Presentation made during FIMI conference, Goa in 2007

1. IMPERATIVES FOR IRON ORE EXPORTS K K KUMAR GENERAL MANAGER (M&L) MSPL LIMITED

3. Lack of enabling environment for large scale Commercial mining Low capital investment in exploration Restrictive resource allotment reflected in smaller leases Incomplete discovery of resources INDIAN MINING INDUSTRY–PRESENT SCENARIO Indian Mining industry in a negative loop Smaller contribution by mining sector is a drag on national economy despite large resource base Drastic policy changes a must to break this negative loop Reflects low resources base

4. Qty: Million tonnes Figures in parenthesis indicate decrease (-)/increase (+) in resources Notes : (1) These resources do not include around 1000 million tones of haematite iron ore recently discovered by DMG, Chattisgarh in Kabirdham district. (2) Above resources are with a cut-off grade +55% Fe and roughly upto 50 metre depth estimated with sparce and far-between drilling. Source: Indian Bureau of Mines, Nagpur RESOURCES 25249 (+3141) 532 22108 (-679) 656 22787 (+5223) 470 17564 Total 10619 (-63) 10682 (+92) 10590 (+4495) 6095 Magnetite 14630 (+3204) 11426 (-771) 12197 (+728) 11469 Heamatite As on 1.4.2005 Produced 2000-2005 As on 1.4.2000 Produced 1990-2000 As on 1.4.1990 Produced 1980-1990 As on 1.4.1980

10. STATE-WISE PRODUCTION : RATIO OF LUMPS, FINES AND CONCENTRATES Quantity: `000 tonnes SOURCE Indian Bureau of Mines, Nagpur Figures in paranthesis indicate the %age contribution of lumps, fines and concentrates respectively in the total production Note : p - provisional figures 154436 (100) 3893 (3) 87900 (57) 62643 (41) 145942 (100) 5253 (4) 82537 (56) 58152 (40) 122838 (100) 6199 (5) 67679 (55) 48960 (40) ALL INDIA TOTAL 4958 (100) ---- 3728 (75) 1230 (25) 3721 (100) ---- 2864 (77) 857 (23) 1626 (100) ---- 1225 ((75) 401 (25) Others 49880 (100) ---- 22103 (44) 27777 (56) 41750 (100) ---- 18866 (45) 22884 (55) 31288 (100) ---- 12715 (41) 18573 (59) Orissa 33669 (100) 2922 (9) 19415 (58) 11332 (33) 37962 (100) 4350 (12) 21324 (56) 12288 (32) 31635 (100) 5090 (16) 17643 (56) 8902 (28) Karnataka 17435 (100) ---- 10760 (62) 6675 (38) 16719 (100) ---- 9181 (55) 7538 (45) 14682 (100) ---- 8196 (56) 6486 (44) Jharkhand 23744 (100) 971 (4) 18445 (78) 4328 (18) 22672 (100) 903 (4) 17526 (77) 4243 (19) 20246 (100) 1109 (6) 15246 (75) 3891 (19) Goa 24750 (100) ---- 13449 (54) 11301 (46) 23118 (100) ---- 12776 (55) 10342 (45) 23361 (100) ---- 12654 (54) 10707 (46) Chhattisgarh Total Conc. Fines Lumps Total Conc. Fines Lumps Total Conc. Fines Lumps 2005-06(p) 2004-05 2003-04

13. (000 tonnes) Source : Joint Plant Committee, Kolkata – for steel production Indian Bureau of Mines, Nagpur – for iron ore production Exporters and MMTC – for iron ore exports e-estimated IRON ORE CONSUMPTION BY STEEL MILLS 28894 26261 26348 24988 23483 - Captive mines Consumption (e) 23629 21889 18626 15948 14230 - Non-captive mines 154436 145942 122838 99072 86226 Production 52523 48150 44974 40936 37713 Total 10116 48020 30443 11461 18982 2002-03 12636 19647 15294 6873 Surplus 89277 78145 62570 41640 Exports Iron Ore : 41660 38486 34248 27964 Total 19966 18471 14236 10202 B-Secondary Producers 21694 20015 20012 17762 A-Main Producers Steel : 2005-06 2004-05 2003-04 2001-02

16. STOCKPILE Qty.: Million tonnes Note : In addition iron ore is lying at Railway Station, in transit and ports. Source : Indian Bureau of Mines, Nagpur Conclusion: Production being led by demand from China, there is enough exportable surplus over and above domestic demand .

18. Enabling policy & environment for large scale Commercial mining Development in Infrastructure Full harness of Resources Efficient & Productive operations Competitive environment leading to Higher & Cost effective output Competitive exports and dominant position in International markets Economy Grows Steel sector Grows PATH TO PROGRESS Domestic Demand fully met

25. THANK YOU