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

The reserves as of March 31, 2009 at BALCO’s mines at Mainpat and Bodai-Daldali have been determined by verifying that the integrated
operation is economic at an aluminum price of $2,502 per ton, which is the average metal price for the three fiscal years ending March 31,
2009.
A drill hole spacing of 50 meters by 50 meters is used to determine the proven reserves while a drill hole spacing of 100 meters by 100
meters is used to determine the probable reserves.
The mining dilution and mining recovery factors applied to determine the reserves at the Mainpat mine are 6.4% and 62.0%, respectively,
while the factors applied at the Bodai-Daldali mine are 5.0% and 65.0%, respectively. The parameters for Mainpat are derived from the
reconciliation of actual production against the geological model, while the parameters for Bodai-Daldali are based on estimates.
For fiscal 2009, the smelting and refining recovery from the mines for the production of alumina was at 76.9%. In fiscal 2009, all mining
and transportation of the bauxite was done by contractors and the total cost for this was Rs. 972 ($19.1) per ton of bauxite.
For fiscal 2009, the stripping ratio at the Mainpat mine was 1.0:2.3 with 2.3 tons of waste overburden being removed to mine one ton of ore,
while the stripping ratio at the Bodai-Daldali mine was 1.0:2.9 with 2.9 tons of waste overburden being removed to mine one ton of ore. The
strip ratio for the remaining reserves at Mainpat is 4.8 tons of waste per ton of ore while at Bodai-Daldali it is 5.0 tons of waste per ton of ore.
Summary of Bauxite Mine Reserves
The following table sets out BALCO’s proven and probable bauxite reserves as of March 31, 2009:
Proven Reserves Probable Reserves Total Proven and Probable Reserves
Mine Quantity Oxide Quantity Oxide Quantity Oxide
(million tons) (%) (million tons) (%) (million tons) (%)
Mainpat 3.5 46.3 — — 3.5 46.3
Bodai-Daldali 3.3 46.4 0.4 46.0 3.8 46.3
Total 6.8 46.3 0.4 46.0 7.3 46.3
Korba Facility
Overview
BALCO’s Korba facility is located at Korba in the State of Chhattisgarh in Central India and consists of one alumina refinery, two
aluminum smelters, two captive power plants and a fabrication facility. The following table sets forth the total capacities as of March 31, 2009
at BALCO’s Korba facility:
Capacity
Facility Alumina (1) Aluminum Captive Power
(tpa) (MW)
Korba 200,000 345,000 (2) 810
Notes:
(1) Alumina is used for production of aluminum. Approximately two tons of alumina is required for the production of one ton of
aluminum.
(2) Includes 100,000 tpa of capacity from BALCO’s older aluminum smelter that uses VSS technology and which ceased operations on
June 5, 2009.
Refinery
The Korba alumina refinery was commissioned in 1973, uses the conventional high pressure Bayer process and has a capacity of 200,000
tpa of alumina.
Smelters
There are two aluminum smelters at Korba. The newer smelter, which uses pre-baked GAMI technology and has a capacity of 245,000 tpa,
was commissioned in November 2006. The older smelter was commissioned in 1975, uses the VSS technology to produce aluminum from
alumina and has a capacity of 100,000 tpa. In response to recent global economic conditions and a decline in commodity prices, starting in
February 2009, BALCO suspended part of its operations at the 100,000 tpa aluminum smelter. The 100,000 tpa aluminum smelter ceased
operations on June 5, 2009.
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