Sterlite Industries (India) Limited Production Release for the Second Quarter and Six Months Ended 3

Sterlite Industries (India) Limited
Production Release for the Second Quarter and
Six Months Ended 30 September 2012

MUMBAI, India--(BUSINESS WIRE)-- Sterlite Industries (India) Limited today announced its production results for the Second Quarter (Q2) and Half Year (H1) ended 30 September 2012.

Highlights

• Strong H1 integrated production of Silver and Lead at Zinc India, up 66% and 59% respectively

• Record Power sales in Q2 and H1

Mined metal production was 190,000 tonnes in Q2 and 377,000 tonnes in H1, as compared with 210,000 tonnes and 398,000 tonnes in the corresponding prior periods. The Sindesar Khurd (SK) mine continued to ramp-up well with mined metal production up 39% at 45,000 tonnes in H1.

In line with the mined metal production, integrated production of refined zinc was 153,000 tonnes in Q2 and 310,000 tonnes in H1. Integrated production of refined lead was 24,000 tonnes in Q2, and 53,000 tonnes in H1, up 40% and 59% respectively, driven by the ramp-up of the new 100kt Dariba lead smelter.

In line with the mine plan and earlier guidance, mined metal production in FY2013 is expected to be slightly higher than the previous year, with production in H2 FY2013 more than making up for marginally lower production in H1 FY2013 as compared with the corresponding prior period.

Integrated production of silver was 80 tonnes in Q2 and 160 tonnes in H1, up 63% and 66% respectively, driven by the ramp-up of SK mine and the new 100kt Dariba lead smelter.

The Rampura Agucha underground mine and Kayar mine projects are progressing well to deliver commercial production in FY2014. The Kayar mine produced developmental ore in Q2.

Total production of refined zinc and mined zinc-lead metal in concentrate (MIC) was 114,000 tonnes in Q2, in line with the corresponding prior period, and 5% lower at 220,000 in H1 in line with the current year's mine plan and on account of lower grades, as earlier guided.

Copper cathode production was 87,000 tonnes in Q2, in line with the corresponding prior period, and 9% higher at 175,000 tonnes in H1.

Mined metal production at Australia was 14% higher at 6,000 tonnes in Q2 and 13% higher at 13,000 tonnes in H1.

The first 80MW unit of the 160MW captive power plant at Tuticorin, which will predominantly provide power to the copper smelter, was synchronised during the quarter.

The Balco Korba-II smelter continues to operate at its rated capacity.

Due to a delay in obtaining regulatory approvals, the first 300MW unit of the BALCO 1,200MW captive power plant is now expected to be synchronized in the current quarter. Thereafter, we plan to tap the first metal at the 325 ktpa Korba-III aluminium smelter in Q4 FY2013. For the 211mt coal block at BALCO, we are progressing well towards obtaining the second stage forest clearance, and thereafter we intend to commence mining this year.

Power sales were 2,474 million units in Q2 and 4,933 million units in H1, 42%and 44% higher than the corresponding prior periods. This significant increase was primarily due to higher power sales from three units of the Jharsuguda 2,400MW power plant, operating at availability of over 80% and plant load factor (PLF) of 50% in H1, with the fourth unit generating under trial run. PLF of the Jharsuguda 2,400MW power plant was constrained due to evacuation limitations. We continue to work towards debottlenecking of our evacuation capacity, and target to enhance it by an additional 1,000MW transmission by Q4 FY2013.

Power sales were augmented by higher sales at HZL wind power, which was expanded by 150MW to 274MW last year.

Power sales at Balco 270 MW were 10% lower at 346 million units in Q2 and 16% lower at 684 million units in H1 due to lower demand.

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