In February 2017, Pengxin Mining underwentmajor asset restructuring and proposed to acquire a 74 percent stake in CAPM,controlled by the big shareholder. After this transaction, the company hasadded new gold business. With increasing scale of non-ferrous metal reserves,it will further increase output of non-ferrous metal in the long run, whichhelps to reduce costs and enhance long-term competitiveness. In February 2017,the company started the merger and reorganization of Orkney gold mine and beganto enter the gold field. In March 2017, it made subscription to 16.17% equityof CleanTeq, an Australian listed company and began to enter thenickel-cobalt-scandium rare metal field. In March 2018, Orkney reorganization project was approved by the Securities Regulatory Commission and digged the first barrel of gold ore on June 29, 2018. This series of actions further enriched the mineralindustry’ layout in the field of non-ferrous metals. In the future, the miningdivision, as the company's industrial foundation, will do more to strengthenthe foundation for the company to become a "leading global provider ofintegrated resources ".

Orkney Gold Mine is located in the Witwatersrand basin of South Africa, covering an area of 93.17 square kilometers. Witwatersrand basin is the most famous gold-producing area in the world, accounting for about 50 percent of the world's total gold output. Orkney Gold Mining has a long exploration history and its gold reserves are considerable. According to the report of Minxcon Co., a mining and exploration consulting institute, the ore grade of Orkney gold deposit is high and the average grade is more than 7 g / ton, which belongs to high grade mineral deposit, and has a good development foundation and economic benefit prospect. At present, it is estimated that the gold reserves of the Orkney Gold Mine are as high as 501.74. tons. In view of the geological characteristics of ore bodies in this area, the resources value of the Orkney Gold Mine will be further enhanced.