Jiangxi Ketai Advanced Material Co., Ltd. is a professional manufacturer of high-purity tin ingots.

According to Section 1502 of the Dodd Frank Wall Street Reform and Consumer Protection Act, which came into force on July 21, 2010, "conflict minerals" include cassiterite and its derivatives, as well as two other minerals and gold. The company supports the goal of this bill, has never contacted the conflict mining industry in the eastern provinces of the Democratic Republic of the Congo, and will recognize the relevant disclosure requirements of this law for companies listed on the American Stock Exchange.

In the procurement process, we require the supplier to promise that the materials provided by it should be produced in non conflict areas, otherwise, we will not purchase.

The Organization for Economic Cooperation and Development (OECD) and the United Nations (UN) have issued generally similar guidelines to conduct due diligence on companies that purchase minerals from conflict areas and high-risk areas. The guidelines issued by the UN explicitly refer to the Democratic Republic of the Congo. The guidelines encourage relevant companies to make good use of OECD guidelines when establishing their due diligence procedures, and advocate increasing policy flexibility while taking charge of procurement so that trade can continue.

We have evaluated our suppliers in accordance with the "Red Flag" standard of the OECD Guidelines and believe that no further evaluation is required. The company does not import tin ore from DRC or neighboring countries.

We are promoting the conflict free refinery planning and audit process to ensure that the sources of tin ingots and products have no connection with the conflict areas.

Actions of relevant companies and associations

Although we do not import cassiterite from the DRC or neighboring countries, we can ensure that the company's internal personnel, smelter managers, and purchasers understand the "conflict minerals" law of the United States and the "red flag" standard of the OECD guidelines. We also let our suppliers know about relevant standards and included relevant texts in the supply contract.

We also inform our consumers of this policy through other channels (such as the company's website).

The company has never bought, nor has it bought, cassiterite produced in Congo (DRC) or neighboring countries in the future, because it does not belong to our business model. We fully support the iTSCi program.

We note that the iTSCi plan refers to the membership section of the OECD Guidelines and supports the recommendations of the OECD, especially in Appendix 2, "Model Supply Chain Policies for Responsible Global Supply Chains". In the future, we will purchase cassiterite from Congo (DRC) or neighboring countries through the iTSCi system, while complying with Appendix 2 of the OECD Guidelines.

As a representative of member companies, the International Tin Institute has been a major participant in the multi stakeholder working group of OECD since December 2009 and participated in the work of the guidelines document.

The International Tin Research Institute has a memorandum of understanding and works closely with the governments of the Republic of the Congo, Rwanda, Burundi and ICGLR (the international conference of the Great Lakes region), all of which have recognized the applicability of the iTSCi due diligence system.

The International Tin Institute has also discussed with relevant offices of the United States Congress, participated in the round table hosted by the Securities and Exchange Commission of the United States, and is consulting on a possible EU "conflict minerals" strategy.

Since the beginning of 2009, the International Tin Research Institute has also supported and participated in the work of the Global Electronic Sustainable Development Initiative (GeSI) and the Electronic Industry Citizenship Alliance (EICC) on behalf of member enterprises, and provided suggestions to improve the Conflict Free Smelter (CFS) program.

Through these efforts and close cooperation with governments and non-governmental organizations, the company, as a member of the tin production industry, aims to promote the realization of the following two goals, although it has not directly participated in the purchase of cassiterite from the DRC:

1. Try to avoid mining transactions that directly or indirectly provide financial income from armed groups in the DRC or other neighboring countries;

2. Facilitate the entry of legal minerals from the region into the global supply chain, thereby supporting the regional economy and local communities that depend on this trade.

We recognize the implementation of the strict review framework, such as the outline of the OECD guidelines, which takes some time and challenges many mechanisms to promote transparency in regional procurement, such as the developed iTSCi plan. We also recognize that the strict approval framework is likely to continue to evolve and develop, especially after the completion of the SEC rules.

The intention of the supply chain should be to promote and promote the improvement of governance, peace and stability, respect for human rights, economic development and people's livelihood in the Democratic Republic of the Congo and neighboring countries.

However, as recently reported, the leading sustainability and advocacy group claimed that "the international demand for Congolese minerals is very low at present. This downturn stems from the strict interpretation of the requirements of the Dodd Frank Act by some industry participants. It has a serious impact on miners and their families. All stakeholders should work to end the conflict, alleviate suffering and build a peaceful and prosperous Congo."

Only when trade continues can the framework and mechanism of due diligence be developed. We urge all participants in the supply chain to be aware of the potential negative impact of their respective purchase behavior, assist the tin production industry, and work together to create a sustainable solution for tin ore production in the Democratic Republic of the Congo and neighboring countries.