EX-1.01 2 d402986dex101.htm EX-1.01 EX-1.01

Exhibit 1.01

EXHIBIT 1.01 – CONFLICT MINERALS REPORT

China Mobile Limited

Conflict Minerals Report

For The Year Ended December 31, 2016

This Conflict Minerals Report for China Mobile Limited (together with its consolidated subsidiaries, “China Mobile,” “we,” or “our”) is provided in accordance with Rule 13p-1 under the Securities Exchange Act of 1934, as amended (“Rule 13p-1”), for the reporting period from January 1 to December 31, 2016 (the “Reporting Period”).

 

I. Background

 

  A. Identification of Products Containing Conflict Minerals

Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules promulgated by the United States Securities and Exchange Commission (“SEC”) thereunder (collectively, the “Conflict Minerals Rule”) impose disclosure and due diligence requirements on SEC-reporting issuers that manufacture or contract to manufacture products that contain “conflict minerals” that are necessary to the functionality or production of those products. Conflict minerals are defined under the Conflict Minerals Rule to include tin, tantalum, tungsten and gold.

China Mobile is a telecommunications services provider, operating mainly in the People’s Republic of China. In its ordinary course of business, China Mobile and its subsidiaries engage in the sale of certain telecommunications equipment and terminals (“Products”). No Products are manufactured by China Mobile, but some Products are contracted by China Mobile Group Device Company Limited (“China Mobile Device”), China Mobile IoT Company Limited (“China Mobile IoT”) and China Mobile (Hangzhou) Information Technology Co., Ltd. (“Hangzhou R&D”), Government and Enterprise Service Company (“G&E”) and MIGU Company Limited (“MIGU”), all of which are our wholly-owned subsidiaries, together, “Device Subsidiaries,” to be manufactured by third parties. See “Product Description.” China Mobile has determined that “conflict minerals” (also referred to herein as “3TG”) are necessary to the functionality or production of certain Products contracted by China Mobile to be manufactured by third parties on or after January 1, 2016.

 

  B. Reasonable Country of Origin Inquiry

China Mobile has conducted an inquiry that was designed to determine whether any of the 3TG in Products originated in the Democratic Republic of the Congo (the “DRC”) or an adjoining country as defined in the instructions to Form SD (collectively together with the DRC, the “Covered Countries”) or is from recycled or scrap sources. If, based on such inquiry, China Mobile knows or has reason to believe that any of the necessary conflict minerals contained in Products originated or may have originated in a Covered Country, and knows or has reason to believe that those necessary conflict minerals may not be solely from recycled or scrap sources, China Mobile will conduct due diligence to determine if the necessary conflict minerals contained in those Products did or did not directly or indirectly finance or benefit armed groups in the Covered Countries. Products which do not contain necessary conflict minerals that directly or indirectly finance or benefit armed groups in the Covered Countries are considered “DRC conflict free” by China Mobile after conducting its due diligence. As China Mobile is a downstream supplier of finished products and does not purchase from, and has no established commercial relationships with, smelters or refiners of conflict minerals, China Mobile’s reasonable country of origin inquiry (“RCOI”) focused on its direct suppliers. China Mobile was able to identify all of its direct suppliers of Products containing 3TG that have been contracted by China Mobile to be manufactured by third parties. There were 16 such direct suppliers during the Reporting Period.

 

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For the RCOI survey, China Mobile adopted the Conflict Minerals Reporting Template (the “Conflict Minerals Reporting Template”) published by the Conflict-Free Sourcing Initiative (“CFSI”). China Mobile sent the template to the 16 identified direct suppliers and received responses from all of them. China Mobile further compared the names of the smelters and refiners identified in such responses against the CFSI Smelter Reference List and the list of smelters that have received a “conflict free” designation from the Conflict Free Smelter Program (“CFSP”) of CFSI (“CFSP-compliant Smelter List”) to determine whether any of the conflict minerals might originate in a Covered Country. From the result of the RCOI survey, we did not obtain knowledge that any conflict minerals used in Products originated in a Covered Country and are not from recycled or scrap sources, but there was a risk that conflict minerals used in Products may have originated in a Covered Country and that they may not be from recycled or scrap sources. Accordingly, as required by Item 1.01(c) of Form SD, we conducted due diligence on the source and chain of custody of the conflict minerals contained in Products supplied to us by our direct suppliers for the Reporting Period.

 

II. Due Diligence

 

  A. Design of Due Diligence

China Mobile has undertaken measures to exercise due diligence on the source and chain of custody of the 3TG in Products. China Mobile’s conflict minerals due diligence measures are being designed in conformance with the Organisation for Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Third Edition (2016) (the “OECD Guidance”), an internationally recognized due diligence framework, as applicable for tin, tantalum, tungsten, gold and “downstream companies,” as such term is defined in the OECD Guidance.

The OECD Guidance sets forth the following five steps for establishing a responsible supply chain: (i) establishing strong company management systems, (ii) identifying and assessing risks in the supply chain, (iii) designing and implementing a strategy to respond to identified risks, (iv) carrying out independent third party audit of supply chain due diligence at identified points in the supply chain, and (v) reporting annually on supply chain due diligence.

 

  B. Due Diligence Measures

 

  (i) Establish strong company management systems:

 

  a. China Mobile published the Policy for a Responsible Supply Chain of Conflict Minerals and Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas in 2016, aiming at responsible procurement. The policy sets forth China Mobile’s goal to procure and use materials free from conflict minerals originated from Covered Countries and to achieve such goal by conducting source-tracing supply chain inquiries and strengthening cooperation with suppliers. The guidelines lay out certain detailed steps and specific measures China Mobile is required to undertake to carry out conflict minerals due diligence.

 

  b. Since February 2016, the discipline, inspection and audit department of China Mobile Device has become a member of the conflict minerals working group and led the relevant due diligence work in order to streamline the conflict minerals due diligence procedures. In addition, since February 2016, conflict minerals research briefings have become part of the regular agenda at the general managers’ meeting and the reports of briefings are submitted regularly for the review and approval by the management of China Mobile Device. China Mobile also established a special team for conflict minerals in March 2017 comprised of personnel from China Mobile’s Legal Department, procurement division and the Device Subsidiaries. As the lead department in charge of compliance management, the Legal Department formulated China Mobile’s compliance management planning in 2016 and required the relevant subsidiaries to initiate the process of establishing its conflict minerals compliance mechanism in accordance with the Conflict Minerals Rule as soon as practicable.

 

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  c. China Mobile gathers information using the CFSI Conflict Minerals Reporting Template sent to its direct suppliers to determine the chain of custody of 3TG contained in Products.

 

  d. The Device Subsidiaries communicated and will continue to communicate to their suppliers that China Mobile based on its policy does not purchase nor support use of conflict minerals originated in Covered Countries, and required its suppliers not to purchase conflict minerals originated in Covered Countries and to commit to extend such requirement to their suppliers. Moreover, China Mobile Device and Hangzhou R&D have incorporated a term on conflict minerals into their supplier contracts whereby the suppliers represent that their products and packaging do not contain any conflict minerals originated in any Covered Country. G&E, China Mobile IoT and MIGU intend to incorporate such term to their supplier contracts.

 

  e. China Mobile communicated with and educated China Mobile group companies and suppliers regarding the SEC conflict minerals disclosure requirements and China Mobile’s conflict minerals policy. China Mobile also communicated its guidelines for conflict minerals due diligence procedures to China Mobile group companies.

 

  (ii) Identify and assess risks in the supply chain:

 

  a. China Mobile Device is an entity engaging in the procurement and distribution of mobile telephones, tablets and other devices. China Mobile IoT is an entity that operates IoT network and OneNET, an IoT open platform, designs and develops IoT modules and chips, develops IoT solutions and featured IoT products such as Internet of vehicle, smart home devices and smart wearables. Hangzhou R&D is an entity that engages in developing network equipment as well as providing information technology support for mobile terminals, software and related services. G&E mainly engages in the sales of information technology products to, and providing end-to-end services for, corporate customers such as governmental agencies and large enterprises, and nationwide corporate product integration and promotion. MIGU is established for the provision, operation and service integration of digital content products, which includes music, video, reading, games and animation businesses. China Mobile has requested the direct suppliers from which the Device Subsidiaries procured any Product containing 3TG that have been contracted by China Mobile to be manufactured by third parties to respond to the supply chain survey.

 

  b. China Mobile adopted the Conflict Minerals Reporting Template published by CFSI for purposes of the supply chain survey. China Mobile followed up with direct suppliers to obtain complete responses to the supply chain survey, verified the collected responses, and inquired about any discrepancies in the response provided. The status of the supply chain survey and due diligence has been reported to China Mobile’s Legal Department, which is considering actions to mitigate the supply chain risks identified, such as those described in “– Risk Mitigation Steps China Mobile Will Take”. In assessing the risk to its supply chain, China Mobile concluded that because suppliers of certain Products containing 3TG provided incomplete information regarding metal origins and conflict-free sourcing, there was risk that the 3TG may have originated in the Covered Countries and may not have originated from recycled or scrap sources.

 

  (iii) Design and implement a strategy to respond to identified risks:

 

  a. In accordance with China Mobile’s guidelines for conflict minerals due diligence procedures, findings of the supply chain risk assessment are reported to the designated senior management of China Mobile.

 

-3-

  b. To evaluate and respond to identified risks, China Mobile relies on the suppliers’ responses to the Conflict Minerals Reporting Template, CFSI Smelter Reference List and the CFSP-compliant Smelter List. Since 2015, China Mobile has compared the names of the smelters and refiners identified in such responses against the CFSI Smelter Reference List and the CFSP-compliant Smelter List to identify the smelters and refiners that had not received a “conflict free” designation from CFSP and followed up with the suppliers to obtain further information on the identified smelters and refiners.

 

  c. Pursuant to its Policy for a Responsible Supply chain of Conflict Minerals and its guidelines for conflict minerals due diligence procedures, China Mobile plans to adopt a risk management plan combining a number of measures, such as temporarily suspending trade in order to achieve measurable risk mitigation, terminating its relationship with a supplier after risk mitigation attempts fail or where risk mitigation is not feasible, and terminating as soon as commercially practicable a procurement plan if China Mobile becomes aware of any procured material containing conflict minerals originated from Covered Countries.

 

  d. China Mobile has obtained an independent private sector audit of this report, in accordance with the Conflict Minerals Rule.

 

  (iv) Carry out independent third party audit of supply chain due diligence at identified points in the supply chain:

 

  a. As a downstream supplier of finished products, China Mobile has no direct commercial relationships with smelters. In addition, for production completed during the Reporting Period, China Mobile did not receive sufficient information from its direct suppliers regarding the identity of smelters from which the minerals were derived.

 

  b. China Mobile intends to participate in relevant industry groups to accumulate knowledge on and improve industry best practices on supply chain due diligence.

 

  (v) Report annually on supply chain due diligence:

 

  a. China Mobile is reporting annually on its supply chain due diligence by preparing this Conflict Minerals Report to disclose the description of the measures taken to determine the source and chain of custody of any of the necessary conflict minerals contained in China Mobile’s products, as well as the results of China Mobile’s due diligence. This Conflict Minerals Report is available on China Mobile’s corporate website (http://www.chinamobileltd.com/en/ir/sec.php). The information contained in such website is not a part of this Form SD.

 

  C. Risk Mitigation Steps China Mobile Will Take

The due diligence process discussed above is an ongoing process. At this time, China Mobile intends to take the following actions to improve the due diligence conducted to further mitigate any risk that conflict minerals in Products necessary to the functionality or production of Products could benefit or finance armed groups in the Covered Countries.

 

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  (i) China Mobile intends to participate in relevant industry groups to define and improve industry best practices and improve China Mobile’s influence and leverage over the supply chain in accordance with the OECD Guidance.

 

  (ii) China Mobile will continue to work with its direct suppliers and direct them to obtain responses from all lower tier suppliers subject to the RCOI survey, and to improve the content of the RCOI survey responses.

 

  (iii) China Mobile will communicate its policy regarding conflict minerals to its suppliers and will strive to incorporate such policy into future contract terms and specifications with its suppliers. China Mobile will also explain the procedures of its RCOI survey in the supplier meetings and request suppliers to cooperate with its effort to identify the source of the necessary conflict minerals.

 

III. Product Description

Based on the due diligence efforts as described above in this report, China Mobile has determined the following Products to be “DRC conflict free” for the Reporting Period:

 

Product/Model   Description
CM101   Set-Top Box
CM101s   Set-Top Box
CM101s-2   Set-Top Box
CM101s-3   Set-Top Box
CM101s-4   Set-Top Box
MG 100   Set-Top Box
MG101   Set-Top Box
C1   Smart Watch for Kids
CM110X   Gigabit-Capable Passive Optical Networks Units
CM111X   Gigabit-Capable Passive Optical Networks Units
CM112X   Gigabit-Capable Passive Optical Networks Units
CM113X   Gigabit-Capable Passive Optical Networks Units
CM114X   Gigabit-Capable Passive Optical Networks Units
CM115X   Gigabit-Capable Passive Optical Networks Units
R611   Smart Rear-View Mirror
P21   Low-Cost Video Conference Terminal
V21   Low-Cost Video Conference Terminal
M6311   Module
M8320   Module
YAO   Router
YU   Router
SHUN   Router

 

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The suppliers of the Products listed above have identified the smelters and refiners in the supply chain that are sources of the necessary conflict minerals for the Products listed above. All of these smelters and refiners have received a “conflict free” designation from CFSP, and as a result of this finding, China Mobile came to its reasonable determination that the Products listed above are DRC conflict free.

China Mobile is unable to determine the source of the conflict minerals used in the following Products:

 

Product/Model    Description
A1s    Mobile Phone
N2    Mobile Phone
A2    Mobile Phone
C21    High-Resolution Video Conference Terminal
CMIOT-DK-LD-A-01    Smart Road Lamp Control
CMIOT-JF-CR-A-01    Smart Access Control
CM112Z    Smart Access Control
ZG-GW-01    Smart Access Control
XCWS-D02    Terminal Device
DMU    Terminal Device
UNICORN    Demoboard

 

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China Mobile’s efforts to determine the mine or location of origin with the greatest possible specificity are part of its due diligence, as described above in this report. Based on the information provided by suppliers, China Mobile believes that the facilities used to process the necessary conflict minerals in Products include the smelters and refiners listed in Annex I below.

Based on the due diligence efforts as described above in this report, China Mobile was not able to obtain sufficient information to conclusively determine the countries of origin of the necessary conflict minerals in its 11 Products mentioned above or whether such necessary conflict minerals are from recycled or scrap sources. However, based on the information provided by suppliers, China Mobile believes that the countries of origin of the necessary conflict minerals contained in its products include the countries listed in Annex II below, as well as recycled and scrap sources.

 

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Annex I

 

METAL

   

SMELTER OR REFINER NAME

   

FACILITY
LOCATION

   

CONFLICT-
FREE STATUS1

Gold    Advanced Chemical Company    USA    Conflict-Free
Gold    Aida Chemical Industries Co., Ltd.    Japan    Conflict-Free
Gold    Allgemeine Gold-und Silberscheideanstalt A.G.    Germany    Conflict-Free
Gold    Almalyk Mining and Metallurgical Complex (AMMC)    Uzbekistan    Conflict-Free
Gold    AngloGold Ashanti Córrego do Sítio Mineração    Brazil    Conflict-Free
Gold    Argor-Heraeus S.A.    Switzerland    Conflict-Free
Gold    Asahi Pretec Corp.    Japan    Conflict-Free
Gold    Asahi Refining Canada Ltd.    Canada    Conflict-Free
Gold    Asahi Refining USA Inc.    USA    Conflict-Free
Gold    Asaka Riken Co., Ltd.    Japan    Conflict-Free
Gold    Atasay Kuyumculuk Sanayi Ve Ticaret A.S.    Turkey    Unknown
Gold    Aurubis AG    Germany    Conflict-Free
Gold    Bangko Sentral ng Pilipinas (Central Bank of the Philippines)    Philippines    Conflict-Free
Gold    Boliden AB    Sweden    Conflict-Free
Gold    Caridad    Mexico    Unknown
Gold    CCR Refinery - Glencore Canada Corporation    Canada    Conflict-Free
Gold    Cendres + Métaux S.A.    Switzerland    Unknown
Gold    C. Hafner GmbH + Co. KG    Germany    Conflict-Free
Gold    Chimet S.p.A.    Italy    Conflict-Free
Gold    Chugai Mining    Japan    Unknown
Gold    Daejin Indus Co., Ltd.    Republic of Korea    Conflict-Free
Gold    Daye Non-Ferrous Metals Mining Ltd.    China    Unknown
Gold    DSC (Do Sung Corporation)    Republic of Korea    Conflict-Free
Gold    DODUCO GmbH    Germany    Conflict-Free
Gold    Dowa    Japan    Conflict-Free
Gold    Eco-System Recycling Co., Ltd.    Japan    Conflict-Free
Gold    Elemetal Refining, LLC    USA    Conflict-Free
Gold    Great Wall Precious Metals Co., Ltd. of CBPM    China    Unknown
Gold    Guangdong Jinding Gold Limited    China    Unknown
Gold    Heimerle + Meule GmbH    Germany    Conflict-Free
Gold    Heraeus Ltd. Hong Kong    China    Conflict-Free
Gold    Heraeus Precious Metals GmbH & Co. KG    Germany    Conflict-Free
Gold    Hunan Chenzhou Mining Co., Ltd.    China    Unknown
Gold    Hwasung CJ Co., Ltd.    Republic of Korea    Unknown
Gold    Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd.    China    Conflict-Free
Gold    Ishifuku Metal Industry Co., Ltd.    Japan    Conflict-Free
Gold    Istanbul Gold Refinery    Turkey    Conflict-Free
Gold    Japan Mint    Japan    Conflict-Free
Gold    Jiangxi Copper Co., Ltd.    China    Conflict-Free
Gold    JSC Ekaterinburg Non-Ferrous Metal Processing Plant    Russian Federation    Conflict-Free

 

1  This categorization is based on the CFSP standards. All CFSP-compliant smelters or refiners are listed here as conflict-free.

 

-8-

METAL

   

SMELTER OR REFINER NAME

   

FACILITY
LOCATION

   

CONFLICT-
FREE STATUS

Gold    JSC Uralelectromed    Russian Federation    Conflict-Free
Gold    JX Nippon Mining & Metals Co., Ltd.    Japan    Conflict-Free
Gold    Kazzinc    Kazakhstan    Conflict-Free
Gold    Kennecott Utah Copper LLC    USA    Conflict-Free
Gold    Kojima Chemicals Co., Ltd.    Japan    Conflict-Free
Gold    Korea Metal Co., Ltd.    Republic of Korea    Unknown
Gold    Kyrgyzaltyn JSC    Kyrgyzstan    Conflict-Free
Gold    L’azurde Company For Jewelry    Saudi Arabia    Unknown
Gold    Lingbao Jinyuan Tonghui Refinery Co., Ltd.    China    Unknown
Gold    LS-NIKKO Copper Inc.    Republic of Korea    Conflict-Free
Gold    Luoyang Zijin Yinhui Gold Refinery Co., Ltd.    China    Unknown
Gold    Materion    USA    Conflict-Free
Gold    Matsuda Sangyo Co., Ltd.    Japan    Conflict-Free
Gold    Metalor Technologies (Singapore) Pte., Ltd.    Singapore    Conflict-Free
Gold    Metalor Technologies (Suzhou) Ltd.    China    Conflict-Free
Gold    Metalor Technologies (Hong Kong) Ltd.    China    Conflict-Free
Gold    Metalor Technologies S.A.    Switzerland    Conflict-Free
Gold    Metalor USA Refining Corporation    USA    Conflict-Free
Gold    Metalúrgica Met-Mex Peñoles S.A. De C.V.    Mexico    Conflict-Free
Gold    Mitsubishi Materials Corporation    Japan    Conflict-Free
Gold    Mitsui Mining and Smelting Co., Ltd.    Japan    Conflict-Free
Gold    Moscow Special Alloys Processing Plant    Russian Federation    Conflict-Free
Gold    Nadir Metal Rafineri San. Ve Tic. A.Ş.    Turkey    Conflict-Free
Gold    Navoi Mining and Metallurgical Combinat    Uzbekistan    Unknown
Gold    Nihon Material Co., Ltd.    Japan    Conflict-Free
Gold    Ohura Precious Metal Industry Co., Ltd.    Japan    Conflict-Free
Gold    OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastsvetmet)    Russian Federation    Conflict-Free
Gold    OJSC Novosibirsk Refinery    Russian Federation    Conflict-Free
Gold    PAMP S.A.    Switzerland    Conflict-Free
Gold    Prioksky Plant of Non-Ferrous Metals    Russian Federation    Conflict-Free
Gold    PT Aneka Tambang (Persero) Tbk    Indonesia    Conflict-Free
Gold    PX Précinox S.A.    Switzerland    Conflict-Free
Gold    Rand Refinery (Pty) Ltd.    South Africa    Conflict-Free
Gold    Republic Metals Corporation    USA    Conflict-Free
Gold    Royal Canadian Mint    Canada    Conflict-Free
Gold    SAMWON Metals Corp.   

Republic of Korea

    Unknown
Gold    Schone Edelmetaal B.V.    Netherlands    Conflict-Free
Gold    SEMPSA Joyería Platería S.A.    Spain    Conflict-Free
Gold    Shandong Zhaojin Gold & Silver Refinery Co., Ltd.    China    Conflict-Free
Gold    SOE Shyolkovsky Factory of Secondary Precious Metals    Russian Federation    Conflict-Free
Gold    So Accurate Group, Inc.    USA    Unknown
Gold    Solar Applied Materials Technology Corp.    Taiwan    Conflict-Free
Gold    Sumitomo Metal Mining Co., Ltd.    Japan    Conflict-Free

 

-9-

METAL

   

SMELTER OR REFINER NAME

   

FACILITY
LOCATION

   

CONFLICT-
FREE STATUS

Gold    Tanaka Kikinzoku Kogyo K.K.    Japan    Conflict-Free
Gold    The Refinery of Shandong Gold Mining Co., Ltd.    China    Conflict-Free
Gold    Tokuriki Honten Co., Ltd.    Japan    Conflict-Free
Gold    Tongling Nonferrous Metals Group Co., Ltd.    China    Unknown
Gold    Torecom    Republic of Korea    Conflict-Free
Gold    Umicore Brasil Ltda.    Brazil    Conflict-Free
Gold    Umicore Precious Metals Thailand    Thailand    Conflict-Free
Gold    Umicore S.A. Business Unit Precious Metals Refining    Belgium    Conflict-Free
Gold    United Precious Metal Refining, Inc.    USA    Conflict-Free
Gold    Valcambi S.A.    Switzerland    Conflict-Free
Gold    Western Australian Mint trading as The Perth Mint    Australia    Conflict-Free
Gold    Yamamoto Precious Metal Co., Ltd.    Japan    Conflict-Free
Gold    Yokohama Metal Co., Ltd.    Japan    Conflict-Free
Gold    Yunnan Copper Industry Co., Ltd.    China    Unknown
Gold    Zhongyuan Gold Smelter of Zhongjin Gold Corporation    China    Conflict-Free
Gold    Zijin Mining Group Co., Ltd. Gold Refinery    China    Unknown
Tin    Alpha    USA    Conflict-Free
Tin    An Vinh Joint Stock Mineral Processing Company    Vietnam    Unknown
Tin    China Tin Group Co., Ltd.    China    Conflict-Free
Tin    CNMC (Guangxi) PGMA Co., Ltd.    China    Unknown
Tin    Cooperativa Metalurgica de Rondônia Ltda.    Brazil    Conflict-Free
Tin    CV Serumpun Sebalai    Indonesia    Conflict-Free
Tin    CV United Smelting    Indonesia    Conflict-Free
Tin    CV Venus Inti Perkasa    Indonesia    Conflict-Free
Tin    Dowa    Japan    Conflict-Free
Tin    Elmet S.L.U.    Spain    Unknown
Tin    EM Vinto    Bolivia    Conflict-Free
Tin    Fenix Metals    Poland    Conflict-Free
Tin    Gejiu Non-Ferrous Metal Processing Co., Ltd.    China    Conflict-Free
Tin    Gejiu Yunxin Nonferrous Electrolysis Co., Ltd.    China    Unknown
Tin    Gejiu Zili Mining And Metallurgy Co., Ltd.    China    Unknown
Tin    Huichang Jinshunda Tin Co., Ltd.    China    Unknown
Tin    Jiangxi Ketai Advanced Material Co., Ltd.    China    Conflict-Free
Tin    Magnu’s Minerais Metais e Ligas Ltda.    Brazil    Conflict-Free
Tin    Malaysia Smelting Corporation (MSC)    Malaysia    Conflict-Free
Tin    Melt Metais e Ligas S.A.    Brazil    Conflict-Free
Tin    Metallo-Chimique N.V.    Belgium    Unknown
Tin    Mineração Taboca S.A.    Brazil    Conflict-Free
Tin    Minsur    Peru    Conflict-Free
Tin    Mitsubishi Materials Corporation    Japan    Conflict-Free
Tin    O.M. Manufacturing (Thailand) Co., Ltd.    Thailand    Conflict-Free
Tin    O.M. Manufacturing Philippines, Inc.    Philippines    Conflict-Free
Tin    Operaciones Metalurgical S.A.    Bolivia    Conflict-Free
Tin    PT Aries Kencana Sejahtera    Indonesia    Conflict-Free
Tin    PT Artha Cipta Langgeng    Indonesia    Conflict-Free
Tin    PT ATD Makmur Mandiri Jaya    Indonesia    Conflict-Free
Tin    PT Babel Inti Perkasa    Indonesia    Conflict-Free
Tin    PT Bangka Tin Industry    Indonesia    Conflict-Free
Tin    PT Belitung Industri Sejahtera    Indonesia    Conflict-Free

 

-10-

METAL

   

SMELTER OR REFINER NAME

   

FACILITY
LOCATION

   

CONFLICT-
FREE STATUS

Tin    PT Bukit Timah    Indonesia    Conflict-Free
Tin    PT DS Jaya Abadi    Indonesia    Conflict-Free
Tin    PT Eunindo Usaha Mandiri    Indonesia    Conflict-Free
Tin    PT Inti Stania Prima    Indonesia    Conflict-Free
Tin    PT Justindo    Indonesia    Conflict-Free
Tin    PT Karimun Mining    Indonesia    Conflict-Free
Tin    PT Mitra Stania Prima    Indonesia    Conflict-Free
Tin    PT Panca Mega Persada    Indonesia    Conflict-Free
Tin    PT Prima Timah Utama    Indonesia    Conflict-Free
Tin    PT Refined Bangka Tin    Indonesia    Conflict-Free
Tin    PT Sariwiguna Binasentosa    Indonesia    Conflict-Free
Tin    PT Stanindo Inti Perkasa    Indonesia    Conflict-Free
Tin    PT Timah (Persero) Tbk Kundur    Indonesia    Conflict-Free
Tin    PT Timah (Persero) Tbk Mentok    Indonesia    Conflict-Free
Tin    PT Tinindo Inter Nusa    Indonesia    Conflict-Free
Tin    PT Wahana Perkit Jaya    Indonesia    Unknown
Tin    Rui Da Hung    Taiwan    Conflict-Free
Tin    Soft Metais Ltda.    Brazil    Conflict-Free
Tin    Thaisarco    Thailand    Conflict-Free
Tin    White Solder Metalurgia e Mineração Ltda.    Brazil    Conflict-Free
Tin    Yunnan Chengfeng Non-ferrous Metals Co., Ltd.    China    Unknown
Tin    Yunnan Tin Company Limited    China    Conflict-Free
Tantalum    Changsha South Tantalum Niobium Co., Ltd.    China    Conflict-Free
Tantalum    Conghua Tantalum and Niobium Smeltry    China    Conflict-Free
Tantalum    Duoluoshan    China    Conflict-Free
Tantalum    Exotech Inc.    USA    Conflict-Free
Tantalum    F&X Electro-Materials Ltd.    China    Conflict-Free
Tantalum    Global Advanced Metals Aizu    Japan    Conflict-Free
Tantalum    Global Advanced Metals Boyertown    USA    Conflict-Free
Tantalum    Guangdong Zhiyuan New Material Co., Ltd.    China    Conflict-Free
Tantalum    H.C. Starck Co., Ltd.    Thailand    Conflict-Free
Tantalum    H.C. Starck GmbH Goslar    Germany    Unknown
Tantalum    H.C. Starck GmbH Laufenburg    Germany    Conflict-Free
Tantalum    H.C. Starck Hermsdorf GmbH    Germany    Conflict-Free
Tantalum    H.C. Starck Inc.    USA    Conflict-Free
Tantalum    H.C. Starck Ltd.    Japan    Conflict-Free
Tantalum    H.C. Starck Smelting GmbH & Co. KG    Germany    Conflict-Free
Tantalum    Hengyang King Xing Lifeng New Materials Co., Ltd.    China    Conflict-Free
Tantalum    Hi-Temp Specialty Metals, Inc.    USA    Conflict-Free
Tantalum    JiuJiang JinXin Nonferrous Metals Co., Ltd.    China    Conflict-Free
Tantalum    Jiujiang Tanbre Co., Ltd.    China    Unknown
Tantalum    KEMET Blue Metals    Mexico    Conflict-Free
Tantalum    KEMET Blue Powder    USA    Conflict-Free
Tantalum    King-Tan Tantalum Industry Ltd.    China    Conflict-Free
Tantalum    LSM Brasil S.A.    Brazil    Conflict-Free
Tantalum    Metallurgical Products India Pvt., Ltd.    India    Conflict-Free
Tantalum    Mineração Taboca S.A.    Brazil    Conflict-Free
Tantalum    Mitsui Mining & Smelting Co., Ltd.    Japan    Conflict-Free
Tantalum    Molycorp Silmet A.S.    Estonia    Unknown
Tantalum    Ningxia Orient Tantalum Industry Co., Ltd.    China    Conflict-Free
Tantalum    Plansee SE Liezen    Austria    Unknown
Tantalum    Plansee SE Reutte    Austria    Unknown

 

-11-

METAL

   

SMELTER OR REFINER NAME

   

FACILITY
LOCATION

   

CONFLICT-
FREE STATUS

Tantalum    QuantumClean    USA    Conflict-Free
Tantalum    RFH Tantalum Smeltry Co., Ltd.    China    Conflict-Free
Tantalum    Solikamsk Magnesium Works OAO    Russian Federation    Conflict-Free
Tantalum    Taki Chemical Co., Ltd.    Japan    Conflict-Free
Tantalum    Telex Metals    USA    Conflict-Free
Tantalum    Ulba Metallurgical Plant JSC    Kazakhstan    Conflict-Free
Tantalum    Yichun Jin Yang Rare Metal Co., Ltd.    China    Conflict-Free
Tantalum    Zhuzhou Cemented Carbide    China    Conflict-Free
Tungsten    A.L.M.T. TUNGSTEN Corp.    Japan    Conflict-Free
Tungsten    Chenzhou Diamond Tungsten Products Co., Ltd.    China    Conflict-Free
Tungsten    Chongyi Zhangyuan Tungsten Co., Ltd.    China    Conflict-Free
Tungsten    Dayu Weiliang Tungsten Co., Ltd.    China    Unknown
Tungsten    Fujian Jinxin Tungsten Co., Ltd.    China    Conflict-Free
Tungsten    Ganzhou Huaxing Tungsten Products Co., Ltd.    China    Conflict-Free
Tungsten    Ganzhou Jiangwu Ferrotungsten Co., Ltd.    China    Conflict-Free
Tungsten    Ganzhou Seadragon W & Mo Co., Ltd.    China    Conflict-Free
Tungsten    Global Tungsten & Powders Corp.    USA    Conflict-Free
Tungsten    Guangdong Xianglu Tungsten Co., Ltd.    China    Conflict-Free
Tungsten    H.C. Starck GmbH    Germany    Unknown
Tungsten    H.C. Starck Tungsten GmbH    Germany    Conflict-Free
Tungsten    H.C. Starck Smelting GmbH & Co.KG    Germany    Conflict-Free
Tungsten    Hunan Chenzhou Mining Co., Ltd.    China    Conflict-Free
Tungsten    Hunan Chunchang Nonferrous Metals Co., Ltd.    China    Conflict-Free
Tungsten    Hydrometallurg, JSC    Russian Federation    Conflict-Free
Tungsten    Japan New Metals Co., Ltd.    Japan    Conflict-Free
Tungsten    Jiangwu H.C. Starck Tungsten Products Co., Ltd.    China    Conflict-Free
Tungsten    Jiangxi Dayu Longxintai Tungsten Co., Ltd.    China    Unknown
Tungsten    Jiangxi Minmetals Gao’an Non-ferrous Metals Co., Ltd.    China    Unknown
Tungsten    Jiangxi Xinsheng Tungsten Industry Co., Ltd.    China    Conflict-Free
Tungsten    Jiangxi Yaosheng Tungsten Co., Ltd.    China    Conflict-Free
Tungsten    Kennametal Fallon    USA    Conflict-Free
Tungsten    Kennametal Huntsville    USA    Conflict-Free
Tungsten    Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC    Vietnam    Conflict-Free
Tungsten    Tejing (Vietnam) Tungsten Co., Ltd.    Vietnam    Conflict-Free
Tungsten    Wolfram Bergbau und Hütten AG    Austria    Conflict-Free
Tungsten    Xiamen Tungsten Co., Ltd.    China    Conflict-Free
Tungsten    Xiamen Tungsten (H.C.) Co., Ltd.    China    Conflict-Free
Tungsten    Xinhai Rendan Shaoguan Tungsten Co., Ltd.    China    Conflict-Free

 

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Annex II

 

China    Philippines
Taiwan    Peru
USA    Belgium
Canada    Malaysia
Japan    Poland
Indonesia    Kazakhstan
Bolivia    Estonia
Brazil    India
Thailand    Mexico
Germany    Netherlands
Switzerland    South Africa
Australia    Turkey
South Africa    Uzbekistan
Russia    Singapore
Spain    Kyrgyzstan
Austria    Saudi Arabia
Vietnam    Italy
Republic of Korea    Sweden

 

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IV. Independent Private Sector Audit

China Mobile obtained an independent private sector audit of this report by Ernst & Young Hua Ming LLP, which is set forth as Exhibit A to this report.

 

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Exhibit A

Report of Independent Accountants

Board of Directors and Stockholders of China Mobile Limited

We have examined whether the design of China Mobile Limited’s (the “Company”) due diligence framework as set forth in the Design of Due Diligence section of the Conflict Minerals Report for the reporting period from January 1 to December 31, 2016, is in conformity, in all material respects, with the criteria set forth in the Organization for Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Third Edition 2016 (“OECD Due Diligence Guidance”), and whether the Company’s description of the due diligence measures it performed, as set forth in the Due Diligence Measures section of the Conflict Minerals Report for the reporting period from January 1 to December 31, 2016, is consistent, in all material respects, with the due diligence process that the Company undertook.

Management is responsible for the design of the Company’s due diligence, the description of the Company’s due diligence measures set forth in the Conflict Minerals Report, and performance of the due diligence measures. Our responsibility is to express an opinion on the design of the Company’s due diligence framework and on the description of the due diligence measures the Company performed, based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and the standards applicable to attestation engagements contained in Government Auditing Standards, issued by the Comptroller General of the United States, and, accordingly, included examining, on a test basis, evidence about the design of the Company’s due diligence framework and the description of the due diligence measures the Company performed, and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion.

Our examination was not conducted for the purpose of evaluating:

 

  •   The consistency of the due diligence measures that the Company performed with either the design of the Company’s due diligence framework or the OECD Due Diligence Guidance

 

  •   The completeness of the Company’s description of the due diligence measures performed

 

  •   The suitability of the design or operating effectiveness of the Company’s due diligence process

 

  •   Whether a third party can determine from the Conflict Minerals Report if the due diligence measures the Company performed are consistent with the OECD Due Diligence Guidance

 

  •   The Company’s reasonable country of origin inquiry (RCOI), including the suitability of the design of the RCOI, its operating effectiveness, or the results thereof

 

  •   The Company’s conclusions about the source or chain of custody of its conflict minerals, those products subject to due diligence, or the DRC Conflict Free status of its products

Accordingly, we do not express an opinion or any other form of assurance on the aforementioned matters or any other matters included in any section of the Conflict Minerals Report other than the design of the Company’s due diligence framework as set forth in the Design of Due Diligence section and the Company’s description of the due diligence measures it performed, as set forth in Due Diligence Measures section referenced in the first paragraph above.

In our opinion, the design of the Company’s due diligence framework for the reporting period from January 1 to December 31, 2016, as set forth in the Design of Due Diligence section of the Conflict Minerals Report is in conformity, in all material respects, with the OECD Due Diligence Guidance, and the Company’s description of the due diligence measures it performed as set forth in the Design of Due Diligence section of the Conflict Minerals Report for the reporting period from January 1 to December 31, 2016, is consistent, in all material respects, with the due diligence process that the Company undertook based on the criteria.

/s/ Ernst & Young Hua Ming LLP

Beijing, P.R.C.

May 25, 2017

 

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