Statement of Support to the principles of Extractive Industry Transparency Initiative (EITI)

OTIC Control System for Purchasing and Traceability of Non-Conflict Materials

 OTIC has established supply chain control system for conflict-free raw materials for respecting human rights, avoiding conflict and furtherance of such conflict due to minerals resources, inhibiting infringe upon human rights and insecurity due to mining and purchase transaction of Ta mineral resources so a to maintain transparency of tantalum supply chain and OTIC's sustainable development. OTIC has took measures and conducted procedures as follows to ensure " Conflict Minerals" never purchased and used, moreover restricting conflict minerals flowing into OTIC supply chain.
1、Open and transparent purchase policy
  1-1 OTIC Statement on Raw Material Procurement was posted to the public on the website of OTIC.
  1-2  Management Regulations on Ta raw material procurement was issued to OTIC all departments at all levels. 
2、Controllable Process for raw material procurement
   OTIC has conducted a series of process control procedures including supplier and contract management, purchase, inspection, warehousing for incoming raw materials, inspection, entering and leaving warehouse for Ta semi-products and finished products,  marking and traceability, recycle and usage of Ta slag and scrap in OTIC, document control for sourcing. Implementation of the process control procedures as mentioned in above eight documents effectively restrict and inhibit "conflict minerals " flowing into OTIC’s supply chain. 
Traceable raw material control process
   Control procedure for marking and traceability was conducted to ensure all Ta raw materials in use is under control and traceable.
4、OTIC transport Control system and inspection method in  compliance with international standards and norms
  OTIC complies with international agreement for transport of dangerous goods including seven categories of hazardous substance meanwhile has conducted detection method and administrative regulation for radioactive materials.   
5、Purchasing and recycling of Ta scrap to save resources
   OTIC has conducted control procedure for purchasing and recycling of Ta & Nb scrap to make use of these resources.
Performing due diligence on raw material suppliers and maintaining continuity
   OTIC every year performs due diligence on raw material suppliers as a normal rule for audit and evaluation of their supply capability and compliance with EICC requirements and summarize  approved supplier list used as basis for sourcing from approved suppliers. By this way, OTIC spread out to all suppliers OECD Due Diligence Guidance for Supply Chains of Minerals from Conflict-Affected and High-Risk Areas as well as EICC-GeSI audit criterion and requirements on transparency of tantalum supply chain so as to ensure that all raw material suppliers act in accordance with EICC requirements and do not sell "conflict minerals " to OTIC and other parties. 
7、Wide public communication channel 
   7-1 OTIC performs due diligence on raw material suppliers and spreads out to all suppliers OECD Due Diligence Guidance for Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, reminding and supervising suppliers to act in accordance with EICC requirements and not to sell "conflict minerals " to the buyers.
   7-2 OTIC made discussions with the customers through attending the meetings held by OECD or OECD/EICC or EICC-GeSI for jointly studying and understanding of OECD Due Diligence Guidance for Supply Chains of Minerals from Conflict-Affected and High-Risk Areas as well as EICC-GeSI audit criterion and requirements on transparency of tantalum supply chain. 
   7-3 OTIC spreads out to social public OECD Due Diligence Guidance for Supply Chains of Minerals from Conflict-Affected and High-Risk Areas as well as EICC-GeSI audit criterion and requirements on transparency of tantalum supply chain by means of network, magazines.
8、Training OTIC's employees in various forms 
  OTIC performs training of all employees including high officers to make them complete understanding of OECD Due Diligence Guidance for Supply Chains of Minerals from Conflict-Affected and High-Risk Areas as well as EICC-GeSI audit criterion and requirements on transparency of tantalum supply chain by means of concentrated training, network, magazine, internal newspaper, office automation (OA) system and show board.
9、Actively fulfill social duty to build up a good vision of OTIC as  a responsible and lawfully operated listed company
   OTIC always closely combines economic development of enterprise with execution of social responsibility and fully fulfill the social duty at the premise of lawful and ethical operation through carrying out such activities as technical innovation, production safety, protecting the legitimate rights and interests of OTIC's employees, environmental protection, saving energy and reducing pollutants discharge, participation in social welfare. OTIC Social Responsibility Report is released to the public yearly.