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Statement of the company’s procurement policy on conflict free minerals

     Conflict minerals mean the metal minerals such as gold, tantalum, tungsten, cobalt and tin from the Democratic Republic of Congo non-governmental organizations or non- military factions. The illegal mining profits obtained by the relevant local military groups are stolen from the citizens, and resulted in human rights violations and environmental degradation in the eastern Democratic Republic of the Congo.

      In addition to the Democratic Republic of the Congo, mineral products in areas that do not meet the No-conflict Minerals Rules also include minerals recognized by the United Nations Security Council, such as Rwanda, Uganda, Burundi, Tanzania and Kenya, from the Congo mineral vein.      Grandmetals strictly abides by the code of conduct for the carbide industry and fulfills its social responsibility obligations. Grandmetals requires all suppliers to purchase from recognized non-conflict smelters (which have passed the "No-conflict smelter project" or other equivalent independent third party qualified smelters,) to ensure that the minerals used in raw materials provided to all customers are not from the conflict area.