Slide 1: Sesa Goa Limited Investor & Analyst Site Visit
SESA GOA LIMITED Investor & Analyst Site Visit PK Mukherjee, CEO 28 September 2012 1
Slide 2: Cautionary statement and disclaimer
Cautionary statement and disclaimer This presentation contains “forward-looking statements” – that is, statements related to future, not past, events and may be interpreted as „forward looking statements‟ within the meaning of applicable laws and regulations. In this context, forward-looking stateme
Slide 3: Iron Ore Scenario
IRON ORE SCENARIO 3
Slide 4: Long term demand continues to be robust
Long term demand continues to be robust Long term demand will remain intact Urbanisation is expected to continue at a rapid pace (billion people) World urbanization is increasing Urban Population rapidly; Chinese population migration Rural Population is at its highest and India is also following i
Slide 5: Iron ore – seaborne trade is buoyed by China
Iron ore – seaborne trade is buoyed by China Chinese seaborne Iron ore trade 1600 (million tonnes) Global iron ore seaborne trade and +829 1,516 Steel is expected to increase at CAGR of ~8.7% and ~4.5% respectively. 1400 Demand is driven by the crude steel 1200 production of China which is set t
Slide 6: Global seaborne iron ore supply
Global seaborne iron ore supply Supply from Africa CHINA New force of Iron ore hub Country Specific risks +34bt R&R in West Africa Supply from India Infrastructure constraint – port, rail, etc. Regulatory scenarios 66 79 92 Advantage of proximity to 255 China Potential to tap the gap o
Slide 7: Indian iron ore mining scenario
Indian iron ore mining scenario Current Issues GOA Export Duty (Currently at 30%) Favourable for Mine to Jetty Royalties and Taxes (MMDR) transport (Avg. 15 kms) Mining and Export ban in Karnataka Low cost due to river Shah Commission, CEC, etc. transportation Temporary Suspension of Minin
Slide 8: Operations
OPERATIONS 8
Slide 9: Where we operate
Where we operate INDIA Iron Ore Operations 1. Codli Mines, Goa 2. Sonshi / Surla Mines, Goa 3. Bicholim Mines, Goa 4. A Narrain Mine, Karnataka Pig Iron & Met Coke Operations 5. Pig Iron Plant, Goa 6. Met Coke Plant, Goa Power Plant, Goa LIBERIA Iron Ore Project 7. Bomi Hills, WCL 8. Bea Mountain, W
Slide 10: Goa operations
Goa operations Drying of ore Hauling/Loading 2.5 KMS 16 KMS Mine Processing Bundar Sea Port Plant Loading at Prospecting port by MOHP Blasting/Drilling Dozing Dry Screening Loading/Hauling Wet Processing/ Tailing disposal Mid–stream loading Transhipper Mother vessel 10
Slide 11: Karnataka operations
Karnataka operations 16 KMS Railway Yard 1 KM Mine Processing Plant Prospecting Blasting/Drilling Dry Screening 290 KMS Dozing Loading/Hauling Railway Yard 429 KMS 75 KMS Mangalore Port Goa Jetty 11
Slide 12: Competitive operations
Competitive operations Goa Operations Karnataka Operations Cost Competitive for Sea borne trade Cost Competitive on domestic supplies ─ Lowest quartile cost position* ─ Well placed to serve nearby steel mills ─ Integrated infrastructure with Proximity to ─ Dedicated logistics infrastructure port and
Slide 13: Maintaining cost leadership
US$/dry tonne 0 10 20 30 40 50 60 70 90 100 80 0 Sesa Goa: Lumps, Fines Rio Tinto Australia: Mining Lumps, Fines Pelletizing Port Costs Processing 200 Source: Metalytics, September 2012 Inland Transport Royalties & Export Duties Vale: Lumps, Fines 400 Maintaining cost leadership…. CSN: Lumps, Fines
Slide 14: Continued focus on exploration
Continued focus on exploration 800 Increased R&R Base Mine Life* 704 700 3.5 X +18 In last five years years 600 330# 500 Liberia 400 India 306 300 275 240 203 200 374 275 306 240 100 203 0 31 Mar 08 31 Mar 09 31 Mar 10 31 Mar 11 31 Mar 12 Reserves–Resources Growth “Sustained and Accelerated” * At cu
Slide 15: Value addition business
Value addition business Pig Iron kt Doubled the capacity post Vedanta acquisition 700 2007 2012 625 India‟s largest producer of low phosphorous pig iron 600 560 First to introduce low phosphorous foundry 500 grade pig iron in India 400 Sinter plant of 800kt capacity is also 300 280 progressing
Slide 16: Western Cluster Limited, Liberia
WESTERN CLUSTER LIMITED, LIBERIA 16
Slide 17: Aeromagnetic survey confirms strong mineral potential
Aeromagnetic survey confirms strong mineral potential ‒ Aggressive drilling in progress at Bomi Mine ‒ ~25,000 meters of diamond & RC drilling completed as on 31 August 2012 ‒ Exploration in Bea Mountain to begin in Q3FY13 ‒ Exploratory drilling and test work in progress for first JORC resource stat
Slide 18: Advantages of being in Liberia
Advantages of being in Liberia.... Resource Rich Area Distance to port (unit: kms) ‒ Three mining assets – Bomi, Mano and Bea Mountain ‒ Estimated resource base of about 330 mt (Saleable ore) ‒ Potential to increase at-least by 3x post exploration ‒ Mining concession area of 285 kms West Africa the
Slide 19: Significant developments underway
Significant developments underway 27.0 9.0 5.0 Capacity Capacity Capacity First Exit Exit Exit Shipment 2014 2015 2016 2017 First JORC R&R by Clearance received Developing mining & Developing Road, Mining & Processing Environment Q3FY13 for Bomi for exploration processing facility at Rail and Port E
Slide 20: Sustainability
SUSTAINABILITY 20
Slide 21: Health Safety and Environment
Health Safety and Environment Our aim is to reach & sustain Zero Harm Lost Time Injury Frequency Rate 2.5 2.16 LTIFR reduced by 62% reduction in LTIFR in last five years 2 1.8 62% In last five years 1.5 All our units are ISO 9001, ISO 14001, OHSAS 1.2 1.21 1 0.86 18001 certification* & SA 8000
Slide 22: ~ half a million lives touched...
~ half a million lives touched... 22
Slide 23: Summary
Summary Sesa remains competitive in extremely challenging environment Low cost operations Focus on exploration; continue to add more than depletion Liberia driving the next phase of growth Embed sustainable development into every aspect 23
Slide 24: Unearthing the future
SESA GROW! SESA GOA LIMITED 24