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Since its establishment, Inner Mongolia Xingye Group Co., Ltd. (the “Company”) has always been adhering to the strategy of sustainable development and strictly implementing the national environmental policy of “giving priority to prevention, combining prevention with transformation, and transforming diversified land in a comprehensive way” and relevant laws and regulations. Besides, the Company has strengthened the development and application of environmental protection technologies in the production process constantly, so as to achieve the efficient utilization of resources and the efficient transformation of energy sources and promote the harmonious development and common progress of both the Company and the society, and has made great efforts to build itself into a resource-saving and environment-friendly enterprise.
In environmental protection practice, the Company implements the principles of “combining technical management with economic management”, “combining professional management with mass management”, “combining technological transformation with technological updating”, and “giving priority to prevention and attaching equal importance to planning and management”, strives to achieve comprehensive planning, rational distribution and pollution prevention, and performs the social responsibility of environmental protection conscientiously.

Structure of Environmental Protection Organization

The Company sets up an environmental protection commission, with general manager as the director, deputy general managers as the deputy directors, and heads of relevant functional departments and persons in charge of affiliated enterprises as members. The commission is in charge of organizing the implementation of policies, laws, regulations and decrees concerning environmental protection of the state, the government of the autonomous region, and the local government, planning, arranging, examining, summarizing and appraising environmental protection work, and determining and arranging major environmental protection work and activities of the Company. The office of the environmental protection commission is set up in the Company’s safety and environmental protection department. The managers of the commission at all levels strictly implement system of post responsibility in environment protection.

Environmental Protection Management in Production


Strengthen the management of environmental pollution, coordinate the relation between production and environment, and integrate environmental protection into the Company’s production management, so as to align production targets with environmental objectives and align economic benefits with environmental benefits.
I. Establish annual plans and objectives of environmental protection, control the number of discharge points and the quantity of pollutant discharged, examine the running condition of production facilities producing pollutants and pollution prevention and control facilities from time to time, and execute rewards or punishments according to the environmental protection system.
II. Pollution Reduction Measures: 
(I) Equip heating boilers with desulfurization and deduct facilities, which can greatly reduce dust and SO2 emissions.
(II) Use all of drainage water produced by the stope in the process of underground mining for mine production or as boiler water, other than discharge the water out of the site; 
(III) Use domestic wastewater that has gone through the sedimentation process in the septic tank within the site and reached the discharge standard for dust prevention within the site and irrigation of vegetation covers around the site. 
(IV) Use all of waste ores produced in the mining process for road repairing, infrastructure construction, and wellhead platform construction and use all of slags produced by boilers for heat preservation of infrastructures.
(V) Pump the clarified water in the tailing pond into the wastewater recycling tank of the dressing plant through a sinking pump and then use the water as recycled water.
III. Establish cleaner production audit plans and organize the implementation of such plans. Incorporate cleaner production into daily management, consolidate the results of cleaner production, achieve the objective of “energy conservation, consumption reduction, pollution reduction, and improvement in efficiency”, and build the Company into a resource-saving and environment-friendly enterprise.
IV. Identify and appraise environmental factors and control and prevent potential environmental dangers.
V. Include all pollution prevention and control facilities that have passed the inspection acceptance in the list of fixed assets and establish an account and a technical file with respect to the facilities. 
VI. No pollution prevention and control facility may be dismantled or disabled without permission. When necessary, the facility may be dismantled or disabled with the permission of the Company’s environmental protection commission. The dust-removing equipment manager and the boiler operator must receive professional trainings and take appointment with certificates. Besides, it is required to keep complete operation, tour inspection and maintenance records on the tailing pond and all kinds of dust-removing equipment.
VII. Establish safe and technical operation rules of pollution prevention and control facilities so as to clarify technical requirements and standards for the operation of such facilities and indicate that all pollutants after having been treated by such facilities must meet the discharge standards.
VIII. Establish a handing-over system for continuously running pollution prevention and control facilities. The hand-over content must include running state, pollutant discharge indexes, quantity of pollutant discharged, and relevant consumption indexes.
IX. Implement total quantity control of pollutants discharged. Major pollutants produced in the production process refer to waste gas (SO2, dust and smoke), waste water (COD, ammonia nitrogen, SS), and solid wastes (tailing sand, waste rocks, domestic garbage, and ash). The Company’s environmental protection commission must determine the control indexes for total quantities of major pollutants discharged by affiliated enterprises according to the control plan on total quantities of pollutants discharged, monitor the implementation of such indexes, and report to the local environmental protection department in a timely manner.
X. Establish a file of pollution sources, of which the main content includes names and positions of pollution sources and names, discharge amounts, discharge concentrations, discharge methods, discharge directions, and discharge rules of pollutants. Entrust a qualified unit to conduct environmental monitoring and issue monitoring reports regularly.
XI. Take sealing measures when transporting, loading, unloading or storing substances that may diffuse toxic or harmful gases or dust.
XII. Strengthen scientific management of water use, improve water metering devices, and strive to reduce material loss and avoid wasting water.
XIII. For new projects, reconstruction projects and extension projects, the Company must arrange special personnel to take charge of environmental protection work, participate in the model selection of environmental protection equipment, organize the implementation of design, construction and commissioning of environmental protection facilities, and supervise the implementation of environmental protection “three simultaneities” system in the construction process of such projects. The synchronous running ratio of environmental protection equipment and major equipment must reach 100%.
XIV. Distinguish, appraise and examine related parties in terms of environmental factors and control and prevent potential environmental risks in the construction of projects. The construction contract concluded with the construction unit must include relevant environmental protection clauses, e.g. managing domestic wastewater, waste gases, road dust on the construction site, domestic garbage, and solid wastes produced in the construction and control construction noises strictly as required in relevant management procedures of the environmental management system.
XV. The objective of disposal of solid wastes is to make solid wastes environmentally friendly and minimize and recycle solid wastes. At present, solid wastes are mainly treated in the following ways such as compaction, crushing, separation, solidification, and incineration. All kinds of wastes must be stored in designated places by categories. The construction waste must be timely cleared.
    
Payment of Pollution Discharge Fees


The Company has completed the pollution discharge declaration and registration work, paid the pollution discharge fee in full, and obtained the pollution discharge permit in a timely manner.

Emergency Management for Environmental Incidents

I. Each affiliated enterprise of the Company must set up an emergency management agency for environmental incidents, with the general manager as the leader, the deputy general managers as the deputy leaders and related employees as the members. This agency is divided into several professional teams such as communications team, rescue team, material support team, logistics and security team, medical treatment team, and information release team in terms of functions.
II. The Company’s environmental protection commission must direct each of its affiliated enterprises to prepare an emergency response plan, conduct an emergency response drilling once a year as required in the plan, and evaluate and summarize the drilling in a timely manner so as to improve the plan. The affiliated enterprise must revise the plan once a year, register the plan with the local environmental protection department, and submit the photocopy of the plan to the Company’s safety and environmental protection department for backup. 
III. When an environmental accident occurs to the affiliated enterprise, the emergency response team must start the emergency procedure immediately and carry out a rescue operation quickly. After rescue efforts, the team must evaluate and summarize the emergency procedure and the rescue operation in a timely manner, so as to further improve the emergency response plan.

Publicity, Education and Training of Environmental Protection

I. Strengthen the publicity of environmental protection through various forms. Educate employees to abide by the environmental protection system conscientiously, foster awareness of environmental protection, intensify environmental specifications, and set up correct business development views and environmental protection views, so as to create a good atmosphere that everyone conscientiously takes part in environmental protection, resources conservation and comprehensive utilization activities. 
II. The safety and environmental protection department and the general management department must organize managers in charge of environmental protection at all levels to attend special lectures and training courses at regular intervals to learn advanced technologies and summarize and popularize their experience in environmental protection management.

Assessment and Rewards & Punishments

I. Strengthen the assessment of environmental protection management. Anyone who violates relevant rules and regulations and has one of the following behaviors will be ordered to make corrections within a time limit and may be subject to economic punishment in accordance with the seriousness of the case:
1. Refusing or obstructing the safety and environmental protection department’s on-site inspection or playing tricks when accepting the inspection.
2. Failing to build files of pollution sources according to rules, failing to establish annual or monthly goal or plan of environmental protection, or playing tricks when establishing such goal or plan.
3. Purchasing materials and equipment that fail to meet the provisions of environmental protection management.
4. Deliberately failing to use pollution prevention and control facilities properly, dismantling such facilities without authorization, or leaving such facilities unused.
5. Failing to discharge pollutants according to the rules or discharging excessive pollutants. 
6. Failing to carry out “three simultaneities” construction or involving in a construction project of which the environmental protection facilities have not gone through the completion acceptance and the main works has been put into production or service.
II. The safety and environmental protection department shall establish detailed rules for assessment and evaluation of environmental protection management performance and adopt such methods as self-assessment, examination and rating, and selective examination by the safety and environmental protection department. The assessment result will be regarded as one of bases to issue bonuses. The Company shall conduct the rating of advanced collectives and advanced individuals once a year and give advanced collectives and individuals certain material incentives.

The Implementation Condition of Environmental Protection Laws and Regulations

Over the years, the Company has been in strict compliance with laws and regulations on environmental protection and has never had major environmental pollution accidents, environmental appeals, environmental petitions, or other behaviors violating laws or regulations on environmental protection.

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