VEDANTA’S COMMITMENT TO THE ENVIRONMENT FACT SHEET – FEBRUARY 2019 Lisheen, Ireland Protecting and nurturing the Our products enhance the longevity of others and, over time, environment is built into our reduce the demand for natural resources – for instance, zinc business strategy and philosophy. Our products and processes have galvanising increases the longevity of the base metal product. sustainability as their central pivot, not only because this is core to our values, but because it makes HIGHLIGHTS IN 2017/18 business sense. Across all our operations, we continuously implement technologies and systems to optimise water consumption, enhance energy productivity and safeguard biodiversity. Technology and systems With active closure also serve in the prevention of emissions successfully completed, discharge, the maintenance of air quality, Invested US$100 million Recycled 82% of high- the Lisheen mine site the recycling and upcycling of waste, as in environmental volume and low effect in Ireland has been performance waste in sustainable Saved 4.1 million m3 redeveloped as a well as rehabilitation and closure. management applications (fl y ash, of water against the National Bioeconomy programmes slag, red mud, gypsum) target of 2.2 m3 Campus Vedanta is also determined to minimise the impact of our operations on the environment. As a resources company, we appreciate the th vital importance of using resources wisely. 5 Our Environmental Technical Standard encapsulates our approach, where all our Hindustan Zinc is the operations are obliged to avoid if possible, or GHG intensity only Indian mining and otherwise minimise, adverse impacts on the Dedicated the fi rst reduction from a 2012 metals company to be environment from their operations through Green Road made by baseline is on track – Conserved 2.6 million listed in the Dow Jones Vedanta Jharsuguda 14% achieved against GJ of energy against Sustainability Index effective management systems and processes using fl y ash as a expectation of a 16% the target of – ranked #1 in the that work towards continuous improvement primary component reduction by 2020 1.39 million GJ environmental category of our environmental performance. PAGE 1 Gamsberg, Northern Cape Hindustan Zinc Bharat Aluminium Company, Chhattisgarh • Blocking and sealing all access to the CASE STUDY underground workings Lisheen closure and rehabilitation • Fully engineered covering of the tailings deposition facility to provide a multiple of Mining at Vedanta’s Lisheen Mine in Tipperary, Ireland, possible after-uses, from animal grazing to solar power or ceased at the end of 2015, after 17 years of operation. energy crops The cessation of mining at Lisheen was not the end of the story as far as we are concerned. From the beginning, • Creating a space that will be attractive to other industries Vedanta had always planned for the closure and successful • Supporting Lisheen staff during the closure, from rehabilitation of the Lisheen site. upskilling and training grants to redeployment at other Vedanta operations Focusing on physical closure of the mine and aftercare of the site, a best practice mine closure plan was implemented Lisheen’s management and a task force appointed by the to fully address all regulatory authority permit Irish Government worked with a range of stakeholders requirements. Lisheen’s closure programme is believed to to redevelop the site as a National Bioeconomy Campus. be among the world’s finest examples of environmentally At Lisheen, Vedanta committed to ensure that a safe and sensitive mine closure and rehabilitation. secure site would be left behind, and to strive to provide replacement industry on the site with all the social benefits Site rehabilitation work included: that this brings. • Ensuring that the underground workings cannot collapse In December 2017, the Irish Government announced leading to surface subsidence substantial funding to establish a bioeconomy innovation • Removing all surface and underground plant and and piloting at Lisheen. The next stage of the site’s life is equipment well underway, as a result of our commitment to • Allowing the mine workings to refill with clean water world-class closure and rehabilitation. Lisheen, Ireland Lisheen, Ireland PAGE 2 CASE STUDY OUR APPROACH Improving the quality of discharge water The Vedanta Sustainability at KCM Framework ensures that each of Konkola Copper Mines (KCM) in our businesses follows the same Measures taken Zambia, which is Africa’s largest high standards of environmental copper mining operation, has Hindustan Zinc management. As part of our to counter risk been in continuous production for quantitative risk assessment over 60 years. Vedanta acquired • Each business has been mandated a majority share of KCM in 2004. and critical control development to review and put in place Konkola operates some of the exercises, all our businesses appropriate mitigation measures to wettest mining operations in the evaluate the effectiveness of their world – mining processes require counter water-related risks current environmental controls and ~350,000m3 of water to strengthen them where required. • Hindustan Zinc has entered into be removed every day. a Public-Private Partnership to KCM embarked on a 10-year, WATER install and treat 20,000 m3 a day US$22 million project to improve An increasingly finite and precious resource, of municipal waste water from the quality of its discharge water. water plays a crucial role in the socio- Previously, sediments had been the City of Udaipur. This meets economic development of a nation. Our removed from the water flowing about 85% of the water needs approach to water management respects through the mines before being the water use rights of all stakeholders, at Rajpura Dariba complex. An discharged to the surface. However, which in turn strengthens our social additional 40,000 m3 a day will the concentration of suspended licence to operate. Vedanta has both a come online by the end of 2019. solids tended to remain high, which water management policy and a water meant that additional measures were management standard in place which needed to improve water quality. integrate with decision-making processes for all new and existing projects, ensuring At KCM, suspended solids are that all necessary measures are in place to In 2017/18, Vedanta undertook a water primarily removed from water via minimise the water footprint of our projects. risk assessment at 30 of our most 20 settling tanks, both on surface Our water management strategy focuses significant business locations, to evaluate and underground. To improve on optimising our water consumption and all risk related to water. This assessment the efficiency of these tanks, four minimising the amount of fresh water established that our Indian operations major projects were undertaken: manifest higher degrees of physical risk we consume by using as much recycled • Refurbishment of existing due to their location in high water-stress water as possible in our processes. To this underground settlers to make areas. In Zambia, the operations are end, we achieve zero discharge at many them more efficient of our businesses, including Tuticorin and exposed to higher regulatory risks because • De-silting of choked drain drives, Hindustan Zinc. of legacy water discharge. which included the removal of mud that had accumulated over the years • Procurement and installation of slurry pumps, which allowed the desludging period to be reduced Water performance dashboard from eight months to three weeks (million m3) • Procurement and use of 400 flocculants to enhance settling 278 280 300 237 The immediate outcomes of the project have been two-fold: 200 24% 26.6% 22.6% • Suspended solids levels are now 100 54 62 74 below the statutory threshold of 100 mg/l 0 2015-2016 2016-2017 2017-2018 • Wear and tear on pumping Total water consumption Water recycled/re-used % Water recycled infrastructure is notably reduced due to improved water quality, which has lessened abrasive impacts PAGE 3 Cairn Oil & Gas ENERGY AND EMISSIONS CASE STUDY Checking the hidden fugitive at Cairn Oil & Gas Vedanta’s Energy and Carbon Management Policy and Performance Standard are the In the oil and gas industry, fugitive emissions often make up a significant guiding documents for our approach to proportion of a company’s GHG emissions. These are not only a waste of mitigating our climate-related business risk resources but also have high global warming potential – as they are primarily and ensuring that we minimise our energy methane and thus 23 times more potent than carbon dioxide in terms of global consumption and air emissions. warming potential. Vedanta has established a carbon forum, Along with an independent external expert, Cairn Oil & Gas conducted a led by the chief operating officers of fugitive emissions study for its Rajasthan operations. A leak detection and our businesses. The forum has been repair programme was carried out to check for emission leaks from process tasked with developing and overseeing equipment. All joints such as valves, connectors, pumps, sampling connections, the implementation of Vedanta’s carbon compressors, pressure relief devices and open-ended lines in the process plant mitigation approach. Included in the forum’s and well pads were monitored. work are discussions related to approving Findings were positive, with fugitive emissions accounting for only 0.011% Vedanta’s carbon management strategy, of the total GHG emissions of the process and well pad areas – significantly long-term greenhouse gas (GHG) emissions lower than the 13% correction factor which was being applied to account for intensity reduction targets, alignment with unmeasured emissions. These numbers compared favourably with fugitive investor requirements, emerging regulatory emission ranges found in North American oil and gas installations. risks and carbon pricing. The study highlighted the excellent asset management and upkeep of facilities Given the risk posed by climate change, at Cairn’s Rajasthan operations. India has set ambitious targets for the reduction of emissions intensity by 33-35% by 2030, as well as sourcing 40% of its electrical power from non-fossil sources.