US$453.0 million
Operating profit

21.4 mt
Saleable ore

280 kt
Pig iron production

20.5 mt
Sales

Financial Performance
EBITDA in FY 2010 was US$673.0 million, 20.8% higher compared to the prior year. EBITDA was higher on account of higher volumes contributing approximately US$170 million and lower operating costs which were partially off-set by lower average prices, and increased royalties. During the year the Government of India increased the royalty from approximately Rs 30 per tonne to 10% of ex-mine Net Sales Realisation ('NSR') while the export duty was also raised from 0% to 5% on fines and from 5% to 10% on lumps.

The operating profit was US$453.0 million in FY 2010 as compared with US$348.0 million in FY 2009, in line with the increase in EBITDA.

Projects
Iron Ore Mining Expansion
Consistent with our mission to reach 50 mt over the next two to three years, we have pursued a number of initiatives to expand mining capacity and logistics at Goa and Karnataka to increase their capacity to 30 mt and 10 mt, respectively. These comprise of additional investments in mining equipment, processing plants, barges, and infrastructure such as loading facilities at railway sidings at an estimated capex cost of US$500 million to be spent over next two to three years.

Pig Iron Expansion
Work on the expansion of the pig iron plant capacity to 625 ktpa and associated expansion of the metallurgical coke plant capacity to 560 ktpa is progressing well with engineering activities completed, ground activities started. The project is on schedule for commissioning by Q1 FY 2012.

Exploration
We had significant success in exploration at Sesa Goa and Dempo, and added 64.3 mt reserves and resources, prior to production of 21.4 mt in FY 2010. Total reserves and resources at 31 March 2010 were 352.7 mt.