1

COMPANY PROFILE
Drought and floods. Food shortages and Foreword 1
power famine. Infectious diseases and
lifestyle disorders. Migrants and refugees. From the Directors' Desk 5
Civil wars and territorial disputes. Resource
unavailability. Protests and disruptions. Vision & Mission 11
Advancing deserts and the blooming of the
Arctic. Extinction of species and emergence Profile - MSPL Limited 14
of new viruses.
Mankind is amidst a maze of challenges.
Mining Business 15
Rampant environmental and social illiteracy Wind Energy Business 17
is accelerating the damage.
Awards and Accolades 19
A large majority is unable to read these
danger signals and are uneducated about
the linkages between their behaviour and
the problems that confront us. This is
sinking us deeper into the labyrinth. The
need to educate and spread awareness on
sustainable growth was never more urgent.
At MSPL we are actively engaging with our
stakeholders and civil society at large to
sensitise them about sustainability and
demonstrating through our actions how the
practice of sustainability is helping us tide
over tough times and creating a positive
imprint on the environment and our
communities.

We are happy to release our fourth consecutive

sustainability report.
The Report continues to cover the same units as
in our 2007-2008 CSR report, namely
Vyasankere Iron Ore Mines, Export Oriented
Units (EOUs) and the Wind Energy Division.
 foreword
Dear Readers, During the year, we produced more than 2.7 MMT of iron ore;
majority of which was exported to China with marginal quantities
We are pleased to present our fourth Sustainability Report for the sold in the domestic market. Our devoted efforts in promoting
This year
financial year 2008-2009. This year's report has the visual theme we produced renewable energy continued with investments in clean and green
of a “Maze”, reflecting the labyrinth of challenges we faced during more than wind energy through our separate wind division. As of today we
the year. 2.7 MMT have an installed capacity of 127.8 MW of wind energy spread
of iron ore across high wind potential states of the country. Apart from wind,
We were among the handful early movers in country in terms of
sustainability reporting in accordance with GRI guidelines. In fact we continue to evaluate and analyze our entry to other sources of
we were one of the first Indian mining companies to report in renewable energy such as hydro, solar etc.
accordance with GRI. This year's report is a continuing endeavour
We have for the to communicate our efforts towards addressing sustainability
second time issues to all our stakeholders.
in a row reported
in accordance We continue to cover our mines namely Vyasankere Iron Ore We have today
Mines (VIOM) including our Export Oriented processing Units
with A+ (EOUs) and the Wind Energy Division of MSPL. This triple bottom
an installed
capacity of
Application line report is for the period from the 1st of April 2008 to the 31st of
Level of the GRI March 2009. We have over the years consistently followed Global 127.8 MW
Reporting Initiative's Sustainability Reporting Guidelines (GRI) of wind energy
and have for the second time in a row reported in accordance with
A+ Application Level of the GRI 2006 guidelines (GRI - G3).
Through this report we have detailed our efforts towards
addressing sustainability challenges on all fronts namely:
To make sustainability the corner stone of our actions, we have
rolled out a comprehensive Sustainability Policy of MSPL Limited
Mining Business Renewable Energy this year which underpins our individual policies, standards and
targets implemented within the company and one that
encompasses triple bottom-line issues.
Environment Significant Stakeholders Our mine has
been certified for Being in the business of natural resource extraction,
ISO environmental safeguards form the backbone of our vision
Our financial performance considerably slowed down during the 14001:2004 towards protecting the environment near our operations and is
report period as a result of the dire global economic scenario. Environmental crucial to our sustenance in the long run. Our mine has been
Overall revenues were slashed in the second half of the year owing Management certified for ISO 14001:2004 Environmental Management
to lowered ore prices, increased market competition and Systems Systems.
diminished demand for ores from our prime export market of Our ambient air pollution levels are maintained well within limits.
China. Coupled with these, there were also challenges in terms of We have effective waste management systems in place and our
internal political pressures faced by our daily operations. We wastes from mines are systematically managed and disposed.
had to take action on certain crucial issues such as cost cutting We have reduced our water usage over the years within our
measures across our activities, but have ensured that employees' processing units and have adhered to water discharge
job security is not jeopardized at any point in time. parameters as stipulated by the State Pollution Control Board
We have come a long way since 1962. From being a core mining (SPCB). We have over the years been actively following
company we have diversified our activities into related afforestation activities along with measures to curtail soil erosion
businesses with a strategic decision to establish a Pellet plant and and run off from the mine area. Being a forerunner in
foray into the Shipping business. We are now well poised to Our wastes environmental management programs among mining
handle the entire supply chain from raw material production to from mines are companies, we have taken the lead in addressing environmental
systematically issues in common forums such as Federation of Indian Mineral
end use, including logistics management. With our diversification
and future plans, we felt the need to have an organisational managed & Industries (FIMI) to promote sustainable principles among Indian
restructuring to better manage our businesses. disposed Mining companies.

1 2
 Our contribution to society dates back to a stage when there were recreational facilities for employees, assisting educational
no mandates or pressures in adhering to a formal Corporate Social institutions, building bus shelters and greening activities. Also in
Responsibility (CSR) structure. Our belief resonates with the vision our efforts to address health and sanitation, we aim to construct
of our Founder Chairman who believed in inclusive growth and 1500 individual household toilets in the forthcoming years.
ensuring the health of the communities along side MSPL's growth. We aim to
I am not the construct Our full-fledged Occupational Health Center was renovated and
His ethos - “I am not the owner of wealth, but a privileged trustee to
owner of serve the community with it” continues to motivate us. Following 1500 further upgraded with new equipment. We have conducted
wealth, the foot steps of the Founder Chairman, our Chairman & Managing individual
annual occupational health surveillance for all our employees. We
but a Director firmly believes that commitment from our own also have a company-wide medical insurance (Medi-claim) policy
privileged management, is essential to embed responsible business
household to cover all employees and their families. Smt. Vasantidevi
toilets Baldota Blood Bank, continued to offer its vital services to the
trustee practices into the decision making process.
in the people of Hospet and its surrounding region of about 100km.
to serve the forthcoming
The economic slow down has not deterred us in investing in social
community causes. We firmly believe that the growth and health of our
years We strive to strengthen performance across the triple bottom line.
with it We thank our stakeholders for their continued support and
communities will lead to our own growth and good health.
cooperation and urge you to be with us in our ever continuing
The societal vision conceived by MSPL is in line with various journey of addressing sustainability on all fronts.
national and international sustainability agendas such as the
Indian Prime Minister's 10 Point Social Charter, United Nations Yours truly,
Millennium Development Goals (UNMDG), International Council
on Mining and Metal's (ICMM) Sustainable Development
Principles and Sustainable Mining Initiative.
Smt. Vasantidevi
Baldota
Blood Bank Shrenik Kumar N Baldota
caters to Hospet
& its surrounding We encourage you to reflect on the strengths and weaknesses of
region of about
this report and send us your valuable feedback and suggestions
We formed
10 new 100kms to: [email protected]

SHGs
that were linked
to bank for
credit facilities

In the current year, we formed 10 new Self Help Groups (SHGs) that
were linked to bank for credit facilities. As on 31st March, 2009 we
have 45 women SHGs working in various villages for Women
Empowerment. This has been a landmark activity that has
underlined our efforts to address large number of issues in villages
through women, who have the mettle and the strength for change.
Also to provide livelihood opportunities we continued our efforts
in conducting tailoring classes and providing women with sewing
We have machines for them to pursue income generation activities. So far
provided we have provided 160 sewing machines to women who underwent
160 training in tailoring. We have paid special attention on educating
sewing the girl child and to reduce school drop out rates among female
machines children. Our target for the forthcoming year is to re-enroll 100
female students who had earlier dropped out of school.
to women who
underwent
We have ensured the development of Hospet town through
training in
tailoring enhanced infrastructural facilities like road ways, renovation of
children's park, provision of advanced play equipment,

3 4
 FROM THE DIRECTORS’ DESK

a maze of Our plans in this phase have been to seek stability

and performance through acquisitions and moving
challenges to related businesses for our growth and sustenance
Our current year's report depicts the
visual theme of a “Maze”. This reflects
the challenges we faced during the
company to take stock to figure the
best way forward. Our plans in this
addressing
year in terms of economic turbulence
and downturn. We see ourselves
phase have been to seek stability and
performance through acquisitions and
sustainability
navigating through this maze, guided moving to related businesses that The articulation of our Sustainability
by the compass of strategic decisions, sustain growth. We are also looking at Policy is just a start towards a formal,
mixed bag where a good first half, was
actions and diversification, and view it other countries for export. deliberate and coherent approach
followed by a lean patch in the second
as an apt theme to communicate our towards engaging with our
half especially with regards to our Our diversification via the Pellet plant
commitment to meet challenges head stakeholders and working on
mining and iron ore business. In light would assist us in continuing the line
on and find new routes towards a sustainability issues. We have always
of the current economic situation our of process from sourcing raw materials
sustainable tomorrow. emphasised on triple bottom line
challenges are aggravated. The to that of making steel. Our foray into
The twists, turns and dead ends that challenges that we face are both performance across our operations.
the shipping business, is aimed to
we faced during the year have internal and external. Internal being The policy is an added driver for us to
strategically venture into related
drastically impacted our mining the political scenario, policies and focus on addressing sustainability at
logistics business. MSPL through its
business in terms of lowered barriers to our operations. External every step and action. The next step
subsidiary has invested in procuring
demands, lower prices, external being the shrinking of our export is to translate the policy into practice
four new ships that would be delivered
competition and unfavourable market realisation from China and that is inherent in our system of
to us in the next two years.
Governmental attitude. Despite these increased competition from Australia functioning.
crucial challenges, we continued with and Brazil, along with lowered prices of
We had the privilege of being part of
determination to meet our targets and ores. Indian iron ore prices in the 2nd
the recently setup Indian Mining
fulfill commitments to our half of the year have been the lowest
Initiative (IMI) which gave us the
stakeholders. The current year was a thus far. Our strategy has been to focus
platform to spearhead the drive to
establish its sustainable mining
principles, in line with those of the
We see ourselves navigating through this maze, global International Council on Mining
guided by the compass of strategic decisions, and Metals (ICMM), duly dovetailing
them to suit national needs and
actions and diversification relevance after deliberations with
This phase has provided us with
on pricing to beat competition. opportunities to cut costs and focus on other key Indian mining companies.
We have been able to manage this with our activities. We have ventured into a These efforts will ultimately translate
our high quality products and low port process audit that would assist us in into establishing an Indian Mining
costs. The major challenge that we face optimising cost with increased Framework.
is to determine the correct pricing efficiency of our processes. We have Being a forerunner in the mining
levels at which we can continue to reached a stage, where we are adding sector in India, we have established
sustain. more people for the pellet plant. This is internal systems and policies that
a sign of our expanding family. In an already address ICMM guiding
In the past years we have enjoyed
attempt to address our diversification principles in all our actions. As one of
peaking growth rates in our mining
and expansion plans, a restructuring the leaders in the industry, we want to
business. Now is the time for our
process is currently underway. communicate our sustainable
commitments and actions to our

5 6
 The Baldota Group's CDM project of 125 MW
where MSPL has a lion share of 78.90 MW,
stakeholders. We believe that leading materials are dumped at designated
by example will motivate other dumping areas. The dumps are
was the largest wind power project in the world
companies to follow suit. managed by proper terracing and to be registered as a CDM project
afforestation. Our zero waste
We have taken a number of steps over management plan for mining We are also keen on other renewable
the years to be environmentally operations is intended to recover energy sources like solar and hydro. In
friendly. Vyasankere Iron Ore Mines 100% of minerals through systematic the long term we harbour a vision to
has their Environmental Management mining processing and stoking of foray into solar chip manufacturing,
System and Occupational Health and minerals. Our efforts have been to which would make this energy source
Safety Management System, ISO reduce pollution and environmental more affordable and prevalent. We are
14001:2004 and OSHAS 18001:1999 impacts in every way while complying aggressively exploring avenues to enter
respectively in place. We have with norms and regulations. into the solar market and also in the
developed structured processes to
process of planning a mini hydro power
ensure that all potential hazards are We have been actively conducting
plant in Karnataka in the
considered and preventive measures afforestation activities over the years
forthcoming year.
implemented to ensure safety of along with measures to curtail soil
employees and the surrounding erosion and run off from the mine and received the first prize for
community. To achieve our vision area. The mine is highly mechanized, 'Independent Power Producer' under
towards zero waste from our mine, the with very little manual intervention. the Wind Programme (2002-2007). The
Baldota Group's 125 MW CDM project
sustainability of
in Karnataka, where MSPL had a lion our communities
We have a Research and Development (R&D) share of 78.90 MW, was the largest
Much before the big talk on Corporate
wind power project in the world to be
department that constantly endeavours to conserve registered as a CDM project with the
Social Responsibility (CSR), we have
and utilise low grade waste thus minimising waste been active on this front and we
United Nations Frame Work for
believe in giving back to our society.
Convention on Climate Change in
CSR as a system is only a systematic,
September 2006. This has reinforced
We have installed a conveyor belt consistent, apparent management
to our ambition towards investing in
system to transport ore from excavation response to handle social issues that
to points of loading. This has cut down we have mastered in our own ways. Our
on our use of trucks for transportation initiaves have been aligned with
thus reducing pollution. We have also national as well global mandates such
taken initiatives to minimise the usage
of road transport by shifting over to Rail
mode, and would like to see its usage
more along with Sea ways in the forth
coming years.

Research and Development (R&D) renewable energy

department constantly endeavours to renewable energy and we seek to
We firmly believe in the fact that we
address issues of waste reduction and substantially enhance our investments
need to invest in renewable sources of
discover alternative uses of in wind power.
energy. Towards this our primary focus
overburden mine wastes to conserve has been in wind energy. In our efforts Though there were no capacity
and utilise low grade waste. to bring clean wind power to the additions in the current year, an
In terms of overburden management country, we were recognised by the additional capacity of 15.2 MW in the
plan, which is the main waste Ministry of New and Renewable Energy Hospet region is being planned in the
generated in mining activity, all the (MNRE) forthcoming year.

7 8
 as the United Nations Millennium
Development Goals (UN MDG) to
We firmly believe and have come to see that women
address issues of eradicating poverty, act as enablers of change and are pillars for
providing access to basic needs of sustaining their families and communities at all times
water, sanitation, healthcare and
education. To address the needs of
villages and to focus on core areas of facilities to our city of Hospet. towards the upgradation of hospitals
our social interventions we have thus These include roads, children's park, and also provided assistance to poor
far adopted 10 villages, in close and recreational facilities for and needy individuals towards
proximity to our mines and wind employees, assisting schools and healthcare costs.
installations. greening activities. Providing access to
healthcare and upgrading healthcare We remain firmly committed to creating
Women empowerment has always had opportunities for our communities,
tailoring classes and donating sewing facilities is an another area of our
our special attention. We firmly believe improving their standard of living and
machines to women. We have paid attention. We have contributed
and have come to see that women act making them more self sustainable.
as enablers of change and are pillars special attention on educating the girl
for sustaining their families and child and to reduce their school drop
communities at all times. To empower out rates. Our target for the
Narendrakumar A. Baldota Rahul Kumar N. Baldota Shrenik Kumar N. Baldota
Chairman & Managing Director Executive Director Executive Director
Baldota Group of Companies MSPL Limited MSPL Limited
Our initiaves have been aligned with national
as well as global mandates such as the
United Nations Millennium Development Goals

women our attempt was to form SHGs. forthcoming year is to re-enroll 100
With this we have aimed at providing female students.
them with financial independence and
decision making powers that has To provide basic access to sanitation
automatically translated into uplifting facilities, especially to address the
homes and communities. In line with needs of women, we have continued
our previous year's efforts on this front, our efforts in individual household
we formed 10 new SHGs this year that toilet construction in villages and our
were linked to the bank after providing commitment is to construct 1500
seed funds for credit facilities. This toilets in the forthcoming years.
takes the total SHGs formed to 45. To Our social contributions towards
provide livelihood opportunities we development have been a conscious
continued our efforts in conducting attempt to provide infrastructural

9 10
 vision
'Guided by principles mission
of sustainability
'To become the leading
we will be a conglomerate
supplier of iron ore
driving the nation's
and wind energy in
growth by establishing
the country by meeting
standards of excellence
the direct and implied
in adding value to
needs of domestic and
nature's resources'
global customers to
their best satisfaction,
through the employment
of and services of
committed and
knowledgeable team
members'

11 12
 The Vision and Mission
Concern

5CARDINALS
stand on the pillars of MSPL’s A genuine and
meaningful interest in
the environment, by
company profile
embracing green
that characterise us as an technologies,
organisation and the afforestation
values of our employees. BALDOTA GROUP
programs and air,
water and soil
management MSPL
LIMITED
MINING WIND ENERGY
Creativity Care VYASANKERE IRON ORE MINES
DHULE
HARPANHALLI
Innovatively For the community we EXPORT ORIENTED UNIT 1 SATARA
harnessing the work in, by taking EXPORT ORIENTED UNIT 2 CHITRADURGA
resources to find initiatives that make a SURAJABARI
creative solutions real difference at the
that augment grass root level in the
business operations areas of education,
healthcare and overall
enhancement in the
living standards of the
community
Commitment
An unflinching promise
of providing nothing
short of the best in
Core Values
quality and quantity These are quality,
through state-of-the-art customer relations,
R&D and continuously safety, care for
upgrading the skill environment, ethical
quotient of managers business practices, MSPL Limited is a closely held unlisted flagship company of the Baldota Group.
and workers forming the basis on We are based in Hospet, Karnataka, India and our principal business domains
which the group are iron ore and wind energy.
functions and supports
the framework of its
operations.

13 14
 Leased area of 347.22 hectares

VIOM Estimated Reserves of

17.98 million tonnes of +64% Fe
as on 31st March 2009
mining business
Mining Operations are highly ore excavation
mechanised operational overview
Extensive afforestation has been
carried out over 1.7 million trees check dams &
gully plugs
Modern overburden management
systems
Elaborate network of check dams afforestation
and gully plugs to control run off
Established air and noise
pollution management system
overburden
management

Export Oriented Unit 1 Export Oriented Unit 2

EOU 1

EOU 2
Processes Iron Ore processes Iron Ore Excavated
excavated from VIOM from mines leased/operated
Products are classified in by other companies of the
terms of size and Fe Baldota Group
content MSPL is one of India's leading private sector iron ore mining and exporting
Raw ore from various mines
are tested and blended prior companies and is actively involved in mining, processing, trading and
to processing exporting of iron ore. China is the principal market for our products. MSPL
operates the Vyasankere Iron Ore Mines (VIOM) and two Export Oriented Units
Beneficiation is carried out for (EOUs) that process and dispatch products from VIOM and other mining
upgrading Fe content
companies.

truck transport truck transport from Strategic investments over the past decade in wind farms have given MSPL a
& hopper other mines significant presence across some of the best wind regimes in India. We are
one of the largest private sector investors in wind energy. Our wind farms at
the districts of Davengere, Bellary, Chitradurga, Dhule, Satara and Kutch
storage storage districts are located in the Indian states of Karnataka, Gujarat and
Maharashtra.

crushing & screening crushing & screening

classification,
classification beneficiation & thickening

tailings & other

waste management waste management

major products:
LOGISTICS

Our EOUs have rail sidings from lumps, fines & concentrate
where products are transported 63.5% - 66% Fe grades
The bulk of our products are
exported to China via ocean freight
from ports of India rail transport

ocean shipment

15 16
 wind energy business
operational overview

MSPL has been in the wind energy business for nearly a decade. The case for
wind energy was clear: resource conservation, pollution abatement and the
resultant climate change mitigation and these have made renewables a
Evaluation of sites Priliminary detailed necessary component of any future energy scenario. Moreover, wind energy
identified by the developer feasibility study at that time, was relatively more attractive in the Indian market as compared
or by in-house experts with other renewable energy options. The wind energy business fit perfectly
Negotiations with
Assessment of technical investors, State Electricity in to MSPL and the Baldota Group's principles of environmental
and economic feasibility Boards and other responsibility.
government agents
Assessment of
MSPL (Investor)

The early start has given us access to some of the best sites in premium wind
environmental and social DEVELOPER Acquisition of land and all regimes in India. Our hands on approach to this business domain and the
implication of proposed legal approvals and grants
wealth of experience thus gained has given us a complete understanding of
new project as required
Identification of suitable the nuances of this business, the peculiarities of operating in the Indian
Provision for funds for investor market and the implications of operations across different states and the
purchase pros and cons of working with different wind farm developers and operators.
Development of site and
Identification of competent support infrastructure Today, we are recognised among the most reputed wind energy investors in
wind farm operator India and have achieved numerous awards for our contributions to this
Provision of manpower and
industry.
Oversight of operations facilities for on-site
through MSPL operational activities The emphasis we placed on our wind business and its professionals has
representatives on a helped us bring a wealth of experience to all dealings with site developers
Maintenance of wind farm
day-to-day basis
assets, observation of and operators. Leveraging this in-house technical competence, we have
Management of project safety measures carried out independent site assessment and feasibility studies. Based on
finances and profitability the results of these assessments, we will go ahead with plans to expand our
Monitoring of electricity
Engagement with lenders, generation and electricity wind presence in India.
developers and fed to the grid
government authorities In the current year, there were no capacity additions by MSPL. However,
projects that had already initiated such as the 15.20 MW capacity addition in
Hospet, are well underway. We expect that this farm will be commissioned in
the forthcoming year.
Wind Grid Monitoring
Turbines Connection Station Nevertheless, we are committed to our target of 400 MW of installed wind
energy capacity by 2012 for the Baldota Group.

Our wind energy business is our most significant and important contribution
to the climate change mitigation effort. In the coming years, we plan to
complement wind energy with other alternative sources of energy such as
ELECTRICITY BOARD solar and hydro power as well.

Provision of grid facilities

Monitoring of electricity transmission to grid
Payments to electricity generating party as per terms
identified in Power Purchase Agreement

17 18
 awards & accolades chanakya award
for corporate governance
We have received various accolades and recognitions for our
contribution in the field of mining, corporate social responsibility
and renewable energy business during FY 2008-09:

lifetime achievement award

“Chanakya Award for Corporate Governance” was presented to

MSPL by the Public Relations Council of India (PRCI)

special recognition
Our in-house Journal – “Minds and Mettle” received special
recognition under the Corporate Collaterals category by the Public
“Lifetime Achievement Award” by the Federation of Indian Export
Relations Council of India (PRCI)
Organisations (FIEO), New Delhi, was presented to our Chairman &
Managing Director, Mr. Narendrakumar A. Baldota, by the
President of India, Mrs. Pratibha D. Patil. The award is testament to
his outstanding contributions to the field of business and for being top export award - CAPEXIL
an inspiration for excellence

three star export house certificate

“Three Star Export House” Certificate from the Ministry of
Commerce. The status certificate was issued as per the Foreign
Trade Policy 2004-09. The certificate, with a validity of five years,
underscores MSPL's contribution to the Nation's exchequer

golden award-corporate collaterals

Our Corporate Sustainability Report 2006-07 received the “Golden
Award” under the Corporate Collaterals category from the Public CAPEXIL's Top Export Award,
Relations Council of India (PRCI) 2008-2009 and Special Export Award every
year since 1999

19 20
 MSPL LIMITED
SUSTAINABILITY REPORT 08-09 2

REPORT PARAMETERS
Embedding Sustainability 1

Governance and Accountability 11

Stakeholder Engagement 16
& Issue Identification
 embedding The policy is also aligned with our
5 Cardinal Cs - Creativity, Commitment, Concern,
sustainability Care and Core Values
release of sustainability policy
Our Sustainability Policy identifies all stakeholders that we consider as significantly
The concept of sustainability is the keystone of our vision and business activities. In associated with our business activities and it clearly articulates our stance on issues
our first report, we shared our views on Quality, Environment and Health & Safety that are relevant to our business and the communities within which we operate.
and how we were putting these in to practice. Last year, we provided disclosure on The policy is also aligned with our 5 Cardinal Cs - Creativity, Commitment, Concern,
the progressive deployment of the Human Rights policy at MSPL and the steps that Care and Core Values.
had been undertaken towards implementation of and dissemination of the policy.
The principles and ideas that are enshrined in each of these individual policies are The policy is designed to be both, purposeful and relevant. It is purposeful by
simply facets of the wide concept that is sustainability. The development, unambiguously enunciating our point of view on the most relevant matters of
declaration of the policies and the evolution of our business and our understanding business continuity - corporate governance; the core values that reinforce our
of it, has prompted us to explicitly articulate our views, as an organisation, on operational attributes; sustainable development through environmental, social and
sustainability. To this end, MSPL deliberated on and devised a Sustainability Policy economic performance controls; mitigation of climate change through renewable
during the reporting period. energy; biodiversity protection; health, safety and human rights of direct and
indirect employees and; our role in developing the communities that we operate in.
The policy has been developed keeping in mind principal stakeholders, all material It is also designed to be broad enough to cater to the diverse sustainability contexts
parameters, the sustainability and development context of MSPL and the regions in that are a derivative of MSPL's dynamic business profile.
which it operates in addition to the aspirations of the company.
The policy is the very essence of MSPL and what we endeavour to be.

MSPL sustainability
policy
1 We are committed to achieving
highest level of corporate
governance standards, integral to
5 We seek to conduct and grow
our business in a responsible
and profitable manner, while
At MSPL, we combine human At MSPL, we recognise the need to
our activities and processes, by delivering value to all our
ingenuity and natural resources for communicate our sustainability
following our cardinal guiding stakeholders especially our
the benefit of our current and future challenges and achievements to our
principles of creativity, shareholders.
stakeholders. This is our core stakeholders. We will strive for
commitment, concern, care and
contribution to a more sustainable credible reporting systems and
core values.
society. We believe that following
sustainable development principles 6 For our direct and indirect
employees we endeavor to
encourage open dialogue with our
stakeholders for enhanced
makes good business sense and are
therefore committed to achieving 2 We aim to operate at all times in a
way that embodies our values of
being reliable, responsive,
adhere to the highest norms of
health & safety and human
transparency. In implementing this
sustainability policy we shall engage
economic, environmental and social rights across our operations. our stakeholders for sharing the
straightforward and
objectives associated with these responsibility of upkeep of our
understanding.
principles. sustainability commitments.
7 We believe we have a positive

3
Our Sustainability Policy framework We are committed to sustainable role to play for our communities This policy will be reviewed at
is underpinned by individual development and aim to monitor contributing towards their appropriate intervals and updated as
policies, standards and targets our environmental, social and various needs and concerns and when necessary to adequately
implemented within MSPL economic performance and including local employment, reflect the current context of
encompassing triple bottom line minimise the impact of all our health, sanitation, education, sustainable development within our
issues. These are material to our operations. and livelihoods. sphere of influence.
business, shareholders, lenders,

4 8
employees, customers, suppliers We will aim to ensure that our
We are committed to the continued
communities, and regulatory generation of renewable energy, to contractors and suppliers also
authorities and also extend to proactively engage in addressing observe regulatory and human
respecting the needs of future climate change and preserving rights obligations. March 20, 2009
generations. Towards this extent, we biodiversity. MSPL Limited
outline our approach relevant to
MSPL's areas of operation.

1 2
 Drive policy FIMI and sustainability
into practice in the mining industry
International Council on Mining and Metals (ICMM) International Council on Mining and Metals (ICMM)
Sustainable Development Framework Principle 02: Sustainable Development Framework Principle 1:
Integrate sustainable development Implement and maintain ethical
considerations within the corporate business practices & sound systems
decision making process of corporate governance

Since our inception, we have made The Federation of Indian Minerals

efforts to emphasise triple bottom line Industry (FIMI) is a forum where
performance across our operations. members can deliberate and work
Through our previous sustainability together on matters of significance to
reports, the reader would be aware the industry. A number of heads of the
and informed that MSPL is a major mineral companies of India are
forerunner to the concepts of members of the highest decision
sustainability and has consistently making committee at FIMI.
worked to ensure the implementation
of sustainable business practices. MSPL has been an active member of
FIMI as we have always believed that
the Indian minerals industry would
significantly benefit from partnership
MSPL is a forerunner to the concepts of sustainability and co-operation that it has historically
and has consistently worked to ensure the lacked. Moreover, through collective
implementation of sustainable business practices actions, much can be achieved in terms
of shared best practices, stronger The FIMI recognises
industry lobby in government decisions
The declaration of the Sustainability Performance against these indicators and many others.
the need for integration
Policy represents the beginning of a will be disclosed in a transparent of sustainable practices
more formal, deliberate and coherent manner utilising a balanced score card Our Executive Director, as necessary across the
approach towards engaging with the approach in subsequent reports. Mr. Rahul Kumar N. Baldota, is the
present President of the Federation.
Indian mining industry.
stakeholders and working on
sustainability issues that are most The declaration of this policy is also His tenure as the Chairman has seen To this end, over the
material to us. significant in terms of the influence, it the issue of sustainability gain greater past year, we have taken
will have on our stakeholders. The next importance at FIMI. concrete action towards
It is the first step in setting ourselves action for us is to share the detailed
clear targets and goals, articulating policy with our stakeholders so that In the reporting period, members of developing a
our commitments and delineating they are encouraged to partner and FIMI, with the help of specially Sustainability Framework
areas for continual improvement. assist us in achieving our targets and appointed industry and subject and a set of associated
Following the release of the set goals through a process of mutual experts, tabled a proposal to FIMI to
shape and implement a sustainability
Guidelines for the
Sustainability Policy, we will define cooperation and constant learning.
the most material parameters that are MSPL's Sustainability Policy holds framework and a set of key process Indian mining industry
associated with tenets of great importance and promise on guidelines for the Indian mining
sustainability identified in the policy account of the proliferation of its industry. Modelled on the ICMM
and set up mechanisms to periodically essence, recognition of its vitality and Sustainable Development Framework
measure performance (in case these the development of methods to Principles, the FIMI framework included Rahul Kumar N. Baldota
do not already exist). Targets or improve sustainability performance. principles associated with business Executive Director - MSPL Limited
benchmarks across business units will ethics, corporate governance, President - FIMI
be set for continual improvement. incorporation of sustainable

3 4
 sustainability of our
wind farms
development principles at the highest process guidelines for the Indian
level of decision-making, human mining industry are agreed upon soon
rights, risk management strategies, and will be embraced by the entire
health & safety, biodiversity & land industry. This step is the first among
management, community the other significant steps taken
development and transparent towards the elimination of the stigma
engagement. The guidelines pertained associated with the mining industry.
to the process through which the
framework may be deployed across MSPL would be glad to play a leading
mining operations in India. By virtue of role in demonstrating how the
our experience of integrating framework principles and guidelines
sustainable and responsible practices can be put into practice and progress
in our business, MSPL has played a on performance shared with
constructive role in developing the stakeholders. In fact, this report
framework and the guideline by references the ICMM Sustainable
providing inputs on how to tailor make Development Framework Principles in
the policy to suit the needs and an effort to demonstrate the
circumstances of the fragmented initiatives that a company may take responsibility in terms of attending to
Operation and Maintenance (O&M) of
Indian mining industry. and practices that it may adopt, in routine checks, maintenance, repairs,
wind farms is usually an activity
order to meet both, the letter and the calibration of meters, data logging and
carried out by site developers. Private
For far too long the Indian mining spirit of the FIMI sustainable data reporting on a daily basis. In
developers are essentially suppliers of
industry as a whole, has been tainted development framework. terms of actual working and
wind turbines who take an O&M
with a single brush and associated Through such industry efforts, generation, daily data generation is
contract to maintain machines of
with poor environmental and social MSPL believes that it can play a role automated, compiled at the Central
project proponents over the project life
credentials due to the malpractices of in advocating and facilitating a Monitoring System of the wind farm by
time. We have sourced our wind mills
some small mining entities. It is change in the outlook of the industry O&M contractors and is sent to us on a
from reputed global/national suppliers
expected that the Sustainable and its stakeholders towards daily basis.
such as Suzlon Energy Limited, Vestas
Development Framework and its key sustainability performance.
Wind Technology and RRB Energy
We have also recruited around 13
Limited. These companies have been
dedicated staff who are stationed at
in the wind energy business for
some of our larger wind farm sites.
decades and are also our O&M
They function at the levels of manager
contactors for respective machines at
liaison, site engineer, office
different wind farms.
representative, senior manager, senior
As companies of global repute, our engineer and technicians. MSPL staff
O&M contractors adhere to at the wind sites takes care of our
international best practices / policies. wind installations and works in close
They are ISO-9000 and ISO-14000 coordination with the contractors to
certified and follow strict norms, ensure the proper functioning and
documentation processes and generation of electricity.
continuously upgrade their products,
We remain firmly committed towards
services and practices.
generating renewable energy through
Their trained and qualified wind power and adopting
professionals take complete sustainability at every level.

MSPL has been an active member of FIMI

as we have always believed that the Indian minerals Daily generation data is automated, compiled at the
industry would significantly benefit from partnership Central Monitoring System of the wind farm by
and co-operation that it has historically lacked. O&M contactors and is sent to us on a daily basis

5 6
 IFC mandates its funding beneficiaries to
targeting global adhere to the rigorous world-class environmental
benchmarks: embracing and social standards
the IFC standards
set of MSPL as well as the operation
of its sister company. Satisfied with
The wind farm projects that we invest in are capital intensive in nature and have our performance, the IFC has
high up-front costs. It is therefore prudent to secure funding for these projects from disbursed the first tranche of funds We were aware of the
reliable and reputable lenders. The International Finance Corporation (IFC) is an for this multi-million dollar project. stringent environmental
ideal case in point. As a member of the World Bank Group, IFC is committed to
fostering sustainable economic development in developing countries through the The following table identifies MSPL's and social standard
judicious finance of private sector investments. In fact, what differentiates IFC from characteristics that respond and help that the IFC required
other lenders is its emphasis on sustainability. meet the IFC's Performance from clients to whom it
Standards on Environmental and
Due to this commitment to sustainability, the IFC mandates its funding beneficiaries Social performance. Also listed are
lent. However, we
to adhere to the rigorous world-class environmental and social standards. For many the opportunities for improvement considered the imposition
companies, the stringent requirements of meeting performance standards on that were identified through the of these requirements
Environmental Health & Safety set by the IFC act as a deterrent. Whilst considering reviews conducted by the IFC and on our Company as not
potential lenders for one of our large wind farms in Gujarat, MSPL identified the IFC external advisors. We are actively
as a suitable lender.
just an opportunity to
working towards bridging these gaps.
benchmark ourselves
We have hired external advisors to help identify and implement programs to meet against globally
One of the suggestions that the IFC
the IFC standards. IFC itself has carried out exhaustive physical assessments on a
has put forth is the conduct of regarded environmental
environmental and social impact and social standards,
assessment at our wind farms. Wind
farms in India legally do not require
but also to seek out
environmental or social impact new ways of improving
assessments. However, we recognise our triple bottom line
that such an assessment would not performance
only help in meeting the IFC's
conditions, but will prove to be a
learning opportunity for us and other
wind investors in India to better Srikar S. Bhattbhatt
understand the environmental and Vice President - Corporate Affairs
social implications of wind farm & Company Secretary
development in India. MSPL Limited

IFC has also carried out exhaustive physical

assessments on a sample set of MSPL as well as its
sister company's operations.

7 8
 IFC Performance IFC Performance
Standard on Standard on
Major MSPL characteristics: Major MSPL characteristics:
Social and Social and
systems, activities, processes and standards systems, activities, processes and standards
Environmental Environmental
Sustainability Sustainability

An Environmental Impact Assessment (EIA) covering MSPL's Health and Safety Impacts of our operations on communities
mining operations has been carried out by external agencies. is limited through the establishment of effective pollution
This includes risks and impacts of inter alia, ambient air quality,
water quality, water use, noise control, ground vibration control,
PS4 control and avoidance systems as described in Performance

PS1 Community Standard 3.

solid quality, biodiversity and socio-economic aspects.
Health, Safety Explosives and hazardous materials are stored and
Social and MSPL's mine - VIOM - has established certified Environmental and Security maintained separately within the mine lease area.
Environmental and Operations Health and Safety Standards: ISO 14001 and
Safety and emergency preparedness systems have been put in
Assessment OHSAS 18001 that are periodically audited by reputed external
place and are periodically reviewed.
and certification agencies.
Management
A mine closure plan has been developed and submitted to the

PS5
Systems
Indian Bureau of Mines (IBM). MSPL's operations have not involved the disturbance or
The Corporate Social Responsibility Team headed by an Assistant Land Acquisition resettlement of any communities. Land acquisitions have
General Manager (AGM) consults with local community members and Involuntary generally been made in forest areas through permission from
and attends to their grievances. Resettlement the Department of Forests and other Government agencies.

Our open cast mining operations have involved the removal of

A comprehensive Human Resources (HR) Manual that is
applicable to all our employees, comprehensively covers
PS6
Biodiversity
sparse forest cover in mining areas.
Extensive afforestation activities are carried out in areas within
aspects related to recruitment, issuance of identification the lease.
Conservation
cards, personal protective equipment, reporting on work
and Sustainable Compensatory reforestation is carried out by the Forest
departure, leave, over-time conditions, attendance,
Natural Department, funding for which is provided by MSPL on a
absenteeism, medical examinations, accidents,
Resource mutually agreed basis.
PS2
Labour and
superannuation, grievance procedure, discharge/dismissal,
gifts, gratification, tips, misconduct, procedures of dealing
with misconduct, code of conduct, sexual harassment,
Management
Incident introduction of invasive species during afforestation is
avoided. Species provided by the Forest Department are used
Working punishment, redressal of employee grievances against in afforestation.
Engagements unfair treatment, notices, service certificates, date of Our wind operations involve limited loss of forest cover. Our
payment of wages, deduction of fines and the display of the wind project developers also undertake afforestation activities.
HR Manual.
MSPL employees may also make use of the Open Door Policy
at the organisation and directly speak with the Chairman
and Managing Director (CMD) regarding any serious PS7
Indigenous
The sites where we operate have not had settlements of
indigenous people.
grievances they might have.
People

MSPL's operations are in full compliance with the Pollution

PS8
Cultural
None of the sites at which we operate in are declared as
being of cultural heritage.
Control norms set by the State Pollution Control Board (PCB). Heritage
MSPL has established and manages environmental impacts
PS3
Pollution
through its ISO 14001 Standard certified Environmental
Management System (EMS). Improvement Opportunities:
Prevention and Key elements of pollution prevention, abatement and MSPL is considering to go beyond legal requirements and conducting exhaustive
Abatement monitoring include: environmental and social impact assessments at our major wind farm locations.
Air emission controls and monitoring systems Effective We are also evaluating the need for conducting a more detailed community
overburden management processes Network of check dams assessment study to further understand potential impacts and risks, if any, to
and gully plugs Waste segregation at operations and communities that are within the regions in which we operate.
disposal through PCB approved parties.
MSPL has deployed a Human Rights Policy.

9 10
 Committee of Directors

Mr. Narendrakumar A Baldota

(Chairman) Deliberation on and resolution of
material issues of the Company.
Mr. Rahul Kumar N Baldota Directors of strategic investments
within the investments guidelines
established by the Board.
governance and Mr. Shrenik Kumar N. Baldota

accountability
Audit Committee
board structure, committees
and responsibility
Mr. A.R. Barwe (Chairman)
Authority goes hand in hand with responsibility and accountability. At MSPL, we Review of internal checks and
have had a long tradition of enmeshing authority with accountability. To this effect, Mr. Shrenik Kumar N. Baldota balances as well as internal
the Board assumes a paramount role in the organisation. Its key functions are to audits. Determination of audit
provide strategic direction and insight to MSPL. findings. Oversight of financial
Mr. R.H. Sawkar
records and disclosure.

MSPL's Board is led by the Chairman & Managing Director. Mr. M. Ravindra
The Board composition is unchanged since the previous reporting period
and comprises seasoned industry veterans and dynamic business leaders.
It includes three independent Non-Executive Directors.
Remuneration Committee
Mr. Narendrakumar A. Baldota Chairman & Managing Director

Mr. Rahul Kumar N. Baldota Executive Director Mr. R.H. Sawkar (Chairman)
Review of Executive Director
Mr. Shrenik Kumar N. Baldota Executive Director Mr. M. Ravindra Performance and determination
of their salaries.
Independent Non-Executive Director Mr. A.R. Barwe

Mr. A.R. Barwe Chairman-Audit Committee

Security Transfer
Mr. R.H. Sawkar Chairman-Remuneration Committee and investors grievance
Committee
Mr. M. Ravindra Chairman-Security Transfer &
Investors Grievance Committee
Mr. M Ravindra (Chairman)
Handling of Investors
Mr. Rahul Kumar N. Baldota grievances. Oversight of
securities transfer.
Mr. Shrenik Kumar N. Baldota

11 12
 International Council on Mining and Metals (ICMM) MSPL continues to accord the
Sustainable Development Framework Principle 1: significant importance to ethical and transparent
Implement and maintain ethical Corporate Governance.
business practices and sound systems industry association
of corporate governance
on the Board's roles and
responsibilities and continue to accord
significant importance to ethical and
memberships
transparent Corporate Governance. As
Notwithstanding the economic We continue to have a presence on
reported in the previous year, we have
downturn, our community development some of the major business
incorporated good standards of
program and environmental associations that are relevant to our
Corporate Governance and are guided
stewardship efforts continue to be business and industries. The
by our 5 Cardinal Cs as well as our
accorded due importance and Federation of Indian Mineral Industry
vision and mission statements. The
consideration by the Board. Issues (FIMI) and the Indian Wind Power
Code of Conduct, to which all members
related to social development and Association (IWPA) are the premier
of the Board and Senior Management
environmental responsibility are within industry associations pertaining to the
need to comply with, clearly articulates
the ambit of MSPL's Sustainability mining and wind energy industries in
the values that must be necessarily
Governance system that is headed by India. We are represented at the
incorporated in their professional
the Chairman & Managing Director. highest levels at both these industry
activities and the decisions that
For the past few years, the high At the heart of our system for the associations.
they make.
demand and supply situation in the Governance of Sustainability is the
Mr. Rahul Kumar N. Baldota our
iron and steel industry resulted in Corporate Sustainability Committee
Executive Director is the President of
windfall benefits for the iron ore that consists of a cross section of
FIMI and Mr. Shrenik Kumar N. Baldota
mining business. During this period, dedicated experts and members of the
our Executive Director is the
MSPL's Board provided directions and various departments of the Company.
Vice-Chairman of the IWPA. Through
insight to our executive functionaries
[Please visit our website these memberships, we play a
to maximise shareholder value and
www.mspllimited.com and refer to Society constructive role in strengthening the
ride the economic boom, whilst Management Approach Section in respective industries through lobbying
maintaining absolute regulatory Sustainability Report 2007-08 for a detailed
and through the exchange and
discipline and standards of social discussion on the operations and functions of
introduction of global best practices in
accountability. the Sustainability Committee.]
terms of operational, economic, social
Even though MSPL is not a listed and environmental performance.
company and is not bound by the
Issues related to social development and requirements of clause 49 of Listing
The FIMI is currently in advanced
stages of formalising an India specific
environmental responsibility are within the ambit of Agreement, it has voluntarily Sustainability Framework and Key
MSPL's Sustainability Governance system embraced corporate governance Process Guidelines for the mining
requirements as mandated under industries.
Listing Agreement. MSPL's corporate
During the year the global slump has In the recent past there have been governance framework has been [Please refer “FIMI and Sustainability in the
significantly affected the minerals instances where the senior most Mining Industry” in the Embedding
developed in accordance with clause Sustainability section of this report for a
industry. In this radically altered governing bodies of some of the 49 of the Listing Agreement and this detailed discussion on this]
scenario the focus of the Board and its corporate houses have failed the shows our sincere commitment to
supporting committees has shifted to litmus test of accountability. This leads follow good corporate governance
minimising the impact on MSPL by to a complete lack of confidence practices. The internal Audit
directing the organisation's efforts among stakeholders. Committee ensures that all applicable
towards greater optimisation, laws and provisions are complied with.
maximisation of business relations Authority continues to be linked with
and trust developed in customers an equal or greater proportion of
toward securing best possible accountability and responsibility at Through these memberships, we play a constructive
MSPL. We have applied greater focus
contracts and prices. role in strengthening the respective industries
through the exchange of global best practices

13 14
 In addition to the membership of
associations, we have also become a
stakeholder engagement
member of the Business and and issue identification
Community Foundation (BCF), India in
the reporting year. For over a decade,
the BCF has been working towards
industry associations memberships: bringing Corporate Responsibility to
the centre stage within its activities
and has been operating at the

1 Mining Engineers
Association of India (MEAI)
interface between communities,
NGOs, state actors and businesses. Its
focus areas are health, education,
empowerment, livelihoods, marketing

2 Federation of Indian
Mineral Industry (FIMI)
linkages and information.

Apart from providing guidance &

expertise, the BCF will provide us with

3 Indian Wind Power

Association (IWPA)
a forum to learn from practices and
activities of other business
enterprises in the social sphere as
well as to contribute our experiences
Federation of Indian
4 Chambers of Commerce
& Industry (FICCI)

5
Federation of Karnataka
Chambers of Commerce
& Industry (FKCCI) MSPL believes in transparency, of stakeholders and their respective
disclosure, ethical business practices issues.
Chemicals & Allied and equitable treatment to all the

6 Products Export Promotion

Council (CAPEXIL)
stakeholders.

In our previous sustainability report,

Lenders constitute an important
stakeholder group that we have
interacted with but not formally
we discussed the initial progress we identified as a stakeholder in previous

7 Council for Fair Business

Practices
among members and associated
agencies. MSPL's primary focus areas:
education, health & sanitation and
had made since 2006-07 in terms of
identifying and categorising
stakeholders we engage with. More
reports. The International Finance
Corporation is a major stakeholder in
this category.
women empowerment fit well with recently we initiated a holistic

8
[Please refer “Targetting Global Benchmarks:
Karnataka State Council BCF's areas of expertise and activism. assessment of our stakeholder Embracing the IFC Standards” in the
Membership We believe that this partnership with activities and are formally identifying Embedding Sustainability section of this
the BCF will help us further strengthen the issues most material to MSPL. report for a more elaborate discussion on our
our community programs and share engagement with IFC.]

9 Mines Safety Association This year marks a step ahead in our

our message to other business
efforts. Through reviews and Government has been categorised
Karnataka enterprises on the rationale for
discussions with employees of the under Regulatory Authorities so as to
engaging in social development. The
organisation who are in regular include the various government bodies
furtherance of effective community
Business & Community contact with various stakeholders, we and agencies that we interact with and
development and empowerment is not
have refined and broadened the scope influence our business.
Foundation (BCF) just a motivation, but also the goal of
our partnership with the BCF.
This year marks a step ahead in our efforts
MSPL's primary focus areas: education, health & towards stakeholder identification and
sanitation and women empowerment fit well with categorisation of issues that are of most relevance to
BCF's areas of expertise and activism. both the stakeholder and MSPL.

15 16
 The issues identified are a combination of matters of importance identified and Formal stakeholder feedback exercises are carried out for different stakeholders
disclosed in the previous reports as well as new issues that have arisen out of further periodically. In the forthcoming year, we plan to conduct a formal employee
interaction with stakeholders. satisfaction exercise in order to understand the current interests, needs, demands
and aspirations of our employees.

The outcome of these thought provoking exercises has resulted in a mix of issues
Employees Suppliers Customers that vary from issues that have resulted from a current or prevalent scenario to those
that are inherently related to our business, regardless of external changes.
Attracting & Timely delivery of Product quality and
Moreover, the four broad chapters: Crisis or Opportunity? Shaping MSPL, Embedding
retention of talent goods and services timely delivery
Sustainability, People Development and Environmental Stewardship are the broad
Dynamic work Re-assessment of Customer grievance aspects that include and detail sustainability issues, material to MSPL.
environment that vendor contracts to handling
fosters career assess
Renegotiation of Progress on areas that were identified
development opportunities for for immediate action in our previous report:
cost reduction contracts
Improved
educational and Supplier Diversification of
customer base and Provision of drinking water
recreational sustainability
facilities in Hospet performance identification of
quality customers in Promotion of health and sanitation
India
Provision for improved medical facilities by
providing mobile medical vans and increasing
Local Regulatory the availability of doctors in each village
Community Authorities Lenders
Construction of a new hospital
Generation of Efforts towards Implementation of
employment streamlined and world-class Induction and training for teachers to have
opportunities pragmatic mining sustainability competency in computers to increase
policies standards across computer literacy
Provision of health operations
and sanitation Provision of need-
Construction of bus shelters
facilities based support to Credit worthiness
government bodies
Women's Assistance in development of roads
empowerment Compliance with
dynamic regulatory Improvement in entertainment facilities for
Access to education; norms employees
upgrading of
educational facilities
Improvement of educational facilities in
In Progress
Hospet including building of a new school

Close cooperation with Government

Material issues were identified through a series of discussions with personnel departments
across various levels of the organisation, with a focus on senior most management.
The issues identified emerged from the confluence of stakeholder related issues as
Interaction with customers to assess customer
well as matters that are central to MSPL's business and thus, sustainability context.
satisfaction
We consider regular interaction the most effective method of engagement and we
enagage with a majority of the stakeholders identified, on a continuous basis. For
example, MSPL's Corporate Social Responsibility employees are in regular contact
with community members in the areas in which we operate. Similarly, we interact
with customers on an ongoing basis, with the levels and frequency of engagement
varying with the need and importance of the interaction.

17 18
 3

ECONOMIC BOTTOMLINE
Introduction 1

Management Approach 2

Economic crisis or Opportunity? 2

Shaping MSPL

Pushing the Frontiers of Business 13

Pellet Plant 13
Shipping Business 14
Restructuring 15
Operations Optimisation 16
 management
approach
economic crisis
or opportunity?
shaping MSPL
risk & impact
the unfolding crisis
and its effects on the
Our business strategy and core mining industry
decisions focus on responsibly
increasing profit margins and thus The financial services turmoil and the
maximising our ability to generate and bursting of the credit bubble last year,
redistribute wealth among those has had a ripple effect leading to major
responsible for its creation. The bulk of repercussions across the globe. The
our workforce is recruited locally; past year has seen the world economy
these employees have their roots in being suddenly thrust in to a state of
introduction the local region and are also aware of turmoil.
grass-roots issues and local
conditions. This plays a very important
The world is going through testing part in smooth and successful
times. The global economic crisis has operations. We are developing an
thrown a unique set of challenges and alternative energy strategy and
opportunities at us. We took a hit as aggressively pursuing renewable
the turnover of the Company dropped 2008-09 has been energy options as a source of regular
by 30.8% to INR 17,395.3 Million as and secure income as well as a means
compared to INR 25,166.5 Million last
a mixed year for MSPL.
of contributing to the global effort
year. This was the direct consequence The first six months towards mitigating climate change.
of fall in both volume by 17.89% and alone were robust.
lower realisation by 17.14% in terms of Overall it has been more
FOB year on year. The trigger for this negative than positive product responsibility Among a number of alarmist forecasts
was the downturn in the commodity and predictions coming in from various
sector during the later half of the year. We ensure that our products and
services are in compliance with all quarters, the widely respected
The changing economic scenario and applicable legal requirements of the International Monetary Fund (IMF), has
the circumstances that we are in, play a Rahul Kumar N. Baldota markets we are present in. In the revised its forecast down significantly
role in shaping our actions and the Executive Director minerals business, a product's and now expects the world economy to
manner in which we operate. However, MSPL Limited environmental performance is primarily grow on average by only 0.5% in 2009.
at MSPL, we have also developed and linked to natural resource conservation. It has further estimated that growth in
are deploying our own long-term plans To this end, we have an established emerging economies will slow to an
that we are committed to with suitable R&D program that also leverages on average of 3.3% in the same year. The
modifications. We are moving in to new external factors that represent the external expertise, which is aimed at scale of the crisis, in terms of its depth
businesses and bringing about change through which MSPL is to maximising resource productivity. and breadth, and the nature of its
systemic changes within the sustain itself. It also showcases the impact on inter alia, development and
organisation. progress on the changes that are being In the reporting period, there were no employment has made it an
introduced through various programs significant incidents of non-compliance extraordinary event. Uncertainties
This chapter presents two major at MSPL, in order to achieve our goals with regulations and voluntary codes regarding the trend, rate and timing of
sections: the implications of the global and long term plans. concerning the product & service the recovery abound. The forecast for
economic crisis and other prevailing information and labeling. the mining industry in the backdrop of

1 2
 Effect on MSPL and the
Indian mining industry

IMF has revised its forecast down significantly In 2008, the global steel production quantum of iron ore imports of around
entered into a new phase due to the 444 Million Tonnes in 2008.
and now expects the world economy to grow on global economic downturn in the
average by only 0.5% in 2009 second half of the year. Output cut by Although Indian iron ore exports to
major steel producing countries China rose slightly in the middle of the
caused global steel production to fall year on account of the reopening of a
the ongoing crisis is grim. The Fraser crisis impacts on the mining business number of steel mills that were closed
Institute's Survey of Mining has been the loss of thousands of for the first time in last ten years in
Companies: 2008-09 reported that the livelihoods across major mining
majority of mining executives believed regions, the world over.
that 30% of exploration companies During the year the global steel production was
would go out of business. 1.329 Billion Tonnes as compared to 1.351 Billion
The present day fundamentals are not Tonnes in the previous year, a reduction of 1.6%
strong – the mining industry ultimately
caters to the needs of primarily, the
during the 2008 Beijing Olympics,
automobile and consumer goods
export numbers are significantly lower
industry - both of which have been
than those of last year. Due to sluggish
badly hit. The largest segment of the
growth in China and a drop in its steel
mining and metal industry - the iron
consumption Indian iron ore exports to
and steel segment that accounts for
that country consequently suffered.
over 60% of the industry's market
value, has been strongly impacted. More significantly, iron ore prices
The iron and steel industry is also have crashed dramatically from peak
MSPL's principal customer. The prices in the previous year - this has
challenge for our industry is thus, to
Employees are integral had a significant impact on the
sustain through the change that's to our Company. 2008. During the year the global steel margins of export oriented Indian
swept the world economy; the Our people have been production was 1.329 Billion Tonnes mining companies. Current prices
companies that are able to dig deep with us through good as compared to 1.351 Billion Tonnes in hover around USD 50 per tonne as
and unearth latent value will emerge the previous year, a reduction of 1.6%. compared with an estimated average
from it stronger.
and bad days. At the same time the crude steel and peak selling price of USD 100 and
We intend to retain production of China, the largest steel USD 200 per tonne respectively, in the
So far, the typical industry response our people producer in the world, increased by 12 previous year.
has been to adopt levels of production Million Tonnes to a total of 501 Million
(to bring production in line with Tonnes from 489 Million Tonnes
demand) as well as to trim costs representing a growth of 2.6%.
through cutting back on capital Narendrakumar A. Baldota However, the pace of growth fell by
expansions and reducing employee Chairman & Managing Director almost 14.5% as compared to growth
costs through salary cuts and MSPL Limited & Baldota Group
downsising. Among the most
in the previous year. During 2008 the Stocks are not moving
prices of steel products fell to the level
significant fall outs of the economic from the ports. At the
of first half 2006 in the major markets.
This has had huge impacts on our year end, stocks have
industry and Company. piled up in various ports
The largest segment of the mining and In terms of global iron ore output, it
metal industry - the iron and steel segment that grew by 700 Million Tonnes from
2001 to 2008 with total global iron
accounts for over 60% of the industry's market value, ore output in 2008 reaching 1.90 Rahul Kumar N. Baldota
has been strongly impacted Billion Tonnes. China continued to be Executive Director
MSPL Limited
the largest steel producer and it
retained its top position with largest

3 4
 Current prices hover around USD 50 per tonne as Mining Statistics
2008-2009 (MT)
compared with an estimated average and peak selling
price of USD 100 and USD 200 per tonne respectively, Production 2,735,554.00
in the previous year On other counts, the economic
Purchases 1,084,433.00 uncertainty has also impacted foreign
exchange rates and increased volatility
The crisis has given buyers of iron ore January. However, pricing pressures Turnover 3,595,295.00
– this has thrown up its own set of
an opportunity for some hard emerged in February and continued till
challenges for an export-oriented
bargaining. In the recent round of March 2009. If the downturn does not Distribution of sales company such as ours.
negotiations for price contracts, the show any signs of ameliorating, the 2008-2009
largest buyers, primarily steel makers prices of iron ore may slide further and Export (MT) Motivated and disruptive, political
from Japan and China, bargained hard along with other iron ore exporters, interference in the operational aspects
for price cuts of up to 40%. There have MSPL will be significantly impacted. of mining in the region in which we
Export (China) 3,583,614.00
been instances where Indian iron ore operate has also added to the risks and
exporters have been faced with There are also certain factors that will
Distribution of sales obstacles that we currently face. The
payment defaults. Fortunately, our improve the situation. The Chinese
2008-2009 political scenario is a barrier to the
unwavering product quality as well as Government announced a USD 586
Domestic (MT) honest and sustainable business
the long and credible relationship that Billion stimulus package that was
(Karnataka) model consciously developed at MSPL.
has been established and nurtured aimed at infrastructure development
between our customers and MSPL has in China – a move that seems to have Janki Corp In general, the profitability and
already begun to benefit the steel 4,062.21
ensured that we do not have to suffer Limited operational aspects of wind energy
from payment defaults. industry. Information about the last businesses have been unaffected by
quarter of FY 09 indicates an increase Kirloskar 4,000.99 the economic crisis. This is largely
The three big iron ore exporters from of about 18.8% year-on-year, albeit at Ferrous Limited
because the wind energy business
Brazil and Australia – Vale, Rio Tinto 35% lower prices in iron ore imports. which has no input resource costs, but
Hare Krishna 2,628.92
and BHP Billiton – have been forced to Based on this information and other Metallics only fixed maintenance costs, is not a
enter the spot market, which had thus indicators, there are pointers of a subject of global economic forces.
far been restricted solely to Indian potential upturn in the steel industry Shirdi Sai Steels 988.65 However in terms of the global Carbon
suppliers. Spot iron ore prices reached by the end of 2009 or the middle of Pvt. Limited
market, this has been affected by the
record lows in November 2008 but 2010. Moreover, steel prices seemed economic slump and thus the revenues
Total 3,595,295.00
revived marginally in December and to have bottomed out. from wind CDM projects have been
Per Ton affected by the lowered global CER
Iron Ore realisation prices.
MSPL Financial Performance Turnover Moreover, India is an energy starved
2008-2009 (INR million) (Quantity MT) 3,595,295.00 country in which, as per the World
Bank, over 40% of the country's
Revenues 18,430.37 Turnover population does not have access to
(Amount INR) 16,470,414,613.00 electricity. Thus, there is a huge gap
Operating cost 15,477.97 between the demand and supply of
Average per tonne power in the country. For MSPL, capital
Employee wage and benefit 331.31 4,581.10
realisation expansion – linked with the availability
Payment to providers of capital 261.86 of funding – is the major area that has
been impacted and slowed on account
Payment to Government 1,012.94 of the economic crisis.
Earning per share 24.63 MSPL did not receive any significant
financial assistance from the
Net worth per share 167.20
government in the reporting period.
Shareholder fund 12,842.17

5 6
 response & opportunity
The unfolding scenario has forced us A major disadvantage The crisis has also made us rethink our
to analyse all aspects of our business strategy to export. The Chinese market
The economic turmoil
and search for measures that can be
that Indian exporters to will remain the predominant has prompted us to
taken to reduce costs and yet China have in destination for our products, we will scrutinise our cost
maximise returns. Production has comparison to those also identify premium customers in the structure and assess
been impacted due to many factors, from Australia and Brazil Indian market that are interested in
it for potential cost
the most significant of which include purchase of our products where sales
the reducing demand, lowering prices,
is the difference in realisation is higher. reductions. Through
and political interference in regional logistics costs. Indian the renegotiation of
mining operations. exporters have little to contracts with equipment
For MSPL, the largest cost component
no control over costs Attributes of a and service providers,
particularly related to short-medium term savings have been made.
is associated with logistics of our
logistics/marketing
minerals business. Other costs rail freight from mines
strategy to cope with
components include extraction and to the ports. emergent economic
processing operations for our mining
business and operational overheads
Our logistics costs make scenario:
it difficult to compete on Manoj Kumar Agrawal
for our wind farms. Due to this we are Vice President - Material
faced with a paradoxical challenge – pricing in a market where MSPL Limited
logistics cost – the component that is
most significant to our cost structure –
is largely out of our control. Rail
prices have tumbled
1 Lobby through industry
associations with railways for
reducing high freight rates
freight, port storage and handling targeted at iron ore products
costs are controlled by the Government Rahul Kumar N. Baldota
and the respective authorities. Rail
freight rates have not reduced and
continue to remain extremely high.
Executive Director
MSPL Limited 2 Maximum use of low-lead
distance ports and reduction
in supply chain losses to The challenge is in
Through industry associations, we reduce costs getting our products
have taken the lead and presented the from the mines to the
case to the Government to consider
rationalisation of rail freight rates.
However, this is a slow process. In the
3 Increase in domestic sales,
wherever higher sales
realisations are possible
customer at the
least cost – this requires
interim, our response has been to close association
further optimise transport over land
and maximise the use of the nearest
available ports, viz Chennai and Goa,
4 Development of a market for
value added iron ore products
for market diversification and
of the marketing and
logistics teams.
that offer the shortest turnaround increase sales realisation These two aspects of
times and minimal storage costs. The business sales of
contractors), we have focussed on
high rail prices have also forced us to
further streamlining processes. We
iron ore at MSPL are
resort back to road transport of
have also been able to renegotiate In the larger scheme of things, we seamlessly integrated
minerals for the time being.
contracts with our vendors/suppliers believe that the downturn actually and increases
represents an opportunity for us.
For our mineral extraction and for lower cost supplies and
Although the crisis is deep and the
our flexibility.
processing operations as well as for maintenance. Energy conservation
our wind farms (operated by third party also continues to be a focus area. timing of its end is uncertain, business
fundamentals have not undergone any
change whatsoever. We are certain
that there remains a tremendous long K. K. Kumar
Vice President
Production has been impacted due to reduced term scope for infrastructural
Marketing and Logistics
development across the developing
demand, lower pricing, and political interference in world. This will require steel and other
MSPL Limited
regional mining operations raw materials.

7 8
 International Council on Mining and Metals (ICMM)
Sustainable Development Framework Principle 02:
during the economic heydays will be
available at very modest valuations.
Integrate sustainable development
We believe that companies that seize considerations within the corporate
clearly identified opportunities to
sustain their development in the decision-making process
downturn will emerge strongest from
the global crisis.

In terms of our energy business, over

the years, steady investments in wind
energy have been made by MSPL. We
have clearly understood and accepted
renewable and alternative energy as
the true future of energy. In fact, in the
When the Indian markets current scenario, our wind business
opened up in 1991-92, has stood us in good stead due to the
companies like MSPL consistent revenues generated from it.
took time to understand We continue to target an installed wind
the risks and energy capacity of 400MW by 2012 at
the Group level.
opportunities that had
been thrust on us. Moreover, the Government's
positive stance has attracted further
Our added maturity investments in the renewable
and experience with energy sector.
global markets and The revenue from wind power division of the Group
competitors places us as a whole was maintained and in fact was higher
in much better stead by 8.5% at INR
to seize the opportunities
that show up in these Wind energy tariffs Our wind installations so far have been and this has further enthused us to
volatile times across Indian states across Indian States based on wind constantly step up our wind
have been increasing. potential, State Government policies and investments. The dedicated wind
It is encouraging that availability of land. In searching and division of our group has given us the
deciding on potential wind sites, we leverage to concentrate on wind at par
Shrenik Kumar N. Baldota the Government is observe that Government policies and with our mining businesses. The
Executive Director taking steps to promote tariffs are favourable in the states of revenue from wind power division of
MSPL Limited
renewable energy Gujarat and Rajasthan but the Plant Load the group as a whole was maintained
Factor (PLF) is low in these states. In the and in fact was higher by 8.5% at
states of Karnataka and Maharashtra we INR. 924.8 Million as against
A period of crisis can provide an find that the major challenges are in INR. 852.2 Million in the previous year
opportunity to bring about not just K. V. S. Subramanyam terms of land clearances by the Govt. mainly because of sale of certain
change, but a transformation, more GM - Power authorities. Thus we face constant Certified Emission Reduction (CER) for
rapidly and at lower costs than in a MSPL Limited challenges between securing good wind INR 47.8 Million. The wind division is
period of prosperity. Potential sites, conducive policies and procedures constantly engaged in constructive
acquisitions that were considered along with our desire to expand our wind discussions with manufacturers,
installations. service providers as well as policy
makers. Our experience in large wind
Our Group's 125 MW wind power project investments and constant follow up
A period of crisis can provide an opportunity to bring was one of the largest wind power with this sector have placed a
about not just change, but a transformation, more project to get registered with UNFCCC as responsibility on us to participate and
a CDM project way back in September
rapidly and at lower costs than in a period of prosperity 2006. The sale of tradable carbon credits
exchange our experience with other
corporates and interested wind
have established a supplementary developers as well as providing inputs
revenue stream for our wind division to policy makers at the national level.

9 10
 wind statistics MSPL Wind Energy Unit 2004-05 2005-06 2006-07 2007-08 2008-09

Opening capacity MW 20.9 81.85 111.6 111.6 127.8

Addition in capacity MW 60.95 29.75 0 16.2 0

Closing capacity MW 81.85 111.6 111.6 127.8 127.8

Units generated per MW KWHr 815,064 1,589,400 2,309,005 1,962,285 1,996,274

Lakh
Total units generated KWHr
667.13 1,773.77 2,576.85 2,507.8 2,551.23

Capex during the year INR 2,440 1,500 Nil 1,000

million

We believe that solar energy is a necessary wind installation till date

component of any 21st century energy portfolio.
We are evaluating the business benefits of foraying
State District Location Capacity (MW)
into thin film solar cell manufacturing
Maharashtra Satara Satara 1
We are seriously considering the technology holds tremendous
Dhule Dhule 20
diversification in our alternative energy promise for the solar power industry.
business. We believe that solar energy We have begun exploratory
is a necessary component of any 21st discussions with technology providers Karnataka Chitradurga Joimatti 11.25
century energy portfolio. At this point, for partnering in manufacture of solar Chitradurga GR Halli 27.10
we are evaluating the business cells. Davangere Jaikaligudda 21.25
benefits of foraying in to thin film solar
Apart from investing in solar energy Bellary Soggy 25
cell manufacturing. The existing solar
power market is dominated by segment in the short term, we will also Davangere Harihar 6
conventional silicon photovoltaics. consider other renewable energy
However, this technology has not been investments in the longer run. As a
Gujarat Kutch Surajbari 16.2
able to garner much of the market due start, we are in the process of setting
to high up-front costs, space up of two run of the river hydro power
plants in Karnataka in the forthcoming Total 127.8
constraints and other scaling
problems. The fundamental difference years.
between thin film technology and We hope that through these ventures,
conventional photovoltaics is the particularly in the field of alternative
amount of material needed. At this energy, we will play a role in changing Through diversification, we will play a role in changing
point, manufacturing costs, efficiency
and reliability of this technology are
the energy scenario in India in terms the energy scenario in India in terms of enabling
of enabling greater access to energy
the major barriers to overcome. and striving for a diverse energy mix
greater access to energy and striving for a
Nevertheless, we are convinced that and increasing self-sufficiency. diverse energy mix and increasing self-sufficiency

11 12
 overtly selective, mining firms that are
pushing able to provide value added products shipping business
the frontiers of have a clear competitive advantage.
Customers are inclined to demand At MSPL, our mining business has been
We followed a rigorous
business products with higher iron
concentration and superior physical
centred on the export of iron ore. We
have hitherto been dependent on selection process
contracting ships from external parties
properties.
for the movement of material. With the
for selection of our
pellet plant Iron ore pellets are hardened balls of benefit of having had many years of shipyard for construction
iron ore that have enhanced physical experience of handling overseas of our ships. In addition
Our in-depth understanding of the properties and are an ideal feedstock shipments of iron ore, logistics has to seeking the best
iron ore mining business had for blast furnaces and have the added evolved as an area of core competence.
advantage of being easy to store and
quality ships at
convinced us that we have the ability With prior experience and a view to
to differentiate our products and transport. Thus, the setting up of the synergising Group's diversification in competitive prices,
maintain a greater control over the pellet plant is a step in ensuring trading and manufacturing, the we also made sure that
product value chain which offers us a greater and more consistent input company decided to pursue shipping the shipyard was
distinct competitive advantage, product quality for our customers. business.
Along with the beneficiation
accredited by reputed
particularly in tough times. Over the
last few years, we have carried out the capabilities that we already posses, Keeping this in mind, we considered it certifying agencies
synergistic to set up our own shipping
fleet and wield greater control over the
logistical aspects of our business. The
We have the ability to differentiate our products and Baldota Group is also moving towards Suresh Kumar
maintain a greater control over the product value chain the areas of steel manufacturing, which GM - Shipping
which offers us a distinct competitive advantage, will involve significant use of ocean MSPL Limited
freight for import of fuel. Also there is
particularly in tough times a large amount of raw material
movement in and out of India. Each of
ground work for the forward integration the pellet manufacturing systems will these factors viz our experience in Diamond Pte Ltd (MDPL) as a wholly
of our iron ore mining business. The help guard against future price shocks owned step down subsidiary in
plan to set up a 1.2 MTPA pellet plant through clear product differentiation Singapore on 29th July 2008. Orders
at Koppal, Karnataka is under way. and improved quality control. have been placed for four Post-
Through this pellet plant, we will Panamax size dry bulk carriers
benefit from the moderate pellet Land procurement for the plant has (92,500 DWT) at reputed shipyards in
production capacity in India and thus been completed and clearances from China. The delivery of the first ship is
establish a presence in the the State Pollution Control Board expected towards the end of 2010 and
downstream iron and steel sector in (SPCB) have been obtained. We target the others in a staggered manner over
the Indian market. to commence production of pellets by a period till 2011. Singapore was
31st December, 2009. Once the pellet chosen for setting up these companies
Although the iron ore from our mine is plant is fully operational, we expect to due to the credibility that is attached
of a very high quality, there exist create direct employment opportunities to the country and the ease with which
variations across the mine strata. to over a thousand people. stock market listing is possible. The
Thus, there is a need for ore logistics, upcoming steel business's
These are the first in a number of major need for ocean freight and the commissioning of the first ship will
processing capabilities to ensure that mark a definitive step taken towards
customers are provided with a steps that MSPL and the Baldota Group tremendous exim movement of cargos
is taking to change or recast MSPL and from India has convinced us of the de-bottling the logistical hurdles
consistent quality of iron ore products. currently faced by us due to our
Particularly in difficult times, when its Group entities to ensure enhanced business logic, synergism and the
and long term value creation. prudence of having a presence in the dependence on third parties. This is a
pricing is tough and customers are thoroughly considered plan and forms
shipping business.
part of our strategy to develop
In the reporting period, MSPL competencies and facilities that
The 1.2 MTPA pellet plant coming at Koppal, Karnataka incorporated MSPL Maritime Pte Ltd strategically fit the MSPL's
is a step ahead in ensuring greater and more (MMPL) as a 100% subsidiary in transforming and expanding business
consistent input product quality for our customers Singapore on 7th May 2008 and MSPL profile.

13 14
 restructuring
Since its inception, MSPL has been a that are commensurate with business
family run business. The promoters development plans being Through this process,
have handled the day-to-day activities implemented. Each year, the plan and we have identified:
of running the company. As the ground requirements are assessed and
business grew, additions to our human actions taken in order to meet the
and physical infrastructure were made
on a need basis.
needs of the evolving business.

An important aspect of this process is

1 Non-value adding activities
and potential for greater
streamlining of processes
With the forward integration plans of that the promoters will move away from

2
MSPL, we soon realised that the hands on business operation and will Opportunities for
organisational structure needed to be assume a solely strategic role in improvement in inventory
strengthened to meet the demands of business thrust areas and orientation. management
business growth. The integrated steel Our business has Towards these, we are bringing in

3
plant as Aaress Iron & Steel Plant grown at a fast pace. highly experienced and qualified Potential for improved
(AISL) a company under Baldota professionals to take up business controls around asset
Flagship and MSPL Pellet Plant will
The organisational management and operational roles to management
require the additional manpower structure to support such handle the existing and emerging
growth was urgently
4
comparable to the employee strength dimensions of our business. Areas for increased IT
of MSPL. Further, the skills and needed. It was prudent utilisation
experience of the personnel needed
for us to assign
for managing and operating the new
responsibilities to operations
businesses will also be of a different
nature to the skills of our existing professional experts optimisation
employees. so that we can It is the belief of the MSPL administration; information technology
Clearly, we needed a robust and well concentrate on strategy management that in order to develop and; legal and secretarial compliance.
developed support structure to formation for and operate new aspects of our
We have already initiated to take steps
facilitate the evolution of MSPL that business development. business, it is necessary to review and
on each of these fronts and are setting
will have an increasing presence, optimise existing business systems
up better controls for improved process
directly or through its subsidiaries, in and processes. In any market
efficiency and functional alignment of
downstream minerals, logistics, and condition, process optimisation and
various business aspects. It is
diverse energy businesses. lean operations result in improved
Shrenik Kumar N. Baldota business performance and best
important to note that under the current
Executive Director economic circumstances, the conduct
prepare us for business changes and
MSPL Limited of this exercise has stood us in good
transformation.
stead to implement efficiency
Mindful of this, MSPL, in the reporting improvements that will make us more
period, engaged world renowned resilient to the adverse external
We are committed to We engaged reputed consultants to economic factors.
consultants to carry out a
the organisational help us better understand and chart
comprehensive process review that
restructuring process. our present and evolving human In hindsight and in light of the
included a two phase process audit of
resource and infrastructural abilities economic turmoil that has spread so
MSPL is committed to and needs. We embarked on a journey
its mining and wind energy
quickly the world over, the decision to
employing best in to create and execute a step-wise plan
businesses.
undertake an exercise as significant as
class business practices to reorganise and augment our human High resolution tests for process this was remarkably prescient; it has
and personnel resources to meet the needs of our efficiency and effectiveness; financial clearly given us a competitive
dynamic business. Through this reporting and; legal compliance were advantage.
process, areas of immediate concern carried out. All significant processes of
and improvement have been This process has been one part of the
MSPL were covered through this
identified. A time based plan has been larger plan to enhance and reshape
exercise, including mining and
Rahul Kumar N. Baldota devised that charts the measures – in processing; marketing and logistics;
MSPL and its subsidiary businesses in
Executive Director terms of augmenting of infrastructural the coming years. The exercise carried
wind energy; finance and accounts;
MSPL Limited abilities, human resource out will help gear us for the change in
procurement and inventory
requirements and support functions - MSPL that is being driven from within.
management; human resources;

15 16
 MSPL LIMITED
SUSTAINABILITY REPORT 08-09 4

ENVIRONMENTAL BOTTOMLINE
Management Approach 2

Environmental Stewardship 2
Waste Management 5
Air Emissions and its Management 7
Water Usage, Waste Water 9
and its Management
Noise Levels and its Management 12
Biodiversity Conservation 13
Energy & Emissions 16
Innovation- Progress in 18
Research & Development (R&D)
 management
approach
The ethos of managing and reducing legal compliance to environmental
the environmental impacts of our regulation is non-negotiable at MSPL;
operations is embedded in our our track record shows that our
business psyche. We have integrated standards commonly exceed
comprehensive management systems mandated requirements.
into our operations to monitor
environmental impacts. We
periodically conduct assessments of
our systems and performance
measures to ensure environmental
performance. Based on these
assessment reports we plan
intervention strategies to reduce water
and energy consumption and manage
overburdens and waste. Furthermore,

environmental
stewardship
International Council on Mining and Metals (ICMM)
Sustainable Development Framework Principle 06:
Seek continual improvement of our
environmental performance

United Nations Millennium Development - Goal 7

Ensure environmental sustainability

Environmental Management has been responsible and keen to safeguard the

the core of our sustainability initiatives environment for the sustenance of our
and an integral part of our mine and future generations. Our
management strategy and plan. Being environmental policy, is a constant
in a business that is directly dependant reminder of our commitment and
on natural resources, we are pledge to preserve the environment.

1 2
 We continuously strive to address and
mitigate negative impacts, in line with
global initiatives like Kyoto Protocol We have mechanised our mine and have adopted
and climate change. We are phasing state-of-the-art technology that has reduced manual
Awareness out of Ozone Depleting substance as intervention in our mining activities
mandated by the Montreal Protocol.
of environmental
responsibility We have implemented the ISO 14001
commenced along with Environmental Management System at
our VIOM operations. This demands
risk & impact
our operations. rigorous documentation and
Since inception of our implementation procedures to be in
activities we have place, triggering a chain of process
worked alongside for improvements.
mine site rehabilitation
Major operations
and have continued leading to significant
and improved our impacts from any
efforts over time as mining operation
the technology, include:
community expectations
and legislation Land use for mining and
infrastructure development
have advanced.
We have mechanised our mine and was to the tune of 3,86,651.2 Mt,
Displacement of persons have adopted state-of-the-art while 3,617 Nos. of relay and other
technology which reduces manual detonators were used.
top soil removal
Srikar S. Bhattbhatt intervention during mining activities.
Vice President - Corporate Affairs The down hill conveyor system has Through our systematic planning and
drilling and blasting extraction methods, impacts from our
& Company Secretary reduced the need for ore
MSPL Limited transportation from the mine area to mine operations on air, water, land and
overburden dumping
the loading station through road, thus biodiversity have been kept to a
reducing air pollution as well as diesel minimum. Apart from our in-house
mineral beneficiation
usage in trucks. Moreover our efforts to encourage planning,
We have been involved in large-scale preservation and regeneration of the
water usage dependence on road transportation
mining operations for generations; environment and ecology of mines, we
inevitably our operations have has further been reduced by switching
toxic / contaminated waste over to the rail mode. present an environment award each
environmental impacts. We proactively year to mines that are adjudged as the
water discharge
address aspects of our operations at The raw materials used during the best in their efforts to integrate
every stage and act to mitigate and mineral transportation excavation, extraction and ore environmental concerns in their mining
minimise such impacts. Our transportation processes are plans. We have systematic plans to
environmental management system is electricity, diesel, fuel oil, grease, and meet the closure requirements of all
focused on continually reviewing, explosives. operations when required, in line with
preventing, mitigating and [For the quantum of energy used kindly refer national and international
ameliorating adverse environmental section Energy and Emissions.] requirements such as ICMM, etc.
impacts. We comply with all stipulated
laws and believe that every little In terms of other materials, the total
action we take today would help us amount of fuel oil and grease used in
now and in the future. the current year at VIOM was around
56.13 KL and 3326 Kg respectively.
The quantum of explosives used
included 35,975 Kg of slurry
Conscious of the impacts, we proactively address explosives, around 1,29,300 Kg of
aspects of our operations at every stage and act to other explosives like Ammonium
Nitrate and 4,13,763 Kg of Liquid
mitigate and minimize impacts Oxygen explosive. Fuse material used

3 4
 waste management

The major sources of waste from mining different tree species. Also seeds are Pollution Control Board. The other
activities are that of overburden or strewn across dumps with higher wastes form our operations include
mine waste that is continually potential to foster germination. These cotton waste that are also collected
generated during mining. Our mining steps conserve soil erosion and and disposed appropriately.
operations are carried out in a mine prevent run off and siltation of valleys
area of 347.22 Ha, under reserve forest and nearby water bodies. We have also We provide safe storage and disposal
land that have been leased out to us by constructed bunds to arrest boulders of residual wastes and process
the government. The lease procured from rolling down. Active dumps are residues. We strictly adhere to the
includes an additional 3.56 Ha for also terraced immediately and Hazardous Wastes (Management and
approach roads to the mines, totaling plantations undertaken for quick Handling) Amendment Rules, 1989 of
the leased area to over 350.78 Ha. stabilisation. MoEF, India for the use, handling &
management and transport of all of our
of waste oil generated from VIOM was hazardous wastes. We keep a strict
around 1.25 KL. vigil on the implementation of correct
Our dumping of waste material in non ore bearing and safe procedures. This has resulted
All wastes are handled as per
areas is carried out as per approved mining plan. regulations and disposed to recyclers
in zero spillages of oil or chemicals in
our mine.
Old dump yards are terraced into different platforms authorised by Karnataka State
and are planted with tree species

Over the years, the top soil removed

from reef section has been brought
waste oil
down to reclaim the float ore mined
(VIOM)
area. This has transformed a stretch of
barren area to lush green land.
litres
Other wastes include scrap like metal, 1400
rubber and tyres. These are generated 1200
from activities including the use of 1000
equipment and machinery. These are 800
segregated and kept at specified 600
locations until they are responsibly 400
This necessitates our constant efforts disposed to government certified
200
to manage mine waste and also agents.
0
rehabilitate areas of forest land that 2006-07 2007-08 2008-09
Liquid wastes in the mine area include
can be productively used, before
waste/spent oil that is generated from
handing over to the forest department.
industrial operations using
We engage excavators to remove waste
mineral/synthetic oil as lubricant in
material and dumpers to transport the
hydraulic systems and other
waste to designated dumps. Our
dumping of waste material in non-ore
applications. This is the only category The waste oil from the mine site is collected in
of hazardous waste (as per KSPCB
bearing areas is carried out as per
norms), that we generate. The waste leak proof containers and stored in designated
approved mining plans.
oil from the mine site is collected in storage area. The quantum of waste oil generated
Old dump yards are terraced into leak proof containers and stored at a from VIOM was around 1.25 KL
different platforms and planted with designated storage area. The quantum

5 6
 air emissions
and its management
The annual average of SPM and RSPM were
3 3
Mining activity involves removing the found to be 278.60 µg/m and 65.86 µg/m and
top layer of soil to access ore and thus that of SO2 and NOx monitored was 31.87 µg/m3
disturbs the soil leading to air 3
pollution. and 36.52 µg/m respectively

undertaken on a rotational basis authorisation to operate. The annual

across monitoring locations in mines average concentration for SPM and
The sources of and EOUs. Monitoring is carried out 3
RSPM was 278.60 µg/m and 65.86
air pollution in a drilling, blasting,
using Central oreControl
Pollution screening,
Board segregation,
3 transportation and storage.
µg/m respectively. The annual average
mine area are from (CPCB) approved methodology and of SO2 emissions monitored was 31.87
following activities: equipment. The collected samples are 3
generally observed to be in high µg/m while NOx emissions stood at
concentrations in mine areas. SO2 and analysed at our laboratory. Monthly 36.52 µg/m .
3

NOx emissions emanate from the averages are tabulated and records
drilling maintained. These records are also Our initiatives in the mine area have
combustion of fuel, predominantly
from transportation activities in mining submitted to the CPCB/MoEF on a been to curtail pollution levels
blasting
areas. These are also monitored along yearly basis to procure the especially that of particulates. We
with particulates in the mine area and employ a wet drilling process and
ore screening
have been found to be below sprinkle water for dust suppression on
segregation, stipulated levels. The usage of Diesel a regular basis. Water tankers regularly
Generator (DG) sets for back-up power sprinkle water on all haul roads. For
transportation and in the mine area is also a source of air common roads used by other mines,
pollution; however all our DG sets have we have, mutual agreements to ensure
storage chimneys with stipulated heights so that water sprinkling is carried out on a
that pollutants can disperse high into sustained basis on every non paved
transportation corridor. Spraying of
water is also carried out near Hopper,

We have 9 ambient air quality monitoring

locations where the above pollutants are monitored
on an 8 hourly basis, twice a week covering all ambient air quality
four seasons in a year in mines and EOUs
(VIOM, EOU 1 & EOU 2) 2007 - 2008
2008 - 2009
Re-suspension of dust from unpaved the atmosphere. These generator sets CPCB Annual Avg. Std
mine haul roads due to transportation also have enclosures to absorb noise. µg/m3
360
activities (of heavy earth moving 350
equipment such as hydraulic Apart from complying with mandated 285.82 278.60
300
excavators, dumpers, loaders etc) is legislation of the Air (Prevention and
Control of Pollution) Act 1981 by the 250
the predominant source of Respirable
Suspended Particulate Matter (RSPM) Central Pollution Control Board, we 200
and Suspended Particulate Matter monitor air pollutants (for criteria 150
120
(SPM) pollution. pollutants) namely RSPM, SPM, SO2 100 65.86 57.35
and NOx. We have 9 ambient air
50
Respirable Particulates less than 10 quality monitoring locations where the
microns in size, causes adverse 0
above pollutants are monitored on an SPM RSPM
impacts on the respiratory system. 8 hourly basis, twice a week covering
Particulates (RSPM and SPM) are all four seasons in a year. This is

7 8
 water
The objective of beneficiation is to improve Water is consumption
predominantly
the iron ore grade from 58% to 64% iron with used for the (VIOM)
minimum of loses following purposes:
m3
14220
15000
loading points and dump yards for dust
suppression. Water is also sprayed
water usage, sprinkling for dust
suppression on haul roads
12500
12740

before and after blasting. waste water and 10000

Since all our mining equipment are as

its management reef workings and dump yard 7500
5000
per latest Euro II norms, emissions watering our plantations
from them are well within stipulated 2500
levels. Six wagon drills have been horticultural activities and 0
replaced by Top Hammer Hydraulic 2007-08 2008-09
for in-house consumption
(Tamroch Pentera 1100) drills which
drill 7-8 times faster at lower cost per
meter consuming lesser fuel and
thereby reducing air pollution. This
system also employs an in-built wet
drilling system & dust extraction
system which reduces air pollution
levels drastically.
Being close to the Tungabhadra River,
We also transport ores by covering there is no dearth of water in the
trucks with tarpaulins to avoid Hospet region. However our need for
spillages and fugitive dust emissions. water is comparatively low as we
employ a dry mining process. Only our
Export Oriented Unit (EOU-II) uses
water for beneficiation process. Ores
from our other mines including VIOM
that require beneficiation are
processed at this plant. The objective
of beneficiation is to enhance the iron
ore grade from 58% to 64% iron with The total amount of water used in the negligible. Around 60,000 Tonnes of
minimum loses. The ratio of ore to current year for the EOU-II alone is tailings are collected from the settling
water used is 1:1 in our beneficiation nearly 54417.16 m3. Water usage at tank annually and stored for future
plant. For maintaining this ratio, only the EOU-II (beneficiation plant) is use, as the tailings have around 50%
20% of fresh water is added along with calculated through usage, that is of iron content.
80% of water that has been through calculations of ore processed
re-circulated in the system. to water required (1:1 ratio). Efforts to The water consumption at VIOM in the
have systems which monitor actual current year was 12740 m3 as opposed
Fresh water requirement for 14220 m3 in the last year. The total
consumption of water at the EOU-II
beneficiation is sourced from five bore water consumed this year was
plant are being planned. The resultant
wells that are situated in and around 67157.16 m3 (inclusive of VIOM and
tailings from the beneficiation process
our EOU-II plant. Water consumed at EOUs). In the previous report water
are settled in a settling pond, thus
our mine is procured from outside. consumption of EOU-II was excluded.
waste water from this process is

Around 60,000 Tonnes of tailings are collected from The bunds are constructed with sufficient height and
the settling tank annually and is stored for future use, length to prevent storm water from flowing down the
as the tailings have around 50% of iron content hills from the mining areas
9

10
 Also in our efforts to address soil off to check dams so that silt deposits
erosion and water pollution, we have are collected and removed during
constructed gully plugs and check summers. Collected sediments are
bunds across the streams flowing segregated and useful products are
through the mine lease area, to contain recycled and used for strengthening
run off. So far we have 54 gully plugs bunds to level the low-lying areas.
and 25 check bunds. During rainy season water from check
bunds is collected both from upstream
The philosophy followed by the and downstream and analysed for
company is to see that the entire run physical and chemical parameters.
off is contained within the lease area
and only clear water is discharged. The
bunds are constructed with sufficient
height and length to prevent storm
noise levels and
water from flowing down the hills from its management
the mining areas. Moreover, retaining
walls are constructed around mine
dumps. The height and width of these
retaining walls is increased as the
dump progresses. We have also carried
Export Oriented Unit - II with
out desilting & increasing the height of
Wet Beneficiation process for Ore Fines the existing earthen bunds /gully plugs
in the mine lease area. Such rain water
harvesting measures increase ground
EOU-II, located near Ingaligi The slurry again is fed to the water level and also help plants to
village of Hospet taluka has two classifier where we get two end retain the moisture. The water
plants - a dry and a wet plant. The products - 1. Classifier Sand and accumulated in these Noise levels in our mine area are
wet plant, which utilises water for 2. Classifier Overflow. earthen bunds / gully plugs are being caused by blasting, drilling and
the beneficiation process has a The overflow is further fed to utilised for suppressing the dust & movement of trucks. Noise levels are
capacity of 250 Tonnes per hour. Hydro-cyclones to recover watering the plants in the mine regularly monitored at 8 identified noise
Here the raw material (-10mm valuable product and the tailing premises . These measures have also generating locations. The levels
fines) of about 58 to 60% Fe grade is disposed from thickener reduced the purchase of water from monitored were observed to be within
fines is received from different allowing the material to settle in external sources. the stipulated KSPCB standards.
mines and line blended and ponds.
beneficiated to get products as We have provided garland drains to To protect workers from auditory
per customers’ satisfaction. The products are then routed to collect surface run off from the impacts due to high and continuous
respective stocks through belt over-burden dumps and other dumps noise levels, key personnel who work
The material is fed to the plant conveyors to be shited to the during monsoon and to divert the run continuously in noisy environments are
hopper with the help of machines railway yard when required. mandated to use Personal Protective
and trucks, it is subjected to Equipment (PPE) such as mufflers.
screening with spraying water Water for this plant is supplied
Noise levels from DG sets are also
where two products are from bore wells, while recycled
minimised with the help of silencers
produced - Aggregate and 2-1mm water is routed from the ponds to
and mufflers. For reduction of noise
Fraction Slurry. the system.
levels especially during blasting we
employ slurry explosives and core delay
devices that minimise noise pollution
and also reduce ground vibration.
Vibration is inevitable during the
blasting process, yet we carry out
blasting in a way that it minimises
disturbance to surrounding areas. We
have adopted, controlled and safe
blasting practices which not only reduce
ground vibration but also give good
fragmentation.

11 12
 International Council on Mining and Metals (ICMM) An average survival rate of 85% is ensured of our
Sustainable Development Framework Principle 07: planted samplings, through our rigorous efforts of
Contribute to conservation of watering and safeguarding methods.
biodiversity and integrated
approaches to land use planning activities towards afforestation, habitat
development, soil management,
moisture conservation and fauna
protection. Our plans are to plant
20,000 saplings per annum. MSPL has
biodiversity conservation pledged to continue its work in
sustaining the environment not only
VIOM is located in Ramanamalai hill through afforestation and related
range of Gunda Forest near Vyasankere activities but also through continued
village. Since our mine is located in a development of scientific pollution
forest area, we realise the need to control practices and involvement in all
conserve the local ecosystem and environment related issues.
perpetuate the exhaustive flora and
In an effort to create awareness
fauna of the region.
towards environment and biodiversity
An authentication study on the list of conservation among children, we have
species found in the region was organised tree plantation drives and
conducted in 2005 by conducting a have distributed tree saplings to 650
ecology and the biodiversity of the
Participative Research Assessment school children of Hospet, Kariganur,
region and the tree saplings are
(PRA) exercise. This exercise recorded Ingaligi, Hanumanahalli and Danapur
sourced from the local forest
responses on the flora and fauna that villages.
department.
were sighted in and around our mining
area by the localites. Our rigorous watering efforts and

Over the years, we have undertaken

safeguarding methods have ensured We have year wise planned activities
consistent afforestation activities.
an average survival rate of 85% of our towards afforestation, habitat development,
planted samplings. Some of the
These activities began in 1976 and species of trees that we have planted management of soil, moisture conservation and
since then we have being planting over include Gulmohar, Neem, Honge, also for fauna protection measures.
1.7 million trees, across an area of Agaves and Seemthangadi. In line with
240 Ha both within and outside the principles like ICMM, we contribute to
lease area. Our plantations are conservation of biodiversity and
carefully matched to plant native integrated approaches to land use
species of trees to safeguard the planning. These have resulted in
preserving the ecosystem of the
region.

Concerned with the health of our

neighbouring communities, we have
also planted and distributed some
fruit yielding and flower bearing
species to attract birds and provide
shelter and food for the fauna in the
area. As a part of our mine
management plan we have year wise

13 14
 our contribution to energy & emissions
SWaN and to nature
conservation Also as a part of our afforestation Energy is an important environmental
SWaN has undertaken various program, we have gradually planted indicator. Our prime energy
conservation awareness and action trees and also encouraged plantations consumption is in our mining
programs in and around Hospet. along every house and is also operations and office, where we use
planning kitchen gardens in school electricity sourced form the southern
compounds. regional grid. Other energy sources are
campaign for that of diesel for our machinery and for
ritual hunting We have distributed around 60 Kg our diesel generator sets.
seeds for kitchen gardens through our
SWaN representatives submitted a SHGs and 5,500 fruit plants of five The total electricity consumption from
memorandum to the Honorable varieties to 1,100 families in the the grid in the current year stood at
Deputy Commissioner of Bellary to adopted villages. We also provide 2,906,419 kWh. This includes
issue a notice against Ritual Hunting fire wood to workers who live in the electricity consumption at the mines,
during Ugadi festival. They also nearby mining camps for their EOUs and the corporate office. The total
requested the government officials to domestic use, to minimise diesel consumption inclusive of our
We have also financially supported patrol the entire forest areas of Hospet unwarranted cutting of trees. machinery and Diesel Generator sets at
the Society for Wildlife and Nature taluka during the Ugadi festival. the mine and EOUs alone in the current
(SWaN). The society has formed year was 3,037.44 KL.
nature clubs and conducts various Pamphlets and posters were
distributed among the villagers to Thus the direct Greenhouse Gas (GHG)
conservation awareness and action
create awareness about the emissions by the use of diesel fuel
programs among youth on flora and
conservation of wild animals and amounts to 2,066.18 Tonnes of CO2
fauna, especially endangered animal
eliminate the brutal practice of Ritual equivalent and indirect emissions from
species and species of native birds,
Hunting. the use/purchase of electricity amounts
thus inculcating the importance of
to 2,470.45 Tonnes of CO2. The total
preserving the environment, among
from these amounts to 4,536.63
the young minds.
securing shelter for Tonnes of CO2 compared to 3,734
The region is home to a range of migratory birds Tonnes of CO2 in the previous year.
wild animals and it is imperative for
us to conserve and safeguard the The villagers have a practice of sowing
fauna of the region. Inspired by the crop seeds near the bank of T.B. Dam
huge success last year, we continued which hinders the nests of migratory
to propagate the campaign against birds. SWaN has appointed caretakers
ritual hunting during the annual to keep a watch on the lagoons and
We launched an infotainment program Renewable energy
along with All India Radio (AIR) - and energy efficiency
festival of Ugadi. also spread awareness. Awareness
Hospet to create environmental
program included protecting nests of
awareness among school children a
go hand in hand
about 10 species of birds at the and we consider these
few years back. This program being
backwaters of T.B. Dam.
very popular as ‘MSPL's Hasire Usiru’, “our twin pillars” of
we continue to assist this program that the policies regarding
protecting crocodiles propagates environmental awareness risk &energy
sustainable impact
among children across the taluka.
usage and dependence
SWaN has identified potential as well as addressing
breeding grounds for fresh water
crocodiles and planning to stop illegal
climate change
sand mining from the river to protect
eggs of crocodiles and turtles.

Srikar S. Bhattbhatt
Vice President - Corporate Affairs
Through its consistent efforts and with the help & Company Secretary
of the Deputy Commissioner, SWaN has banned MSPL Limited
ritual hunting of wild animals by localites.

15 16
 electricity
energy office, we appointed an independent
consumption
conservation consultant who conducted an energy
(VIOM, EOU 1, EOU2 & Corporate Office)
audit study and have submitted a
efforts report to us with recommendations to KWh
reduce energy usage and thus reduce 2906419
3000000
costs further. We are in a stage of
considering these recommendations. 2500000
Based on the analysis, we would be 2000000
taking up further conservation 1664705
measures. 1500000

1000000

solar 500000

reef panel and 0

its usage 2007-08 2008-09

To meet our energy demands apart

In an effort to conserve energy as well from our dependence on grid innovation - progress The total R&D expenditure as a
electricity and diesel generators, we
as costs, we have taken a number of
had strategically decided to install
in research & percentage of total turnover of MSPL
measures across our operations. With has been 0.005%. The R&D
regards to our corporate office, over completely renewable and pollution development (R&D) department has identified low grade
the years we have taken steps to cut free energy from solar cells. We mineral and associated rocks like,
energy consumption and measures installed five solar light sets of 55 In the present competitive business Banded Hematite Quartzite, Banded
such as switching off lights during non watts. This initiative continues to world changes are constant both in Magnetite Quartzite, Banded Iron ore
office hours viz lunch breaks, reducing provide power in our mining production and quality to meet formation, Shale, Phylite and Gabbro.
the air conditioning load etc. operations. The panel with exposure human needs acceptability. Some Beneficiation tests are carried to
to around 12 hours to solar energy advanced mineral beneficiation upgrade these ore to add to resource.
Also to take decisive action towards produces around 3.3 kWh of power techniques are essential to
energy reduction in our corporate per day. congregate the requirements of In the endeavour of zero waste mining
industries and support environment. the key challenges is to productively
MSPL believes in sustainable process high volumes of low grade
development which is interpreted as mineral aggregate, achieve savings in
diesel consumption “working in harmony with nature”. waste disposal cost, resource
generation, resource conservation,
(VIOM, EOU 1 & EOU2) reduction of environmental stress
likely in waste disposal.
KL Specific areas in
4838 which R&D was To study the beneficiation technique of
5000
4500 carried out by low grade iron ore, MSPL team visited
4000 the company: Tilden Mines of USA and Brazil during
3500 April 2008. A representative sample of
3037.44
3000 BHQ is collected from Vyasankere Iron
2500 Ore Mines and has been sent to MCC
2000 To conserve / utilise low
grade ores China for continuous Bench Scale Test.
1500
1000 The tests carried out would help us in
500 Towards the company goal of using ore waste effectively with the
0 zero waste mining least amount to be wasted. In addition
2007-08 2008-09 to the zero waste management, R&D
Processing & upgradation of also gives inputs on process
Banded Hematite Quartzite improvements, increasing the
(BHQ) efficiency and performance of the
equipment used in production.

17 18
 5

SOCIAL BOTTOMLINE
Management Approach 2

People Development 2

Community Development 11

Village Adoption 14

Women's Welfare & Empowerment 15

Educational Impetus 19

Support for Healthcare 23

 management people
approach development
community nurturing employees
We believe in following the highest
standards of corporate citizenship and
have aligned our community plans
with the United Nations' Millennium
Development Goals and the Prime
Minister's Social Charter. Our approach
is to have a positive impact on the
society in the form of incremental
growth in the local economy, thus
entwined with our business
imperatives. Towards this, need
assessment exercises are carried out
to evaluate community development
imperatives. Contributions to the The bulk of MSPL's workforce is
society too form a key component of involved in mining operations and at
our planned expenditures. the corporate office. Our wind farms
are fully operated and maintained by
companies of repute to whom we have
employees outsourced the operation and
Employee safety, satisfaction and maintenance (O&M). Hence the
welfare are at the heart of our business. number of our employees in the wind
We practise non-discrimination and business is small.
provide equal opportunities both in
recruitment and employee performance
assessment processes and associated
remunerations, thus managing risks
of attrition. We engage with our
employees regularly and have
Our fair business
mechanisms to assess career practices have also
satisfaction and plan career helped establish
enhancement. MSPL as an employer
riskfor&the
of choice impact
people
human rights in the region. Members
We believe in the fundamental of the community
principle of preserving human dignity
and respect of an individual's rights
where we operate,
and freedom. Our Code of Conduct and consider MSPL a
the Human Rights Policy that is being dream company
progressively deployed provide to work with.
detailed guidelines for safeguarding
human rights. If any, incidents of
violation of human rights will be
investigated in detail and appropriate Nabaghana Pany
punitive measure will be taken. All Vice President - HR
employees reserve the right to directly MSPL Limited
convey their grievances to the
Chairman and Managing Director.

1 2
 MSPL's iron ore mine is located in the
mineral rich Hospet region of Bellary employee strength
district. Due to the presence of several
mines in the region, there has Grade Units 2006-07 2007-08 2008-09
traditionally been an intense
competition for workers. We employ a Director Nos. 3 3 3
large number of people from the local
communities. In a competitive Manager Nos. 25(8) 29(1) 36(7)
environment, where workers are
sought out by various mining Officer Nos. 117(14) 124(15) 133(11)
companies - the respect, stability and
potential for development that we offer Staff Nos. 242(21) 270(35) 307(16)
those who work with us, has made us a
ideal employer in the region.
Our people are confident Worker Nos. 792(69) 1284(141) 1220(18)
about their jobs; we have
The downturn in the global mining made every effort to Total Nos. 1179 1710 1699
industry has created unemployment
among a number of mine workers,
create a healthy work
particularly daily wage workers and risk &that
environment impact Numbers indicated in brackets pertain to probationary employees of MSPL having joined within 6 months
prior to March 31 2009, and the total is not inclusive of these. The above figures are for MSPL Limited
illegal miners. At MSPL, we have made provides our employees a (inclusive of VIOM, EOU-I, EOU-II and Corporate Office)
a conscious effort to ensure that we sense of security. In fact,
retain all those who work with us. No
employee has been relieved of his or
we are scouting for best International Council on Mining and Metals
her duties. In fact, our commitment to available talent and Sustainable Development Framework Principle 03:
talent management
recruit full time employees, as
opposed to contract workers, has remains a major activity Uphold fundamental human rights
given our people a sense of security.
for the Human Resources and respect cultures, customs and
This sense of comfort goes a long way
towards ensuring that our people are Department at values in dealings with employees
focused on discharging their duties
and that MSPL will take care of them
MSPL Limited.
and others who are affected by our
even under the most severe
circumstances. We have made efforts
activities
Nabaghana Pany
to retain a small number of contract Vice President - HR
workers who have been with us for a MSPL Limited
long time. United Nations Millennium Development - Goal 3
Promote gender equality and
empower women
total employee strength
At MSPL, we understand that it is in mining operations are not typically
1710 1699 our best interests to employ the best attractive to women and secondly
people for a given function regardless women have been historically kept
Our employee strength remained stable
with a small decrease of 11 personnel of their age, gender, religion, race or away from employment opportunities,
at the year end, compared to previous any other discriminatory parameter. thereby impacting their professional
year end. Employee strength increased We make employment and promotion development in India. Giving the girl
across Manager, Officer and Staff decisions solely on the basis of merit child access to education is the first
categories but decreased in the worker and performance appraisals are step towards providing women the
category. In addition to the employees carried out for all post-probation basic skills to be eligible for
1179 on our rolls, 16 experts have been employees. employment.
contracted as consultants. We also have [For a comprehensive understanding of our
77 contract workers at our mines However, as reported in the previous efforts in women's empowerment, please refer
operations. year, majority of our employees are to “Women's Empowerment” in the People
male due to two principal factors – Development section on page 15]

2006-07 2007-08 2008-09

3 4
 When compared to last year, the number of male employees decreased by 0.37%, ensure that we emerge best equipped We used a balanced development
while female employees increased by the same percentage. In terms of age, majority at the end of the crisis, we have approach in which, apart from the
of our employees are under the age group of 50 years. There is a healthy distribution embarked on an extensive training regular technical, operational and
of workforce between the sub-30 and 30-50 age groups. drive across the workforce. People certifications related training that was
have received training in technical provided to our employees, we
skills development, operational engaged an external expert for
workforce diversity & equal opportunity refresher courses and soft skills & providing personality development
category lifestyle management. There have and leadership skills, which included
2008-09
been conscious and concerted efforts goal setting, change management,
Grade <30 30-50 >50 Total developing human relations, stress
towards imparting training to
M F M F M F M F employees at mine locations, management, time management and
particularly in sub-managerial development of effective habits.
Director 0 0 2 0 1 0 3 0 categories.

Manager 0 0 21 0 15 0 36 0

Officer 26 5 77 4 20 1 123 10

Staff 100 16 181 4 6 0 287 20 male female

1400
Worker 592 1 598 6 23 0 1213 7
1200
genderwise break-up 1213
of employees
Total 718 22 879 14 65 1 1662 37 1000

800
The above figures are for MSPL Limited (inclusive of VIOM, EOU-I, EOU-II and Corporate Office)
600

400
287
200
Employee Turnover 3 0 36 0
123
10 20 7
0
Directors Managers Officers Staff Workers
level-wise break-up Although the number of employees
of employees leaving the firm was 9.76% lower than employee categories
Directors 3 the previous year, the rate of turnover
at MSPL continued to remain high. The
Managers 36
bulk of employees leaving the
Officers 133
company were from the Worker and employee turnover
Staff 307 Staff grade, but the percentage 2007 - 2008
Workers 1220 turnover was most significant among 2008 - 2009
33.90
the Officer and Manager grades. The 35
significant increase in turnover rate as
30
compared to the previous year is a
matter of serious concern since these 25 22.22
gender-wise break-up employees are highly skilled and
of employees 20 17.29 17.40
% turnover

experienced personnel. In the other 13.80 13.03

employee categories, the turnover rate 15
Females 37
Males 1662
has either improved from the previous 10 7.79 7.87
0.00 0.00
year or remained unchanged.
5
Moreover, the sub-50 age group
continues to witness the highest 0
absolute levels of turnover.
Directors Managers Officers Staff Workers
We are convinced that the long term
fundamentals of our business are employee categories
robust. As part of our strategy to
The above figures are for MSPL Limited (inclusive of VIOM, EOU 1 , EOU 2 and Corportae Office

5 6
 In an effort to relieve employee stress formal training camps also promoted
and inculcate discipline of healthy cordial employee relations increased
living, we organised a yoga camp (refer interaction with employees at all
page 28). A workshop was also levels.
conducted by the Art of Living
Foundation wherein participants were Employee training was a major activity The soft-skills training
in the reporting period. Over 16,000
exposed to the tools and techniques
hours of training was imparted to
provided to our mine
that enabled them to de-stress and
employees across the firm. Extensive workers over the years
energise. These programs apart from
have been very
beneficial. It will help Safety has been built
training and workers in their into the culture across
development training hours our operations. People
training hours/employee
personal lives and
family development have been trained and
9000 45 as well as with job re-trained over time.
8000
8319 27.10
40 responsibilities and When senior officials
behaviour as they come visit the mines, safety
7000 35

training hours per employee

through the ranks is among the first topics
6000 30
discussed.
training hours

at MSPL.
5000 25
4062 30.54 3860 3.16
4000 20

3000 15 Meda Venkataiah Meda Venkataiah

2000
156 4.33
10 Executive Director - Mines Executive Director - Mines
MSPL Limited MSPL Limited
1000 5

0 0
Managers Officers Staff Workers

employee categories
International Council on Mining and Metals
Sustainable Development Framework Principle 05:
training was imparted to mine staff who
Seek continual improvement of our
have come up through the system and
have shown the potential to assume
health and safety performance
greater roles with more responsibilities.
Joining MSPL was like
a dream come true. We are convinced that these training workforce safety Our mining operations have a safety
committee that looks into all aspects
The last 14 years of sessions will benefit our people in their
personal and professional lives. Our and health of workplace safety. At our wind farms,
service have been investments in the development of our third party experts that look after
a wonderful experience. people will also equip MSPL to excel in a Safety is a priority at MSPL. We ensure operations ensure safety performance
positive economic scenario and build that all necessary measures have been and monitoring.
resilience in a downcast economic set in place for the safety of all people
within our premises and those on the We are proud to have maintained an
scenario. impeccable safety record with no
periphery of our operational areas.
Uma C. S. Though we do not have a written policy Safety trainings and refresher courses reportable injuries or fatalities in the
Secretary to CMD to ensure maximum contribution from are imparted to all associated reporting period.
MSPL Limited local suppliers, we have a long-standing personnel across our mining, mineral This year, we took initial steps in
relationship with several local suppliers. processing and wind energy counseling our employees on the risks
operations. of certain diseases. We focussed on

7 8
 Gavisiddapa MSPL EOU1
Year of joining: 1977
We are proud to have been able to maintain an
impeccable safety record with no reportable injuries I started as a loading labourer. Within 2-3 months, I was presented with an
opportunity to work as a driller helper and blaster helper. After close to 3 years
or fatalities in the reporting period of on the job training I received while assisting my seniors, my senior colleagues
encouraged me to prepare and appear for the blaster examination. On clearing
raising awareness and counseling on the examination, I was promoted to the rank of blaster. On account of my
HIV/AIDS. The National AIDS Control performance, I was offered a position of a Mine Mate in 1981. Between 1981
Organisation's (NACO) Red Ribbon and 1984, I gained a tremendous amount of practical experience on mine
Express (RRE) that ran through India in operations. Vocational training was imparted at the training centre and hands
on inputs were continuously provided by senior mines officers. By 1992, after
2008 visited Hospet in August. We After completing my having appeared for the mines foreman examination, I was promoted as mines
seized this excellent opportunity to degree, I joined MSPL foreman. Today, I work as a Senior Mines foreman at VIOM's Export Oriented
increase awareness among our
employees on HIV/AIDS. MSPL in September, 1981. Unit-I. The support that I received from my mentors at the company in the form of
training, guidance, financial assistance for examinations and the stability that is
employees were encouraged to visit My first few months associated with a regular job, has allowed me to achieve what I have today. In
the Red Ribbon Express at Hospet with the firm - the 1977, over thirty years ago, when I was recruited as a loading labourer, never
Railway station. satisfaction that I drew had I imagined that I would become a Senior Foreman.

In the coming years, we will take up from working with a

more disease awareness, prevention business that conducts
and counseling activities for our itself in a fair manner
employees as well as the communities Ramappa MSPL EOU1
within which we operate. - and the engagement Year of joining: 1981
with the proprietors
MSPL has evolved in to an My education up to the 7th standard, stood in the way of me getting a
organisation which encourages
convinced me that this respectable job that could help me build a good career. MSPL had a reputation
employees to achieve their full would be my first and as a good employer that afforded people the opportunity to develop a career. I
potential, whilst being reassured of last employment. sought employment with them and joined as a helper in 1981. After gaining
some experience and having participated in a number of trainings, my
supervisors entrusted me with the responsibility of being a compressor operator
in 1988. Since then, there has been no looking back. I have gone from strength
to strength and have been promoted thrice. Right now I am working as a senior
S. Mruthyunjaya operator. The encouragement of my supervisors and the support that I received
AGM - Administration for training materials and guidance at MSPL has motivated me to achieve my
I have had two stints MSPL Limited potential. This is where I want to be.
with MSPL. The reason
for my second stint is
the personal connection job security and stability through
employment opportunities for their R V Hanumantha MSPL VIOM
and the bond that I had families. Year of joining: 1985
developed with the
At MSPL, we believe in the right of
company, its personnel I joined MSPL as a driller helper in 1985. Soon, I realised that MSPL rewarded
every employee to fully develop to
and the people who her/his full potential. Moreover,
employees who showed promise and interest in career development. With this in
mind and through encouragement from my seniors and peers, I worked hard on
run it. I feel like a part sincere efforts are made to ensure that certifications. Today, I've moved up the ranks from being a helper, to a drilling
of the family. workers, doing even the most basic of operator, then to a senior driller and am now a driller operator. The culture at
jobs are given opportunities through MSPL to reward its employees for strong performance is also a motivational
mentoring and training to develop factor. Among the awards and recognitions that I've received through my time
within the organisation. Due to this with MSPL, I am most proud of the first prize that I received for safe drilling
Manoj Kumar Agrawal culture, we are proud that many procedures. Now, it is up to people like me who have benefitted from MSPL's
Vice President - Material employees have stayed with us for commitment to preserve this culture and carry on the tradition. This career has
MSPL Limited decades and have developed given my family a sense of stability. For someone with only a primary education,
remarkable careers. I am truly lucky to have been given an early opportunity with MSPL. Since then,
there has been no looking back.

9 10
 International Council on Mining and Metals living. At the national level, human
development indices and indicators
be nationally and internationally
coherent. We have consciously sought
Sustainable Development Framework Principle 09: across States have been computed. to align our activities with national and
Contribute to the social, economic As per the HDI, Bellary is one of the
international goals and standards.
These include Prime Minister's 10
and institutional development of the most backward districts in Karnataka Point Social Charter for Indian
communities
State and is at 17th place among the corporate houses, the United Nations'
earlier configuration of 20 districts. Its Millennium Development Goals
HDI is 0.42 as compared to State HDI (UN MDGs), ICMM and its Indian
of 0.47. Our presence in the Bellary
community supporting a wide range of socio-
economic, educational and health
region makes our responsibility
counter part yet to be formalised,
namely Federation of Indian Mining
towards the community even more
development initiatives. The Baldota Group of
companies has long recognised the
greater.
Industries (FIMI) principles, Indian
Mining Initiatives. We have also
need to earn community support and Through our empowered sustainability adhered to and have sought funding
We consistently work towards
ensure sound environmental committee that looks into our social from International Finance Corporation
integrating Corporate Social
performance for business viability. initiatives we realised that our (IFC) against its stringent Environment,
Responsibility (CSR) into the values,
programs should not only address the Health & Safety Standard(s).
culture, operations and business The United Nations Development
decisions at all levels of the needs of the local communities but
Programme's (UNDP) Human
organisation. We believe that Development Index (HDI) – is a
community service is an integral part of
our business responsibilities. At MSPL
summary composite index that The Baldota Group has long recognised the need to
measures a country's average earn community support and ensure sound
our constant endeavour has been to achievements in three basic aspects
bring a positive change to the of human development: health, environmental performance for business viability
underprivileged communities by knowledge, and a decent standard of

Urban and
Health & Sanitation Rural Infrastructure Educational Impetus Women Empowerment
Assistance towards up Providing / improving Teachers training SHG formation
gradation of hospital road ways
facilities Distribution of educational Addressing woman and
Construction of Public material health
Creation of a blood bank facilities - bus shelters and
walk over bridge Upgradation of school Provisions of livelihood
Assistance towards facilities opportunities
heaIthcare and healthcare Construction of
costs recreational facilities for Recognising / awarding Awareness programs on
employees and children talent and merit health and sanitation
Addressing material and
child health Construction of schools and Assistance towards sports Educational assistance
educational institutions and entertainment facilities and motivation for girl
Health awareness students
campaigns Provision of drinking water Educational assistance

11 12
 The absence of a quality green
recreational space in the city of Hospet
village adoption Through these Sabha meetings we
were able to take on focal issues for
spurred us to build a children's park, action namely health, hygiene,
last year, that meets needs in terms of In an effort to address every need of livelihood generation, sports,
My vision is to provide a clean, green, safe and fun place to village communities around us, we children's education and providing
urban facilities to play. Some of our employees come have thus far adopted ten villages that basic village amenities.
rural areas. from across the length and breadth of are in close proximity to our mines and
the country and have made Hospet wind farms.
their home. To help them integrate Last year we adopted the villages of
better in their new environment, we Danapur, Galemmanagudi, Ingaligi,
have constructed a company club that
Narendrakumar A. Baldota Hanumanahalli and Kanavihally. This Any need that is
takes care of their recreational and
Chairman & Managing Director year five additional villages namely
MSPL Limited & Baldota Group entertainment needs. Jaisingapura, Basapura, Halavarthi,
brought to our notice
We realise that the need for education Hosahalli, and Shankarnagar in and if we see our
is pivotal for the growth of a society. Karnataka have been adopted. Through contribution towards it
Our partnership with neighbouring Towards this we have plans to establish a demographic study in the adopted as necessary, we will
villages, the Gram Sabha village
communities dates back to 1961. a school in Hospet. During the year, we do it.
initiated a study conducted by the representatives along with the village
Over the years we have contributed
Kuvempu University to look into the community decide the priority areas for
towards community and village
existing educational system and improvement. On an ongoing basis the
development as we firmly believe that
facilities available in Hospet and near Gram Sabha meets once in every six
economic development begins with Narendrakumar A. Baldota
by Koppal Districts, so that a rational months or in case of emergencies, to
community development. Chairman & Managing Director
decision can be taken by us to build a deliberate on issues of development
and also to take stock of ongoing
MSPL Limited & Baldota Group
In spite of our long-standing school in the forthcoming years in
relationship with communities around Hospet. activities.
us through philanthropic
contributions, we wanted our
contributions to be more sustained. This year we have adopted additional five villages -
We also wanted to focus on areas
where communities felt a need, so
Jaisingapura, Basapura, Halavarthi, Hosahalli, and
that the impacts of our contributions Most companies in the Shankarnagar in Karnataka
are maximised and sustainability of mining business do
our initiatives is also taken care off.
some kind of social
Our initiatives have been to improve activities, but at MSPL
facilities in and around Hospet town
for the betterment of communities as
we have a systematic Greening our villages
well as development of the villages
way of planning and We have distributed around 60 Kg. kitchen
around us. For the betterment of the addressing social needs. garden seeds for vegetables and 5,500 fruit
town, we have realised the importance plants to 1,075 families in our adopted
villages through women SHG members. This
of development and cleanliness, and
has been done to not only make the villages
assisted in making arrangements for
certain public facilities. We do have
H. K. Ramesh greener but address malnutrition among
AGM - CSR women and children as these plants bear
assisted in construction of bus fruits like Sapota, Lemon, Guava, and papaya
MSPL Limited
shelters, walk over bridge for a college regularly. These fruits would help in
etc., to improve basic facilities. improving family health. We have planted
540 saplings along the roads in Basapura,
Hanumanahalli and Danapur villages.
With our long-standing relationship with communities
around us through philanthropic contributions,
we wanted our contributions to be sustained

13 14
 United Nations Millennium Development - Goal 3 We have formed 45 women SHGs that cover a
Promote gender equality and total of 757 families in 9 villages with the assistance
empower women of our CSR department

intervention which is an effective women of the village to come together,

women's welfare & are then burdened by stringent
domestic and financial responsibilities.
strategy for poverty alleviation,
human development and social
discuss, share information and
motivate each other on vital issues
empowerment Additionally, only 54 percent of Indian
women are literate as compared to 76
empowerment. In the previous year such as women and child health,
we had contributed to 35 SHGs and in family planning, AIDS/HIV, pregnancy,
Gender discrimination continues to be percent of men. Women receive little the current year 10 new SHGs have pre & post natal care, education,
an enormous problem within the schooling and face barriers in terms of been included. Thus in all we have sanitation, alcoholism among men,
Indian society. This drastically affects addressing issues of education, formed 45 women SHGs that cover a and family financial issues.
women's health, financial status, financial dependency and also in
exercising their basic rights. These Our community workers also educate
education, and involvement on all
issues are further aggravated among and bring about awareness on these
fronts of decision making. Women are
poor and rural women. issues and assist SHGs in taking
commonly married very young,
informed decisions on vital issues that
become mothers at an early age, and
Problems of women arise primarily out have changed their lives. Our SHG
of the lack of access to resources at initiative by its grass-roots and
both the household and the village participatory implementation methods
level. Women's development has to go has fuelled our success across our
Is it really possible for beyond the economic realm and we community development
wanted to place emphasis on issues interventions.
SHG members whose
relating to equality, autonomy and self-
members are largely reliance at the individual level and on total of 757 families in 9 villages with
illiterate and can at the solidarity of the community (of women) the assistance of our CSR department.
27 SHGs out of the total 45 have been
most write only their at the Group level. To address issues of
linked with a bank and were able to
name and read empowerment and to bring in financial
mobilise a seed fund of INR 985,000.
numerals maintain
independence we mooted the formation
We have trained women to handle the
The initiation of SHG
of SHGs in our adopted villages. formation and assistance
these documents? books of accounts and maintain on
Our experience has Women's Self Help Groups (SHGs) in savings and credit list and also towards construction of
shown that once an
particular, represent a form of independently transact with the sanitation facilities have
banks.
SHG realises the been the two major
importance of literacy ratio For effective community development, highlights of MSPL's
maintaining records
we firmly believe that women act as contribution towards
enablers of change. SHGs apart from
members themselves being our deliberate attempt towards
society that has
100
invest the time and 76 strengthening the financial handling drastically changed
effort to manage good 54 and decision making power of women, people's lives.
50 have proven to be a strong and close
account keeping. knit women's group that has been
effectively utilised to propagate
25 awareness on key village issues that Srikar S. Bhattbhatt
H. K. Ramesh need to be addressed. The members of Vice President - Corporate Affairs
AGM - CSR the SHG meet every week to undertake & Company Secretary
0 MSPL Limited
MSPL Limited Female Male savings and credit activities.

The SHG provides a platform for

15 16
 SHGs for village development
The Self Help Group (SHG) movement has brought certain changes
in the lives of the women. It has allowed poor women to move from
their earlier position of silence to one of gaining voice, reduced
Building homes through our SHGs fatalism, improved living standards, and increased their collective
bargaining powers within their family and community as well as
empowered their status in the communities.
My name is Mumtaz. I am 24 years of age and reside in Danapur village. I
work as a representative in Kaveri women Self Help Group, formed by MSPL.
We are fourteen members working in our SHG, which is growing day by day
with growth in our savings and loan recovery. MSPL families coverage details
I am basically from a poor family and my parents work as daily labourers. We
through SHG as on 31st March, 2009
are 5 members in the family and live in a small hut, which is not sufficient for
us. We planned to build a new house for which we got an amount of INR 0.3
Covered by MSPL
lac from the Village Panchayat, under the Ashraya scheme. But this amount sr. village total no. of percentage
was insufficient. Since I was working as a representative in the Kaveri SHG, I no. name families families
could borrow an additional INR 0.1 lac with a low rate of interest. This helped
us to construct the new house. 1 Hanumanahalli 550 213 39
I am thankful to the Kaveri Self Help Group & to MSPL, due to which we could 2 Danapur 320 96 30
build our dream home. This has also helped me to contribute to my family's
requirement, of which I am really proud. 3 Galemmanagudi 203 55 27
4 Ingaligi 210 38 18
5 Kanavihally 392 167 43
6 Basapura 235 84 36
7 Halavarthi 460 45 10
Providing livelihood opportunities
8 Jaishingpura 203 45 22
9 Vyasankere 30 14 47
My name is Manjula and I am 20 years old. I am from Hanumanahalli village
and I have studied till the 7th standard. My parents are agriculture labourers.
For further studies I had to travel to my neighbouring village, but my family's
Total 2603 757 30
financial situation did not allow me to continue my schooling further. So I had
to quit schooling and started supporting my mother with the household work.
At the same time I was also searching for other opportunities to earn an income.

I came to know that in Mariyammanahalli village someone was running a

tailoring training centre, which I was interested in. But my parents did not allow
me as they did not want me to travel to another village and this disappointed
me. Later I was hopeful when I got to know that MSPL is providing free tailoring
training for unemployed women in my own village. I immediately joined classes
and have completed six months of tailoring training successfully. I have learnt a
lot of things and this has made my dreams come true.

MSPL has also given me a sewing machine for free. I have now started earning
a monthly income of INR 1,500 to 2,000 through tailoring.

The help & support from MSPL, has changed my lifestyle and so has my family's
financial position. I thank MSPL for helping me gain self respect & income. I
have saved around INR 7,000 from my income in the past six months and also
joined the SHG.

In an effort to develop skills among rural women we decided to

impart tailoring skills. This initiative started in 2007 has empowered
women to become self-reliant and infused confidence in them to
face the world. Since then women have been undergoing tailoring

17 18
 The school drop out rates are still high especially
among girls from poor and rural backgrounds.
According to UNICEF, currently, only 34 percent of
Our children will never India's girls are completing their schooling in India
know they can have a
better life if they don't and from disadvantaged social groups At the primary level, the Abheraj
receive education. across the country. Baldota Foundation has been
With proper education distributing free notebooks to schools
Programs such as the 'Sarva Shiksha
and support, Abhiyan'- The 'Education for All'
in and around Hospet region for the
past 3 years. We have been assisting
training and receive constant we believe that we are movement, a flagship program of the schools in terms of providing
encouragement and support from the shaping the growth of Government of India, has made computers and free computer training
Group. This year we trained 139 youth who are pillars education free and compulsory for to children of higher classes.
women on tailoring and distributed children in the age group of 6 -14
of societal growth. years.
160 sewing machines to trained
women to continue their newly learnt Notebook Distribution
In spite of many such programs we still
skill cum profession. Post training
see high school drop out rates
some women have established their H. K. Ramesh
especially among girls from poor and
own tailoring business whereby they AGM - CSR
MSPL Limited rural backgrounds in most parts of the
receive a regular income to support
country including Karnataka.
their families.
by providing assistance like payment It is an unfortunate fact that female
Women liberation is a complex issue
of fees, books and uniforms. Our literacy in India today is still
and our foremost priority is to address
efforts yielded results as we got 10 girl considerably lower than male literacy.
this through education. In an effort to
children to rejoin schooling, especially According to UNICEF, currently, only
reduce the school drop out rates of
in the age groups of 11 to 17 years. 34% of girls complete their schooling
girls, we conducted a house-to-house
Our plan now is to continue this in the in India. Yet in Karnataka, as per last
survey in all our 10 adopted villages.
forthcoming years and schedule our census held in 2001, the percentage Children from poor and rural
In households where a girl child had counseling activities well in advance. of female literacy in the state was background find it hard to buy books
dropped out of school, the family and Our target is to re-enroll 100 girl 57.45%. and notebooks. Their economic
the girl child were counseled by us to children in the forthcoming academic situation is so bad that simplest of
We firmly believe that empowerment
resume schooling. We motivated them year. things like notebooks can deter their
of women is through education and
self sufficiency. Our activities hence education. The Abheraj Baldota
have been through a combined Foundation launched free notebook
approach of propagating education of distribution program for the year on
educational impetus the girl child along with providing
livelihood opportunities for the adult
30th June 2008.

The program inaugurated by Capt.

women. Dr. Rajendra, Asst. Commissioner,
Hospet, witnessed the distribution of
United Nations Millennium Development - Goal 2 Our other efforts towards education,
120,000 notebooks to 21,024
Achieve universal primary education apart from the girl child education, has
been supporting education at the students across 88 schools in Hospet
primary, secondary and graduate taluka and five schools in Koppal
levels across socio-economic taluka. We pledge to continue this on
segments and beyond geographical a yearly basis to motivate children
Literacy in general plays a vital role in The Department of Education under towards their pursuit of higher
boundaries.
the overall development of any the Ministry of Human Resource education.
society. District statistics show that Development, towards the Special classes for 10th and 12th (2nd
the literacy rate of the Bellary district Universalisation of Elementary PUC) standard students were We supported the Education
is 58.04%. We believe that Education has made primary organised to improve student's Department, in organising a science
contribution towards education is key education more accessible and competency level through hiring exhibition in Hospet. More than 24
to investment in the social sector. effective for children, especially girls teachers and providing other facilities. schools participated in this program
and those from deprived communities

19 20
 Our activities hence have been through a combined We also contributed and honoured towards the entire M. Tech education
academic achievers of the expenses of four candidates. We also
approach of propagating education of the girl child Proudadevaraya Institute of Technology distributed laptops to the Mineral
along with providing with livelihood opportunities and gold medals were awarded to 6 Exploration graduates. The Abheraj
for income generation for adult women top rankers in different branches of Baldota Foundation's special program
engineering. The Baldota Fellowship also supports ten academically
for Masters in Technology (M. Tech) in brilliant students to pursue college
meant to create interest and provide them with free education, text mineral exploration, in the current year education in engineering and medical
awareness on science and its books, notebooks, other stationery involved a grant of INR 1.2 Million studies.
importance in the minds of school etc. These have been some of our
children. humble contributions to sustain and
provide essential education to the
We have offered financial support to youth of growing India.
hire teachers wherever there has been
a shortage of teaching staff. We To create awareness on environment,
conducted a teachers' training community and public health issues,
program where four teachers were we provided a sound system to a
trained for computer education. We well-known theatre group in
have donated teaching material and Mariyammanahalli. This team has over
the years put up plays, in the village,
to disseminate messages on
community issues, public health and
environmental issues and children's
education. This theatre group also
works on educating children on
environment, anti-social issues, child
rights and patriotism by staging
dramas in schools and villages. They
also publicise information and
messages on these vital issues
through the public address system
provided by us. supporting sports
To address the educational needs of Apart from education, we believe that promoting talent, to reward and
higher and mature students we a sport is an integral part of an recognise achievement. We have
encourage aspiring students and individual's all round development. contributed INR 200,000 each to
assist them to achieve their aims by We are facilitating talented sports honour the Olympic Games medalists
ensuring that their financial situation persons in rural communities to Mr. Vijendra Singh (Boxing) and
also assisted towards mid-day meals
does not affect their zest for perform to their true potential. We Mr. Sushil Kumar (Wrestling).
schemes for 10 schools and 15
education. We have made various sponsor prizes and certificates for the
anganvadis in adopted villages by
contributions for graduate students winners of various sports competitions Beyond education and sports, we are
providing vessels etc. Upgradation of
who are pursuing their business, in high schools and higher primary also working to ensure equal access
basic facilities in Government schools
engineering, medical or computer schools at the taluka and zonal levels. and opportunity to enhance quality of
have been carried out by providing
education. We financially supported We provided sports kits to youth life of students.
chairs and tables. We also provided
24 poor talented students to pursue groups. We also organised sports
50 desks, 4 tables and 4 chairs for The ABF contributes towards music
higher studies in the field of event at the zonal and taluka levels in
Halavarthi school. training in schools especially for the
engineering, medicine and and around Hospet. ABF encourages
management. poor and physically challenged
We run a primary school for the talented sportspersons to achieve students. We contributed to award the
children of our mine workers and their dreams and have sponsored the winners of the Pratibha Karanji Program
youth basket ball teams for - organised by the Department of Public
participating in the state level Instruction at the district and taluka
To promote and improve rural student's competency championship. We have also provided levels to promote cultural competitions
level and reduce drop outs, we have also supported financial assistance to talented such as dancing, singing, drama, art,
financially to hire teachers wherever there has been sportspersons for participating in handicraft, science, speech, etc.
international tournaments. Besides
a shortage of teaching staff to handle classes among school children.

21 22
 United Nations Millennium Development - Goal 6
Combat HIV/AIDS, malaria & other diseases

support for healthcare

Over the past few years India has seen need to contribute towards and
AIDS Awareness Blood Donation
an impressive economic growth and augment efforts in providing health
UNICEF estimates indicate that Hospet has a history of high accident
progress on the human development facilities. Over the years our prime goal
approximately 2.4 million rate with over 300 accidents recorded
front. The growth rates of the country has been to provide sustained
(2 million - 3.1 million) people in each year till 2001. This called for an
were as high as nine per cent in contributions for existing hospitals to
India were living with HIV in 2007. The imminent need to have a blood bank.
2006-07, while the population below upgrade, their facilities and also in
national adult HIV prevalence of the On 17th December 2001,
the poverty line gradually declined. Yet assisting individuals towards their
country is 0.3%; the epidemic Smt. Vasantidevi Baldota Blood Bank
we have not been fast or equitable healthcare needs and associated
continues to affect large numbers of was established and since then there
enough to reach the disadvantaged costs.
people in the country. The district of has been a dedicated drive to
populations. Access to healthcare is
We are also taking a more holistic Bellary also has alarming HIV figures encourage blood donation as we assist
among basic necessities, but still out
approach to our social activities. We when compared to other districts in the local communities to use this
of reach for many.
have aligned our initiative with the state. We perceive that this is an precious resource in their hour of need.
Better health is the key to wealthy national development targets of the epidemic that needs to be addressed The blood bank is the only one in the
societies. Almost 40% of the Indian Government of India, which are through education and awareness. region within a radius of 100km and
populations cite health as the main derived from and address the United has been a blessing for the people.
We have been part of the campaign by Utmost care is taken to follow all safety
concern before issues such as Nations Millennium Development
The Rajiv Gandhi Foundation National standards at every stage. The blood
financial problems, housing or crime. Goals of providing access to
AIDS Control Organisation and Nehru bank is managed by a trained and
We realise that good health makes an sanitation, clean water, education and
Yuva Kendra Sangathan which in the qualified staff consisting of a Convenor,
important contribution to economic empowerment of women and
year 2004 was one of the largest rural a Medical Officer, four technicians, a
progress, as healthy populations live eliminate poverty along side
campaigns on rails, to create Pharmacist and two other staff
longer, are more productive and save developmental targets.
awareness on HIV/AIDS. As part of members.
more. We are sharing this huge
this campaign in Hospet, a three-day
responsibility with the Government to
campaign was conducted. We Since the inception of the blood bank
improve the access to quality
participated and contributed by the number of units of blood collected
healthcare for the communities we
making arrangements for rural women has gradually increased from 399 units
interact with and operate in.
Healthcare specifically for the rural Even in this period of to attend the campaign, since it is of in 2001-2002 to 5,799 units in 2008-
recession, our social prime importance to us that women 2009 and with an increase in average
poor and the vulnerable (women and
make decisions and protect their per day collections from 2.19 units in
children), is the focus of our action on activities have actually health and that of their family. 2001-2002 to 15.9 units in 2008-2009.
this front. increased than in any
Recent statistics from the Bellary other year.
no. of units of blood
health council enumerate that out of collected
the 7 talukas in the district, there are
5799
only 54 Primary Health Centres (PHC) 6000
and 6 hospitals to serve the district Narendrakumar A. Baldota 5000
population of 2,025,242. With large Chairman & Managing Director 3739
populations still without access to MSPL Limited and Baldota Group 4000
basic healthcare, we recognised the 3000
2860

2000

1000

0
2006-07 2007-08 2008-09

23 24
 Sanitation and Health

Chairman as we initiated provision of marginal investment by individual

sanitation facilities for the individual houses. The number of toilets
households across our adopted constructed by us in villages have
villages. We conducted a survey grown form 130 to 288 in 2008-2009. Our commitment for
among individual households which
pointed that our initiative to assist We recognise the fact that community the future is to construct
households for toilet constructions involvement in sanitation, health and 1,500 toilets by 2010
was whole-heartedly welcome. This hygiene has to be built through
exercise also proved to be a vehicle for sustained campaigns. Apart from
women to voice their concerns and addressing the need for sanitation
Some 2.5 billion people, almost half demand for their basic needs. facilities, we also realised the need to Narendrakumar A. Baldota
the developing world's population, consolidate our efforts on this front. Chairman & Managing Director
lives without proper sanitation This initiative is also in line with the Hence we narrowed our efforts towards MSPL Limited and Baldota Group
facilities. Today, even as India enjoy UN Millennium Development Goals of activities such as construction of soak
more than a half century after addressing maternal and child health pits for safe disposal of waste water,
independence, it is still struggling to as well as empowering women to make construction of drains, support for
provide sanitation and clean drinking decisions. Our interactions with the drinking water, conducting health
water to its teeming millions. According community indicate that the need for camps and building awareness among
to the Government of India, more than toilet facilities is felt more so for the community members on the Sanitation is more
half a billion people practice open privacy and safety of women. We importance of hygiene and sanitation. important than
observed that women were truly
defecation. As per the Bellary district statistics, the independence,
concerned of being burdened with
The lack of adequate sanitation and birth rate in the district is 27. The ratio Mahatma Gandhi said
safe water has significant negative of infant death to 1000 live births is it once. We believe in it
35.60, which is higher than the
health impacts. It has been estimated
national average. The ratio of maternal
and have made
by the World Health Organisation in
2002 that around 700,000 Indians die death to 1000 births in the district is conscious efforts over
each year from diarrhea and according 2.20. These statistics highlight the the years to address
to the Planning Commission Report in stark reality on the status and nature of this issue for
women and children's health in our
India (2003) almost 400,000 to our communities.
500,000 children under the age of five area. We therefore remain focused on
die due to water borne diseases such maternal and child health.
as diarrhea, hepatitis and typhoid in We have also undertaken the
the country. responsibility of providing households H. K. Ramesh
with clean and safe drinking water. We AGM - CSR
Governments across the world, additional tasks and correlated the MSPL Limited
including the Government of India, distribute around 10,000L of water per
economic costs imposed by poor
have agreed to the eight Millennium day to Vyasankere - an adopted village
sanitation in terms of increased
Development Goals (MDGs) to reach that has around 40 households. Apart
disease occurrence and mortality,
targets addressing extreme poverty. from this, we supply water to the
especially that of children.
Goal seven aims to reduce the number village that faces, acute shortage of
of people without access to sanitation We initiated work by hiring water supply. A case in point are the
by half, till 2015. independent contractors who built Hanumahalli and Danapur villages,
toilets as per approved toilet designs. where we supplied drinking water for 4
The importance of providing sanitation We have contributed majority of the days, till the local water supply was
facilities was recognised by our expenses for construction with only a resumed.

25 26
 The Abheraj Baldota Foundation baba ramdevji's
visit to hospet
people where they learnt the art of
purchase of an ambulance cum yoga, good health and the art of good
emergency Intensive Care Unit (ICU) living.
to a hospital in Ahmednagar,
Maharastra that undertakes cardiac As a part of this mega event, we took
surgery and care for poor people. the opportunity to bestow his
Eye camps were conducted at a knowledge and wisdom on the
nearby hospital - Nethralakshmi Baldota Group employees and their
Vaidyalaya. We also contributed to family members. During the meet
the Anandrishiji Hospital and people learnt stress management,
Medical Research Center, work ethics management and yoga.
Ahmednagar for providing health Yogishri Swami Baba Ramdevji
services to poor and needy Also various other events were
Maharaj is one of the most Eminent coordinated by us during Swami Baba
patients. Yoga Gurus in India. Ramdeviji's presence in Hospet. A
Apart from contributing towards He is well known in the country for his Yoga teachers' training was held for
The Abheraj Baldota Foundation health in the Hospet region, we also around 400 teachers from all over
(ABF) was established in the name ability to address and cure illnesses
aided the Endoscopy Research through the practice of yoga. The Karnataka. A camp for school children
of our Founder Chairman Shri Foundation in Mumbai. This helped was also conducted. Swamiji also
Abheraj Hirachand Baldota who Baldota management organised a six-
the foundation establish the day yoga science camp by Swamiji and inaugurated the newly constructed
was a well-known industrialist, Abheraj Baldota Cancer Detection bus stop and a walk over bridge at
philanthropist and social worker. his team for the entire township of
Centre at the Institute of Advanced Hospet from 11th to 16th January Vijayanagar College, Hospet.
The foundation is a registered Endoscopy. 2009. The camp was attended by over
charitable trust, through which we This state-of-the-art centre 11,000 people from Hospet and near
route our contributions to social facilitates early detection and cure by towns. Apart from the daily yoga
welfare including provision of of cancer ailments, specifically that camps conducted, 40 Ayurvedic
healthcare facilities and assistance of the abdomen. The centre also has physicians accompanying Swamiji
for the same. For the last 30 years, reservations for patients referred were present at the OPD the whole day
the foundation has been a vehicle from Government or Municipal to attend to the health problems of the
for our social endeavours and Hospital, thus providing access to entire town of Hospet.
contributions. the smallest sections of the society. The camp was a welcome event that
We have supported patients by Apart form healthcare, community rejuvenated the minds and hearts of
contributing for their infrastructure facilities have also
hospitalisation, surgery and been addressed through our
medical expenses. We have also foundation. The ABF has
financially supported hospitals contributed towards street lights
which needed upgradation and and also constructed a bus stop
additional facilities. Contribution near Vijayanagar College, Hospet.
was also made towards the

27 28
 6

GRI INDEX & ANNEXURES

 GRI Index 1
Acronyms & 7
Abbreviations
Glossary of 9
mining terms
Annexure - I 11
This Sustainability Report, Code of Conduct
is a GRI Checked
Application Level A+ Report,
Annexure - II 14
ICMM Principles
signifying the highest level
of transparency. Annexure - III 18
Further Indicators
Reference

Independent 20
Assurance Statement
 GRI index
STANDARD DISCLOSURES PART I: Profile Disclosures Performance Booklet / Status of
Indicator Description Page nos. reporting
Profile Booklet / Status of
Disclosure Description Page nos. reporting EC2 Financial implications and other risks 3 / 10 Reported***
and opportunities for the organisation's activities
1. Strategy and Analysis due to climate change.
1.1 Statement from the most senior 1/ Reported EC3 Coverage of the organisation's defined benefit 3/5 Reported
decision-maker of the organisation 1-4, 5-10 plan obligations.
1.2 Description of key impacts, risks, and opportunities 3 / 1-6 Reported EC4 Significant financial assistance received 3/6 Reported
from government.
2. Organisational Profile
EC5 Range of ratios of standard entry level wage
2.1 to 2.9 Organisation profile 1 / 14-18 Reported compared to local minimum wage at significant
locations of operation.
2.10 Awards received in the reporting period 1 / 19-20 Reported
EC6 Policy, practices, and proportion of spending on 5/7 Reported
3. Report Parameters locally-based suppliers at significant
locations of operation.
3.1 to 3.3 Report Profile 1 / Cover Reported
inside EC7 Procedures for local hiring and proportion of 2 / 9-10 Reported
senior management hired from the local community
3.4 Contact point for questions regarding the report or 1/4 Reported at significant locations of operation.
its contents
EC8 Development and impact of infrastructure investments – Not applicable
3.5 to 3.11 Report Scope and Boundary 1 / Cover Reported* and services provided primarily for public benefit (Please refer
inside through commercial, in-kind, or pro bono engagement. annexure - III)
3.12 GRI Content Index 6 / 1-5 Reported EC9 Understanding and describing significant indirect 3/2 Reported
economic impacts, including the extent of impacts.
3.13 Assurance 6 / 17-19 Reported
***Financial implications and other risks and opportunities for the organisation's activities due to
*Materiality to MSPL is addressed in section - Foreward (booklet 1 / pg. 1-4) and is covered all through the
report with topics prioritised under each section. Report boundary also includes impact of identified climate change is discussed in the entire section - Response & Opportunity (booklet 3 / pg. 7-12)
stakeholders reported in section - Stakeholder Engagement & Issue identification (booklet 2 / pg. 16-18).
Environmental
4. Governance, Commitments, and Engagement
EN1 Materials used by weight or volume. 4/4 Reported
4.1 to 4.10 Governance 2 / 11-14 Reported
EN2 Percentage of materials used that are recycled 4/4 Reported
4.11 to 4.13 Commitments to External Initiatives 2 / 14-15 Reported input materials.

4.14 to 4.17 Stakeholder Engagement 2 / 16-18 Reported EN3 Direct energy consumption by primary energy source. 4 / 16 Reported

STANDARD DISCLOSURES PART II: Disclosure on Management Approach (DMAs)** EN4 Indirect energy consumption by primary source. 4 / 17 Reported

Booklet / Status of EN5 Energy saved due to conservation and 4 / 16 Reported

G3 DMA Description Page nos. reporting efficiency improvements.

DMA EC Disclosure on Management Approach EC 3/2 Reported EN6 Initiatives to provide energy-efficient or renewable 4 / 17 Reported
energy based products and services, and reductions
DMA EN Disclosure on Management Approach EN 4/2 Reported in energy requirements as a result of these initiatives.

DMA LA Disclosure on Management Approach LA 5/2 Reported EN7 Initiatives to reduce indirect energy consumption 4 / 17 Reported
and reductions achieved.
DMA HR Disclosure on Management Approach HR 5/2 Reported
EN8 Total water withdrawal by source. 4 / 9-11 Reported
DMA SO Disclosure on Management Approach SO 5/2 Reported
EN9 Water sources significantly affected by 4 / 9-10 Reported
DMA PR Disclosure on Management Approach PR 3/2 Reported withdrawal of water.
**DMA presented in this report is consolidated and it includes organisations commitment and goals EN10 Percentage and total volume of water recycled 4/9 Reported
and performance, however detailed DMA can be accessed in MSPL's 07-08 Sustainability Report and reused.
accessible at http://www.mspllimited.com/images/MSPL%20CSR%203_15-6-09%20(2).pdf
EN11 Location and size of land owned, leased, managed in, 4 / 5, 13 Reported
STANDARD DISCLOSURES PART III: Performance Indicators or adjacent to, protected areas and areas of high
biodiversity value outside protected areas.
Performance Booklet / Status of
Indicator Description Page nos. reporting EN12 Description of significant impacts of activities, 4/5 Reported
products, and services on biodiversity in protected
Economic areas and areas of high biodiversity value outside
protected areas.
EC1 Direct economic value generated and distributed, 3 / 5-6 Reported
including revenues, operating costs, employee EN13 Habitats protected or restored. 4 / 13-15 Reported
compensation, donations and other community
investments, retained earnings, and payments to EN14 Strategies, current actions, and future plans for 4 / 13-14 Reported
capital providers and governments. managing impacts on biodiversity.

1 2
 GRI index
Performance Booklet / Status of Performance Booklet / Status of
Indicator Description Page nos. reporting Indicator Description Page nos. reporting

EN15 Number of IUCN Red List species and national – Not applicable LA5 Minimum notice period(s) regarding significant – Not applicable
conservation list species with habitats in areas (Please refer operational changes, including whether it is specified (Please refer
affected by operations, by level of extinction risk. annexure - III) in collective agreements. annexure - III)

EN16 Total direct and indirect greenhouse gas emissions 4 / 16 Reported LA6 Percentage of total workforce represented in 5 / 5-6 Reported
by weight. formal joint management-worker health and safety
committees that help monitor and advise on
EN17 Other relevant indirect greenhouse gas emissions 4 / 16 Reported occupational health and safety programs.
by weight.
LA7 Rates of injury, occupational diseases, lost days, 5 / 8-9 Reported
EN18 Initiatives to reduce greenhouse gas emissions and 3 / 11-12 Reported and absenteeism, and number of work-related
reductions achieved. fatalities by region.

EN19 Emissions of ozone-depleting substances by weight. 4/3 Reported LA8 Education, training, counseling, prevention, and 5 / 6-7 Reported
risk-control programs in place to assist
EN20 NOx, SOx, and other significant air emissions by type 4 / 7-8 Reported workforce members, their families, or
and weight. community members regarding serious diseases.

EN21 Total water discharge by quality and destination. 4 / 12 Reported LA9 Health and safety topics covered in formal agreements – Not applicable
with trade unions. (Please refer
EN22 Total weight of waste by type and disposal method. 4 / 5-6 Reported annexure - III)

EN23 Total number and volume of significant spills. 4/6 Reported LA10 Average hours of training per year per employee 5/7 Reported
by employee category.
EN24 Weight of transported, imported, exported, or treated
waste deemed hazardous under the terms of the Basel LA11 Programs for skills management and lifelong 5 / 6-8 Reported
Convention annexure I, II, III, and VIII, and percentage of learning that support the continued employability
transported waste shipped internationally. of employees and assist them in managing
career endings.
EN25 Identity, size, protected status, and biodiversity value – Not applicable
of water bodies and related habitats significantly (Please refer LA12 Percentage of employees receiving regular 5 / 6-7 Reported
affected by the reporting organisation's discharges annexure - III) performance and career development reviews.
of water and runoff.
LA13 Composition of governance bodies and breakdown of 5/5 Reported
EN26 Initiatives to mitigate environmental impacts of 4 / 2, 4 Reported employees per category according to gender,
products and services, and extent of impact mitigation. 3/2 age group, minority group membership, and
other indicators of diversity.
EN27 Percentage of products sold and their packaging – Not applicable
materials that are reclaimed by category. (Please refer LA14 Ratio of basic salary of men to women by – Not applicable
annexure - III) employee category. (Please refer
annexure - III)
EN28 Monetary value of significant fines and total number – Not reported
of non-monetary sanctions for non-compliance with (Please refer Social: Human Rights
environmental laws and regulations. annexure - III)
HR1 Percentage and total number of significant investment – Not reported
EN29 Significant environmental impacts of transporting 4 / 7-8 Reported agreements that include human rights clauses or (Please refer
products and other goods and materials used for the that have undergone human rights screening. annexure - III)
organisation's operations, and transporting members
of the workforce. HR2 Percentage of significant suppliers and contractors – Not reported
that have undergone screening on human rights (Please refer
EN30 Total environmental protection expenditures and – Not reported and actions taken. annexure - III)
investments by type. (Please refer
annexure - III) HR3 Total hours of employee training on policies and 5 / 6-7 Reported
procedures concerning aspects of human rights
Social: Labor Practices and Decent Work that are relevant to operations, including
the percentage of employees trained.
LA1 Total workforce by employment type, employment 5/5 Reported
contract, and region. HR4 Total number of incidents of discrimination 5/2 Reported
and actions taken.
LA2 Total number and rate of employee turnover by 5 / 5-6 Reported
age group, gender, and region. HR5 Operations identified in which the right to exercise 5/2 Reported
freedom of association and collective bargaining
LA3 Benefits provided to Reporting-time employees 2 / 9-10 Reported may be at significant risk, and actions taken
that are not provided to temporary or part-time to support these rights.
employees, by major operations.
HR6 Operations identified as having significant risk for – Not applicable
LA4 Percentage of employees covered by – Not applicable incidents of child labor, and measures taken (Please refer
collective bargaining agreements. (Please refer to contribute to the elimination of child labor. annexure - III)
annexure - III)

3 4
 GRI index
Performance Booklet / Status of Performance Booklet / Status of
Indicator Description Page nos. reporting Indicator Description Page nos. reporting

HR7 Operations identified as having significant risk for 5/2 Reported PR5 Practices related to customer satisfaction, including 2 / 16-18 Reported
incidents of forced or compulsory labor, and 6 / 14 results of surveys measuring customer satisfaction.
measures to contribute to the elimination of forced
or compulsory labor. PR6 Programs for adherence to laws, standards, and 4/3 Reported
voluntary codes related to marketing communications, 3/2
HR8 Percentage of security personnel trained in – Not applicable including advertising, promotion, and sponsorship.
the organisation's policies or procedures (Please refer
concerning aspects of human rights that are relevant annexure - III) PR7 Total number of incidents of non-compliance with – Not applicable
to operations. regulations and voluntary codes concerning (Please refer
marketing communications, including advertising, annexure - III)
HR9 Total number of incidents of violations involving – Not applicable promotion, and sponsorship by type of outcomes.
rights of indigenous people and actions taken. (Please refer
annexure - III) PR8 Total number of substantiated complaints regarding – Not applicable
breaches of customer privacy and losses of (Please refer
Social: Society customer data. annexure - III)

SO1 Nature, scope, and effectiveness of any programs and 1 / 2-3 Reported PR9 Monetary value of significant fines for – Not applicable
practices that assess and manage the impacts of non-compliance with laws and regulations concerning (Please refer
operations on communities, including entering, the provision and use of products and services. annexure - III)
operating, and exiting.

SO2 Percentage and total number of business units – Not reported

analyzed for risks related to corruption. (Please refer
annexure - III)

SO3 Percentage of employees trained in organisation's – Not reported

anti-corruption policies and procedures. (Please refer
annexure - III)

SO4 Actions taken in response to incidents of corruption. 6 / 13 Reported

SO5 Public policy positions and participation in 2 / 4, 14 Reported

public policy development and lobbying.

SO6 Total value of financial and in-kind contributions to – Not applicable

political parties, politicians, and related institutions (Please refer
by country. annexure - III)

SO7 Total number of legal actions for anti-competitive – Not applicable

behavior, anti-trust, and monopoly practices and (Please refer
their outcomes. annexure - III)

SO8 Monetary value of significant fines and – Not reported

total number of non-monetary sanctions for (Please refer
non-compliance with laws and regulations. annexure - III)

Social: Product Responsibility

PR1 Life cycle stages in which health and safety 5/8 Reported
impacts of products and services are assessed 3/2
for improvement, and percentage of significant
products and services categories subject to
such procedures.

PR2 Total number of incidents of non-compliance with 5/8 Reported

regulations and voluntary codes concerning
health and safety impacts of products and services
during their life cycle, by type of outcomes.

PR3 Type of product and service information required – Not reported

by procedures, and percentage of significant (Please refer
products and services subject to such annexure - III)
information requirements.

PR4 Total number of incidents of non-compliance with 3/2 Reported

regulations and voluntary codes concerning
product and service information and labeling,
by type of outcomes.

5 6
 acronyms and abbreviations
ABF Abheraj Baldota Foundation GJ Giga Joules MEAI Mining Engineers' Association R&D Research and Development
of India
AGM Assistant General Manager GoI Government of India RMML Ramgadh Mines and Minerals
MoEF Ministry of Environment Limited
AIDS Acquired Immuno Deficiency GRI Global Reporting Initiative and Forests
Syndrome RSPM Respirable Suspended
Ha Hectare MT Metric Tonnes Particulate Matter
AIR All India Radio
HDI Human Development Index MTPA Million Tonne Per Annum SAP System application products
AISL Aaress Iron and Steel Ltd.
HIV Human Immunodeficiency Virus MW Mega Watt SHG Self Help Group
BCF Business and Community
Foundation HR Human Rights NACO National AIDS Control Organisation SMIORE Sandur Manganese Iron Ore
Co. Ltd.
BOD Biochemical Oxygen Demand HSD High Sulphur Diesel NGO Non Governmental Organisation
SOx Oxides of Sulphur
CA Corporate Affairs IBM Indian Bureau of Mines NOx Oxides of Nitrogen
SPM Suspended Particulate Matter
CAPEXIL Chemicals & Allied Products ICMM International Council on O&M Operation & Maintenence
Export Promotion Council Mining and Metals SPV Special Purpose Vehicle
OHSAS Occupational Health &
Capt. Captain ICU Intensive Care Unit Safety Assessment Series SWaN Society for Wildlife and Nature

CDM Clean Development Mechanism IFC International Finance Corporation P.U.C Pre University Education UN United Nations

CFO Chief Financial Officer ILO International Labour Organisation PCB Pollution Control Board UNFCCC United Nations Framework
Convention on Climate Change
CMD Chairman and Managing Director IMF International Monetary Fund PHC Public Health Centre
UNICEF United Nations Children's Fund
COD Chemical Oxygen Demand INR Indian Rupees PLF Plant Load Factor
UN MDGs United Nations Millenium
PPE Personal Protective Equipment Development Goals
CPCB Central Pollution Control Board IPCC Intergovernmental Panel on
Climate Change
PRA Participative Research Assessment USD United States Dollar
CS Company Secretary
IPO Initial Public Offering
PRCI Public Relations Council of India VIOM Vyasankere Iron Ore Mines
CSR Corporate Social Responsibility
ISO International Organisation for
PVS P. Venganna Shetty and Brothers WHO World Health Organisation
DGM Deputy General Manager Standardisation

ED Executive Director ITI Industrial Training Institutes

EIA Environmental Impact IUCN International Union for

Assessment Conservation of Nature

EMS Environmental Management Kg Kilo Grams

Systems
KIAD Karnataka Industrial Areas
EOU Export Oriented Unit Development Board

Fe Iron KPI Key Performance Indicator

FICCI Federation of Indian Chambers of KSPCB Karnataka State

Commerce & Industry Pollution Control Board

FIMI Federation of Indian Mineral KwH Kilo Watt Hour

Industries
M. Tech. Masters in Technology
FKCCI Federation of Karnataka
Chambers of Commerce & m3 Cubic Meter
Industry
MD Managing Director
FY Financial Year

7 8
 glossary of mining terms

Beneficiation Overburden
The treatment of ore & making it more in mineral content. The associated waste rocks occurring with Iron Ore is termed
as overburden.
Stripping is the operation of removing the overburden prior
Blasting to the working of the mineral.
Process of detonating explosives to loosen rock for
excavation.
Pellet
A marble-sized ball made from iron ore fused with additives
Byproduct clay and coke. It is intermediate product for use in
A secondary metal or mineral product recovered in the milling steelmaking.
process.

Reclamation
Drill The process of returning the land to another productive use
There are various types of drills for exploration such as a after mining has been completed. The restoration of land
diamond drill (produces core) or reverse circulation drill and environmental values to a surface mine site after the
(produces chips). Other types of drills are used in the mining ore is extracted. Reclamation operations are usually
process which do not produce a core, but are used to make underway as soon as the ore has been removed from a mine
circular holes in the rock which are filled with explosives for site. The process includes restoring the land to its
blasting to loosen the rocks. approximate original appearance by restoring topsoil and
planting native grasses and ground covers.

Exploration
Prospecting, sampling, mapping, diamond drilling and other Recovery
work involved in searching for ore. The percentage of valuable metal in the ore that is recovered
by metallurgical treatment.

Mineral
A naturally occurring homogeneous substance having Resource
definite physical properties and chemical composition and, if The calculated amount of material in a mineral deposit,
formed under favourable conditions, a definite crystal form. based on limited drill information.

Open Pit Run of Mines

A mine, that is entirely on surface. Not being underground. The iron ore mined in its natural unprocessed state at the pit
Also referred to as, open-cut or open-cast mine. head prior to treatment of any sort.

Ore Reserves Tailings

The calculated tonnage and grade of mineralisation which Material rejected from a mill after most of the recoverable
can be extracted profitably; classified as possible, probable valuable minerals have been extracted.
and proven according to the level of confidence that can be
placed in the data.
Zone
An area of distinct mineralisation.

9 10
 annexure - I
code of conduct

Corporate and Organisational Values 6 Environmental Commitment

1 Integrity - doing what is right The Company's business will be conducted in an environmentally friendly and
responsible manner.
Personal integrity, upheld on a day-to-day basis, is the unshakable foundation for
corporate integrity. Long-term, trusting business relationships are built by being Employees shall:
honest, open and fair. • ensure compliance with the spirit and intent of environmental laws,
Employees are expected to uphold the highest professional standards. regulations and standards;
• incorporate environmental protection as an integral part of the design,
production, operation and maintenance of Company's facilities.
2 Gifts
Employees will not solicit any gifts from their business relationships. Employees 7 Safety
shall reject unsolicited gifts that may be perceived as intended to / likely to
influence any business decision. Acceptance of cash gift is prohibited. Company assigns highest priority to the safety of its employees and all those who
are influenced by the operations of the Company. No job is important enough
to justify unsafe operations. Supervisors and managers are responsible for
3 Conflict of Interest
monitoring the use of all reasonable safeguards in the workplace including
Employees, whether dealing in personal or official capacity, are expected to avoid adherence to Company procedures, safe work practices, and wearing personal
activities, agreements, positions, business investments or interests, and other protective equipment so as to ensure health, safety and welfare of all concerned.
situations that are in conflict or appear conflicting with interests of the Company However, ultimately all employees are responsible for their own safety. Every
or that may interfere with their individual performance. Towards this, employees employee must, for his or her own and fellow workers' health, safety and welfare
are required to make disclosures to the Compliance Officer (Company Secretary) abide by the Company procedures and safe work practices, and use all
relating to all material, financial and commercial transactions, where there appropriate personal protective equipment.
personal interest may have potential conflict with the interest of the Company at
large (eg. Dealing with Company's shares, Commercial dealings with Baldota
Group Companies). Such disclosure should be made as soon as an employee 8 Confidential and Proprietary Information
develops personal interest in any transaction conflicting with the interest of the Company information, including self-generated computer software applications,
Company at large. may be confidential or proprietary. Employees have to be careful about
Employees may not knowingly engage in any conduct or activities that are disclosure of such information to people outside the Company or to employees
inconsistent with the Company's best interests. who need not know or possess the same.
Concerns about conflicts of interest may be addressed through either: When there is a legitimate business need to share confidential or proprietary
• prior approval in writing of or information with outsiders, it may be disclosed after prior approval of appropriate
authority and under an appropriate confidentiality agreement protecting such
• complete and timely disclosure to appropriate organisational authority. information.
It is always conflict of interest to work simultaneously for a competitor, material Confidential and proprietary information must not be treated casually or left
customer or supplier. unprotected.
Employees are prohibited from using Company's property or information, or their
4 Legal Compliance position within the Company, for personal gain.
The Company's policy on legal compliance requires every employee to adhere to
the legal and regulatory requirements, in all material respects, that affect his or 9 Financial Information
her job. Employees must adhere to this policy on legal compliance and
associated reporting. Financial information on Company's operations and performance provided to
shareholders, equity analysts, creditors, newspapers and such others, whether
It is essential that information provided to the regulators is accurate and not statutory or voluntary, must be accurate and reliable.
misleading.
Disclosure of financial and business information to the public at large or to any
interested person shall be governed by the “Code of Corporate Disclosure
5 Respect for People Practices For Prevention of Insider Trading” prescribed by SEBI.
Employees are expected to treat co-employees and business associates fairly Communication to the Press or such other media will be organised by the Office of
and, irrespective of hierarchical level, with dignity and respect. Being treated Chairman & Managing Director and Employees should not talk about Company
fairly means that employees shall be judged on merits. matters with a reporter, either on or off the record, without first contacting the
Office of Chairman & Managing Director.
Senior Management Cadre must maintain an open line of communication and
listen to all employees.

11 12
 annexure - I annexure - II
code of conduct ICMM principles

In order to protect the investing public, securities laws make it illegal for those 01 Implement and maintain ethical business practices and sound systems of
with 'unpublished price sensitive information' to buy or sell securities (stocks, corporate governance.
bonds, options, etc.). Employees must not indulge in insider trading and abide by
the Company's Code of Conduct for Prevention of Insider Trading. 02 Integrate sustainable development considerations within the corporate decision-
making process.

10 Company Assets, Computer Network Use and Security 03 Uphold fundamental human rights and respect cultures, customs and values in
dealings with employees and others who are affected by our activities.
Employees must make responsible use of Company assets in their personal
possession such as telephones, computers and other hardware, software, 04 Implement risk management strategies based on valid data and sound science.
Internet connection, networks and the information that runs on them in a 05 Seek continual improvement of our health and safety performance.
responsible manner.
06 Seek continual improvement of our environmental performance.
Employees must:
• use telephone, computers and peripherals and internet responsibly and 07 Contribute to conservation of biodiversity and integrated approaches to land use
primarily for legitimate business purposes and personal uses should be planning.
reasonable and kept to a minimum. 08 Facilitate and encourage responsible product design, use, re-use, recycling and
• protect the security of computer systems. disposal of our products.
• not engage in electronic communications that might be considered offensive, 09 Contribute to the social, economic and institutional development of the
derogatory, defamatory, harassing, obscene or otherwise vulgar. communities in which we operate.
• not use Company electronic communications systems to improperly 10 Implement effective and transparent engagement, communication and
disseminate copyrighted or licensed materials, or proprietary information. independently verified reporting arrangements with our stakeholders.
• not use Company electronic communications systems to transmit chain
letters, advertisements or solicitations (unless authorized).
Principle 01
• not visit inappropriate Internet sites; and
• always protect information used to access computers, networks or systems. Implement and maintain ethical business practices and sound systems of corporate
governance.
Company's electronic communications system and information will be monitored
for compliance with Company policy and applicable laws. Employees must note • Develop and implement company statements of ethical business principles, and
that they are not entitled to privacy privilege in respect of the same. practices that management is committed to enforce.
• Implement policies and practices that seek to prevent bribery and corruption.
11 Records Maintenance and Management
• Comply with or exceed the requirements of host-country laws and regulations.
Employees must maintain and manage appropriate records and information
pertaining to affairs of the Company under their purview, including records and • Work with governments, industry and other stakeholders to achieve appropriate
information in electronic form like e-mails, computer files etc. and effective public policy, laws, regulations and procedures that facilitate the
mining, minerals and metals sector's contribution to sustainable development
within national sustainable development strategies.
Compliance with the Code
As a condition of employment / association with the Company, Employees are
expected to comply with and strictly adhere to the standards of conduct Principle 02
contained in this Code and underlying policies and procedures. Failure to comply
Integrate sustainable development considerations within the corporate decision-
the code may result in disciplinary actions. When in doubt, this Code casts the
making process.
responsibility on the employee to seek clarification and guidance as to the proper
course of conduct from appropriate person in the Senior Management. • Integrate sustainable development principles into company policies and
Employees who are aware of any misconduct under this Code, illegal activity, practices.
fraud or abuse of Company assets must report such matters to the Chairman & • Plan, design, operate and close operations in a manner that enhances
Managing Director. The employees reporting any misconduct shall be suitably sustainable development.
protected and no unjust action will be taken against any such employee for
making such a report. • Implement good practice and innovate to improve social, environmental and
economic performance while enhancing shareholder value.

13 14
 annexure - II
ICMM principles

• Encourage customers, business partners and suppliers of goods and services to • Provide all employees with health and safety training, and require employees of
adopt principles and practices that are comparable to our own. contractors to have undergone such training.
• Provide sustainable development training to ensure adequate competency at all • Implement regular health surveillance and risk-based monitoring of employees.
levels among our own employees and those of contractors. • Rehabilitate and reintegrate employees into operations following illness or
injury, where feasible.
• Support public policies and practices that foster open and competitive markets.

Principle 06
Principle 03
Seek continual improvement of our environmental performance
Uphold fundamental human rights and respect cultures, customs and values in
dealing with employees and others who are affected by our activities. • Assess the positive and negative, the direct and indirect, and the cumulative
environmental impacts of new projects - from exploration through closure.
• Ensure fair remuneration and work conditions for all employees and do not use
forced, compulsory or child labour. • Implement an environmental management system focused on continual
improvement to review, prevent, mitigate or ameliorate adverse environmental
• Provide for the constructive engagement of employees on matters of mutual
impacts.
concern.
• Rehabilitate land disturbed or occupied by operations in accordance with
• Implement policies and practices designed to eliminate harassment and unfair
appropriate post-mining land uses.
discrimination in all aspects of our activities.
• Ensure that all relevant staff, including security personnel, are provided with • Provide for safe storage and disposal of residual wastes and process residues.
appropriate cultural and human rights training and guidance. • Design and plan all operations so that adequate resources are available to meet
• Minimise involuntary resettlement, and compensate fairly for adverse effects on the closure requirements of all operations.
the community where they cannot be avoided.
• Respect the culture and heritage of local communities, including indigenous Principle 07
people.
Contribute to conservation of biodiversity and integrated approaches to land use
planning
Principle 04
• Respect legally designated protected areas.
Implement risk management strategies based on valid data and sound science. • Disseminate scientific data on and promote practices and experiences in
• Consult with interested and affected parties in the identification, assessment biodiversity assessment and management.
and management of all significant social, health, safety, environmental and • Support the development and implementation of scientifically sound, inclusive
economic impacts associated with our activities. and transparent procedures for integrated approaches to land use planning,
• Ensure regular review and updating of risk management systems. biodiversity, conservation and mining
• Inform potentially affected parties of significant risks from mining, minerals and
metals operations and of the measures that will be taken to manage the potential Principle 08
risks effectively.
• Develop, maintain and test effective emergency response procedures in Facilitate and encourage responsible product design, use, re-use, recycling and
collaboration with potentially affected parties. disposal of our products
• Advance understanding of the properties of metals and minerals and their
lifecycle effects on human health and the environment.
Principle 05
• Conduct or support research and innovation that promotes the use of products
Seek continual improvement of our health and safety performance and technologies that are safe and efficient in their use of energy, natural
resources and other materials.
• Implement a management system focused on continual improvement of all
aspects of operations that could have a significant impact on the health and • Develop and promote the concept of integrated materials management
safety of our own employees, those of contractors and the communities where we throughout the metals and minerals value chain.
operate. • Provide regulators and other stakeholders with scientifically sound data and
• Take all practical and reasonable measures to eliminate workplace fatalities, analysis regarding our products and operations as a basis for regulatory
injuries and diseases among our own employees and those of contractors. decisions.

15 16
 annexure - II annexure - III
ICMM principles further indicators reference
(not reported and not applicable)

• Support the development of scientifically sound policies, regulations, product

standards and material choice decisions that encourage the safe use of mineral
ECONOMIC
and metal products.
EC8 MSPL has a proven track record of undertaking various community projects
(investment in infrastructure) to develop local communities and local
Principle 09 economies, thus satisfying the needs of local community without the
intention of direct benefit from the same. (Refer booklet 5 / pg. 19 of section
Contribute to the social, economic and institutional development of the communities
Nurturing Employees). Hence, reporting on this indicator is not applicable to
in which we operate
MSPL as it does not encourage commercial, in-kind or pro bono engagement.
• Engage at the earliest practical stage with likely affected parties to discuss and
respond to issues and conflicts concerning the management of social impacts.
ENVIRONMENT
• Ensure that appropriate systems are in place for ongoing interaction with affected
parties, making sure that minorities and other marginalised groups have EN15 MSPL has obtained all required environmental clearances from the national
equitable and culturally appropriate means of engagement. government to perform mining activity in the specified area which confirms
• Contribute to community development from project development through that the activity is safe and does not possess any threat to the environment.
closure in collaboration with host communities and their representatives. Therefore MSPL's activity does not pose any threat to environment and
accordingly this indicator is not applicable to report.
• Encourage partnerships with governments and non-governmental organisations
to ensure that programs (such as community health, education, local business EN25 MSPL practises efficient water management and treatment system. No water
development) are well designed and effectively delivered. is discharged into any water bodies, rather MSPL took efforts and avoided
• Enhance social and economic development by seeking opportunities to address run-offs affecting surrounding habitats and water bodies by constructing
poverty. earthen bunds and dykes. Thus this indicator is not applicable to MSPL.

EN27 As mined iron ore is MSPL's main product, its operations / products do not
Principle 10 involve / require any packaging material, hence this indicator is not
applicable for MSPL.
Implement effective and transparent engagement, communication and independently
verified reporting arrangements with our stakeholders EN28 This indicator is not reported in this report because there was no incident of
non-compliance, either with environmental laws and regulations or any
• Report on our economic, social and environmental performance and contribution other regulation. Keeping in mind the complex and sensitive nature of
to sustainable development. business, MSPL ensures compliance at all levels of mining operation. As a
• Provide information that is timely, accurate and relevant. result of better practices in place it does not fall into any circumstances of
non-compliance that may lead to clean-up obligations or other costly
• Engage with and respond to stakeholders through open consultation processes.
environmental liabilities.

EN30 Expenditure was incurred by MSPL towards waste management system;

however MSPL made considerable investments towards training personnel
on environment and some services for environmental management. In view
of the same MSPL did not incur any extra costs towards environmental
management, thus this indicator has not been reported in this report.

LABOUR PRACTICES AND DECENT WORK

LA 4 No agreements (trade unions etc.) exist at MSPL's organisation level or at
work place. Also MSPL did not come across any issues related to the same.
MSPL does understand the importance of collective bargaining agreement
and is working on the same to have a system in place.

LA 5 Mining operation does not undergo / involve significant operational changes

as the nature of operations is standard. If technology improvement happens
that may lead to significant operational changes, MSPL employees will be
trained and communicated on the same. Collective bargaining is yet to be in
place for MSPL, hence this indicator is not applicable and not reported.

17 18
 annexure - III
further indicators reference
(not reported and not applicable)

LA 14 This indicator is not applicable as MSPL is an equal opportunity employer

and benefits for all employee remains same (no difference in ratio arises).

HUMAN RIGHTS
HR1 & MSPL have plans to extend its responsibility along the supply chain and will
HR2 demand statutory compliance from all its suppliers. This indicator is not
The Board of Directors
reported as screening on human rights and related practices for the supply
MSPL Limited
chain / significant stakeholders is in the planning stage.
Baldota Enclave
HR6 As part of MSPL's Human Rights policy, it does not employ child labour. Thus Abheraj Baldota Road
this indicator is not applicable for MSPL. Hospet 583203
Karnataka, India
HR8 MSPL security personnel / guards are contracted. MSPL ensures that guards
are briefed and trained on basic issues by the contract. MSPL has planned to
record such training and will present enhanced report in forth coming years. OUR ENGAGEMENT

HR9 This indicator is not applicable as no separate group namely indigenous We, Ernst & Young Pvt. Ltd. (EY) have been engaged by MSPL Limited (the 'Company')
people exists. The villages and community, which come under vicinity of to provide assurance to its Corporate Sustainability Report 2008-2009 (the 'Report').
MSPL's operation, are being taken care and their needs are effectively
addressed. MSPL will have policy for handling grievances of employees, The Company's management is responsible for the contents of the Report, including
customers and other stakeholder issues. identification of key sustainability issues, engagement with stakeholders and its
presentation. EY's responsibility is to provide an independent assurance on the Report
content as described in the scope of assurance.
SOCIETY
Our responsibility in performing our assurance activities is to the management of the
SO2 & MSPL functions with vigilance and carries out preventive measures to
Company only, and in accordance with the terms of reference agreed with the Company.
SO3 eliminate any inconsistencies in business processes which includes
We do not therefore accept or assume any responsibility for any other purpose or to any
awarding and execution of contracts. It plans to comply with these indicators
other person or organisation. This assurance statement should not be taken as a basis
and report them in the future.
for interpreting the Company's performance across the scope of issues covered in the
SO6 Refer EN28 of this section (G3 Content Index) wherein the explanation has Report.
SO7 & been provided for not reporting.
SO8 REPORTING CRITERIA AND ASSURANCE STANDARD

The Company has mentioned its intention of applying the GRI 2006 (GRI-G3) Guidelines
PRODUCT RESPONSIBILITY issued by Global Reporting Initiative (GRI) for the Report.

PR3 MSPL is dedicated to minimising the risk and impact associated with mining Our assurance is in accordance with International Federation of Accountants'
(including waste management) and also its R&D efforts are aimed at International Standard for Assurance Engagements Other than Audits or Reviews of
reducing their environmental impact to enhance sustainability. This Historical Financial Information (ISAE 3000), and our conclusions are for 'limited'
indicator is not reported as MSPL's products and service does not involve assurance as set out in ISAE 3000.
any packaging.

PR7 Refer EN28 of this section (G3 Content Index) wherein the explanation has OUR SCOPE
PR8 & been provided for not reporting.
PR9 The scope of our assurance covers sites and indicators considered relevant with respect
to the Company's operations and their impact on Sustainability, and include:

Data and information related to the Company's sustainability performance

reported for the period 1st April 2008 to 31st March 2009;

The Company's internal protocols, processes, and controls related to the

collection and collation of sustainability performance data;

19 20
 Review of selected data streams pertaining to GRI indicators to determine the The Company needs to further strengthen their sustainability data base
level of accuracy of reported data. management system for collection and collation of data across all operations
and functions;
LIMITATIONS AND EXCLUSIONS
The Company has developed a Sustainability Policy this year, to lend further
Our assurance scope excludes: focus on sustainability performance;

Aspects of the Report other than those mentioned above; The Company could set up a specific internal task force which could be cross
functional to effectively implement the sustainability policy through defining
Data and information outside the defined reporting period (1st April 2008 to key targets/framing score cards.
31st March 2009);
OUR CONCLUSIONS
The Company's statements that describe expression of opinion, belief,
aspiration, expectation, aim or future intention provided by the Company; On the basis of our scope of review and methodology, nothing has come to our
attention that would cause us not to believe that:
Data and information on economic and financial performance of the
Company. The Report presents the Company's sustainability performance across its
'triple bottom line' covering economic, environmental and social indicators
OUR APPROACH and the sustainability challenges faced by it.

The nature and scope of our work was based on our professional judgment and we have The report contents are presented fairly, in material respects, in keeping with
performed all the procedures deemed necessary to provide a basis for our conclusions. the Global Reporting Initiative's 2006 Sustainability Reporting (GRI-G3)
Within the scope of our engagement, we requested evidence on a sample basis based on principles and criteria.
materiality criteria.
The reported information on non-financial sustainability parameters are
The approach to the assurance exercise included interaction with key personnel of the supported by documentary evidences and internal records.
Company to identify the processes in place to capture sustainability performance data
and information as per GRI 2006 (GRI-G3) guidelines, followed by reviews of the
processes for collecting, compiling, and reporting on these indicators at the corporate
and operating unit levels. for Ernst & Young Private Limited

EY's team visited the Company's corporate office in Hospet, Vyasankere Iron Ore Mines
(VIOM) in Vyasankere village and Export Oriented Units (EOUs) (1&2) in Vyasankere and
Ingaligi villages respectively in Hospet taluka, Bellary district, Karnataka, to review the
systems for managing and reporting on sustainability activities. Information pertaining
to other locations was made available to us at the Company's corporate office in Hospet.
Sudipta Das
Assumptions made for arriving at reported numbers against the sustainability Partner
performance indicators were understood and necessary clarifications obtained.
Stakeholder engagement process was reviewed through interviews with concerned September 12, 2009
personnel. Sufficient, relevant and appropriate evidences to support the conclusions in Kolkata
this assurance report were obtained from the Company, to support our conclusion.

OUR ASSURANCE TEAM

Our assurance team, comprising of multidisciplinary professionals, has been drawn

from our Climate Change and Sustainability Services that undertakes similar
engagements with a number of significant Indian and international businesses.

OUR OBSERVATIONS

During the course of our work, we have observed that:

The Company has made efforts to report on its sustainability performance as

per A+ application level of the GRI 2006 (GRI-G3) guidelines;

A member firm of Ernst & Young Global Limited

Regd. Office: 22, Camac Street, Block 'C', 3rd Floor, Kolkata - 700 016.

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