Introduction

Hindustan Zinc Smelter, Chanderiya is a refinery located in 10 km north of Chittorgarh,

Rajasthan, India. It is active in the commodities like Copper, Lead, Silver etc. This is the biggest
and modern Zinc Refinery of India.

Address:
Hindustan Zinc Ltd.,
Putholi, Chittorgarh
Phone: 01472 - 255574, 255395, 255754, 255647

Our board

 Mr. Agnivesh Agarwal

Chairman

 Mr. Akhilesh Joshi

COO & Whole-time Director

 Ms. Ajita Bajpai Pande

Director

 Mr. Sanjiv Kumar Mittal

Director

 Mr. Navin Agarwal

Director

 Mr. A. R. Narayanaswamy
Director
Mr. Agnivesh Agarwal is the Chairman. He was appointed to the Board on 15 November 2005.
Mr. Agarwal is an eminent industrialist with a strong knowledge of business operations. He is
vastly experienced in managing large projects, restructuring business and strategizing. Over the
years he has developed excellent commercial knowledge with hands-on experience. He is also
the Director of MALCO, Sterlite Iron and Steel Company Ltd, Sterlite Infrastructure Pvt. Ltd,
Agarwal Galvanizing Pvt. Ltd, and Sterlite Infrastructure Holdings Pvt. Ltd. Mr. Agarwal
graduated from Sydhenam College in Mumbai, majoring in commerce.

Overview

We are India's largest and world's second largest integrated producer of zinc & lead, with a
global share of approximately 6.0% in zinc. We are one of the lowest cost producers in the world
and are well placed to serve the growing demand of Asian countries. Hindustan Zinc is a
subsidiary of the NYSE listed - Sterlite Industries (India) Limited (NYSE: SLT) and London
listed FTSE 100 diversified metals and mining major - Vedanta Resources plc.

Our core business comprises of mining and smelting of zinc and lead along with captive power
generation. We have four mines and four smelting operations: mines are situated at Rampura
Agucha (largest zinc producing mine in the world), Sindesar Khurd, Rajpura Dariba and Zawar
in the State of Rajasthan; while the smelters are located at Chanderiya, Debari and Dariba in the
State of Rajasthan and Vizag in the State of Andhra Pradesh. In March 2010, we have
successfully commissioned our 210 ktpa Hydro Zinc Smelter at Dariba Smelting Complex and 1
mtpa concentrator at Rampura Agucha, in the state of Rajasthan.

Our current metal production capacity is 964,000 tonnes per annum (879,000 tonnes of zinc and
85,000 tonnes of lead). The ore production capacity stands at 8.60 million tonnes per annum. We
also own 314 MW of coal based thermal captive power plants in Rajasthan to support our
metallurgical operations. As a green energy initiative, we also have 123.2 MW of wind energy in
Gujarat and Karnataka, which is sold to the respective State grids

History

Hindustan Zinc Limited (HZL) was incorporated in 10 th January, 1966 as a public sector
company, after the takeover of the erstwhile Metal Corporation of India Limited, to develop
mining and smelting capacities and to substantially meet the domestic demand of zinc and lead
metals.

In April 2002, Sterlite Opportunities and Ventures Limited (SOVL) made an open offer for
acquisition of shares of the company; consequent to the disinvestment of Government of India's
(GOI) stake of 26% including management control to SOVL and acquired additional 20% of
shares from public, pursuant to the SEBI Regulations 1997. In August 2003, SOVL acquired
additional shares to the extent of 18.92% of the paid up capital from GOI in exercise of "call
option" clause in the share holder's agreement between GOI and SOVL.

With the above additional acquisition, SOVL's stake in the company has gone up to 64.92%.
Thus GOI's stake in the company now stands at 29.54%.

Milestone

2010
 Rampura Agucha Mine expansion from 5.00 million tonnes per annum to 6.00
million tonnes per annum, increasing the total ore production capacity of the Company
to 8.60 million tonnes per annum.

 Commissioned the 210,000 tonnes per annum Hydrometallurgical Zinc Smelter at

Dariba Smelting Complex, increasing the Zinc & Lead metal production capacity to
964,000 tonnes per annum (879,000 tonnes of Zinc and 85,000 tonnes of Lead).

2009

 Rampura Agucha Mine expansion from 3.75 million tonnes per annum to 5.00
million tonnes per annum making the total mining capacity of the Company to 7.40
million tonnes per annum

 88,000 tonnes per annum zinc debottlenecking competed at Chanderiya Smelter

Complex & Debari Zinc Smelter making the total metal production capacity to 754,000
tonnes per annum

 Commissioned 80 MW Captive Power Plant at Zawar Mines

 Commissioned 34.4 MW Wind Energy Farms making the Company's total Wind
Energy capacity to 123.2 MW.

2008
 Commissioned 170,000 tonnes per annum of Hydrometallurgical Zinc Smelter
(Hydro II) in a benchmark time of 20 months at Chanderiya Smelter Complex

 Commissioned 80 MW Captive Power Plant at Chanderiya Smelting Complex

 5,000 tonnes of zinc debottlenecking completed at Debari Zinc Smelter

 Commissioned 50.4 MW of Wind Energy Farms at Gujarat

2007

 Sindesar Khurd Mine began production with an initial production capacity of 0.3
million tonnes per annum

 Commissioned 38.4 MW of Wind Energy Farms at Gujarat

 2006

 Commissioned 170,000 tonnes per annum of Hydrometallurgical Zinc Smelter

(Hydro I) at Chanderiya Smelter Complex

 Commissioned 2 X 77 MW Captive Power Plant at Chanderiya Smelter Complex

 Commissioned 50,000 tonnes per annum of Ausmelt Lead Smelter at Chanderiya

Smelter Complex

2005
 Rampura Agucha Mine expansion from 2.30 million tonnes per annum to 3.75
million tonnes per annum

2004

 35,000 tonnes of zinc debottlenecking completed at Chanderiya Smelter Complex

2003

 32,000 tonnes of zinc debottlenecking completed at Debari Zinc Smelter and Vizag
Zinc Smelter
 Debottlenecking of Rampura Agucha Mine from 1.37 million tonnes per annum to
2.30 million tonnes per annum

1991

 Commissioned 70,000 tonnes per annum of zinc and 35,000 tonnes per annum of
lead Pyrommetallurgical Lead-Zinc Smelter at Chanderiya

 Rampura Agucha Mine began production with an initial ore production capacity of
0.9 million tonnes per annum

Mission & vision

Vision
Be a world-class zinc company, creating value, leveraging mineral resources and related core
competencies
 Mission

 Be a lowest cost zinc producer on a global scale, maintaining market leadership

 One million tonne zinc-lead metal capacity by 2010

 Be innovative, customer oriented and eco-friendly, maximizing stake-holder value

Corporate governace

Corporate Governance is the application of best management practices, compliance with the law
and adherence to ethical standards to achieve the Company's objectives aimed at enhancing the
shareholder's value and discharging social responsibilities. Our group companies are directed and
controlled by a systematic process to enhance their wealth generating capacities. Our
Governance process should ensure optimum utilisation of resources to meet the aspirations of
our stakeholder's aspirations and expectations of our society.

We remained resolute in our commitment to conduct business in accordance with the highest
ethical standards and the soundest corporate governance practices. The Company strongly
believes in achieving the objectives of enhanced shareholder's value and increased stakeholder's
interest through good corporate governance.

The Company has set up a three tier governance structure, which helps it in strategic decision
making, operations and project implementation:

 Strategic Supervision: The Board of Directors exercises overall strategic supervision to

lay down strategic goals, major expansion projects, capital expenditure and business plan
approvals which ensure that the Company is focused on fulfilling shareholder aspirations;
 Operation Management and Control: The Business Management Group comprises of
functional heads and unit/plant heads steered by the COO and the CFO. It handles management
and coordination through regular reviews and meetings with the objective to seek continuous
improvements in the working of the Company and to harness potential.

 Plant/ Unit Executive Management: comprising of several strategic business units

(SBUs) for overall execution and empowerment through decentralized decision making.

In India, corporate governance standards for listed companies are regulated by the Securities and
Exchange Board of India (SEBI) through Clause 49 of the listing agreement of the Stock
Exchanges. Hindustan Zinc Limited has adopted practices mandated in Clause 49 and has
established procedures and systems that comply with it completely.

Code of conduct

Our code of conduct sets out the ethical framework of our activities by detailing our commitment
to work ethically, responsibly and openly with others.

The code of conduct is an important part of our Mission & Values, where we highlight principles
and standards for our global business conduct. The code guides our behaviour and helps us to
promote:

 Honest and ethical conduct, the ethical handling of conflicts of interest between personal
and professional relationships.

 Full, fair, accurate, timely and understandable disclosure of reports and documents that
Hindustan Zinc Limited files with or submits to relevant authorities, and in other public
communications.

 Compliance with applicable government laws, rules and regulations.

 Prompt internal reporting to the appropriate person or persons identified in this Code.

 Accountability for adherence to this Code.

Our Code of Conduct expresses the principles of our business ethics and is intended to assist all
directors, officers and employees to meet the highest standards of personal and professional
integrity. Strict adherence to the provisions of this Code is a condition of employment.

Strategy

Our sustainable strategy aligns with the overall business strategy and reflects a clear
understanding of the needs and expectations of our key stakeholders.

The key drivers of our approach are: proactive engagement with our stakeholders; attracting and
retaining the best talent; our provision of a safe and healthy working environment; focus on
using environmentally friendly technologies and drive to conserve natural resources. We have a
set of ambitious targets to optimize our natural resources usage. Water and energy conservation
performance has been promising and has exceeded our targets in some instances.

Our people are our valued asset and our vision is to build a flexible, agile and flat organisation
with world-class capabilities and a high-performance culture.

We are committed to achieving the best practices in health safety and environment at all of our
sites. Our systems are well established and are regularly reviewed and monitored taking into
account our own experiences and industry best practices. We believe we have a responsibility to
engage with the communities in which we operate and to foster their social and economic
development. These principles are embedded across the organisation and are a key element of
our employee training, development and performance at all levels.

Through this strategy we are dedicated to meeting our sustainable development challenges. We
have a well defined sustainable development framework that comprises of governance structures
and policies, that act as pillars and supports our sustainable development endeavor.
 Vision
Our sustainable development vision is "to be the first choice in the markets where we operate,
valued by our stakeholders."  Our vision reflects our understanding on sustainable development
and ensures that we make savings in the long-term, and become more respected as an employer,
supplier, customer, and custodian of natural resources.
The key elements of our strategy include

 Nurturing people

 Enhancing quality of life of our neighbouring community

 Bettering Health, Safety and Environment (HSE) performance

 Building trust among our stakeholders  and

 Fostering innovation

Policy
HZL believes in sustainable development in harmony with nature and accordingly, is committed
to the effective management of health, security and safety of all its employees, protecting its
surrounding environment and making a contribution to the development of the local community.

This commitment encompasses efficient use of natural resources, protection of assets and
provision of a safe workplace with support systems for zero harm to the environment.

Accordingly, HZL will strive to:

 Maintain management systems for health, safety, security, environment and the
community that are in compliance with law and consistent with world-class standards like ISO
14001, OHSAS 18001.
 Develop a working culture conducive to continuous improvements in performance
without compromising with safety, security and health of its employees and its commitment to
develop in harmony with nature.

 Develop employees through training and leadership.

 Conserve natural resources through efficient use.

 Work with communities to contribute to their development.

 Institute and update systems to report progress with high standards of reporting integrity.

Date: 4th November, 2008

Place: Udaipur

Akhilesh Joshi
Chief Operating Officer
& Whole-time Director

Health safety
We consider Health, Safety and Environment (HSE) to be the key element for our business and
philosophy. We stay committed to continuous improvement in health, safety and environment in
line with our HSE policy. All of our sites have a dedicated HSE team which work closely with
operational teams and advices to our site management teams. We engage specialist consultants to
ensure the best possible information and further improvement across all our operations.

Management of contractor's safety, water & energy conservation, solid waste management and
greenhouse gas emissions reduction is becoming an increasingly important focus at all of our
operations. Not just because it is right to safeguard the health of the planet for future generations,
but because it also makes sound and sustainable business sense. Our efforts are built around 3
pillars:

 Health: Eliminate occupational illness

 Safety: Provide a safe workplace

 Environment: Minimum harm to the environment by conserving natural resources

through efficient use.

Corporate social responsibly

We continue to impact over 500,000 lives through our relentless Corporate Social Responsibility
(CSR) initiatives. We are committed to raise the quality of life and social well-being of
communities where we operate. We believe in engaging with our stakeholders in two-way, open
dialogue, which is the key to the development of sustainable communities.

We work to establish and maintain our "social license to operate" in the local communities in
which we are active by incorporating the principles of sustainable development into all aspects of
our engagement.

Our framework of community engagement starts with need assessment and base line studies to
understand the needs of the communities. The data is collected based on Participatory Rural
Appraisal interviews with village heads, panchayat members, farmers, SHG members and the
villagers at large. This feedback then is used to develop new programmes and improve existing
programmes.

We have a dedicated team of 107 functionaries including qualified professionals and subject
matter specialists who are part of our corporate social responsibility team.

Case study

With a vision to provide a safe and injury- free working environment to all our employees &
contract workmen; and to reduce the LTIFR (Lost Time Injury Frequency Rate), we give
paramount importance to building a robust, effective and efficient safety culture.
The safety culture is strengthened with enhanced near miss reporting, introduction of exclusive
contract workmen safety officers for large contractors and our appointed exclusive safety officer
for pool of smaller contractors. We have also given thrust to vehicle/driving safety and initiated
guidelines in this respect. These initiatives have promoted safe behaviour among contract
workmen and reduced risks at our operations.

Our efforts have resulted in continuous reduction of the LTIFR from 25.21 in FY 2005 to 3.86 in
FY 2009, a reduction of 84% in the last four years.

In addition to this, safety score card and physical condition tour audit system have been
implemented to assess the safety performance. Safety score card is a point based system which
mainly assess lead indicators like safety training, near misses reporting, Personal Protective
Equipment (PPE) compliance, analysis mechanism etc., to monitor the safety status of the unit
on monthly basis. Physical condition tour is a field audit giving thrust to substandard conditions
in areas of general work place conditions, facilities, material handling, equipment health, hazard
control, emergency systems and PPE compliance.

For continuous improvement in our safety performance, we conduct internal and external safety
audits that assess the functionality, adequacy and adherence of safety management system across
all our operations, to further improve and make a benchmark performance year after year. The
journey of continuous improvement continues.

Accolades

Quality
200 IMC Ramakrishna Bajaj National Quality Award - ‘Performance Excellence Trophy’ (RBNQA-
9 2009) - Chanderiya Smelting Complex.
CSR
200 State Population Stabilization Certificate to Chanderiya by Govt. of Rajasthan
9
200 State Bhamashah Award 2009 to Rampura Agucha by Govt. of Rajasthan
9
HSE
200 CII-ITC Sustainability Award (Commendation for Strong Commitment towards sustainability) -
9 Hindustan Zinc Ltd.
200 Golden Peacock Occupational Health & Safety Award- Debari Zinc Smelter.
9
200 CII- National Award for Excellence in water Management- Rampura Agucha Mine.
9
200 CII-Leadership & Excellence Award in Environment, Health & Safety- Vizag Zinc Smelter.
9
200 Stars of the Industries Awards in Green Manufacturers category- Debari Zinc Smelter.
9
200 Safety Innovation award by Institution of Engineering - Debari Zinc Smelter.
9
200 International Safety Award 2008 from the British Safety Council - Debari Zinc Smelter.
9
200 RoSPA gold award 2009 from Royal Society for Prevention of Accidents, UK -Debari Zinc
9 Smelter
200 Golden Peacock Environment Management Award 2009 from World Environment Foundation
9 (WEF), in association with Institute of Directors - Rampura Agucha Mine
HR
200 Amongst the top 25 Companies declared as Hewitt Best Employers in Asia in 2009
9
200 Ranked # 2 in the top 25 Companies declared as Hewitt Best Employers in India in 2009
9
CSR
200 Gold Pegasus Corporate Social Responsibility Award
8
200 FICCI Annual Awards 2007-08 in the category of "Rural & Community Development"
8
200 Asian Corporate Social Responsibility Award
8
HSE
200 RoSPA gold award 2008 from Royal Society for Prevention of Accidents, UK -Debari Zinc
8 Smelter
200 FIMI's Environment, Social Awareness and Excellence Award from Federation of Indian Mineral
8 Industries - Rampura Agucha Mine
200 National Energy Conservation Award 2008 from the Govt. of India - Rajpura Dariba Mine
8
200 CII- National Water Management Excellent Award-2008 - Chanderiya Smelter
8
200 CII National Energy Management Award - Vizag Zinc Smelter
8
200 Excellence in Environmental Management and Excellence in Workers Welfare awards from the
8 Federation of Andhra Pradesh Chamber of Commerce & Industry - Vizag Zinc Smelter
Quality
200 IMC Ramkrishna Bajaj National Quality Certificate of Merit (RBNQA-2008) - Chanderiya
8 Smelter Complex
200 Golden Peacock National Quality Award (GPNQA-2008) - Chanderiya Smelter Complex
8
200 9th Annual Excellence Award in the Best manufacturing process improvement by International
8 Quality and Productivity Centre, London - Chanderiya Smelter Complex
Others
200 Rampura Agucha Mine - Certified for SA-8000: 2001
8
200 Zawar Mines - Certified for SA-8000: 2001
8
200 Dun & Bradstreet Rolta - Corporate Award 2008 under Non-Ferrous Metals Sector.
8
CSR
200 Golden Peacock Award for Corporate Social Responsibility
7
200 TERI Corporate Social Responsibility Award
7
200 Silver Pegasus Corporate Social Responsibility Award 2007 constituted by Reader's Digest and
7 the India Today Group.
200 FIMI Social Awareness Award
7
200 State Population Stabilisation Award - Chanderiya Smelter Complex
7
HSE
200 4 Star Rating BSC Safety Mg System by British Safety Council, UK - RAM
7
200 RoSPA gold award 2007 from the Royal Society for the Prevention of Accidents, UK - Debari
7 Zinc Smelter
200 Best Asian power plant and Best Emissions Reduction Project in Asia Award for the year 2007-
7 CLZS CPP
200 Golden Peacock Occupational Health & Safety Award - Chanderiya Smelter Complex
7
200 Two Awards from the Confederation of Indian Industry (CII), Hyderabad
7 (i) Water Efficient Unit Award
(ii) Innovative Case Study Award - Chanderiya Smelter Complex
200 Safety Innovation Award 2007 instituted from the Institution of Engineers (India) - Chanderiya
7 Smelter Complex & Debari Zinc Smelter
200 Leadership and Excellence Award in Environment, Health and Safety (EHS) from Confederation
7 of Indian Industry - Vizag Zinc Smelter.
200 Greentech Environment Excellence Award 2007 in metal & mining sector - Vizag Zinc Smelter
7 (Silver), Chanderiya Smelter Complex (Gold), Debari Zinc Smelter (Silver)& Rampura Agucha
Mine (Gold)
200 18th Mine Environment & Mineral Conservation Week under the aegis of Indian Bureau of
7 Mines, Ajmer Region: Got First Position in:
(i) Overall Performance
(ii) Waste Dump Management
(iii) Water Pollution Control
(iv) Documentation on Mineral Conservation - Rampura Agucha Mine
Quality
200 Five-S Workplace Management System - Certificate by Quality Circle Forum of India (Valid till
7 31 July 2010) - Rampura Agucha Mine
Others
200 Dun & Bradstreet American Express Corporate Award 2007 in Non-Ferrous Sector.
7
200 Asian Power Award 2007 in the category:
7 (a) Asian Power Plant of the Year -2007
(b) Best Emissions Reduction Project in Asia. Hosted by Asian Power, Charlton Media Group,
Singapore - Chanderiya Captive Power Plant
200 Golden Peacock Award for Excellence in Corporate Governance-2007 by the Institute of
7 Directors
200 Bhamashah Award by Department of Education, Govt. of Rajasthan for outstanding contribution
7 in the development of educational facilities in surrounding areas - Chanderiya Smelter Complex &
Debari Zinc Smelter
CSR
200 FICCI-SEDF Corporate Social Responsibility Award
6
HSE
200 National energy conservation award from Ministry of Power, GoI -Rajpura Dariba Mines
6
200 Gem Granite Environment Award in the mechanized category of mines. - Rampura Agucha Mine
6
200 Greentech Safety Platinum Award - Vizag Zinc Smelter
6
200 Greentech Safety Gold Award in Metal Sector - Chanderiya Lead Zinc Smelter
6
200 Greentech Environment Excellence Gold Award in Metal Sector - Chanderiya Lead Zinc Smelter
6
200 Greentech Environment Excellence Gold Award in Metal Sector - Chanderiya Lead Zinc Smelter
6
200 Greentech Environment Excellence Gold Award in Metal Sector - Zawar Mines
6
200 Greentech Environment Excellence Gold Award in Metal Sector - Vizag Zinc Smelter
6
200 Golden Peacock Environment Management Award - Vizag Zinc Smelter
6
200 Greentech Safety Appreciation Certificate in Metal Sector - Zawar Mines
6
200 Overall Best Team in First Aid and Best Team Member Award - Rajpura Dariba Mines
6
200 Greentech Safety Silver Award in Metal Sector - Rampura Agucha Mine
6
200 Greentech Environment Excellence Silver Award in Metal Sector - Rampura Agucha Mine
6
Quality
200 Best4 Integrated Management System Certification - Debari Zinc Smelter
6
200 Best4 Integrated Management System Certification - Vizag Zinc Smelter
6
HR
200 Golden Peacock National Training Award
6
Others
200 Federation of Andhra Pradesh Chambers of Commerce & Industry (FAPCCI) - The Amancherla
6 Ramamurthy Silver Rolling Trophy - for Excellence in All Round Performance in industrial
activity
200 Golden Peacock National Training Award
6
200 SA 8000 Certification - Debari Zinc Smelter
6
200 SA 8000 Certification - Vizag Zinc Smelter
6
CSR
200 Overall Best Performance Shield and 10 Prozes in Community Development - Zawar Mines
5
HSE
200 National Energy Conservation Award 2005 in Mining Sector - Rampura Agucha Mine
5
200 Greentech Gold Award for Environmental Excellence in the metal sector from Greentech
5 Foundation for 2005-06 - Vizag Smelter
200 Greentech Bronze award for safety performance during the year 2005-06 - Chanderiya Lead and
5 Zinc Smelter
200 Greentech Environment Excellence Silver Award in Metal Sector - Vizag Zinc Smelter
5
200 Greentech Silver Award for Environmental Excellence in the metal sector from Greentech
5 Foundation for 2005-06 - Rampura Agucha Mine
200 Best Safety practices Award from Director General of Mines Safety during the year 2005-06 -
5 Rampura Agucha Mine.
Others
200 Best Non-Ferrous Metals Company Award
5
200 Best Management Award - Vizag Zinc Smelter
5
200 Placed Overall First in Underground Mine in the Udaipur region - Zawar Mines
5
200 Best Team Award on Recovery - Rajpura Dariba Mines
5
200 Placed Overall Second in Underground Mine in the Udaipur region - Rajpura Dariba Mines
5
200 Excellence Award in the Open Cast Mechanised Mines Category - Rampura Agucha Mine
5
200 Overall First in Mechanised Open Cast Mines category in the Ajmer region - Rampura Agucha
5 Mine
200 Recognition as a R&D Unit
5
HSE
200 British Safety Council's National Award - Chanderiya Lead Zinc Smelter
4
200 National Safety Council Award - Chanderiya Lead Zinc Smelter
4
200 OHSAS-18001 Certification - Vizag Zinc Smelter
4
200 Greentech Safety Silver Award in Metal Sector - Chanderiya Lead Zinc Smelter
4
200 Greentech Environment Excellence Silver Award in Metal Sector - Zawar Mines
4
200 First Prize in afforestation/ waste dump management - Rajpura Dariba Mines
4