S.NANDA, DIRECTOR (OPERATIONS)HINDUSTAN COPPER LIMITED

COPPER INDUSTRY GROWTH OPPORTUNITIES &

CONCERNS

GLOBAL SUPPLY- DEMAND SCENARIO

MINI BOOM IN MINING INDUSTRY CONTINUES DESPITE HICCUPS.

MINE PRODUCTION BY 1.3 % TO 18.3 MILLION TONNES .

DEMAND IN CHINA < 7.5 % 1ST TIME SINCE 1998 STILL WILL CONSUME 4.9% MORE THAN LAST YEAR

SUPPLY SURPLUS FOR 2015 WORLD LOOKING AT INDIA FOR STRONG

PICK UP IN DEMAND.

INDIA STORY

INCREASED DEMAND FOR COPPER TO COME FROM GROWTH IN

------ POWER SECTOR ------ RAILWAYS ------ GROWTH OF GDP & URBANISATION

POWER SECTOR

INTERNATIONAL ENERGY AGENCY POWER PRODUCTION IN INDIA TO RISE BY 15-20 % ANNUALLY .

12TH FIVE YEAR PLAN (2012-17) TARGET 88000MW CAPACITY ADDITION

COPPER CONSUMPTION TO DOUBLE.

RENEWABLE ENERGY SECTOR

.

SL NO. AREA CONSUMPTION OF COPPER

1. THERMAL POWER 1.3 MT/ MW

2. WIND TURBINE 2 MT/ MW

3. NUCLEAR POWER 2.5 MT/MW

4. SOLAR POWER 6.8 MT/ MW

RAILWAYSAPPLICATION – TROLLEY WIRE /CONTACT WIRE.PURPOSE : CONNECTIVITY BETWEEN OVERHEAD LINES & LOCOMOTIVES

AGGRESSIVE ELECTRIFICATION UNDER WAY -- 23451 KM ACHIEVED AGAINST 64015 KM TOTAL URBAN DEVELOPMENT MINISTRY --- METRO RAIL IN 12 TIER-II CITIES. EXPORT POTENTIAL IN RAILWAY ELECTRIFICATION PROJECT

OVERSEAS ( L&T, TATA PROJECTS ). HIGH SPPED TRAIN --- SPEED DEPENDANT ON STRENGTH AND CONDUCTIVITY OF TROLLEY WIRE. --- HENCE NEED FOR Cu- Mg AND Cu- Ag ALLOYS. --- NO PRODUCER IN INDIA YET

FACTORS DRIVING CONSUMPTION OF COPPER

GROWTH POTENTIAL AND ISSUES VIS-A-VIS FABRICATED PRODUCTS

SHEETS, FOILS, TUBES, PROFILES ETC.FRAGMENTED MARKETSFEW PLAYERSHIGH WORKING CAPITALLIMITED INFUSION OF MODERN TECHNOLOGY2013-14– IMPORTS OF 900MT OF PROFILE,

12000MT TUBES & PIPES, 6500 MT OF FOILS AND 5000 MT OF SHEETS.

LIMITED GROWTH IN APPLICATION OF COPPER

COPPER INDUSTRY ---- THREE DISTINCT SECTORS – MINING, SMELTING & FABRICATION.

FABRICATION SECTOR LACKS MUSCLE TO INVEST IN R&D.

IN CONTRAST MAJOR PRIMARY ALIMINIUM PRODUCERS ALCOA, HINDALCO, NORSK HYDRO – LEADING SUPPLIERS OF VALUE ADDED PRODUCTS.

EXTENSIVE EFFORT AND INVESTMENT--- ALUMINIUM REPLACING STEEL IN AUTOMOTIVES AND BEVERAGE CAN SECTOR.

NEW APPLICATIONS FROM RESEARCH EFFORTS

ENERGY EFFICIENT MOTORSANTIMICROBIAL SURFACESULTRA CONDUCTIVE COPPERMICRO ALLOYED COPPER OVERHEAD LINE

CONDUCTORS

ENERGY EFFICIENT MOTORS

MOTORS AND MOTOR DRIVEN SYSTEMS– 46 % OF GLOBAL ELECTRICITY CONSUMPTION.

REPLACEMENT OF ALUMINIUM BY COPPER DIE CAST ROTORS % EFFICIENCY 4-5 %.

ADOPTION OF ENERGY EFFICIENCY STANDARDS FOR INDUCTION MOTORS BY ALL COUNTRIES BY 2030 ESTIMATED TO SAVE 322 MILLION MW ANNUALLY & 206 MILLION T OF CO2 EMISSION

ANTI MICROBIAL SURFACES

HAI ( HOSPITAL ACQUIRED INFECTION) KILL 100000 PEOPLE ANNUALLY.

45 MILLION $ SPENT (E-COLI, INFLUENZA, STAPHYLOCOCCUS)

COPPER BASED TOUCH SURFACES KILL 99.9% BACTERIA IN LESS THAN 2 HRS.

COPPER RELEASES IONS, PENETRATING CELL WALLS OF MICROBES STOPPING THEIR FUNCTIONS AND REPRODUCTION.

ULTRA CONDUCTIVE COPPER

CARBON NANO TUBES IN COPPER--- INCREASES AMBIENT TEMP CONDUCTIVITY BY 30 %.

MICRO ALLOYED COPPER CONDUCTORS

ALTERNATIVE TO ACSR FOR HIGH VOLTAGE OVERHEAD LINES.

NO STEEL REINFORCEMENT NECESSARY SMALLER CROSS SECTIONPLUS HYDROPHOBIC COATING

LOW WIND AND ICE LOAD. PARTICULARLY SUITABLE IN COLD AND WINDY CLIMATES. REDUCED SKIN EFFECT LOWER ENERGY LOSSES. CAN TOLERATE HIGHER TEMPERATURE FOR SHORT

DURATION. ATTRACTIVE LIFE CYCLE COST.

SUPPLY SIDENAME OF COMPANY CAPACITY VALUE ADDITION

HINDALCO 500000 MT CATHODE -- VOLUMES-- BY-PRODUCTS- SILVER, GOLD, SELENIUM, TELLURIUM, FERTILIZER

STERLITE 400000 MT CATHODE --VOLUMES-- BY-PRODUCTS- SILVER, GOLD, SELENIUM, TELLURIUM ,FERTILIZER

HINDUSTAN COPPER LIMITED

99000 MT CATHODE MINES

STRATEGY OF HCL MAXIMUM VALUE ADDITION ORE TO CONCENTRATE AMBITIOUS EXPANSION PROGRAM 3.4 MILLION T TO 12.5 MILLION T ORE

PRODUCTION MINIMUM ECONOMIC SIZE OF SMELTER 3-4 LAKH MT CAPACITY. INVESTMENT FOR EVERY 1 LAKH MT CAPACITY SMELTER IS APPROX 2000

CRORES. TOTAL COPPER FROM EXPANDED CAPACITY APPROX- 1 LAKH MT EXPLORING ALTERNATIVE HYDROMETALLURGICAL ROUTE --- ATTRACTIVE CAPEX & OPEX --- 1/3 MANPOWER --- 1/3 LAND --- NO FOSSIL FUEL --- RECOVERY OF PRECIOUS METALS

STRATEGY contd…

EXPLORING POSSIBILITY OF EXTRACTION OF -------NICKEL FROM SINGBHUM COPPER BELT. ------ 150 MT OF NICKEL ( PRICE @15000$/MT) INDIA IMPORTS 40000 MT OF Ni /YEAR ------ MOLYBDENUM FROM MALANJKHAND ORE. ------ 800 MT OF MOLY ( PRICE @ 17500 $/MT)

WASTE TO WEALTH

VOLUME OF TAILINGS

•REQUIREMENT OF LARGE VOLUME OF WATER•REQUIREMENT OF LARGE TRACT OF LAND•ENVIRONMENTAL HAZARD

POSSIBLE SOLUTION

•TREATMENT OF TAILINGS TO RECOVER METALS AND MINERALS OF VALUE•HIGH CONCENTRATION SLURRY TRANSPORT

BENEFICIATION OF LEAN COPPER ORES GENERATE 75-80 % TAILS

TAILINGS TREATMENT

GLENCORE’S ERNEST HENRY COPPER GOLD MINING QUEENSLAND, AUSTRALIA

$ 600 MILLION LIFE –OF- MINE EXPANSION PROJECT

INCLUDES $ 60 MILLION MAGNETITE EXTRACTION

PLANT

IRON ORE PRODUCER

90000 T COPPER/YR,110000 OUNCE GOLD/YR,1.2 MILLION T MAGETITE

PRODUCTION / YR

HCL’S EFFORT

------ EXPLORING RECOVERY OF COPPER CONCENTRATE & MAGNETITE FROM COPPER ORE TAILING ( 100 MILLION TONNE STOCK ).------ TECHNOLOGY IDENTIFIED------ PILOT PLANT EXPECTED BY YEAR END

RECYCLING

SAVES 85-90 % ENERGY COST41% COPPER PRODUCTION IN EUROPE FROM

RECYCLING35 % COPPER PRODUCTION IN CHINA FROM

RECYCLINGEXACT FIG. IN INDIA IS NOT KNOWN.COLLECTION, SORTING, DISMANTLING &

PROCESSING NOT ORGANISED IN THE COUNTRY.

E-WASTE /WEE ( WASTE ELECTRICAL AND ELECTRONIC EQUIPMENTS)

CONTAINS PLASTIC, VALUABLE METALS & HAZARDOUS MATERIALS.

TO ILLUSTRATE, EVERY MILLION CELLPHONES CONTAINS 16 TONNE OF COPPER, 350 KG OF SILVER, 34 KG OF GOLD & 15 KG OF PALLADIUM.

95 CRORES MOBILE ARE SOLD IN 2014.

WHY HCL IS INTERESTED IN THIS

HAVE ACQUIRED JHAGARIA COPPER – A 50000 MT REFINED COPPER PLANT IN GUJARAT BASED ON RECYCLING

LOOKING FOR ORGANISED SOURCES OF ELECTRICAL WASTE TO START WITH.

IN 12-18 MONTHS WOULD BE IN A POSITION PROCESS E-WASTE FOR RECOVERY OF METALS.

STATUS OF E-WASTE IN INDIA

E-WASTE ACT ( MANAGEMENT AND HANDLING) 2011 DEFINES E-WASTE AS ANY EQUIPMENT THAT USES ELECTRICITY OR ELECTROMOTIVE FORCE TO OPERATE.

INDIAN INDUSTRIES ARE MANDATED TO DISPOSE RESPONSIBLY.

ACTUAL PRACTICE- MOSTLY NOT AWARE – APPLY ACT TO IT EQUIPMENTS ONLY AND ELECTRICAL WASTE ( MOTORS AND CABLES) DISPOSED THROUGH TRADITIONAL MODE.

WHERE DID WE GO WRONG

NO TANGIBLE EPR ( EXTENDED PRODUCER RESPONSIBILITY) IN PLACE.

PRODUCER TO BE RESPONSIBLE FOR ENTIRE LIFE CYCLE.

INADEQUATE INFORMATION ON WEBSITE OF PRODUCERS & MANUFACTURERS

NOT ENOUGH COLLECTION CENTRES FOR HUGE GEOGRAPHY LIKE INDIA.

RECOMMENDATION

STATE POLLUTION CONTROL BOARD HAD TO BE STRICT.

OTHERWISE HIGH END RECYCLERS CANNOT OPERATE SINCE INFORMAL SECTOR WILL OFFER HIGHER PRICE.

REQUIREMENT OF POLICIES TO ARREST LEAKAGES IN SYSTEM

COMPANIES TO MAINTAIN PROPER INVENTORY OF ALL ELECTRONIC , ELECTRICAL ITEMS AND E-WASTE THAT THEY DISPOSE.

THANK YOU