Sterlite Industries (India) Limited - Sterlite Industries India Ltd.

have a drill-hole spacing of 30 meters and have been classified as probable reserves as there is less certainty of the modifying factors since the
detailed mine design has not yet been completed.
CMT does not use a copper equivalent calculation for the determination of stope limits as the relationship between the copper and gold
grades is essentially linear, allowing the gold credits to be deducted from operating costs.
The proportion of sub-economic dilution in the reserves varies with the amount of internal dilution and the amount of over-draw. Due to the
caving process mixing ore from previous levels, remnant material and material from mineralized halo, it is difficult to determine the level of
external dilution, leading CMT to derive the modifying factors from the reconciliation of historical production against the grade and tonnage of
the primary ore mined.
For fiscal 2009, the metallurgical recovery was 90.2% for copper, 65.5% for gold and 62.9% for silver. For fiscal 2009, the contract mining
and milling cost was AUD 2,963 ($2,057.64 or Rs. 104,672) per ton, administration and environment cost was AUD 413 ($286.81 or
Rs. 14,590) per ton and transportation cost was AUD 448 ($311.11 or Rs. 15,826) per ton. Correspondingly the TcRc was AUD 398 ($276.39
or Rs. 14,060) per ton.
The following table sets out our proven and probable copper reserves as of March 31, 2009. The figures show the split between the ore
derived from primary, or in-situ, ore and secondary ore, which consists of broken fresh ore from previous levels, remnants of ore from the
open-pit side wall and pillars remaining from a former mining method together with sub-economic dilution from the mineralized material
surrounding the ore body. The quantity and grade of the secondary ore was determined from the analysis of historical production. The estimate
of the quantity and grade of the remnant material has been evaluated from previous studies and only uses a small proportion of this source of
ore. Consequently, we believe that this allowance can be sustained for the forecast life of the reserves.
Proven Reserve Probable Reserve Total Proven and Probable Reserves
Quantity Copper Grade Quantity Copper Grade Quantity Copper Grade
Mine Source (million tons) (%) (million tons) (%) (million tons) (%)
Mt. Lyell In-situ ore 3.0 1.48 1.6 1.52 4.6 1.49
Secondary ore — — 6.5 1.15 6.5 1.15
Surface stockpile 0.2 1.25 — — 0.2 1.25
Total 3.2 1.47 8.1 1.22 11.3 1.29
Our Smelter and Refineries
Overview
The following table sets forth the total capacities as of March 31, 2009 at our Tuticorin and Silvassa facilities:
Capacity
Facility Copper Anode (1) Copper Cathode (2) Copper Rods (2) Sulphuric Acid (3) Phosphoric Acid (3) Captive Power
(tpa) (MW)
Tuticorin 400,000 205,000 90,000 1,300,000 230,000 46.5
Silvassa — 195,000 150,000 — —
Total 400,000 400,000 240,000 1,300,000 230,000
—
46.5
Notes:
(1) Copper anode is an intermediate product produced by copper smelters and is not sold to customers. It is used for the production of
copper cathode by copper refineries. Approximately one ton of copper anode is required for the production of one ton of copper
cathode.
(2) Copper cathode is used as a starting material for copper rods. Approximately one ton of copper cathode is required for the production of
one ton of copper rods.
(3) Sulphuric acid is used as a starting material for phosphoric acid. Approximately 2.8 tons of sulphuric acid are required for the
production of one ton of phosphoric acid.
Tuticorin
Our Tuticorin facility, established in 1997, is located approximately 17 kilometers inland from the port of Tuticorin in Tamil Nadu in
Southern India. Tuticorin is one of India’s largest copper smelters based on production volume in fiscal 2008. Our Tuticorin facility currently
30