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Vedanta — Vedanta Resources — Investing in African Mining Indaba 2015
19 slides from Vedanta's conference presentation, February 2015
Slide 1: Vedanta Resources plc: Investing in African Mining Indaba
VEDANTA RESOURCES PLC Investing in African Mining Indaba FEBRUARY 2015
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. Any forwa
Slide 3: Tom Albanese, Chief Executive Officer
Tom Albanese Chief Executive Officer
Slide 4: Focus on Safety – Key to Operational Excellence
Focus on Safety – Key to Operational Excellence Fatal accidents and injury Fatal incidents LTIFR (per million man-hour work) rates have declined 30 1.2 26 We are implementing 25 1.0 programs to eliminate fatalities 22 0.86 20 0.83 19 and control injuries: 20 0.8 Leadership focused on a 15 0.6
Slide 5: A Global Diversified Natural Resources Company
A Global Diversified Natural Resources Company LSE-listed global diversified natural resources company Committed to safety and sustainable development Portfolio of large, long life, low cost, scalable assets Commodities: oil & gas, zinc, lead, silver, copper, iron ore, aluminium and power
Slide 6: Tier-1 Asset Portfolio
Tier-1 Asset Portfolio R&R FY2014 Competitive Position on Cost Curve Quartiles Positioning Life1 Production Capacity2 I II III IV Oil & Gas (Cairn India) 225+ 3 Top 20 global independent E&P; Platts 2013: 15 218kboepd Size of circle Fastest growing energy company globally kboepd denotes EBITDA contr
Slide 7: Building Momentum
Building Momentum Positive momentum in ramp up of existing assets and starting new capacities: Iron ore mine leases renewed in Goa & Karnataka; production expected to start shortly in Karnataka TSPL: first unit commissioned; ramping up the 2nd 660 MW unit BALCO 1200 MW power plant approval r
Slide 8: India: Attractive Fundamentals
India: Attractive Fundamentals Steel Consumption Intensity: Low, High growth phase Indian economy: Key differentiators Steel consumption per capita (in tonnes) vs. GDP per capita (in USD thousands) 1.2 Domestic-demand driven: lesser effect of South Korea global economic slowdowns on output 1.0 Ste
Slide 9: Sustainability: Integral to our Business
Sustainability: Integral to our Business Environment Significant investments (US$250mn+ over last 3 years) Indian operations signed World Business Council of Sustainable Development (WBCSD) Pledge for access to safe Water, Sanitation and Hygiene (WASH) Partnering with IUCN – Cairn India and BM
Slide 10: African Operations
African Operations Konkola Copper Mines And Zinc International
Slide 11: KCM 2014: A Year in Review
KCM 2014: A Year in Review KCM is a major employer, with 16,500 employees and contractors Nchanga mine the largest mine on the Copperbelt, based on historical production A mainstay of the towns of Chingola, Chililabombwe, and Nampundwe Vedanta has made a major contribution to KCM and Zambia
Slide 12: How the Mining Industry and Government Can Jointly Contribute to the Anti-Poverty Agenda
How the Mining Industry and Government Can Jointly Contribute to the Anti-Poverty Agenda Ensure there is no tax evasion For KCM’s part, we have willingly submitted to exhaustive tax audits and found to be fully compliant with the needs and requirements of the Zambia Revenue Authority and EITI.
Slide 13: Copper Zambia: Operational Turnaround in Progress
Copper Zambia: Operational Turnaround in Progress H1 mined metal production lower Top 20 copper mines by contained copper (mt) Konkola: 16% lower at 22kt due to equipment availability 70.0 110.0 Collahuasi, Chile2 (Glencore, Anglo American) and unanticipated challenges with Shaft #1 and #4 Escon
Slide 14: Copper Zambia: Pivot Initiatives at Konkola Mine
Copper Zambia: Pivot Initiatives at Konkola Mine 71mt, 3.2% 21mt, 33mt, 72mt, 82mt, 15mt, 3.2% 3.0% 3.3% 2.8% 3.9% The Konkola Mine has been divided into 6 separate sections for focused interventions Prioritizing Bancroft Deeps / Konkola East to improve productivity Specific measures are being
Slide 15: A world-class zinc district
A world-class zinc district Rosh Pinah Cluster African Zn Deposits by size 1 1 Contained Zn pre mining Aggeneys Cluster Opportunity to develop our integrated zinc/lead business in southern Namibia and the Northern Cape of South Africa Centred around a zinc smelter/refinery complex sourcing feed
Slide 16: Delivery on commitments
Delivery on commitments Targeted LoM Production kt Zn eq. 500 Acquired BMM, Lisheen and Skorpion Zinc in 2010 and took operational 400 control in 2011 2011 300 – Job preservation and creation 200 – Focus on commercial acumen at 100 operations - – Retain technical skills & excellence 2011 2013 2015
Slide 17: Gamsberg Mine – first phase of development
Gamsberg Mine – first phase of development Reserve of 50Mt @ 6.5% Zn, 0.5% Pb 13 year life of mine, with a further 154mt of resource available – 4Mtpa ROM open pit mine and concentrator – 78Mt of pre-stripping including V-cut access – Life of mine strip ratio of ~7 – 250ktpa Zn metal production
Slide 18: Gamsberg – large, scalable resource
Gamsberg – large, scalable resource • Gamsberg Project 1 3• Gamsberg East Underground – Current project 4.4 Mtpa ROM – Resource of 32Mt at 9.8% Zn – 250 ktpa Zn MIC – Underground option for – Current focus on Gamsberg East 2.5 Mtpa delivering this project – Possible expansion of underground by using
Slide 19: Vedanta's Priorities in Africa – Delivering on commitments
Vedanta’s Priorities in Africa – Delivering on commitments Financial support to operations Delivering an operational Actively engaged with the government turnaround at KCM VAT credit: Working with peers and government Manage costs in lights of increasing depth and declining grades and orderl
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