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ENDURING VALUE THROUGH VALUES Jeyakumar Janakaraj Akhilesh J hi Akhil h Joshi October 9, 2008 9

Vision & Mission
VISION Be a world-class company, creating value, leveraging mineral resources and related core competencies

MISSION ■ ■ ■ Be a globally lowest cost zinc producer, maintaining market leadership One million tonne Zinc-Lead metal capacity by 2010. Be innovative customer oriented and eco friendly maximizing innovative, oriented, eco-friendly stake-holder value.

World Class Mining Assets
Rajpura Dariba Mine
Lead-Zinc Ore R&R: Reserves: 7.1 Mt Resources: 17.6 Mt Zinc Grade: 6.6% Lead Grade: 1.7% Ore Production Capacity: 0.60 mtpa. Will increase to 0.9 0 9 mtpa

Rampura Agucha Mine
Lead-Zinc Ore R&R: Reserves: 63.6 Mt Resources: 43.8 Mt Zinc Grade: 13.9% Lead Grade: 2.0% Ore Production Capacity: 5.0 mtpa. Will increase to 6.0 mtpa

Kayar Mine Kayar Mine
Resources: 9.01 Mt, Grade: 10.6%, Zn,1.7% Pb 0.3 mtpa Capacity

Sindesar Khurd Mine
Lead-Zinc Ore R&R: Reserves: 1.96 Mt Resources: 35.2Mt Zinc Grade: 5.8% Lead Grade: 3.8% Silver Grade: 215 ppm Ore Production Capacity: 0.3 mtpa. 0 3 mtpa Will increase to 1 5 1.5 mtpa

Zawar Mining Complex
Lead-Zinc R&R: Reserves 7.2 Mt Resources: 41.9 Mt Zinc Grade: 4.4% Lead Grade: 2.3% Ore Production Capacity: 1.2 mtpa CPP: 80 MW
Note: Map not to scale Kayar Mine is under implementation

World Class Smelting Assets
Chanderiya Complex
Pyrometallurgical Lead Zinc Smelter: 105,000 tpa Zinc 35,000 tpa Lead 120 tpa Silver Hydrometallurgical Zinc Smelter: 420,000 tpa Zinc AusmeltTM Lead Smelter: 50,000 50 000 tpa Lead 851,000 tpa Sulphuric Acid Captive Power Plant: 234 MW

Debari Smelter
Hydrometallurgical Zinc Smelter: 88,000 tpa Zinc 419,000 tpa Sulphuric Acid Captive Power Plant: 29 MW

Dariba Complex – Phase III
Hydrometallurgical Zinc Smelter: 210,000 tpa Zinc Lead Smelter 100,000 tpa Lead Silver Refinery 350 tpa Silver Captive Power Plant: 160MW

Vizag Smelter
Hydrometallurgical Zinc Smelter: g 56,000 tpa Zinc 91,000 tpa Sulphuric Acid

Note: Map not to scale Dariba Smelting Complex is under implementation

Growth
700

Mined Metal ( ' 000 tonnes) Refined Metal ( ' 000 tonnes) cost of production (USD/t) 532 572

Note: COP is excluding royalty 700 629 686 680 660 639 485 640 620 600 577 158 145 580 560 540 520 500 (US $/t) $

600

500

(‘000 tonnes) t

409
400

612 308

393

300

228
200

575

100

0

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009 Q1

Rampura Agucha – Lowest cost producer
4000.0

Zinc Mining C1 Cash Cost Curve 2007
3500.0

Zinc Min Cash Cost $/t ning

3000.0

20% of global production precariously poised at current LME prices
80th Percentile ($/t) 1187.6 50th Percentile ($/t) 704.8

2500.0 2500 0

2000.0

1500.0

1000.0

Rampura Agucha ($/t)132.6

500.0

0.0

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Cumulative production percentile

Source: Brook Hunt 2007 Edition

Mining Cost Curve

Smelting Cost in 1st Quartile

50th Percentile 21.5 /lb 21 5 c/lb 18.9 c/lb

80th Percentile 26.1 c/lb

Source: Brook Hunt 2007 Edition

Smelting Conversion Cost Curve

Focus on Developing Resources
HZL R&R - Three pronged approach ■ In mine exploration ■ Near mine exploration ■ Greenfield exploration (area applied in India – zinc rich belt)
230 Million to onnes 180 143.7 143 7 130 87 80 30 57 FY 2003 54 FY 2004 67 FY 2005 69 FY 2006 77 FY 2007 80 FY 2008 92 146.3 98 109 232.3 Resources Reserves 177.6 164.8 133 152 209.4 209 4

■ Metal content - 27.5 Mt of zinc-lead ■ Rampura Agucha mine achieves landmark of crossing 100 million tonnes of R&R Overall R & R increased by 115 million tonnes , pre-depletion of 26.4 million tonnes.

Capacity Build Up

1000 900 800 700 600 500 400 300 200 100 0 169 35 85 185 70 120 0 314 669 530 474 879

2002

2008

2010

Zinc ('000 t)

Lead ('000 t)

Silver (t)*

Power (MW)

*Silver production capacity iis iin th year 2012 *Sil d ti it the Power – thermal power

Robust Zinc Demand
Per capita zinc consumption in 2007 (kg/capita)
11.3

3%

5.0

1%

3.2 USA

2.7 China

1.8 18 World

3%

0.4 India

South Korea

Japan

PROMISING FUTURE ■ Global consumption is growing @ 3 – 4% CAGR, world needs ~0.5 Mt more zinc every year CAGR 05 ■ Indian consumption at ~ 0.47 Mt in FY 08 is expected to grow at double digit. Likely to y g double in 5-6 years at the back of strong demand drivers: − Low per capita consumption in India coupled with a growth in infrastructure, construction, consumer durables, automobiles etc. ■ Zinc does not have a risk of substitution

Silver – A New Dimension
■ ■ Currently largest primary silver producer in India : 3.7 million ounce per annum Silver production to rise to 17.0 million ounce per annum by 2012 − Major additions from Sindesar Khurd Mine expansions having high silver grade ore of ~ 215 ppm − − Recovery of silver f R f il from H d zinc smelter circuits Hydro i lt i it Overall increase in mine production largely from Rampura Agucha expansion from 5.0 mtpa to 6.0 mtpa ■ Setting up 350 tpa new silver refinery as a part of lead smelting expansion

Silver Output – Ramp-up Plan
Mile Stone 1: Mile Stone 2: Mile Stone 3: Silver recovery from zinc smelter circuits as low grade lead concentrate Silver from new zinc and lead smelters along with silver refinery and expansion of mines Silver from fully ramped up expanded Sindesar Khurd Mine

6.1

4.8 48

17.0 17 0

2.2

3.9
Current Capacity C tC it Mile St Mil Stone 1 Mile St Mil Stone 2 Mile St Mil Stone 3 Total T t l

Note: Units are in million ounce per annum

Best Zinc People in the World
Organization Structure enhancing performance
-

Empowered SBU work culture Leadership development for succession planning Talent identification, positioning and rewards Performance oriented online appraisal.
500 400 300 200 100

FRESHERS HIRING (2002-2008)

587

600

Competence Building
-

Over 1,000 employees have undergone specially designed general management & technical training programme. To attract best talent at induction level Qualification of fresh joinees – First Class Graduate Accelerated development of executives through specialized programmes at reputed institutions - IIM IIT / ISM / BITS Exposure to other world-class operations /

319

− -

70 17 29

0 GETs B.Sc., B.Com B Com MBA CA Others

-

Cutting edge combination of experienced and young engineers in expertise & energy levels Tremendous focus on quality of life

Focus on Safety
30 25 20 15 10 5 0 FY 05 ■ ■ ■ ■ ■ ■ ■ ■ FY 06 FY 07 FY 08 11 5.46 3 07 3.07 25 Nearly 50% reduction in LTIFR every year

Robust safety policy, practices organization - supported by safety stewards. Increased focus on the behaviour based safety program of all employees. Daily Safety performance review in unit meetings with total engagement of employees employees. External HSE audits are being done by agencies of international repute – PwC, E & Y, B.S.C Proactive actions like analysis of near miss incidences, periodical iindependent P ti ti lik l i f i i id i di l d d t reviews, regular training etc. Equal focus on contract workmen’s safety Compulsory use of Personall Protective Equipment (PPE) iincluding b contract workmen. C l fP P t ti E i t l di by t t k No cases of occupational health diseases
*Lost Time Injury Frequency Rate

LTIFR R*

Corporate Social Responsibility

Impacting Over 500,000 lives covering 173 Villages i Vill

Below Poverty Line (BPL)*
Self Help Group 70 60 50 40 30 20 10 0 61.79

BPL (% %)

27.10

FY 2005

Year

FY 2007 Child Welfare Centre

*Families with monthly income less than Rs. 2,000/- (~US$ 50) are considered BPL as per Govt. guidelines

Corporate Social Responsibility - Snapshot

Mid Day Meal - More than 200,000 primary school going children are being benefited through 6 Hi T h Kit h th h Hi- Tech Kitchens established b HZL t bli h d by 400 (increasing to 1,000) Anganwadi Centers adopted by HZL, benefiting around 16,000 children 1 000 computers installed in rural Government schools creating learning opportunities 1,000 covering more than 40,000 children Covering 173 villages and among them transforming 59 poverty stricken villages into model g villages based on socio-economic indicators 32 villages transformed to model villages and audited by ORG, New Delhi (>75% success) Post Graduate Girls College in Ringus serving around 900 students coming from rural area

Awards & Recognition
Ranked # 1 metals & mining company in India - # 2 in Asia - overall business ranking # 17 in Asia by Business Week – BW, 2008. Dun & Bradstreet - American Express Corporate Award 2007 for Top Indian Company in the Non-Ferrous Metals Sector. Process Excellence Award – By International Quality & Productivity Centre, London in 2008 TERI Corporate Social Responsibility Award 2007 by Hon’ble Finance Minister of India. FICCI-SEDF Corporate Social Responsibility Award 2006 by Hon’ble President of India. FIMI National Social Awareness Award 2006 FIMI Corporate Social Responsibility Award 2007 FIMI Excellence Award for the year 2007-08 to Rampura Agucha Mine. 2007 08 Golden Peacock National Training Award 2006. Golden Peacock Corporate Social Responsibility Award 2007 Pegasus C P Corporate S i l Responsibility Award 2007 t Social R ibilit A d ‘Asian Power Plant of the Year 2007’ and ‘Best Emission Reduction Project in Asia’ to Chanderiya Captive Power Plant by Asian Power, Singapore

Chanderiya Smelting Complex

World’s Largest Zinc Smelting Complex
Pyro Lead Zinc Smelter
Imperial Smelting Technology p g gy Commissioned in 1991 105 KTPA Zinc, 35 KTPA Lead Ausmelt Lead Smelter Commissioned in 2006 Cansolv Technology eco e y 97% Recovery +97% 50 KTPA Lead * RLE: Roast Leach Electro-winning

Hydro Zinc Smelter
RLE* Technology, Outotec gy, Commissioned in 2005 / 2007 2 x 210 KTPA Zinc, Best & Proven Technology Recovery +96%

Captive Power Plant
Bharat Heavy Electricals Ltd (BHEL) Commissioned in 2005 / 2008 77 + 77 + 80 MW (234 MW) Proven Technology Operation outsourced to Korea Power Services

Operational Excellence:
■ ■ ■ ■

■ Reduced specific power consumption by 335 kwh/t of zinc cathode in Hydro smelters (FY08)
Reduced specific water consumption by 0.6 m3/t of zinc (FY 08) Increased byproduct recoveries eg., cd, cu, Ag, etc Lead- Silver residue recovery in Hydro plant has been implemented Six Sigma culture for problem solving, for instance, silver refinery cycle time reduction from 60 hrs to 20 hrs

Environmental Focus – Smelters
Lowest SO2 emission Latest technology (Jarofix) - eliminates hazardous waste generation Zero discharge leading to reduced specific water consumption g g p p World’s largest and latest generation roasters Extremely efficient waste heat energy recovery system coupled with power generation

Solid Growth with Low Risk
Delivered
Chanderiya Hydro I 170 ktpa Chanderiya Ausmelt Lead Smelter S l 50 ktpa Chanderiya Hydro II 170 ktpa Chanderiya & Debari Zinc Debottlenecking b l ki 88 ktpa

Under Implementation
Dariba Zinc & Lead Smelter 210 & 100 ktpa

2005
Rampura Agucha Mine expansion 2.3 mtpa to 3.75 mtpa

2006

2007

2008
Rampura Agucha Mine expansion 3.75 mtpa to 5 mtpa

2010
Rampura Agucha Mine expansion 5 mtpa to 6 mtpa

2012
SK Mine expansion 0.3 mtpa to 1.5 mtpa New Mine at Kayar 0.3 mtpa

Chanderiya CPP 2 x 77 MW

Chanderiya & Zawar CPP expansion 2 x 80 MW

Dariba CPP expansion 2 x 80 MW

Gujarat & Karnataka Wind Power Plant 124 MW

Mission – One million tonnes
Zinc/Lead – Capacity
Zinc Zinc – Expansion Lead Lead– Expansion

100 ktpa 210 ktpa
210 ktpa 100 ktpa

1,064 ktpa
185 ktpa

Phase III Project capex: US $ 900 million ■ 210,000 tonnes Hydro Zinc Smelter at Rajpura Dariba ■ 100,000 tonnes Lead Smelter at Rajpura Dariba jp ■ 80 X 2 MW Captive Power Plant at Rajpura Dariba ■ Sindesar Khurd Mine expansion to 1.50 mtpa from 0.30 mtpa ■ Rampura Agucha Mine expansion to 6.0 mtpa from 5.0 mtpa ■ Opening of a new mine at Kayar with p y p an initial capacity of 0.3 mtpa

754 ktpa
85 ktpa

879 ktpa 669 ktpa

Current Capacity

Zinc Expansion

Lead Expansion

Metal 2010

Project Execution Philosophy
■ Split between basic engineering & detail engineering ■ Critical path analysis & de-bottlenecking at every phase ■ Parallel engineering, procurement & construction p j partners like L&T, Outotec, BHEL, ABB etc. ■ Best in Class project p ■ Community participation –involvement & job creation opportunities for local people ■ Successful sourcing from Indian vendor base by our global suppliers - saving time & cost ■ Independent Project audit & review mechanism ■ Cl Close & Proactive working with vendors, close watch on progress to avoid surprises. P ti ki ith d l t h t id i ■ Dedicated & young energetic project management team

Project – Track Record
Hydro I Smelter commissioned in 22 months Hydro II Smelter commissioned in 20 months Industry leading capex cost of US $ 1,100 /t of zinc

Largest Integrated Zinc - Lead Producer – 2010
kt Zn
Hindustan Zinc 633 1064

Xstrata AG

1002

Glencore

490

Teck Cominco

380

New Boliden

322

0

200

400

600

800

1000

Source: Brook Hunt Q3

Rampura Agucha Mine

A world class zinc asset Third largest zinc mine in the world – Will be the largest by 2010 One of the lowest cost zinc mine Modern efficient mining operations Crossed the landmark of 100 million tonnes of R&R

Rampura Agucha Mine - An Overview
Commissioned Location : 1991 : 225 km north of Udaipur, Rajasthan, India Reserves : 63 6 million tonnes 63.6 (13.0% Zn, 2.0% Pb) Resources 43.8 : 43 8 million tonnes (15.3% Zn, 2.0% Pb) Ore Production : 5 00 mtpa and is being 5.00 enhanced to 6.00 mtpa Certification : ISO 9001:2000, ISO 9001:2000 14001:2004, OHSAS 18001:1999, 5 S certified

Rampura Agucha Mine - An Overview

Mine pit dimension Bench height Berm width and bench angle Ultimate pit wall slopes Pit access Ultimate depth of pit Overall stripping ratio Waste Management

: 1580 m x 680 m : 10 m in Ore ; 10 m in Waste : 6.5 m from top to 290 mRL, : 10 m below 290 mRL, : Individual bench angle 70° at F/W & 80° at H/W : 48° 48 : 35° : Ramp one each in H/W & F/W, : width 25 m , gradient 1 in 12. : 270 meters from surface plan : 1:4.69 : 4 X 10 m lift, with overall slope angle of 27 °

H/W F/W

Largest Zinc Mines
2008 E
Rampura Agucha

2010 E
570

Red Dog

553

Century

518

Red Dog

565

Rampura Agucha

500

Century

500

Antamina

360

Mount Isa Pb/Zn

395

Mount Isa Pb/Zn

285

Antamina

335

100

300

500

700

100

300

500

700

Note: All figures are in Kt Zn g Source: Brook Hunt 2008 Q3

Metal Recovery
Zinc recovery : i
Consistency in operation & ore feed Regrinding of zinc scavenger & cleaner concentrate Capturing more liberated particles. Construction of clarifier to capture fine particles of concentrate going back into recirculation Circuit modification of scavenger avoiding re-circulating load. Continuous mineralogical auditing to identify mode of losses and plugging them

Rising trend of Zinc Recovery %
92.00 89.80 90.38 90.98 90 98 91.20 91 20 92.19

2003

2004

2005

2006

2007

2008

Lead recovery:
Fine primary grinding from 79 microns to 72 microns Circuit modification Introduction of automation in cleaner I t d ti f t ti i l circuit Introduction of double launder system Continuous Mineralogical auditing t to C ti Mi l i l diti identify mode of losses and plugging/controlling

Rising trend of Lead Recovery %
61.17

58.50 54.69

59.01

59.62

60.40

2003

2004

2005

2006

2007

2008

Note: The year mentioned is in Fiscal

Conservation of Energy & Water
Reduction in specific energy consumption kwh/tonne of ore treatment
42.69 41.42 41 42 41.03 39.63 39.52 38.13

Energy R d ti E Reduction:
■ AC variable speed drives (25 nos.) ■ O ti i ti Optimization of pumps speed. f d ■ By maintaining system power factor 0.99 ■ Optimization of grinding media size and & charge ■ Employee participation through Six Sigma

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

Reduction in specific water consumption m3/tonne of ore treatment
1.30 0.87 0.97 0.66 0.55

Water Reduction
■ Recoup from tailing dam ■ Zero discharge of water through recycling g g y g
0.50

■ Water reservoir of 50,000 m3 for storage of all the water to reduce the evaporation. ■ Garland drains all around the mine pit and

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

waste dumps. Collected water is pumped to the reservoir for re-use.

Productivity Improvement

350 300 250 OMS S 200 150 100 50 0 FY 2003 FY 2004 FY 2005 OMS
* OMS : Output per man per shift; Mt : Million tonnes

3.75 3.50 3 50 2.45

4.07

4.5 3.5 3 2.5 25 Ore Produ uction (Mt) ) 4

2.2 . 1.77

245 142 145 185

274

319

2 1.5 1 0.5 0

FY 2006

FY 2007

FY 2008

Ore Production (Mt)

Focus on Environment - Mines
■ Dust Prevention − Wet drilling operations − Water sprinkling on Haul Road − Dust Extraction systems at crushers − Chemical treatment of haul roads ■ Aforestation around the mine periphery ■ Tailing dam with continuous monitoring − Rock filled with lining − Designed by experts from Central Water Commission and Indian Institute of Science, Bangalore. p g − LDPE lined for seepage control ■ Systematic stacking of waste and vegetation over inactive benches ■ Adopted recycling and reuse of Water for Zero discharge

Tailing pond of Zawar Mines

Sindesar Khurd Mine

Sindesar Khurd

Rajpura Dariba Mine

Longitudinal Vertical Section – SK Mine
Depth S

Sindesar Khurd Longitudnal Vertical Section
Ramp Incline
BH-4 BH-1 BH-2 BH-3

mRL N
Vent. raise

Proved & Probable Reserves M&I Resources

Mt 1.96 21.01

Zn % 5.32 6.37

Pb % 2.08 4.05

Ag ppm 117 235

Inferred Resources Total R&R

14.20 37.17

4.99 5.8%

3.80 3.8%

199 215

Sindesar Khurd Mine

UOM FY 2005 FY 2006 FY 2007 FY 2008

Drilling meters 710 5,634 18,174 26,066 50,584

Total R&R million tonnes 13.50 13.62 30.85 37.17

Note: R&R as on 31 March of respective fiscal year

Sindesar Khurd Mine
2005 ■ Reserves & Resources - Potential to add further Capacity: - Current - Expanded ■ ■ Schedule completion p Partial production from 0.3 0 3 million tonnes per annum 1.5 million tonnes per annum 2012 2010-2011 13.5 13 5 2006 13.62 13 62 2007 30.85 30 85 2008 37.17 37 17

Thank You