Given the high reliance of the Copperbelt’s mineral processing and logistics on critical consumables supplied via the Middle East, SMM conducted a 17-day field investigation across the Copperbelt to assess the short-term stability of the copper supply chain and the impact of regional infrastructure bottlenecks, engaging with 25 stakeholders in Zambia and DRC and covering the entire value chain, ranging from mining, smelting, refining to downstream logistics and infrastructure investment.

On April 15, a delegation from SMM Information & Technology Co., Ltd. (SMM), comprising Ye Jianhua, Director and Supervisor of SMM's Industry Research Department, Feng Chundi, Expert of SMM's Industry Research Institute, and Wu Tao, SMM's Overseas Marketing Manager for Copper and Tin, visited CNMC Luanshya Copper Mines PLC for an on-site survey and consultation. The delegation received a warm welcome from the leadership of CNMC Luanshya. During the exchange, relevant executives of CNMC Luanshya provided a detailed introduction to the enterprise's development history, equity structure, mining-beneficiation-smelting production layout, mineral resource endowment, and daily operational management of overseas mines. They particularly highlighted that the company's core product, "CLM" brand copper cathode, completed LME registration and certification on December 27, 2023. Backed by stringent quality control, the product has gained recognition in the international market, effectively enhancing its global circulation and core competitiveness. The SMM survey team, drawing on industry research and market tracking experience, shared insights on the operational status of the copper industry in and outside China, price trends, policy environment, and upstream and downstream supply-demand patterns. During the discussion, both parties engaged in communication on practical issues including changes in the international copper market, mining-beneficiation-smelting production and operations, responses to raw material and finished product market fluctuations, and overseas mining management models. The communication was conducted in a pragmatic and smooth atmosphere, deepening mutual understanding and laying a solid foundation for ongoing regular exchanges and business collaboration. Brief Introduction to CNMC Luanshya Copper Mines PLC CNMC Luanshya Copper Mines PLC, referred to as "CNMC Luanshya" in Chinese and abbreviated as "CLM," is a Sino-Zambian joint venture mining company restructured and established on November 10, 2009, after China Nonferrous Metal Mining (Group) Co., Ltd. (CNMC Group) participated in an international competitive bidding and successfully acquired the controlling stake in Luanshya Copper Mine that year. The company has a registered capital of $10.01 million, of which China Nonferrous Mining Corporation Limited, a subsidiary of CNMC Group, holds 80%, and Zambia Consolidated Copper Mines Investment Holdings PLC holds 20%. The company's main business covers copper resource mining, beneficiation, and smelting. Its primary products include copper cathode and copper concentrates, with an annual copper metal production of 50,000 mt. It is a large-scale comprehensive mining enterprise integrating geological exploration, mining, beneficiation, and smelting. The company currently holds seven large-scale mining licenses covering a total area of approximately 130 square kilometers. It operates multiple production units and projects, including the Muliashi hydrometallurgy smelter, beneficiation plant, Luanshya New Mine, and open-pit mine, making it one of CNMC Group's largest and most complete copper enterprises in Zambia in terms of investment scale and industry chain coverage. From its establishment in 2009 through the end of 2025, the company had cumulatively produced over 670,000 mt of copper metal, generated cumulative revenue exceeding $4.7 billion, achieved cumulative total profits exceeding $1 billion, and returned $220 million to shareholders, contributing 90% of GDP, 90% of tax revenue, and 70% of stable employment to the Luanshya region. is scheduled to be held on September 15-16, 2026 in Lusaka, Zambia. Your participation is warmly welcomed~ Conference Contact : Wu Tao: 18270916376 jennywu@smm.cn

On April 17, a delegation from SMM Information & Technology Co., Ltd. (SMM), comprising Ye Jianhua, Director and Supervisor of SMM's Industry Research Department, Feng Chundi, Expert at SMM's Industry Research Institute, and Wu Tao, SMM's Overseas Marketing Manager for Copper and Tin, visited CNIT Zambia Limited for an on-site survey and exchange. The company's relevant leaders extended a warm reception. During the exchange, the relevant heads of CNIT Zambia Limited provided a detailed introduction to the enterprise's development overview and core operations. The SMM survey team, drawing on the current status of the ex-China non-ferrous industry market and their industry research experience, shared insights on the global copper product circulation landscape, cross-border trade logistics conditions, ex-China ore production and sales support, and industry market dynamics. Both parties engaged in pragmatic and in-depth discussions on core topics including cross-border storage and transportation operations of non-ferrous metals in Africa, cross-border logistics cost management, supply chain stability assurance, ex-China logistics network deployment, and future industry development trends. This on-site visit effectively enhanced mutual communication and understanding between the two parties, laying a solid foundation for subsequent regular industry exchanges, information sharing, and industrial synergistic cooperation. Introduction to CNIT Zambia Limited CNIT Zambia Limited (hereinafter referred to as the Zambia Company) was established in 2019 as a wholly-owned overseas platform of CNMC International Trading Co. Ltd. (hereinafter referred to as CNMC Trading) for deepening its presence in the Central and Southern African market. The enterprise focuses on the logistics and return shipment of equity copper products as its core business, concentrating on the cross-border transportation of non-ferrous metal products such as copper cathode and blister copper, while concurrently expanding market-oriented value-added services including warehousing and maintenance, local customs clearance, and trunk-line logistics. Leveraging its advantages as a regional logistics transit hub, the Zambia Company is positioned as CNMC Trading's inland transshipment hub and frontline operations center in Central and Southern Africa. It efficiently integrates quality local resources including vehicle fleets, warehousing facilities, and port customs clearance, fully undertaking the storage and transportation of bulk materials such as copper products, coal, and other materials in the Zambia and DRC regions, thereby reinforcing the stability of the regional industry chain and supply chain. Scheduled to be held on September 15–16, 2026 in Lusaka, Zambia. Your participation is welcome! Contact Person : Wu Tao: 18270916376 jennywu@smm.cn

Capacity side, according to incomplete statistics, China's alkaline electrolyzer market remained at 43.77 GW, the PEM electrolyzer market remained at 2.7 GW, with no new capacity additions for the time being. Sungrow Hydrogen's alkaline electrolyzer systems and proton exchange membrane electrolyzer systems were simultaneously delivered to Oman, Europe, and South America; Trina Green Hydrogen delivered multiple sets of second-generation Tianqing series 1,000 Nm³/h alkaline electrolyzers to green hydrogen-ammonia-methanol projects in China; Hande completed the delivery of one set of 1 Nm³ PEM hydrogen production system to a Chinese university. Project-related developments: Shandong Energy Group Inner Mongolia Branch: The winning bid candidates for the 2026 Shenglu Power Plant hydrogen production station electrolyzer project were publicly announced. The first winning bid candidate was Beijing Mingyang Hydrogen Energy Technology Co., Ltd., and Tianjin Dalu Hydrogen Production Equipment Co., Ltd. ranked second. CNMC Orient Tantalum Industry: For the 50 m³ electrolytic hydrogen production and purification system, the first winning bid candidate was Tianjin Dalu Hydrogen Production Equipment Co., Ltd. with a bid price of 1.68 million yuan. The second and third candidates were Shenzhen Wenshi Hydrogen Energy Technology Co., Ltd. and Beijing Zhongdian Fengye Technology Development Co., Ltd., with bid prices of 1.79 million yuan and 1.99 million yuan, respectively. Beijing Zhongdian Fengye Technology Development Co., Ltd.: Officially signed a strategic cooperation framework agreement with Haitai New Energy. The in-depth cooperation will focus on five key areas: first, integrated development of PV-to-hydrogen systems to create standardized solutions; second, advancing integrated wind-solar-storage-green hydrogen projects to build benchmark projects in regions of China rich in wind and solar resources; third, conducting technology R&D and process optimization to overcome key technologies and jointly develop new energy hydrogen production process packages; fourth, leveraging both parties' resources for marketing and sales to jointly expand China and non-China markets; fifth, jointly applying for scientific research and industrial support projects and participating in the formulation of industry standards. CNOOC (Shanxi) Precious Metals Co., Ltd., Jinzhong City: Its Shanxi Province's first MW-class proton exchange membrane (PEM) water electrolysis hydrogen production unit was successfully commissioned. Zaoyang Tongda Passenger Transport Co., Ltd.: Issued a tender announcement for the procurement of 20 hydrogen energy buses. The procurement covers 20 hydrogen energy buses with a maximum price limit of 21 million yuan. The project does not accept consortium bidding. Jiangsu Guofu Hydrogen Energy Technology Equipment Co., Ltd.: Announced the signing of an agreement with its affiliated company GF Hydrogen Africa Sarl to provide a 20 MW green hydrogen production system for Morocco, with a total consideration of approximately $6.2 million. China Coal Shaanxi Energy Chemical Group Co., Ltd.: Published the transaction result announcement for the feasibility study report compilation service for the China Coal Shaanxi Xi'an Kang green electricity-coupled biomass-to-green methanol integration project. The supplier is Hualou Engineering Technology Co., Ltd. Inner Mongolia Green Hydrogen Steel Union Technology Co., Ltd.: Its green electricity-green hydrogen shaft furnace reduction-electric furnace short-process all-green steel production line project released the winning bid announcement for the preliminary survey and mapping portion. The winning bidder was Tianjin Geological Engineering Survey and Design Institute Co., Ltd., with a winning bid amount of 3.0362 million yuan. It is reported that the tender for the civil construction portion of the project was completed in February. Inner Mongolia Huadian Huayang Hydrogen Energy Technology Co., Ltd.: The winning bid result for the survey and design service for the wind-solar-storage portion of the Inner Mongolia Huadian Damao Banner 1 million kW wind-solar-to-hydrogen integration project was announced. Power supply engineering: total new energy installations of 1,000 MW, including 700 MW wind power and 300 MW PV, with supporting construction of one 100 MW/200 MWh LFP battery ESS power station, two 220 kV step-up substations, access roads, collector lines, and other equipment and facilities. Hydrogen production plant: construction of 88 units of 1,000 Nm³/h water electrolysis hydrogen production equipment and supporting facilities, with an annual hydrogen output of 547 million Nm³; supporting construction of one 220 kV hydrogen production main step-down substation and other facilities and equipment. The total project investment is 6.7645 billion yuan, with 30% self-owned capital. Ordos Hanxia New Energy Co., Ltd.: At the hydrogen production plant of the Narisong PV-to-hydrogen industrial demonstration project in Jungar Banner, Ordos, Inner Mongolia Autonomous Region — the site of China's first 10 kt-class PV-to-hydrogen project — the first truckload of high-purity green hydrogen meeting the 99.999% national standard was successfully dispatched after completing the filling operation, marking the first shipment of 2026. Policy Review 1. The National Development and Reform Commission issued the "Standards for Determining Major Accident Hazards in the Electric Power Sector and Regulations on Governance, Supervision and Administration," Order No. 41 of 2026. The document states that under the major hazard determination standards, any of the following conditions occurring in the power grid or power equipment and facilities shall be determined as a major hazard, including: for DC ±800 kV and AC 1000 kV and above transformers (converter transformers), monitored acetylene content reaching 0.000005 liters per liter or weekly increment exceeding 0.000002 liters per liter, or hydrogen content exceeding 0.00045 liters per liter, or total hydrocarbon content exceeding 0.00045 liters per liter. 2. The Henan Provincial Development and Reform Commission issued a notice on the list of key construction projects in Henan Province for 2026. The document states that Henan Province has 1,418 provincial key projects for 2026 with a total investment of approximately 3.2 trillion yuan, aiming to complete annual investment of over 1 trillion yuan. 3. The General Office of the Gansu Provincial People's Government issued a notice on the implementation plan for accelerating scenario cultivation and opening up to promote large-scale application of new scenarios. The document states, in the clean energy sector, the plan is to promote the coordinated layout of "generation-grid-load-storage-production," accelerate the construction of industrial cluster scenarios for wind power, PV, concentrated solar power, hydrogen energy, energy storage equipment, and new energy battery industries. A number of green electricity direct-connection scenario projects are expected to be promoted, and new energy consumption models such as virtual power plants and smart microgrids are expected to be popularized. The plan is to accelerate the deployment of green electricity-to-hydrogen scenarios through multiple models including new energy direct supply, off-grid operation, and green electricity trading, expand the diversified application of green hydrogen in industry, transportation, energy storage, and power generation, and strive to build the Hexi "Green Hydrogen Corridor" innovation scenario. Enterprise Developments Shanghai Hydrogen Maple Energy Technology Co., Ltd.: Partnered with US-based Apollo Mechanical Contractors to secure a commercial order for low-temperature solid-state hydrogen storage technology from Klickitat Valley Health Hospital in Washington State, US. Its independently developed titanium-based solid-state hydrogen storage technology successfully entered the US application market. AiH2 Technology (Group) Co., Ltd.: Officially signed a cooperation agreement with Chongqing Wansheng Economic and Technological Development Zone. Both parties will leverage the by-product hydrogen resources of the Wansheng Economic and Technological Development Zone to build the largest kt-class magnesium-based solid-state hydrogen supply and storage base in south-west China. Huawang (Qingdao) Hydrogen Energy Technology Group Co., Ltd. : The groundbreaking ceremony for the hydrogen refueling station construction project at Qingdao Hydrogen Energy Industrial Park was officially held in Boli Town, West Coast New Area, Qingdao. Panzhihua Huacheng New Energy Co., Ltd. : The pre-acceptance work for the Madian hydrogen refueling station's liquid hydrogen and gaseous hydrogen expansion project was successfully completed. China Classification Society (CCS) Wuhan Branch : Officially issued a certificate of approval to CSSC 712 Research Institute, marking a key breakthrough in China's marine SOFC technology and entering a new stage of standardized and industrialised development. Yunnan Energy Investment Weixin Energy Co., Ltd.: Issued an inquiry letter for the procurement of hydrogen storage tanks for the turbine department, with a procurement quantity of 4 units. AECC Hunan Aviation Powerplant Research Institute: Its independently developed MW-class hydrogen-fueled aviation turboprop engine AEP100 successfully completed its maiden flight. The flight lasted 16 minutes and covered a distance of 36 kilometers. Shandong Hi-Speed Service Development Group Co., Ltd.: The winning bid candidates for the Phase II PEM water electrolysis hydrogen production and energy storage portion of the hydrogen highway and zero-carbon service area key technology integration and demonstration Gaomi Service Area hydrogen refueling station comprehensive utilization project were publicly announced. According to the announcement: the first winning bid candidate was Jiangsu Guofu Hydrogen Energy Technology Equipment Co., Ltd. with a bid price of 21.27 million yuan; the second winning bid candidate was Luyu Hydrogen Energy (Xiamen) Technology Co., Ltd. with a bid price of 21.95 million yuan; the third winning bid candidate was Jiangsu Huade Hydrogen Energy Technology Co., Ltd. with a bid price of 21.75 million yuan. Patent Applications 1. Shanghai Institute of Ceramics, Chinese Academy of Sciences (China) published patent CN2025110028, developing a ceramic-based anion exchange membrane with a laboratory-tested lifespan of 80,000 hours. 2. Johnson Matthey (UK) filed patent WO2025109876, disclosing an Fe-Ni-Mo ternary non-precious metal catalyst formulation with activity approaching that of platinum-based materials. Technology Footprint / Technical Specifications 1. The team led by Professor Yu Ying at Central China Normal University developed a three-dimensional hierarchical nanostructured catalytic electrode, a core part for seawater hydrogen production. 2. Dalian University of Technology designed an electron pump catalyst with an asymmetric photo-responsive structure to maintain the asymmetry of electron distribution. 3. The research team from the School of Electrical Engineering and the State Key Laboratory of Electrical Insulation and Power Equipment at Xi'an Jiaotong University successfully developed a Ru/Ti₃C₂Oₓ@NF bifunctional electrocatalyst for seawater electrolysis. 4. Johnson Matthey and Syensqo achieved efficient recovery and recycling of platinum group metals and ionomers from PEM fuel cells and electrolyzers, significantly reducing the carbon footprint. 5. Teams from Xi'an Jiaotong University and Peking University jointly developed a novel osmium-based catalyst, significantly improving AEM water electrolysis hydrogen production efficiency and economics, facilitating the scale-up of low-cost green hydrogen.

LME has announced that the "SMD" brand cathode copper produced by CNMC's Deziwa Mining Company has been recognized as a high-quality deliverable product meeting the Copper Grade A contract standard.

China Nonferrous Mining Corporation Limited (01258) announced that on June 16, SM Minerals entered into a subscription agreement with AM shareholders, pursuant to which SM Minerals agreed to issue and allot subscription shares, and the company agreed to subscribe for such shares at the subscription price. The company will pay the subscription price through share subscription, acquiring a 10.5% stake in the issued share capital of SM Minerals. The subscription price will be primarily used for technical exploration and development work at the Benkala Mining Project. This strategy helps to reduce investment risks and effectively utilize the resources and expertise of SM Minerals. The subscription price amounts to US$11,763,850, and the company shall pay the amount to the escrow account or designated bank account of SM Minerals (as confirmed by SM Minerals, the company, and AM shareholders) in immediately available funds on the closing date in accordance with the subscription agreement. According to the subscription agreement, the three parties agree to use their best efforts to cooperate in good faith to negotiate and finalize the definitive agreements, including but not limited to entering into an option agreement for the company to further acquire an aggregate of 65% of the issued shares of SM Minerals from the original shareholders by the final date. The announcement by China Nonferrous Mining Corporation Limited outlined the contents of the preliminary agreement: the company, SM Minerals, and AM shareholders entered into preliminary agreements on November 20, 2024, January 24, 2025, and April 25, 2025, respectively, concerning the transfer of 5,265 shares of SM Minerals (representing 5% of the issued share capital of SM Minerals) for a consideration of US$5,000,000. The closing of the preliminary agreement was completed on May 16, 2025. Regarding the reasons and benefits of the acquisition, China Nonferrous Mining Corporation Limited stated: SM Minerals is registered at the Astana International Financial Centre (AIFC) in Kazakhstan and, through its subsidiaries, owns assets such as the Benkala North mining right (with copper metal reserves of approximately 1.5 million mt) and the Benkala South exploration right, meeting the conditions for large-scale mining. This investment provides an opportunity for the group to expand its business into the copper mining sector in Kazakhstan, optimize its mineral resource portfolio, and enhance its market position and competitiveness. The addition of copper resources will drive the optimization of the group's resource strategy and future growth, marking a crucial step for long-term development. By signing the preliminary agreement, subscription agreement, and option terms, the company hopes to achieve a controlling stake in SM Minerals in the future. China Nonferrous Mining Corporation Limited also announced on June 16 that its subsidiary, CNMC Hong Kong Holdings, signed the 2025 Gecamines Copper Cathode Purchase Agreement with Gecamines on June 16, 2025. The total value of the agreement is approximately US$67.03 million, for the purchase of 7,000 mt of high-grade copper cathode processed through the hydrometallurgical method by CNMC Huaxin. CNMC Hong Kong Holdings is a subsidiary of the company. Gecamines holds a 40% stake in the company's subsidiary, Kampombo Mining, and is a connected person at the subsidiary level of the company under the Listing Rules. Therefore, in accordance with Chapter 14A of the Listing Rules, the transactions proposed under the 2025 Gecamines Copper Cathode Purchase Agreement constitute connected transactions for the company. According to the 2024 annual report previously released by CNMC, the company achieved revenue of $3.817 billion in 2024, up 5.8% from $3.606 billion in 2023. Net profit was $558 million, up 46.2% from $381 million in 2023. Profit attributable to owners of the company was $399 million, up 43.6%. Basic earnings per share were approximately 10.34¢, an increase of approximately 2.91¢ from 7.43¢ in 2023. In the financial review, the cost of sales was $2.767 billion, up 1.4% from $2.729 billion in 2023, primarily due to increased sales of blister copper and copper anodes, as well as rising international copper prices. Gross profit was $1.049 billion, with the gross profit margin increasing from 24.3% to 27.5%. The company effectively controlled distribution and selling expenses, which decreased to $8.7 million. In terms of business segments, the hydrometallurgy and smelting segments performed well, with external sales revenue from the hydrometallurgy segment reaching $1.094 billion and from the smelting segment reaching $2.722 billion. Overall, despite a decline in the production of copper cathode and cobalt hydroxide, the overall revenue growth remained significant, primarily driven by rising copper prices and improved production efficiency. When commenting on CNMC's 2024 annual report and Q1 2025 results, Minsheng Securities stated that the company's net profit attributable to shareholders in 2024 reached a record high, mainly due to rising copper prices. In Q1 2025, the company's net profit attributable to shareholders increased significantly both YoY and QoQ, primarily due to rising copper prices and the normalization of copper production. Key highlights: ① Endogenous growth: CNMC's subsidiaries, including CNMC Africa Mining, CNMC Luanshya, and Chambishi Hydrometallurgy, will research and advance the following projects over the next 3-5 years: expansion of the Chambishi Southeast orebody, the new mine at CNMC Luanshya, the mining and beneficiation project at the Samba mine, and the production resumptions at the Gangpofu West orebody and MSESA orebody, indicating substantial room for endogenous growth. ② Extensive M&A: At the group level, to address horizontal competition, the DRC company and the Deziwa copper mine are expected to be injected into the publicly listed firm. ③ Rare high-dividend copper target. Risk warnings: Continuous decline in smelting and processing fees, decline in copper prices, and geopolitical risks. In its research report commenting on CNMC, Guosen Securities stated: Regarding core mines: In 2024, CNMC Africa Mining produced approximately 68,200 mt of copper anodes, down approximately 11% YoY; CNMC Luanshya produced approximately 44,400 mt of copper cathode, up approximately 2% YoY, and 4,159 mt of copper anodes, down approximately 47% YoY; Gangpofu Mining produced approximately 34,400 mt of copper cathode, up approximately 4% YoY. High Dividend Payout Ratio: The company plans to distribute a dividend of 4.2893¢ per share, with a total dividend amount of approximately $167 million, accounting for 42% of the company's net profit attributable to shareholders in 2024. The company has maintained a dividend payout ratio of over 40% for four consecutive years since 2020, with its dividend payout ratio and dividend yield ranking among the leading levels in the industry. The company's captive mine is expected to gradually increase its annual copper production to approximately 300,000 mt in the medium and long term. Risk Warnings: Risk of mineral product selling prices not meeting expectations, risk of the company's project construction progress not meeting expectations, and risk of changes in policies related to mineral resources in overseas countries.