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Huayou ESG Series Report (Part Three): With great power comes great responsibility

2023/08/21 15:59
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In the realm of honor, one stands as a friend to neighbors and kin,


Yet the pinnacle of honor lies in dedicating oneself to the nation, its people, and humanity at large.


For the Huayou team,


"With great power comes great responsibility."


This is a phrase frequently voiced by Chairman Chen Xuehua.

▲ A glimpse into the ore-dressing facility at Congo Dongfang International Mining SARL (CDM) in the Democratic Republic of Congo.


Consistently, Huayou has steadfastly prioritized the social responsibilities of its enterprise and supply chain, while unwaveringly adhering to the investment philosophy of "Wherever we invest, we must contribute to the local economy and society." In the Democratic Republic of Congo and Zimbabwe, Huayou has paid lots of taxes and has provided jobs, fostering both local economic growth and social development. The company actively equips its employees with protective gear to ensure their work safety, invests in nurturing the skills of local workforce, and actively propels their professional advancement. Initiatives such as family visits and free medical services underline the company's genuine concern for the well-being of its local staffs. Furthermore, Huayou is committed to facilitating infrastructure development that elevates foundational service capacities. Additionally, it demonstrates its dedication to community welfare by championing philanthropic initiatives through financial support and sponsorship of diverse charitable projects.


The act of sharing the benefits of development serves as a profound testament to the responsibilities shouldered by a China’s top 500 multinational enterprise.


"Through collaborations with local universities to facilitate the overseas education of exceptional students, conducting initiatives such as well-digging to ensure water supply, building bridges, paving road, sanitation facilities, and offering free agricultural knowledge and resources to the community... Every effort, every project not only communicates our integrity and sincerity to the local government, society, people, and employees but also showcases the positive image of a Chinese enterprise and enriches the essence of Sino-African friendship."


"In our interactions with local government, society, people, and employees, we unfailingly uphold a spirit of honesty and sincerity, recognizing that excelling in corporate production and operations is the most robust backing for advancing local social development."


In the book "Huayou Culture Case Stories: The Aspiring Huayou People in the Power of Dreams," Group President Chen Hongliang affectionately reflects.


In the Democratic Republic of Congo, Huayou Cobalt established an ESG and Sustainable Development Department, spearheaded farm development, facilitated school construction, and played an active role in community infrastructure development, setting a benchmark within the local business landscape.


On April 20th this year, CDM launched a 3-day philanthropic educational assistance initiative, reaching out to the neighboring communities of Kawama, Kamatete, Kasapa, and Kashimpala. "We contributed supplies valued at nearly $10,000 to 8 primary and secondary schools."  Jin Yanhong said, the Social Responsibility Specialist at ESG and Sustainable Development of Huayou's African Regional Management Headquarters.

▲ In the Democratic Republic of Congo, Huayou donated desks and chairs to the Rukuni Orphanage Center.


A student named KASOLE JOSÉ articulated, "What you've brought us goes beyond mere material assistance; it serves as a source of spiritual inspiration." Another student, KABEYA KATSHINGA, conveyed their gratitude, stating, "CDM embodies responsibility as a corporation, achieving commendable outcomes in community endeavors."



On the eve of International Children's Day, May 31st, representatives from CDM visited the Lukuni Welfare Center, offering a supply of food, learning materials, and essential items. The welfare center shelters numerous homeless children from broken families.


修女Marguerite KAFIMI是福利院的负责人。她毫不掩饰地称赞CDM公司的这一公益善举:我们赞扬CDM公司通过及时的物资援助支持我们,积极响应政府帮助儿童的公益号召。

Sister Marguerite KAFIMI who is responsible for the welfare center, wholeheartedly praised CDM's benevolent act, affirming, "We laud CDM for promptly assisting us with essential materials and actively responding to the government's call for child welfare."

▲ As Children's Day approached, CDM generously provided an array of food, learning materials, and essential items to the Rukuni Welfare Center.



Over the past three years, CDM has extended multiple rounds of aid to enhance learning conditions and the living environment for the children at the Lukuni Welfare Center. In early 2021, CDM donated desks and chairs and installed a power line for electricity, significantly improving the children's study and living conditions. In August 2021, CDM donated funds for and constructed a solar-powered well, ensuring that during the extended dry season, the children no longer need to endure scorching sun and arduous journeys to find water. Additionally, this initiative addresses the issue of unclean water sources and resulting health concerns.


Taking ESG initiatives before project starts


Prospect Lithium Zimbabwe (PLZ), a venture fully acquired by Huayou Cobalt in April 2022, shines as a significant undertaking. Central to PLZ's portfolio is the Arcadia Lithium Project, a cornerstone asset boasting an annual ore processing capacity of 4.5 million tons. Serving as the company's most substantial individual investment in Africa, this project provides crucial strategic support for establishing an integrated supply chain for new energy lithium battery materials.

▲ PLZ undertaking road renovations in the local Goromonzi area.


Since the inception of the Arcadia Lithium Project in April 2022, PLZ has been at the forefront of sharing the rewards of its corporate growth with the broader community. Through tangible efforts, it pays back society and fosters sustainable value with a strong sense of responsibility. It has wholeheartedly embraced the principles of readiness, capability, and adeptness in shouldering responsibilities.


With the Zimbabwean education department updating textbooks, many students from underprivileged backgrounds grappled with affording the new materials. Responding to this, PLZ conducted comprehensive on-site assessments and intervened, generously supplying 5,500 textbooks to five nearby schools.


Amid the COVID-19 pandemic, local schools faced the challenge of furnishing individual desks for each student to prevent cross-infection. Regrettably, financial limitations posed obstacles. The schools sought supports from PLZ, which promptly procured 400 sets of desks and chairs for these five institutions.

▲ In Zimbabwe, Huayou constructed dormitories for teachers at Vhuta Primary School.


Upon learning about the urgent need to improve the existing conditions at Vhuta Primary School, PLZ took proactive steps by investing $157,100 to construct two teacher apartments and two student classrooms. Additionally, they upgraded four existing classrooms. With these enhanced facilities, the school experienced a significant uptick in enrollment and graduation rates, resulting in the student population growing from the original 300 to over 460.


This compassionate initiative earned unanimous praise from the local government, community members, school staffs, students, and parents. Eminent figures, including Members of Parliament from the Mashonaland East province, as well as chiefs and councilors from the Goromonzi area, attended the official handover ceremony where PLZ donated the classrooms and teacher apartments. Their recognition underscored the high esteem in which PLZ's efforts were held.


The community where PLZ operates is approximately an hour's drive away from the nearest police station, which poses consistent challenges to community safety. To address this concern and bolster community security, PLZ erected a police post, complete with a water well and solar power equipment. This initiative contributed to creating a safer, more harmonious, and stable community environment.


Furthermore, PLZ installed a water well to facilitate water access for the Kubatsirana Clinic.

▲ On April 18th, Zimbabwe's Independence Day celebration took place in Goromonzi City, Mashonaland East Province. Led by General Manager Zhu Haijun, a delegation from PLZ participated in the event, providing substantial material support, including trash bins and reflective vests for staff members.


May 25th marks Africa's most significant holiday – "Africa Day". On this occasion, a team of 16 from PLZ's ESG and Sustainable Development Department, led by Director Yu Long, engaged in cultural exchanges with teachers and students at Chinyika Primary School in Mashonaland East Province. They brought with them distinctive Chinese cultural items, such as Chinese knots, peace buttons, chopsticks, fans, couplets, paper cutting, scented sachets, and rice dumplings.


Mr. Mutema, the school's principal, delivered an impassioned speech, praising PLZ for its commitment to community responsibility and educational support. He regarded them as ambassadors representing Sino-African friendship and fostering cultural exchanges between China and Zimbabwe.

▲ PLZ supports local farmers' festivals.


Since 2022, in Zimbabwe, Huayou Cobalt has made substantial contributions across various aspects of the local community. These contributions include road and bridge construction, employment promotion, educational support, security assurance, community assistance, and infrastructure development. These endeavors encompass upgrading roads and bridges, constructing schools, donating learning materials, establishing police stations, and providing water wells for community clinics. The total expenditure for these initiatives has reached $1.76 million.


35 projects in 5 years: Huayou demonstrates its willingness and capability to shoulder responsibilities


By the conclusion of 2022, representatives from PLZ's ESG and Sustainable Development Department engaged in face to face dialogues with representatives from six neighboring stakeholder villages to gather insights into community development needs. A total of 22 projects were compiled. Following six rounds of on-site assessments, verifications, and extensive deliberations, 16 projects were meticulously chosen and finalized to form PLZ's philanthropic roadmap for the year 2023.


In 2022, both CDM and MIKAS signed "Social Responsibility Agreements" with surrounding communities. These agreements encompass a commitment to invest in and establish a comprehensive set of 35 projects within local communities over the forthcoming five years. These projects span a range of areas including community infrastructure, electricity provision, water accessibility, education, healthcare, environmental conservation, agriculture, and vocational training. This concerted endeavor is poised to notably enhance the quality of life for local inhabitants and uplift their well-being.


"It can be asserted that Huayou Cobalt's ESG strategy is intricately aligned with its business strategy. ESG is an innate component of our operations, harmonizing seamlessly with business development, and mutually propelling each other," affirmed Su Dan, Vice General Manager and Head of the ESG and Sustainable Development Department at Huayou's African Regional Management Headquarters.


Across the vast expanse of the African continent, far from the shores of China, Huayou's ESG initiatives flourish akin to the elegance of falme lily and magnolia blossoms. They sway gracefully in the wind, radiating beauty and poise. They also resemble clusters of flames, igniting hope, emanating warmth, and nurturing friendships.

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