Inside a Key Associate Company | Zangge Mining Organizes On-Site Visit to Tibet Julong Copper for Independent Directors and Investor Representatives

       At the Central Control Room of the No. 2 Processing Plant, the delegation observed the stable operating curves of key processes, including grinding, flotation, and thickening, through electronic displays. The delegation also visited the return-water system of the Jiama Valley tailings storage facility. Through floating pumps and two-stage booster pumps, all mineral processing wastewater from the tailings storage facility is conveyed back to the plant for recycling and reuse. By treating wastewater as a reusable production resource, Julong Copper has demonstrated tangible progress in pursuing green development at its high-altitude mining operations.

       Strong Resource Endowment and Continued Release of Development Potential

       The Julong Copper Mine has identified cumulative copper metal resources of 25.88 million tonnes, making it the copper mine with the largest registered resource volume in China. Its abundant resource base provides a solid foundation for continued capacity expansion and long-term stable operations.

       During the research symposium, Tang Dingjian, Deputy Financial Director of Julong Copper, introduced the Company’s production and operating performance. Benefiting from higher average copper prices and the successful commissioning of Phase II of the Julong Copper Mine, Julong Copper has significantly strengthened its profitability.

       With Phase II of the Julong Copper Mine successfully commissioned and production capacity being progressively ramped up, the mine’s resource advantages are being further translated into higher output and improved operating performance. Meanwhile, the subsequent planning for Phase III is expected to create additional room for future capacity growth and long-term development.

       Investment Income Continues to Grow, Further Demonstrating the Value of a Core Associate Asset
       As a major shareholder of Julong Copper, Zangge Mining continues to benefit from the growth driven by the mine’s capacity ramp-up. In the first half of 2026, the Company recognized approximately RMB 2.839 billion in investment income from Julong Copper, representing a year-on-year increase of 124.57%. As of August 5, 2026, the Company had received cumulative cash dividends of RMB 3.078 billion from Julong Copper during the year, further demonstrating the value of this core associate asset.

       During the research and discussion session, investor representatives held in-depth exchanges with management on key topics including copper price cycles, the development plan for Phase III, and the pace of capacity ramp-up. Independent Directors Professor Liu Zhiyun and Professor Liu Ya also engaged in detailed discussions with management on corporate governance, production safety, technologies and processes, environmental protection, labor and employment, community development, government relations, and coordination with local culture and customs, and put forward constructive suggestions.

       Participating investors noted that the on-site visit provided them with a more direct and comprehensive understanding of the Julong Copper Mine’s resource strength, current production and operating conditions, and future growth potential, further strengthening their confidence in the development prospects of Zangge Mining’s core assets.