EX-1.01 2 ex_678895.htm EXHIBIT 1.01 ex_678895.htm

 

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Exhibit 1.01

 

Conflict Minerals Report April 22, 2024

 

Nortech Systems, Inc. is a full-service electronics manufacturing (EMS) provider of wire and cable assemblies, printed circuit boards assemblies and higher-level complete box build assemblies for a wide range of industries. Metallic forms of tin, tantalum, tungsten, and gold ("Conflict Minerals") are present in some of the products, components, and materials we purchase and are necessary to the functionality of many of the products we manufacture. We do not buy any ores directly, nor do we directly purchase these processed metals in their raw form.

 

Nortech’s corporate policy regarding Conflict Minerals and disclosure regarding whether any Conflict Minerals necessary to the functionality or production of a product originated in Covered Countries is made public on our website at: https://www.nortechsys.com.

 

Design of Due Diligence Framework

 

Our due diligence procedures are in compliance with the Organization for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (Third Edition) and its supplements.

 

Nortech's policy regarding Conflict Minerals was communicated to employees internally and to suppliers externally v i a e -mail and posted to our website.

 

Our cross functional conflict minerals team was established to carry out the necessary due diligence and reporting requirements. The team currently includes the following roles:

 

Team Members:

Document Specialist

Director, Global Supplier Quality

   
Executive Sponsors:

President & CEO

Chief Financial Officer

 

 

Due Diligence Measures Performed

 

Our RCOI (reasonable country of origin inquiry) and due diligence procedures include the following:

 

 

Due to the size of the Nortech's sourcing functions, we focused on our largest suppliers that provide components and materials directly incorporated into our final products , ranked by the amount the Company spends with each such supplier, and the suppliers that had the highest probability of supplying us with products or components containing Conflict Minerals (e.g. electronics).

 

 

We surveyed relevant suppliers representing over 90% of our total company supplier spend on components and materials directly incorporated into our final products.

 

 

Relevant suppliers were evaluated to identify whether the products, materials, or components supplied to Nortech contain Conflict Minerals.

 

 

MINNESOTA • MEXICO • CHINA 7550 Meridian Circle N, Suite 150
NSYS [NASDAQ]
nortechsys.com
Maple Grove, MN 55369
800-808-8281

 

 

 

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Data was collected directly from suppliers using the Conflict Minerals Reporting Template developed by the Responsible Minerals Initiative (RMI) formerly known as CFSI.

 

 

Supplier declarations were reviewed for completeness, accuracy, and conformance to Nortech requirements.

 

 

An escalation process was initiated with relevant suppliers who were nonresponsive after the initial contact was made, or whose initial response was incomplete, unclear, or nonconforming.

 

 

Analysis of Supplier Survey Responses

 

We were unable to confirm through our RCOI that Conflict Minerals contained in our products did not originate from the Covered Countries or were from recycled/scrap materials. Therefore we conducted due diligence on the processing facilities identified by our suppliers and prepared this Conflict Minerals Report.

Conflict minerals information from some suppliers was presented to Nortech at a "company-level" rather than a Nortech product-specific response. As a result, it is likely that our lists of smelters, refiners, and countries of origin (discussed below) include sources that are not in our supply chain.

 

 

Due Diligence Results

 

Suppliers that responded to our survey provided lists of smelters and refiners on which we conducted due diligence.

Our due diligence process included comparing the supplier-provided names of smelters/refiners against lists of audited and verified smelters and refiners from R M I . The lists of smelters and refiners are included as Table 1.

Certain suppliers identified Kaloti Precious Metals, Sudan Gold Refinery, African Gold Refinery, and Fidelity Printers and Refiners as sources of gold in their supply chains. These refineries are not audited by the RM I and public information indicates the possibility that these are high-risk facilities. Certain suppliers also identified smelters from Covered Countries including Mining Minerals Resources, Luna Smelter, and PowerX. Because the conflict minerals information from these suppliers was presented to Nortech as "company-level" responses rather than Nortech product-specific responses, it is uncertain if these facilities are actually in our supply chain. As part of our due diligence process, Nortech implemented our risk mitigation plan for the subject suppliers, engaging them to conduct additional research on whether these facilities are, in reality, present in our supply chain. If we determine that material sourced from these facilities is present in Nortech's supply chain, we will work with our suppliers to explore alternatives.

Country of origin information was obtained where reasonably available to Nortech and is presented as Table 2.

 

 

CMRT Reporting to our customers.

 

Nortech issues a standard response using the RMI CMRT.

 

 

Third Party Audits of Processing Facilities

 

Nortech does not conduct audits of smelters or refiners. We support the Responsible Mineral Initiative's Conflict Free Smelter program through our corporate policy and procurement requirements by encouraging suppliers to source from audited facilities.

 

 

Annual Reporting

 

In accordance with the OECD Guidance and the Rule, this report is available on our website: www.nortechsys.com

 

 

nortechsys.com

 

 

 

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Declaration

 

Based on our due diligence results, Nortech has determined that our products are 'DRC Conflict Undeterminable'.

 

 

Independent Private Sector Audit

 

Not required for reporting year 2023.

 

Limitations

 

Conflict Minerals sourcing and traceability information is limited at this time. Moreover, there are inherent limitations and risks in the information that is available. We are reliant on the information provided to us by our suppliers and industry initiatives such as the RMI. Our processes are intended to provide reasonable assurance - not absolute certainty- about the identification of processing facilities and the sources of their ores.

 

Table 1: Smelters/Refiners

 

Gold Smelters/Refiners

 

 

Advanced Chemical Company

 

Aida Chemical Industries Co., Ltd.

 

Agosi AG

 

Almalyk Mining and Metallurgical Complex (AMMC)

 

AngloGold Ashanti Corrego do Sitio Mineracao

 

Argor-Heraeus S.A.

 

Asahi Pretec Corp.

 

Asaka Riken Co., Ltd.

 

Atasay Kuyumculuk Sanayi Ve Ticaret A.S.

 

Aurubis AG

 

Bangko Sentral ng Pilipinas (Central Bank of the Philippines)

 

Boliden AB

 

C. Hafner GmbH + Co. KG

 

Caridad

 

CCR Refinery - Glencore Canada Corporation

 

Cendres + Metaux S.A.

 

Yunnan Copper Industry Co., Ltd.

 

Chimet S.p.A.

 

Chugai Mining

 

Daye Non-Ferrous Metals Mining Ltd.

 

DSC (Do Sung Corporation)

 

Dowa

 

Eco-System Recycling Co., Ltd. East Plant

 

JSC Novosibirsk Refinery

 

Refinery of Seemine Gold Co., Ltd.

 

Guoda Safina High-Tech Environmental Refinery Co., Ltd.

 

Hangzhou Fuchunjiang Smelting Co., Ltd.

 

LT Metal Ltd.

 

Heimerle + Meule GmbH

 

Heraeus Metals Hong Kong Ltd.

 

Heraeus Germany GmbH Co. KG

 

 

nortechsys.com

 

 

 

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Hunan Chenzhou Mining Co., Ltd.

 

Hunan Guiyang yinxing Nonferrous Smelting Co., Ltd.

 

HwaSeong CJ CO., LTD.

 

Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd.

 

Ishifuku Metal Industry Co., Ltd.

 

Istanbul Gold Refinery

 

Japan Mint

 

Jiangxi Copper Co., Ltd.

 

Asahi Refining USA Inc.

 

Asahi Refining Canada Ltd.

 

JSC Ekaterinburg Non-Ferrous Metal Processing Plant

 

JSC Uralelectromed

 

JX Nippon Mining & Metals Co., Ltd.

 

Kazakhmys Smelting LLC

 

Kazzinc

 

Kennecott Utah Copper LLC

 

Kojima Chemicals Co., Ltd.

 

Kyrgyzaltyn JSC

 

L'azurde Company For Jewelry

 

Lingbao Gold Co., Ltd.

 

Lingbao Jinyuan Tonghui Refinery Co., Ltd.

 

LS-NIKKO Copper Inc.

 

Luoyang Zijin Yinhui Gold Refinery Co., Ltd.

 

Materion

 

Matsuda Sangyo Co., Ltd.

 

Metalor Technologies (Suzhou) Ltd.

 

Metalor Technologies (Hong Kong) Ltd.

 

Metalor Technologies (Singapore) Pte., Ltd.

 

Metalor Technologies S.A.

 

Metalor USA Refining Corporation

 

Metalurgica Met-Mex Penoles S.A. De C.V.

 

Mitsubishi Materials Corporation

 

Mitsui Mining and Smelting Co., Ltd.

 

Moscow Special Alloys Processing Plant

 

Nadir Metal Rafineri San. Ve Tic. A.S.

 

Navoi Mining and Metallurgical Combinat

 

Nihon Material Co., Ltd.

 

Ohura Precious Metal Industry Co., Ltd.

 

OJSC "The Gulidov Krasnoyarsk Non-Ferrous Metals Plant" (OJSC Krastsvetmet)

 

MKS PAMP SA

 

Penglai Penggang Gold Industry Co., Ltd.

 

Prioksky Plant of Non-Ferrous Metals

 

PT Aneka Tambang (Persero) Tbk

 

PX Precinox S.A.

 

Rand Refinery (Pty) Ltd.

 

Royal Canadian Mint

 

Sabin Metal Corp.

 

Samduck Precious Metals

 

Samwon Metals Corp.

 

SEMPSA Joyeria Plateria S.A.

 

Shandong Tiancheng Biological Gold Industrial Co., Ltd.

 

Shandong Zhaojin Gold & Silver Refinery Co., Ltd.

 

Sichuan Tianze Precious Metals Co., Ltd.

 

 

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SOE Shyolkovsky Factory of Secondary Precious Metals

 

Solar Applied Materials Technology Corp.

 

Sumitomo Metal Mining Co., Ltd.

 

Super Dragon Technology Co., Ltd.

 

Tanaka Kikinzoku Kogyo K.K.

 

Great Wall Precious Metals Co., Ltd. of CBPM

 

Shandong Gold Smelting Co., Ltd.

 

Tokuriki Honten Co., Ltd.

 

Tongling Nonferrous Metals Group Co., Ltd.

 

Torecom

 

Umicore S.A. Business Unit Precious Metals Refining

 

United Precious Metal Refining, Inc.

 

Valcambi S.A.

 

Western Australian Mint (T/a The Perth Mint)

 

Yamakin Co., Ltd.

 

Yokohama Metal Co., Ltd.

 

Zhongyuan Gold Smelter of Zhongjin Gold Corporation

 

Gold Refinery of Zijin Mining Group Co., Ltd.

 

Morris and Watson

 

SAFINA A.S.

 

Guangdong Jinding Gold Limited

 

Umicore Precious Metals Thailand

 

Geib Refining Corporation

 

MMTC-PAMP India Pvt., Ltd.

 

KGHM Polska Miedz Spolka Akcyjna

 

Fidelity Printers and Refiners Ltd.

 

Singway Technology Co., Ltd.

 

Shandong Humon Smelting Co., Ltd.

 

Shenzhen Zhonghenglong Real Industry Co., Ltd.

 

Al Etihad Gold Refinery DMCC

 

Emirates Gold DMCC

 

International Precious Metal Refiners

 

Kaloti Precious Metals

 

Sudan Gold Refinery

 

T.C.A S.p.A

 

REMONDIS PMR B.V.

 

Fujairah Gold FZC

 

Industrial Refining Company

 

Shirpur Gold Refinery Ltd.

 

Korea Zinc Co., Ltd.

 

Marsam Metals

 

TOO Tau-Ken-Altyn

 

Abington Reldan Metals, LLC

 

Shenzhen CuiLu Gold Co., Ltd.

 

Albino Mountinho Lda.

 

SAAMP

 

L'Orfebre S.A.

 

8853 S.p.A.

 

Italpreziosi

 

WIELAND Edelmetalle GmbH

 

Ogussa Osterreichische Gold- und Silber-Scheideanstalt GmbH

 

AU Traders and Refiners

 

GGC Gujrat Gold Centre Pvt. Ltd.

 

 

nortechsys.com

 

 

 

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Sai Refinery

 

Modeltech Sdn Bhd

 

Bangalore Refinery

 

Kyshtym Copper-Electrolytic Plant ZAO

 

Degussa Sonne / Mond Goldhandel GmbH

 

Pease & Curren

 

JALAN & Company

 

SungEel HiMetal Co., Ltd.

 

Planta Recuperadora de Metales SpA

 

ABC Refinery Pty Ltd.

 

Safimet S.p.A

 

State Research Institute Center for Physical Sciences and Technology

 

African Gold Refinery

 

Gold Coast Refinery

 

NH Recytech Company

 

QG Refining, LLC

 

Dijllah Gold Refinery FZC

 

CGR Metalloys Pvt Ltd.

 

Sovereign Metals

 

C.I Metales Procesados Industriales SAS

 

Eco-System Recycling Co., Ltd. North Plant

 

Eco-System Recycling Co., Ltd. West Plant

 

Augmont Enterprises Private Limited

 

Kundan Care Products Ltd.

 

Emerald Jewel Industry India Limited (Unit 1)

 

Emerald Jewel Industry India Limited (Unit 2)

 

Emerald Jewel Industry India Limited (Unit 3)

 

Emerald Jewel Industry India Limited (Unit 4)

 

K.A. Rasmussen

 

Alexy Metals

 

Sancus ZFS (L’Orfebre, SA)

 

Sellem Industries Ltd.

 

MD Overseas

 

Metallix Refining Inc.

 

Metal Concentrators SA (Pty) Ltd.

 

WEEEREFINING

 

Gold by Gold Colombia

 

Dongwu Gold Group

 

Sam Precious Metals

 

Coimpa Industrial LTDA

 

 

Tantalum Smelters/Refiners

 

 

Changsha South Tantalum Niobium Co., Ltd.

 

F&X Electro-Materials Ltd.

 

XIMEI RESOURCES (GUANGDONG) LIMITED

 

JiuJiang JinXin Nonferrous Metals Co., Ltd.

 

Jiujiang Tanbre Co., Ltd.

 

AMG Brasil

 

Metallurgical Products India Pvt., Ltd.

 

Mineracao Taboca S.A.

 

Mitsui Mining and Smelting Co., Ltd.

 

 

nortechsys.com

 

 

 

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NPM Silmet AS

 

Ningxia Orient Tantalum Industry Co., Ltd.

 

QuantumClean

 

Yanling Jincheng Tantalum & Niobium Co., Ltd.

 

Solikamsk Magnesium Works OAO

 

Taki Chemical Co., Ltd.

 

Telex Metals

 

Ulba Metallurgical Plant JSC

 

Hengyang King Xing Lifeng New Materials Co., Ltd.

 

D Block Metals, LLC

 

FIR Metals & Resource Ltd.

 

Jiujiang Zhongao Tantalum & Niobium Co., Ltd.

 

XinXing HaoRong Electronic Material Co., Ltd.

 

Jiangxi Dinghai Tantalum & Niobium Co., Ltd.

 

KEMET de Mexico

 

TANIOBIS Co., Ltd.

 

TANIOBIS GmbH

 

Materion Newton Inc.

 

TANIOBIS Japan Co., Ltd.

 

TANIOBIS Smelting GmbH & Co. KG

 

Global Advanced Metals Boyertown

 

Global Advanced Metals Aizu

 

Resind Industria e Comercio Ltda.

 

Jiangxi Tuohong New Raw Material

 

RFH Yancheng Jinye New Material Technology Co., Ltd.

 

5D Production OU

 

PowerX Ltd.

 

 

Tin Smelters/Refiners

 

 

Chenzhou Yunxiang Mining and Metallurgy Co., Ltd.

 

Alpha

 

PT Aries Kencana Sejahtera

 

PT Premium Tin Indonesia

 

Dowa

 

EM Vinto

 

Estanho de Rondonia S.A.

 

Fenix Metals

 

Gejiu Non-Ferrous Metal Processing Co., Ltd.

 

Gejiu Zili Mining And Metallurgy Co., Ltd.

 

Gejiu Kai Meng Industry and Trade LLC

 

China Tin Group Co., Ltd.

 

Malaysia Smelting Corporation (MSC)

 

Metallic Resources, Inc.

 

Mineracao Taboca S.A.

 

Minsur

 

Mitsubishi Materials Corporation

 

Jiangxi New Nanshan Technology Ltd.

 

Novosibirsk Tin Combine

 

O.M. Manufacturing (Thailand) Co., Ltd.

 

Operaciones Metalurgicas S.A.

 

PT Artha Cipta Langgeng

 

 

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PT Babel Inti Perkasa

 

PT Babel Surya Alam Lestari

 

PT Bangka Tin Industry

 

PT Belitung Industri Sejahtera

 

PT Bukit Timah

 

PT Mitra Stania Prima

 

PT Panca Mega Persada

 

PT Prima Timah Utama

 

PT Refined Bangka Tin

 

PT Sariwiguna Binasentosa

 

PT Stanindo Inti Perkasa

 

PT Timah Tbk Kundur

 

PT Timah Tbk Mentok

 

PT Timah Nusantara

 

PT Tinindo Inter Nusa

 

PT Tommy Utama

 

Rui Da Hung

 

Thaisarco

 

Gejiu Yunxin Nonferrous Electrolysis Co., Ltd.

 

VQB Mineral and Trading Group JSC

 

White Solder Metalurgia e Mineracao Ltda.

 

Yunnan Chengfeng Non-ferrous Metals Co., Ltd.

 

Tin Smelting Branch of Yunnan Tin Co., Ltd.

 

CV Venus Inti Perkasa

 

Magnu's Minerais Metais e Ligas Ltda.

 

PT Tirus Putra Mandiri

 

Melt Metais e Ligas S.A.

 

PT ATD Makmur Mandiri Jaya

 

O.M. Manufacturing Philippines, Inc.

 

CV Ayi Jaya

 

Electro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Company

 

Nghe Tinh Non-Ferrous Metals Joint Stock Company

 

Tuyen Quang Non-Ferrous Metals Joint Stock Company

 

PT Cipta Persada Mulia

 

An Vinh Joint Stock Mineral Processing Company

 

Resind Industria e Comercio Ltda.

 

Super Ligas

 

Aurubis Beerse

 

Aurubis Berango

 

PT Bangka Prima Tin

 

PT Sukses Inti Makmur

 

PT Menara Cipta Mulia

 

Modeltech Sdn Bhd

 

Guangdong Hanhe Non-Ferrous Metal Co., Ltd.

 

Chifeng Dajingzi Tin Industry Co., Ltd.

 

PT Bangka Serumpun

 

Pongpipat Company Limited

 

Tin Technology & Refining

 

Dongguan CiEXPO Environmental Engineering Co., Ltd.

 

PT Rajawali Rimba Perkasa

 

Luna Smelter, Ltd.

 

Yunnan Yunfan Non-ferrous Metals Co., Ltd.

 

Precious Minerals and Smelting Limited

 

 

nortechsys.com

 

 

 

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Gejiu City Fuxiang Industry and Trade Co., Ltd.

 

PT Mitra Sukses Globalindo

 

CRM Fundicao De Metais E Comercio De Equipamentos Eletronicos Do Brasil Ltda

 

CRM Synergies

 

Fabrica Auricchio Industria e Comercio Ltda.

 

DS Myanmar

 

PT Putera Sarana Shakti (PT PSS)

 

Mining Minerals Resources SARL

 

 

Tungsten Smelters/Refiners

 

 

A.L.M.T. Corp.

 

Kennametal Huntsville

 

Guangdong Xianglu Tungsten Co., Ltd.

 

Chongyi Zhangyuan Tungsten Co., Ltd.

 

CNMC (Guangxi) PGMA Co., Ltd.

 

Global Tungsten & Powders Corp.

 

Hunan Chenzhou Mining Co., Ltd.

 

Hunan Jintai New Material Co., Ltd.

 

Japan New Metals Co., Ltd.

 

Ganzhou Huaxing Tungsten Products Co., Ltd.

 

Kennametal Fallon

 

Wolfram Bergbau und Hutten AG

 

Xiamen Tungsten Co., Ltd.

 

Jiangxi Minmetals Gao'an Non-ferrous Metals Co., Ltd.

 

Ganzhou Jiangwu Ferrotungsten Co., Ltd.

 

Jiangxi Yaosheng Tungsten Co., Ltd.

 

Jiangxi Xinsheng Tungsten Industry Co., Ltd.

 

Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd.

 

Malipo Haiyu Tungsten Co., Ltd.

 

Xiamen Tungsten (H.C.) Co., Ltd.

 

Jiangxi Gan Bei Tungsten Co., Ltd.

 

Ganzhou Seadragon W & Mo Co., Ltd.

 

Asia Tungsten Products Vietnam Ltd.

 

Hunan Shizhuyuan Nonferrous Metals Co., Ltd. Chenzhou Tungsten Products Branch

 

H.C. Starck Tungsten GmbH

 

TANIOBIS Smelting GmbH & Co. KG

 

Masan High-Tech Materials

 

Jiangwu H.C. Starck Tungsten Products Co., Ltd.

 

Niagara Refining LLC

 

China Molybdenum Tungsten Co., Ltd.

 

Ganzhou Haichuang Tungsten Co., Ltd.

 

Hydrometallurg, JSC

 

Unecha Refractory metals plant

 

Philippine Chuangxin Industrial Co., Inc.

 

ACL Metais Eireli

 

Moliren Ltd.

 

Fujian Ganmin RareMetal Co., Ltd.

 

Lianyou Metals Co., Ltd.

 

JSC "Kirovgrad Hard Alloys Plant"

 

NPP Tyazhmetprom LLC

 

Hubei Green Tungsten Co., Ltd.

 

 

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Albasteel Industria e Comercio de Ligas Para Fundicao Ltd.

 

Cronimet Brasil Ltda

 

Artek LLC

 

Fujian Xinlu Tungsten Co., Ltd.

 

OOO “Technolom” 2

 

OOO “Technolom” 1

 

LLC Vostok

 

YUDU ANSHENG TUNGSTEN CO., LTD.

 

HANNAE FOR T Co., Ltd.

 

Tungsten Vietnam Joint Stock Company

 

Nam Viet Cromit Joint Stock Company

 

DONGKUK INDUSTRIES CO., LTD.

 

Table 2: Aggregated Countries of Origin

 

ANDORRA

 

AUSTRALIA

 

AUSTRIA

 

BELGIUM

 

BOLIVIA (PLURINATIONAL STATE OF)

 

BRAZIL

 

CANADA

 

CHILE

 

CHINA

 

COLOMBIA

 

CONGO, DEMOCRATIC REPUBLIC OF THE

 

CZECHIA

 

ESTONIA

 

FRANCE

 

GERMANY

 

GHANA

 

INDIA

 

INDONESIA

 

ITALY

 

JAPAN

 

KAZAKHSTAN

 

KOREA, REPUBLIC OF

 

KYRGYZSTAN

 

LITHUANIA

 

MALAYSIA

 

MAURITANIA

 

MEXICO

 

MYANMAR

 

NETHERLANDS

 

NEW ZEALAND

 

NORWAY

 

PERU

 

PHILIPPINES

 

POLAND

 

PORTUGAL

 

RUSSIAN FEDERATION

 

RWANDA

 

SAUDI ARABIA

 

SINGAPORE

 

 

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SOUTH AFRICA

 

SPAIN

 

SUDAN

 

SWEDEN

 

SWITZERLAND

 

TAIWAN, PROVINCE OF CHINA

 

THAILAND

 

TURKEY

 

UGANDA

 

UNITED ARAB EMIRATES

 

UNITED STATES OF AMERICA

 

UZBEKISTAN

 

VIET NAM

 

ZIMBABWE

 

 

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