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Corporate Social Responsibility

October 1, 2018

Chugai Mining Co., Ltd. promotes corporate social responsibility. As part of such activities in the area of precious metals material sourcing, we work toward responsible precious metals material sourcing that is based on consideration for human rights,environment, ethical concerns, etc. In accordance with OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, we strive to source minerals responsibly and reasonably guarantee that our business does not involve or contribute to human rights abuses, direct or indirect support to non-state armed groups, direct or indirect support to public or private security forces,money laundering, illegal transaction or conflict in conflict-affected and high-risk areas nor funding to terrorists.

Human rights abuses include the following.

1. any forms of torture, cruel, inhuman and degrading treatment;

2. any forms of forced or compulsory labour, which means work or service which is exacted from any person under the menace of penalty and for which said person has not offered himself voluntarily;

3. the worst forms of child labour;

4. other gross human rights violations and abuses such as widespread sexual violence;

5. war crimes or other serious violations of international humanitarian law, crimes against humanity or genocide.

Establishment of Mangement System
We have established and implemented a responsible precious metals management system that enables the risk assessment of and response to precious metals material supply chain and promote responsible precious metals management.

Assessment of Sourced Materials and Suppliers
Under the responsible precious metals management system, we continuously assess supply chain and transport risks of preciousmetals sourcingand keep the records properly.If conflict risk or suppliers' human rights abuses, funding for terrorists, money laundering or illegal transaction, or the possibility of such risk in high-risk area is found, we will work on mitigating the risk. If we find that risk mitigation is not possible, we will stop purchasing or transaction immediately.

Implementation of Education and Training
We continuously provide all employees engaged in responsible precious metals management necessary education and training.

Monitoring and Recording of Transactions
We monitor that all incoming precious metal materials align with information received from suppliers, and keep the records properly as well as conduct due diligence on our suppliers.

Implementation of Third-Party Audit
Regarding responsible precious metal management system and the state of implementation, we continuously improve our system as apppropriate and undergo independent third-party audit regularly.


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Corporate Social Responsibility

At the Precious Metal Business Tokyo Plant, we take the utmost care to conserve the environment through the management of our waste water and exhaust gas.

The processed waste water is neutralized and filtered to remove all metal in our waste water processing facility.

At the final waste water disposal pipe, we are constantly monitoring water quality. Should there be an irregularity in the waste water, all water procurement and discharge will be stopped. Even in the event of natural disasters like the event of an earthquake, it is highly unlikely that waste water in the process of metal refinement will leak into the environment.

Gases that are generated during the refining process is filtered with chemicals before being released into the open air.

To secure a safe working environment, all gases emited during our refining process is collected and processed in our gas cleaning tower. In the gas cleaning tower, gases are broken down and absorbed so that any exhaust released is clear and free of any smells. Even in the event of such unforeseen accidents as power failure, gas producing processes will be immediately stopped and the sections will be sealed to prevent leakage.

In the future, Chugai Mining will continue to be considerate of the environment, promote recycling, and remain a socially responsible corporate citizen.

In addition to the maintenance and management of closed mines, Chugai Mining is contributing to conservation through the processing of mine waste water at the Jokoku Mine.

Also, Chugai Mining owns 4.36 hectares of mountainous forest in Kuromatsunai-cho, Suttsu District, Hokkaido, with over 10,000 Japanese larch being planted and harvested, cooperating with the Minami-Shiripeshi Forestry Cooperative’s forest management efforts as part of its global conservation efforts.

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