Zhang Keli, Secretary of CPC CNMC Committee, Visited CNMC Africa Mining PLC.

21 Aug 2014

On July 28, 2014, Zambian time, Zhang Keli, Secretary of CPC Committee and Vice General Manager of China Nonferrous Metal Mining (Group) Co., Ltd. (hereinafter referred to as “CNMC”), visited CNMC Africa Mining PLC. (“NFC”) affiliated to CNMCL, under the accompaniment of Tao Xinghu, CEO of CNMCL.

During the visit, the delegation led by Secretary Zhang Keli investigated the southeastern construction site of ore body prospecting engineering and listened to the working report of Wang Chunlai, Vice President of CNMCL and General Manager of NFC, on behalf of the leadership of NFC.

Secretary Zhang Keli indicated that no improvements are shown in the international market in 2014 as the copper price remained low and the electricity price in Zambia has been increased substantially. However, NFC withstood the pressure and achieved good operating results in the first half of the year. CNMCL is satisfied with the work of NFC. Secretary Zhang Keli put forward four requirements on the current production and operation, construction of key projects, as well as geological exploration of NFC:

First, build on the existing foundation to achieve better development. CAM restored production from the main ore body and put the western ore body into operation, successfully completing the whole development process. Now, the company is confronted with some difficulties and he hoped it can face these difficulties and seize the development opportunities in the southeastern ore body to achieve more glorious success with concerted efforts.

Second, attach great importance to scientific and technological progress. Scientific and technological progress is an important support for speedy development and proper production scheduling is the prerequisite for completing the tasks. NFC is expected to re-sort the mine system, identify the “bottlenecks” that restrict production, and improve the production and efficiency through tackling hard-nut problems and make innovations in science and technology.

Thirdly, take measures to achieve cost reduction and improved efficiency. Attention should be paid to details management and the process control of mining costs is critical. Rigid cost increase should be controlled by rigid measures and targets.

Fourthly, care must be taken to the construction of key projects. Accelerating the construction of combined prospecting and building in the southeastern ore body is an important guarantee for the speedy development of NFC. The leadership of NFC is expected to further implement division of labor, give priority of key projects, and steadily push these projects forward in accordance with the requirements of network planning.

CEO Tao Xinghu put forward specific requirements on the production and operation, expenditure and consumption reduction, and construction of the southeastern ore body in NFC: first, the company must conscientiously implement the spirit of the working conference of CNMC in 2014 to increase the production and efficiency and ensure the completion of the annual targets; second, the company should strengthen internal management and achieve better benefits by tapping into the potential, reduce energy consumption, and lower the expense costs; thirdly, the construction of the southeastern ore body needs to be accelerated, detailed network construction schedule should be prepared, and the contract team should be assessed in strict accordance with the requirements in the plan to promote progress of the project.

Responsible persons in the relevant departments of CNMC headquarters participated in the field visit.