Vedanta Resources plc Annual Report & Accounts 2013

Strategic Framework

Download as PDF (1mb)
Vision

To be a world class, diversified resources company providing superior returns to our shareholders, with high quality assets, low-cost operations and sustainable development.


Strategy

To deliver growth, long-term value and sustainable development through our diversified portfolio of large, long-life, low-cost assets.

  • Growth
  • Long-term Value
  • Sustainability
  • Organic growth

    We focus primarily on extending our resource base and growing our assets organically, investing in projects that expand our capacity and increase production volumes.

  • Optimise return

    We aim to optimise our cost and operational performance through a culture of continuous improvement to achieve and maintain a low cost position in all our businesses.

  • Responsible stewardship

    We are committed to providing a safe, secure and healthy workplace for all employees by optimising our specific consumption of inputs and minimising our environmental footprint.

  • Selective and value accretive M&A

    In addition to organic growth, we look to acquire large proven assets where we can add significant value with our strategic capabilities.

  • Reserves and resources

    We aim to continue to add to our Reserves and Resources (‘R&R’) at a faster rate than we deplete them through a continued focus on exploration.

  • Building strong relationships

    We aim to forge strong partnerships by engaging with our key stakeholders including shareholders and lenders, suppliers and contractors, customers, employees, governments, communities and civil society.

  •  
  • Group structure

    Consolidation and simplification of our Group structure remains a strategic objective as we seek to drive synergies from integrating the Group and build long-term value.

  • Adding and sharing value

    We aim to create and sustain policies and processes that will contribute to the well-being and development of our employees and deliver sustainable benefits to the local communities where we operate.

  • What we said we would do
  • What we said we would do
  • What we said we would do
    • Ramp-up of oil production at Rajasthan field to 240kbopd by CY 2013 (basin potential of 300kbopd)
    • Recover iron ore volumes and ramp up at Konkola mine and Power operations
    • Focus on future drivers of growth: Liberia, Gamsberg, Zinc India
    • Continue to add R&R in oil & gas, iron ore and zinc
    • Reduce gearing through strong free cash flow
    • Continued focus on securing coal and bauxite
    • Complete simplification of the Group structure
    • Continue to improve our safety performance
    • Continue to improve our stakeholder engagement
    • Improve process of identifying issues that are material to our stakeholders and to the business
    • Expand our structured educational, healthcare and community programmes
  • How we performed
  • How we performed
  • How we performed
    • 32% ramp up to 170kbopd of oil & gas production with ramp-up continuing
    • Record production at Zinc India
    • Integrated copper production up 16% driven by ramp up at Konkola and total power sales up 36%. Iron ore volumes depressed by impact of mining restrictions
    • Feasibility study underway for 186mt in Gamsberg deposit
    • Mine extensions delivered in our Zinc, Copper and Iron Ore operations
    • JORC confirmation of initial exploration R&R of 966mt in Liberia
    • Net gearing reduced by 35%–31%
    • Group simplification approval received from High Court of Bombay in Goa and Madras High Court order awaited
    • LTIFR halved from 1.91 to 0.72 over the last five years
    • Over 4,700 stakeholder engagement meetings took place and over 250 partnerships are now in place
    • Undertook a focussed materiality assessment with priority findings presented to management
    • 27 of the 29 recommendations made by the Scott Wilson review have now been completed and closed off. (Final Sign-Off Audit and a recommendation relating to the on-hold Lanjigarh expansion project remain)
    • US$42 million invested in community programmes during the year, reaching 3.7 million people
  • Future priorities
  • Future priorities
  • Future priorities
    • Achieve growth to 1.2mtpa mined zinc lead metal
    • Achieve exit production rate of 200,000–215,000 bopd of oil & gas in FY2014
    • Feasibility study of Gamsberg
    • Ramp up mine development at Konkola to realise its full potential
    • Phased development of Liberia mining project
    • Unlock value of proven Rajasthan oil & gas block: exploration to achieve basin potential of 300kbopd
    • Deleverage balance sheet with increase in free cash flow after project capex
    • Continued focus on securing coal and bauxite
    • Complete simplification of Group structure
    • Target to further reduce LTIFR to 0.50 by 2015 (0.70 by 2014)
    • All sites to upgrade their existing Stakeholder Engagement Plans as per sustainability framework
    • Closure of all 29 recommendations
    • Structured community development programmes to continue
Report and Accounts Downloads:Download Full PDF (5.6mb)
Website by Emperor Design