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Guo Wenqing Hosts a Conference on the Stable Production of

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On June 24, Mr. Guo Wenqing, China Minmetals’ President and Deputy Party Group Secretary and MCC Chairman, hosted the 20th general manager office meeting of China Minmetals in 2020. On the meeting, officials involved briefed the preventive measures against COVID-19 and the production managing status of Las Bambas Copper Mine, Kinsevere Copper Mine, Ramu Nickel and Cobalt Mine, Duddar Lead-Zinc Mine, Hunan Non-Ferrous Metals Group, Minmetals Mining Holdings Limited, Minmetals Luzhong Mining Co., Ltd., China Tungsten and Hightech Materials Co., Ltd., China Minmetals Rare Earth Co., Ltd., and Heilongjiang Graphic Mine, and discussed and deployed measures to stabilize the production of mining enterprises at home and abroad under the regular pandemic prevention and control situation.

The meeting heard reports from China Minmetals Pandemic Prevention and Control Leading Group and relevant mining enterprises. It was pointed out on the meeting that COVID-19 is still spreading globally. During the Extraordinary China-Africa Summit on Solidarity Against COVID-19 and the meeting with President of the Europe Council and President of the European Commission, General Secretary Xi Jinping emphasized that the Chinese people have made tremendous efforts and paid a huge price to control the domestic epidemic, but still face rebound pressure. The world under the impact of the epidemic is undergoing profound changes and is facing more unstable and uncertain factors. Since the outbreak, China Minmetals has deployed the Party Central Committee’s decisions and policies as always. China Minmetals responded and acted quickly to grasp the characteristics of different stages and put forward targeted goals and requirements in time. The judgment that “the epidemic will surely be defeated, the life will surely be back on track, and we will surely move on” has played a key role in strengthening people’s confidence. China Minmetals decisively implemented semi-military management of overseas mines and conducted 24-hour comprehensive health management over overseas employees. At the same time, production plans were adjusted and optimized to respond to the sharp drop in commodity prices, and measures were taken to stabilize the basic production and operation, which achieved good results during the pandemic prevention and control period. As of late May, all operating indicators had been well completed, proving that China Minmetals achieved high-quality operations.

To better achieve the regular pandemic prevention & control and production & operation results, the meeting put forward six requirements as follows:

First, we should further enhance the political stance and make overall plans for tasks under the regular pandemic prevention and control situation. China Minmetals must be well prepared in both ideological and practical levels for a long-term response towards the regular pandemic prevention and control situation, and improve its coping abilities accordingly. The key to the development of an enterprise lies in talents. Therefore, it is necessary to select a strong leadership team of professionals with practical management experiences, and promote those who are willing to do, able to do, and succeed in management. Leaders should constantly temper and improve their moral cultivation, enhance their ability of pressure resistance and resilience, and act as the “backbone” and the “fixing star”.

Second, we should implement detailed measures to assure regular pandemic prevention and control. The Pandemic Prevention and Control Leading Group of China Minmetals and MCC, respectively, should, as always, play their role as the “operational headquarter”. All enterprises must fully understand the long-term and complex nature of pandemic prevention and control, and must resolutely overcome paralyzing thoughts, abandon war-weariness emotions, and put an end to the try-your-luck mentality. Overseas mines should continue to implement semi-military management, and guarantee the pandemic prevention materials supply. Measures should be taken to strictly organize personnel rotation, conduct preventive detection, arrange charter flights for work resumption, and strengthen communication with staff and their family members at home. At the same time, the establishment of overseas project rotation training bases should also be put on the agenda.

Third, we should adhere to the bottom line thinking to strengthen the epidemic risk assessment, market analysis, and judgment, and continue to stabilize production and operation. We must put risk prevention in the first place. On the basis of good risk judgment, we have to accurately grasp the industry features and stages of development to effectively stabilize the basic business for enterprise development. According to the phased changes in the industry, it is necessary to review the situation, follow the trend, and expand the brand to breed new opportunities in crises and open up new prospects in changes.

Fourth, we should make ensuring stability a top priority and guarantee the uninterrupted and orderly mining production. The leading team of mining enterprises should carry forward the spirit of driving the nail to take the lead in on-site production management. We should not only stick to steady production without shutting down, but rationally arrange production rhythm and optimize production plan with efficiency focus. In this special period, MCC must shoulder its responsibility and seize favorable market opportunities to achieve an increase in both quantity and quality so as to “make up for possible shortages with surpluses” and play the role of “stabilizer” at critical times.

Fifth, we should make great efforts to further reduce the cost of mining and enhance the competitiveness of our core business. In accordance with the requirement that “production must enter the optimization and promotion period”, we have to take actions to improve quality and efficiency, strengthen centralized procurement, reduce equipment maintenance costs, control new investment strictly, and cut down non-productive management expenses.

Sixth, we should insist on high-end and green development, and actively plan for long-term, prosperous, and stable development. It is necessary to vigorously promote the construction of smart mines and green mines to improve operational efficiency and sustainable development capabilities. During the epidemic, in the context of declining valuations of domestic and foreign mining assets and the operational difficulties of some companies, we must seize the window of opportunity to obtain new resources at low cost in accordance with the principle of “resources with high quality and projects with enough cash flow”. Relevant departments of the headquarters and related enterprises should take the initiative to strengthen tracking, discover opportunities, and optimize the main business of metal minerals, enhancing the development potential of China Minmetals.

The leaders of China Minmetals including Liu Caiming, Zhang Zhaoxiang, Jiao Jian, Lu Weidong, Ren Zhufeng, and Wang Shilei attended the meeting together with other executives, heads of the discipline inspection and supervision team, relevant headquarter departments, directly affiliated organizations, and directly managed enterprises of China Minmetals.

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