HINDUSTAN LIMITED Customer Profile - India

June 2017

COMPANY BACKGROUND

Hindustan Zinc Limited (HZL) is a Vedanta Group Company. HZL is an integrated mining and resources producer of zinc, lead, silver and cadmium and is the world’s second largest zinc producer and is among the leading global lead and silver producers. HZL is a subsidiary of the BSE and NSE listed Vedanta Limited (ADRs listed on the NYSE; earlier known as Sesa Sterlite Limited), a part of London listed diversified metals and mining major, Vedanta Resources plc. HZL posted total revenue of US$221 billion in 2015 and PBDIT of US$1.4 billion. The HZL head office is located in Udaipur with the majority of its mines in , northern India, and employs a total of 6742 staff across all operations.

Website Hindustan Zinc Limited - Investor Relations MAJOR OPERATING DIVISIONS

HZL’s core business comprises of mining and smelting zinc and lead along with captive power generation. They have a metal production capacity of over one million tonnes per annum with the key lead-zinc mines being Rampura Agucha and Sindesar Khurd. Modern smelting complexes are located in Chanderiya and Dariba, and all mines and smelting operations are located in the state of Rajasthan and Zawar in India. HZL owns 474 mega-watt of coal based thermal captive power plants in Rajasthan to support its metallurgical operations. In addition, their environmently friendly power generation includes 274 mega-watt of wind energy, 16 mega-watt of solar and 35.4 mega-watt from waste heat generation.

Active zinc mines include the Rampura Agucha Mine, Zawar Mining Complex, Rajpur Dariba Mine, Sindesar Khurd Mine and Kayad Mine. ACTIVE PROJECTS

Rampura Agucha Zawar Group Rajpura Dariba Sindesar Khurd Kayad

Mature - world’s Mature – lead zinc Mature – lead zinc Mature – lead zinc Mature - lead zinc largest zinc mine Comprises a cluster Stratiform, sediment- of 4 underground hosted, high grade mines: Mochia, zinc and lead Balaria, Zawarmala deposits and Baroi. The mines are connected by grade is both rail and road. consistent throughout with no deterioration

Reserves : 51.1mt Reserves : 9.5mt Reserves : 9.3mt Reserves : 33.2mt Reserves : 3.9mt Resources : 82.3mt Resources : 49.4 mt Resources : 52.7mt Resources : 76.3mt Resources : 2mt Res. Grade Zn: 3.4% Res. Grade Zn: Res. Grade Zn: 14% Res. Grade Zn: 4.7% Res. Grade Zn: 6.3% Res.Grade Pb: Res. Grade Pb: 1.7% 13.4% Res. Grade Pb : 1.8% 1.6% Res. Grade Pb: Ore production 3.2% Res. Grade Pb: 1.8% Ore production Ore production capacity : 1.2mtpa capacity : 6.15mtpa capacity : 0.90mtpa Ore production Ore production CPP : 80MW capacity : 3.0mtpa capacity : 1mtpa

Simultaneous Underground Underground Underground open cast and Open stoping with Blast hole open stoping in upper block Sublevel stoping underground some shrinkage operations LHS with paste filling in lower block Small to medium stoping (Sindesar Khurd) sized drifts Mining in the open pit up to a depth of Mining is carried out using the vertical 372 m - underground crater tetreat method and blast hole mining is carried out stoping method with mined out stopes below this level backfilled with cemented tailings. (Rajpura Dariba)

The plant process includes: • crushing and screening • grinding • lead and zinc floatation • lead and zinc concentrate thickening and filtration • tailing dewatering and disposal • paste and high density hydro fill plant.

Hindustan Zinc Limited 2 PROCUREMENT PRIORITIES

Key operational drivers across all mines operator (MDO) for the Rampura Agucha Mine of Hindustan Zinc Limited. In the context of maintaining HZL’s current position of Hindustan Zinc- has two Peruvian and one Chinese being one of the lowest cost producers globally, key mining contractor involved as MDOs. operational drivers focus on safety; increased production; increased utilisation of current assets and life of mine Recent mine upgrades and automation extension. Computerisation has been identified as suppliers offering a two-fold solution; to improve safety within the Across the group of mines: mines operations and delivering increased productivity. International consultants were engaged in February • slope stability radar systems (Groundprobe) 2016 to undertake an assessment of the Sindesar Khurd • weighment solutions (Trakblaze) Mines operational, safety and technical standards. • tailings management (Golder Associates) HZL is currently establishing an underground Wi-Fi • safety training–behaviour based safety network across all mines to improve safety and production. • contract mining (Barminco) The network will facilitate: • dust suppression solutions (COOEE Dust Bloc) • asset (men/machine/material) tracking using Wi-Fi • mine planning systems (Modular Mining). tags and real time visibility of operations • tele-remote operations of loaders • automation of auxiliaries – pumping station, PROCUREMENT ventilation, sub-stations etc OPPORTUNITIES • VoIP based communication HZL is currently seeking solutions in the broad areas More information can be found in the 2017 HZL Presentation of safety improvements and innovation, production and productivity improvements, IT-based monitoring Key development activities of equipment, contract mining, exploration, metal HZL executives maintain a strong focus on recoveries, precious metal separation and techno technology to deliver improved underground economical solutions in metal recoveries from tailings. operations and safety across all mines. HZL are moving up the value chain and desire a In HZL’s February 2017 presentation on Mining Technology, ‘single point responsibility’ from the supplier. As the way forward for all HZL mines requires: an example Atlas Copco was asked to take full ownership of underground mining equipment for its • refrigerated ventilation in deep mining economic life time and provide a guaranteed cost • new mining methods for geo technically of operation (parts and labor) for the entire period. challenging ground conditions Establishing a local presence through partnering with • top down mining method at Rampura Agucha established Indian companies or engaging dedicated underground for better ground management and representation directly has been highly regarded in stability the procurement decision process. A local presence • centralised control and command centre for delivers the ability for regular engagement and integrated mining operations ongoing follow-up at a minimum. Where service and • use of slag and fly ash as binder in paste design or training are critical aspects of the supply, local presence would be considered essential. Service, Current Tier 1 suppliers and OEM’s repair and maintenance capability is mandatory for non-standard and sophisticated plant and equipment. OEM’s - Normet and CAT supply all underground related mining equipment. NB: for most underground equipment, HZL require DGMS regulatory clearance which Contract Mining Companies - as of November 2016, can be a lengthy and complex process. Barminco has been appointed as the mining developer Please see the Directorate General of Mines Saftey website for more information.

Hindustan Zinc Limited 3 AUSTRALIAN AUSTRADE

SUPPLIER The Australian Trade and Investment Commission – ENGAGEMENT Austrade – contributes to Australia’s economic prosperity by helping Australian businesses, education institutions, Austrade has worked with a range of Australian tourism operators, governments and citizens as they: suppliers and facilitated regular client engagement • develop international markets in various areas related to safety, training, weighment • win productive foreign direct investment solutions, waste management and contract mining. • promote international education Australian METS suppliers with proven solutions • strengthen Australia’s tourism industry have established high value relationships with HZL providing products and services across HZL’s group • seek consular and passport services. of mines. See the ‘Recent mine upgrades/automation • international business opportunities. suppliers’ section above for companies and solutions. w austrade.gov.au Trakblaze - commercial sale of in-motion weighment e [email protected] solutions. t 13 28 78 (within Australia)

RESEARCH AND Austrade Contact TRAINING LINKS TO Renee Barton, Team Leader AUSTRALIA Mining Equipment, Technology and Services t +61 8 8202 7853 HZL are actively involved in research and development e [email protected] activities related to waste management, contract mining, mining innovation, fly ash management and spent port lining removal at aluminium smelters.

Hindustan Zinc’s Central Research and Development Laboratory (CRDL) was established in 1976 with an objective to enhance metal recoveries, to recover values from the waste and optimise waste management. The CRDL has developed various processes that includes the recovery of lead and silver from low grade lead concentrate and hot gas precipitator dust.

Hindustan Zinc’s CRDL has been recognised by the Department of Scientific and Industrial Research and is listed in the American Society for Testing and Materials, online directory for testing laboratories. CRDL representatives have participated in R&D roundtables organised by Austrade, and have engaged with Australian companies such as Zeobond (fly ash management), Regain (spent port lining) and Golder Associates (waste management).

Disclaimer While care has been taken to ensure the information in this document is accurate, the Commonwealth of Australia represented by the Australian Trade and Investment Commission does not provide warranty or accept liability for any loss arising from reliance on such information.

©Commonwealth of Australia 2017

Hindustan Zinc Limited 4