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

The majority of our workforce is unionized. Employees of HZL and BALCO are members of registered trade unions such as Bharat
Aluminum Mazdoor Sangh for BALCO and Hindustan Zinc Workers Federation for HZL, and are affiliated with national trade unions such as
the Indian National Trade Union Congress. We believe that relations with our employees and unions are good, though we have in the past and
may in the future experience strikes and industrial actions or disputes. See “Item 3. Key Information — D. Risk Factors — Risks Relating to
Our Business — Our operations are subject to operating risks that could result in decreased production, increased cost of production and
increased cost of or disruptions in transportation, which could adversely affect our revenue, results of operations and financial condition.”
We have a strong ongoing institutional commitment to the health and safety of our employees for achieving sustainable development in
harmony with the communities and environments in which we operate. Proactively complying with and exceeding the requirements of
regulatory guidelines, utilizing environment friendly technologies in our expansions and modernizations and implementing programs to support
communities around our facilities are integral part of to our business strategy. Most of our mines, refineries and smelters in India are both
International Standards Organization (ISO) 14001 and Occupational Health and Safety Assessment Series (OHSAS) 18001 certified. We are
committed to providing a healthy and safe working environment, to promoting empowerment, commitment and accountability of our
employees and to being an equal opportunity employer. We actively initiate and participate in a variety of programs to contribute to the health,
education and livelihood of the people in the local communities in which we operate, including through support of schools, educational
programs and centers, women empowerment programs, hospitals and health centers. We constantly seek out and invest in new technologies
and operational improvements to minimize the impact of our operations on the environment, including energy conservation measures,
reductions in sulphur dioxide gas and other air emissions, water conservation and recycling measures and proper residue management. We also
invest in programs to promote reforestation and better agricultural practices.
Insurance
We maintain property insurance which protects against losses relating to our assets arising from fire, earthquakes or terrorism and freight
insurance which protects against losses relating to the transport of our equipment, product inventory and concentrates. However, our insurance
does not cover other potential risks associated with our operations. In particular, we do not have insurance for certain types of environmental
hazards, such as pollution or other hazards arising from our disposal of waste products. The occurrence of a significant adverse event, the risks
of which are not fully covered by insurance, could have a material adverse effect on our financial condition or results of operations. Moreover,
no assurance can be given that we will be able to maintain existing levels of insurance in the future at the same rates. See “Item 3. Key
Information — D. Risk Factors — Risks Relating to Our Business — Our insurance coverage may prove inadequate to satisfy future claims
against us.”
We and our directors and officers are subject to US securities and other laws. In order to attract and retain qualified board members and
executive officers, we have obtained directors’ and officers’ liability insurance. There can be no assurance that we will be able to maintain
directors’ and officers’ liability insurance at a reasonable cost, or at all.
Regulatory Matters
Mining Laws
The Mines and Minerals (Development and Regulations) Act, 1957, as amended, or the MMDR Act, the Mineral Concession Rules, 1960,
as amended, or the MC Rules, and the Mineral Conservation and Development Rules, 1988, as amended, or the MCD Rules, govern mining
rights and the operations of mines in India. The MMDR Act was enacted to provide for the development and regulation of mines and minerals
under the control of India and it lays down the substantive law pertaining to the grant, renewal and termination of reconnaissance, mining and
prospecting licenses. The MCD Rules outline the procedures for obtaining a prospecting license or the mining lease, the terms and conditions
of such licenses and the model form in which they are to be issued. The MCD Rules lay down guidelines for ensuring mining is carried out in a
scientific and environmentally friendly manner.
The Government of India announced the National Mineral Policy in 1993, which was amended in 2008, to sustain and develop mineral
resources so as to ensure their adequate supply for the present needs and future requirements of India in a manner which will minimize the
adverse effects of
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