Parent country: India
Target country: China
Vedanta Resources is a global diversified metals and mining company. It is the largest
mining and non-ferrous metals company in India and also has mining operations in Australia and
Zambia. Its main products are copper, zinc, aluminium, lead and iron ore. It is also developing
commercial power stations in India. Vedanta's consistent efforts over the last 30 years have
contributed to the successful establishment of its capabilities across four continents. Through
various subsidiaries, its foothold spans across India, Zambia, Namibia, South Africa, Liberia,
Ireland and Australia.
In this paper, I would like to present an analysis made for entering into a new country for iron
ore. Hence, it will deal with all political, legal, social, environmental, and financial issues related
to the target country.
This includes the company profile, which describes the current performance and will deal with
operational advantages of the company. Later on it deals with Global iron ore market and iron
ore presence in the target country.
Later part of the analysis will deal with all the factors responsible for company’s decision to
enter into target country’s iron ore market.
Vedanta Resources is a FTSE 100, London Stock Exchange listed, globally diversified
natural resources major with interests in Zinc, Lead, Silver, Copper, Iron Ore, Aluminium,
Power and Oil & Gas.
Its exploration portfolio from all the four continents that we operate in, follows a history of
consistent geological discovery. With a business model of growth, constant value creation and
improved operations, the company's vision is focused towards building the wealth of our
shareholders and sustainably engaging the community we operate in.
Accountability being a core characteristic of Vedanta's work philosophy, our long term business
approach adopts best practices towards fulfilling vital customer needs in a safe and responsible
The people are dedicated towards continuously reviewing strategic plans to keep in line with the
variables of opportunity, innovation and focus. Vedanta's success as diversified resources major
is due to a constant awareness of the impact we make on the lives of those working with us. Be
they our people and their families or our business partners, we give back to the community that
constantly nurtures us through economic and other developments in our host countries.
At the broadest level, they do this by directly employing over 30,000 people, and contracting
over 69,000 more, with the majority drawn from the surrounding communities of each of our
operations* This is in addition to our contribution to the countries we operate in through the
timely payments of our tax obligations. We contributed US$ 4.7 billion to our host governments
through direct and indirect taxes and royalties. In addition we have spent over US$ 10.9 billion
in operating costs, over US$ 500 million in wages and benefits and some US$ 38 million in
We work towards minimizing the effect of our operations on the environment and to maximise
the benefits for the local communities, while respecting their laws and customs. To ensure a
long-term future of the Group, we aim to grow our reserves and resources at a faster rate than we
deplete them through constant exploration and acquisitions.
They intend to deliver growth and long-term value while upholding sustainable
0development through our diversified portfolio of large, long-life and low-cost assets.
We are keenly focused on extending our resource base and growing our assets organically, by
identifying and investing in projects that help expand our capacity and increase production
Selective and Value Accretive M&A
In addition to organic growth, we also actively explore opportunities to acquire large, proven
assets where we can add significant value with our strategic capabilities.
We aim to optimise our cost and operational performance through a culture of continuous
improvement to achieve and maintain a competitive cost position in all our businesses.
Reserves and Resources
We are constantly working towards developing means to add to our Reserves and Resources at a
faster rate than we deplete them through exploration.
Consolidation and simplification of our Group structure remains a strategic objective with a view
to building long-term value through the optimisation of Group resources.
We have specific management systems in place to run our operations to minimise the risk of
harm to people and the environment throughout the lifecycle of our projects.
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 through active interactions and involvement.
Adding and Sharing Value
We aim to create and implement policies and processes that will contribute to the well-being and
development of our employees and deliver sustainable benefits to the local communities.