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

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Debari The Debari hydrometallurgical zinc smelter is located approximately 12 kilometers east of Udaipur in the State of Rajasthan. The hydrometallurgical zinc smelter was commissioned in 1968, uses RLE technology and has a capacity of 80,000 tpa which was increased to 88,000 tpa in April 2008 pursuant to improvements made to its operational efficiencies. The Debari facility also includes a 419,000 tpa sulphuric acid plant. A majority of the power requirements of the facility is sourced from the coal-based captive power plant at Chanderiya and the balance is sourced from an on-site liquid fuel-based 14.5 MW captive power plant commissioned in March 2003. The liquid fuel is procured from domestic oil-producing companies through a tender process for a yearly contract. Vizag The Vizag hydrometallurgical zinc smelter is located approximately 17 kilometers from the Vizag inner harbor on the Bay of Bengal in the State of Andhra Pradesh in Southeast India. The hydrometallurgical zinc smelter was commissioned in 1977, uses older RLE technology and has a capacity of 56,000 tpa. The Vizag facility also includes a 91,000 tpa sulphuric acid plant. HZL obtains approximately 50% of the facility’s power requirements from Andhra Pradesh Gas Power Corporation Limited, a gas utility company in which HZL holds an 8.0% equity interest. The remaining power is obtained from the Transmission Company of Andhra Pradesh, a government-owned enterprise. Haridwar We have a 210,000 tpa zinc ingot melting and casting plant in Haridwar in the State of Uttarakhand, of which 105,000 tpa has been commissioned in July 2008. This plant was established at a cost of Rs. 830.0 million ($16.3 million). Production Volumes The following table sets out HZL’s total production from its Chanderiya, Debari and Vizag facilities for the three years ended March 31, 2009: Year Ended March 31, Facility Product 2007 2008 2009 (tons, except for silver which is in kgs) Chanderiya ISP TM pyrometallurgical lead-zinc smelter Zinc 88,183 86,080 79,569 Lead (2) 16,630 16,265 18,938 First hydrometallurgical zinc smelter (1) Zinc 135,673 165,391 181,377 Second hydrometallurgical zinc smelter Zinc — 42,070 152,511 Ausmelt TM lead smelter Lead 27,922 41,982 41,385 Silver refinery Silver 51,296 80,405 105,055 Sulphuric acid plants Sulphuric acid 413,222 576,493 611,871 Debari Hydrometallurgical zinc smelter Zinc 74,353 78,511 85,191 Sulphuric acid plant Sulphuric acid 106,814 105,485 267,463 Vizag Hydrometallurgical zinc smelter Zinc 50,107 54,271 53,076 Sulphuric acid plant Sulphuric acid 71,405 71,989 74,935 Total Zinc 348,316 426,323 551,724 Lead (2) 44,552 58,247 60,323 Silver 51,296 80,405 105,055 Sulphuric acid 591,441 753,966 954,269 Notes: (1) Includes production capitalized in fiscal 2008 of 1,154 tons. (2) Excludes lead containing a high content of silver (High Silver lead) produced from the pyrometallurgical lead-zinc smelter for captive use, which was 5,634 tons, 5,319 tons and 5,009 tons in fiscal 2007, 2008 and 2009, respectively. 42
The following table sets out HZL’s total ore, zinc concentrate, lead concentrate and bulk concentrate production for the three years ended March 31, 2009: Year Ended March 31, Mine (Type of Mine) Product 2007 2008 2009 (tons, except percentages) Rampura Agucha (Open-pit) Ore mined 3,748,840 4,068,215 4,953,110 Ore grade — Zinc 13.3% 13.0% 13.4% Lead 2.0% 1.9% 1.9% Recovery — Zinc 91.7% 92.2% 92.0% Lead 60.4% 61.2% 60.6% Zinc concentrate 851,089 914,917 1,114,048 Lead concentrate 69,905 74,874 92,151 Rajpura Dariba/Sindesar Khurd (Underground) Ore mined 579,075 813,249 783,288 Ore grade — Zinc 5.1% 4.9% 5.8% Lead 1.5% 2.1% 2.1% Recovery — Zinc 80.6% 81.4% 81.8% Lead 67.6% 71.6% 74.3% Zinc concentrate 49,644 66,235 59,672 Lead concentrate 12,210 23,706 17,745 Bulk concentrate (1) — — 8,687 Zawar (Underground) Ore mined 812,000 901,635 944,300 Ore grade — Zinc 3.5% 3.7% 3.8% Lead 2.4% 2.4% 2.0% Recovery — Zinc 88.7% 89.0% 89.4% Lead 84.3% 85.2% 87.3% Zinc concentrate 46,654 54,676 29,257 Lead concentrate 25,219 27,175 15,049 Bulk concentrate (1) — — 29,924 Total Ore mined 5,139,915 5,783,099 6,680,698 Zinc concentrate 947,387 1,035,828 1,202,977 Lead concentrate 107,334 125,755 124,945 Bulk concentrate (1) — — 38,611 Note: (1) Bulk concentrate is concentrate that contains both zinc and lead. Principal Raw Materials The principal inputs of HZL’s zinc smelting business are zinc and lead concentrates and power. HZL has in the past been able to secure an adequate supply of the principal inputs for its business. Zinc and Lead Concentrates Zinc and lead concentrates are the principal raw material of HZL’s smelters. HZL’s lead-zinc mines have provided all of its requirements for zinc and lead concentrates in the past. We expect HZL’s mines to continue to provide all of its zinc and lead concentrate requirements for the foreseeable future. Power Most of HZL’s operations are powered by the coal-based captive power plants at Chanderiya, for which HZL imports the necessary thermal coal from a number of third party suppliers. HZL has outsourced the day-to-day operation and maintenance of its captive power plants at Chanderiya, Debari and Zawar. In January 2006, HZL secured, as part of a consortium with five other partners, the award of a coal block from the Madanpur Coal Block which is expected to help meet the coal requirements of its captive power plants in the future. HZL’s share of the coal block is approximately 31.5 million tons which, according to the Ministry of Coal of the Government of India, are proven reserves with ash content ranging from 28.7% to 47.0% and with gross calorific value ranging from 3,865 Kcal/kg to 5,597 Kcal/kg. On June 16, 2008, the Ministry of Coal of the Government of India approved our mining plan. HZL has also been awarded 1.625 million tons of coal linkage by the Ministry of Coal of the Government of India, which will enable us to source coal from mines of SECL. 43
Page 1 and 2: Yes Yes No No (Mark One) UNITED
Page 3 and 4: TABLE OF CONTENTS PAGE ITEM 4. INFO
Page 5 and 6: • Part I — Item 6. Directors, S
Page 7 and 8: Refined Copper Consumption Global c
Page 9 and 10: Indian Copper Market Background The
Page 11 and 12: The following table sets forth the
Page 13 and 14: Market Outlook Global Zinc Outlook
Page 15 and 16: Notwithstanding the rise in aluminu
Page 17 and 18: Market Outlook Global Aluminum Outl
Page 19 and 20: Consumption Although electricity ge
Page 21 and 22: Power Trading Power trading takes p
Page 23 and 24: In addition, we are expanding our a
Page 25 and 26: • India’s economic growth and p
Page 27 and 28: We utilize project monitoring and a
Page 29 and 30: Seeking further growth and acquisit
Page 31 and 32: Our Production Process Our copper b
Page 33 and 34: The following map shows the locatio
Page 35 and 36: The principal deposits in the Mt. L
Page 37 and 38: consists of a 400,000 tpa copper sm
Page 39 and 40: Once processed at the Tuticorin fac
Page 41 and 42: Lead-Zinc Mines HZL sources all of
Page 43 and 44: Principal Facilities Overview The f
Page 45 and 46: Mines Rampura Agucha The Rampura Ag
Page 47 and 48: The gross book value of the Rajpura
Page 49: Summary of Mine Reserves The follow
Page 53 and 54: Market Share and Competition HZL is
Page 55 and 56: Additional Supply of Alumina The ad
Page 57 and 58: Bauxite Mines Chhattisgarh Mines Th
Page 59 and 60: Fabrication Facility The fabricatio
Page 61 and 62: Other Raw Materials BALCO also uses
Page 63 and 64: 1,250,000 tpa Aluminum Smelter Veda
Page 65 and 66: Sterlite Energy — Talwandi Sabo I
Page 67 and 68: Call Option Over Shares in BALCO On
Page 69 and 70: mineral development on the forest,
Page 71 and 72: Water (Prevention and Control of Po
Page 73 and 74: The employer is responsible for ded
Page 75 and 76: Our net sales and operating income
Page 77 and 78: • Power. Our commercial power gen
Page 79 and 80: Copper The net sales of our copper
Page 81 and 82: Year Ended March 31, 2007 2008 2009
Page 83 and 84: In addition, the Finance Act (2 of
Page 85 and 86: Power Business We expect our future
Page 87 and 88: Results of Operations Overview Cons
Page 89 and 90: • Pursuant to the approval of the
Page 91 and 92: Aluminum Net sales to external cust
Page 93 and 94: the selling and distribution expens
Page 95 and 96: • Aluminum production increased f
Page 97 and 98: We currently expect capital expendi
Page 99 and 100: Besides existing facilities, we had
Page 101 and 102:
Energy is in the process of obtaini
Page 103 and 104:
Contractual Obligations The followi
Page 105 and 106:
SFAS No. 161, “Disclosures about
Page 107 and 108:
ITEM 6. DIRECTORS, SENIOR MANAGEMEN
Page 109 and 110:
ITEM 19. EXHIBITS The following exh
Page 111 and 112:
4.15 Rs. 7,000 million Rupee Term F
Page 113 and 114:
4.41 Rs. 10,000 million Loan Agreem
Page 115 and 116:
Exhibit 12.3 Certification of Chief
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