BASIC COMPANY INFORMATION

Vedanta Resources plc is a global diversified metals and mining company with
its headquarters in London United Kingdom. It is the largest mining
and company in India and has mining operations in Australia and Zambia and
oil and gas operations in three countries. Its main products
are copper, zinc, aluminium, lead, iron ore and petroleum. It is also developing
commercial power stations in India in Odisha (2,400 MW) and Punjab (1,980
MW). The company is principally owned by Indian billionaire Anil
Agarwal through Volcan Investments, a holding vehicle with a 61.7% stake in
the business.
HISTORY
The company was founded in Bombay (now Mumbai) in 1976 by Anil
Agarwal, who is also its Group Chairman. Agarwal founded Sterlite
Industries, a business operating in the industrial sector in 1976 and then
in 1986 established Vedanta Resources bringing together a variety of
businesses owned by the Agarwal family. It was first listed on
the London Stock Exchange in 2003 when it raised $876 million through
an Initial Public Offering. Meanwhile, in 2006 it acquired Sterlite Gold, a
gold mining business. It raised an additional $2bn through an ADR issue
in 2007. In 2008 it bought certain of the assets of Asarco,
a copper mining business, out of Chapter 11 for $2.6bn. In December
2011 it announced the US$8.67 billion acquisition of Cairn India, a
subsidiary of Cairn Energy, heralding its foray in the oil sector.

METALS AND MINNING IN ZAMBIA

Research by the Overseas Development Institute on the taxes
and fees in the Zambian mining sector during privatisation in
the late 1990s and the subsequent boom in copper prices
reviewed the taxes and fees for mining and compared it
internationally for royalties and corporate income tax in other
major mining countries. There were significant differences
between countries in how these taxes are calculated and as a
result, a comparison of ‘headline rates’ on their own provide
limited insight into how would-be investors perceive the mining
sector.
They argued that perceptions offer an alternative and
complementary approach to examine how Zambia compares
from investors perspective to other countries. Using the Fraser
Index component covering taxes and fees
specifically, Zambia is in the middle of African countries, on par
with South Africa, worse than Botswana, but better than
the DRC. Perceptions that the taxes and fees for mining
in Zambia is attractive does not necessarily mean the fiscal
rates are themselves attractive (and vice versa) as investors
tend to view taxes and fees in a broader context of risks to
existing framework including its historical volatility and
expectations regarding future changes, the possibility of
negotiating a deal which is ‘better’ than the ‘official’ headline
rates through exemptions or allowances, and other factors
shaping the economics of the project.

BASIC TECHNOLOGY AND PROCESS

Vedanta Technologies is a service provider of Oracle JD
Edwards (Enterprise One and World). They work with a single
point focus, which is to help their clients enhance their
operational efficiency, customer relations and profits.

Being a resolutely customer focused company where the

interest of the customer dictates every strategic decision, we
have built most diverse Oracle JD Edwards and other resource
pools. With their best-of-the-breed resources, hands-on
experience, solution portfolio and unmatched expertise in
complete Application Life Cycle Management they remain to be
the ‘top-of-the-mind’ Oracle JD Edwards service providers in
the world.
Digitalisation of the mining industry is gaining
Traction and Vedanta is capitalising on India’s leading
Position and expertise in information technology.
Building on two of our core values of entrepreneurship
And innovation, during the year we have stepped
Up our efforts to discover and implement new,
Innovative and disruptive technologies through the
Introduction of new systems and incentive
programmes.
One example is Eureka, our new digital platform
to nurture and incubate in-house innovation and
technology, which is currently being embedded
throughout the business. It encourages our
employees to come up with innovative ideas
focusing on using technology to support mining in
a sustainable way by reducing waste and improving
energy efficiency. To date, around 1,000 ideas
have been submitted and 200 were selected for
implementation, and these will be rolled out across
our operations. Quarterly innovation awards reward
those employees who produce the most innovative
ideas, providing employees with a further incentive.
The top three ideas were awarded after evaluation
by an expert committee comprising of business.
CURRENT PERFORMANCE: DOMESTIC AND INTERNATIONAL