VEDANTA RESOURCES plc

2017 ANNUAL GENERAL MEETING

MONDAY, 14 AUGUST 2017 AT 3:00 PM

LINCOLN CENTRE, 18 LINCOLN'S INN FIELDS, LONDON WC2A 3ED

CHAIRMAN'S INTRODUCTION

Good afternoon ladies and gentlemen, I am delighted to welcome you all to the 2017 Annual General Meeting of the Company.

During the financial year 2016 the company remained focused in challenging market conditions.

It is therefore a pleasure for me to report that financial year 2017 was a story of price recovery and exciting potential. Since founding the company, I have always said that our focus is on building a diversified natural resources company that creates wealth to ultimately support economic progress for communities.

We are now the sixth largest, and fastest growing, diversified resources company in the world. And with a strong operational performance and supportive market environment, I am proud to report we continue to deliver encouraging numbers. Since our IPO in 2003, we have returned over US$2 billion to all shareholders and generated a total shareholder return of over 130%.

During the year, Cairn India merged with Vedanta Limited, further simplifying the Group structure. With commodity markets turning positive, I look to the future with confidence due to our portfolio of world class, low cost assets.

India and Africa, our key markets, present an exceptional potential for further growth. Vedanta offers a unique opportunity to invest in India's growth story. Whilst other companies look to China or the rest of Asia, we have a unique advantage that we sell the majority of our production within India. Being the fastest growing economy in the world, it is an exciting place to be. Honourable Prime Minister Modi has spearheaded significant economic reforms. Steady progress is being made and India is fast becoming the prime investment destination. The 'Make in India' programme is set to drive domestic growth by encouraging the development of the manufacturing industry, increasing demand for metals and energy. Vedanta Limited is one of the largest taxpayers in India, contributing around US$6 billion in FY2017 to the exchequer, including dividends from subsidiary Hindustan Zinc, to the Government.

We also have a long-standing presence in Africa, where we have invested approximately US$4 billion since 2004. I was pleased to accompany India's Prime Minister on a visit to South Africa last year as part of his business delegation and it was very encouraging to see the progress and opportunities in their country. 

Safety and sustainability continue to be a personal priority, as they are across the Group. We are making good progress in our journey towards Zero Harm, Zero Waste and Zero Discharge. We have not yet achieved 'zero harm' but we will continue pushing and we will not be satisfied until we attain it. We will continue working with the same spirit and enthusiasm to realise our ultimate goal.

Climate change is one of the biggest challenges of our day. Last year, Prime Minister Modi committed India to COP 21. We too take our responsibility to society seriously and will continue contributing to the communities in which we operate. This year we invested a total of US$18 million on social projects, benefitting over 2 million people.

I strongly believe that the empowerment of women and the development of our young children are fundamental to any modern, progressive society. I am personally involved in our Nand Ghar project, which consists of modern welfare centres, providing pre-primary education and nutrition for children and education for rural women of India. We have already built 100 centres and plan to roll out around 4,000 Nand Ghars across India by 2019.

In July, we held our third annual Sustainable Development Day in London, which saw its highest attendance to date. I am pleased to see the positive results of our ongoing open dialogue with NGOs, governments and indeed all of our stakeholders.

On behalf of the Board, I would like to thank all our employees for the immense contribution they have all made in helping the company to grow and become even stronger. In particular, I would like to thank our CEO, Tom for all his hard work and significant contribution to the Company. As you may know, Tom has made a decision to rejoin his family in the USA and this will be his last AGM with us. I wish him all the best in his future projects. I am leading the search for a successor with the right leadership qualities and experience to continue the Group's strategy and the replacement will be announced in due course.

As announced earlier in the year, Euan Macdonald, Non-Executive Director and Chairman of the Remuneration Committee and Sustainability Committee, retired from the Board. I would like to thank Euan for his huge contribution to sustainability at Vedanta. Katya Zotova, has become the Chair of Sustainability Committee, and is driving the board's strategy of zero harm and I look forward to working closely with her.

In line with regulatory guidance, Mr Aman Mehta will retire at the conclusion of today's AGM and I would like to thank him for his sound guidance and commitment over the years. Ravi Rajagopal will take over from Mr Aman Mehta as audit committee chairman. He comes with a wealth of experience across finance and operational roles in a FTSE 100 company. Mr Deepak Parekh will replace Mr Aman Mehta as senior Independent director as announced earlier.

Edward Story has been appointed as a Non-Executive Director and a member of the Audit Committee with effect from 1 June 2017. His background and experience in the oil and gas industry will greatly benefit the Company.

On behalf of the Board and the company, I would like to thank all of our investors, employees, communities and the governments of the countries where we operate. Your support is greatly appreciated. I look forward to continuing to work together, guiding Vedanta's growth and creating long-term value for all of our shareholders. All the while we will continue to focus on the development of our employees and communities where we operate. It is fair to say, I am looking towards the financial year 2018 with more confidence than ever.