JIANGXI TUOHONG NEW MATERIAL CO., LTD.

STATEMENT IN SUPPORT OF THE EXTRACTIVE INDUSTRIES TRANSPARENCY ACTION PLAN

 

1. Introduction to EITI

In many countries, oil, gas, and mining funds are often associated with poverty, conflict and corruption. This phenomenon is often referred to as the "resource curse," and it is usually related to the lack of transparency and accountability of payment companies in the payment business and the way the government levies taxes on it. The Transparency Action Plan) aims to increase transparency and accountability. A voluntary initiative social organization supported by business alliances, governments, investors and civil society.

As a supplementary means to improve management level, British Prime Minister Tony Blair launched EITI in September 2002. EITI provides a good starting point for broadening and exploring financial management. Since the implementation of EITI, EITI has received extensive support from the international community, but the focus of the implementation of these plans lies in each country. Sponsored by the state and participating in this plan by companies means a commitment to the domestic and international communities to increase transparency and strengthen accountability in public life, government management and business interactions.

At the national level, EITI is a government-led action. However, EITI's principles and norms promote the active participation of a wide range of social groups. A wide range of regional leadership and participation is indispensable, and it requires the active and open participation of numerous stakeholders.

EITI can reduce the potential negative impacts caused by poor financial management by encouraging oil, natural gas and mining industries as income countries to increase transparency and strengthen accountability, so that these incomes become an important driving force for long-term economic development , To contribute to sustainable development and poverty reduction. Supporting the promotion of transparency and strengthening accountability are the common interests of resource-rich countries, extractive industry companies, and the international community.

2. The company establishes related procedures to support EITI, and appoints the general manager to take the lead in supporting the plan. The content of this statement is published on the company's website.

3. EITI principles

At the EITI Conference held in London in 2005, EITI participants adopted implementation standards.

EITI principles:

We all believe that the prudent use of natural resource wealth is an important driving force for sustained economic growth, thereby driving sustainable development and reducing poverty. On the contrary, if poorly managed, it can cause negative economic and social impacts.

2. We are convinced that managing the wealth of natural resources and benefiting the people is the responsibility of a sovereign government for the benefit of national development.

3. We recognize that the revenue stream from resource extraction takes many years to be effective and is very affected by prices.

4. We recognize that the public’s long-term understanding of government revenue and expenditure helps the public think about and choose an appropriate and realistic path for sustainable development.

5. We emphasize the importance of transparency for the government and extractive industry companies, and the need to strengthen public wealth management and accountability.

6. We recognize that to achieve greater transparency, we must strictly abide by the contract and the law.

7. We recognize that fiscal transparency will improve the domestic and foreign direct investment environment.

8. We trust the government’s principles and practices of accountability to all citizens in managing revenue streams and public expenditures.

9. We encourage a high degree of transparency and accountability in public life, government operations, and business interactions.

10. We believe that it is necessary to establish a simple, easy, widely consistent, and workable way to disclose income and expenditure.

11. We believe that payment disclosures in a certain country should include all extractive companies operating in that country.

12. We believe that when seeking solutions, all stakeholders should make important and relevant contributions, including governments and institutions, extractive industry companies, service companies, multilateral organizations, financial institutions, investors, and non-governmental organizations.

4. EITI standards:

In a publicly accessible, comprehensive and easy-to-understand manner, regularly announce to the public all substantive oil, gas and mining payments paid by companies to the government ("payments") and government receipts from oil, gas and mining companies All substantive income (referred to as "income").

2. When there is no audit means, the payment and income should be audited by a reliable and independent audit institution in accordance with international audit standards.

3. Payment and income should be verified by a credible and independent administrator in accordance with international auditing standards, and the administrator’s opinions on the account verification, including errors, should be published.

4. This method applies to all companies including state-owned companies.

5. As a participant, the public society actively participates in the design, supervision and evaluation of this procedure, and participates in public supervision.

6. The host government shall formulate an open and financially continuous work plan to achieve the above-mentioned objectives. If necessary, the assistance of international financial institutions may be sought, including detectable targets, implementation timetables, and evaluation of potential constraints.