Professional Documents
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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.
Actual results might differ substantially or materially from those expressed or implied. Important
developments that could affect the company’s operations include a downtrend in the iron
ore, steel, pig iron & met coke industry – global or domestic or both, significant changes in
political, economic, business, competitive or regulatory environment in India or key markets abroad
and from numerous other matters of national, regional & global scale including but not limited to
natural calamity, tax laws, litigations, Government policies & regulations, fluctuations in interest and or
exchange rates of Indian Rupee, etc. Any forward-looking information in this presentation has been
prepared on the basis of a number of assumptions, which may prove to be incorrect.
This presentation should not be relied upon as a recommendation or forecast by Sesa Goa Ltd. The
views expressed herein may contain information derived from publicly available sources that have not
been independently verified; no representation or warranty is made as to the accuracy, completeness
or reliability of this information. We do not undertake to update our forward-looking statements.
2010, Sesa Goa Limited 2
Sesa Goa Limited
88.25%
100%
SESA COMMUNITY
SESA INDUSTRIES VS DEMPO & C0.
DEVELOPMENT
LTD LTD
FOUNDATION
100%
- Pig Iron Business - Sesa Technical School
DEMPO MINING - Sesa Football Academy
Goa – Amona CORPORATION
LTD Goa - Sanquelim
1 Vale 227.3
50 2 Rio Tinto 217.6
Orissa 3 BHP Billiton 137.0
10
4 Sesa Goa-Vedanta# 50.0
4 Metalloinvest 45.5
10 Karnataka
5 Anglo American 41.6
10 6 ArcelorMittal 35.9
21.4
Goa-Sesa 7 FMG 33.9
16 3.6
1.9 8 NMDC 31.0
12.4 2 4
2 2.8
20 9 CSN 29.0
1.9
11.2 11.9 Total 10 Metinvest 30.6
8.5
11 Cliffs Natural Res. 29.0
FY 2008 FY 2009 FY2010 FY 2013 (Run Rate) 12 SAIL 25.0
13 Sesa Goa-Vedanta* 21.4
14 LKAB 17.7
15 Evraz Group 17.4
Source: Metalytics
* Actual Sesa production
#Post expansion of 50mtpa
4
Sesa is on course to be world’s top four iron ore mining companies
2010, Sesa Goa Limited
Q4 FY 2010 – Highlights
Strong operating performance - highest ever quarterly and annual production and
sales of Iron ore.
Exploration resulted in successful net increase in reserves and resources by 43
million tonnes.
Proposed dividend of 325% or Rs. 3.25 per equity share of Rs. 1 each
Reclaimed Sanquelim Mine awarded the “Certificate of Appreciation for Plantation
Management” by Confederation of Indian Industry
Strong balance sheet with cash and cash equivalents of Rs. 6,952 crore
(Rs in crore except as stated)
Orissa
Goa
Karnataka
Thakurani Mine
2010, Sesa
2010,
GoaSesa
Ltd, Investor
Goa Limited
Presentation 6
Iron Ore - Goa Operations
Drying of ore
2.5 KMS 16 KMS Hauling/Loading
Mother vessel
16 KMS
Railway Yard
1 KM
Mine Processing
Plant
Prospecting
290 KMS
Blasting/Drilling Dry Screening
Dozing Railway Yard
Loading/Hauling
429 KMS
75 KMS
Mangalore Goa
Paradip Haldia
10
India has significant iron ore reserves – estimated at 25 billion tonnes .....
2010, Sesa Goa Limited
Exploration
Well-defined focus and actions in the direction are in place.
Focus Areas:
… past performance & current progress give us confidence in achieving similar R&R tonnage increase as last year.
11
2010, Sesa Goa Limited
Operational Initiatives
Operations:
Production increase by 20-25% y-o-y – existing resources
− World-class system of computerized mine planning & monitoring
− Productivity increase – improvement in availability, utilization, lead distances
− Higher capacity cost efficient plant & machinery – process plants & HEMM
Established China Office for better co-ordination with customers and to have
insight of the biggest market.
Mt
Consumption - (World) Long Term
3000
Medium Term Forecast CIS
2500 Forecast
History China
2000 Europe
North America Other Asia
1500 -552 -188
1000
ME and Africa
500
India
0
Central &Sth America
Australia
• Supply: Based on currently active mines and capacity enhancements
as well as new developments likely to come online
• Recent press announcements confirm strong supply situation Western World with
445
Eastern World with
massive overcapacities constant undersupply
• Demand: strong demand is seen at the back of economic recovery
and the demand is seen with positive growth in medium term forecast
• Strong demand is seen from Asia majorly driven by China
• Conclusion: There is supply gap in near term but however there could
be an oversupply persistent for some time by 2014 onwards.
supply of seaborne IO
demand of seaborne IO
2009 2013
Source: Metalytics, Secondary Analysis
2010, Sesa Goa Limited 15
Iron Ore Fines Spot Price Movement
160
140 137 140
132 130
120 120 120 118
105
100 94 97
FOB US$/ DMT
80 74 76
68 70
65
60 58 59 61 58
53
59
49 49 52
48
44
40
20 US$/t FOB Fe 61/61
1400 1,359
1,199
1200
1,057
978
1000
896
846
800 775
711
662
600
600 524
452 484
400
200
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
SIL manufactures several grades of pig iron, including basic grade, foundry
grade and spheroidal (nodular) grade.
SIL‟s facilities are located at the village of Amona, in Bicholim Taluka, North
Goa.
SIL has two blast furnaces, each with a working volume of 173 cubic metres
with a combined annual capacity of 0.250 million tonnes of pig iron.
In FY2009 external revenue from pig iron operations were Rs. 582.7 crore.
SIL produced 0.217 million tonnes of Pig Iron
Current capacity of the Pig Iron plant is 0.250 million tonnes (SIL has
produced 0.271 million tonnes in FY 2008)
0.625
PIG IRON COKE 0.560
Million Tonnes (Capacity)
0.280
0.250
FY 2010 FY 2012 E
Best mine reclamation practice are followed & considered to be trend setter in the
industry:
− Geo-textiles
− Medicinal Garden
− Astral garden /Nakshatra Van
− National Environmental Research Institute (NEERI) project
− Goa University , Goa Project on Ectomicorrizhae.
− Agri- Horticultural plantation on mine dumps.
− Butterfly Park & Bamboo Pavilion in reclaimed mine site (ongoing).
Sp. Energy
Con.
(GJ/Ton)
Sp. Water
Con.
(KL/Ton)
4.5
LTIFR
4.2
4
3.64
3.5 3.52
3
LTIFR
2.5
2.16
2
1.8
1.5 1.2
1.13
1
0.5
0
FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY2010
Sustainability Report
− (A+ Level) as per International GRI G 3 Guidelines.
Best Value Creator (Large Cap) category – Outlook Money NDTV Profit Awards 2008
Sustainable Asia Mining Project of the year Award at Asia mining congress held at Singapore.
CII-ITC Sustainability Award (Commendation for Strong Commitment among Large Business Organisation)
for the year 2008.
First prize for Corporate Social Responsibility by Inspectorate of Factories & Boilers - Govt. of Goa, Ministry
of Labor - Govt. of India and Green Triangle Society Goa.
Sesa Industries Limited - Pig Iron Plant, Amona has won International Safety Award for 2008 instituted by
British Safety Council , London.
10th best company in the country’s most investor friendly companies & Ranked 55th in BT 500 – India’s
Most Valuable Companies in a survey conducted by Business Today.
'Golden Peacock’ Award won by Pig Iron Plant for Occupational Health & Safety – 2008’. Also, National
Award for Excellence in Water Management 2008 by CII–Godrej Green Business Centre and First prize in
National Sustainability Award by Indian Institute of Metals.
Sesa Industries was Runners up in the “Good Green Governance Award” in the metallurgical Industry
category, a Srishti G-Club national Award for Sustainable Environmental Management Excellence.
Pig Iron Plant has been awarded 5S certification in work place management by the Quality Circle Forum of
India (QCFI).
2010, Sesa Goa Limited 25
Sesa Goa’s Journey
of last 56 years
continues……