an anti-money laundering partnership with the local government. It will immediately notify the government of any money laundering and cooperate with the government in money laundering investigation. Moreover, all transactions in 2023 were subject to the bank transfer without any anomaly.

6、培训

6、Training

合规陈述：

Presentation of compliance:

公司每年采取多种方式对相关岗位以及合规小组成员宣讲供应链尽职调查管理、LBMA 负责任的白银指南等知识，并定期组织所有关于白银相关部门进行培训，以确保公司相关岗位以及合规小组成员熟悉供应链尽职调查管理和 LBMA 负责任的白银指南，2023年度共计进行了两次集中培训，即关于供应商尽职调查能力建设会议与关于尽职调查的合规会议。培训后进行了效果评价，并且保留培训记录。

The Company promotes supply chain due diligence management and LBMA responsible silver guidelines to relevant positions and compliance team members through various means every year,and regularly organizes the training for all departments related to the silver, to ensure that relevant company positions and compliance team members are familiar with supply chain due diligence management and the LBMA responsible silver guidance, a total of two training sessions were held in 2023，including conference to help suppliers to build due diligence capability and conferene on due diligence compliance. Effect evaluation was conducted after the training and training records were saved.

7、记录保留

7、Records keeping

合规陈述：

Presentation of compliance:

根据公司<白银供应链尽职调查管理体系>要求，所有供应商相关文档，包括供应商营业执照、采矿证等资质验证资料复印件、尽职调查文件、风险评估表、合规文件、合同文本、检验记录以及出入库记录等均至少保存五年。

According to the requirements of the Company’s Silver Supply Chains Due Diligence Management Systems, all documents related to suppliers shall be kept for at least five years, including photocopies of qualification verification data such as the Suppliers Business License and Mining License,due diligence documents, risk evaluation forms, compliance documents, contract text, inspection records, warehousing records, etc.

8、沟通和机密申诉机制

8、Communication & Confidential grievance mechanisms

合规陈述：

Presentation of compliance:

公司建立了申诉机制，并且申诉机制在含银物料采购过程中均向供应商进行了必要的沟通，内外部利益相关方可以匿名举报有关白银交易过程中的违规行为。工厂设立了意见箱，作为内部员工的举报途径，并由相关人员定期开箱检查汇总举报内容。公司尽职调查政策、电话、电子邮箱均在公司网站发布，所有员工及供应商均可以通过网络了解这些信息，凡对政策有疑问或者发现违规行为的可以通过电话、电子邮箱等方式进行反馈。2023年度没有举报事件发生。

The Company has established a grievance mechanism, and necessary communication has been made with suppliers during the procurement of silver-bearing materials. Besides, the internal and external stakeholders can anonymously report violations during the silver transaction. As the report method for internal employees, the report box has been set by the factory and will be opened & checked regularly by the related personnel. The report contents will also be summarized regularly by the related personnel. The Company’s due diligence policy, telephone No. e-mail are all published on the websites of the Company, all employees and suppliers of the Company can access this information through the Internet.In case of any questions about the policy or occurrence of any violations, feedbacks can be conveyed via telephone, e-mail, etc.No report occurred in 2023.

第二步：识别和评估供应链风险

Step 2: Identify and assess risks in the supply chain

合规声明

Compliance Statement with Requirement:

我们完全遵循第二步：识别和评估供应链风险

We have fully complied with Step 2: Identify and assess risks in the supply chain.

公司严格遵守 LBMA 白银责任指南第二步“供应链风险的识别与评估”的要求，制定了高风险供应链的判定标准，并对识别出来的风险规定了处理程序，充分对供应链中的风险进行识别和评估。2023年未发现髙风险供应链。

The Company strictly adheres to the requirements of the second step of the LBMA Silver Responsibility Guidelines, "Identification and Evaluation of Supply Chain Risks," has developed criteria for determining high-risk supply chains, and has established procedures for handling identified risks, fully identifying and evaluating risks in the supply chain. No high-risk supply chain has been identified in 2023.

1、供应链风险识别

1、Identify risks in the supply chain

合规陈述：

Presentation of compliance:

公司白银全部来源于矿产白银,根据经合组织《受冲突影响和高风险地区矿产负责任供应链尽职调查指南》附件 II，识别从产地到精炼厂的供应链相关风险，公司在与供应商签合同之前为每个供应商建立供应商档案，填写 KYC 问卷，并对其进行风险评级，密切关注来自侵犯人权、武装冲突、非法开采等地区的白银，以及用于贿赂、洗钱、恐怖主义融资等行为的白银。 

All the company's silver comes from mineral sources, the Refiner shall identify relevant risks related to the supply chain from the origin to the refinery in accordance with Annex II in Guidelines for Due Diligence of Responsible Supply Chains for Minerals in Conflict-Affected and High-Risk Areas of Organization for Economic Co-operation and Development.The Company established a supplier file for each supplier for filling in a KYC questionnaire, completed the establishment of the supplier file before signing a contract with it, and performed a risk rating on it. The Company closely monitors silver originating inareas such as human rights violations, armed conflict, illegal mining, andfor use in bribery, money laundering, and terrorist financing.

管理体系中规定了供应商风险识别方法，涵盖了含银物料从原产地到精炼厂的所有风险，通过《供应商尽职调查表》进行风险识别，识别方法包括，建立供应链客户档案，包括：企业名称、法定代表人、地址、联系方式、营运方式、生产方式、交易合同等；对既有供应链客户需定期进行核查，如有新建或变更的客户，需及时对其进行档案资料检查，保持档案资料库处于最新状态；识别每一客户、企业和企业收益所有人，使用可靠的独立来源文件、数据或者信息来验证其身份；确定供应链中每一客户、企业和企业收益所有人不在任何政府的洗钱、诈骗或恐怖主义通缉名单上；定期获取供应链客户商业和财务方面的详细情况、从事白银交易目的及商业运作情况。

The management system specifies the methods for supplier risk identification, covering all risks of silver-bearing materials from the origin to the refinery. Risk identification shall be carried out in accordance with the Due Diligence Questionnaire on Suppliers, and identification methods include establishing customer archives in the supply chain, covering: company name, legal representative, address, contact information, way of operation, way of production and trade contract; regularly checking the existing customers in the supply chain and inspecting archival data timely in case of new customers or changed customers to keep the archival database up-to-date; identifying each customer, enterprise and enterprise income owner, and verifying their identities through reliable independent-source documents, data or information; ensuring that all customers, enterprises and enterprise income owners in the supply chain are not in any wanted list of the government in connection with money laundering, defrauding or terrorism; regularly obtaining detailed information on business and finance of customers in the supply chain as well as their purposes of silver trading and business operations.

2、供应链风险评估

2、 Risk assessment in the supply chain

合规陈述：

Presentation of compliance:

2.1、建立供应商档案

2.1、Establish supplier files

公司对于所有供应商均进行供应链的尽职管理调查，风险评判细则可参考中国政府认可的国际制裁名单、多德－弗兰克法案第 1502 条、欧盟 CAHRA 名单、海德堡晴雨表、脆弱国家指数或类似的指数、联合国人权事务高级专员办事处或同等机构、金融行动特别工作组（FATF）的报告、关于高风险黄金和白银中心/转运中心和高洗钱风险国家/地区的可靠市场情报，填写 KYC 问卷， 在进行合作前要求合作方提供符合供应链尽职调查管理制度要求的相关资质证明文件，对供应商基本情况、股东信息、提供原料类型及产地、贵金属类型、结算方式等信息进行调查，并尽可能地将供应链调查向供应商的上游延伸，对于涉及零容忍供应链、高风险供应链的供应商拒绝合作。

The Company conducted due diligence investigations of all suppliers. The risk evaluation rules can be referred to the international sanctions list recognized by the Chinese government, Dude -Frank -Frank. Article 1502 of the bill, the European Union's CAHRA list, Heidelberg barometer, the fragile national index or similar index, the report of the UN High Commissioner's Office or the same institution, and the financial action group (FATF) . Regarding the reliable market intelligence of high -risk gold And silver centers/transshipment centers and countries/regions of high money laundering risks, fill in the KYC questionnaire, and request partners to provide partners with relevant qualification certification documents that meet the requirements of the supply chain investigation and management system. Basic situation, shareholders' information, providing raw materials and origin and origin, precious metal type, settlement method and other information, and extend the supply chain survey as much as possible to the upstream of the supplier. For the supply of zero tolerance supply chain, high -risk supply chain, Business refuses to cooperate.

2.2、高风险供应链

2.2、High risk supply chain

以下任何一条客观存在时，则该供应链被判定为高风险供应链。合规小组成员应立即准备材料上报合规经理，由合规总监批准采取应对措施，停止交易，消除风险。

When any one of the below evaluation criteria exists objectively, the supply chain is judged as a high-risk supply chain. Members of the department compliance team shall immediately prepare materials and report them to the Compliance Manager, who shall report them to the Compliance Director approve to stop the transaction and eliminate risks.

(1) 原材料白银来自、过境或运输，途经冲突影响或侵犯人权风险较高的地区。

(1) The raw material silver comes from, transits or transports through areas with high risk of conflict impact or human rights violation.

(2) 原材料白银来自一个已知储量有限，资源有限或预期白银产量有限的国家。

(2) The raw material silver is claimed to have come from a country with limited known reserves, limited resources or limited expected silver output.

(3) 原材料白银来自已知具有冲突影响和侵犯人权行为的高风险地区，或者有理由怀疑它是通过该地区传播的。

(3) The raw material silver comes from a known high-risk area with conflict impact and human rights violation, or has reason to suspect that it is transmitted through this area.

(4)白银供应链中的公司或其他已知的上游公司位于洗钱、犯罪和腐败风险较高的国家。

(4) Companies in the silver supply chain or other known upstream companies are located in a country with high risk in money laundering, crime and corruption.

(5)白银供应链中公司或其他已知上游公司的实益拥有人是政治公众人物。

(5) The beneficial owner of a company in the silver supply chain or other known upstream company is a politically exposed person.

(6)白银供应链中的公司或其他已知的上游公司积极参与高风险的商业活动，如武器、赌博、赌博、古董和艺术品、钻石、宗教和宗教领袖。

(6) Companies in the silver supply chain or other known upstream companies are actively involved in high-risk business activities such as weapons, gambling, gambling, antiques and artworks, diamonds, religion and religious leaders.

(7)中国政府确定的其他高风险情况，以及欧盟CAHRA名单，多德 - 弗兰克法案和FATF名单等。

(7) Other high-risk circumstances identified by Chinese government and according to EU CAHRAs list, Dodd-Frank act and FATF list, etc.

2.3、风险评估结果分为两种，高风险和非高风险。

2.3、 Risk assessment results fall into two classes: high-risk and non-high-risk.

在与供应商业务关系建成之前，业务部门需要填写《白银供应链尽职调查表》，依据管理体系要求针对所有含银原料新客户和老客户进行评估，公司全部含银原料均为精矿：银精矿供应商需要提供营业执照、承诺书、尽职调查表、运输方式以及受益人相关调查内容。

Prior to the establishment of business relations with suppliers, the Business Department shall fill in the Due Diligence Questionnaire on Silver Supply Chain. All new and old customers of silver-bearing materials shall be evaluated in accordance with the requirements of the management system. The Company’s silver-bearing materials are all concentrates: For suppliers of silver concentrates, it is required to provide business license, letter of commitment, due diligence questionnaire, mode of transportation and beneficiary-related survey content.

对于高风险精矿供应商，我们将暂停交易，封存该供应商所有产品并立即进行强化尽职调查，实地考察或参观高风险供应链，证实供应链尽职调查结果的文件记录是否真实，调查结束后出具现场审计报告。

For suppliers of high-risk concentrates, we will suspend trading and mothball all products from such suppliers while carrying out intensive due diligence and field investigation or visiting the high-risk supply chain promptly to verify whether the document records of due diligence results for the supply chain are authentic. An on-site audit report will be issued after investigation.

最后，根据搜集的信息和供应链风险识别的结果，对每个供应商进行单独的风险评估，填写风险评估表，由负责评估的合规总监签字，并填写最终评估日期。

Finally, risk assessment shall be carried out separately for each supplier as per the information gathered and the results of risk identification in the supply chain to fill in the form of risk assessment. This form shall be signed by the Compliance Director in charge of assessment with the final assessment data filled in.

2023财年我们共计完成了45家精矿供应商的尽职调查；风险评估结果记录在相应的 LBMA 供应链风险评估表中，包括评估标准、意见和理由，根据风险评估结果，所有供应商均为非高风险供应商。

In 2023 (fiscal year), we completed due diligence on 45 concentrate suppliers in total; The risk assessment results have been completely recorded in the corresponding LBMA Supply Chain Risk Assessment Form, including assessment criteria, opinions and reasons.All suppliers were non-high-risk as per the results of risk assessment.

3、交易监测

3、Transaction monitoring

合规陈述：

Presentation of compliance:

精炼厂应对在建立关系的过程中所作的交易开展适当的审查和监测，以确保交易与精炼商对供应链和风险状况的了解一致。交易监测应采用基于风险的方法进行。

The refinery shall carry out appropriate review and monitoring for transactions conducted in the process of establishing relations to ensure that such transactions are consistent with the Refiner’s understanding of the supply chain and risk profile. Risk-based methods shall be adopted for transaction monitoring.

公司对所有交易情况进行监督，确保交易与供应链调查一致。完成了来自国内和国外的所有矿产银供应商的尽职调查，根据风险及强化尽职调查评估结果，供应商均为非高风险供应商。

The Company monitors all transactions to ensure that the transactions are consistent with the supply chain investigation.We have completed due diligence on all domestic and foreign silver suppliers, and according to the risk and enhanced due diligence assessments, all suppliers are non-high risk suppliers.

公司对供应链尽职调查进行检查，每批原料编号唯一，对于所有的原料釆购入库均保留完整的单据资料，对于入库的含银矿粉保存有过磅单、水份测定记录、品位检测报告、结算单、财务凭证等。明确各个部门应在日常工作中收集保存的资料，由营销部、质量计量部、检化部、财务部对相关单据进行保存，并定期将相关资料送至档案室进行存档。

The Company checks the due diligence of the supply chain, including unique number of each batch of raw materials, complete documents and data of all raw materials purchased and put into storage, and weighing lists,moisture measurement records, grade detection reports, final settlements and financial vouchers of the stored silver-containing concentrate. It is required to specify data needing to be collected and preserved by each department in its daily work and the Marketing Department, the Quality Measurement Department, the Inspection and Chemical Examination Department, the Finance Department shall keep relevant documents and send them to the archives room regularly for archival purposes.

4、风险评估结果的汇报

4、Report risk assessment to the designated manager

合规陈述：

Presentation of compliance:

合规经理每年代表高级管理团队向合规总监和最高管理层提供一份评论报告。高级管理层保留对白银供应链的最终控制权和责任。如果高风险供应商，必须得到最高管理层的批准，并立即停止合作。

The Compliance Manager shall submit a review report to the Compliance Director and the top management on behalf of the senior management team every year. The senior management shall reserve the ultimate control and liability of the silver supply chain. For high-risk suppliers, approval from the top management is required for ceasing cooperation promptly.

第三步：对已识别的风险实施管理策略

Step 3: Design and implement a management system to respond to identified risks

合规声明：

Compliance Statement with Requirement:

我们完全符合第三步：设计和实施一项管理策略应对已识别的风险

We have fully complied with Step 3: Design and implement a management system to respond to identified risks.

1、针对已识别的风险实施一项风险管理策略

1、A strategy for risk management of an identified risk

合规陈述：

Presentation of compliance:

公司建立了文件化的《风险缓解策略》，合规官负责缓解策略的落实工作，主要通过以下方式进行风险管理：

The Company has established the documented Risk Mitigation Strategy. The Compliance Officer shall be responsible for implementation of the mitigation strategy, and risk management shall be carried out mainly in the following ways:

高风险供应商：如果供应链尽职调查结果得出的结论是，存在洗钱、恐怖主义融资、严重的侵犯人权、直接或间接支持非法的政府武装组织或通过欺诈误导矿产品的原产地，我们将立即停止与该供应商交易，对已交易的贵金属数量进行核实并封存，并上报至最高管理层。如果供应链尽职调查结果得出的结论是，可能存在洗钱、恐怖主义融资、严重的侵犯人权、直接或间接支持非法的政府武装组织或通过欺诈误导矿产品的原产地，我们将立即暂停与该供应商交易，对已交易的贵金属数量进行核实并封存，对该供应商进行强化尽职调查，通过实地考察、委托有能力的第三方或有资质的人员对该供应商进行现场审核，出具审核报告，若现场审核的结果为高风险供应商，则停止交易并上报有关部门；若该供应商无重大风险且愿意配合整改，则监督该供应商在六个月内整改至满足LBMA准则的要求，可以继续进行交易。若在六个月内无法整改至满足要求，则停止交易。如果尽职调查的结果无法充分满足要求，不能为风险评估提供有效的证据，缺少相关资质证明，如营业执照、采矿许可证、进出口相关单据、贵金属原产地、运输方式等，则暂停与该供应商的交易，直至提供完整的资料并通过了风险评估。

High-risk suppliers: If it is concluded from the results of due diligence on the supply chain that there is money laundering, terrorist financing, serious violations of human rights, direct or indirect support for illegal governmental armed organizations, or fraudulent misrepresentation on the origin of minerals, we will promptly cease trading with such suppliers while checking the quantity of precious metals traded, mothballing and reporting them to the top management. If it is concluded from the results of due diligence on the supply chain that there may be money laundering, terrorist financing, serious violations of human rights, direct or indirect support for illegal governmental armed organizations, or fraudulent misrepresentation on the origin of minerals, we will promptly suspend trading with such suppliers while checking the quantity of precious metals traded and mothballing them, carrying out intensive due diligence on such suppliers, conducting on-site review on such suppliers through field investigation or by entrusting a competent third party or qualified personnel, and issuing a review report. If the results of on-site review show that it is a high-risk supplier, it is required to cease trading and report to the relevant departments;

非高风险供应商：不存在洗钱、恐怖主义融资、严重的侵犯人权、直接或间接支持非法的政府武装组织或通过欺诈误导矿产品的原产地等零容忍问题，并且提供了所有的相关尽职调查的资料，通过风险评估，结论为非高风险供应商，则继续进行交易，并定期对其进行风险监控。

Non-high-risk suppliers: If there are no zero-tolerance problems, such as money laundering, terrorist financing, serious violations of human rights, direct or indirect support for illegal governmental armed organizations, or fraudulent misrepresentation on the origin of minerals, and all materials related to due diligence are provided with the results of risk assessment showing that it is a non-high-risk supplier, it is required to continue trading and carry out risk monitoring on a regular basis.

2、量化措施，绩效监督，重新评估以及定期汇报

2、Measurable steps, monitoring of performance, periodic reassessment, regular reporting to designated senior management.

合规陈述：

Presentation of compliance:

量化手段和绩效评估：根据《LBMA风险缓解策略》，如果尽职调查的结果处于低风险，但仍存在轻微不符合时，只要该公司在规定的时间范围内采取了明确绩效目标的改进策略，我们将继续从其处获取白银原材料。如果白银供应链尽职调查提交的资料不完善，或者不愿意配合的，这说明存在洗钱、恐怖主义融资、助长冲突、侵犯人权的行为可能性很高，我们将立即停止从其处获取白银原材料，直到其他信息或数据能证实其低风险。

Measurable steps and performance evaluation: In accordance with the LBMA Risk Mitigation Strategy, if the results of due diligence show that it is at low risk but there are still minor non-conforming items, we will continue to refine silver materials coming from this source provided that it adopts an improvement strategy stating clear performance objectives within the specified time. In case of incomplete information provided for the due diligence on silver supply chain or suppliers unwilling to cooperate with due diligence, which indicates that there is a high possibility of money laundering, terrorist financing, furtherance of conflicts or violations of human rights, we will stop immediately to refine silver materials from this source, until there is additional information or data available for confirming that it is at low risk.

根据2023年的尽职调查结果，所有供应商均为低风险，无供应商需要进行风险缓解的管理策略。

As per the results of due diligence in 2023, all suppliers were low-risk, and no suppliers were required to adopt a management strategy for risk mitigation.

定期重新评估与持续监控：1、每年，原料采购部门的合规专员组织人员收集供应商信息的所有变更情况，持续监控交易结果并进行年度供应链尽职调查重新评估，以决定是否继续合作。2、采购的每一批次的白银原料在运输、出入库、生产、付款过程都有合规专员的监控，其中出入库必须有押运LBMA合规专员的签字，付款必须有财务的LBMA合规专员的批准。

Periodic reassessment and continuous monitoring: 1. The Compliance Officer in the Raw Material Purchase Department shall organize personnel to collect all changes to suppliers’ information, continuously monitor the results of transactions, and conduct the reassessment of annual due diligence on the supply chain to decide whether to continue cooperation every year. 2. Each batch of silver materials purchased shall be monitored by the Compliance Officer in the process of transportation, warehousing, production and payment. The warehousing must be signed by the LBMA Escort Compliance Officer, and the payment must be approved by the LBMA Financial Compliance Officer.

定期报告：每季度合规专员根据LBMA管理的实际情况，向合规总监和最高管理层提交汇报。报告本季度LBMA管理体系运行情况进行总结，提出不足及改进措施。

Regular reporting: The Compliance Officer shall quarterly submit reports to the Compliance Director and the top management in accordance with the actual situation of LBMA management. The operation of LBMA management system in this quarter shall be reported for summarization. Moreover, deficiencies and improvement measures shall be brought forward.

2023年，公司采取了量化的手段对供应商进行评分管理，对除新供应商外的所有供应商进行年度补充风险评估。合规总监已对评估结果进行审核。并且每季度向最高管理层提交了报告。

In 2023, the Company took measureable steps to score and manage suppliers, and carried out annual supplementary risk assessment for all suppliers other than new ones. The Compliance Director reviewed the results of assessment. Moreover, reports were submitted quarterly to the top management.

第四步：安排独立的第三方审计

Step 4: Arrange for an independent third-party audit of the supply chain due diligence

合规声明：

Compliance Statement with Requirement:

我们完全符合第四步：安排独立的第三方审计

We have fully complied with Step 4: Arrange for an independent third-party audit of the supply chain due diligence.

合规陈述：

Presentation of compliance:

公司严格遵守 LBMA 白银责任指南第四步“对精炼商的尽职调查实践开展独立的第三方审计”的要求，委托必维认证（北京）有限公司进行合理鉴证，审计报告将在年度审计完成后在公司官网（https://www.jxccqx.com/）进行公布。

The Company strictly abided by the requirements of“ arrange for an independent third-party audit of the

refiner due diligence” in Step 4 of LBMA Responsible and Silver Guidance. Bureau Veritas Certification (Beijing) Co., Ltd. is responsible for reasonable authentication，the audit report will be posted on the official website of the Company after the annual audit was completed（https://www.jxccqx.com/）.

第五步：供应链尽职调查报告

Step 5: Report on supply chain due diligence

合规声明：

Compliance Statement with Requirement:

我们完全符合第五步：供应链尽职调查报告

We have fully complied with Step 5: Report on supply chain due diligence

合规陈述：

Presentation of compliance:

公司根据 LBMA 负责任的白银指南制定了《江西铜业铅锌金属有限公司白银尽职调查合规报告（2023 年）》，并在公司网站（https://www.jxccqx.com/）予以公示。

The Company has prepared the "Jiangxi Copper Lead & Zinc Metal Co., Ltd Due Diligence Management Compliance Report of Silver Supply Chain in 2023" in accordance with LBMA Responsible Silver Guidance and has made it public on the Company's website（https://www.jxccqx.com/）.

三、结论

III.Conclusion

公司在截至2023年12月31日的报告年度报告中，通过供应链尽职管理体系，实施了尽职调查管理政策，识别和评估了供应链相关风险，实施风险管理策略，对供应链尽职调查工作进行了独立的第三方审计，及时编制了供应链尽职调查报告，因此，公司完全遵守了LBMA 负责任的白银指南。

The Company established and improved a supply chain due diligence management system, identified and evaluated supply chain related risks, designed and implemented risk management strategies, and conducted independent third-party audits of supply chain due diligence work in the annual report submitted as of December 31, 2023，and prepared a supply chain due diligence report. Therefore, the Company has fully complied with the LBMA Responsible Silver Guidance.

在未来的工作中，公司致力于在现有白银供应链尽职调查制度的基础上持续改进，并将负责任的白银供应链流程与公司相应制度更有效地结合起来，并且将定期对内部发现的所有纠正措施进行监控。

In future work, the Company will be committed to continuous improvement on the basis of the existing due diligence system for the silver supply chain, and will more effectively integrate responsible silver supply chain processes with the Company's corresponding systems. Any identified corrective actions will be monitored internally on a regular basis.

四、其他

IV. Others

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If users of this report wish to provide any feedback to us with respect to this report, please feel free to contact us by telephone 0792-6376404 or email lijian1211@126.com.