Zimbabwe's sole operating lithium sulphate plant, run by a Zhejiang Huayou Cobalt subsidiary, has no capacity to process third-party concentrate just months before the country's export ban takes effect, according to comments from plant officials during a government site visit. No room for outside supply. The government's January 2027 ban on lithium concentrate exports aims to push miners toward domestic refining, lifting export revenue and local employment. Producers have requested more time to build their own processing plants, but authorities have instead directed them to use existing local facilities of which only the Prospect Lithium Zimbabwe Huayou plant is currently operational, and it cannot absorb outside material. Mine manager comment. "We don't have the capacity to process other minerals from outside. Our concentrator plant produces around 400,000 tons a year, so there's no room for other players," said mine manager Mthokozisi Goliath, noting the sulphate plant can only process what its own concentrator supplies. No delay to deadline. Mines minister Polite Kambamura ruled out pushing back the ban: "The January 2027 deadline is still on... We would like to urge all producers to stick to that deadline." Other plants not ready in time. Processing facilities under construction at other Zimbabwean lithium assets are unlikely to be completed before the deadline. Chinese firms have invested roughly $2 billion into Zimbabwe's lithium sector since 2021. SMM View: This tightens the bottleneck facing Zimbabwe's non-Huayou producers heading into January 2027 with Goromonzi at full capacity and rival plants unfinished, miners without their own processing routes face a stark choice between stockpiling concentrate, absorbing steep discounts on any domestic sale, or halting output altogether. This reinforces the case for closely tracking commissioning timelines at competing plants, as delays there directly translate into constrained sulphate supply and potential price support for processed material once the ban takes hold.

Nigeria has confirmed lithium reserves estimated at 3.3 million metric tonnes at a mining site near Abuja, alongside the identification of a separate polymetallic mineral province in Kaduna State that also carries lithium mineralisation. The findings were disclosed at the African Natural Resources and Energy Investment Summit 2026 in Abuja as part of the country's push to build out its critical minerals sector. The 3.3 million-tonne Abuja Lithium Site estimate was disclosed by Steron Mining and Company Limited during a facility tour for summit delegates. Company officials said the site hosts an estimated 94.8 million tonnes of total mineral resources, including lithium-bearing ore and granitic rock, with verified spodumene grades at licensed Nigerian sites ranging between 2.66% and 5.96% Li₂O with some deposits recording concentrations of up to 13% Li₂O, well above the global commercial average of 1-2%. Steron said it has since also identified tantalite occurrences at the site and continues active exploration. Nigeria's Minister of Solid Minerals Development, Dele Alake, described the Kaduna find as a "world-class" mineral province containing high grade platinum group metals, gold, nickel, copper, lithium and rare earth elements, verified by the Nigerian Geological Survey Agency in collaboration with the discovering private operator. The lithium finds build on an already active Chinese processing footprint in Nigeria. Chinese firms including Jiuling Lithium and Canmax Technology have committed more than $1.3 billion to Nigerian lithium processing capacity since 2023. A $250 million lithium processing plant built by Jiuling and Canmax in Nasarawa state, with capacity to process 3 million tonnes of lithium ore annually, came online in July 2026. SMM View: The Abuja and Kaduna find extend Nigeria's lithium resource base beyond its established Nasarawa and Kogi pegmatite belts, reinforcing the country's position as a fast-growing West African lithium ore source with an unusually mature downstream processing footprint already backed by Chinese capital. Whether the new reserves convert to bankable, licensed production will hinge on further resource verification and offtake commitments, but the existing processing infrastructure lowers the barrier to bringing new Nigerian lithium ore to market compared with peers still lacking domestic conversion capacity.

On August 10, Chifeng Gold's share price rose, closing up 3.9% at 43.73 yuan per share as of the end of trading. In news developments: On August 8, Chifeng Gold issued an announcement regarding its controlled subsidiary suspending operations at the Mengkang Rare Earth Ore Project in Laos. The announcement stated: In response to and in strict compliance with policy requirements for rare earth resource development, and to earnestly fulfill corporate social responsibility, on August 7, 2026, the 9th Board of Directors of Chifeng Jilong Gold Mining Group Co., Ltd. at its 9th session reviewed and approved the "Proposal on the Controlled Subsidiary Suspending Operations at the Mengkang Rare Earth Ore Project in Laos," agreeing that its controlled subsidiary, Xiamen Chijin Xiamen Tungsten Metal Resources Co., Ltd., shall suspend operations at the Mengkang Rare Earth Ore Project located in Mengkang County, Xieng Khouang Province, Lao People's Democratic Republic. The project overview provided in Chifeng Gold's announcement showed: In 2022, the company formed a joint venture with Xiamen Tungsten Co., Ltd. ("Xiamen Tungsten") named Shanghai Chijin Xiamen Tungsten Metal Resources Co., Ltd. (the company held 51%, Xiamen Tungsten held 49%, now renamed "Xiamen Chijin Xiamen Tungsten Metal Resources Co., Ltd."), aiming to leverage the strengths of both parties to build a cooperation platform for rare earth resource development and to advance the implementation and growth of the company's rare earth resource development business in Laos. On March 4, 2024, the company's controlled subsidiary Chijin Xiamen Tungsten and its wholly owned subsidiary CHIXIA Laos Holdings Limited ("CHIXIA Laos"), along with China Investment (Properties) Co., Ltd. ("CIP") and its wholly owned subsidiary China Investment Mining (Laos) Sole Co., Ltd. (now renamed "Chixia Mining (Laos) Co., Ltd.", the "Target Company"), entered into an Equity Transfer Agreement. CHIXIA Laos acquired 90% equity of the Target Company held by CIP through cash and debt assumption. As of March 25, 2025, all parties had confirmed in writing that the transaction was completed. The Target Company primarily operates the Mengkang Rare Earth Ore Project. Apart from this project, Chijin Xiamen Tungsten and its controlled subsidiaries do not operate any other rare earth projects. Since completion, the project has been in the trial production stage. The retained resource volume of the Mengkang Rare Earth Ore is as follows: Regarding the suspension of operations at the Mengkang Rare Earth Ore Project by Chijin Xiamen Tungsten, Chifeng Gold's announcement stated: As the national rare earth resource policy system becomes increasingly comprehensive, Chijin Xiamen Tungsten will comprehensively review and optimize its relevant operations to ensure all business activities are conducted in compliance with laws and regulations. In response to and in strict compliance with policy requirements for rare earth resource development, and to earnestly fulfill corporate social responsibility, after prudent study and assessment, Chijin Xiamen Tungsten has decided to suspend operations at the Mengkang Rare Earth Ore Project. It will continue the renewal process for mining rights and certificates, closely monitor relevant policy changes, and actively seek solutions. The board of directors of the company has approved the suspension of operations at the Chijin Xiamen Tungsten's Mongkhon rare earth project in Laos and authorized management-designated personnel to handle related matters within the board's purview, including but not limited to asset disposal, personnel settlement, and debt restructuring. Should any related matters exceed the board's decision-making authority, a separate shareholders' meeting will be convened for deliberation. When discussing the impact on the company, Chifeng Gold stated: The Mongkhon rare earth project is still in the trial mining phase. In 2025, Chijin Xiamen Tungsten produced 998.56 mt of rare earth products, with a net loss attributable to Chifeng Gold of -54.0637 million yuan, representing an absolute value of 1.75% of Chifeng Gold's consolidated net profit attributable to parent company shareholders for 2025. In Q1 2026, the company produced 63.6 mt of rare earth products, with a net profit attributable to Chifeng Gold of 372,800 yuan, representing 0.04% of its consolidated net profit attributable to parent company shareholders for Q1 2026. The suspension of operations is expected to have a relatively small overall impact on the company's operating performance. Specific details are subject to the company's audited financial reports. Currently, it remains uncertain when the project will resume operations, and the company will continue to monitor relevant policy changes and subsequent project developments. The company's main operations, such as gold and copper cathode, are performing well, with a sound and stable financial position and an asset-liability ratio at a relatively low industry level, providing a solid guarantee against various force majeure events. The company will actively respond and make its best effort to mitigate the adverse effects of the rare earth development suspension. Meanwhile, it will continue to focus on its main business, increase investment and accelerate project progress in resource exploration, technological transformation, and new expansion projects to lay a solid foundation for achieving its medium and long-term strategic goals. Chifeng Gold also announced on August 8: To ensure the production continuity and capacity utilization rate of its holding subsidiary, Lane Xang Minerals Limited Company (an indirectly held subsidiary operating the Sepon gold-copper mine in the Lao People's Democratic Republic, hereinafter referred to as "Laos," and referred to as "Lane Xang Minerals"), and to advance the development and mining of the Khanong project as planned, with primary ore mining commencing in Q2 2027 to ensure the designed capacity of 1.3 million mt/year reaches full production and to optimize the utilization rate of the newly commissioned 1.2 million mt/year mill, the company, following multiple rounds of tenders and technical and commercial evaluations, intends for Lane Xang Minerals to sign a Mine Development and Mining Services Contract as an independent contractor with China Railway 19th Bureau Group Laos Sole Co., Ltd. (hereinafter referred to as the "Contractor"). Under this contract, the Contractor will provide open-pit mining services (including ore mining and waste rock removal) and other mining services and activities related to Lane Xang Minerals' mining operations in Laos. Chifeng Gold stated that this contract constitutes a daily operational transaction, and its consideration makes it a disclosable transaction under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. On August 7, 2026, the company convened the ninth meeting of its ninth board of directors, which reviewed and approved the proposal regarding the signing of an overseas daily operational contract by the holding subsidiary, agreeing for Lane Xang Minerals to enter into the contract with the Contractor for an amount not exceeding $220,163,577 (excluding VAT), and authorized management to handle all subsequent contract-related matters based on project progress. This contract does not involve related-party transactions and, per the securities regulatory rules of the company's stock listing venues, this matter does not require shareholder meeting approval. Regarding the impact of the contract's execution on the listed company, Chifeng Gold announced that mining operations inherently involve various risks and uncertainties, including but not limited to geological changes, equipment failures, safety incidents, and cost fluctuations. Under the company's asset-light strategy, adopting an independent professional mining contractor model locks in unit mining costs for the contract period, effectively transferring cost risks related to fuel, labour, and consumables, which aligns with industry practice and allows the company to focus on ore processing and recovery rate optimization. To ensure smooth project progress, production continuity, and capacity utilization, the company invited qualified contractors to bid through a public tender process. After multiple rounds of technical and commercial reviews, this Contractor was ultimately selected as the bid winner due to its comprehensive strength and highly competitive bid. The Contractor's parent company is an experienced international mining services firm specializing in open-pit mine operations. Leveraging its experience and advanced knowledge, outsourcing part of the open-pit operations to the Contractor offers a more cost-effective solution for developing Lane Xang Minerals' Sepon gold-copper mine over the long term. The rates quoted by the Contractor were based on local materials, labour costs, and industry market price levels for the project. The contract price structure was determined through fair negotiation between the parties based on the project's specific scope, construction requirements, and market conditions, comprehensively considering factors such as project scale, quality standards, and mining operation pace. Based on these factors, the company believes the pricing adheres to general commercial practices, is fair and reasonable, aligns with the overall interests of the company and its shareholders, has a sufficient basis in commercial reasonableness, and represents the best interests of the company and its shareholders. (1) The above contract is a daily operational transaction. Its signing and smooth implementation will have a positive impact on the company's current and future performance, enhancing its ongoing profitability. (2) The transaction adheres to fair and equitable market pricing principles, without harming the interests of the company or its shareholders, and meets the company's actual operational development needs. (3) The contract's execution does not affect the company's business independence, nor will it create a dependency on the Contractor. In terms of performance, Chifeng Gold disclosed its H1 performance forecast on the evening of July 14, indicating that, based on preliminary financial estimates, the net profit attributable to shareholders of the publicly listed firm for H1 2026 is expected to be between 1.7 billion yuan and 1.78 billion yuan, an increase of 593.1 million yuan to 673.1 million yuan compared with 1,106.9 million yuan for the same period last year, up 54% to 61% YoY. The net profit attributable to shareholders of the publicly listed firm, excluding non-recurring gains and losses, is expected to be between 1.71 billion yuan and 1.79 billion yuan, an increase of 598.09 million yuan to 678.09 million yuan compared with 1,111.91 million yuan for the same period last year, up 54% to 61% YoY. For the primary reasons behind the performance changes for the period, Chifeng Gold explained that the substantial YoY increases in both net profit metrics were mainly driven by a significant rise in gold prices compared with the same period last year, with the average gold sales price up approximately 43% YoY, alongside the company's continuous efforts to strengthen production organization and operational management. Regarding its main business, Chifeng Gold introduced in its 2025 annual report that the company operates in the non-ferrous metal mining and beneficiation industry, with key products including precious metals like gold and non-ferrous metals like copper cathode. Its core main business is the mining, beneficiation, and sale of gold, while also engaging in multi-metal mining/beneficiation and comprehensive resource recovery. The company operates 6 gold mines and 1 multi-metal mine globally, with a business footprint covering China, Southeast Asia, and West Africa. Domestically, subsidiaries Jilong Mining, Wulong Mining, Huatai Mining, and Jintai Mining focus on gold mining and beneficiation, while Hanfeng Mining concentrates on zinc, lead, copper, and molybdenum multi-metal mining and beneficiation. Its holding subsidiary, Laos-based Lane Xang Minerals, focuses on gold mining/beneficiation and copper mining/smelting. Holding subsidiary Wassa in Ghana focuses on gold mining and beneficiation. Additionally, holding subsidiary Guangyuan Technology is engaged in comprehensive resource recovery, specializing in the dismantling of waste electrical and electronic products for environmental protection. A research report from Huaxin Securities on August 10 noted: On the data front, the US July ISM Manufacturing PMI was 55.6, versus a prior reading of 53.3 and expectations for 54. The US July ISM Services PMI was 54.1, versus a prior reading of 54 and expectations for 54.5. US initial jobless claims for the week ending August 1 were 199,000, versus a prior reading of 197,000 and expectations for 205,000. The US July unemployment rate was 4.1%, versus a prior reading of 4.2% and expectations for 4.2%. US nonfarm payrolls for July changed by -23,000, versus a prior reading of 57,000 and expectations for 80,000. A breakdown of the employment data shows that the private sector added a net 30,000 jobs, including a net gain of 25,000 in the goods-producing sector and a net gain of 5,000 in the service-providing sector, while the government sector had a net loss of 53,000 jobs. Overall, employment was mainly supported by the private sector, with the government sector declining. According to the CME FedWatch Tool, the probability of a 25bp rate hike by the US Fed in September 2026 fell to 43%, down from 67% a week ago (July 31). In summary, weakening expectations for US Fed interest rate hikes, combined with the PBOC’s continued gold purchases, which accelerated again in July, are expected to drive a continued rebound in gold prices. A Pacific Securities commentary on Chifeng Gold’s performance from May 7 indicated that multiple technological transformation projects, combined with scheduled maintenance, led to a YoY decline in gold production. In Q1 2026, the company's gold production was 2.98 mt, down 10.7% YoY and 21.7% QoQ, achieving 20% of the full-year target. The production decline was mainly due to these transformations and routine maintenance. Specifically, Jilong Mining's hoist upgrade from a single-rope to a multi-rope system and Wulong Mining's retrofitting of several blind shafts temporarily constrained ore extraction capacity. The Laos Sepon gold-copper mine's beneficiation plant underwent a large-scale annual maintenance shutdown, which, combined with a planned shutdown for one of its high-temperature autoclaves, led to a YoY decline in ore processing volume. A higher tax rate, coupled with the production decline, led to an increase in unit sales costs. Expense ratios were relatively stable, and the asset-liability ratio continued to decline. In Q1 2026, the company’s ROE was 6.9%, up 2.5 pct YoY; period expense ratio was 5.9%, down 0.6 pct YoY and up 0.1 pct QoQ. As of Q1 2026, the company’s asset-liability ratio was 29.4%, down 9.3 pct YoY and 4.5 pct QoQ. Risk warnings: price wild swings, cost side exceeding expectations, project progress falling short of expectations

According to Roll Call and other U.S. congressional media outlets on August 10, President Trump held a roundtable meeting with about 200 mining industry officials at the State Department in Washington, D.C., on August 7 local time to discuss ways to strengthen the U.S. critical minerals supply chain. During the meeting, Secretary Lutnick directly mentioned Korea Zinc’s USD 7.4 billion U.S. critical minerals smelter project as a key example of supply chain investment by the U.S. government, emphasizing the need for cooperation with allied countries.

The 15th Five-Year Plan officially kicks off in 2026, ushering in a critical period of transformation and upgrading for the conductor, cable, and electrical materials industry. Driven by the dual carbon strategy, new-type power system construction, energy transition, and AI technology empowerment, fields such as ultra-high voltage, new energy, computing centers, and NEVs are developing rapidly, effectively boosting demand for high-end copper and aluminum conductors and cable materials. Opportunities and challenges coexist: tight supply of copper and aluminum raw materials, significant price fluctuations, coupled with geopolitical trade and cost volatility, continue to climb operational and supply chain pressures on enterprises and intensify industry competition. Meanwhile, aluminum as an substitute for copper and new copper-aluminum composite materials are being adopted at an accelerated pace, while intelligent manufacturing and green, low-carbon technologies continue to drive industry quality improvement and upgrading. Against this backdrop, SMM will hold the November 5-6, 2026 in Yixing, Jiangsu , which will gather resources from the entire industry chain and establish a professional, efficient cooperation and exchange platform. SMM , in partnership with Shanghai Ruitong Copper International Trade Co., Ltd. , invites industry friends to attend the conference together, helping enterprises break through and boosting the industry's high-quality transformation. Click the to register immediately. We look forward to meeting you at the conference. Shanghai Ruitong Copper International Trade Co., Ltd. Shanghai Ruitong Copper International Trade Co., Ltd. is located in the Shanghai Nonferrous Metals Trading Center, specializing in bulk commodity trading and supply chain services primarily focused on nonferrous metals. It is one of the earliest companies in China to practice the integration of spot and futures trading. Growing from a startup to an industry benchmark with annual sales exceeding 100 billion yuan and serving over 2,000 manufacturing enterprises, it has carved out a distinctive path of high-quality development and is recognized by the Shanghai Municipal Government as a top-tier player. Corporate Competitiveness Research-Driven, Continuous Innovation The company's market share in copper cathode and aluminum trade volumes has consistently held a leading position in the industry. In 2025, annual sales of copper cathode reached 2.3 million mt, and together with other products (copper rod, aluminum rod, aluminum ingot, zinc ingot, nickel, silver, tin, lead, lithium carbonate, etc.) totaled 4 million mt. Deeply rooted in the industry for three decades, it is recognized annually by SMM and other professional organizations as a "Price Submitter" and "Quality Supplier," among other honors. Professional Team, Flexible Models Since its founding, the core team of Shanghai Ruitong Copper International Trade Co., Ltd. had already weathered multiple market cycles in the commodity sector. Faced with the industry changes brought by the Internet, the enterprise made two important decisions: first, adhering to the main business of non-ferrous metals and extending deeply into supply chain services; second, responding to the "Belt and Road" initiative and steadily expanding into the African market. Currently, the enterprise established nearly 30 projects in Africa, with over 3,000 Chinese and foreign employees, building momentum for expanding the international market. Robust Channels, Service First In line with the national planning guidance on accelerating the development of new-type international trade, the company has set up subsidiaries in the Shanghai Lin-gang Special Area, Singapore, and Hong Kong, actively laying out cross-border finance and trade businesses. Following the Belt and Road strategy, the company invests in Africa, and now its industries are spread across various sectors in Africa, including manufacturing, agriculture, warehousing and logistics, minerals, and recycled metals. Enterprise Vision The vigorous development of the bulk commodity industry is Ruitong's aspiration and mission. Ruitong is willing to join hands with peers to jointly build a more transparent, more standardized, and more efficient non-ferrous metal trading circle, promote the effective allocation of commodity resources in the real economy environment, and strive to enhance the competitiveness and industry discourse power of China's non-ferrous metal industry. Contact Information Business Director Xiong Li 138 1660 9892 Business Manager Xiong Xicheng 130 4415 6111 SMM Conference Contact Li Haiyang 135 2411 0203 lihaiyang@smm.cn Scan the QR code to attend immediately

[SMM Express] Zimplats shares have come under pressure as weakness in the platinum market weighs on investor sentiment towards the Zimbabwe-focused PGM producer. The decline reflects broader concerns over the impact of platinum-price movements on mining revenues and profitability. The pressure comes despite Zimplats continuing to advance its long-term investment programme in Zimbabwe, including mine development and processing capacity. The company’s latest disclosures show continued progress on expansion and local processing projects, highlighting its longer-term commitment to Zimbabwe’s PGM industry. For the broader PGM market, the development illustrates the sensitivity of producers to commodity-price volatility, with weaker prices potentially affecting cash flows, investment decisions and shareholder returns. At the same time, sustained investment in production and processing capacity could provide longer-term support if platinum-market conditions improve.

[Black Mass Imports: Policy Channel Open, Yet Market Circulation Still Faces Multiple Bottlenecks] On June 1, 2025, a joint announcement by the Ministry of Ecology and Environment, the Ministry of Industry and Information Technology, and the General Administration of Customs officially took effect, removing compliant waste lithium-ion battery powder from the Catalogue of Solid Wastes Forbidden from Import and subjecting it to import management as ordinary goods. This marked a long-awaited policy breakthrough for China’s lithium battery recycling industry—prior to this, the channel for raw materials from outside China had never been legally accessible, and the industry relied almost entirely on domestically retired power batteries and off-cuts from battery factories.

Hydnum Steel has secured a €150 million investment from COFIDES, Spain’s state-owned development finance institution, to build the Iberian Peninsula’s first eco-friendly steel plant in Puertollano, Ciudad Real. The plant will produce 2.7 million metric tons of steel sheet per year using EAF technology powered by renewable electricity and green hydrogen, thereby reducing emissions by up to 98% compared to conventional steelmaking processes using blast furnaces. This investment is part of a broader €1.5 billion financing package supported by Spain’s PERTE II decarbonization program. The program will help meet the demand for eco-friendly steel while reducing environmental impact.

On August 10, the share price of Qinghai Salt Lake Industry Co., Ltd. rose. As of the close on August 10, the stock was up 2.43% at 29.5 yuan per share. In terms of news: On August 7, the company stated on an interactive platform in response to investor inquiries that the company's magnesium resource business layout focuses on upstream resource development, and its subsidiary Teli Magnesium mainly engages in magnesium alloy die-casting. Currently, this segment is still in a cultivation and development stage, with limited business volume and low contribution to the company's overall revenue. According to the survey record disclosed by the company on its participation in a survey from August 5 to 7: 1. Q: Can the company's current industrial water supply meet the release of existing capacity? The company responded: At this stage, the company meets daily production needs through existing industrial water supply, salt lake water recycling, and water recovery systems. It has established a complete intelligent water metering network system and set the water resource management target of "total volume within limits, unit consumption within standards." For total volume control, the company defines red lines based on water permits and requires strict implementation by production workshops. In terms of product water quota, the company strengthens water management and introduces new water-saving technologies and processes, with current water indicators surpassing industry standard requirements. 2. Q: How is the company's Fantasy Salt Lake scenic area, as a new profit growth point, currently operating? The company responded: Its subsidiary Dream Travel Company, as the exclusive operator of the Qarhan scenic area, deeply cultivates local tourism resource development and operations management. Leveraging Qarhan's unique salt lake landscapes and differentiated tourism experiences, the scenic area's appeal continues to strengthen. In recent years, centered on visitor experience, the scenic area has coordinated the dual improvement of infrastructure and service capabilities. Visitor flow and operational data have maintained growth for three consecutive years, exceeding 1 million visits in 2024, reaching 1.43 million visits in 2025, and hitting a single-day peak of 30,000 visits on August 3, 2026, for the first time, up 43% from the highest daily reception of 2025. 3. Q: In the company's H1 earnings forecast, lithium carbonate inventory increased. What are the company's future sales plans, sales model for lithium carbonate, and customer distribution? The company responded: The company currently has total annual lithium salt capacity of about 98,000 mt. Product sales combine market demand and medium and long-term price trends for dynamic inventory management. On the production side, the company implements production scheduling management based on annual production targets, comprehensively considering ore stockpiling, brine quality, seasonal climate, and production support assurance. Currently, production and operations are stable and orderly, with smooth connectivity between production and sales. Market conditions for core potassium and lithium products are improving, with strong industry demand support. On the sales side, the company implements a "long-term contract lock-in + bi-weekly pricing + point-price sales" mechanism, paired with hedging to offset short-term price fluctuations. Going forward, the company will take multiple measures to stabilize production, expand markets, ensure continuous resource supply, strictly control energy costs, promote technological upgrades, and broaden sales channels, striving to complete annual production and sales tasks and drive steady growth in operational performance. The company's lithium carbonate sales are centered on a direct-supply model, with stable and reliable customer resources mainly supplying domestic cathode material producers, accompanied by long-term cooperative trading partners. The stable and smooth direct-supply channel continuously ensures product distribution and solidifies the company's operational foundation. 4. Q: How is the company's current Congo Republic potassium salt mine project progressing, and when can capacity be released? The company responded: While consolidating core potassium and lithium businesses, the company continues to deepen the potash fertilizer field and place high importance on the development of overseas potassium salt resources, firmly implementing the "going global" strategy for potash. It also accelerates cooperation with foreign potassium resource-rich regions, actively expanding external resource acquisition channels. Currently, the company's Congo Republic BMB potassium salt mining right development is in the detailed exploration stage, and the company is fully accelerating related project processes. Given that the project is still in its early stages, subsequent progress remains uncertain. The company will strictly comply with relevant laws, regulations, and regulatory requirements to timely fulfill information disclosure obligations for project developments meeting disclosure standards. Investors are advised to rationally view the project's prospects, make prudent decisions, and be aware of investment risks. 5. Q: What are the company's market value management measures and buyback plans? The company responded: As a publicly listed platform controlled by a central state-owned enterprise, the company strictly implements the relevant arrangements of the State-owned Assets Supervision and Administration Commission's "Several Opinions on Improving and Strengthening Market Value Management of Listed Companies Controlled by Central Enterprises," always placing market value management at the level of long-term strategy and core operational responsibility for coordinated advancement. Since last year, the actual controller has increased its holdings by 248 million shares, the company completed the cancellation of 140 million treasury shares, smoothly implemented the injection of high-quality assets from the Yiliping salt lake, and commissioned the 40,000 mt/year lithium salt project, effectively expanding asset volume and further consolidating core competitive advantages. At this stage, the company has built a value foundation by deeply cultivating its main business, improving quality and efficiency, and strengthening core competitiveness through technological innovation; established a regular investor communication mechanism, continuously deepened comprehensive engagement with the capital market, fully demonstrated development strategies and operational performance, and enhanced market recognition of the company's intrinsic value; simultaneously introduced a special "Market Value Management System," incorporating market value performance into management performance evaluations, achieving institutionalized, normalized, and long-term operation of market value management. Regarding share buybacks, a matter of general concern to investors, the company has always attached importance to it. Share buybacks, as a major capital matter, require prudent study and demonstration in accordance with laws and regulations, considering the company's operational reality, financial condition, and market trends. If an implementable plan is formed, the company will strictly perform relevant internal decision-making procedures and timely and fully disclose it in accordance with regulatory provisions, safeguarding the company's intrinsic value and the long-term interests of all shareholders in a compliant manner. Going forward, the company will continue to deeply cultivate core potassium and lithium businesses, consistently improve quality and efficiency, and enhance operational quality and intrinsic value; strictly adhere to fair and compliant information disclosure requirements, with major matters announced on statutory platforms such as Juchao Information Network; and, when statutory dividend conditions are met, coordinate factors such as cash flow and capital expenditures to study profit distribution arrangements, effectively rewarding all investors with operational results. 6. Q: What measures does the company have to ensure the sustainable development of Qarhan salt lake resources and its own sustainable development? The company responded: Salt lake resources are important national strategic resources, bearing the major mission of ensuring food security and supporting new energy development. Centering on comprehensive utilization and efficient development of salt lake resources, the company actively promotes technologies for continuous potassium resource security, deep processing of lithium resources, diversified high-value development of magnesium resources, efficient extraction of rare elements in brine, cross-industry salt lake integration, and intelligent production. Relying on the Qarhan salt lake, China's largest soluble potassium and magnesium salt deposit, the company takes "comprehensive resource utilization" as its core concept, pioneering the development of all types of associated resources in salt lake brine, including potassium, lithium, magnesium, sodium, etc., building a globally leading cascade utilization system for salt lake resources, achieving comprehensive utilization. First, strengthen salt lake resource exploration, ascertain resource reserves, revitalize existing resource stocks, and effectively strengthen salt lake mine geology and resource reserve management. Utilize advanced applicable green extraction technologies for salt lake resources, iterate dissolution mining technologies such as solid-to-liquid conversion, fully utilize low-grade solid potassium salt resources, focus on increasing reserve resources, and extend the service life of salt lake mines as much as possible. Adopt new technologies, apply new methods, build innovation platforms, enhance the value-added of salt lake products, and create a highland for salt lake industry development with strong innovation capacity, good clustering effects, and superior functional characteristics. Second, improve the management system for salt lake resource development and utilization, promote unified planning, unified development, and unified management of resources, address shortcomings in salt lake mine geology and resource management, scientifically regulate the intensity of salt lake resource development, and comprehensively improve the efficiency of resource development and utilization. 7. Q: The company has achieved significant results in cost reduction and efficiency improvement in recent years, with the full cost of lithium carbonate continuously declining. How does the company view its current cost moat? What specific plans are there to further consolidate cost advantages and enhance risk resistance capabilities in the future? The company responded: The company firmly establishes the concept of "accounting-based operations, lean management, and value creation," strengthens resource supply monitoring and production factor assurance, and builds an integrated operating system for monthly operational scheduling, comprehensive budget management, and performance evaluation benchmarking. Production tasks are successfully completed, and operational performance continues to improve. Leveraging the unique resource endowment of the salt lake, combined with the "adsorption + membrane" lithium extraction process, the company optimizes processes to achieve the best salt lake lithium extraction, building a significant low-energy-cost advantage. The lithium carbonate production costs at Yiliping salt lake and Qarhan salt lake are in the industry-leading tier, with strong risk and cycle resistance capabilities. Going forward, the company will continue to focus on the following: First, always take cost reduction and efficiency improvement as the core leverage of management, fully establish and achieve three-level coverage of the amoeba management system, and implement refined cost control across the entire chain of production, supply, sales, transportation, and operations. Second, persist in empowering industrial upgrades through technological innovation, driving deep integration of the innovation chain with the industry chain. Third, adhere to the synergistic efforts of top-level design and grassroots practices, advancing the modernization of corporate governance systems and governance capabilities in depth. Fourth, closely follow national strategic guidance, improve the overall development plan for the salt lake industry, and continuously strengthen capabilities to support food security and new energy. On July 29, the company stated on an interactive platform in response to investor inquiries that its current total annual lithium salt capacity is about 98,000 mt. Product sales combine market demand and medium and long-term price trends for dynamic inventory management. At this stage, inventory is normal turnover stockpiling after capacity release. The company maintains long-term cooperation with downstream clients, with sales flexibly allocated based on market conditions. Going forward, it will coordinate and optimize inventory turnover based on market conditions. On the performance front: On the evening of July 2, the company released its 2026 H1 earnings forecast, showing that it expects net profit attributable to shareholders of the publicly listed firm for H1 2026 to be between 6 billion yuan and 6.3 billion yuan, up 131.38% to 142.95% YoY. A research report from Huaxin Securities commenting on the company's 2025 annual report showed: The company released its 2025 annual performance report: In 2025, the company achieved total revenue of 15.501 billion yuan, up 2.43% YoY; and net profit attributable to shareholders of 8.476 billion yuan, up 81.76% YoY. Among this, in Q4 2025 alone, the company achieved revenue of 4.391 billion yuan, down 6.29% YoY but up 1.40% QoQ; and net profit of 3.973 billion yuan, up 161.05% YoY and up 99.87% QoQ. Investment highlights: Price recovery combined with cost optimization fully unleashed profitability elasticity. Expense optimization and ample cash flow. Solid resource reserves lay the foundation, with diversified layout opening growth space: The company's resource reserves are solid, and the new 40,000 mt lithium salt project was completed and put into trial production at the end of September 2025, integrating the self-developed "adsorption + membrane" lithium extraction process. Currently, the company's potash capacity reaches 5 million mt/year and lithium carbonate capacity reaches 40,000 mt/year, with scale advantages continuously consolidated. Looking ahead, the company will deeply integrate into the strategic layout of China Minmetals, fully implement the "three-step" strategy for China's salt lake industry, and focus on efficient and comprehensive development of salt lake resources. It is expected that by 2030, it will form capacities of 10 million mt/year potassium fertilizer, 200,000 mt/year lithium salt, and over 30,000 mt/year magnesium and magnesium-based materials. As a core enterprise in building China's world-class salt lake industry base, the company will fully benefit from resource integration and industrial upgrading, with broad growth space. Risk warnings: Risks such as fluctuations in potassium and lithium prices, project commissioning falling short of expectations, demand falling short of expectations, and changes in industry policies.

On August 10, the official website of the Hubei Provincial People's Government announced that the Yichang Chuneng Phase II 80GWh lithium battery industrial park project, with a daily cell production capacity exceeding 800,000 units, has commenced production. The project has a total investment of 22 billion yuan and took only 10 months from groundbreaking to production. Compared to Phase I, the production efficiency of a single line in Phase II has improved by over 60%, with daily cell production expected to exceed 800,000 units at full capacity. After commissioning, the total capacity of the Yichang base will rise to the top tier of global lithium battery production bases.