Product Responsibility

Over the years, we have been reporting on major raw materials and associated materials which are bulk in consumption for the business. Sesa Goa’s principal products - iron ore, pig iron and metallurgical coke - are either basic raw materials or intermediates for the manufacture of other products and are 100 percent recyclable or usable, although our Company does not have any process which can reuse industrial waste as raw material. These products do not exist in their normal state, because they become part of other products. As such, it is difficult to keep track of the life cycle of these products. Hence, the Company does not monitor the direct environmental impact of its products. The nature of the Company’s activities does not require the use of packaging materials for any of its products.

The Test Certificates given to our customers comprise information on physical dimensions and chemical compositions of the products being sold to them. All the products of the Company are either raw materials or intermediates. As such there is no health impact of the products. However, lifecycle assessment (LCA) of the products will be initiated during 2011- 12. Based on the outcome of the assessment, the Company will embark on a materials stewardship programmeme to improve the processes and products. The Company adheres to all the laws applicable for all its exported goods while catering to our overseas customer base. Our products do not require advertising on the scale required by other consumer goods as we do not manufacture products that would require such levels of marketing or advertising exposure.

During the reporting year, the Company was not subjected to any legal actions for anti-competitive behaviour, anti-trust, and monopoly practices. There have been no instances of non-compliance with the laws related to the use of the Company’s products and services and there were no monetary or any other penalties levied upon us during the reporting period.

The major materials used in the process of mining are:

• Lubricants for HEMM operations

• Steel for structural fabrication

• Paint

• Explosives for breaking hard strata

Steel and paint are used in the ship-building unit and the support services of the mining division. At Sesa Industries, the major raw materials used are iron ore, met coke and fluxes. Iron ore is supplied partly from the mining division; the balance is purchased from the open market. Coke is supplied by the met coke division of the Company. Fluxes are purchased from outside sources. The Company makes continuous efforts to bring down specific coke consumption.

During the reporting period, raw material, fluxes and coke consumption decreased due to the installation and effective use of hot blast stoves, due to the reduction in the quantity of pig iron production. The major raw material in coke-making is low ash coal, which is imported.

Note: Data available only for reporting period, since SMCL, SRL (erstwhile VS Dempo Limited) got integrated in 2010-2011.