Aligning growth plans with China's needs
A1 According to the Chinese National Bureau of Statistics, GDP in the first half of this year increased by 6.3 percent year-on-year in terms of comparable prices. The production of new energy vehicles grew 34.6 percent year-on-year. We take a positive view of the great growth potential and business opportunities in this sector. Surging demand for electric vehicles, in turn, drives the development in associated industries, such as cobalt and copper - the critical materials to produce lithium-ion batteries for electric vehicles. As one of the largest cobalt suppliers to China, ERG is delighted to play an active role in this sector and continue to fuel the development of electric vehicles.
A3 We recognize strategic insight and strong implementation as the most resilient parts and highlights of the Chinese economy. With efficient implementation, the Belt and Road Initiative now has become synonymous with economic development and interconnectivity on a global scale, and more than 125 countries and 29 international organizations have signed cooperation agreements as part of the initiative. As an active participant, ERG cooperates with Chinese partners in forms of EPC, financing, off-take agreements, and equity partnerships, including our Metalkol RTR cobalt and copper project in the Democratic Republic of Congo and BAMIN iron ore mining and logistics project in Brazil. We will continue to develop the current strategic partnerships to increase sales and integrate the opportunities of the initiative to keep pace with the increasing mineral demands on China's economic development.
A5 This year, the Chinese government has taken a series of measures to promote its opening-up. Policies and regulations like the Foreign Investment Law and Special Administrative Measures for the Access of Foreign Investment 2019, demonstrate China's firm determination and strong desire to promote further opening-up and seek international cooperation opportunities. As a foreign company in the mining industry, we appreciate China's warm welcome in related mineral investment, which will hugely improve the development of the industry. We would like to take full advantage of China's open economy and its support for the financial sector to promote our business in China - both sales and project cooperation - and make a contribution to China's economic development.
A6 ERG has implemented many high-tech measures to fit the high-speed development of the world economy. ERG adopts a blockchain solution in its Roan Tailings Reclamation copper and cobalt project in Africa to ensure its products are in accordance with the most responsible industrial standards, and it has also implemented the Smart Mine Initiative to improve operational efficiency and further reduce costs in its operation in Kazakhstan. Additionally, ERG holds an innovator's forum annually in Kazakhstan to generate and share ideas on innovation and technological transformation. We recognize the coming era of technological transformation, and China's increasingly leading position in technological fields in the world. We look forward to seeing the growing technology opportunities in China and will apply more advanced technologies to promote our business and the development of the mining industry.
