VEDANTA RESOURCES plc

2016 ANNUAL GENERAL MEETING

FRIDAY, 5 AUGUST 2016 AT 3:00 PM

IRONMONGERS' HALL, SHAFTESBURY PLACE, LONDON EC2Y 8AA

CHAIRMAN'S INTRODUCTION

Good afternoon ladies and gentlemen. Welcome to the Annual General Meeting of Vedanta Resources.

We are witnessing a gradual turnaround in the commodities sector and I believe the worst is behind us. Vedanta has a high-quality portfolio of assets. We have demonstrated our efficiency as a low cost producer in a challenging market with lower commodity prices. The company has generated strong free cash flow, reduced net and gross debt and delivered strong EBITDA margins.

This is an exciting time for the Indian economy, which will drive demand for commodities globally. The mining bill approved by the Indian Parliament last year, and the auction of mines, will open up the natural resources sector. Introducing the Goods and Services Tax Bill, with a uniform tax code, will attract more investment. Prime Minister Modi's Government is spearheading a revolution in the business environment, and India is now the fastest growing economy in the world. India saw FDI inflows of almost fifty-six billion US dollars last year. Vedanta, as a global resources company operating in India, offers investors a way to share in India's success story.

At the same time, our global assets continue to benefit the countries in which they are based. Prime Minister Modi recently visited South Africa and I was part of his business delegation. As you all know, Vedanta has a long-standing presence in Africa. In South Africa, our Gamsberg zinc project will contribute significantly to the country. During the Prime Minister's visit we also announced local partnerships through which we will use South African expertise and technology to benefit our mining operations in India.

Your company is also one of Zambia's leading copper producers. Zambia's economic performance is expected to remain strong, driven by large investments in infrastructure and public administration.

I would also like to share with you my experiences on my recent visit to our Aluminium, Zinc India and Africa operations. My interactions with engineers, geologists and young professionals reassure me that Vedanta is leveraging technology and innovation for sustainable operations. The company will continue to invest in best in class technology for all its assets. For this reason I announced this year 30 million dollars of funding for our in-house R&D programme.

Since founding the company, I have always said that our focus is on building a diversified natural resources company that creates wealth to ultimately support economic progress for communities at large.

We continue to prioritise community development, safety and the environment, to improve the lives of local communities in India and Africa. I am proud to say that this year we invested 37 million dollars in sustainable development and CSR projects which reached 2.25 million people around the world.

I strongly believe that the role of women's empowerment and child development is relevant for a progressive society. In India, the government has state-run child welfare centres across the country. Vedanta has launched a social initiative to completely transform these centres into pre-fabricated units with the latest technology and modern amenities. 4,000 of these centres will be built over three years across the country. They are named 'Nandghar'. Each of these vibrant centres will attract children and women, impart education and provide skill development opportunities and healthcare. We are keen to showcase worldwide this first of its kind social impact programme as one of India's leading community development programmes.

In June, I participated in our second Sustainable Development Day for market analysts. We intend to hold this event on a regular basis. We are committed to 'Zero Harm', 'Zero Discharge' and 'Zero Waste.' We are determined to bring about significant improvements in safety and foster a culture of zero harm across our operations.

One of our strategic objectives is to simplify the group structure for optimum returns for shareholders, and in July we announced new terms for the Cairn India - Vedanta Limited merger. This transaction is a win-win for all shareholders, and we aim to complete it this financial year.

As announced earlier Mr Euan Macdonald Non-Executive Director and Chairman of the Remuneration Committee and Sustainability Committee will be retiring from the Board. This will be his last AGM. I would like to thank Euan for his huge contribution to sustainability at Vedanta, including improved safety standards and best practices in site closures. Katya Zotova, member of our Sustainability Committee, will be leading the committee's priorities from the coming year.

I welcome Ravi Rajagopal to his new role as a Non-Executive Director of Vedanta Resources, and also to the Audit Committee. He comes with a wealth of experience across finance and operational roles in a FTSE 100 company.

I am grateful to have Geoffrey Green, Aman Mehta, Deepak Parekh and Katya Zotova on our Board, giving us immense support and guidance. In line with regulatory guidance, Mr. Aman Mehta will retire on or before next year's AGM. He will help in the transition of the group's auditor from Deloitte to E&Y. E&Y's appointment is subject to shareholder approval.

The Nomination committee during the year will continue to consider board and committee composition along with succession planning, this includes the appointment of a new non-executive director. The Board sees value in the next appointment having UK plc non-executive experience and this will be a key factor in selection.

On behalf of the entire Board, I would like to thank all our investors, communities and the governments of the countries where we operate, who have always supported us. I would also like to acknowledge the immense contribution made by all of our employees.

Finally, on behalf of the Board of Directors and the employees of your company, I would like to thank you, our shareholders, for your enduring support.

I hope we shall work together and grow together.

Vedanta Resources plc published this content on 05 August 2016 and is solely responsible for the information contained herein.
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