CHAIRMAN’S STATEMENT

Dear Shareholders,

I would like to take this opportunity to extend my heartfelt gratitude to the Shareholders and all sectors of the society for their care, support and help to the Company, and to thank the management and staff for their contributions to the operation, management, reform and development of the Company.

The year 2018 was the 20th anniversary for the entering of Africa by China Nonferrous Metal Mining (Group) Co., Ltd, the holding group of the Company, and also a year when the holding group seriously implemented the spirit of the important speech delivered by President Xi Jinping at the Beijing Summit of the Forum on China-Africa Cooperation, and promoted the “Belt and Road” initiative to achieve synergy with the development in Africa by striving to work, develop and excel. During this year, the Group put forward the development strategy of “realize coordinated development of its three major businesses, driven by two main work lines in development and management, and conduct a comprehensive reform”, and explicitly set forth the priority of developing international business, the “Belt and Road” and the regional business in Africa.

During this year, Zambian President Lungu visited the Chambishi Southeast Mine project owned by the Company, and attended the “Zambia-China Business Forum” held at the holding group and fully recognized the Company. During this year, the Board, the management and the staff of the Company made concerted efforts to expand the external market and strengthen internal management for enhancement of quality and efficiency. As a result, in terms of major products of the Company, the production volume of blister copper (including copper anode) and sulfuric acid remained at the same level in general as compared to last year and continued the heavy-loaded productivity, whereas the production volume of copper cathode increased by 8.8% year-on-year, resulting in a year-on-year increase of 11.7% in revenue in 2018. Profit attributable to the owners of the Company amounted to US$146.3 million (with a basic earnings per share of US$4.19 cents), representing an increase of US$3.9 million as compared with the year 2017.

The world has been undergoing a slowing global economy and rising trade protectionism since last year. However, the world economy expects to gain new momentum in light of progress made in respective of the proactive negotiations on trade disputes between China and the US, as well as China’s deleveraging, tax cuts and other measures for reform and stabilizing growth. Looking ahead, given the global copper products will remain at a tight balance, and demands for cobalt in the new energy sector will continue to grow, the prices of copper and cobalt remain promising in the long-term. With the rapid growth of emerging market and synchronized recovery of developed economies, the global economy is going to pick up stepwise.

In 2019, China Nonferrous Mining will further optimise its development strategies, enhance corporate governance and work intensity and increase investments in geological exploration and development on the one hand; and accelerate the progress in developing existing resources in Zambia, DRC and other key areas to increase the copper-cobalt resources in the possession of the Company through paralleled efforts in development, acquisition and cooperation. The Group will continue to improve the operational efficiency of its existing mines and smelters through optimizing the internal value chain management, promoting the integration construction of production, supply and marketing in the same region, boosting the digitalization of mines, intensifying cost control and other modern management methods, so as to continuously enhance the Group’s profitability. In addition, we will exert due efforts on such major construction projects as the new construction project of Lualaba Copper Smelter, the reconstruction and expansion project of CNMC Huachin Mabende, and the mining exploration project of Kambove Mining to enlarge the existing production capacity and business scale of the Company on an ongoing basis. In particular, special priority will be given to capital operation and management and greater efforts will be devoted to information disclosure and results presentations so that the true value of the Company will stand out in the market. Moreover, industry-finance integration will be employed to speed up the development of the Company.

As a responsible corporate-citizen, China Nonferrous Mining will continue to implement the development vision of “innovation, coordination, eco-friendliness, openness and sharing”. While developing resources, the Group also highly values the environmental protection and the sustainable use of resources. We will seek to ensure the safety and efficiency of production, strictly abide by various employment regulations and governance practices, improve the working environment of the staff, and properly handle concerns of stakeholders such as suppliers and communities so as to repay the shareholders with excellent performance and in turn realize win-win cooperation and harmonious development.