The cathode production at our Copper – Zambia business was 150,000 tonnes in FY 2008, an increase of 5.6% compared with FY 2007. The production of 62,000 tonnes from the tailing leach plant in FY 2008 was consistent throughout the year and increased 51.2% compared with FY 2007 as a result of continuous improvement initiatives and operational efficiencies. We have taken a series of measures to improve the mine output which includes pre-stripping of open-pit mines, improved development at underground mines and refurbishment of equipment. Operating costs remained under pressure due to higher manpower costs, higher energy prices, lower mine production and higher expenditure on equipment refurbishment. Work on the Konkola Deeps mine expansion project is progressing well to achieve our target of completing the mid-shaft loading station by mid-2009. The Nchanga smelter expansion project remains on track for commissioning by mid-FY 2008.

The performance of our Zinc business was excellent, with the highest ever mined metal and refined metal production in FY 2008, an increase of 9.1% and 22.4% respectively compared with FY 2007. The new Chanderiya II Hydro zinc smelter was commissioned in December 2007, three months ahead of schedule, achieving its rated capacity within the very first quarter of its commissioning. The production of lead and silver were also higher in FY 2008, primarily due to higher output from the Ausmelt plant and better recoveries. Operating costs were lower in Indian rupee terms due to higher operational efficiencies, increase in volumes and better sulphuric acid realisations, which were partially offset by higher energy prices and general inflationary pressures.

The ongoing exploration programme at HZL has yielded significant success with an increase of 28.7 million tonnes to its reserves and resources, prior to a depletion of 5.8 million tonnes in FY 2008. Contained zinc-lead metal has increased by 4.0 million tonnes, prior to a depletion of 0.6 million tonnes during the same period. Total reserves and resources at 31 March 2008 were 232.3 million tonnes containing 27.5 million tonnes of zinc-lead metal.

We successfully completed our 88,000 tpa zinc debottlenecking project two months ahead of schedule, increasing our total metal production capacity to 754,000 ktpa.

We acquired Sesa Goa, India’s largest producer-exporter of iron ore in April 2007. Sesa produced 12.4 million tonnes of iron ore on a 12-month basis, its highest ever and an increase of 17.0% compared with FY 2007, primarily as a result of comprehensive improvement programmes to enhance operational efficiencies and matching shipments. Our attributable production post acquisition was 11.5 million tonnes. During FY 2008, we improved the ratio of our spot sales to long-term contract ratio as a result of placing all our incremental production in the spot markets and undertaking various marketing initiatives.

Work on the 2,400 MW independent power plant at Jharsuguda is progressing well and the project is on schedule for progressive commissioning from December 2009.

Capital employed (excluding project capital work in progress) increased from $2,328.7 million to $4,105.8 million, an increase of $1,777.1 million. This was primarily due to the acquisition of the Iron Ore business and the capitalisation of the Chanderiya II Hydro zinc smelter more than offsetting the reduction in working capital. The increase in capital employed, together with the fall in zinc LME prices and the appreciation of the Indian rupee and change in profit mix contributed to a reduction in ROCE (excluding project capital work in progress) to 45.6% in FY 2008, compared with 78.5% in FY 2007, despite significant benefits arising from improvements in operational efficiencies and higher volumes.

We generated record free cash flows of $2,216.9 million in FY 2008, an increase of $712.7 million compared with FY 2007, primarily due to reduction in working capital. Free cash flow to EBITDA for FY 2008 was 73.6% compared with 55.6% in FY 2007.

We continued our programme of consolidating our holding in our major subsidiaries with the acquisition of ZCI’s 28.4% stake in KCM in April 2008 for a consideration of $213.2 million.

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