PROGRESS AGAINST STRATEGIC PRIORITIES

Strategic priorities

Production growth
and asset optimisation

De-lever the
balance sheet

Simplification of
the Group
structure

Protect and preserve our licence to operate

Identify the next generation of resources

What we said we would do
  • Achieve full capacity across businesses
  • Aluminium and Power: Ramp-up pots; secure domestic bauxite and coal; commence production from Chotia coal block
  • Zinc India: Ramp-up of Rampura Agucha Underground and Sindesar Khurd mine
  • Continue focus in securing coal and bauxite
  • Provide a safe way to resume copper mining at Australia
  • Oil & Gas: Ramp-up EOR at Mangala; increase gas production
  • Iron Ore: Commence operations at Goa
  • Maintain positive FCF, despite current market volatility
  • Reduce net gearing in the medium term
  • Efficiently refinance upcoming maturities
  • Realise US$ 1.3 bn of procurement and marketing synergies over four years
  • Pursue further simplification
  • Achieve Zero Harm
  • Implement biodiversity management plans at all sites
  • Obtain local consent prior to accessing resources
  • Optimise oil exploration activities
  • Leverage expertise of central mining exploration group
  • Identify next generation of resources at Barmer Hill and satellite fields
  • Phased development of Gamsberg
What we have achieved
  • Received approval for captive use of power
  • Aluminium cost of production reduced by 10% to US$ 1,572/t in FY 2015-16
  • Received environmental approval for Lanjigarh Alumina refinery expansion
  • Entire 9,000 MW portfolio operational. Additional 2,500 MW operationalised in FY 2015-16
  • Commenced operations at iron ore mines in Goa
  • Increasing contribution from underground mines at Zinc India
  • Successfully completed Mangala Enhanced Oil Recovery project; ramping up gas production
  • Strong free cash flow of ₹ 11,572 Crore
  • Net debt reduced by ₹ 6,254 Crore1
  • Refinancing debt efficiently
  • Cost savings and marketing synergies of c. US$ 250 mn achieved
  • Announced merger of Vedanta Limited and Cairn India in June 2015
  • 9 fatal accidents recorded
  • Zero 'higher category' (Cat # 4 &%) environmental incidents
  • Businesses are implementing their Biodiversity Management Plans
  • Social Impact assessment studies for HZL and Cairn India
  • Around 1.75 mn beneficiaries of our community initiatives
  • Zinc India :net R&R addition of 15 mt
  • Pre-stripping commenced at Gamsberg, first ore production targeted for 2018
Focus areas
  • Disciplined ramp-up of new capacities for Aluminium,Power and Iron Ore businesses
  • Zinc: Ramp-up volumes from Rampura Agucha underground mines
  • Oil and Gas: Enhance Gas production, EOR at other fields
  • Reduce net debt
  • Continued optimisation of opex and capex
  • Continued discipline around working capital
  • Work towards Vedanta Limited - Cairn merger
  • Pursue further simplification
  • Realise US$ 1.3 bn of procurement and marketing synergies over four years
  • Disciplined approach to exploration
  • Continue to enhance our exploration capabilities: Dedicated exploration cell formed
  • Develop Gamsberg: Ramp-up to full production in 9 to 12 months from first production

¹ Before ₹ 12,205 Crore dividend announced by Hindustan Zinc on March 30, 2016, paid in April 2016