Smart Exploration for a sustainable future

@ Hindustan Ltd

By S K Vashisth

Sensitivity: Public (C4) SAFETY

2

Sensitivity: Public (C4) Make in

“Mines are the source of treasury, from the treasury comes power to the state, and the earth whose ornament is treasury, acquired by means of army and treasury.” India : - Kautilya, 273 BC Shared geology with mineral rich Africa & Australia

Commodity Mineral Potential Area (sq km) • Sustainable must go on Lead-Zinc-Copper 1,81,150 • Intensive Exploration required to unearth Mineral Potential & to peg New Mines

Ensuring Mineral Development - the KEY for India’s Growth

Sensitivity: Public (C4) Exploration Success

And he said……..

‘Profit earned from mine should again be reinvested in the mine to earn further profit.’ - Kautilya’s Arthashastra (2:28, 12:3, p.169) This is modern Brownfield Exploration…..

Sensitivity: Public (C4) Exploration Vision

Approach * Strong Brownfields focus Mission * Deeper-level Exploration for quick Brownfields: Double R&R and MIC Vision production ramp-up (Contained metal) Deliver R&R and New Discoveries to * Strong culture of knowledge sharing Greenfields: Make new discoveries to sustain metal production for +25 yrs * Technological Innovation - Exploration underpin Long-term Growth Drilling Optimization by AI.

Sensitivity: Public (C4) HZL Portfolio Assets

Rampura Agucha Mine Reserves :39.1 mn MT 5 Star Rating Mines Chanderiya Complex Resources :45.8 mn MT Pyrometallurgical Lead Zinc Smelter: 1,05,000 Zn : Zn 12.6%, Pb1.6% Reserve Grade & 35,000 Pb (MTPA) Current Ore Capacity : 4.5 mtpa Hydrometallurgical Zinc Smelter: Kayad Mine 4,20,000 MTPA Znc Reserves : 3.6 mnMT Resources : 1.9 mnMT AusmeltLead Smelter: 50,000MTPA Reserve Grade : Zn 5.1%, Pb-1.0 % lead Current Ore Capacity : 1.50 mtpa Captive Power Plant: 234 MW Sindesar Khurd Mine Dariba Smelting Complex Reserves : 37.3 mn MT Hydrometallurgical Zinc Smelter: Resources : 79.1 mn MT 2,10,000 MTpazinc Reserve Grade : Zn 3.6%, Pb 2.3 % Current Ore Capacity : 6.0 mtpa Lead Smelter: 1,00,000 MTpalead

Rajpura Dariba Mine Captive Power Plant: 160 MW Zinc Reserves : 20.4 mn MT Smelter Debari Resources : 38.5 mn MT Reserve Grade : Zn 5.1%, Pb 1.7% Hydrometallurgical Zinc Smelter: Current Ore Capacity : 1.5mtpa 88,000 MTpazinc & Haridwar Zawar Mining Complex Processing and refining of zinc, Reserves : 14.2 mn MT lead andsilver Resources : 82.2 mn MT Reserve Grade : Zn 3.1%, Pb 1.5% RenewablePower Current Ore Capacity : 4.50 mtpa Wind: 274MW Solar: 38MW CPP : 80 MW

Sensitivity: Public (C4) 6 HZL – Corporate Overview

Sensitivity: Public (C4) HZL: Exploration’s Strategy

• Be bold and ‘think big’ - Approach must be bold and not too conservative - Must think about the possibilities and test them - Must ‘think big’ and test the ‘big’ ideas • Use the 80:20 rule - At least 20% of budget should be spent on exploring the possibilities and the ‘big’ ideas - Gives chance of major success • Understand our targets - The geological setting, geochemical characteristics and geophysical signatures of HZL’s deposits must be known - Knowledge can be applied to our future exploration • Use new and innovative technologies - New database structure and data management programmes – AcQuire & DAP - Hand held XRF for rapid assay results - Improved data processing and interpretation of geophysics

Sensitivity: Public (C4) Exploration Process – Systematic Studies

Landsat data Aerial & Heliborne Detail Reports ASTER data Surveys Mapping Mapping • Prospect • Target definition identification Hyperion data Time Domain EM • Ground Exploration Airborne maps Geochem LISS IV Magnetic Potential Area TARGETS Geol. Maps Geophy Google maps Gravity DTM

Drill REVIEW Testing

Drop Discovery Sensitivity: Public (C4) HZL Exploration – Leading the way

. High speed, high capacity state-of-art drilling Drilling +100,000 - First Deepest drill holes +1,700m in Base metal Industry in India m/year - Motorised Directional Drilling . Heliborne VTEM Geophysical Survey – First in Indian Pvt Sector Deep . Titan 24 - Deep Earth Imaging Survey (+1.5 km Deep Penetration) – First in India Penetration + . High Power (50 KVA) Induced Polarisation Survey – First in India 1500m . Equipped with own EM, Mag & Gravity systems & Field XRF . Remote Sensing – IRS LISS III & IV, Aster & Hyper spectral, Landsat Overall . Best-in-class data modeling Exploration Time Gain + 50% Team of +100 Geoscientists Spending INR +100 Crore/ year

Sensitivity: Public (C4) Reserves & Resources

HZL Growing Reserve & Resource (Mt)

FY20 115 130 159 403 31.8 FY19 93 91 219 403 34.4 FY18 106 84 222 411 35.7 FY17 109 84 211 404 36.1 FY16 107 94 188 390 36.1 FY15 108 100 167 375 35.3 FY14 104 100 161 365 35.2 FY13 110 74 164 349 35.1 FY12 109 73 150 332 35 FY11 97 79 137 313 34.7 FY10 102 75 122 299 34.1 FY09 89 83 100 272 31.5 FY08 80 77 75 233 27.5 FY07 77 65 68 210 24 FY06 69 55 54 178 20 FY05 67 47 52 165 18 FY04 54 57 36 146 16.2 FY03 57 52 35 144 15.9 Reserves (Mt) M&I Resources (Mt) Inferred Resource (Mt) R&R (Mt) Contained Metal(Mt)

Sensitivity: Public (C4) R&R HZL Mines: - 403 Mt , Pb- 2.0%, Zn- 5.9% & Ag- 69 ppm

R&R Statement as on Apr-2020

Total Reserve Total M&I Inferred Total Resource HZL Assets Mt Zn % Pb% Ag g/t Mt Zn % Pb% Ag g/t Mt Zn % Pb% Ag g/t Mt Zn % Pb% Ag g/t 39.1 12.6 1.6 54 10.3 14.7 2.2 64 35.5 9.6 2.6 69 45.8 10.8 2.5 68 Kayad 3.6 5.1 1.0 15 0.8 12.1 2.0 38 1.1 8.2 1.4 23 1.9 9.8 1.6 29 SindesarKhurd 37.3 3.6 2.3 118 51.9 4.1 2.2 109 27.1 3.6 2.2 120 79.1 3.9 2.2 113 RajpuraDariba 20.4 5.1 1.7 54 16.3 7.2 2.0 79 22.2 6.2 2.1 98 38.5 6.6 2.0 90 ZawarMines 14.2 3.1 1.5 21 29.7 4.5 1.9 28 52.5 4.6 2.2 35 82.2 4.6 2.1 32 BamniaKalan 0.0 0.0 0.0 0 20.7 3.3 1.1 40 20.1 3.5 1.4 46 40.8 3.4 1.2 43 Total 114.7 6.9 1.8 69 129.7 5.3 1.9 72 158.6 5.7 2.2 67 288.3 5.5 2.1 69

Kayad Isometric view RAM Isometric view SKM Isometric view RDM Isometric view Zawar Isometric view

Sensitivity: Public (C4) HZL’s Sustainable Mining Model

Resource Sustenance Techno-Economic To ensure equitable and Sustenance sustainable use of the environment and natural For nation’s economic growth, resources for the benefit of leading to self-reliance in Zinc. present and future generations.

Sustainable Mining Social Sustenance To improve the health, income and living standards of local community.

HINDUSTAN ZINC Sensitivity: Public (C4) Our Vast Suite of offering – Fundamentals Remain strong

Hindustan Zinc Limited 14

Sensitivity: Public (C4) Strategy in Practice for Executing Growth Imperatives

Sensitivity: Public (C4) Expansion Projects with Long Term focus

Sensitivity: Public (C4) Maintaining our Position as top 10 Silver Producers Globally

Sensitivity: Public (C4) Exploration Drilling performance

Surface Drilling Underground Drilling 200 181.0 170.1 350 290.17 150 134.9 300 250 222.39 100 84.5 200 176.90 71.2 150 113.92 120.48 KILOMETERS 50 KILOMETERS 100 50 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20

• HZL is conducting 150 km of Surface & 300Km UG exploration Additional HZL units Rigs Available Rigs required drilling along with its post drilling activities for resource addition & Rigs resource upgradation. Zawar 9 18 9 KYM 7 9 2 • In UG mines/ operation:- 10 State-of-the-art MCR Smart-6 Rigs capable of drilling 2500 meter/month. RDM 3 5 2 SKM 4 5 1

RAM 1 1 0

Total 24 38 14

18

Sensitivity: Public (C4) Advance Technologies being used at HZL

Motorised Motorised Directional Drilling technology improvements now enabling ‘1+6’ Directional multiple branches from a parent hole. Drilling Major cost and time savings – more rapid deposit drill-outs

Semi Semi automatic core cutting machine improves 50% of productivity from Automatic earlier for sample cutting, precise core cutting, reduced man machine Core cutting interaction . Machine Safety improvement, cost and time savings. Downhole The Reflex Act III RD acquires bottom hole orientation mark during drilling. Electronic Orientation Consistent, structural data collection for precise correlation; easier mine design & mine planning. Tool

Targeting the orebody by integrating Various survey data e.g. Geology, Data Geophysics, Geochemical survey etc. Integration Better understanding and precise targeting.

HZL | Business Plan 19

Sensitivity: Public (C4) Innovation & Technology – looking forward

Retractable core barrel - Inspect / Change bit without pulling out the rods resulting in Enhanced IMDEX safety; saving Cost & Time. XTRACTA™

Digital Core Digital Core Library - Strip core logs displaying elemental values, alteration Library – zones & structural data resulting to Faster & Consistent Geological Data GeologicAI Collection.

Exploration Drilling Optimise UG exploration drilling across HZL by 20% (~ 60 Km/Year), Optimisation – translating into annualised cost saving to the tune of INR 25Crore. AI DRX High Dimensional Integrated Data Analytics with multi-dimensional visualization. Analysis – Predict exploration drilling target. Koan platform HZL | Business Plan 20

Sensitivity: Public (C4) Exploration Scenario – Indian Context

Hindustan Zinc Limited 21

Sensitivity: Public (C4) Hindustan Zinc Limited 22

Sensitivity: Public (C4) Global scenario

Hindustan Zinc Limited 23

Sensitivity: Public (C4) Massive sulphides at HZL brownfield site

Galena-Sphalerite: Intersection: 10m @ 25-30% Zn+Pb

Hindustan Zinc Limited 24

Sensitivity: Public (C4) Thanks

Sensitivity: Public (C4) Exploration : Some Concern (Trends)

• Modern Exploration: Comparable to global bench marking in terms of precision, pace, cost effectiveness, using best in class technology, Integration of all possible Geophysics, Geochem, Drilling/ Sampling, modelling, feasibility (Techno-economic, regulatory (Statutory licensed as well as community licensed, sustainable, Equipment (Machines, probes, softwares, highly motivated & skilled human resources ready to take challenge ; Risk/ probability analysis, Sequential with flexibility to alternate ideas, approaches • Key Mantra:- Lowest cost & Highest volume without compromising quality of product/ services operations are only sustainable in modern era of stiff competition for excelling among the peers • Green-Fields V/s Brown-Fields: Both critically important at specific stage of journey in data/Target generation whereas another is revenue to exchequer, mass Employment & Vibrant industrial growth for the country. • Its Tax payer/ Investor money at stake: needs to be social auditable, like Investors in any business enterprise have big say up to voting rights and exercise power towards assurance of proper fund utilisation & output orientation. • Stakeholder Focused: Vedanta Contributed INR 40,000 crores to in FY17

26

Sensitivity: Public (C4)