In a challenging year for the global economy and our industry, we are pleased to report strong results across our businesses. We have remained focused on our core strengths of low cost production, operational efficiency and successfully developing high value accretive projects for our shareholders. We have increased volumes across all businesses whilst keeping costs under control and are well placed to benefit from the sustained recovery in our industry.

We delivered a strong EBITDA performance of US$2,296 million in 2010, a 42% increase as compared to US$1,612 million achieved in 2009. During the year all our businesses delivered volume growth, with record iron ore, aluminium and mined metal production of zinc and lead. Our ongoing cost reduction measures have helped to contain the impact of higher input prices while higher volumes have also benefited unit operating costs. Stronger commodity prices for copper and zinc have also contributed to the increase in EBITDA.

An analysis of the movement in EBITDA between FY 2010 and FY 2009 is set out below.

• Higher sales volumes (including power sales) resulted in higher EBITDA of US$421 million.
• Lower operating costs improved EBITDA by US$99 million, whilst higher rates of royalties reduced EBITDA by US$82 million.
• Despite lower average prices of iron ore and aluminium, higher average LME prices of copper, zinc and lead increased EBITDA by US$221 million.
• Favourable foreign exchange movements contributed US$56 million.
• EBITDA reduced by US$83 million in allied businesses ie phosphoric acid, silver, metcoke and pig iron.

We have made excellent progress during the year in executing our industry leading organic growth programme. We delivered both significant production growth this year and put in place plans to substantially increase capacity in all our businesses for 2011. During the year we spent a total of US$3.5 billion on our expansion projects, which are all progressing well. Highlights this year include:

• At Hindustan Zinc Limited ('HZL'), commissioning of the zinc concentrator at Rampura Agucha and the 210 ktpa zinc smelter at Dariba, three months ahead of schedule.
• At Konkola Copper Mines ('KCM'), commissioning of the KDMP mid-shaft loading station, which will increase hoisting capacity and speed up mine development work.
• At Vedanta Aluminium Limited ('VAL'), excellent progress at the 500 ktpa Jharsuguda aluminium smelter, 250 ktpa operating at near capacity. All nine units of the associated 1,215 MW captive power plant have been commissioned.