vedantacorporatepresentation 2010-02-22 final%5b0%5d

8/8/2019 Vedantacorporatepresentation 2010-02-22 Final%5B0%5D

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Cautionary Statement and Disclaimer

The views expressed here may contain information derived from publicly available sources that have not beenindependently verified.

No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information.Any forward looking information in this presentation including, without limitation, any tables, charts and/or graphs, has

been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not berelied upon as a recommendation or forecast by Vedanta Resources plc ("Vedanta"). Past performance of Vedanta cannotbe relied upon as a guide to future performance.

This presentation contains 'forward-looking statements' that is, statements related to future, not past, events. In thiscontext, forward-looking statements often address our expected future business and financial performance, and oftencontain words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,' or 'will.' Forwardlooking statements by

their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates andmetal prices; from future integration of acquired businesses; and from numerous other matters of national, regional andglobal scale, including those of a environmental, climatic, natural, political, economic, business, competitive or regulatorynature. These uncertainties may cause our actual future results to be materially different that those expressed in ourforward-looking statements. We do not undertake to update our forward-looking statements.

This presentation is not intended, and does not, constitute or form part of any offer, invitation or the solicitation of an offerto purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in Vedanta or any of itssubsidiary undertakings or any other invitation or inducement to engage in investment activities, nor shall thispresentation (or any part of it) nor the fact of its distribution form the basis of, or be relied on in connection with, anycontract or investment decision.

2

2010, Vedanta Resources plc


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February 2010

TOUR OF INDIA OPERATIONS


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Itinerary

India Grow th

Strategy

Operations

Sustainable development

Summary

3


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Itinerary

Aluminum Power Projects Under Development Captive Power Plant

Lanjigarh refinery and CPP (VAL)

Jharsuguda smelter and CPP project

VAL (Mon/ Tue)

Industry leading growth to 1.75mtpa

Integrated, structurally low costproducerFurther 325 ktpa capacity at BALCOpost-expansion (existing:245 ktpa)

India

SEL (Mon )

2,400 MW IPPFirst unit of 600 MW commissioning incurrent quarter

Leveraging group skillsets

Niyamgiri Bauxite Mine

4


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Itinerary

ZincAluminum Power Projects Under Development Captive Power Plant

Rampura Agucha Open cast mine

Debari Zinc smelter Dariba and Sindesar Khurd Complex

Lanjigarh mine and refinery (VAL)

Jharsuguda Aluminum (VAL)and Commercial Power project

Chanderiya zinc-lead smelters and CPP

India

Zawar underground mine and CPP

HZL (Tue/ Wed)

1.065 mt integrated producer byFY2011World class resources, low cost

operationsSilver production growingsubstantially

Vizag Zinc Smelter

Dariba MineSindesar Khurd Mine

310 ktpa zinc-lead smelter project160 MW CPP Project

Dariba and Sindesar Khurd Complex

5


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Itinerary

ZincCopper Aluminum Power Projects Under Development Captive Power PlantIron Ore

Rampura Agucha Mine

Debari smelter Dariba and Zawar Mines



Chanderiya smelters

India

Project Centre Development

SESA Goa (Thu r)

Expansion to 50mt by FY2013

Dempo acquisition being successfullyintegratedPig iron expansion by mid FY2012

SESA Goa

6


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Other Operations


Rampura Agucha Mine




Chanderiya smelters

India

Project Centre Development

SESA Goa

Mt. Lyell Mine

Australia

Copper India/ Australia

INDIA: Smelting capacity to grow from

400ktpa to 800ktpa by FY 2012 CPP of 160MW Structurally competitive low

cost, port-based operations

AUSTRALIA: 11.3mt of reserves at 31/3/09

Tuticorin smelter

7


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Other Operations


Debari smelter



Chanderiya smelters

India

SESA Goa Mt. Lyell Mine

AustraliaZambia

Konkola Deeps underground mineKonkola and Nchanga open-pit and

underground minesNchanga Smelter and TLP

KCM

World class resources (2.5% grade),25+ years mine lifeGrowing to 400+ktpa by FY 2012Nchanga smelter achieved ratedcapability

KDMP mid-shaft loading in Q4 FY2010

Tuticorin smelter

Rampura Agucha Open Cast Mine

Dariba and Sindesar Khurd Complex

Zawar underground mine and CPP

8


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9

Integrated Global Operations cover the ValueChain from Mine to Finished Product

Mt. Lyell Mine

ZincCopperAluminum Power Projects Under Development Captive Power Plant

Australia

Rampura Ag ucha Mine


Vizag smelter

Tuticorin smelter



Korba smelter

Silvassa refinery

Chanderiya smelters

India

MALCO

Zambia

Konkola Deeps underground mineKonkola and Nchanga open-pitand underground minesNchanga Smelter and TLP

Iron Ore

SESA Goa

Talwandi Sabo Power Project

9


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Itinerary

India Grow th

Strategy

Operations


Summary

10


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Indias Mining PotentialGlobal Ranking of Indias Natural Resources 1

Bauxite( 2 . 4 B il l i o n t o n n e s )

4

Iron Ore( 2 4 B i l l i on t o n n e s)

5

Coal( 2 5 3 B i l l i o n t o n n e s)

4

17,040

4,7803,997

3,120

1,937 1,699 1,673 1,5791,071 813

C h i n

a

N o r t h

A m e r i c

a

R u s s

i a

M i d d l e

E a s t

A u s t r a

l i a

I n d

i a

A f r i

c a

B r a

z i l

N o r w a

y

I c e l a n

d

2010E Aluminiu m production (kt)

Source:Brookhunt

1 Based on reservesSource: Investment Commission of India

Exploration is a focus area for Vedanta

11


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India Growth Story : Base Metal Growth

Source: CRU, Global InsightNote (1) Excluding India and china

1.2

12.3 11.6 11.2

5.25.76.3

13.814.617.1

1.8

7.4

India China Europe North America Asia Global

Potential forsignificant

growth

(1)

11.0% 9.4% 6.3% 6.6% 6.6% 7.9%

Aluminiu m Consumption per Capita 2010 (kg) 2014 (kg)CAGR: 2010-2014 (% )

2.73.2

5.85.95.1

0.6

3.1

0.7

6.5 6.8 6.4

3.5

India China Europe North America Asia Global

Potential forsignificant

growth

(1)

9.4% 7.1% 4.4% 3.7% 3.6% 5.4%

Copper Consumption per Capita CAGR: 2010-2014 (% ) 2010 (kg) 2014 (kg)

GDP and infrastructure grow th translating into high grow th in metal consumption

13


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Commercial Energy Opportunity

8588

93

101

109 110

58 58

64

69

7578

8287

91

97

817878

7368

6572

68

97-98

98-99

99-00

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

Demand ('000 MW) Supply ('000 MW)

India: continued pow er shortageIndia energy deficit peak capacity

618

2,227

8,795

2,701

2,032

1,841

1,684

478Africa

India

China

Middle East

Latin America

Asia

OECD

World Average

Source : Ministry of power Source : World Energy Statistics , 2008

Per capita consumption

14


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Itinerary

India Grow th

Strategy

Operations


Summary

15


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Corporate and Financial Strategy

Optimise performance of

existing assetsRationalise group structure

P ursue organic

grow th opportunities

Leverage established skills & seek additional investment

opportunities

Robust financial discipline to w ork w ithin investment grade rating metrics

Fund raising through combination of

equity and debt from diverse sources

Maintain robu st liquidity and

balanced debt maturity profile

Corporate Strategy

Financial Strategy

16


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17

Industry Leading Organic Growth

2008-09 production

Aluminium 462 ktpa

617 ktpaZinc-Lead

Iron Ore 16 mtpa

CommercialEnergy

376 mu

Silver 3.38 m oz

CopperIndia

313 ktpa

CopperZambia

133 ktpa

Sustainable cost

Lowest decile2,500 ktpa

Low est quartile1,065 ktpa

Lowest quartile50 mtpa

5,500 MW *

Co-product16 moz

Exit capacity

Lowest quartile800 ktpa

Low er half 400+ ktpa

Target

* Includes 2400MW at Jharsuguda, 1980MW at Talwandi Sabo and 1,120MW surplus at BALCO, MALCO and HZL wind power

Completion

2012-13

2010-11

2012-13

2013-14

2012-13

2011-12

2011-12


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18

Continued Focus on Exploration

Hind ustan Zinc

- 46.3+mt addition in R&R (4.0mt contained metal) in

FY2009

- Current R&R of 272mt (31.5mt contained metal)

mine life of 25 yrs)

Sesa Goa

- 57.8+ mt addition in R&R against depletion of 15.8mt

in FY2009

- Current R&R of c.310mt (240mt of Sesa and 70mt

from Dempo Acquisition)

KCM

- 16+ mt addition in R&R 471mt of R&R, avg. grade of

2.5%, 12mt of contained Cu- 25+ years average mine life

310

176.02

449.8

470.8

272.2

100 250 400 550

KCM

HZL

Sesa Goa

2006 2009

Reserves and Resources (million tonnes)

Significant Mine Life evenat Full Capacity

Adding much more resourcesthan mining out

Reserves and resources as of 31 March 2009


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19

Disciplined Approach to Acquisitions

Acquisition P hilosophy

Acquisitions in similar lines of business

Assets that offer Vedanta transformational opportunity by reducing cost and and/or substantially growing volume

Sesa Goa Acquisition - Iron Ore

Acquired 51% stake in Sesa Goa in 2007 for US$ 981 millionNatural fit for Vedanta - leverage mining and project management skills to grow production and reduce costs

Increased production from 10 mt in FY 2007 to 16 mt in FY 2009 with nominal capex

Leveraging the platform to become 50mtpa iron ore producer by FY 2013

Dempo - Bolt-on Iron Ore Acquisition

$368m acquisition of Dempos iron ore assets completed in June 2009

Mines, mining leases and related infrastructure in Goa is complementary to existing assets

Significant scope for synergies with Sesa operations, especially in transportation and logistics

Konkola Copper Mines, Zambia

180 kt integrated copper producer acquired in 2004

Opportunity - unlock potential of KDMP and upgrade smelter

Investing $1.1bn to increase production to 435kt by FY 2012, and lower costs to c. $1/lb


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20

Structural Low Cost Advantage

Projects Capex CapacityVedantaAverage

GlobalAverage

Alumina $1.0bn 1.4 mtpa $725/t $887/t

Aluminium $1.1bn 500 ktpa $2,200/t $4,557/t

CaptivePower Plant

$1.0bn 1,215 MW $825/kw $1,500 to$2,000/Kw

Sustainable competitive position

Operations P rojects

World classResources

Quality / ExperiencePeople

Continuousimprovement, Value

from by-products

OperationalExpertise

Mining , pow er, smeltingIntegratedOperations


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Disciplined Financial Policies

ProjectBenchmark capital costs and timeframes

Conservative approach to capital allocation

Response toDownturn

Project Deferral/cost reduction of $5.3bn

Closed down high cost aluminium smeltersat BALCO and MALCO

Sale of surplus energy at attractivemerchant tariff

Acquisition

Selective acquisitions in the same line of Business

Underperforming assets withtransformational opportunity

Funding

Pre-funding of capex

Access to diverse capital markets

Liquidity

$6.8 bn of Group cash at 31 Dec 2009

Well balanced debt maturity profile

ConservativeFinancialMetrics

Net debt to EBITDA


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22

Itinerary

India Grow th

Strategy

Operations


Summary


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23

ALUMINI UM OPERATIONS


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24

Aluminium Overview

Reserves and Resources of 116mt 38 mtat Balco and 78 mt at NiyamgiriMoU with Orissa state for supply of 150 mtof Bauxite at VAL

Phase I: Current alumina refining capacity of 1.4 mtpa; Capacity expected to increase to2.0 mtpa by Q4 FY2010

Phase II: Additional 3.0 mtpa by mid-2011AluminaRefinery

VAL: Current aluminium smelting capacity of

250 ktpa, to increase to 500 ktpa by Q4FY2010 and further addition of 1,250 ktpa bySeptember 2012BALCO: Current capacity of 245ktpa, 325 ktaddition by September 2011

AluminiumSmelter

Capacity post expansion: 3,525 MW (300

MW in Lanjigarh , 1,215 MW in Jharsugudaand 2010 MW at Balco)Coal linkages in placeDeferred 1,980 MW CPP at JharsugudaCaptive

Pow er Plants

Niyamgiri mine andLanjigarh refinery

Jharsuguda Aluminium Smelter

1

Captive Power Plant

2

Orissa

Lanjigarh

Jharsuguda2

1

1

India has 4 th largest reserves of coal (c.253 bn t) and4 th largest reserves of bauxite (c.2.4 bn t) in the w orld (1 )

Note. 1. Source : Investment Commission of India

BauxiteMines


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Bauxite Alumina

Clearly Defined Path to 2.5 mtpa

116.2 mt 5.0 mtpa

Bauxite MinesAluminaRefinery

Aluminium

2.5 mtpa

AluminiumSmelter

Received Supreme Court of Indias approval : August2008

Final permit expected forNiyamgiri hills bauxitemine : End FY 2010

1.4 mtpa refinery :Current Capacity

0.6 mtpa refinery de-bottlenecking ; Q4 FY2010

3.0 mtpa : Mid 2011

245 ktpa at Balco and 250ktpa at VAL : Current capac i ty

250 ktpa at VAL : Q4 FY

2010

325 ktpa at Balco: Q2 FY2012

1,250 ktpa at VAL : Q2FY2013

Note: Bauxite:150mt MOU with Orissa GovernmentBalance smelter capacity through debottleneckings

540 MW : Currentcapacity BALCO

1,215 MW VAL(Jharsuguda) : Last two

units to be commissioned: Q4 FY2010

300 MW VAL (Lanjigarh) : Current 90 MW, balance210 MW :Mid-2011

1,200 MW at Balco , firstunit to be commissioned: Q3 FY 2011 and fullcompletion by Q2 FY2012

Power

3,255 M W

CPPs


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Comparison of Global Aluminium Producers

Operating P arameters Alcoa Rusal Chalco Vedanta

Alumina refining capacity ktpa 18,202 14,000 11,077 5,000

Aluminium smelting capacity ktpa 5,088 4,586 3,991 2,500

2010 Etimated production ktpa 3,479 4,193 3,579 NM

2010 Estimated costs US$/t 1,569 1,325 1,811 900-1100

Source: Vedanta for VAL numbers, Brookhunt for other companies

1. Post expansion capacity

2. Alumina cost of $250 (2x$125) and smelting cost of 650-850 based on commodity cycle/input price

2

1


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ENERGY OPERATI ONS


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Competitive Advantage in Energy

Experienced Project Teams Building power plants since 1997 Have built and currently building 8,800Mw

power plants Benchmark capex costs and timelines

High Performing strategically located PowerPlants Operating capacity c2,500 Mw c. 96% PLF at operating power plants

Major plants located in coal rich belt andTalwandi Sabo in power starved state Early mover advantage currently realising

c.10 cents per unit

Coal Sourcing India has abundant coal Linkages in place 323 mt coal blocks under development Transport infrastructure being further

strengthened to improve coal efficiency

States with > 25 billion tons coal reserves

States with > 8 billion tons coal reserves

Korba,Chattisgarh

Jharsuguda,Orissa

Source: Ministry of Coal

Strategically Located in Coal Rich Parts of I ndia

Talwan di -S ab o -Pu n jab


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981

234141

H1 09 H2 09 H1 10

Commercial Energy - Performance

59.1

25.4

7.1

H1 09 H2 09 H1 10

Energy Sales

EBITDA ($mn)

2,400 2,400 2,400493

493 493 493 493660

1,980

2,400600

2010e 2011e 2012e 2013e 2014e

Talwandi Sabo Capacity

Existing C apacity (Balco,Malco and Wind Power)

SEL Capacity

Energy capacity (MW )

Note: (1) Capacities in 2010e and beyond refer to exit rates

Power Sales (MU)

Q3 FY20112,400 MW Thermal IPP

Talwandi Sabo

Jharsuguda

Q2 FY 2014

Completion

1,980 MW Thermal IPP

Expansion projects Expected

- first unit to be commissioned byQ4 FY 2010

- first unit to be commissioned by

Q4 FY2013; 660 MW*3, Super-critical

Existing Capacity

-BALCO :270 MW

-MALCO : 110 MW (Expanded to 125 MW)-Wind Energy :123 MW

Tota l exce ss c a p a c ity at BALCO : ~ 1,120 MW


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ZINC - LEAD - SILVEROPERATIONS


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World Class Zinc Mining AssetsRajpura Dariba Mine

Lead-Zinc Ore R&R: Reserves:7.4MtResources: 19.4 MtZinc Grade: 4.98%Lead Grade: 1.44%Ore Production Capacity:

0.9 mtpa.

Sindesar Khurd Mine

Lead-Zinc Ore R&R: Reserves:6.4MtResources: 50.2 MtZinc Grade: 4.84%Lead Grade: 2.29%Silver Grade: 176 ppmOre Production Capacity:0.3 mtpa. W ill increas e to 1.5mtpa

Lead-Zinc R&R:Reserves 7.2 MtResources: 48.5MtZinc Grade: 3.34%Lead Grade: 2..01%Ore Production Capacity: 1.2 mtpaCPP: 80 MW

Zaw ar Mining Complex

Rampura Agucha Mine

Lead-Zinc Ore R&R: Reserves:67.9 MtResources: 50.8 MtZinc Grade: 13.09%Lead Grade: 1.91%Ore Production Capacity:5.0 mtpa. Will increase to 6.0mtpa

At expanded capacity of 10mt of ore per year, currentreserve and resource base is sufficient for 27 years

Resources: 9.01 Mt,Avg: 10.6%, Zn,1.7% Pb0.3 mtpa Capacity

Kayar Mine (Planned)


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World Class Zinc Smelting AssetsChanderiya Smelting Complex

Pyrometallurgical Lead Zinc Smelter:105,000 tpa Zinc35,000 tpa Lead 150 tpa SilverHydrometallurgical Zinc Smelter: 420,000 tpaZincAusmeltT M Lead Smelter: 50,000 tpa Lead

Captive Power Plant: 234 MW

Zinc Smelter Debari

Hydrometallurgical Zinc Smelter:88,000 tpa Zinc

Hydrometallurgical Zinc Smelter:56,000 tpa Zinc

Zinc Smelter Vizag

Dariba Complex Phase III

Hydrometallurgical Zinc Smelter:

210,000 tpa ZincLead Smelter100,000 tpa LeadCaptive Power Plant: 160MW

Note: Dariba Smelting Complex is under implementation

Wind Pow er plant

123MW in Gujarat and Karnataka


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58 60

426552

85 185

669

879484612

754

1,064

2008 2009 2010e 2011e

Production Lead (kt) Production Zinc (kt)Capacity Lead (kt) Capacity Zinc (kt)

315 314 346 389375

311337281271213

906 847

672741 782

H1 08 H2 08 H1 09 H2 09 H1 10

Mined Metal (kt) Refined Metal (kt) Zinc C ash C ost ($/t)

Zinc-Lead-Silver

373154.2

451.2639.7740.4

77%

66%58%

36%

57%

H1 08 H2 08 H1 09 H2 09 H1 10

EBITDA ($mn) EBITDA Margin

Production and cash costs

EBITDA

Production and proposed capacity


2013- Kayar Mine (0.3 mtpa)

Mid 2010- 160MW CPP

Mid 2010- Rampura Agucha (5 to 6mtpa)

- Smelter Expansions

Progressively from 2010 to 2012- Sindesar Khurd (0.3 to 1.5mtpa)

Mine Expansions

Mid 2010- 100ktpa lead smelter

Mid 2010- 210ktpa zinc smelter

Mid 2010

Completion

- Silver refinery

Expansion projects Expected

Note: (1) First production from mid 2010


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FY 2008-09 production 3.4 million ounces, contributing

USD 45 million in EBITDA

Silver production will increase to16.1 million ounces in

2013, post completion of ongoing expansion projects

Increased silver production is attributable to

Increased mine volumes from Sindesar Khurd Mine

which is rich in Silver (Average Silver grade is 176 ppm

in ore)

Increase in mining production

Improvement in silver recovery in smelters & mines

Silver is treated as co-product in cost of production

computation, thus entire 16.1 million ounces of silver

value travels to the bottom line

At current price this implies an EBITDA of ~$290 millions

38

14 16

2010e 2011e 2012e 20

Silver production (million ounces)

Silver performance


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IRON ORE OPERATONS


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Region w ise share in total production volumes

Note: All figures are in million tonnes (Mt)Source: Metalytics* Actual Sesa production

50 mtpa of Iron Ore Production 2012

Sesa is on course to be w orlds top five ironore mining companies

Rank Company Mt

1 Vale 253.1

2 Rio Tinto 217.6

3 BHP Billiton 137.0

4 Anglo American 42.0

5 FMG 35.0

6 Cliff Natural Res 32.3

7 Metalloinvest 32.0

8 NMDC 31.0

9 CSN 30.9

10 ArcellorMittal 30.6

11 Metinvest 28.5

12 SAIL 25.0

13 Sesa - Vedanta 18.5*

14 LKAB 18.0

Iron Ore production Ranking2009

8.5 11.2201.9

2.8

10

10

22

10

0

20

40

60

FY2008 FY 2009 FY 2012

Goa - Sesa Karnataka Orissa Goa - Dempo

12.4

50.0

16.0

2 0 0 % g

r o w t h


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Iron Ore Operations

3.77.6 7.1 8.8

8.2

H1 08 H2 08 H1 09 H2 09 H1 10

Production (mt)

EBITDA ($mn)

Production

Note: (1) EBITDA for H1 2008 represents EBITDA for post acquisition period of 5 months

130.4

234.2

322.9

507.5

78.1

H1 08 H2 08 H1 09 H2 09 H1 10

Prod uction and Capacities

12

16 2530

40

50

2008 2009 2010e 2011e 2012e 2013e

Production (mt) Exit C apacity (mt)


Expansion projects

Iron Ore Expansion

- Expand to 50mt by 2013

Pig Iron Expansion

- 375 kt; c$150 million cost

- Completion by Mid 2011

Notes: (1) Capacities for H1 2008 represents capacity for post acquisition period of five months(2) Capacities in 2010e refer to exit rate


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COPP ER OP ERATI ONS


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339313

400

800

2008 2009 2010e 2012e

Production (kt) Exit C apacity (kt)

Copper-India and Australia

145.5

70.062.3

182.2231.4

H1 08 H2 08 H1 09 H2 09 H1 10

169172 167149

164

5.9

10.0 10.9

(4.9)(2.4)

H1 08 H2 08 H1 09 H2 09 H1 10

Production (kt) Estimated Production (kt)Cash smelting costs (USc/lb)

EBITDA ($mn)

Copper India Production and cash costs (1 ) Copper India production and proposed capacity (1)


Copper India Expansion

400 ktpa Smelter and 160 MW captive power plant

- ISA Technology Same as existing Smelter

- Project Cost ~$500 million

- Completion by mid 2011


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KCM - Resources and Mine LifeKonkola Mine Tier 1 resource with one of the largest open-ended high grade ore body

Nchanga mine life enhanced through Upper Ore Body (UOB) project

Large stock pile of refractory ore (CRO) plant scale process ability established lowcost operation

Focus on exploration 40,000m drilling per year til l 2012

Significant additions in reserves expected over next tw o years

AreaReserves & Resources Cont. Cu

AverageGrade LoM

(Million T) (Million T) % YearsKonkola Underground 228 8.1 3.6% 30+Nchanga Open P its 171 2.4 1.4% 12+Nchanga Underground 72 1.5 2.1% 22+Total 471 12.0 2.5%Tailings 80 0.6 0.7% 10+Refractory Ore (CRO) 150 1.3 0.9% 16+

Note : As of 31 March 2009


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KCM -Projected Ramp-Up and Key milestones

66

79

Exit capacity

275 kt

133 kt

Production 400+ kt350+ kt

TLP 4 ProjectOpening of open pit mine(COP-A)Nchanga Smelter achievesfull ramp-up

KDMP Mid-shaft loadingCRO Project (50Ktpa)

Nchanga undergroundUOB project2nd Cobalt recoveryfurnace projectNew expanded Nchanga

ConcentratorOpening of open pit mine(Mimbula and Kakosa)

Key Milestones

FY 2009 FY 2010 FY 2011FY 2012

KDMP developmentramp-upKDMP Bottom shaftloadingTLP 5 Project


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KCM - Investment Cornerstones

Caters to enhanced mining out putImproved recoveryImproved Concentrate grade

7.5 mtpaprocessing

capacity

UnderDevelopment

Newconcentrator atNchanga

P roject Description Capacity Status

New smelter atNchanga

State-of-the-art technologyBenchmark Sulfur Capture 311 ktpa Commissioned1

KDMP

Enhanced mining up to 1,500 M depthMine life extension to 30 years 7.5 mtpa at

3%+ Cu100% sinking

for MSL (95% of total) completed

2

Newconcentrator atKonkola

Caters to enhanced mining out putImproved recovery

Improved Concentrate grade

6 mtpaprocessing

capacityCommissioned3

TLP 4 ExpansionIncrease capacity at current facility

75 Ktpa UnderDevelopment4

CRO project atNchanga 50 Ktpa

UnderDevelopment

Harnesses 150mt Refractory ore stockpile

Uses entire acid from Nchanga Smelter

5

6


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KCM -Performance

1.92

2.88

2.22

1.69

FY08 H1 09 H2 09 H1 10 FY10

Manpower Power & fuel

Raw materials & consumables Repairs & maintenance, othersAdministration Target exit cost

Cost Reduction Drivers

Increased production

Cost mix change with lower-cost CRO / TLPproduction

Restructuring with associated manpowerreduction

Bringing in world class contractors

Higher recoveries from new concentrators;higher by-product credits from cobalt

Overall disciplineCosts peaked in mid-2008 in part due tocommodity inflation and FX fluctuations

Production stabilized and ramp-up with newsmelter

Production impacted by KDMP shaftdevelopment

1.25 to1.35

Note : cash cost in $ / lb

78

60

737179

1.90 1.922.88

2.221.69

H1 08 H2 08 H1 09 H2 09 H1 10

Production (kt) Cash Costs ($/lb)


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Itinerary

India Grow th

Strategy

Operations


Summary


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Sustainable Development Our Approach

Environmental StewardshipRespect for nature, enhanced resource conservation and use of environment friendly technology are embodied in our working

EmpoweringCommunitiesCommunities are integral toour business. Committed toenhancing the quality of lifeof the communities near ouroperations and creating self sustaining communities. Wework to gain and nurtureour social license to operatein the host communities

Nurturing PeoplePeople are our key assets.We are committed to build aflexible, flat and learningorganization with anengaged and highperforming work force. Webelieve in nurturing andmentoring leaders fromwithin. Growth based onmeritocracy, performanceand integrity

Health and SafetyWe are committed to providing a safe, secure and healthyworkplace by using the best technology and practices


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Sustainable Development HSE PerformanceSafety

LTIFR for 2008-09 at 1.67 viz 5.5 during 2004-05 a reduction of 70% during 4 years

Tragic accident at BALCOSEPCO CPP Project site in September 2009

Association with safety consultant / auditors British Safety, DuPont, Chilworth, IRCA, E&Y, KPMG

Water

Continuous reduction in specific water consumption across businesses since 2004-05.Reduction over last 4 years HZL 50% BALCO 47%

SIIL 12%

Energy

Continuous reduction in specific energy consumption across businesses since2004-05. Reduction over last 4 years HZL 44%

BALCO 36% SIIL 20%

123 MW Wind Power Project

65 MW of Waste heat based energy generation capacity

5.5

3.84

2.511.91 1.67

2004-05 2005-06 2006-07 2007-08 2008-09

LTIFR

37.4731.85

25.8922.65

16.62

2004-05 2005-06 2006-07 2007-08 2008-09

Specific water consumption (m3/MT)

101.193.36

74.07 70.87 68.21

2004-05 2005-06 2006-07 2007-08 2008-09

Specific energy consumption (GJ/MT)


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Sustainable Development CSR Performance

Key outcome /Impact

427 villages, 2.5 million people positively impacted

75 villages under the integrated Village Development Program

1,700 Child care centre benefiting over 100,000 children (upto 6 years)

2 million vocational training hours for the unemployed rural youth

45,000 persons enrolled for computer education and adult literacy

1,337 Self Help Groups, 19,000 members, earnings supplemented180,000 children covered under the Mid-Day meal programme

3,360 farmers trained in agricultural improvement program

Health care services outreach to 1,500,000 people

82 NGO partners, 96 CSR personnel and 454 extension workers


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Itinerary

India Grow th

Strategy

Operations


Summary


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Summary

In dustry leading organic grow th under implementation

Delivering India's natural resources and feeding I ndia's rapid demand grow th

Structural low cost advantage and asset optimisation

Strong financial position for maximum financial flexibility

Ongoing rationalisation of the group structure


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APPENDIX

G S


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Konkola CopperMines (KCM)

ZincCopperAluminum Power

53.9%

Vedanta Resources(Listed on LSE)

Madras Aluminum(MALCO)

93.9%

51.0% 100%64.9%

70.5%

29.5%

Hindustan Zinc(HZL)

(Listed on BSEand NSE)

AustralianCopper Mines

BharatAluminium

(BALCO)

Sterlite Energy(DRHP filed)

100%

Sterlite Industries(Listed on BSEand NSE and NYSE)

VedantaAluminium (VAL)

79.4%

Sesa Goa(Listed on BSEand NSE)

Iron ore

57.1%

3.1%

VS Dempoand Company

Private Limited

100%

Group Structure

Structure as at 30 September 2009

vedantacorporatepresentation 2010-02-22 final%5b0%5d

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