Sterlite Industries (India) Limited Production Release for the Fourth Quarter and Year Ended 31 March 2013

  Sterlite Industries (India) Limited Production Release for the Fourth
  Quarter and Year Ended 31 March 2013

Business Wire

MUMBAI, India -- April 10, 2013

Sterlite Industries (India) Limited today announced its production results for
the Fourth Quarter and Year ended 31 March 2013.

Highlights

  *Full year production growth across Copper, Lead and Silver
  *Record quarterly and full year production of mined zinc-lead and
    integrated silver at Zinc India

                                                  
Zinc – India Business
                                                      
                 Q4                         Q3       Full Year
Particulars (in                     %                                   %
’000 tonnes, or   FY2013  FY2012  change   FY2013   FY2013  FY2012  change
as stated)                          YoY                                 YoY
Mined metal       260     223     16%      233      870     830     5%
content
Concentrate
Sales – Zinc      61      -               -        61      -       
(MIC)
Concentrate
Sales – Lead      -       -               -        -       5       
(MIC)
Refined Zinc –    182     190     (4%)     171      677     759     (11%)
Total
Refined Zinc –    181     189     (4%)     168      660     752     (12%)
Integrated
Refined Zinc –    0       1               3        17      6       
Custom
Refined Lead -    35      37      (6%)     32       125     99      26%
Total ^1
Refined Lead –    32      31      2%       22       107     89      20%
Integrated
Refined Lead –    3       6               10       18      10      
Custom
Silver - Total    117     88      33%      117      408     242     69%
(in tonnes) ^2
Silver -
Integrated (in    100     83      20%      62       322     237     36%
tonnes)
Silver – Custom   17      5               55       86      5       
(in tonnes)

1.Includes captive consumption of 1,777 tonnes in Q4 FY2013 vs. 2,156 tonnes
    in Q4 FY2012, and 6,500 tonnes in FY2013 vs. 6,625 tonnes in FY2012.
2.Includes captive consumption of 9 tonnes in Q4 FY2013 vs.11 tonnes in Q4
    FY2012 and 34 tonnes in FY2013 vs. 35 tonnes in FY2012.

Mined metal production was a record 260,000 tonnes in Q4, 16% higher than the
corresponding prior period, and in line with the annual mine plan. Full year
production was 870,000 tonnes, 5% higher than the previous year.

The integrated production of refined zinc was 181,000 tonnes in Q4, 8% higher
than Q3. Full year production was 660,000 tonnes, in line with the annual
plan. Sales of zinc metal-in-concentrate (MIC) were 61,000 tonnes, due to
surplus concentrate in Q4. Integrated production of refined lead was 32,000
tonnes in Q4 and 107,000 tonnes for the full year, up 2% and 20% respectively.

Integrated production of silver was a record 100,000 tonnes in Q4 and 322,000
tonnes for the full year, up 20% and 36%, respectively, driven by the
continued ramp-up of the SK mine and the Dariba lead smelter.

During the year, Rampura Agucha underground mine and Kayad mine achieved the
milestone of development ore production as per plan.

                                                  
Zinc - International Business
                                                      
                 Q4                         Q3       Full Year
Particulars (in                     %                                   %
’000 tonnes)      FY2013  FY2012  change   FY2013   FY2013  FY2012  change
                                    YoY                                 YoY
Zinc Refined –    36      36      2%       36       145     145     0%
Skorpion
Mined metal
content- BMM      65      71      (8%)     68       280     299     (6%)
and Lisheen
Total             102     106     (4%)     104      426     444     (4%)
                                                                   

Total production of refined zinc and mined zinc-lead MIC was 102,000 tonnes in
Q4 and 426,000 tonnes for the full year, in line with the annual mine plan.

                                                  
Copper – India /Australia Business
                                                      
                 Q4                         Q3       Full Year
Particulars (in                     %                                   %
’000 tonnes, or   FY2013  FY2012  change   FY2013   FY2013  FY2012  change
as stated)                          YoY                                 YoY
Copper - Mined    7       5       28%      6        26      23      15%
metal content
Copper -          86      80      7%       92       353     326     8%
Cathodes
Tuticorin power
sales (million    35      -               7        42      -       
units)
                                                                   

Copper cathode production was 86,000 tonnes in Q4, 7% higher than the
corresponding prior period, and 8% higher at 353,000 tonnes in FY2013. Mined
metal production at Australia was 28% higher at 7,000 tonnes in Q4 and 15%
higher at 26,000 tonnes for the full year.

The first 80MW unit of the 160MW captive power plant at Tuticorin has been
stabilised during the quarter and is now operating at capacity, with plant
load factor (PLF) of 81% during the quarter. Surplus power generated by this
plant beyond the captive consumption requirements were sold, and commercial
power sales were 35 million units in Q4 and 42 million units for the full
year. The second 80MW unit is expected to be synchronized in Q1 FY2014.

Tuticorin Copper Smelter Update

Following a few public complaints of emissions, we had responded to the
queries of the Tamil Nadu Pollution Control Board (TNPCB) confirming that all
plant parameters were within permitted limits. The District Administration
confirmed that no case of illness was reported on account of the alleged
emissions. However, TNPCB ordered closure of the smelter on 29 March 2013.

Separately, on 2 April 2013, the Honourable Supreme Court has upheld our
appeal filed in 2010 against the Madras High Court order for smelter closure
and ordered us to deposit INR 1 billion (approx. $18mn) with the District
Collector, Tuticorin, which will be used to improve the environment, including
soil and water, in the vicinity of the plant. Over the two year court process,
regulatory bodies had inspected and confirmed that the plant meets the
required standards. Some recommendations for improvements had been proposed by
them, all of which had been implemented.

This Supreme Court order does not affect the recent closure order issued by
TNPCB. We are actively engaged with TNPCB and relevant authorities to obtain
permission to restart the operations. We have also filed an appeal with the
National Green Tribunal against the closure order by TNPCB and for interim
relief to operate the plant, and the matter is being heard.

                                                  
Aluminium Business - Balco
                                                      
                 Q4                         Q3       Full Year
Particulars(in                      %                                   %
’000 tonnes, or   FY2013  FY2012  change   FY2013   FY2013  FY2012  change
as stated)                          YoY                                 YoY
Aluminium         62      62      -        62       247     246     1%
                                                                   

Aluminium production at 245 ktpa Korba-II smelter was 62,000 tonnes, in line
with the corresponding prior quarter. The smelter operated above its rated
capacity for the full year.

At the 325ktpa Korba-III aluminium smelter, mechanical and electrical
completion and pre-commissioning of the rectifier, potline and related
utilities for the first phase of 84 pots out of the total 336 pots have been
completed. Further work is in progress, and we plan to tap first metal in Q2
FY2014. The smelter plans to initially draw power from the existing 810MW
power plants at BALCO. The first 300MW unit of the BALCO 1,200MW captive power
plant is awaiting final stage regulatory approvals.

Having obtained the Stage-II Forest Clearance for the 211mt coal block at
BALCO, the process for diversion of forest land has been initiated by the
State Government, and we are in the process of signing the mining lease
agreement. We expect to commence mining in Q2 FY2014.

                                                  
Power Business
                                                      
                 Q4                         Q3       Full Year
Particulars (in                     %                                   %
million units)    FY2013  FY2012  change   FY2013   FY2013  FY2012  change
                                    YoY                                 YoY
SEL ^1            2,073   1,674   24%      1,578    7,530   5,638   34%
Balco 270 MW      282     412     (32%)    275      1241    1605    (23%)
HZL Wind Power    78      80      (2%)     62       511     336     52%
Total Power       2,433   2,166   12%      1,915    9,282   7,579   22%
Sales
                                                                   

1.Includes production under trial run of Nil million units in Q4 FY2013 vs.
    209 million units in Q4 FY2012, and 795 million units in FY2013 vs. 926
    million units in FY2012.

Power sales were 12% higher at 2,433 million units in Q4 and 22% higher at
9,282 million units for the full year, as compared with the corresponding
prior periods. The increase in Q4 was primarily due to higher power generation
and sales from three units of the Jharsuguda 2,400MW power plant.

The plant load factor (PLF) of three operating units in Q4 was 58%, compared
to 31% in Q3. Overall the station delivered an effective PLF of 44%
considering all four units. The fourth unit was commissioned on 31 March 2013.
The increase in PLF was driven by the commissioning of the new shared 1,000MW
Raipur-Wardha transmission line in January 2013, and partial easing of the
evacuation restrictions. We expect 50-60% PLF for all four units in the near
future with further easing of evacuation restrictions.

Power sales at BALCO 270MW were lower in Q4 and full year due to evacuation
constraints.

Work at the Talwandi Sabo power project is progressing well and the first unit
is expected to be synchronized in Q2 FY2014.

About Sterlite Industries

Sterlite Industries (India) Limited is India’s largest diversified metals and
mining company. The company produces aluminium, copper, zinc, lead, silver,
and commercial energy and has operations in India, Australia, Namibia, South
Africa and Ireland. The company has a strong organic growth pipeline of
projects. Sterlite Industries is listed on the Bombay Stock Exchange and
National Stock Exchange in India and the New York Stock Exchange in the United
States. For more information, please visit www.sterlite-industries.com

Disclaimer

This press release contains “forward-looking statements” – that is, statements
related to future, not past, events. In this context, forward-looking
statements often address our expected future business and financial
performance, and often contain words such as “expects,” “anticipates,”
“intends,” “plans,” “believes,” “seeks,” “should” or “will.” Forward–looking
statements by their nature address matters that are, to different degrees,
uncertain. For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in interest
and or exchange rates and metal prices; from future integration of acquired
businesses; and from numerous other mattersof national, regional and global
scale, including those of a political, economic, business, competitive or
regulatory nature. These uncertainties may cause our actual future results to
be materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking statements.

Contact:

Sterlite Industries (India) Limited
Ashwin Bajaj, +91 22 6646 1531
Senior Vice President – Investor Relations
sterlite.ir@vedanta.co.in
or
Sheetal Khanduja, +91 22 6646 1531
AGM – Investor Relations
sterlite.ir@vedanta.co.in
 
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