Organic Growth and Operational Performance
FY 2010 was an outstanding year. Production grew across all commodities, costs were kept under control, and we made excellent progress with our organic growth programme.

During the year we spent US$3.5 billion on our organic expansion programme. In Q4 Hindustan Zinc commissioned the 1 mtpa zinc concentrator and 210 ktpa zinc smelter, becoming the largest integrated producer of zinc in the world with capacity of 1.064 mtpa. KCM achieved a significant milestone by commissioning the mid-shaft loading station ('MSL') in March 2010. The MSL commissioning is a significant milestone towards KDMP expansion and will result in an increase in the hoisting capacity of the mine. At Jharsuguda, production ramp up and commissioning of the balance pots of the 500 ktpa aluminium smelter is progressing well. We are also making good progress at our other aluminium projects.

We also announced a number of additional projects to increase capacity across our businesses. A doubling of our copper custom smelting capacity at Tuticorin to 800 ktpa with associated 160 MW power plant will further reduce our costs and put us amongst the lowest quartile cost custom smelters in the world. We revived the 1,980 MW thermal power plant project at Talwandi Sabo in the state of Punjab to take advantage of the exciting opportunities offered by the power sector in India. Earlier in the year we also announced iron ore mine production expansion to 50 mtpa, placing us on course to become one of the top five iron ore producers in the world. We are on track to increase production progressively over next two to three years through a combination of increased mining and logistics capacity enhancement initiatives. Additionally we initiated our 375 ktpa pig iron expansion project.

The tragic collapse of a power plant chimney that was under construction at BALCO through our subcontractor SEPCO was an unfortunate incident and investigations have revealed this was caused by severe thunderstorms and lightning. We have taken immediate steps to compensate and support the affected families, and strengthened monitoring and systems at our project sites to ensure this does not happen in the future.

Acquisitions
During the year we expanded and consolidated our Iron Ore business by acquiring VS Dempo ('VSD'), one of the largest exporters of iron ore in Goa. VSD's Goa mining assets include processing plants, barges, jetties, transhippers and loading capacities at Mormugoa port. Our results have benefited in terms of record iron ore production and I am pleased to report that we are also benefiting from synergies at Sesa Goa.