As the majority of our assets have had recent investment or are new, over the period our businesses have demonstrated lower annual sustaining capital costs. We believe there is further potential for operating cost reduction with the ramp up of production, a continued focus on asset optimisation and improved raw material sourcing.
In line with our strategy to maintain long mine life for our assets and our target to add more than we mine, we continue to focus on our exploration programmes – on both brown field and green field sites. During FY 2012–13, our exploration activities resulted in the successful addition of reserves and resources (‘R&R’) at our zinc and iron ore businesses.
Last year we initiated a major project to simplify our Group structure and unlock value. This is focused around the merger of Sesa Goa Ltd and Sterlite Industries (India) Ltd to form Sesa Sterlite Ltd, aiming to create a more efficient capital structure across the Group with better alignment of debt and cash flows, as well as delivering significant synergies. The necessary approval from the High Court of Bombay at Goa has been received and we now await the approval of the High Court of Madras.