Hainan Mining outsources Shilu Iron Mine production for safety

Hainan Mining Company Limited will entrust the overall safe production of its Shilu Iron Mine's northern zone 1 underground mining area to Hunan Lienshao Construction Engineering (Group) Co., Ltd. for three years, commencing January 1, 2026, and concluding December 31, 2028. The estimated cost for this entrusted management is approximately RMB 818 million (inclusive of tax). This move aligns with national policy directives to enhance mine safety.

The entrusted scope encompasses development engineering, ore recovery, and hoisting and auxiliary systems. Estimated project volumes include 50,000 meters of development engineering and 27,000 cubic meters of support engineering, with an anticipated 11.2 million tonnes of ore recovery during the contract period. The development engineering cost is approximately RMB 310.66 million, while ore recovery, hoisting, and auxiliary systems are estimated at RMB 507.36 million, both inclusive of 13% VAT.

The board of directors approved this resolution on December 12, 2025. While expected to stabilize the iron ore business and reduce production costs, the transition may cause temporary production instability in 2026.