Operational Risks

Factors that influence this risk include:

• Unexpected geological and geotechnical conditions;
• The possibility of various kinds of operational accidents;
• Environmental damage including pollution of metal waste, pollution and various materials
  other hazards to rivers or clean water sources around the mine site;
• natural events, such as seismic activity, forest fires, floods, weather changes; and illegal mining activities;
• Inability to comply with applicable laws and regulations; and
• Social conflicts from surrounding communities as a result of inadequate pre-construction / preoperational studies.

The occurrence of one or more of the above conditions will result in an accident risk which can result in death, injury and production loss, which may have an impact on mine closure and expected loss of income.

Among the risk mitigation programs that have been carried out by the Company are conducting necessary studies, compiling SOPs for each activity and reviewing its implementation, conducting integrated community development activities, and monitoring compliance with strict compliance with regulations.