Fig. 1 Opening Ceremony of the Production Line ofthe Laterite Nickel Ore Hydrometallurgy-based New Energy Raw MaterialsManufacturing Project Phase I (30 KTA of Metallic Nickels) of QMB, Indonesia

In the golden autumn of September, the nationalflags of China and Indonesia were flying in the wind in the QMB park,Indonesia. The opening ceremony of the production line of the Laterite NickelOre Hydrometallurgy-based New Energy Raw Materials Manufacturing Project PhaseI (30 KTA of Metallic Nickels) invested by PT QMB New Energy Materials was heldin IMIP, Sulawesi Island, Central Sulawesi, Indonesia at 16:00 on September 26,2022 (Monday). It marks the success of the Project in tackling challenges,including overcoming the impacts of COVID-19 and breaking through the blockadeof relevant key components, over the last three years, the successfulcompletion of it and a new stage for it to be formally put into operation, anda victory in the battle for the defence of the global nickel resources! In thefuture, a capacity ramp-up plan will be implemented in the Project with an aimto ramp up the capacity to the design capacity within 3 months.

At theceremony, "Nickel Industry Museum" and Hydrometallurgy and New Energy Materials EngineeringTechnology Research Center were also inaugurated.

IndonesianCoordinating Minister for Maritime and Investment Affairs, and relevant leadersof the Indonesian Coordinating Ministry for Maritime and Investment Affairs,the Ministry of Investment, and the Ministry of Energy and Mineral Resourcesattended the ceremony in person, demonstrating the Indonesian government's highattention to and strong support for the QMB Project.

More than 300 people attended the ceremony,including representatives of QMB's Indonesian employees, overseas builders ofChinese enterprises, QMB's Chinese employees, and of business competitors.

In his speech, ProfessorXu Kaihua expressed thanks to the Indonesian government for the investmentenvironment, the IMIP park for the high-quality services, and to allshareholders of QMB and builders of business competitors. Mr. Xu also thankedChairman Xiang Guangda, the founder of Tsingshan Holding Group, for hisbusiness expansion and the establishment of a perfect investment platform forChinese enterprises. Professor Xu Kaihua believed that it is the most correctchoice to invest in Indonesia and put not only capital but also green into Indonesia. According to Mr. Xu, the hydrometallurgical production of23 KTA of metallic nickels will be added based on the completion of theoriginal plan of producing 50 KTA of metallic nickels with an investment of USD998 million; besides, research will be conducted actively on expanding thescale of manufacturing new energy raw materials from laterite nickel ores;precursor materials will be deployed actively; thus making the Project a benchmark one to implement the GDIin Indonesia and China.

Fig. 2 Professor Xu Kaihua,the Chairman of GEM & QMB, was delivering a speech.

Conforming to the development trend of new energyelectrification in Indonesia, the Project is a joint venture built by Chineseenterprises GEM (63%), Tsingshan Holding Group (10%), and Brunp Recycling (CATLHoldings, 10%) together with the Japanese enterprise HANWA CO., LTD. (8%) andthe South Korean enterprise ECOPRO (9%), with a total investment of USD 998million. Its design scale is to produce nickel-cobalt-manganese hydroxide andhigh-purity nickel-cobalt-manganese sulfate crystal as raw materials forternary power batteries, with the production of 50 KTA of metallic nickels.

The QMB Nickel Resource Project Phase II (43 KTA ofmetallic nickels: consisting of the 20 KTA of the originally plannedhydrometallurgical production of 50 KTA and the added 23 KTA) has entered thedesign and key equipment procurement stage and is expected to complete thecapital construction and enter the commissioning stage in October 2023 andofficially open by December 30, 2023.

Fig. 3 Control and command center of the QMBProject

Fig. 4 High-pressure module of the QMB Project

Fig. 5 CCD module of the QMB Project

Fig. 6 Raw materialproducts for ternary power battery

Fig. 7 The Nickel Wall of the Nickel IndustryMuseum, which is inlaid with the English letters of nickel (Ni) in 28 fonts tomean the element number 28 on the periodic table.

Fig. 8 The FirstExhibition Area in the Museum: The Leapfrog Development from Nickel Coins toNew Energy Resources over a Hundred Years

Fig. 9 The SecondExhibition Area in the Museum: The Global Reserves and Distribution of NickelResources

Fig. 10 The ThirdExhibition Area in the Museum: The Centennial Revolution of Nickel —"Nickel" Opens a New Era

Fig. 11 The Fifth Exhibition Area in the Museum:The Centennial Technological Leapfrogging of Nickel — From TraditionalMetallurgy to New Energy Material

In light of the industrialideal of "Putting laterite nickel ore into furnaces and refining them intoternary materials", the laterite nickel ores are directly used tomanufacture new energy raw materials and materials, thus creating a wholeindustry chain mode from laterite nickel ores to new energy materials. TheProject has the following outstanding features in terms of planning and futuredevelopment: Firstly, low-grade ores are used to ensure the complete recoveryof resources and seek low-carbon and green development. In the Project, thelow-grade (0.8% ~1.3%) laterite nickel ores not used in pyrometallurgy (RKEFand high grade nickel matte technology routes) are used, and the nickel,cobalt, and manganese resources are fully recovered to realize the maximumutilization of resources. The carbon dioxide emissions per ton of nickel metaldecrease by over 60% compared to the pyrometallurgical technology. Secondly,the output scale is large and the industry chain is complete. With the modular,compact, and multidimensional design, the Project aims to produce 73,000 tonsof nickel metal, 7,000 tons of cobalt metal, and 10,000 tons of manganese metalon a land area of 70 hectares (1056 mu) and high-purity nickel sulfatecrystals, cobalt sulfate crystals, and manganese sulfate crystals as the newenergy raw materials and will have an active plan for the ternary precursormaterials. Thirdly, the introduction of science & technology into Indonesiaenables the improvement of the metallurgical engineering technology of thiscountry. With an investment of RMB 200 million, the world-class Laterite NickelOre Hydrometallurgy and New Energy Materials Engineering Technology ResearchCenter is built to improve the Indonesian laterite nickel ore hydrometallurgyresearch and development to an advanced level in the world. Fourthly, emphasizing cultural integration, green, and environmental protection, GEM hasbeen on the corresponding ESG list. The Nickel Industry Museumshows the centenary history of nickel resources to the world and demonstratesthe surging power of Indonesian nickel resources-driven new energy resources;The advanced sewage, waste residue, and waste gas treatment systems have madethe emissions far lower than the Indonesian standards and reached the EUstandards. The systems adopt whole-process real-time monitoring, cloudmanagement, and cloud disclosure. The Indonesian multi-ethnic culture is spreadthrough the first-class, elegant, and sacred prayer room. The Project willoffer jobs to more than 3,000 Indonesians after it reaches the designproduction capacity.

QMB, together with the Indonesian people, will takethe world's high-speed new energy development rail to a bright green future!

Project History Playback

Striving Forward Against All Odds to Win the Battle of Chinese Enterprisesfor the Defence of Nickel Resources!

On December 19, 2017,Chairman Xu Kaihua led the Group director Ms. Wang Min, the Group director andExecutive Deputy General Manager Zhou Bo, and the Group Supervisor Wu Guangyuanto visit Sulawesi Island in Central Sulawesi, Indonesia after untold hardships,which planted the seeds of nickel resources; At the beginning of 2018, ChairmanXu Kaihua led engineers and technicians to Sulawesi Island three times toconduct field investigations, which laid a solid foundation for accuratedesign.

At the beginning of 2018,Mr. Xiang Guangda (Chairman of Tsingshan Holding Group), Professor Xu Kaihua(Chairman of GEM), and Mr. Li Changdong (Chairman of Brunp Recycling) visitedSulawesi Island multiple times and confirmed the implementation of the Project.

On September 28, 2018, a JointVenture Agreement on the Construction of a Project for the Production ofBattery-grade Nickel Chemicals (Nickel Sulfate Crystals) from Laterite NickelOre in Indonesia (50 KTA of Nickels) was signed by Tsingshan Holding Group,GEM, Brunp Recycling (CATL Holdings), Indonesian IMIP and Japanese Hanwa inQingshan Park, Ningde City, China.