Vedanta Limited · NSE:VEDL

Vedanta — Vedanta Resources — Technical Presentation (March 2011)

56 slides from Vedanta's technical presentation, March 2011

1. Slide 1: Investor Presentation March 2011

   Investor Presentation March 2011

2. 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

3. Slide 3: BALCO - KORBA

   vedanta resources plc

4. Slide 4: BALCO : An Introduction

   BALCO : An Introduction „ Started in 1973 with a capacity of 100 ktpa „ Fully Integrated Aluminum Complex comprising of -Alumina refinery, Soderberg (VSS) smelter and Fabrication Plant „ 270 MW Power Plant „ Privatisation in 2001 : Vedanta acquired majority stake Journey 2001 Onwards … „ Setting up

5. Slide 5: BALCO : Smelter

   BALCO : Smelter & vedanta

6. Slide 6: BALCO : Pot Room

   BALCO : Pot Room & vedanta

7. Slide 7: BALCO : Carbon Plant

   BALCO : Carbon Plant & vedanta — TEES ere ee tehoahits-

8. Slide 8: BALCO : Power Plant – CPP 540 MW

   BALCO : Power Plant – CPP 540 MW 8

9. Slide 9: Operational Highlights

   Operational Highlights „ Hot metal production from Pre baked smelter expected to be 255 ktpa in 2010-11 against a nameplate capacity of 245 ktpa (104 % capacity utilization) „ 540 MW Power Plant currently operating at 100 % PLF „ Continuous enrichment of product mix (Value added Aluminium Product -

10. Slide 10: Way Forward towards enhanced cost competitiveness

    Way Forward towards enhanced cost competitiveness Key drivers for COP reduction „ Reduction in specific power consumption „ Current increase and improvement in Current Efficiency „ Captive mining from coal block „ Continuous improvement in Logistics „ Manpower rationalization initiatives to continue

11. Slide 11: Accolades

    ACCOLADES „ Silver certificate of Excellence – India’s Manufacturing Excellence award 2010 „ International Green Apple Award for Environmental Best Practice – Silver Winner 2009 – BALCO Fuse Technology. „ Ideas UK 2009 – For installation of Bath Hopper in GAMI pot Superstructure „ Ideas UK 2009 – Hi

12. Slide 12: Innovations Applied for Patent

    INOVATIONS APPLIED FOR PATENT „ Aluminium Reduction Cell Online cut out of pot (India as well as US Patent) -With the innovation of this technology it was possible to cut out pots at full load thereby eliminating pot abnormality in terms of operating conditions due to power outage taken for pot cuto

13. Slide 13: Aluminium Smelter 325 ktpa & 1,200 MW Power Plant - BALCO

    Aluminium Smelter 325 ktpa & 1,200 MW Power Plant - BALCO

14. Slide 14: Smelter Expansion Project

    SMELTER EXPANSION PROJECT Capacity – 325 ktpa Pot Room „ No. of pots 336 „ Pot amperage 340 KA Cast House „ Ingot Casting 150 kt „ Wire Rod 200 kt 14

15. Slide 15: Power Expansion Project

    POWER EXPANSION PROJECT Capacity – 1,200 MW (4x300 MW) Synchronization Schedule „ Unit # 1 – Q 1 FY 2011-12 „ Unit # 2 – Q 2 FY 2011-12 „ Unit # 3 – Q 4 FY 2011-12 „ Unit # 4 – Q 1 FY 2012-13 Connectivity to National Grid through 400 KV transmission line - Target Completion :March 2011 15

16. Slide 16: Captive Coal Block

    CAPTIVE COAL BLOCK „ Durgapur II Taraimar, Tehsil – Dharmjaigarh, District – Raigarh (C.G.) „ 70 km away from Korba „ Reserves 211 million tonnes Major Mile Stones Achieved :- „ TOR approval by MOEF „ Mining plan approved by Ministry of Coal „ In-principle mining lease approval by state government „

17. Slide 17: Aluminium Smelter - Jharsuguda

    Aluminium Smelter - Jharsuguda

18. Slide 18: Jharsuguda – Bird's Eye View

    Jharsuguda – Bird’s Eye View 18

19. Slide 19: Aluminium: Jharsuguda

    Aluminium: Jharsuguda „ Location 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 „ Capacities ⎯ 2 lines of 304 pots each, adding to 500 ktpa and 1,215 MW CPP ⎯ 4 lines of 336 po

20. Slide 20: Aluminium smelter – 500kt & CPP – 1,215 MW (Operational)

    Aluminium smelter – 500kt & CPP – 1,215 MW (Operational) „ Pot Room: ⎯ No. of lines – 2 ⎯ No. of pots in each line – 304 ⎯ Pot amperage – 320 KA ⎯ Metal production – 500 ktpa „ State of Art GP -320 kA potline technology „ 1,215 MW Captive Power Plant ⎯ 135 MW* 9 units ⎯ Coal based ⎯ KPS as maintenan

21. Slide 21: Aluminium smelter expansion – 1,250kt

    Aluminium smelter expansion – 1,250kt „ Pot Room: ⎯ No. of lines – 4 ⎯ No. of pots in each line – 336 ⎯ Pot amperage – 340 kA ⎯ Metal production – 1,250 ktpa ⎯ Project completed - 80 % 21

22. Slide 22: Aluminium: Positioning on Global Cost Curve

    Aluminium: Positioning on Global Cost Curve Target cost of Target costs of $1,100‐1,200/t $1,800‐1,900/t with captive with bought‐out bauxite bauxite and alumina Source: Brook hunt, 9 months FY 2010‐11 for cash cost of Sterlite/ Vedanta 22

23. Slide 23: Project Execution Philosophy

    Project Execution Philosophy „ Common package for basic and detail engineering „ Parallel engineering, procurement & construction „ Proven track record of completing projects in time and within budget „ Large packages to minimize interface & take advantage of economies of scale „ Involving the vendo

24. Slide 24: Alumina Sourcing

    Alumina Sourcing „ For VAL 500 ktpa – Alumina requirement of 1,000 ktpa „ 480 ktpa Alumina will be sourced from Lanjigarh Refinery through BTAP transportation „ Balance 520 ktpa has been planned through Import via Vizag & Kakinada ports „ Handling facilities at Port being upgraded 24

25. Slide 25: Commercial Energy

    vedanta resources plc

26. Slide 26: Vedanta's Competitive Advantage in Energy

    Vedanta’s Competitive Advantage in Energy „ Experienced management with project track record and mining expertise − One of India’s major energy producers − Procurement expertise − Access to capital „ Operating power plants with capacity of 3,934MW − Building and managing plants since 1997 − More tha

27. Slide 27: Commercial Energy - Sterlite Energy Limited

    Commercial Energy - Sterlite Energy Limited Jharsuguda 2,400 MW SEL capacity (MW) „Synchronisation −Unit 1: Q2 FY 2010‐11 −Unit 2: Q3 FY 2010‐11 −Unit 3: Q2 FY 2011‐12 −Unit 4: Q3 FY2011‐12 5,040 „Fuel arrangements −65% Coal linkage −25‐30% E‐Auction/ Forward E‐Auction −5‐10% Imported Coal „Off Take

28. Slide 28: 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 „ 112 million tons coal block allocated (~ Equivalent Fuel Sourcing to Coal Consumption of 17 years for 1000 MW) Water Allocation

29. Slide 29: Snapshot – TSPL Project

    Snapshot – TSPL Project Key highlights Gross Capacity „ 2,640 MW (4 units x 660) Technology „ Thermal, Super-critical Fuel Sourcing „ Coal linkages is in place Water Allocation „ Allocation in place. Conveyance & Reservoir work started Land „ Formalities Completed & acquisition under process Railway

30. Slide 30: Jharsuguda-Township at a glance

    Jharsuguda-Township at a glance 30

31. Slide 31: Quality of Life at Jharsuguda Township

    Quality of Life at Jharsuguda Township 31

32. Slide 32: Alumina Refinery - Lanjigarh

    Alumina Refinery - Lanjigarh 32

33. Slide 33: Orissa has huge, high quality Bauxite Deposits

    Orissa has huge, high quality Bauxite Deposits 33

34. Slide 34: Location Map: Refinery

    Location Map: Refinery PLANT SITE 34

35. Slide 35: Lanjigarh Project Profile

    Lanjigarh Project Profile „ 1mtpa Alumina Refinery consisting of two streams „ MoU with Government of Orissa to provide 150 mn tonnes of bauxite „ 90MW (3x30MW) coal fired co-generation power plant „ Associated infrastructure ¾Railway link ¾Port infrastructure ¾Water supply ¾Power Link for black sta

36. Slide 36: Present Status

    Present Status „ Both the streams commissioned and stabilised. Design flow equivalent to name plate capacity achieved. „ Achieved 95% Plant availability. „ Alumina quality as per best international norms achieved. „ Zero effluent discharge system implemented. „ All statutory environmental requiremen

37. Slide 37: Lanjigarh Plant- At a glance

    Lanjigarh Plant- At a glance 37

38. Slide 38: Lanjigarh Plant- At a glance

    Lanjigarh Plant- At a glance 38

39. Slide 39: Lanjigarh Township- At a glance

    Lanjigarh Township- At a glance 39

40. Slide 40: Health, Safety, Environment

    Health, Safety, Environment

41. Slide 41: Safety : Approach: Counselling, Coaching and Facilitating

    Safety : Approach: Counselling , Coaching and Facilitating „Qualified Safety Officer for each SBU. Implementation strategy – top driven „Centralised Safety Team to drive the safety culture of line management „Managers & Supervisors trained on safety systems „Regular Toolbox meetings & Senior managem

42. Slide 42: BALCO - Environment Initiatives

    BALCO - Environment Initiatives Energy Conservation „Due to continuous energy conservation initiatives specific energy consumption has dropped by 6 % in 2010-11 as compared to 2009-10. „Introduction of slotted anodes in place of ordinary anodes has reduced the carbon as well as energy consumption. „

43. Slide 43: Environment Management –Smelter

    Environment Management –Smelter Aluminium Smelter : √ State of the art dry scrubbing system is installed in pot rooms & bake ovens √ Adequate suction design to ensure 98 % gas collection efficiency. √ Fluoride removal efficiency of 99 % in FTP Fume Treatment Plant – Pot Rooms √ Total Fluoride emissi

44. Slide 44: Environmental Management –Smelter

    Environmental Management –Smelter 9 IMS Certified Plant (QMS-ISO-9001, EMS-ISO:14001 and OHSAS: 18001 Certification obtained for Quality, Environment and Safety Management Systems) 9 Effluent Treatment Plant (ETP) for removing Fluorides in smelter effluent 9Zero Water discharge maintained 50000 sapl

45. Slide 45: Environmental Management –Power Plant

    Environmental Management –Power Plant 9 Electro Static Precipitators of 99.98% efficiency to control particulate matter emissions below stipulated standard 9 Stack of 275 m height to ensure wider dispersion of emissions 9 Online monitors for PM,SO2,NOx & CO in all the stacks 9 High Concentration Slu

46. Slide 46: People

    vedanta resources plc 46

47. Slide 47: People

    People „ Total Strength ™ At BALCO: 4,370 employees of which 820 engineers, 1,090 fresh graduates, 70 CAs & MBAs & 2390 non graduates. ™ At Jharsuguda: 3,000 employees of which 1,500 engineers, 1,400 fresh graduates & 150 CAs & MBAs. ™ At Lanjigarh: 650 employees of which 350 engineers, CAs & MBAs &

48. Slide 48: Corporate Social Responsibility

    Corporate Social Responsibility

49. Slide 49: Empowering Communities

    . was vedanta Empowering Communities resources plc

50. Slide 50: 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 „Embedded in our business philosophy with well „Social Investment – Health, Education & Livelihood defined governing structure & policy. „Continuous Stakeholder engagement and „Bio Investment – Wat

51. Slide 51: Empowering communities – impact & outcome : 2005-10

    Empowering communities – impact & outcome : 2005-10 Education „53 company run /supported schools & colleges reaching out to 5,860 children. „46,986 children covered by 1,021 Vedanta Bal Chetna Anganwadi Centers „Computer Literacy program supported in 24 schools and covering 10,974 students. „Literac

52. Slide 52: Sustainable Development – impact & outcome : 2005-10

    Sustainable Development – impact & outcome : 2005-10 Livelihood „5,014 acres of land brought under cultivation & watershed for 1,797 farmers „7,238 women, 596 Self Help Groups „4,561 entrepreneurs trained through 204 number of trainings conducted through skill development training. Our Reach „Strate

53. Slide 53: Awards & Recognition CSR

    Awards & Recognition CSR „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 award b

54. Slide 54: Site Visit

    Site Visit Jharsuguda „ IPP (2400 MW) „ New Smelter (1250kt PA) „ Existing Smelter (500kt PA) „ CPP (1215 MW) 54

55. Slide 55: Your Safety is important to us

    Your Safety is important to us: Safety guidelines for Plant Visit ƒ Requested to follow the guided path & do not enter in to restricted areas ƒ PPEs shall be provided to you, kindly use it ƒ Helmet, Gloves, Glasses and Shoes are basic minimum safety requirement for all areas of the plant ƒ You are r

56. Slide 56: Have a Safe Visit

    & vedanta resources plc HAVE A SAFE VISIT

Vedanta Resources — Technical Presentation (March 2011) on 6ix