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ENDURING VALUE THROUGH VALUES Akhilesh Joshi Chief Operating Officer

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Largest Integrated Zinc - Lead Producer 2010

kt Zn 1064

Competitor data from Brook Hunt

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

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Under Implementation
Dariba Smelter Zinc 210 ktpa Lead 100 ktpa Silver 350 tpa

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

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Key Highlights

HZL stands out with 29% EBITDA in Q3 09, even as major integrated producers like Xstrata, Teck, Boliden etc. with negative EBITDA margins struggle to survive. HZL continues to maintain zero inventory levels. HZL continues to invest in its expansion projects (phase III project capex Rs. 3,600 crores) as planned. Strong balance sheet with cash balance of over Rs. 9,300 crores and Nil gearing. Last man standing philosophy

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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 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 Mine Kayar Resources: 9.01 Mt, Avg: 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. Will increase to 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

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World Class Smelting Assets

Chanderiya Smelting Complex
Pyrometallurgical Lead Zinc Smelter: 105,000 tpa Zinc 35,000 tpa Lead 150 tpa Silver Hydrometallurgical Zinc Smelter: 420,000 tpa Zinc AusmeltTM Lead Smelter: 50,000 tpa Lead 851,000 tpa Sulphuric Acid Captive Power Plant: 234 MW

Debari Zinc 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 Zinc Smelter

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

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

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Highlights

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Note: COP w/o royalty

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Robust Zinc Demand

Per capita zinc consumption in 2007 (kg/capita)

3% 1% 3%

Note: Indian per capita zinc consumption in 2008 was 0.43 kg/capita PROMISING FUTURE Global consumption is growing @ 3 4% CAGR, world needs ~0.5 Mt more zinc every year

Indian consumption at ~ 0.47 Mt in FY 08 is robust & expected to grow at double digits and also likely to 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
Ref: Brook Hunt 2008 Q4

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Global Market : 2009
North America Global Production Surplus Western Europe : 11,753 : 382 Asia (Excl China) Global Consumption : 11,371

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Latin America

Africa

Oceania

Asia accounts for close to 50% of Global Zinc demand SAARC Nations are freight Friendly Asian Zinc market is in deficit
Note: All figures in thousand tonnes Ref: Brook Hunt 2008 Q4

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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)

232.3 209.4 146.3 164.8 177.6

143.7

Overall R & R increased by 115 million tonnes , pre-depletion of 26.3 million tonnes.

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Robust Reserves & Resources

Exploration Success in FY 2008
Total R&R as on 31 March 2008 is 232.3 million tonnes containing 27.5 million tonnes of zinc-lead metal Rampura Agucha mine achieves landmark of crossing 100 million tonnes (actual: 107.3 million tonnes) containing Increase in R&R by 28.7 million tonnes containing 4.0 million tonnes of metal, prior to depletion Increase in mine life to 24 years

Sindesar Khurd Mine

R&R increased from 13 million tonnes in 2005 to over 35 million tonnes in 2008 Ore body of SK mine is open in depth Total R&R as on 31 March 2008 is 37.17 million tonnes containing 3.5 million tonnes of zinc-lead metal & 257 Moz of contained silver metal.

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Silver A New Dimension

Highest primary silver producer in India (currently): 3.7 million ounce per annum Ramping the capacity to 16.1 million ounce per annum by 2012 in phases Major contribution from SKM and RAM expansions High silver grade of Sindesar Khurd ore ~ 215 ppm New silver refinery with a capacity of 350 tonnes per annum (~11.3 million ounce per annum) to be commissioned by 2010 Recovery of silver from zinc circuit (all hydro smelters)

Capture 2.5% of Global silver market post expansion

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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. 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

FRESHERS HIRING (2002-2008)

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

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Focus on Safety
Nearly 50% reduction in LTIFR every year

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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. 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 independent reviews, regular training etc. Equal focus on contract workmen s safety Compulsory use of Personal Protective Equipment (PPE) including by contract workmen. No cases of occupational health diseases

*Lost Time Injury Frequency Rate

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Corporate Social Responsibility - Snapshot

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Mid Day Meal - More than 200,000 primary school going children are being benefited through 6 Hi- Tech Kitchens established by HZL 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 covering more than 40,000 children's Covering 173 villages and among them transforming 59 poverty stricken villages into model one based on socio-economic indicators 32 model villages have been completed and audited by ORG, New Delhi (>75% success) Post Graduate Girls College in Ringus serving around 900 students coming from rural area

Impacting over 500,000 lives, covering173 villages

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n n n n n n n n n n n n n n

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Awards & Recognition

Process Excellence Award 2008 By International Quality & Productivity Centre, London in

FICCI Annual Awards 2007-08 in the category of Rural & Community Development Ramkrishna Bajaj National Quality Certificate of Merit ( RBNQ 2008) Golden Peacock Award for Excellence in Corporate Governance-2007 by the Institute of Directors Asian Corporate Social Responsibility Award 2007-08 Dun & Bradstreet - American Express Corporate Award 2007 for Top Indian Company in the Non-Ferrous Metals Sector. Pegasus Gold Corporate Social Responsibility Award 2008 TERI Corporate Social Responsibility Award 2007 by Hon ble Finance Minister of India. Asian Power Plant of the Year 2007 and also Best Emission Reduction Project in Asia to Chanderiya Captive Power Plant by Asian Power, Singapore FICCI-SEDF Corporate Social Responsibility Commendation Certificate 2006 by Hon ble President of India. FIMI Corporate Social Responsibility Award 2007 FIMI Excellence Award for the year 2007-08 to Rampura Agucha Mine. Golden Peacock National Training Award 2006. Golden Peacock Corporate Social Responsibility Award 2007

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Rampura Agucha Mine

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Rampura Agucha Mine

A world class zinc asset Largest zinc mine in the world One of the lowest cost zinc mine Modern efficient mining operations Exploration Emphasis on exploration has been intensified in the light of aggressive growth plan Crossed the landmark of 100 million tonnes of R&R

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Mine Parameters

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Mine pit dimension Bench height Berm width and bench angle Ultimate pit wall slopes H/W F/W Pit access Ultimate depth of pit Waste Management

: 1650 m x 680 m : 10 m in Ore ; 10 m in Waste : 6.5 m : Individual bench angle 70 at F/W & 80 at H/W : 42 : 36 : Ramp one each in H/W & F/W, : width 25 m , gradient 1 in 12. : 440 meters from surface plan : 4 X 10 m lift, with overall slope angle of 27

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

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Largest Zinc Mine

2008

Note: All figures are in Kt Zn Competitor data from Brook Hunt

Rampura Agucha - Largest Zinc Mine in the world

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OMS & Ore Production

n Continuous improvement in efficiency leading to higher ore production.

* OMS Output per man per shift

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Zinc recovery :

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Metal Recovery
Rising trend of Zinc Recovery %
Consistency in operation & ore feed Regrinding of scavenger & cleaner concentrate Capturing more liberated particles. Capturing fine particles of concentrate Circuit modification of scavenger Continuous Mineralogical auditing

Lead recovery:
Fine primary grinding from 79 microns to 72 microns Circuit modification Introduction of automation in cleaner circuit Introduction of double launder system Continuous Mineralogical auditing to identify mode of losses and controlling.

Rising trend of Lead Recovery %

Note: The year mentioned is in Fiscal

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Conservation of Energy & Water

Reduction in specific energy consumption Energy Reduction: kwh/tonne of ore treatment AC variable speed drives (25 nos.) Optimization of pumps speed. Maintaining system power factor 0.99 Optimization of grinding media size & charge Energy savers in lighting circuits Employee participation & six sigma methodology

Reduction in specific water consumption m3/tonne of ore treatment

Water Reduction
Recoup from tailing dam Zero discharge of water through recycling Water reservoir of 50,000 m3 for storage to reduce the evaporation. Garland drains all around mine pit & waste dumps. Domestic sewage water after treatment in STP is utilized for plantation.

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

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Sindesar Khurd Mine

Sindesar Khurd

Rajpura Dariba Mine

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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 Inferred Resources Total R&R

Mt 1.96 21.01 14.20 37.17

Zn % Pb % Ag ppm 5.32 2.08 117 6.37 4.05 235 4.99 3.80 199 5.8% 3.8% 215

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Sindesar Khurd Mine

Drilling (meters) FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 (till date) 710 5,634 18,174 26,066 14,300 64,884

Total R&R million tonnes 13.50 13.50 13.62 30.85 37.17 37.17

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Chanderiya Smelting Complex

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Worlds Largest Zinc Smelting Complex
Pyro Lead Zinc Smelter
Imperial Smelting Technology Commissioned in 1991 105 KTPA Zinc, 35 KTPA Lead Commissioned in 2006 Cansolv Technology Recovery +97% 50 KTPA Lead

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Hydro Zinc Smelter

RLE Technology, Outotec Commissioned in 2005 / 2007 2 x 210 KTPA Zinc, Best & Proven Technology Recovery +96% Hydro I 100% EOU

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

Ausmelt Lead Smelter

Single Largest Zinc Smelting Complex in the World

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Operational Excellence

Reduced Sp. energy consumption to 17.11 GJ/t of metal Reduced Sp. water consumption to 11.76 m3/t of metal Increased byproduct recoveries ex: cd, cu, Ag, etc Lead- Silver residue recovery in Hydro plant has been implemented Six Sigma culture for problem solving, ex: silver refinery cycle time reduced to 20hrs
Sp Water Consumption m3/t of metal Sp Energy Consumption GJ/t of metal

Sp Energy Consumption (m3/t of metal)

Sp Water Consumption (GJ/t of metal)

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Key Value Drivers CLZS Hydro Smelters

Overall Zinc Recovery%

World class zinc plants with latest and best technologies Benchmarking the efficiencies with the global best smelters Special teams focusing on such high impact projects for improvements Recording of leanings and their implementation

Cathode Power Consumption KWH / MT Zinc

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

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Smelters

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