Vedanta Limited · NSE:VEDL
Vedanta — Investor Presentation (September 2012)
52 slides from Vedanta's investor presentation, Sep 25, 2012
Slide 1: Investor Presentation
Investor Presentation 25th Sep 2012 1
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer This presentation 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 forward look
Slide 3: India's Mining Potential
India’s Mining Potential Global Ranking of India’s Natural Resources1 2012E Aluminium Production (mt) Bauxite 6 21.7 (3.3 Billion tonnes) Coal 4 (284 Billion tonnes) 4.9 4.0 4.1 1.9 1.7 1.6 1.5 1.1 0.8 1 Based on reserves Source: Investment Commission of India Vedanta well positioned to develop and
Slide 4: Orissa has huge, high quality Bauxite Deposits
Orissa has huge, high quality Bauxite Deposits Orissa has vast reserves of high quality bauxite 1,442 mt of recoverable deposits 56.5% of India’s bauxite reserves 900+mt bauxite deposits located within 60km radius of Lanjigarh Predominantly gibbsitic, amenable to low temperature/ low press
Slide 5: Coal Reserves
Coal Reserves India has the 4th largest reserves of coal across the world which is approximately 284.37 billion tonnes out of which 69.15 billion tonnes reserves are located in Orissa (Source: coal.gov.in). 6 India is also the third largest producer of coal across the world of approximately 585
Slide 6: Global Alumina Cost Curve
Global Alumina Cost Curve * Source : Harbor Intelligence 6
Slide 7: Global Aluminium Cost Curve
Global Aluminium Cost Curve Aluminium Smelter Costs (C1 Cash Cost Curve) 3,000 Al Composite cost - c1 cash cost ($/t) BALCO VAL ($ 1,910/t)1 2,000 ($ 1,845/t)1 1,000 25% 50% 75% 0 Cumulative Production (Percentile) 7
Slide 8: Vedanta Aluminium & Power Business
Vedanta Aluminium & Power Business METAL & POWER Alumina Metal Power 2010 BALCO - 0.57 MT MW VAL & 3615 - 1.75 MT SEL JSG MW 300 VAL LAN 5 MT - MW TSPL 1980 - - MW 8
Slide 9: Premium Benchmarking – Premium over LME (Primary Metal)
Premium Benchmarking – Premium over LME (Primary Metal) Q2 CY12 over Q2 CY11 Comparison 9 Source : Marketing Intelligence / Company Reports / Reuters
Slide 10: Product Mix Benchmarking
Product Mix Benchmarking Properzi Properzi Ingots / ALBA RUSAL Ingots / HYDRO Foundry, Slabs, Foundry, 7% 11% 8% Slabs, Ingots, Liquid Slabs, Metal, 20% 24% 16% Billets, 21% 10% Wire Ingots, Ingots, Billets, Rods, Billets, 21% 36% Wire 63% 20% 35% Rods, 8% NALCO Rolled VEDANTA (VAL + BALCO) HINDALCO
Slide 11: Project Cost Benchmarking
Project Cost Benchmarking 1. PROJECTS CAPACITY PROJECT COST Aluminium 1.75 mtpa $ 4370 Mn USD Captive Power 1215 MW $ 950 Mn USD Alumina 5.0 mtpa $ 2585 Mn USD 2. TECHNOLOGY & EQUIPMENTS: Comparable to all best global plants. 3. PROJECT COST COMPARISON OF GLOBAL PROJECTS WITH OUR PROJECTS: a) Alumin
Slide 12: BALCO - KORBA
vedanta resources plc 12
Slide 13: BALCO : Pot Line
BALCO : Pot Line vedanta ~~ ~~ 13
Slide 14: Operational Highlights
Operational Highlights Production Hot metal production from Pre bake smelter at its rated capacity Continuous enrichment in product mix (Value added Product - Aluminum Rods and Rolled Products) 2010-11 - 89 % 2011-12 - 96 % Hot Metal Production cost of $1,910/t in Q1 FY2013. Net effectiv
Slide 15: Way Forward towards enhanced cost competitiveness
Way Forward towards enhanced cost competitiveness Key drivers for COP reduction:- Current increase and further Improvement in Current Efficiency. Mining from captive coal block. Continuous improvement in Logistics. Manpower rationalization initiatives to continue in order to reach global ben
Slide 16: Recent Accolades
Recent Accolades Winner of International Green Apple Award, UK , for Innovation (2012, 2010 and 2009) IMC Ramakrishna Bajaj National Quality Award- (2011, 2010) Indian Manufacturing Excellence Award- (2011, 2010, 2009) CII- environmental Best Practices award – (2011) Best Prax Management G
Slide 17: Innovations Applied For Patent
Innovations Applied For Patent Aluminium Reduction Cell Fuse Technology (India as well as US Patent) -BALCO developed a fuse, with which it is possible to power on pots at full load without reducing the line amperage to 0 KA. This innovation was critical to reduce the production losses during the
Slide 18: Aluminium Smelter 325 ktpa & 1200 MW Power Plant - BALCO
Aluminium Smelter 325 ktpa & 1200 MW Power Plant - BALCO 18
Slide 19: Smelter & Power Expansion Project
Smelter & Power Expansion Project SMELTER: Capacity – 325 ktpa Pot Room No. of pots – 336 Pot amperage – 340 kA Cast House Ingot Casting – 150 kt Wire Rod – 200 kt POWER: Capacity – 1200 MW (4x300 MW) Synchronization Schedule Unit # 1 – Q 3 FY 2012-13 Connectivity to National Grid throug
Slide 20: Captive Coal Block
Captive Coal Block 211mt reserves at Durgapur II Taraimar Block, 70 km from Korba Major Mile Stones Achieved :- TOR approval by MOEF Mining plan approved by Ministry of Coal In-principle mining lease approval by state government Administrative approval of mining lease by central govt. En
Slide 21: Alumina Refinery - Lanjigarh
Alumina Refinery - Lanjigarh 21
Slide 22: Lanjigarh Project
Lanjigarh Project 1.0MTPA Alumina Refinery consisting of two streams Government of Orissa committed to provide 150 Million T of bauxite 90MW (3x30MW) coal fired co-generation power plant Associated infrastructure Railway link Port infrastructure Water supply Power Link for black start up
Slide 23: Location Map: Refinery
Location Map: Refinery PLANT SITE 23
Slide 24: Present Status
Present Status Plant fully commissioned & stabilized. Achieved 95% Plant availability. Alumina quality as per best International norms achieved. Zero discharge system implemented. 100% material transportation by Rail. ISO-9001,14001, OSHAS-18001 & En 50001 accreditation obtained. Zero
Slide 25: Lanjigarh Plant- At a glance
Lanjigarh Plant- At a glance 25
Slide 26: Lanjigarh Plant- At a glance
Lanjigarh Plant- At a glance 26
Slide 27: Lanjigarh Township- At a glance
Lanjigarh Township- At a glance 27
Slide 28: Awards & Recognition
Awards & Recognition National Award for Excellent Energy Efficient Unit in 2011 and 2012 National Award for Excellent Water Management unit-2011 St. John Ambulance Annual Award 2007-08 FE –EVI, Green Business Leadership award 2009-10 28
Slide 29: Aluminium Smelter - Jharsuguda
Aluminium Smelter - Jharsuguda 29
Slide 30: Jharsuguda – Bird's Eye View
Jharsuguda – Bird’s Eye View 30
Slide 31: Aluminium: Jharsuguda
Aluminium: Jharsuguda Locational advantage Proximity to coal mines for cost efficient power generation Well connected by road and rail Close to eastern ports Proximity to Lanjigarh Alumina source Capacity 2 lines of 250 kt each, adding to 500kt and 1215 MW CPP 4 lines of 312.5kt each
Slide 32: Aluminium smelter – 500kt & CPP - 1215 MW
Aluminium smelter – 500kt & CPP - 1215 MW Pot Room: No. of lines – 2 No. of pots in each line – 304 Pot amperage – 330 kA Metal production – 500kt PA State of Art GP -330 kA Potline technology 1215 MW Captive Power Plant 135 MW* 9 units Coal based KPS as maintenance partner 32
Slide 33: Aluminium smelter expansion – 1250kt
Aluminium smelter expansion – 1250kt Pot Room: No. of lines – 4 No. of pots in each line – 336 Pot amperage – 340 kA Metal production – 1250kt PA Project 90%+ completed 33
Slide 34: Alumina Sourcing
Alumina Sourcing For VAL 500kt PA – Alumina requirement of 1061kt PA 480kt PA Domestic Alumina is sourced from Lanjigarh Refinery through BTAP transportation Balance through Import via Vizag & Kakinada ports To manage future volumes and effective handling of Alumina highly mechanized port fa
Slide 35: Jharsuguda-Township at a glance
Jharsuguda-Township at a glance 35
Slide 36: Commercial Energy
vedanta resources plc 36
Slide 37: Snapshot – Jharsuguda Project
Snapshot – Jharsuguda Project Key highlights Gross Capacity 2,400 MW (4 units x 600) Technology Thermal, Sub-critical Coal linkages for the entire 2,400MW achieved Fuel Sourcing 112 million tons coal block allocated (~ Equivalent to Coal Consumption of 17 years for 1000 MW) Water Allocation
Slide 38: Snapshot – Jharsuguda Project
Snapshot – Jharsuguda Project Key highlights 220kV interconnecting Transmission Line between CPP and IPP is completed and line is charged & capable to evacuate 450 MW to State Grid. LILO 1 & LILO 2 connectivity of 400kV IPP switch Evacuation yard to PGCIL 400kv Transmission Line is capacity comp
Slide 39: Snapshot – TSPL Project
Snapshot – TSPL Project Key highlights Gross Capacity 1,980 MW (3 units x 660) Technology Thermal, Super-critical Fuel Sourcing Coal linkages is in place Off Take Arrangement All power to PSPCL Water Allocation Allocation in place. Conveyance system completed Land Completed Railway Sidin
Slide 40: Snapshot – TSPL Project
Snapshot – TSPL Project EPC Key highlights Engineering completed 83% material received 23 out of 28 shipments dispatched from China 94% excavation completed Construction 75% concreting completed Status 34% Erection completed Boiler Hydro Test expected by Nov’12 Generator Stator lifti
Slide 41: Manpower Distribution-Aluminium & Power
Manpower Distribution-Aluminium & Power Unit Manpower Education Manpower Jharsuguda 2630 Graduate 2041 Engineer 1939 BALCO 1320 CA/ICWA 85 Lanjigarh 543 MBA 228 Others 200 Total 4493 Total 4493 Manpower Qualification Distribution Graduate Engineer CA/ICWA MBA Others 3000 5% 5% 2500 2% 2000 1500 Jhar
Slide 42: Key Value Drivers
Key Value Drivers Asset Optimization of assets to achieve higher PLF & metal volume to get Optimization reduction in unit fixed cost. Improvement in current efficiency ,metal purity, power & other Operational consumption to the global best. Efficiency Stabilization and improvement in efficiency para
Slide 43: Corporate Social Responsibility
Corporate Social Responsibility Health Community Education Asset Focus Area Plantation Livelihood 43
Slide 44: Our Vision: To enhance the quality of life & economic well-being of communities
Our Vision: To enhance the quality of life & economic well-being of communities Our Approach Our Focus Social Investment – Health, Education & Embedded in our business philosophy with well Livelihood defined governing structure & policy. Bio Investment – Water Harvesting, Agriculture &Social F
Slide 45: Empowering Communities Impact & Outcome: 2011-12
Empowering Communities Impact & Outcome : 2011-12 Education 40,000 children provided with hygienic and nutritious food in 351 schools through Mid Day Meal (MDM) Kitchen 50,000 children covered under Vedanta Bal Chetna Anganwadi Centers 651 school children provided with scholarship support to s
Slide 46: Sustainable Development - Impact & Outcome: 2011-12
Sustainable Development - Impact & Outcome : 2011-12 Livelihood Enhanced livelihood opportunities by Water shed development initiatives developing 1499 hectares Land. Generated employment opportunities of 1750 youths annually by Skill upgradation training. Created sustainable livelihood avenue
Slide 47: CSR Awards & Recognition
CSR Awards & Recognition International Green Apple Silver Award for best Environmental Practices & Sustainable Development – BALCO 2008- HIV /AIDS award by TERI- GTZ – BALCO 2008 – Corporate with best CSR Practice by TEFLAS – VAL 2009 – Golden Peacock CSR Award. – BALCO 2009- HIV /AIDS awa
Slide 48: Environment Initiatives
Environment Initiatives Energy Conservation Continuous energy conservation initiatives undertaken to drop specific energy consumption. Introduction of Fuse technology, slotted anodes, online welding, regular energy audits has reduced energy consumption. Water Conservation Due to continuous wat
Slide 49: Site Visit
Site Visit JHARSUGUDA IPP (2400 MW) NEW SMELTER (1250Kt PA) PLANT I (500Kt PA & 1215 MW) 49
Slide 50: Your Safety is Important to us
Your Safety is Important to us Requested to follow the guided path & do not enter in to restricted areas PPEs shall be provided to you, kindly use it Helmet, Gloves, Glasses and Shoes are basic minimum safety requirement for all areas of the plant You are requested to follow the Leader who guid
Slide 51: Have a Safe Visit
x vedanta resources plc Have a Safe Visit
Slide 52: Thank You
vedanta resources plc Thank You 52