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

Labor Conditions
Working conditions of mine laborers are regulated by the Mines Act, 1952, as amended from time to time, which sets forth standards of
work, including number of hours of work, leave requirements, medical examination, weekly days of rest, night shift requirements and other
requirements to ensure the health and safety of workers employed in mines.
Royalties
Royalties on the minerals extracted or a dead rent component, whichever is higher, are payable to the relevant state government by the
lessee in accordance with the MMDR Act. The mineral royalty is payable in respect of an operating mine from which minerals are removed or
consumed and is computed in accordance with a prescribed formula. The Government of India has been granted broad powers to modify the
royalty scheme under the MMDR Act, but may not do so more than once every three years.
In addition, the lessee must pay the occupier of the surface land over the mining lease an annual compensation determined by the state
government. The amount depends on whether the land is agricultural or non-agricultural.
Environment Laws
Our business is subject to environmental laws and regulations. The applicability of these laws and regulations varies from operation to
operation and is also dependent on the jurisdiction in which we operate. Compliance with relevant environmental laws is the responsibility of
the occupier or operator of the facilities.
Our operations require various environmental and other permits covering, among other things, water use and discharges, stream diversions,
solid waste disposal and air and other emissions. Major environmental laws applicable to our operations include:
The Environment (Protection) Act, 1986 (“EPA”)
The EPA is an umbrella legislation in respect of the various environmental protection laws in India. The EPA vests the Government of India
with the power to take any measure it deems necessary or expedient for protecting and improving the quality of the environment and preventing
and controlling environmental pollution. Penalties for violation of the EPA include fines up to Rs. 100,000 or imprisonment of up to five years,
or both.
The Environment Impact Assessment Notification No: 1533(E), 2006 (“EIA Notification”)
The EIA Notification issued under the EPA and the Environment (Protection) Rules, 1986 provides that the prior approval of the MoEF is
required in the event any new project in certain specified areas is proposed to be undertaken. To obtain an environmental clearance, we must
first obtain a no-objection certificate from the applicable State Pollution Control Board. This is granted after a notified public hearing,
submission and approval of an environment impact assessment report that sets out the operating parameters such as the permissible pollution
load and any mitigating measures for the mine or production facility and an environmental management plan.
Forest (Conservation) Act, 1980 (“Forest Act”)
The Forest Act requires consent from the relevant authorities prior to clearing forests by felling trees. The final clearance in respect of both
forests and the environment is given by the Government of India, through the MoEF. However, all applications have to be made through the
respective state governments who will recommend the application to the Government of India. The penalties for non-compliance can include
closure of the mine or prohibition of mining activity, stoppage of the supply of energy, water or other services and monetary penalties on and
imprisonment of the persons in charge of the conduct of the business of the company.
Hazardous Wastes (Management and Handling) Rules, 1989 (“Hazardous Wastes Rules”)
The Hazardous Wastes Rules aim to regulate the proper collection, reception, treatment, storage and disposal of hazardous waste by
imposing an obligation on every occupier and operator of a facility generating hazardous waste to dispose such waste without adverse effect on
the environment, including through the proper collection, treatment, storage and disposal of such waste. Every occupier and operator of a
facility generating hazardous waste must obtain an approval from the relevant State Pollution Control Board. The occupier is liable for
damages caused to the environment resulting from the improper handling and disposal of hazardous waste and any fine that may be levied by
the respective State Pollution Control Boards.
61