Approach to Reporting

Today, sustainability is a value and principle which has been incorporated by many corporates, and companies who wish to see a sustained and resources efficient future for their ultimate business goals as well as for those who are important stakeholders in their Company’s operations. Sustainability as practised by us in all our spheres of operations and activities is clearly represented by our approach:

Protect, Preserve and Progress

The Company strongly believes in sustainable mining practices and is dedicated to creating value for its stakeholders. We give paramount importance to the health and safety of the mining workforce and local community members, as their support is our driving force in attaining all our business objectives. The Company has adopted this precautionary approach and adheres to global standards of health, safety and environmental management thereby contributing to the development of sustainable communities and engaging with stakeholders. This approach gives us a competitive advantage over others while it also helps in enhancing our reputation.

HSEC is a dedicated department in our Company that promotes sustainability with the efficient use of resources such as energy and water, minimises the impacts on biodiversity and landscape functions, and reduces waste and emissions including greenhouse gases through our several initiatives. The department also interacts with community for identifying and understanding the needs, plan & implements the community development initiatives and evaluates the impacts. We are reporting on our performance YOY basis vis-avis previous year; as such it is felt that, the targets are not required to be reported.

The data and figures in the report are actual numbers based on the methodology of standard management systems.

Approach to Management

Economic Responsibility

Regular audits are carried out across all locations by trained auditors. The findings are presented and discussed unit wise at the respective locations before unit heads/unit appraisal committees. The most critical issues are discussed in depth and a decision is taken to resolve the issue. Management Reviews are conducted to track effectiveness, the progress of the audit findings and closure within the time frame agreed on by the concerned parties to resolve the issues and continually improve systems.

Environmental Responsibility

In our constant efforts to conserve natural resources, our Company has set targets in the area of water and energy conservation which are aligned with our business objectives thereby making all the processes more energy and resource efficient.

Labour Practices and Human Rights

Our vision is to build a flexible, agile and flat organisation with worldclass capabilities and a high-performance culture. Respect for the individual, valuing diversity, fostering entrepreneurship, ensuring an enabling environment and developing a “can do” attitude is a way of life at Sesa Goa. The Company is committed to achieving best practice in health and safety at all our units. All units of Sesa Group e.g. Mining Division (excluding Orissa Mining), Sesa Resources Ltd (SRL), Pig Iron Division and Met Coke Division have been certified for Integrated Management System (ISO 9001: 2008, ISO 14001:2004 & OHSAS 18001:2007) by Bureau Veritas Certification (BVC) with the exception of SRL. QMS and EMS are implemented at SRL/SMCL and OHSAS implementation is in progress. Periodic surveillance audits are conducted as per schedule as per existing systems. In February 2011, the Company commenced implementation of SA 8000, initiating training programs on human rights and principles of SA 8000.

Product Responsibility

Sesa Goa’s product leadership is based on its product quality, manufacturing technology, competitive cost and timely delivery. The Company has the required core competencies and capabilities to deliver the product as per contractually agreed specifications. Added to this, the effective supply chain management continuously endeavours to provide the product and meet customer expectations at all times.

Social Responsibility

We believe we have a responsibility to engage positively with the local communities in which we operate and to encourage their social and economic development. These principles are embedded across the organisation and are a key element of our employee training, development and performance at all levels. The Company carries out its community development initiatives through three channels i.e. Sesa Community Development Foundation, through contributions to Mineral Foundation of Goa, and needbased community interventions.

Boundary and Scope of Reporting

This report is for the reporting period of 2010-11 and covers:

1. Sesa Goa Mining Division – Goa, Karnataka and Orissa (part of the year)

2. Pig Iron Divison, Amona, Goa

3. Metallurgical Coke Division, Navelim, Goa.

4. Sesa Resources Ltd, (SRL – erstwhile V S Dempo Limited)

We have covered economic, environmental, social performance indicators as per the GRI G3.1 Guidelines with information, facts and figures true to the best of our knowledge and daily operations as periodically updated, recorded and reported by our various departments within the organisation. We have also reported on indicators of sector specific mining and metals supplement. This report has derived its essence of sustainability from the sustainable practices followed in every department of our Company. Sesa Goa publishes its sustainability report annually and this is the sixth report of the Company in the series. The Report has been verified by a third party agency, DNV AS, who has provided the A+ External Assurance Statement. For the reporting period no restatement of any information provided in earlier reports has occurred. There has been no significant change from previous reporting periods in the scope, boundary, or measurement methodsapplied in the report. In order to arrive at a healthy reporting framework, we followed the process given below: