Extractive to Additive. The Story We Mine. Sustainability Report

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Extractive to Additive.

The Story We Mine.

Sustainability Report 2013 14

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Our Vision

Our Mission

Black Mountain Mining strives to be world-class, driven by a professional team that is trustworthy and passionate about sustainable mining for the benefit of all stakeholders.

In practice, this vision means:

Creating a performance and sustainability culture amongst our people Debottlenecking the production processes

Cost Leadership to get into Q1/2 of the C1 Curve by moving from 80ktpa to 120ktpa metal output Optimising the life of the mine reserve and resources

Ensuring highest governance of the business

Improving public image both regionally and nationally

We are committed to excellence in all aspects of our business and dedicate ourselves to our vision through: Sound safety, health and environmental practices

Development of people, knowledge management and skills potential Nurturing mutually beneficial relationships with all our stakeholders Ensuring attractive returns on investment for our shareholders Maximising output from mining and processing operations Heightened technological and production practices Responsible and sustainable life of mine strategies

We abide by the Vedanta plc Code of Business Conduct and Ethics.

Production and profits will not compromise safety, health or the environment. We promote fairness, transparent communication, dignity and trust.

Co-operation and teamwork form the cornerstone of our operation. We encourage individuals to develop and strive for excellence. We expect and recognise superior performance.

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Values

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ABOUT THIS REPORT

This is the first sustainability report of Black Mountain Mining Pty Ltd (BMM), as per the international guidelines of Global Reporting Initiative (GRI), an organisational sustainability report that discloses our economic, environmental, social and governance performance. Through this sustainability report, BMM aims to present its activities, issues and practices of the past year, while sharing its plans for the future. Sustainable development is an integral part of our business practices, long-term strategy and overall ethos and we have attempted through this report to reflect our triple bottomline approach. While creating this report, the guiding principle was to be as clear and transparent as possible.

BMM has been part of the sustainability reports of our parent company Vedanta Resources plc. The economic, environmental and social information has been taken into account and covered regularly in Vedanta’s annual sustainability reports, which have been independently audited and certified by DNV GL.

This report covers the reporting period from April 1st, 2013 to March 31st, 2014 and we intend to make sustainability reporting a practice and report annually henceforth. This report is based on the GRI ver 3.1 Guidelines and GRI’s Mining and Metals Sector Supplement (MMSS), and we have aimed to report on all relevant core and additional indicators, complying with application level A. The data points reported cover economic, environmental and social performance indicators as per the GRI G3.1 Guidelines (see page 56 for the GRI Content Index).

This report covers all operations related to Black Mountain Mining (Pty.) Ltd. It covers the Black Mountain Mine consisting of the two ore bodies - Broken Hill Deeps and Swartberg. This report does not cover the Gamsberg Project as it is currently in the pre-feasibility stage and is scheduled to be ramped up in first quarter of 2015. We have no other subsidiaries or joint ventures.

The data presented in this report has been collated from and reported by various departments within the organisation for the period of April 1st, 2013 to March 31st, 2014. The data and figures in the report are actual numbers based on the methodology and standard management systems followed by our Health, Safety, Environment, Corporate Social Responsibility and other departments, in line with industry practices. Our performance will be be reported henceforth on a year-on-year (YoY) basis and forthcoming performances will be compared with the current year’s performance; therefore targets for the coming years will be set and reported as and where applicable. The report is organised into broad dimensions of the Company’s sustainability performance and the content is based on the concerns voiced by our stakeholders, both internal and external. We follow a structured process to collect inputs for our report. Our stakeholder and materiality sections outline critical issues, as well as our focus areas for the forthcoming years.

We value the feedback of our stakeholders and welcome any suggestions and comments on this report or any aspect of our approach to sustainability reporting. Please email to: [email protected] or [email protected]

No. Company SD Report ISO 14001 OHSAS 18001

Operations covered for Black Mountain Mining (Pty.) Ltd. for the SD report 2013-14

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Extractive is always looked down upon as an industry which ‘takes away’ rather than ‘gives back’. Which is precisely why, in this report, we want to tell you about ‘The Story We Mine’. How we strive to leave a positive impact on society and the environment even at the time of foreclosure of our mines.

We believe any growth, especially in the developing world and especially South Africa, should come only if it helps build a new world with sustainable opportunities for all stakeholders. Extractives to additives - the journey needs to undergo a process of empowering the individual, society and the community.

The specific tasks that emerge are:

With the acquisition of mines, there are always a few known and unknown challenges and issues. As a company focused on delivering stakeholder growth, we like to foresee risks and plan accordingly. In fact we are known to take challenges in our stride and turnaround companies. As a step in the same direction is the revival of the Swartberg Mine project and the development of the Gamsberg Project.

The Story We Mine

A New Sustainable World

Growth and Expansion

Empowering Employees

In this report our effort therefore would be to share with you our strategy, processes and outcomes, which will leave you in no doubt that extractives can become additives and add value to society at large.

Make the workforce feel empowered to take business decisions Empower the local community

Build trust in people and society

Manage the surrounding physical environment in a responsible manner

The key to high productivity and long-term success of any organisation is building the competence of the workforce and creating an environment where employees are motivated and empowered. At Black Mountain Mining, the “Manage my career” initiative gives individuals •

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STATEMENT FROM THE MANAGEMENT

KISHORE KUMAR Chief Executive Officer of Base Metals

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An enterprising group of our young leadership team visited the Zincgruven Mine, Sweden to study the best practices at the mine and use these as a benchmark for enhancing and improving practices at BMM. The team came back with a renewed focus on benchmarking specific areas of improvement at BMM, namely Manpower and Productivity, Cost of Production, Use of ERP systems, and SHEQ practices.

USD 9 mn since 2012 in exploration and drilling to extend the life of mine.

Further, Black Mountain Mining is also a part of Northern Cape Safety Tripartite forum that meets on a quarterly basis. This forum consists of Safety representatives from the Northern Cape Mines, the Unions and the Department of Mineral Resources. This forum discusses and deliberates issues involving improvement of Safety in the province through sharing of lessons learned from accidents and incidents.

Mine Revivals and Longevity

Health and Safety of Our People

Ecological Sustainability

Social Responsibility

Doing the Right Thing for Today and Tomorrow

Our strategic focus is on increasing the mine life of assets through LOM extension methods and continued exploration. Our keen efforts have already seen results with the revival of the Swartberg Mine, seen as one of the most strategic assets of the Black Mountain Mining as it extends the life-of-mine by another 15-20 years. Further, we have invested up to

Currently, the feasibility study of Gamsberg is underway and we are in the process of evaluating technical and financial options.

Health and safety is of paramount importance to us, and we remain dedicated to providing a safe workplace for our employees. Fall of Ground (FoG) remains one of the biggest challenges in safety faced by underground mining operations. Whilst our endeavour has been to mitigate this risk, we lost a precious life unfortunately due to FoG in the reporting period. Extending our deepest condolences and full support to the aggrieved family, the regretful incident has made us determined to ensure an even more rigorous safety management system. With a view to avoid such incidents recurring, we upgraded our engineering and administrative controls, and put in place a FoG management system.

Mining is not without its challenges. However, we believe in seeking sustainable solutions for the challenges – solutions which would leave a positive legacy. Our operations at BMM are in the bio-diversity hotspot zone of Bushmanland and we have endeavoured to ensure minimal impact of our operations on the sensitive ecosystems by implementing a sustainable Biodiversity Management Plan. We have therefore collaborated with International Union for Conservation of Nature (IUCN) to develop a Sustainable Biodiversity Management System in the Namaqualand Region.

Water management is a key challenge for the mining industry. Since BMM is located in the dry, arid hotspots of Bushmanland, preservation of the source of water - Orange River also plays an important role.

Social upliftment of society through education, health initiatives and local empowerment is very important. As we are located in an intensive sun radiation zone, we organised a corneal transplant surgery for about 400 patients in the Khai-Ma region during the reporting period. In addition to that, we have several programmes and initiatives in place to comply with our commitment of Social and Labour Plan.

Accountability and transparency are key issues that our top leadership directly gets involved with and it’s one of the principle pillars of the sustainability strategy at BMM.

This being our first sustainability report, I personally seek your valuable feedback, as you are one of our key stakeholders. Your inputs and analysis will help us to improve and enhance our sustainability performance further.

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Dear Stakeholder,

I am pleased to present to you the first sustainability report of Black Mountain Mining, which adheres to the international guidelines of Global Reporting Initiative G3.1. This report discloses the performance of our operations in an honest and transparent manner, whilst following the Vedanta Group’s sustainable values.

Our business focus remains on extension strategies for the life of mines. It’s with this intent that completion of the feasibility studies of the same are currently in progress for the Gamsberg project and and we are planning to extend the life of mine for another 15-20 years with the revival of the Swartberg Mine.

Despite our best efforts to ensure a safe and secure workplace for our employees, it was unfortunate and regretful to have lost a precious life during the reporting period due to Fall of Ground (FoG). The fatality highlights the fact that there can be no scope for complacency in safety management and the need for us to be vigilant every second in everything we do. Determined to avoid recurrence of serious and fatal incidents, we have upgraded the system with the enforcement of Trigger Action Response Plan (TARP) system, mandating the use of scalers for loose rock, safety orientation and refresher of workers amongst other things. We have tightened our safety systems with a no compromise attitude at the management level. A Sustainability Committee headed by the COO oversees the policy, implementation, audit and review of safety standards. Aligning the safety initiatives with social and specific behavioural attitudes, we have launched a customised behavioural approach program - Zero Incident Process (ZIP). ZIP is based on psychological understanding to change the way an employee thinks and behaves by enabling change in the attitude and thereby perception towards safety.

The life of a mine is finite and our responsibility towards our employees - an integral part of our operations - is to ensure that they have the best learning and development environment, giving them the opportunity to upgrade their skill sets and learn life-skills. At BMM, we have initiated a Future Forum programme to ensure that our employees are equipped to handle life after mine closure. Future Forum aims to address the impact of the loss of jobs and other issues associated with mine closure, well in advance of them occurring, should no additional resource be identified that may increase the current life of mine.

Employee health is tracked regularly through a medical surveillance and a hygiene Additives from Extractives

Safe Work Culture

Employee Wellness

STATEMENT FROM THE MANAGEMENT

ANTON LUBBE

Chief Operating Officer of Vedanta Zinc International

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Social Responsibility

Environmental Responsibility

Community is amongst our foremost stakeholders and there can be no sustainable mining project that can ignore the community. Creating sustainable economies around our mining projects is a part of our long term CSR strategy especially in lieu of the mine closure in future.

At Black Mountain Mining, we have reviewed existing Social and Labour Plans and are soon moving the same to a broader business aligned Social Plan.

We are using technological advances and innovations to initiate a pilot project of producing magnetite concentrate at BMM, which will result in us reducing our tailings storage and thereby create a multitude of opportunities. For Gamsberg project we have institutionalised a mitigation hierarchy in the project design to minimise the environmental footprint and have developed an offset plan for all residual impacts.

I welcome all our stakeholders to write back to us with their suggestions, which will help us to improve and enhance our sustainability performance.

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Dear Stakeholder,

I take pride in presenting our first sustainability report as per the international Global Reporting Initiative guidelines version G3.1 of Black Mountain Mining (BMM). This report highlights our performance and our focus on enhancing the economic, environmental and social performance of the Company.

In a true business sense, sustainability for mining is the Life of Mine as mines have a finite life. The story of mining thus revolves around extending life of mine by near mine and exploration techniques, the story of our strong economic development, our human potential, our relationship with the community and the Khai-Ma region.

This reports talks about some of the successes that we have had and performed in the economic, environment and social areas.

The economy of the mine as well as the socio-economic situation of the Khai-Ma region depends on the sustainability of our operations, with the current Deeps mine expected to wind up and close within the next six years. However, our thrust on engaging new techniques and exploratory methods for extending the life of mine has borne fruit with the revival of the Swartberg Mine. At the time of this report, the Swartberg Mine, with operations commencing by 2016, is on its way being opened, extending the life of mine for another 15 years and creating 300 more jobs. Our strategy is also to keep the cost structure robust with low cost operations, without compromising on the quality and safety of employees, through a change in mining techniques. The Swartberg Mine will be developed as an open pit operation that will later evolve into an underground operation, producing 3,00,000 tonnes of ore per annum initially and ramping up to 2.4 million tonnes per annum when it reaches full underground capacity after six years.

Safety of our employees continues to be of utmost importance to us, focussing on continual improvement of our safety statistics and pursuing the highest standards on safety management systems including OHSAS 18001. However, despite our best efforts, it aggrieves me to report a loss of life of one of our employees due to a fatal accident when a Fall of Ground (FoG) took place in the mine. This tragic loss of life has endeavoured us to double our efforts in ensuring more rigorous safety mechanisms in place. FoG being one of the biggest risks and challenges in underground mining, we are determined to avoid incidents of FoG again. We have

The Story We Mine

The Economic Story

The Safety Story

STATEMENT FROM THE MANAGEMENT

ANDRÉ TRYTSMAN General Manager, Black Mountain Mining

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The Employee Story

The Community Story

Environmental Responsibility

Being one of the largest employers of the Namaqua region, employees are an integral part of our Company. Over 80% of our workforce is from the local region of Khai-Ma. With BMM located in an isolated region, our responsibility is not just with employees, but also the families and the town of Aggeneys, established to service the mine.

Our people practices emphasise training and development of our employees and we also award bursaries in the specific disciplines in the regional universities and institutions, encouraging higher education in the region. At the same time, it helps BMM in case of a need or shortage of qualified people. As a progressive measure to help our employees in developing life skills for their future after their jobs, we have launched a Future Forum programme, ensuring that our employees are equipped to handle life after mine closure. Future Forum aims to address the impact of the loss of jobs and other issues associated with mine closure, well in advance of it occurring, should no additional resource be identified that may increase the current life of mine.

Creating sustainable economies around the mine is a key focus for us at Black Mountain Mining, and we continue our support to the communities around our mine in areas of education, health and sustainable livelihood amongst other need-based initiatives. We are one of the key sponsors of the iSchool Africa initiative and have donated iPads to 4 primary schools at the rate of 20 each for use by all learners. This initiative has seen more and more children excited by the reality of engaging in e-learning as part of this digital age. The Namaqua region being one of the most radiation intense regions, eyesight-related issues are high amongst the population. BMM contributes towards a “zero cataract in the Northern Cape”, by supporting cataract surgeries in the area. We have set a target of 400 cataract surgeries at the start of the 2014 financial year.

We aim to develop alternate livelihoods for the communities so as to balance their dependence on the mine. As a major step towards this, we funded the training and mentorship programme for 45 Small, Micro, Medium Enterprises (SMMEs) in the Khai-ma Local and Namaqua District areas. We established and funded a brick-making project in community of Pella. This project has already secured contracts to supply the bricks for 60 RDP houses in the municipal area.

The Namaqua region is considered as one of the Biodiversity hotspots, and we make every attempt to manage the biodiversity and ensure that our operations have minimal impact on it. BMM is in a formal partnership with International Union for Conservation of Nature and Natural Resources (IUCN) that aims to ensure a sustainable biodiversity management system and to enhance and diversify rural livelihoods in and around the BMM properties. For the Gamsberg project, we have institutionalised a mitigation hierarchy in the design of the project to minimise the environmental footprint and have developed an offset plan for all residual impacts.

We have initiated a pilot plant and tested the viability of producing marketable magnetite concentrate, with over 10,000 tons of concentrate produced and sold. The success of this experiment will not only enable us to reduce and manage our tailings, but also add a 5th product to our already existing product portfolio.

We believe that in the story we mine, we should have a moral of the positive imprint we leave behind.

I welcome all our stakeholders to write back to us with their suggestions, which will help us to improve and enhance our sustainability performance.

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Located in the Northern Cape Province of South Africa, Black Mountain Mining (Pty) Ltd. (BMM) is the largest employer in the Bushmanland and Namaqua region and has been in production for the past three decades. BMM is a base metal company chiefly comprised of the Black Mountain Mine, with operations in Exploration, Development, Production and sale of zinc, lead, copper and silver. It comprises of the Black Mountain Mine and the Gamsberg Project.

While the Gamsberg Project is in the pre-feasibility stage, the operation Black Mountain Mining (BMM) has the potential to be operational for another twenty years. The Black Mountain Mining is an operation of Zinc International, which is a group of the Zinc assets in Africa and Ireland of Vedanta Resources plc. Vedanta Resources plc is a diversified natural resources group, with a market capitalisation of over US$10 billion that produces aluminium, copper, zinc, lead, silver, iron ore, power, including oil and gas. The Group has the world's largest zinc and lead mines, is one of the leading producers of copper and aluminium, is the largest private sector iron ore exporter from India, and is also involved in commercial thermal and wind power generation projects, with plans to double power generation within the next three years.

The primary products of BMM are zinc, lead, copper and silver with mining around the town of Aggeneys in the Northern Cape Province of South Africa.

THE STORY WE MINE

Year Milestone 1971 1971-73 1974 1976 1977 1980 1995-97 1998 1998 1999 2000 2004 2006 2008 2010

Phelps Dodge entered into a prospecting agreement with David Graaf Interests

Exploration drilling by Phelps Dodge at Swartberg Mine, Broken Hill and Big Syncline

Underground bulk sampling started at Broken Hill

Phelps Dodge commissioned a feasibility study at Broken Hill

Phelps Dodge and Gold Fields of SA partnership (49%:51%)

Official opening of mine on April 22nd, 1980

Prospect mining started at Swartberg Mine, followed by feasibility study

Deeps orebody discovered

Anglo American acquired Black Mountain Mining and Gamsberg (100% interest)

Feasibility study on the Deeps project commenced

Approval of Deeps project in May 2000

Deeps Main and Ventilation Shaft completed

Mining at Broken Hill and Swartberg Mine discontinued

BEE deal between Anglo American and Exxaro concluded – Black Mountain Mining and Gamsberg 26% owned by Exxaro

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Organisation Structure

The Vedanta Zinc International Management Structure

The BMM Management team

Vedanta Resources Sesa Sterlite Lisheen (Ireland) BMM (South Africa) Skorpion (Namibia) 58.3% 100% 74% 100%

The remaining 26% in BMM is owned by Exxaro.

Name Designation

André Brendan Jales Andre Basson Septimus Holtzhausen Mario Wendell Cloete VS Ganesh

Pieter David Venter George van Greunen Sean Jenniker

Trytsman General Manager HR Head, South Africa

Mining Manager

Metallurgical Manager

Engineering Manager

Finance Manager

Safety and Sustainability Manager

Mining Manager Swartberg Mine

Mineral Resource Manager Awards

Black Mountain Mining was awarded the “Best Company to Work For” title in 2012 by Deloitte. BMM stood 22nd out of 36 medium size companies. In the mining category, BMM took 3rd place out of 4 companies who participated.

CEO - Kishore Kumar

S L Bajaj Advisory Board

GM Finance Vijay Murthy VP - HR Braen Migogo COO Anton Lubbe 3 GMs VP Projects Satish Kumar GM Exploration Markus Schaefer GM Bus. Devpt. Marco Nyoni GM - Skorpion Prasad Suryarao GM - Lisheen Alan Buckley GM - BMM A Trystman Manager - SSD Lovish Ahuja

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We have implemented and adapted world-class management processes and standards to integrate sustainability into our business. BMM adheres to the highest standards of ISO 14001 in environment management and OSHAS 18001 in Health and Safety.

APPROACH TO SUSTAINABILITY

As part of the Vedanta Group, we also are committed to following the Vedanta Sustainability Model – comprising of the three pillars: Responsible Stewardship, Building Strong Relationships and Adding and Sharing Value.

We also follow the Vedanta Sustainability Framework that has been developed based on the Vedanta Sustainability Model. The Framework provides a clear, structured guidance to manage our business sustainably. It comprises of a full set of policies, technical and management standards and supporting guidance notes aligned to international standards like IFC, ICMM and OECD guidelines. By using the Vedanta Sustainability Assurance Programme (VSAP), all the Group companies ensure compliance of the Framework, through an audit of our business and processes. A gap analysis was conducted to identify the gaps between our existing management systems and the Framework, basis which we implemented additional requirements needed to match the Framework.

Stakeholders and Materiality

We believe that stakeholders are key to the success of any business. Therefore we constantly strive to understand our stakeholders' needs and engage with them effectively to make a positive impact to both our business and their needs.

Our key stakeholders are listed below. We aim at working with our stakeholders towards achieving a common goal. The modes of engagement and concerns and what BMM has done to address them are listed in the table below as well.

Reponsible governance supports relationship building Value will help

us to maintain a licence to operate Relationships enable us to contribute to wider society Responsible Stewardship Building Strong Relationships Adding and Sharing Value Long-term sustainability

Stakeholder and Significance Mode of Engagement Key Sustainability Concerns

Vedanta Resources Plc EXCO Meetings, Annual Reports Profits through sustainable business

Government

Regulatory Bodies and Policy Makers

Regular meetings and structured communication on key parameters a. economic;

b. environment, health and safety; c. social issues; and

d. regulatory trends

Regulatory Compliances and Community Interest, Environmental Management Plan, Social Labour Plan, BEE Policy

Employees _{Communication, Workshops & Training,}

Performance Appraisal, Township

?Future Forum ?Health and Safety

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Community _{Need-based discussions/written}

communications;

Economic development

Livelihood

Employment

Community Welfare & Relations

Suppliers Formal communication through letters & online web updates on policies and practices

SMME programme

Policies & Practices related to Suppliers

SMME programme

HDSA/BEE Policy

Stakeholder and Significance Mode of Engagement Key Sustainability Concerns

Materiality – Material Issues

A materiality determination exercise was conducted to identify the most material issues to Black Mountain Mining, adhering to the principles of GRI. The issues were identified by following the steps below:

1. Organisational Perspective 2. Stakeholder Engagement 3. Industry Analysis

Based on these interactions and assessment, material issues were identified. These issues were then discussed in a pan-department materiality assessment session, based on which the first 7 were identified to be priorities. ?Energy ?Waste ?Emissions ?Community Development ?Safety ?Life of Mine ?Water ?Biodiversity ?Business/Economic Performance

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The organisational structure and governance framework at the Group level ensure a strong system of authority and accountability to operational management, within the purview of the business strategy, policy guidelines and standards laid down by the Board of Directors. The executive team, constituting the operational (divisions and units) management and other corporate functions, ensures the Company’s sustainability development standards are maintained and operations are aligned to these standards. The structured internal review process consists of the following committees, other than the statutory committess for works, safety and welfare.

Executive Committee (at the Vedanta group level) Zinc International Management Group

Operations Review Committee Compliance Committee Sustainability Core Committee

For all the Zinc International Operations, remuneration is linked to sustainability performance. The Remuneration Committee of the Board of Directors reviews the performance of each operation on the dimensions of safety, business, financial and other sustainable development parameters. This is used as the basis for setting the annual performance payments and incentives for the senior management. The variable performance system for executives is linked to Company and unit performance on profits, safety performance and other key drivers of performance. Safety performance is also a factor applied to individual performance in the evaluation and reward of final incentive. ? ? ? ? ? Code of Conduct Whistleblower Policy

We have adopted our parent company, Vedanta Resources’ Code of Conduct for all our employees, including the senior management. The Code of Conduct covers aspects like conflict of interest, human rights, bribery, insider trading, whistleblowing, gifts, confidentiality, etc. All our employees are required to reiterate their adherence to the Code of Conduct.

BMM broadly follows Vedanta Group’s Whistle Blower Policy. In that we are committed to the highest standard of transparency, accountability and openness in all our dealings with stakeholders in line with good corporate governance principles. Our Whistleblowing Policy has been adopted to govern receipt, retention and treatment of complaints, and to protect the confidential,

Corporate Governance

We follow the Vedanta corporate governance systems and have extensive internal audit systems as well as external audits. Our EXCO committee consisting of the GM and other senior management report to the CEO – Vedanta Zinc International and Vedanta Base Metals, Africa, Ireland and Australia.

Name of the Director Category

R. Kishore Kumar S L Bajaj A Lubbe A Trytsman P A Koppeschaar J C Badenhorts V J Murthy CEO Exxaro COO

GM Black Mountain Mining

Exxaro

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Economic Performance

Black Mountain Mining brings considerable economic benefits to the local community and contributes indirectly and directly to the Khai-Ma and the Namaqualand region as a whole. Aggeneys being a dedicated mining town, most municipal services in the town are currently provided and funded by the Company.

There has been a decline in the production of Zinc for the reporting period of 2013-14, mainly impacted by the falling grades of the ore from Deeps. The production was also affected by an accident caused at BMM. During the financial year March 2014, BMM's profit was 35.97 million USD. Production - MT / Year 2011-12 2012-13 2013-14 Zinc production MT Lead Production - MT Copper Production - MT Silver Production - MT - 31,769 53,578 2,709 54 38,577 48,883 3,799 51 28,999 37,574 6,880 46 Zinc Sales Lead Sales Copper Sales Silver Sales

Turnover (US$m)

Sales performance in MT

Zinc Lead Copper Silver 2013-14 2012-13 2011-12 (in USD)

Direct Economic Value Generated (A)

Economic Value Distributed (B)

Economic value added (A-B)

Revenue (through core business segments) Other Income (through other sources) Total

Operating cost

Personnel expenses (wages+benefits) Interest Charges

Taxes and royalties (given to various govt. wherever business units are located) Dividends (payments to capital providers)

Donations (political parties/politicians) Community development/CSR investments Total 171,946,735.28 200,207.62 172,146,942.91 80,094,862.40 31,252,003.39 27,188.69 23,860,101.83 27,188,689.51 7,071.59 473,068.80 162,902,986.21 9,243,956.70 211,887,334.64 375,596.23 212,262,930.87 95,103,585.14 35,522,333.70 28,901.06 32,524,510.68 26,433,891.77 17,458.94 533,516.06 190,164,197.35 22,098,733.52 288,535,738.70 2,796,370.51 291,332,109.21 114,383,492.78 44,250,713.70 63,395.48 59,260,832.85 0 76,595.54 226,754.08 218,261,784.44 73,070,324.77

25,198

37,941

6,929

46

27.15

32.16

69.18

41.04

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Our Swartberg Mine project is expected to provide more opportunities for growth since the Life of Mine has been extended beyond 15 years.

Our Gamsberg project is undergoing a series of feasibility studies and the ramp up is likely in the first quarter of 2015. The feasibility study conducted by Eskom in 2009 established that the mine's life is expected to be more than 20 years. The Tier 1 deposit at the mine looks promising with a possible yield of 400ktpa to 530ktpa of SHG zinc metal.

BMM is one of the largest private employers in the Namaqua region with about 80% of employees being locals. 62% of these local employees come from the Namaqua, Khai-Ma and Nama Khoi municipal areas.

Aggeneys, the town established to accommodate the employees of BMM, indirectly is responsible for ancillary services such as housekeeping staff and local businesses such as shops, restaurants, etc. These businesses and clubs are directly or indirectly supported by Black Mountain Mine, providing additional employment with non-mine skills development and therefore economic benefit to the area. We also support the local community with several developmental initiatives including supply of potable water to farmers in Pofadder, Pella, Aggeneys; construction and maintenance of infrastructure for public convenience such as roads (gravel road of 160 km from the N14 to Loop 10 railroad siding is maintained by BMM).

The extended life of our Swartberg Mine is likely to create approximately 300 new job opportunities when it starts operation in 2016.

Our Gamsberg project is expected to cater the growing demand for zinc in South Africa and generate foreign exchange earnings for the nation.

Black Mountain Mining has established an Environmental Rehabilitation Trust to take care of decommissioning of the mines, restoration and environmental rehabilitation liabilities. The funds in this trust are kept for rehabilitation purposes in the event of default on its rehabilitation liabilities. The funds will only be available after obtaining a closure certificate for the mining areas. The income of the trust is kept in the trust account.

To further strengthen our commitment towards environmental restoration and rehabilitation, Rand Merchant Bank, a division of First Rand Bank Limited, has issued a guarantee for USD 19.77 Million in favour of the Department of Mineral Resources, as assurance that BMM will honour its environmental obligations at the end of life of the mine, which for BMM is expected to be March 31st, 2021.

Indirect Economic Impact

Mining Closure Provisions

Growth

BMM, with a life expectancy at 2020 and beyond, has been a profit driven project, with a total production of 78,230 million Tons of ore in 2013-14. The success at BMM has been its ability to mine at very low costs. A new initiative, the pilot project of treatment of tailings to produce magnetite, is expected to independently sustain the mine. The success of this project would demonstrate efficient resource recovery whilst adding a 5th product to our existing product portfolio.

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The story of our progress in the reporting period 2013-14

Objectives and

targets 2013-14

Status

Performance FY 2013-14

Objectives and targets FY 2014-15

Health and safety Achieve zero fatal

accidents

There was one fatal accident in May 2013. Achieve zero fatal accidents

Zero lost time injuries We recorded seven lost time injuries Four lost time injuries

Zero occupational health diseases

There were no cases of occupational health diseases recorded

Zero occupational health diseases

Improve incident reporting

Target improved reporting by Safety Reps base reporting of 60% of Safety Reps submitting reports in time. This was increased to 95%

Improve reporting of near miss incidents

Vedanta Sustainability Framework

Achieved 74% against a target of 80%

Roll out ZIP to all mining employees by March 2015

Environment Achieve Zero Cat 4 & 5

environmental incidents

0 Cat 4 & 5 environmental incidents Achieve Zero Category 4 and 5 environmental incidents

Waste Management – recycling

? Develop feasibility of composting project at BMM instead of landfill disposal

? Increase recycling by including plastic recycling

? Composting project implemented by December 2014

? Recycling contract finalised with BRL December 2014

Progress Closure ? Update closure liability estimate to increase

accuracy

? Complete Plaatjiesvlei rehabilitation studies

Reduce Energy and Water consumption ?Achieve a water intensity figure of 1m3/t

(based on new product i.e. magnetite) ? Achieve an Energy Intensity figure of 0.35Gj/t Improve compliance to Vedanta Sustainability Framework. Achieve 5% improvement on the new format of the framework template

ZIP / Behaviour based Safety Programme

Roll out ZIP to all production supervisors and managers. Target achieved and also included non-production supervisors

Resource Consumption ? Water Intensity target achieved at 0.89m3/t against target of 0.98m3/t

? Energy Intensity target 0.38GJ/t achieved against a target of 0.41GJ/t

Key Risks and Mitigation

We have an effective risk assessment process to identify, analyse, evaluate and mitigate possible events or risks that might impact the business. In order to minimise the risk, we respect the precautionary principle. Risks both financial and non-financial related to the business are identified and rated as per a well-defined Risk Matrix to establish financial and non-financial impacts and their likelihood of occurrence on a scale of Extreme, High, Medium and Low. The current controls to mitigate the risk are then reviewed to enable the development of a prioritised risk management plan. A risk management committee including the management and EXCOs review the risk matrix. The committee reviews the risks, changes in the nature and extent of the major risks since the last assessment, controls and action plans.

CSR SLP LED Project

implementation

Projects implemented on time within budget Leverage support for projects for 2014/18

Sound Community and Local Government Relations

Achieved more than scheduled contact sessions with Stakeholders mainly because of sessions relating to the Gamsberg Project.

Sustain good relationships and aim to improve on same.

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Declining Production:

Our strategic focus is on increasing the mine life of assets through LOM extension at the Swartberg Mine and Gamsberg projects.

Exploration in the region around the mine is also taking place. Our keen efforts have already seen results with the revival of the Swartberg Mine, seen as one of the most strategic assets of the Black Mountain Mine as it extends the life-of-mine by another 15-20 years. Further, we have invested up to 29 Million USD since 2012 in exploration and drilling investments for the Gamsberg project. Currently, the feasibility study of Gamsberg is underway and we are in the process of evaluating technical and financial options. Commodity Pricing and Financial Exposure: Commodity prices, prolonged poor metal prices and poor metal price outcomes have an impact on the profitability of the business. Cost and production controls are in place to offset the commodity pricing.

Change Management – Deeps to Gamsberg and Swartberg Mine:

Change always creates some discomfort. As we move from Deeps to Gamsberg and Swartberg Mine, we are trying to make significant strides made in projects impacting deployment of key employees / resources to operations vs. project work. This will ensure that we are able to close the potential skill gaps for the new projects.

Swartberg Mine Economic Viability:

We are attempting to engage new techniques and exploratory methods for extending the life of mine. At the time of this report, the Swartberg Mine, with operations commencing by 2018, is on its way to be opened extending the life of mine for another 15 years and will be used to provide continuous employment for the current Deeps employees.

Threat of Business Interruption due to SA Industrial Relations/Unions: Stakeholder dialogue is the key in any industrial relations scenario. We therefore have put structured systems in place to interact amicably with unions. Organisational climate and relationship management always go a long way in thwarting the threat of business interruptions due to industrial relations. We are currently evaluating an ESOP Scheme to be looked at on an industry wide level.

Our top key risks and and mitigation plans for the reporting period are encapsulated here:

Underground Safety and Fall of Ground (FoG): Fall of Ground (FoG) remains one of the most important risks and challenges of underground mining. To avoid further fatalities and injuries, a Trigger Action Response Plan (TARP) system has been implemented and geotechnical engineers have been employed with training and scaling authorised for all underground employees. A Code of Practice on ground support has been implemented, and safety signage upgraded in remote areas. Underground employees are trained on TARP. Safety Officers regularly conduct Inspect Safe Declaration of UG workings & Access ways. Annual quality check on support installations is also undertaken.

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Ethics

Bribery And Corruption

BMM follows the Group Company Vedanta Resources' Code on Business Conduct and policies on ethics and transparency, and is committed to the highest standards of business integrity, ethical values and professionalism in all its activities. We do not accept or endorse any activities within our companies that would affect our good reputation, and the reputations of our employees. All employees are trained on the Code of Conduct and ethics policies. All new employees, as a part of the induction process, need to be aware, read, appraise themselves and formally acknowledge that they will adhere to these policies when they join us.

We have a confidential hotline process in place for reporting incidents of corruption. We have not yet provided any specific training on anti-corruption policies. Our bribery and corruption policies follow that of the Vedanta Group's policies based on the UK Bribery Act of 2010. All the business units including BMM were taken into consideration for assessing risks related to corruption. All executives of our Company have been briefed on the Company guidelines against bribery and corruption and all of them are signatories to these guidelines, having read and understood them as a part of their conduct rules. Management self-certification for compliance has been obtained and all staff self-certification is in progress. The Sign Off on Coverage of Annual Code of Conduct by the management is completed and the Declaration of Conflict of Interest and UK Bribery Act is signed off by the management on an annual basis. However, we regularly analyse our business unit for organisational risks related to corruption. We have an internal auditor and SOX auditor onsite regularly who are vigilant about such risks. During the reporting period, no substantiated incidents of corruption have been reported.

ETHICS & HUMAN RIGHTS

Human Rights

We have a detailed social policy that strives for protection of human rights. The annual induction modules include specific training on human rights for employees and security personnel. During the reporting period 2013-14, 1353 employees were in the induction process with human rights covered during the induction. We currently have 45 security officers,who have been trained on human rights. Human rights training is also an integral part of the Vedanta Sustainability Framework implementation, for which all employees received training in 2013-14. Our Code of Conduct includes clear expectations of behaviours that respect human rights.

Our Security Policy is incorporated bearing in mind specific security and human rights issues with regard to the Security Officers, employees and communities. All our employees, including the security personnel, need to adhere to this policy.

The Vedanta Sustainability Committee, in 2013-14, undertook internal reviews related to human rights and child labour risk assessment, amongst all the business units of Vedanta group including BMM. The objective of the review was to confirm that all Vedanta Group companies meet all applicable national and international guidelines and conventions on human rights with special reference to the UN Universal Declaration of Human Rights. The assessment confirms that the human rights policy is being implemented by all units.

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We oblige our contractors and suppliers to support our approach, and our contract terms and conditions insist on compliance with respect to regulations on minimum wages, contract labour, worker compensation and other similar requirements in the countries in which we operate. However, we do ensure that we do not employ or engage any child labour. We also have a specific policy for prohibiting forced labour. There are no indigenous communities living in the vicinity of the mine and therefore there are no incidents of violations involving rights of indigenous people.

In addition, BMM also has a HDSA/BEE procurement policy and we encourage and support HDSA/BEE SMME companies for our procurement needs.

At BMM, we provide our employees with a readily accessible procedure for addressing any problems or concerns they may have at work. By mode of an exclusive Grievance policy, we try and ensure a fair, expedient and equitable treatment of all employees and provide a mechanism for the acceptable solution of problems. The policy is also aimed at minimising potential causes of employee dissatisfaction. The implementation of the policy is done at three levels. It is initiated at an informal level with interaction with the employee to resolve by mutual discussion. The next level involves a four stage formal procedure for intervening into the case and paving a working pathway. The final level includes a joint forum discussion, which acts a common platform to address the issue of a particular employee and also as well as seek opinion of the masses for the same. Interestingly, we had no grievances reported in the last one year.

Grievance Redressal

Our Business Partners

Our business partners – suppliers, contractors and vendors – form an integral part of our business and hence, we have a stringent selection mode for them. At the beginning of any business interaction, the suppliers are required to submit a declaration consisting of an extensive checklist of criteria based on their credibility, bribery & corruption issues, licensing and permitting, insurance, supply chain, subcontracting, sustainability management, environment, health and safety, child and forced labour, human rights and other social issues. New suppliers, contractors and vendors are compulsorily required to fill a checklist as an undertaking that they are not engaged or involved in any activity/ies that have any significant impact or pose a risk to the sustainability performance of Vedanta Resources Plc or its group companies. This checklist is to be filled in by them during the time of registration with BMM. If it is found that the information provided in the checklist is false or misleading, it will lead to cancellation of those contracts. This checklist includes questions on bribery and corruption, supply chain/product stewardship, sustainability management systems, environment, health and safety, child labour and human rights, among others.

Contractual labour age is verified and documents maintained to prevent employment of child labour. We have not noticed any curtailment of freedom of collective bargaining at our suppliers. We also ensure that after this initial screening, our suppliers also meet the code of conduct laid down by Vedanta Resources Plc. The code of conduct clearly indicates that all suppliers should ensure compliance to all local and international norms on statutory compliances such as environment protection, child labour, minimum wages, anti bribery, corruption, health and safety, etc. Further, they should follow all environmental health and safety operational policies for smooth functioning of the system. Our procurement processes also reinforce our commitment to human rights, related to minimum wages and child / forced labour, ethical behaviour to mention a few.

Women-Led BEE deal

BMM has signed a Memorandum of Understanding with Africa Rising Women-led Group, Women-led by Ms. Mmule Lebeloane, to conclude a BEE deal through the formation of a joint venture logistics company. Africa Rising Women will, together with BMM employees and community beneficiaries, form a BEE consortium, and set up an integrated logistics company that will distribute the magnetite concentrate. Ms. Lebeloane described being women participants in mining logistics and value chain as “pleasing yet demanding, a challenge”. She further expressed the need to ensure that women in the region benefitted from the venture.

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Local Buying

Historically Disadvantanged South Africans and Black Economic Empowerment

Our foresight for sustainable and responsible mining involves local procurement of goods and services. This helps us achieve our long term vision of a resilient supply chain for economic and social development of the community in which we operate. It also plays a key role in securing and maintaining our right to mine, developing thriving and healthy host communities, creating efficiencies in our supply chain and ensuring reliable access to critical supplies. We therefore have two policies, namely, Local Procurement Policy and HDSA/BEE Procurement Policy, in place. They provide us with a general framework for procurement across the supply chain. They enable access by local businesses and HDSA/BEE to supply chain opportunities that arise from the presence of our projects and operations.

BMM's Procurement Policy applies to all Black Mountain Mining employees, including temporary employees, contractors and business partners. It is aligned to various charters and principles, including the Anglo American “Good Citizenship” Principles, the “One Anglo” approach currently being developed by Anglo American Plc and the Anglo Base Metals “Pillars of Good Practice”, to which the management is also committed. The management is also committed to the continual improvement of the efficiency of the Supply Chain, to enforcing and adhering to all Black Mountain Mining Policies and Standard Operating Procedures with due diligence and to ensuring workforce competence and responsibility at all levels through selection, retention, education and training in the Procurement Section.

BMM adheres to the HDSA/BEE Procurement Policy, with the vision to being sustainable and responsible in HDSA/BEE procurement, not only meeting the requirements of the Mining Charter, but positively contributing to a resilient supply chain and the economic and social development of the previously disadvantaged.

The objective of the HDSA/BEE Procurement Policy is to secure and maintain our right to mine, develop thriving and healthy HDSA/BEE businesses, create efficient supply chain and ensure reliable access to critical supplies. BMM's Senior and Line management have also put down their commitment to our HDSA/BEE Procurement Policy. Commitment towards supporting the development of commercially viable HDSA/BEE businesses, which also meet BMM's requirements, to encourage our non HDSA/BEE suppliers to attain recognised HDSA/BEE status among other policies to support HDSA/BEE businesses.

For the reporting period of 2013-14, our total procurement spend was USD 0.12 billion. Of the total spends, we maintained the target set by the South African Authorities for procurement of goods and services from HDSA and BEE. We also endeavour to encourage local sourcing within the municipality of Khai-Ma. The total spend for BEE for the reporting year is USD 36,276,509.47.

BEE % Spend DMR Target 2013 DMR Target 2014 36% 30% 40% 73% 60% 70% 58% 40% 50%

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CREATING POSITIVE CHANGE FOR

SMALL BLACK-OWNED

BUSINESSES IN RURAL

SOUTH AFRICA

In case of development of Small, Medium, Micro Enterprises (SMMEs), a gap exists with regard to local procurement, where very little mentoring is given to smaller, local contractors in terms of complying with the mine’s safety and other business standards. A need was seen to develop

their business skills so that these SMMEs improve their level of service offerings to Black Mountain Mining and other mines in the Northern Cape.

The project followed a phased approach to developing SMMEs in the region:

The first phase focused on gaining a greater understanding of stakeholders’ needs in the region, and after the assessment over 200 SMMEs were listed. Phase two focused on developing initial criteria for selection and contacting SMMEs on the database, through interviews and follow-up sessions, resulting in identifying 45 SMMEs to address their business needs and skills gaps. Phase three provided training and mentoring to develop 45 SMMEs. A team of trainers and mentors worked closely with SMMEs at the start of the programme to develop a SWOT (strengths, weaknesses, opportunities and threats) analysis and action plan for each business. Black Mountain Mining funded the training and mentorship programme for 45 SMMEs in the Khai-Ma Local and Namaqua District areas for a period of 6 months from April 2013 – November 2013.

The training component included the following topics: Module 1: Communication and Customer Care Module 2: Financial management

Module 3: Tendering and stakeholder engagement Module 4: Growing the business - Business Planning Module 5: Human Resource Management and Marketing

The impact of the training initiative is demonstrated by the fact that there was an increased SMME enthusiasm and various businesses gained competencies in a variety of fields. At the mentorship closing ceremony, all SMMEs expressed appreciation for the eye-opening experience brought about by this initiative.

Some of the significant impacts and improvements were:

?An increase from two SMMEs who had knowledge of breakeven point before the training, to 40 SMMEs (38 more) who had this knowledge after the training.

?An increase from 16 SMMEs with marketing in place before the training, to 34 SMMEs with marketing in place after the training.

CASE

STUDY

Phase 1: Phase 2: Phase 3: Phase 4: Macro-level assessment Develop database of SMMEs Micro-level assessment Recruit SMMEs and

prioritise training needs Training and mentoring Quality assurance and monitoring Macro-level - stakeholder engagement Assess progress Identifying next steps for a sustainable solution to grow SMMEs in the region

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Figure 1: Impact and improvement due to training and mentoring, showing increased competence

In addition to the training and mentorship, Black Mountain Mining has leased and made available a building in Pofadder to serve as a one-stop SMME Centre for overall enterprise development. BMM envisions that in the coming months, the building will be used as a one-stop SMME and community support centre in conjunction with other roleplayers like the Small Enterprise Development Agency and the Industrial Development Corporation.

Outbound & Inbound Logistics

Copper, Lead and Zinc are extracted from the ore and concentrated to a final product, which is then transported to Loop 10 siding (approximately 160 km east of Aggeneys) by road and rail to the Port of Saldanha, via the Sishen-Saldanha railway line. Currently the outbound transport by rail and road is 80:20, whilst we are aiming to achieve 100% outbound transport by rail, thereby reducing the carbon emissions.

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At Black Mountain Mining, being part of Vedanta Resources, we strive to be a high performing business where employees are empowered and engaged, leading to higher productivity and long-term success of the organisation

– Brendan Jales, Head of Human Resources

MINING HUMAN POTENTIAL

Our People

Human Resource Management

We have endeavoured to establish our people practices as a centre of excellence for our Human Capital Management.

Being a mining company, we are constantly aware that most of our workers are subjected to harsh and dangerous conditions and their safety and welfare are high on our list of priorities. We believe strongly that a company's success lies in its workforce, and therefore we aim to provide them with the safest working conditions, with no scope for occupational injuries and illnesses. This helps us to pinpoint areas of improvement in terms of health and safety, which ensures a safe working environment. Training is highly prioritised and regular training and interaction between managers, workers and supervisors, assures that all employees are well trained and aware of all safety procedures which limits accidents from taking place.

Being located in an isolated area in the Northern Cape, our key focus and challenge is to attract the right talent, develop them and motivate them to be loyal employees. Our Human Resource processes focus on managing talent, by attracting the right calibre of people, developing them and retaining their skills.

As on March 31st, 2014, the workforce at BMM, in all its units and operations consisted of 719 permanent, 81 temporary and 648 contractual employees.

By Employee Category Corporate

Categorisation 2013-14 2012-13 2011-12

Male Female Total Male Female Total Male Female Total

Employee

M1 - M3: EXCO and Senior Management 34 8 6 0 40 8 21 6 2 0 23 6 13 5 4 1 17 6

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By Employee Contract Permanent (incl Corporate)

Contract - gender data ratio to Black Mountain, no recording done 629 566 90 82 719 648 638 558 730 639 630 497 803 634 By Employee Type 34 52 595 566 Corporate

Total no. of employees in FTEs Full Time Employees

Contract 6 29 84 82 40 81 679 648 21 64 617 558 2 14 90 81 92 81 101 137 23 78 707 639 13 44 617 497 4 22 97 137 17 150 786 634 By Region 34 1213 Corporate

Black Mountain Mining

6 195 40 1408 21 1239 2 185 23 1424 13 1158 4 256 17 1570 Black Mountain Mining By Age (Permanent Employees Only, no data on Contractors)

<30 30-50 >50 Total 114 417 150 681 57 56 6 119 171 473 156 800 126 427 148 701 54 46 6 106 180 473 154 807 69 417 188 674 34 58 9 101 103 475 197 775 Categorisation 2013-14 2012-13 2011-12

Employee

BMM is focused on hiring promising individuals who are the right fit for the relevant jobs. Work performance is evaluated regularly and employees are compensated accordingly. We offer other benefits like accommodation, medical aid and retirement fund as part of our value proposition to prospective employees.

We follow a talent management process with the purpose of growing our people, where employees’ performance and potential are acknowledged. We advertise in the local media and press for job postings and we embellish our value proposition by various development and training programmes for the youth and students studying in universities in the region through Bursaries and Graduate Training Programmes.

BMM is located in the Northern Cape Province (Khai-Ma municipal region) of South Africa and most of our employees come from the region. A large percentage of our employees are housed in the town of Aggeneys.

We also follow Equity requirements as per South African Legislation that promotes equitable practices for Race, Gender and Religion.

In an effort to address employment and skills development needs in the local host communities, Black Mountain Mining has a policy of preferential recruitment from the four host communities collectively known as POPW. These areas are Pofadder, Onseepkans, Pella and Witbank. To address the low skill levels in these communities, the mine has developed initiatives to create opportunities for members of these communities to access the mine, through participation in community based skills development programmes. The main challenge is to increase the numbers drawn locally.

Local Hiring

Recruitment

Talent attraction is a challenge due to our location in the deep interiors of the Northern Cape. Our strategic focus is on following a robust recruitment process, which includes an indepth interview process and psychometric assessments. Furthermore, we want to establish our brand in the region through specific marketing-led activities.

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BMM has set up an effective skills development approach to improve skills of mine employees to ensure their development. We strive to be a high performing business and we reward employees for performance excellence. Our rewards programme is aligned to our performance management system, which includes Individual Development Plans for personal growth.

At BMM, the ratio of basic salary of men to women in all staff categories across all locations is 1:1. We follow fair and equitable employer practices and there is no differentiation between the basic salaries of men and women employees. A basic salary plus additional allowances such as shift allowances, bonuses, medical and retirement benefit payments and overtime is paid to all employees.

Women Employees

CHAMPIONING DIVERSITY –

WOMEN IN MINING

The story of Amelia Cloete – Journey of a woman miner

Amelia started working in Black Mountain Mining as an operator in 2004. By 2005, she was encouraged and motivated to climb up and become a full-time safety representative, an important task of ensuring safety vigilance by fellow co-workers. Recognising her talent and desire to grow up the ladder, BMM encouraged her and offered her several training initiatives to help develop her skills. In Amelia's own words;

“I never was made to feel that being a woman had limitations in working in the mine. In 2007, I was made a learner miner and was given a 6 months training to receive my blasting ticket. I then became, perhaps, the first woman miner working in underground operations in the region, when I was given the opportunity to work in the Deep Shaft in April 2008.”

“There has never been a dearth of opportunities here, from operating HEMMs to working in mine and then in production in 2009-11. I have got a lot of exposure in a short period of time. So when I was asked if I would like to study for the Magazine Master licence, I didn't have any second thoughts. And here I am today, a magazine master, with the enormous responsibility of securing the mine and the blast explosives.”

“BMM invests a lot in their people – in training and development, and at the same time not compromising in sanitation and hygiene facilities. Health and Safety is given paramount importance and the conditions for a safe and secure work environment have vastly improved. As a woman, don't feel any less equal than men in the work. We also get treated with respect and equality by our male colleagues even in the Deeps.“

“The top management at Vedanta empower us to make business decisions that not only motivate us to work passionately, but also embed a sense of pride in our working. I feel proud to be working at BMM - from an operator to a magazine master in a joyful journey of 8 years, makes me optimistic for the future – there is no dearth of opportunities here.”

CASE

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The number of women employees at BMM over the last three financial years is shown in the chart alongside: *Women employees represented 12.5 %,12.6% and 13% of the total workforce respectively for years 2013/14, 2012/13 and 2011/12.

Diversity and Equal Opportunity

BMM is an equal opportunity employer and all employees will be treated with respect and dignity, and judged solely on their performance irrespective of their race, religion, gender, age, disability, HIV/AIDS status or any other characteristic. BMM is committed to Employment Equity legislation and pledges. We do not discriminate employees and potential employees in terms of race and gender or disabilities.

Governance Bodies

Age group From Minority Group From Non-Minority group

<30 years 30-50

years >50 years Composition of Governance bodies (As on March 31st, 2014)

Male Female Male Female

Board of Directors 0 7 1 3 0 5 0 Employee Category <30 years 30-50 years >50 years Employee Diversity (2013-14)

Data shown only for SA nationals

Male Female Male Female Male Female

Employee from Minority Group

Employee from Non-Minority Group

Male Female Male Female

Corporate

M1 - M3: EXCO and Senior Management

M4 - M7: Functional Managers, Engineers, Mine Overseers

M8 & M9: Supervisors and Management Trainees Below M9: Bargaining Unit, Operators, Artisans, Clerks Fixed Term Employees

3 0 6 8 75 22 2 0 3 8 20 24 24 7 32 33 294 27 3 0 5 4 39 5 7 1 16 18 105 3 1 0 0 0 5 0 6 3 25 43 445 51 6 0 7 12 64 29 10 4 26 16 28 1 0 0 0 0 0 0 No incidence of discrimination has occurred during the reporting period. We follow equitable employer practices and do not discriminate in terms of our remuneration. We also comply with industry and market related benchmarks, and comfortably meet minimum wage and other statutory requirements.

During the reporting period, the breakdown of male and female employees by age is as follows: (Please refer to the reference table for details of the categorisation:

Total 114 57 417 56 150 6 573 118 85 0 102 100 98 96 94 92 90 88 86 84 2013-14 2012-13 2011-12 Women Employees 90 92 101 12.5% 12.6% 13%

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The total number of disabled people in our workforce over the last financial year is as follows:

Employee Details 2013-14 2012-13 2011-12

New employees (with disabilities) joining the workforce

0 0 1

Total no. of employees with disabilities 2 2 2 Employee Categorisation M1 M2 M3 M4 M5 M6 M7 M8 & M9 Below M9 Possible Roles VP GM HOD/EXCO

Functional Managers/Engineers/Mine Overseers

Supervisors/Management Trainees Bargaining Unit/Operational Staff/Artisans

Employee Turnover

The total number of new employees over the last three financial years by Gender is given in the following chart (excludes Corporate data):

Total number of new employees over the last three financial years by Age is given in the following chart: 120 100 80 60 40 20 0 82 43 111 26 60 22 2013-14 2012-13 2011-12 Male Female 76 43 71 50 6 16 34 35 13 80 70 60 50 40 30 20 10

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Employee Retention

Categorisation 2013-14 2012-13 2011-12

By Employee Category Corporate

Total Turnover of Employees by Category, Age and Gender

M1 - M3: EXCO and Senior Management

M4 - M7: Functional Managers, Engineers, Mine Overseers

M8 & M9: Superviors and Management Trainees Below M9: Bargaining Unit, Operators, Artisans, Clerks Fixed Term Employees

By Region

Black Mountain Mining By Age <30 30-50 >50 Total 6 2 8 10 34 45 0 0 1 0 8 23 6 2 9 10 42 68 4 2 9 8 49 28 1 1 1 1 7 12 5 3 8 9 56 40 1 1 12 11 66 102 0 1 1 1 5 18 1 2 13 12 71 120 25 49 25 99 21 9 2 32 46 58 27 131 19 49 28 96 14 7 1 22 33 56 29 118 48 95 49 192 15 7 4 26 63 102 53 218 Corporate 6 0 6 4 1 5 1 0 1

Black Mountain Mining (Excl Corporate)

99 32 131 96 22 116 192 26 218

During the year 2013-14, a total of 131 employees left the organisation, by resignation, termination or r

Extractive to Additive. The Story We Mine. Sustainability Report