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
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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
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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
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Itinerary
ZincCopper Aluminum Power Projects Under Development Captive Power PlantIron Ore
Rampura Agucha Mine
Debari smelter Dariba and Zawar Mines
Lanjigarh mine and refinery (VAL)
Jharsuguda Aluminum (VAL)and Commercial Power project
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
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Other Operations
ZincCopper Aluminum Power Projects Under Development Captive Power PlantIron Ore
Rampura Agucha Mine
Debari smelter Dariba and Zawar Mines
Lanjigarh mine and refinery (VAL)
Jharsuguda Aluminum (VAL)and Commercial Power project
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
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Other Operations
ZincCopper Aluminum Power Projects Under Development Captive Power PlantIron Ore
Debari smelter
Lanjigarh mine and refinery (VAL)
Jharsuguda Aluminum (VAL)and Commercial Power project
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
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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
Debari smelter Dariba and Zawar Mines
Vizag smelter
Tuticorin smelter
Lanjigarh mine and refinery (VAL)
Jharsuguda Aluminum (VAL)and Commercial Power project
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
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Itinerary
India Grow th
Strategy
Operations
Sustainable development
Summary
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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
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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
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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
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Itinerary
India Grow th
Strategy
Operations
Sustainable development
Summary
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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
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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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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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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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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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Itinerary
India Grow th
Strategy
Operations
Sustainable development
Summary
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ALUMINI UM OPERATIONS
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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
Note: (1) Capacities in 2010e and beyond refer to exit rates
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)
Note: (1) Capacities in 2010e and beyond refer to exit rates
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)
Note: (1) Capacities in 2010e and beyond refer to exit rates
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
Sustainable development
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
Sustainable development
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