NMDC Limited Presentation

February 2010 Strictly Private and Confidential Disclaimer

This Presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of NMDC Limited (the "Company") and no part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. In particular, this Presentation does not constitute an offer for securities in the United States. No public offering of securities will be made in the United States and the Company's equity shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended.

The Government of India is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an offer for sale of the equity shares of the Company and the Company has filed Red Herring Prospectus with the Registrar of Companies, Andhra Pradesh at Hyderabad. The Red Herring Prospectus is available on the website of the SEBI at www.sebi.gov.in and on the websites of the Book Running Lead Managers.

Any person who intends to acquire the Company's equity shares in the offer for sale by the Government of India must rely solely on the Red Herring Prospectus (if resident in India) which has been filed with the Registrar of Companies.

Any potential investor should note that investment in equity shares involves a high degree of risk. For details, potential investors should refer to the Red Herring Prospectus, which has been filed with the Registrar of Companies. This document contains certain forward-looking statements relating to the business, financial performance, strategy and results of the Company and/or the industry in which it operates. Forward-looking statements are statements concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this Presentation are based on numerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person's officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this Presentation or the actual occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward- looking statements are based.

No representation or warranty (express or implied) is made as to, and no reliance should be placed on, the accuracy, completeness or correctness of any information, including any projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein and, accordingly, none of the Company or its affiliates, its advisors or representatives or any of its or their parent or subsidiary undertakings or any such person's officers or employees accepts any liability (in negligence or otherwise) whatsoever arising directly or indirectly from the use of this document.

This Presentation speaks as of its date. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.

2 Presentation Outline

A. Key Themes

B. Corporate Social Responsibility

Appendix A1. Board and Senior Management

Appendix A2: Process to Acquire & Renew Mining Leases in India

3 A. Key Themes NMDC Limited: Key Themes

Established 8 Sustained corporate financial and performance * operating 2 history Largest Strong in- producer of house iron ore in technical India by capabilities 7 volume 3 Access to Focused abundant expansion high quality plans iron ore reserves

Strong Low-cost 6 domestic and producer of global demand iron ore potential 4 5

* All financial numbers in this presentation are based on restated consolidated audited accounts unless indicated otherwise 5 NMDC Limited: Key Themes

Strong Low-cost 6 domestic and producer of global demand iron ore potential 4 5

* All financial numbers in this presentation are based on restated consolidated audited accounts unless indicated otherwise 6 NMDC Limited: A pioneer in the Indian mining industry

A pioneer in the Indian mining industry - established in 1958 and has the objective of exploring and exploiting minerals and manufacturing and selling products obtained therefrom

NMDC has reserves and resources of 1,360.6* million metric tonnes of iron ore with predominantly greater than 64% Fe content and has been the largest producer by volume in India during the last three fiscal years** – the Company’s producing mines are open cast and primarily fully mechanised

Strong in-house capability to undertake exploration – NMDC is actively involved in exploration and development activities so as to apply for and acquire new iron ore and other mineral leases thereby expanding its reserves and diversifying its production

The research and development center, established in 1970, has competence in undertaking technology development projects in the field of ore beneficiation and mineral processing e.g. to convert waste material into products of commercial value

In addition, NMDC operates one of the largest diamond mines in Asia with the authorisation to produce 100,000 carats of gem and industrial diamonds per annum

Conferred the “Navratna” status in 2008, which allows among other things greater financial autonomy to the Board of Directors of the Company e.g. with regard to capital expenditure and merger and acquisition transactions

Achieved first rank among the financial ranking of central public sector enterprises for the year 2007–08 on the basis of overall performance on financial and other parameters***

* As at January 1st, 2010 **Source: Federation of Indian Mineral Industries *** As per as per the survey carried out by Department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises 7 NMDC Limited: Key Themes

Strong Low-cost 6 domestic and producer of global demand iron ore potential 4 5

* All financial numbers in this presentation are based on restated consolidated audited accounts unless indicated otherwise 8 Largest producer of iron ore in India

In FY2009, NMDC contributed to 13% of India’s total iron ore production and produced 28.5 million tonnes of iron ore

Location of NMDC’s principal mining facilities Historic production at key mining locations

25.0

20.0 23.0 22.2 20.6

onnes) 15.0 17.5 15.8 6.9 10.0 5.2 5.5 5.7 6.4 5.0 (million t (million 0.0 FY2005 FY2006 FY2007 FY2008 FY2009 Chhattisgarh* Karnataka**

•Includes Bacheli and Kirandul mining complexes Madhya Pradesh **Includes the Donimalai mining complex Bacheli Mining Composition of iron ore production Chhattisgarh Complex: Panna Diamond Deposit – 5, 10 35.0 30.0 Mine 28.5 and 11A 30.0 26.3 23.0 Vizag Port 25.0 21.0 18.1 17.2 Karnataka 20.0 15.0 Donimalai Iron Kirandul Mining Complex: 13.0 15.0 11.6 Ore Mine Deposit – 11C, 14 NMZ, 14 10.0 11.3 11.9 11.4 Kumaraswamy tonnes) (million 5.0 9.4 10.0 Chennai Port Iron Ore Mine 0.0 FY2005 FY2006 FY2007 FY2008 FY2009 Lumps & CLO Fines & Slimes Total Production

9 NMDC Limited: Key Themes

Strong Low-cost 6 domestic and producer of global demand iron ore potential 4 5

* All financial numbers in this presentation are based on restated consolidated audited accounts unless indicated otherwise 10 Access to high quality iron ore reserves and resources

NMDC has access to large reserves of high grade iron ore, predominantly greater than 64% Fe content

Reserves and resources of 1,360.6* million metric tonnes (mT) as at January 1, 2010**

900 829.5 800

700

600

500 onnes)

400

(million t (million 300 201.0 182.2 200 147.9

100

0 Proved Reserves Probable Reserves Mineral Resources*** Chhattisgarh Group Karnataka Group

* Includes entire 319.6 mT reserves of Deposit 13 and 105 mT resources of Deposit 4 under JORC standards. Should NMDC develop Deposit 13 and Deposit 4 through a 51:49 joint venture with Chhattisgarh Mineral Development Corporation Limited as proposed, on an equity adjusted basis total iron ore reserves and resources of NMDC would be 1,152.5 mT under JORC standards ** Iron ore reserves and resources as per JORC standards and based on a desktop analysis by Behre Dolbear, an independent third party technical consultant, to convert reserve estimates estimated by NMDC under United Nations Framework Committee (UNFC) code *** Mineral resources include measured, indicated and inferred mineral resources 11 Reserves and Resources of NMDC in the Bailadila Range

Total reserves and resources of 1,212.7 mT as at January 1, 2010 of which 424.6 mT is accounted for by mining leases yet to be executed*

Iron ore deposits of NMDC in the Bailadila Range Deposit wise details as at January 1, 2010 (in mT)

350.0 80.0%

300.0 70.0% 67.2% 60.0% 250.0 65.3% 66.0% 66.2% 64.7% 65.9% 65.5% 50.0% 200.0 40.0% 56.5 319.6 150.0 17.0 19.5 182.2 30.0% 100.0 20.0% 140.1 140.4 130.1 3.0 50.0 105.0 10.0% 60.6 38.7 0.0 0.0% NMZ NMZ Deposit 4 Deposit Deposit 5 Deposit Deposit 13 Deposit Deposit 11 Deposit 14 Deposit Deposit 10 Deposit 14 Deposit Proved Reserves Probable Reserves Mineral Res ources Fe % for Proved Reserves

Status of Lease / Deposit De pos it De pos it De pos it De pos it De pos it De pos it Clearances 5 10/11A 11C 14 14NMZ 4 13 2015/ To be To be Validity of lease 2015 2017 2015 2015 2017 granted granted Forest clearance 9Yes9 Yes9 Yes9 Yes9 Yes8 No Aw aited Environmental Yes Yes Yes Yes Yes No No clearance 9 9 9 9 9 8 8

*Mining lease has not been granted for Deposit 4. Central Government A mining lease is renewed as per request of lessee if applied for within approval for Deposit 13 received and lease area allocated - a petition filed by a statutory time period subject to no defaults under applicable laws and is 12 private mining company claiming allocation of the same deposit is pending deemed extended till orders are passed on such renewal Reserves and Resources of the Donimalai Complex

The Donimalai Complex had total reserves and resources of 147.9 mT as at January 1, 2010

Iron ore deposits in the Donimalai Complex Deposit wise details as at January 1, 2010 (in mT)

140 130.4 69.0% 66.8% 120 67.0%

100 64.0% 65.0%

80 63.0%

60 61.0%

40 59.0% 17.6 20 57.0%

0 55.0% Donimalai Kumaraswamy

Proved Reserves Fe % for Proved Reserves

Status of Mining lease and Donimalai Kumaraswamy Clearances Validity of lease 2028 2022

Forest & Environmental Yes Yes clearances 9 9

A mining lease is renewed as per request of lessee if applied for within statutory time period subject to no defaults under applicable laws and is deemed extended till orders are passed on such renewal 13 NMDC Limited: Key Themes

Strong Low-cost 6 domestic and producer of global demand iron ore potential 4 5

* All financial numbers in this presentation are based on restated consolidated audited accounts unless indicated otherwise 14 Low-cost producer of iron ore

Operating expenses* per tonne of iron ore produced Factors enabling low cost of production of NMDC

y Highly mechanised mines leading to lower wastage 51.3 50 y Access to relatively large and inexpensive labor and talent pool in India 40 36.3 y Cost management through cost centre wise monitoring and 29.6 control practices, leading to greater operational efficiency 30 27.3 and logistics planning (US$/tonne)

20 y Stability / predictability of certain expenses e.g. 13.4 – Wage increases governed by periodic announcements of 10 7.6 GOI relating to public sector employees 6.1 6.4 5.4 5.5 – Through outsourcing of various services to third party contractors 0 FY2005 FY2006 FY2007 FY2008 FY2009

Expenses EBITDA y Proximity of expansion projects to existing mines enabling utilization of existing infrastructure e.g. processing facilities * Based on consolidated audited financial statements and excluding selling expenses; US$ / metric tonne, INR 46 = US$ 1 at Donimalai will be used to treat Kumaraswamy ore

15 NMDC Limited: Key Themes

Strong Low-cost 6 domestic and producer of global demand iron ore potential 4 5

* All financial numbers in this presentation are based on restated consolidated audited accounts unless indicated otherwise 16 Strong domestic and export demand potential

India was a net India historical crude steel production Consumption of iron ore in India importer of finished steel in 2008-09 60 53.1 55.1 100 49.5 CAGR = 17% 50 45.8 2010 production of 80 90.0 iron ore in India is 40 85.0 32.6 60 onnes) 66.9 expected to increase 30 while exports are 40 52.5 20 48.2

expected to decline tonnes) (million

(in milliont 20 on increased 10 consumption by 0 0 Indian steel 2004-05 2005-06 2006-07 2007-08 2008-09 2004 2005 2006 2007 2008 producers Source: Worldsteel.Org Source: Federation of Indian Mineral Industries

Indian iron ore Exports of Indian iron ore to China China iron ore import forecast producers enjoy a proximity and pricing advantage with 700 120 respect to China, the 97.8 600 CAGR = 9% 100 91.9 624 driver of global iron 80.2 500 559 80 74.1 498 ore exports 400 449 onnes) 444 60 300 40 200

Over FY2006 – tonnes) (million

FY2009, Indian iron (in million t 20 100 ore exports to China 0 0 grew at 9.7% 2005-06 2006-07 2007-08 2008-09 2008 2009E 2010F 2011F 2012F

Source: Indian Bureau of Mines Source: ABARE

17 Strong domestic and international customer relationships

Key domestic customers (FY2009 offtake in mT) Key international customers

y Japanese steel mills (LT contract) Japan y South Korean steel China South mills (LT contract) Korea Gujarat CG units Essar (7.2) Chhattisgarh y Chinese (spot ISPAT (2.5) / Welspun (0.6) basis) Maharashtra RINL (5.1) JSW Steel Andhra Pradesh KIOCL (1.7) Karnataka

In FY2009 domestic markets comprised 85% of total sales volume whereas exports to international customers contributed 15% of total sales volume

Long term offtake in domestic and export markets (mT ) Spot sales in domestic and export markets (mT)

25 22.3 23.3 22.3 2.0 1.8 18.8 20 15.7 1.5 1.1 15 1.0 10 7.5 6.1 0.4 3.4 0.5 0.3 0.3 5 3.0 2.1 0 0.0 FY2005 FY2006 FY2007 FY2008 FY2009 FY2007 FY2008 FY2009 Domestic Export Domestic Export

18 Key arrangements in regard to domestic and export sales

Key terms of domestic offtake contracts Key terms of export offtake contracts

y Domestic offtake contracts are generally for a duration of 5 years y Exports to China are linked to spot prices y Initial prices and the price adjustment mechanism are agreed for the y Exports to Japanese / South Korean steel mills are on long term entire duration of the agreement contracts and price linked to international benchmarks – Prices are adjusted annually based on variation of the Japanese – Prices are adjusted every year based on benchmark prices benchmark price and in the INR/US$ exchange rate negotiated with major steel manufacturers – Provision for adjustment of prices in case of variation in market y Quantity, method of delivery and specifications are mentioned in the price of more than 25% during a year offtake agreement y Prices are adjusted based on change in Fe content of ore supplied y Export sales are typically on a “Free on Board” basis with the y Domestic sales are typically on “Free on Rail” or “Free on Truck” Company required to pay the costs of rail freight, port charges basis with transportation arranged by customers at their cost and export duties etc. y Royalties are payable by the domestic customers

Historical sales realisation* (Average price per tonne in US$ / tonne)

Export (FOB basis) Domestic (FOR / FOT basis) 96.0 100 100

80 80 56.3 60 60 48.4 50.4 43.0 42.6 33.5 40 28.7 40 30.9 15.3 20 20

0 0 FY2005 FY2006 FY2007 FY2008 FY2009 FY2005 FY2006 FY2007 FY2008 FY2009 * Based on consolidated audited financial statements US$ / metric tonne, INR 46 = US$ 1

19 Efficient logistics available to customers

Kirandul and Bacheli mining complexes Traffic handled through various modes from the Kirandul and Bacheli mining complexes (in mT) y The east coast network of the Indian Railways connects 25 21.8 21.4 the Kirandul and Bacheli mines to Vizag Port 20.4 – 3 loading plants that can load approximately 70,000 T 20 6.7 / day of iron ore 5.7 6.4 0.2 0.3 y A slurry pipeline owned and operated by its customer, 15 0.3 Essar Steel Limited*, can transport 8mTpa of iron ore fines / slimes 10 14.3 14.9 14.7 y The Company has entered into an MOU to construct a 5 new railway line to the Bhilai Steel Plant y NMDC intends to develop its own pipeline to transport ore 0 from the Bailadila mines FY2007 FY2008 FY2009

Rail Road Slurry pipeline* * Not operational since May 2009 Donimalai mining complex Traffic handled through various modes from the Donimalai mining complex (in mT) y The south western network of the Indian Railways 7.0 6.5 connects Donimalai mine to Chennai Port and nearby 5.7 domestic customers 6.0 5.3 0.8 0.4 0.6 y A mechanised loading plant capable of loading 24,000 5.0 tonnes of iron ore per day can accommodate the entire 4.0 3.0 5.7 production of the Donimalai complex 4.9 5.1 2.0 y NMDC is an equity investor in an SPV for construction of 1.0 a new railway line to Krishnapatnam 0.0 FY2007 FY2008 FY2009

Rail Road

20 mT = million metric tons NMDC Limited: Key Themes

Strong Low-cost 6 domestic and producer of global demand iron ore potential 4 5

* All financial numbers in this presentation are based on restated consolidated audited accounts unless indicated otherwise 21 Focused strategy of diversification and value addition

y Value addition to iron ore – beneficiation, pellets, sponge iron, steel

Forward Integration

Core Business

I H

y New mining n y New mining o

t Exploration, evaluation, mining, e

r leases for g

leases for i beneficiation

r o

other a iron ore in n

t Core Strength

i t o India and

minerals in a n l Mining at low cost, eco

Horizontal

India and Integration abroad friendly mining abroad

Backward Integration

y Exploration / prospecting including assistance to governments, fuel security and power generation

22 Expansion of mining activities related to iron and steel

Projects proposed to be executed Projects being executed by NMDC Projects proposed through MOU* through Joint Ventures

Under expansion • Deposit 11B, 114.3mT reserves • Kumaraswamy, 130.4mT reserves • Mining leases obtained for the above

Awaiting mining lease Awaiting mining lease Awaiting mining lease • Deposit 4 -105mT total mineral resources • With CMDC on 51:49 basis for Deposit 13 - • With Jharkhand State Mineral Development IRON ORE • Ghatkuri iron ore deposit 319.6mT reserves ** Corporation for Sasangada iron ore deposit • Ramandurg iron ore deposit

Under planning Under planning • NMDC Global, international division of • With Tata Steel and the State Governments NMDC set up to acquire overseas assets in of Jharkhand and Andhra Pradesh for the iron ore exploration and exploitation of mines***

Under development • MOU with SAIL for Arki limestone mine – LIMESTONE 98.34 mT reserves • Acquisition of land and clearances in progress

Under development MAGNESITE • With J&K Minerals Limited for the Panthal magnesite project - 2.61 mT reserves • Mining lease renewed

*Memoranda of Understanding **Includes entire 319.6mT reserves of Deposit 13 23 ***Person undertaking prospecting enjoys preferential right for grant of mining lease subject to satisfaction of State Government in respect of certain conditions Value addition activities in relation to iron ore

Projects being executed by NMDC Projects proposed through MOU*

Under planning

• Beneficiation plant at Donimalai, Karnataka BENEFICIATION – Transform waste with c.35% Fe content (BHJ/BHQ material) to high grade concentrate of Fe content >64% – R&D center conducting study to establish pilot plant

Under development

• 1 plant at Donimalai in Karnataka, of 1.2mTpa capacity; PELLETISATION • 1 plant in Chhattisgarh, of 2.0mTpa capacity • Land for both plants has been identified • Techno-economic feasibility studies have been completed and due diligence reports for both plants are in place

Merger / amalgamation SPONGE IRON • Merger of Sponge Iron India Limited with Company is in progress

Under development

• 3.0 mTpa integrated steel plant at Jagdalpur, Chhattisgarh – In possession of 995 acres of land for plant; applied for additional 777.2 acres land; Project work has commenced INTEGRATED STEEL – Environmental and rail transport clearance obtained MANUFACTURING Under planning Under planning

• 2.0 mTpa integrated steel plant at Bellary/Hospet, Karnataka • With Tata Steel for setting up integrated steel plants – Allotted 2,500 acres of land for the plant – Power and water connectivity obtained

*Memoranda of Understanding 24 Expansion of mining activities in relation to other minerals

Projects proposed to be executed Projects being executed by NMDC Projects proposed through MOU* through Joint Ventures

Under development

• 2 coal blocks allotted by the Ministry of Coal in July 2007 – Shahpur East and West blocks, Shahdol, Madhya Pradesh – The blocks have resources of 63.4 mT COAL and 52.7 mT respectively

Under planning Under planning Under planning

• Through NMDC Global to acquire overseas • With SAIL, RINL, NTPC and CIL under the • With West Bengal Mineral Development & coal assets name of ICVPL for securing coking and Trading Corporation for developing coal thermal coal supplies from overseas blocks in the state of West Bengal

Under planning Under planning

FERTILIZER • Through NMDC Global to acquire overseas • With Nagarjuna Fertilizer Limited for (ROCK PHOSPHATE assets in rock phosphate / potash securing and exploring rock phosphate and AND POTASH) potash mines, mainly outside India

Under planning Under planning

• Conducted exploration and has been • With Spice Metals and Mineral to identify OTHERS granted retention licences and exploit global mining opportunities – Secured prospecting licence for gold in Tanzania

*Memoranda of Understanding

25 NMDC Limited: Key Themes

Strong Low-cost 6 domestic and producer of global demand iron ore potential 4 5

* All financial numbers in this presentation are based on restated consolidated audited accounts unless indicated otherwise 26 Technical capabilities

Resource Planning Research and Development

NMDC has strong in-house capability to undertake exploration to Research and development (R&D) division established in 1970, expand its reserves as well as to diversify its production located at Hyderabad, undertakes in-house research work

Has been undertaking technology development projects related to NMDC currently employs 44 geologists and has the necessary mineral processing, flow sheet development, mineralogical studies equipment and infrastructure for its exploration activities and project development Drilling division at Raipur for taking up exploratory drilling works has R&D centre has been named as a ‘Centre of Excellence’ in the field of been strengthened to take up strategic exploration in mineral rich mineral processing by UNIDO states at no cost to the State Governments R&D is being strengthened for providing continuous support to The Company owns six core drill machines for exploration purposes production projects and also to support steel manufacturing plans and was awarded the ISO 9001 certification in October 1998

As a result of exploration and development activities, the Company Beneficiation of iron ore concentrate of Fe content of 35% into high has applied for and been granted mining leases for diamonds, grade iron ore concentrate of Fe content >64% through a plant being limestone and magnesite in India set up at Donimalai in Karnataka

Secured a prospecting license for gold in Tanzania, conducted Setting up pellet plants for conversion of slimes and value addition of explorations and has been granted retention licenses the Company's existing products

R&D has received 3 US patents (Amorphous Silica, Sodium Silicate and Zeolite-A)

27 NMDC Limited: Key Themes

Strong Low-cost 6 domestic and producer of global demand iron ore potential 4 5

* All financial numbers in this presentation are based on restated consolidated audited accounts unless indicated otherwise 28 Sales growth and profitability

Sales growth and profitability have been sustained in the recent past

2,000 90% 1,864 79.0% 78.1% 78.4% 1,800 80% 73.8%

1,600 1,462 70% 1,394 1,400 55.4% 60% 51.2% 1,200 51.0% 50.7% 45.4% 50% 986 1,000 1,089 946 851

(US$mn) 40% 35.3% 779 800 714 (margins %) 628 30% 600 507 502 387 20% 400 281 179 200 10%

0 0% FY2005 FY2006 FY2007 FY2008 FY2009

Revenues* EBITDA* PAT EBITDA* Margin PAT Margin

* Based on consolidated audited financial statements Exchange rate used for conversion: INR 46 = US$ 1

29 Historical Financial Performance

Cash balances Capital Expenditure

3,000 2,626 100 84.5 2,500 2,118 80 2,000 1,565 60 49.8 1,500 1,054 1,000 676 (US$mn) 40 29.0 414 24.5 26.8 500 (US$mn) 20 7.6 0 0 FY2005 FY2006 FY2007 FY2008 FY2009 9MFY2010 FY2005 FY2006 FY2007 FY2008 FY2009 9MFY2010

EBITDA margin PAT margin

2,500 100% 1,500 51.0% 51.2% 50.7% 60% 79.0% 78.1% 78.4% 48.9% 73.8% 75.0% 45.4% 2,000 80% 1,200 50% 35.3% 946 55.4% 1,462 40% 1,500 60% 900 714 1,089 30% 520 1,000 779 796 40% 600 502 (US$mn) 628 (US$mn) 387

(margin%) 20% (margin %)(margin 500 281 20% 300 179 10% 0 0% 0 0% FY2005 FY2006 FY2007 FY2008 FY2009 9MFY2010 FY2005 FY2006 FY2007 FY2008 FY2009 9MFY2010 EBITDA Margin PAT Margin EBITDA numbers based on consolidated audited financial statements

Pursuant to guidelines issued by the Ministry of Finance, the minimum amount of dividend required to be declared by the Company is the higher of 20% of equity or 20% of profits after tax Exchange rate used for conversion: INR 46 = US$ 1 30 B. Corporate Social Responsibility Corporate Social Responsibility (“CSR”) initiatives

Self-employment Education

Infrastructure Health Development CSR Focus

Drinking Water Medicare

y Beneficiaries are mostly tribals / backward sections in the proximity of the mines y Services are provided in consultation with the local people and local administration

32 Appendix A1. Board and Senior Management Organisation Structure

RANA SOM (Chairman-cum-Managing Director)

KUMAR RAGHAVAN V.K. SHARMA S. VENKATESAN N.K. NANDA S. THIAGARAJAN Company Secretary Director Director (Production) Director (Technical) Director (Finance) & Executive (Commercial) Director

A.S. AHLUWALIA G.B. JOSHI General Manager, Executive Director Regional Office, (Personnel) Vishakapatnam

V.K.S. RATHORE N.P.B. S. BOSE CE KINDO S.C. AGGARWAL General Manager, JAGANNATH General Manager Project Manager General Manager Deposit No. 11B, General Manager Kirandul Complex Panna (Contracts & Steel) Kirandul Complex (Engineering)

L.N. MATHUR General Manager K.L.N. RAO A.K. GUPTA N.K. DHAWAN Y.V. SWAMY (Safety, General Manager Executive Director General Manager General Manager Consultancy & Donimalai Bacheli Complex (Resource Planning) (Electrical & Project) Corporate Planning, Arki)

35 Highly Qualified Board and Experienced Management

Mr. Rana Som - y Mr. Rana Som holds post-graduate qualifications in Economics and Personnel Management Chairman & y He has approximately 38 years of managerial experience and has been the CMD of Hindustan Copper Limited and a Managing Director Director of State Trading Corporation of India in the past

Mr. S. Thiagarajan y Mr. S. Thiagarajan joined NMDC in 1979 and is a science graduate and a fellow member of the Institute of Chartered Director (Finance) Accountants of India Executive Director y He has experience in taxation, accounting, tax planning and financial management

Mr. V.K Sharma y Mr. V.K Sharma joined NMDC in 1973 and is a graduate in mining engineering from Indian School of Mines, Dhanbad Director (Commercial) Executive Director y He has approximately 37 years of experience in operations connected with mining and marketing of iron ore

Mr. S. Venkatesan y Mr. S. Venkatesan joined NMDC in 1973 and holds a Bachelor’s degree in Metallurgy from IIT Madras Director (Production) Executive Director y He has been associated with various functions in iron ore mining including R&D activities of NMDC

Mr. N.K. Nanda y Mr. N.K Nanda holds a Master’s degree in mining engineering from Indian School of Mines, Dhanbad Director (Technical) Executive Director y He is a fellow member and a Council member of the Mining Engineers Association of India

Mr. U.P. Singh Government Nominee y Mr. U.P. Singh I.A.S is presently serving as Joint Secretary, Ministry of Steel, Government of India Director y He has served in various positions / capacities in Government

Mr. R. N. Aga Non Executive & y Mr. R.N. Aga retired as Member of Railway Board, Indian Railways Independent Director

Dr. (Mrs.) Indira Misra Non Executive & y Dr. (Mrs.) Indira Misra I.A.S retired as Additional Chief Secretary, Government of Chhattisgarh Independent y She also served in various capacities in Government during her service prior to retirement Director

36 Highly Qualified Board and Experienced Management

Ms. Teresa Bhattacharya y Ms. Teresa Bhattacharya I.A.S retired as Chief Secretary, Government of Karnataka Non Executive & y She also served as Secretary, Dept of Energy, Government of Karnataka and Chairman and Managing Director of NGEF Independent and Mysore Sugars Ltd Director

Mr. Y.K. Sharma Non Executive & y Mr. Y.K Sharma is a Chartered Accountant and has approximately 41 years experience in practice as a chartered Independent accountant Director

Mr. Abdul Kalam Non Executive & y Mr. Abdul Kalam is a graduate in mining engineering and has approximately 37 years of experience in Coal India Limited Independent and the coal sector Director

Mr. K.S Raju y Mr. K.S Raju is a post graduate in applied geology and has approximately 36 years of experience in the fields of mining, Non Executive & mineral beneficiation and mineral testing Independent Director y He retired as the Controller General of the India Bureau of Mines

y The Company has formed committees in compliance with Clause 49 of its Listing Agreement

y An Audit Committee with independent directors in majority, functions to review all investment proposals and audit reports for consideration of the Board

37 A2. Process to Acquire & Renew Mining Leases in India Procedure to procure and renew mining lease in India

y RP application to respective State Government (SG) covering the intended area where the Company will Stage 1 engage in exploration for specific minerals Reconnaissance y RP grant by respective SG and RP deed execution Permit (RP) y Reconnaissance survey work under RP

y Selection of area for PL y PL application to respective SG for selected blocks Stage 2 y PL grant for maximum of 3 years and renewable by a maximum of 5 years Prospecting Licence y PL deed execution and commencement of exploration (RP) y Person undertaking prospecting enjoys preferential right for grant of mining lease subject to satisfaction of SG in respect of certain conditions

Selection of area y ML application to use the land for mining purposes for PL after RP y SG grants surface rights to land as per norms unless land is Stage 3 owned by private parties in which case it has to be acquired Mining Lease (ML) y ML grant by SG, in case of major minerals like iron ore and coal (among others) prior approval of Government of India (GOI) is required y ML execution initially for a maximum of 30 years Mining lease application after y ML may be renewed for 20 years or lesser successful PL period as per request of lessee and subject Stage 4 to no defaults of any applicable laws Renewal of Mining y In some cases renewal is subject to GOI Lease (ML) approval y If applied within the statutory time limit, the lease period is deemed to be extended until Application to renew ML the SG passes its orders on such to be submitted1 year application for renewal prior to expiry date y Delay in applying can be condoned if application is submitted prior to expiry