ANNUAL REPORT !# !## For personal use only - ASX REPORT !"## ADITYA BIRLA MINERALS 5 CONTENTS COMPANY PROFILE 2 HIGHLIGHTS 3 CHAIRMAN’S REPORT 4 ... Both Aditya Birla Minerals and

ANNUAL REPORT !"#" $ !"##

Leadership through Consolidation...

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CORPORATE DIRECTORY

DIRECTORS

Mr Debu Bhattacharya Chairman

Dr Sunil Kulwal

Mr Maurice Anghie

Mr Narayan Krishnan

Dr Suresh Bhargava

Mr Mysore Prasanna

Mr Dilip Gaur

COMPANY SECRETARY

Mr Peter Torre

REGISTERED AND PRINCIPAL OFFICE

Aditya Birla Minerals Limited

OFFICE

POSTAL ADDRESS

CONTACT

+61 8 9366 8800+61 8 9366 8805

[email protected]

SHARE REGISTRY

Computershare Investor Services Pty Limited

+61 8 9323 2000+61 8 9323 2033

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ANNUAL REPORT !"## ADITYA BIRLA MINERALS

5

ADITYA BIRLA MINERALS

CONTENTS

COMPANY PROFILE 2

HIGHLIGHTS 3

CHAIRMAN’S REPORT 4

REVIEW OF OPERATIONS 6

CORPORATE GOVERNANCE 21

DIRECTORS' REPORT 26

INCOME STATEMENT 37

STATEMENT OF COMPREHENSIVE INCOME 38

STATEMENT OF FINANCIAL POSITION 39

STATEMENT OF CASH FLOWS 40

STATEMENT OF CHANGES IN EQUITY 41

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT 42

DIRECTORS’ DECLARATION 80

AUDITOR’S INDEPENDENCE DECLARATION 81

INDEPENDENT AUDITOR’S REPORT 82

SHAREHOLDER INFORMATION 84

ANNUAL REPORT !"##

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Aditya Birla Minerals (ASX: ABY) is a copper mining company in Australia with operations in Western Australia and Queensland. ABY conducts copper mining and exploration activities at the Nifty Copper Operations located in the Great Sandy Desert, Western Australia and the Mt Gordon Copper Operations near Mt Isa, Queensland.

Copper concentrates produced from its copper mines are shipped to Hindalco Industries Limited’s (Hindalco) copper smelter in India. Hindalco is a member of the Aditya Birla Group, one of India’s largest industrial conglomerates.

Hindalco has a 51% shareholding in ABY and is Asia’s largest integrated aluminium producer and growing copper producer.

Since listing on the Australian Stock Exchange in 2006, ABY management has turned around the performance of these projects resulting in substantial increases and improvements

Both Aditya Birla Minerals and Hindalco have a reputation for copper investment

opportunities that exceed and extend mining capabilities.

Aditya Birla Minerals has a team of highly skilled mining and copper exploration industry professionals, each adhering to the Company’s values: commitment, integrity, speed, seamlessness and passion.

COMPANY PROFILE

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21 October 2010

Decision to recommence mining operations at Mt Gordon.

22 December 2010

The Minister for Mine's decision to terminate applications of third parties in respect of ground, the subject of Birla Nifty's expired exploration tenements, will now likely facilitate the return of the lost ground to the Company in due course.

4 May 2011

Declared a fully franked dividend of 9 cents per share.


2010/2011 HIGHLIGHTS

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CHAIRMAN'S REPORT

" Your company’s financial performance for FY11 has been rewarding and encouraging. The consolidated revenue stood at $463 million - up 21% from the previous year."

Dear Shareholders,

Global economic recovery continued to gain traction compared to this time last year. There is a fundamental shift underlying the copper market’s demand dynamics, especially the demand from emerging economies. FY11 witnessed a remarkable rise in copper prices – powered by strong underlying demand, supply constraints and enhanced risk

front-runner among the commodities that have emerged as an investment asset class over the past few years. This can be a double-edged sword in terms of the heightened volatility for producers and consumers.

an unprecedented appreciation of Australian Dollar vis-à-vis USD. This diluted, to some extent, the advantage of strong copper prices for your company.

Against this backdrop, your company delivered a strong performance in FY11 given the fact that Mt Gordon operations remained under care and maintenance. Improvements in

the highest ever copper production from Nifty operations. Through hard work and various initiatives, including those that were initiated during the Global Financial Crisis of 2009, the Company has largely managed to offset the impact of the

operational frame, your company is on a strong footing to

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and encouraging. The consolidated revenue stood at $463 million - up 21% from the previous year. The growth was driven by higher

million in FY11, recording a marginal decline from $61 million in the previous year. The decline was entirely on account of the expenditure incurred towards environmental compliance for Mt Gordon that was under care and maintenance throughout the year. Nevertheless, the restart of Mt Gordon operations and on the strength of strong copper prices for the year, your company is set to improve its operational and

Fundamental outlook for copper appears to be bullish from a medium-term perspective with certain emerging markets crossing over the

grades and supply constraints may maintain the global copper demand-

improvements and expected increase in production.

Further, your company continues to explore and evaluate opportunities to grow its core business. With a strong balance sheet, the Company is placed quite favourably to pursue these opportunities.

I would like to thank Aditya Birla Minerals’ Board of Directors, its management team and my personal appreciation of the dedication and uncompromising commitment of each and every employee of Aditya Birla Minerals during this journey.

I am looking forward to a very successful year for Aditya Birla Minerals and thank you for your continued support. We are committed to maximizing shareholder value through our copper projects in an environment that continues to indicate a strong outlook for copper.

Debu Bhattacharya

CHAIRMAN


Debu Bhattacharya

CHAIRMAN

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CONSOLIDATED OPERATIONS:

$381.4 million during the previous year, an increase of $81.2 million. This improvement was mainly attributable to higher sales volume coupled with improvement in realisation from

in FY11. Correspondingly, cost of goods sold has increased

58,568 tonnes in FY11 is a result of higher copper production

tonnes in FY10 to 59,661 tonnes in FY11, mainly contributed

by Nifty operations whilst Mt Gordon operations remained

under care and maintenance for majority of the year after the

Esperanza low grade (ELG) waste dump trials were ceased

in June 2010.

benchmarks. These benchmarks include the highest annual

copper production, highest annual ore mined and highest annual

ore processed. These achievements are discussed in further

details under the Nifty Copper Operations section.

successfully maintain per unit cost at par with FY10 despite tremendous cost pressures experienced following recovery from the Global Financial Crisis.

Weakening of the US dollar against the Australian dollar which has resulted in a net foreign exchange loss of $6.5 million in FY11 compared to a net foreign exchange gain of $26.6 million in FY10; and

Additional costs incurred by Mt Gordon in relation to the ELG waste dump trials from April to June 2010 and environmental related activities.

As at 31 March 2011, the Group held cash and cash equivalents of $144.0 million. Surplus cash generated from operations was placed in short-term high-yield investments. Capital expenditure increased from $10.3 million in FY10 to $15.6 million in FY11.

REVIEW OF OPERATIONS

59,000

60,000

58,000

54,000

55,000

56,000

57,000

1.95

Tonn

es

FY09-10 FY10-11

TOTAL COPPER PRODUCED - TONNES

58,034

1,627

56,450

643

Nifty Sulphide Operations

Mount Gordon Operations

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ANNUAL REPORT !"##

" During FY11, Nifty operations have created several significant benchmarks. These benchmarks include the highest annual copper production, highest annual ore mined and highest annual ore processed."

7

ADITYA BIRLA MINERALS

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NIFTY COPPER OPERATIONS

Underground Production

Developmental operations for FY11 progressed well with

4,153m achieved as compared to 4,095m in FY10. 132,990

tonnes of waste from development operations was also

trucked to the surface during the year.

Ore production for FY11 was the highest ever achieved

tonnes of copper in ore. This represents an increase of 3%

over the previous year and an increase of 33% over the last

three years. Initiatives taken throughout the year to increase

a substantially improved truckload factor have contributed to

this achievement.

with several further improvements being made including commissioning of an improved paste conveying system. With improved production from the paste plant, sand

will have a positive effect on costs as well as improving

encountered. Further work is planned for the year ahead to further optimise the paste plant performance. In FY11, a total

last year.

Orders have been placed to replace majority of the ageing

from the second quarter of FY12.

Further development is planned at Nifty underground to access areas outside the “Checker Board” sections of the mine.

REVIEW OF OPERATIONS

2.50

3.00

2.00

0.00

0.50

1.00

1.50

2.191.65 1.95 2.13Milli

on To

nnes

FY07-08 FY08-09 FY09-10 FY10-11

TOTAL ORE MINED - MILLION TONNES

90.0

95.0

85.0

65.0

50.0

55.0

60.0

70.0

75.0

80.0

Perc

enta

ge

Jan2010

Mar2010

May2010

Jun2010

Jul2010

Sep2010

Nov2010

Jan2011

Mar2011

AVAILABILITY AND UTILISATION OF L&H FLEET

Utilisation of Available Time

Availability

Linear (Utilisation of Available Time)

Linear (Availability)

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Concentrator

During FY11 Nifty recorded the highest ore processed at

representing an increase of 10% over the previous year and 39% over the last three years. Factors contributing towards this record performance include improvement in the

plant availability.

Copper recovery has been stabilised around the 93% mark with a slight decline from 93.54% in FY10 to 93.13% in FY11.

As a result, copper production increased to 58,034 tonnes in FY11 as against 56,450 tonnes in FY10 despite the fall in head grade. The decline in head grade is in line with the long term mine plan.

" Oxide operations remained under care and maintenance for the entire year as we continue to selectively manage our portfolio of assets based on their cost-benefit ratio."

2.50

2.00

1.50

1.00

Milli

on To

nnes

FY07-08 FY08-09

TOTAL ORE PROCESSED - MILLION TONNES

FY09-10 FY10-11

2.271.63 1.91 2.06

93

94

92

88

89

90

91

FY07-08 FY08-09

CONCENTRATE RECOVERY %

FY09-10 FY10-11

93.54

89.71

91.89

93.13

9

60,000

55,000

50,000

45,000

40,000

35,000

Tonn

es

30,000

25,000

20,000

15,000

10,000

FY07-08 FY08-09 FY09-10 FY10-11

Total Copper Produced Head grade

58,03453.397 49,600 56,450

3.55% 3.00% 2.77%2.85%

4.00%

3.50%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%

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NIFTY OXIDE OPERATIONS

The oxide operations remained under care and maintenance for the entire year as we continue to selectively manage our

of Nifty Oxide Operations is under evaluation.

MT GORDON COPPER OPERATIONS

Production

Mt Gordon operations continued under care and maintenance

trial for processing of Esperanza Low Grade (ELG) ore in June 2010. In light of improvement in the copper prices and favourable outlook for copper, a decision was made during

underground operations.

Various site preparatory and underground rehabilitation works were carried out with activities picking up towards

appointed to carry out underground mining operations. Approval to recommence the underground operations was given by the Department of Employment, Economic Development and Innovation in two stages. Underground mine and processing plant were commissioned in early April 2011 after Stage 1 approval was obtained in March 2011. Stage 2 approval was subsequently received in May 2011 to conduct full scale and unrestricted mining operations. It is

operations will ramp up to full capacity.

MAROOCHYDORE

At Maroochydore North, low level copper and zinc values were intersected in all of the Reverse Circulation (RC) drill

A re-interpretation of the gravity survey work carried out in 2009 is underway. The intent is to identify subtle gravity

designing further drilling activities. A diamond drilling

sulphide targets throughout the general area.

Diamond drilling activities planned for the coming year will target the potential for sulphide extensions to the existing Maroochydore resource.

RESOURCES AND RESERVES

Changes to the resources and reserves are as a result of additional drilling, underground mining undertaken and life of mine planning and ongoing re-interpretation by Aditya Birla Minerals Limited of all mineralised zones within the mine area and depletion through mining.

Nifty

Resources were estimated as at 31 March 2011 with the resource models utilised from March 2010, which were previously audited by Pinock Allan and Holt (PAH).

Production during the previous twelve months was depleted from the Nifty Sulphide Model and the Nifty sulphide resource is now reported as 32.0Mt @ 2.5% Cu. The depletion work

Mining and Geological Services, an independent competent party. A substantial surface drilling program commenced in

REVIEW OF OPERATIONS(CONTINUED)

" In light of improvement in the copper prices and favourable outlook for copper, a decision was made during the first half of the year to recommence the Mammoth underground operations."

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late 2010 with two rigs further delineating both the South and West areas of the resource. This new information will be available to be incorporated into a new geological model for the next resource update.

Consultants Pty Ltd (AMC) to produce a new detailed Life of Mine Plan for the Nifty sulphide operations. This detailed work incorporated additional areas together with the existing “Checker Board” production centre. The March 2011 ore reserve for the sulphide portion of the operations is 20.0Mt @ 2.14% Cu for 426kt of contained copper metal. The Nifty sulphide ore reserve calculation is based on a copper price of US$ 3.63/lbs and cut-off grade of 1.2% Cu. There has been a net increase in sulphide mining reserve tonnage of 4.3Mt

allowing for depletion of the FY11 mine production of 2.2Mt.

Heap Leach inventory tonnage has not changed from the previous year and remains estimated at 0.4%Cu. Approximately 62kt of copper is expected to be recovered from de-sliming and re-mining the crushed ore on the leach pads.

Mt Gordon

As the Mt Gordon underground has been under care and maintenance for the past year, no change has occurred to the resource. The resource remains at 22.1 million tonnes at 2.5%Cu.

Similarly Mount Gordon reserves also remain at 3.0 million tonnes at 2.4%Cu. The low conversion of resources to reserves is a function of drill density and lack of infrastructure to access deeper portions of the mine.

The following tables illustrate the resource and reserve statements of each subsidiary as at 31 March 2011.

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Tabl

e -

1

Ad

itya

Bir

la M

ine

rals

Lim

ite

d M

ine

ral

Re

sou

rce

s as

at

31

Marc

h 2

01

1

$C

uto%

G

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Mea

sure

d R

esou

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Indi

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d R

esou

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Infe

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Res

ourc

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tal R

esou

rce

%

Tonnes

(M

t)C

u%

Co

%T

onnes

(M

t)C

u%

Co

%T

onnes

(M

t)C

u%

Co

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onnes

(M

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u%

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%

NIF

TY C

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and

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21.

14.

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and

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00.

00.

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b T

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pergen

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1

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10

.51.

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ulph

ide

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1.

81.

832

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5

Brok

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tock

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hide

N/A

0.0

0.0

0.0

0.0

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00.

00.

00.

0

Su

b T

ota

l Su

lph

ide

2.

6

4.5

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1.

81.

8

32.0

2.5

To

tal

Min

era

l R

eso

urc

e

28

.92

.4

8.6

1.7

5

.01

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42

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p Le

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ntor

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0.5

0.

5

MT

GO

RD

ON

CO

PPER

OPE

RAT

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S

In s

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ulph

ide

1.5

2.4

2.4

9.

92.

322

.02.

5

Brok

en O

re S

tock

s -

Sulp

hide

N/A

0.0

2.1

0.1

3.5

0.

00.

00.

13.

3

To

tal

Min

era

l R

eso

urc

e

2.4

2.4

9

.82

.7

9.9

2.3

2

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Mar

ooch

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r Pr

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t

To

tal R

eso

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up

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0.5

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8.4

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42

.30

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20

.70

.80

.04

TO

TA

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excl

Nift

y he

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ach

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31

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.9

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vent

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to

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esou

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.

to t

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tyle

of m

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atio

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he t

ype

of d

epos

it an

d th

e ac

tivity

und

erta

ken

to q

ualif

y as

a ‘C

ompe

tent

Per

son’

und

er t

he JO

RC

Cod

e fo

r R

epor

ting

of M

iner

al R

esou

rces

and

Ore

Res

erve

s (2

004

Editi

on).

Mr

Bulle

n ha

s gi

ven

his

cons

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to t

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clus

ion

of t

he m

ater

ial i

n th

e fo

rm a

nd c

onte

xt in

whi

ch it

app

ears

. M

r Bu

llen

was

an

empl

oyee

of A

dity

a Bi

rla

Min

eral

s Li

mite

d du

ring

the

per

iod

of t

he 2

010

repo

rtin

g.

rele

vant

to

the

styl

e of

min

eral

isat

ion,

the

typ

e of

dep

osit

and

the

activ

ity u

nder

take

n to

qua

lify

as a

‘Com

pete

nt P

erso

n’ u

nder

the

JOR

C C

ode

for

Rep

ortin

g of

Min

eral

Res

ourc

es a

nd O

re R

eser

ves

(200

4 Ed

ition

). M

r Bu

tler

has

give

n hi

s co

nsen

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the

incl

usio

n of

the

mat

eria

l in

the

form

and

con

text

in w

hich

it a

ppea

rs.


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Table - 2

Aditya Birla Minerals Limited Mineral Reserves as at 31 March 2011

$Cuto% Grade Proven Reserve Probable Reserve Total Reserve

%Tonnes

(Mt) Cu%Tonnes

(Mt) Cu%Tonnes

(Mt) Cu%

NIFTY COPPER OPERATIONS

In situ Oxide and Supergene 0.4 3.0 1.1 4.0 1.1 3.2 1.1

Broken Ore Stocks - Oxide and Supergene N/A 0.0 0.0 0.0 0.0 0.0 0.0

Sub Total Oxide and Supergene 3.0 1.1 4.0 1.1 3.2 1.1

In situ Sulphide 1.2 16.8 2.2 3.2 2.1 20.0 2.1

Broken Ore Stocks - Sulphide N/A 0.0 0.0 0.0 0.0 0.0 0.0

Sub Total Sulphide 16.8 2.2 3.2 2.1 20.0 2.1

Total Mineral Reserve 19.8 2.0 7.2 1.6 23.2 2.0

Heap Leach Inventory 0.4 0.4

MT GORDON COPPER OPERATIONS

In situ Sulphide 1.5 0.4 2.3 2.3 2.2 2.3

Broken Ore Stocks - Sulphide N/A 0.0 0.0 0.1 3.5 0.1 3.5

Total Mineral Reserve 0.4 2.3 1.8 2.4 2.3 2.3

The information in this Table that relates to Ore Reserves for the Nifty Sulphide is based on information compiled by Mr Andrew Robb, an employee of AMC Consultants Pty Ltd, and reviewed by Mr Ric Jose an employee of Aditya Birla Minerals Limited. The information in this Table that relates to Ore Reserves for the Nifty Oxide and Mt Gordon operations is based on information compiled by Mr Ric Jose an employee of Aditya Birla Minerals Limited. Mr Andrew Robb is a Fellow of The Australasian

experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a

and Mr Ric Jose consent to the inclusion in the release of the matters based on their information in the form and context in which it appears.

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HEALTH AND SAFETY

Aditya Birla Minerals has a strong commitment to the health and safety of all of its employees and contractors and built- in safe working practices for all activities undertaken by it.

Towards this end we have embedded an Occupational Health and Safety (OH&S) program, focused on risk management, systems compliance and injury management.

The OH&S department that oversees the implementation of the program was re-structured to focus on training of staff to improve skill levels, ensure safe working practices and pro-active risk management by conducting safety audits and systems compliance.

Nifty Health and Safety

The OH&S Department introduced the “Don’t Walk Past” theme, focusing on improving individual safety behaviour and promoting Safety Action Champions.

A series of successful legislation workshops was conducted throughout the year, focusing on the roles and responsibilities of both contractors and the management team. These initiatives combined with the re-invigoration of the Take 5 program and the new roster system of 8/6 have resulted in a massive reduction in the injury frequency rates. The Nifty OH&S Safety Management Plan was developed, endorsed and published as a pre-cursor to the development of the Nifty Safety Management System.


40

35

15

0

5

10

20

25

30

Perc

enta

ge o

f Inj

urie

s

2010 - 2011

Apr2010

May2010

Jun2010

Jul2010

Aug2010

Sep2010

Nov2010

Oct2010

Jan2011

Feb2011

Dec2011

Mar2011

LTI FAIMTI

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The “NextStorm” lightning detection system has been

to enable more accurate distance and frequency detection of lightning strike thereby reducing Concentrator down time during inclement weather.

The Government Traineeship Scheme has continued

also been introduced. The Nifty operations have employed trainers and will deliver the training to employees under a

In addition, three new apprenticeship positions have been granted giving Nifty a total of ten apprentices across its operations to better address the National Skills Shortage areas and to ensure Nifty maintains its position as an Industry Leader; and work towards being an Employer of Choice for existing and potential new employees.

The implementation of the On-Line Learning Management System, Site Document Control and Risk Reduction will be a major focus for the coming year.

Mt Gordon Health and Safety

(MTI) and one lost time injury (LTI) were recorded during

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ENVIRONMENT

Nifty Environment

Nifty environment department was strengthened during the year. In addition, adequate funding for the environmental activities has helped in vast improvement in the relationship with the three main government agencies that regulate the Nifty operations; the Department of Mines and Petroleum (DMP), the Department of Environment and Conservation (DEC) and the Department of State Development (DSD). A good relationship with the regulators is important because

and able to manage its environmental issues in accordance with state legislation, which will ultimately speed up the approvals process for expansions and additional operational and environmental licenses.

This year, Nifty primarily addressed the following environmental non-compliances and issues:

A previous large sulphuric acid spill at the SX/EW acid tanks was completely remediated and closed out.

Approvals from the DEC and the DMP to increase the capacity of the Tailings Storage Facility (TSF) were granted.

A seepage recovery trial at the TSF was started as mandated previously by the DEC.

DMP mandated Directions to Modify (DTMs) were lifted as Nifty complied with the following:

The relocation of Potential Acid Forming (PAF) material to a new location, which removed the opportunity for this material to contaminate the environment with acid mine drainage; and

Improved bunding at the copper concentrator was completed, which will keep process solution from spilling into the environment.

New regulations by the DMP require that Nifty submit a Mine Closure Plan in 2011. In 2010, Nifty completed a Mine Closure Strategy, which recommended several studies which will enable the mine to author and submit a Mine Closure Plan in accordance with the new regulations. Nifty has since

undertaking further studies/trial work which will enable the submission of a mine closure plan by end of 2011.

Mt Gordon Environment

The Mt Gordon operations continue to operate with excess water on the site. A number of water reduction measures were implemented on site during the dry season which resulted in an overall reduction in the amount of water on site. A Transitional Environmental Program (TEP) for the Discharge

of Environment and Resource Management (DERM) to allow Mt Gordon to release volumes of treated water outside the Environmental Authority (EA) limits whilst still meeting its environmental obligations. As a result Mt Gordon was able to release over 1,000 mega litres of treated water into

reduction in the water volume emanating from the site.

However the 2010-11 wet seasons proved to be yet another high rainfall period with over 840 millimeters of rainfall recorded at the Mt Gordon site from 1 November 2010 to 30 April 2011. This resulted in nearly 1,000 mega litres of water being accrued back onto site before the end of the wet season on 30 April 2011. As at 30 April 2011, Mt Gordon

reduce 3,500 mega litres in the next two to three years.

The Board of Directors of ABML formed an Environment Committee for Mt Gordon operations to exercise oversight on environment compliance and to exercise the powers that the Board has in giving directions, approving remedial measures both ordinary and extra-ordinary and authorizing expenditures to be incurred for such compliance. The

Mt Gordon is continuing to take proactive steps to reduce water from site by implementing and trialing new water reduction measure and expanding on those water reduction measures that have proved to be successful. These include but are not limited to increasing the number of high capacity evaporators by four times, doubling the number of evaporation modules in use, installing another two irrigation systems and doubling the volume of treated water used for dust suppression.

Mt Gordon is also planning to apply to the DERM for another

the company to release volumes of treated water outside the EA limits whilst still meeting its environmental obligations.


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" Mt Gordon is continuing to take proactive steps to reduce water from site by implementing and trialling new water reduction measure and expanding on those water reduction measures that have proved to be successful"


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ENERGY EFFICIENCIES OPPORTUNITIES REPORTING &EEO'

Aditya Birla Minerals continues to aspire to meet all energy

testing process and have been implemented yielding a saving of 145,091 GJ for the 2010 – 2011 reporting year. These six energy savings opportunities are being reported upon

have been either incorporated into existing energy savings initiatives or postponed awaiting the installation of process machinery and equipment.

Sixteen energy savings opportunities are in the process of being reviewed for potential implementation. Some of these

motive but an energy saving can be achieved as a result of improvement in processes.

EXPLORATION

Nifty and Maroochydore

The Nifty and Maroochydore copper deposits are located within carbonaceous shales of the Proterozoic Broadhurst Formation. Exploration continues within both the Broadhurst and Isdell Formations for additional base metal deposits. Within the Nifty project area, Reverse Circulation (RC) drilling has been completed at Dromedary, Maroochydore North, Yeppoon and at the GLS prospects.

Maroochydore North assay results from the 2010 RC drilling

grade copper intersections, i.e. 10MRC- 096. 38m @ 0.23% Cu from 49m and 10MRC-102. 25m @ 0.4% Cu from 32m. Clearly additional drill testing down dip from these and other intersections is warranted.

A review of historic drilling results from all the Nifty regional projects is currently underway with follow-up diamond and reverse circulation (RC) drilling in the planning stage for the

With regard to exploration through geophysical methods, the interpretation of a ground based magnetotellurics (AMT)

of the Nifty Syncline. It is proposed that the location of this

A geo-physic consultant is currently carrying out geophysical data searches, reinterpretation and target generation for the Nifty regional project area.

Nifty, Maroochydore and associated regional projects

exploration management.

Additional tenements are under application in an area 20km southwest of the Telfer gold mine.

The exploration focus will be centered on the Telfer copper-gold model.

Aditya Birla Minerals is at an advanced stage in introducing software systems which will bring greater levels of accuracy

the Company.

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Mt Gordon

In December 2010, a V-TEM geophysical survey was completed at Mt Gordon. The processing of the data has now been completed by geo-physic consultants with a full interpretation and ranking of target anomalies at an advanced

the Mt Gordon stratigraphic sequence which adds a level of complexity to interpretation. In this regard geo-physic consultant is being provided with geological mapping data which will highlight the Gunpowder Creek Formation which is a conductive graphitic shale formation.

From the V-TEM survey interpretation so far, the highest priority targets so far lie within the Hueco and Silver Point Prospects.

anomalous response across all channels and the conductivity depth images (CDI) from the later channels give a clear picture of a conductor striking NNE and dipping -50 degrees to the west. Also the size and shape of the EM response indicates that the interpreted conductor is not related directly to the stratigraphy as a stratigraphic conductor would have a response concordant with the bedding planes. This is not the case. This and additional conductors derived from interpretation by SGC will be drill tested during the

anomalous surface geochemistry combined with structural

ECHRC-028 supports follow-up drilling planned for the 2011

At the Gunpowder North Prospect the interpreted V-TEM anomaly is considered to be in a favourable position given that basaltic rocks in the vicinity are considered to be the source rocks for local base metal mineralisation. Also the location of the V-TEM anomaly is adjacent to the mineralised Esperanza Fault and also to a quartzite host rock which is susceptible to brecciation. This locality is a clear drill target.

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OUTLOOK

For a large part of FY11, copper prices continued to rise and after touching an all time high of USD10,190/tonne in February 2011 there was a correction in copper prices amidst concerns relating to the Middle-East crisis, the US economic recovery and the European debt crisis. The emerging economies after a strong growth witnessed signs

the sustainability of the growth momentum. Another major setback was the Japan earthquake, which not only affected the operations of some of the large copper smelters but also resulted in lower consumption from the end user segments such as electronic consumables and automobiles etc.

Notwithstanding all these factors, the copper prices are still hovering at a robust level. The copper demand is expected to increase in the second half of 2011 with China resuming its imports. A possible reconstruction demand in Japan coupled with recovery in the Japanese copper consuming industry can further improve the demand for copper.

did not keep pace with increase in demand. Supply remains constrained due to declining ore grades at many existing operations, production disruptions at several locations and commissioning delays in new projects.

As a result, the average copper prices are expected to remain strong over the next year despite some recent retracement.

Aditya Birla Minerals will continue to pursue cost reduction

also continue to explore growth opportunities, both organic and inorganic.


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The Board of Directors of Aditya Birla Minerals Limited (Birla Minerals) is responsible for the corporate governance of the Company. The Board guides and monitors the business and affairs of the Company on behalf of the shareholders by whom they are elected and to whom they are accountable.

In accordance with the Australian Stock Exchange (ASX) Corporate Governance Council’s (“CGC”) “Principles of Good Corporate

must disclose the extent to which the Company has followed the guidelines during the period. Where a recommendation has not been followed, that fact must be disclosed together with the reasons for the departure.

The Company’s corporate governance practices were in place throughout the year and are compliant, unless otherwise stated, with the Corporate Governance Council’s principles and recommendations, which are noted below.

Principle 1. Lay solid foundations for management and oversight

Principle 2. Structure the Board to add value

Principle 3. Promote ethical and responsible decision making

Principle 4.

Principle 5. Make timely and balanced disclosure

Principle 6. Respect the rights of shareholders

Principle 7. Recognise and manage risk

Principle 8. Remunerate fairly and responsibly

The Board has developed policies and practices consistent with the ASX Recommendations, with such adjustments as the Board believes are appropriate for the particular circumstances of the Company. Consistent with these policies, a summary of the corporate governance policies and practices adopted by Birla Minerals is set out below.

ROLE OF THE BOARD OF DIRECTORS

The Board of Birla Minerals is responsible for setting the Company’s strategic direction and providing effective governance over Birla Minerals’ affairs in conjunction with the overall supervision of the Company’s business with the view of maximising shareholder value. The Board’s key responsibilities are to:

a)

b)

c) based on nomination from Hindalco, the company’s major shareholder, appoint, evaluate the performance of, determine the

d) ensure that the Board continues to have the mix of skills and experience necessary to conduct Birla Minerals’ activities, and that appropriate directors are selected and appointed as required.

The Board has adopted a Board Charter, which sets out in more detail the responsibilities of the Board. The Board Charter sets out the division of responsibility between the Board and management to assist those affected by decisions to better understand the respective accountabilities and contribution to Board and management.

In accordance with Birla Minerals’ Constitution, the Board delegates responsibility for the day–to–day management of Birla Minerals to

as a whole is charged with reporting to the Board on the performance of the Company.

BOARD STRUCTURE AND COMPOSITION

The Board is currently comprised of seven members, of which three are independent non–executive Directors. The Company acknowledges that this does not constituent a majority of independent non-executive directors but believes the Board is of a suitable composition and possesses the necessary skills to govern the Company. The Board will continue to assess the skill set amongst its constituents and make other appointments should the need arise. Details of each directors skill, expertise and background are contained

relationship that could, or could reasonably be perceived to, materially interfere with the Director’s ability to act in the best interests of

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general meeting following their appointment, whichever is longer, without submitting for re–election. Directors are elected or re–elected, as the case may be, by shareholders in a general meeting. Directors may offer themselves for re–election.

meeting of Birla Minerals but is eligible for re–election at that meeting.

The Charter provides that the Board will meet at least six times a year.

Under Birla Minerals’ Constitution, voting requires a simple majority of the Board. The Chairman does not presently hold a casting vote, however if the Board were to later resolve to permit the Chairman to have a casting vote, this would need to be approved by a majority of Directors.

BOARD AND MANAGEMENT EFFECTIVENESS

The Charter contemplates that the Board will annually assess the performance of the Board as a whole, and the individual Directors, as well as the effectiveness of the Board Charter. Responsibility for the overall direction and management of Birla Minerals, its corporate governance and the internal workings of Birla Minerals rests with the Board notwithstanding the delegation of certain functions to the

and its corporate governance policies).

An evaluation procedure in relation to the Board, individual Directors, Board Committees and Company executives has been adopted by

the use of a questionnaire required to be completed by each Board Member, the results of which were summarized to be discussed with the Chairman of the Board and tabled for discussion at a Board Meeting. Similarly each individual director was required to self assess his performance and to discuss the results with the Chairman.

To ensure management, as well as Board effectiveness, the Board has direct responsibility for evaluating the performance of the Chief

FINANCIAL REPORTING, INTERNAL CONTROL AND RISK MANAGEMENT

business objectives. It must be recognised, however, that internal control systems can provide only reasonable and not absolute assurance against the risk of material loss.

The Board reviews the effectiveness of the internal control systems and risk management on an ongoing basis, and monitors risk through the Audit, Compliance and Risk Committee (see the Audit, Compliance and Risk Committee). The Board regularly receives information

operational results, and have been prepared in accordance with applicable accounting standards and

all material respects.

In addition, management has reported to the Board on the effectiveness of the company’s management of its material business risks.

Aditya Birla Management Corporation Limited assists the Board and the Audit, Compliance and Risk Committee by providing a comprehensive internal audit services to the Company.

COMMITTEES OF THE BOARD OF DIRECTORS

The Board has established two permanent Board committees to assist the Board in the performance of its functions:

a)

b) the Remuneration and Nomination Committee.

CORPORATE GOVERNANCE(CONTINUED)

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COMMITTEES OF THE BOARD OF DIRECTORS $CONTINUED%

Investor Relations Committee

Mt Gordon Environment Committee

Each committee has a charter, which sets out the Committee’s purpose and responsibilities. The Committees are described further below.

The names of the members of the two permanent committees are set out in the directors report. Other Committee members are set out under the respective Committees below.

AUDIT, COMPLIANCE AND RISK COMMITTEE

The purpose of the Audit, Compliance and Risk Committee is to provide assistance to the Board in its review of:

a)

b)

c) Birla Minerals’ compliance with legal and regulatory requirements in relation to the above.

The Audit, Compliance and Risk Committee must comprise at least three non–executive Directors that have diverse, complementary backgrounds, with two independent non–executive Directors. The Chairman of the Audit, Compliance and Risk Committee must be an independent non–executive Director.

The members of the Audit, Compliance and Risk Committee are: Mr Anghie (Chairman), Mr Krishnan, and Mr Prasanna.

REMUNERATION AND NOMINATION COMMITTEE

The purpose of the Remuneration and Nomination Committee is to discharge the Board’s responsibilities relating to the nomination and selection of Directors and the compensation of the Company’s executives and Directors.

The key responsibilities of the Remuneration and Nomination Committee are to:

a) ensure the establishment and maintenance of a formal and transparent procedure for the selection and appointment of new

b) establish transparent and coherent remuneration policies and practices, which will enable Birla Minerals to attract, retain and motivate executives and Directors who will create value for shareholders and to fairly and responsibly reward executives.

The Remuneration and Nomination Committee must comprise at least three non–executive Directors, two of which must be independent non–executive Directors. The Chairman of the Remuneration and Nomination Committee must be an independent non–executive Director.

The members of the Remuneration and Nomination Committee are: Dr Bhargava (Chairman), Mr Krishnan, and Mr Bhattacharya.

in the Remuneration Report included in the Directors Report.

INVESTORS RELATIONS COMMITTEE

The purpose of the Investor Relations Committee is to:

a) Monitor and assist management with the strategic direction and overall status of the Company’s investor relations and public

b) Conduct regular informal meetings with senior management of the Company regarding investor relations and public

c)

d) Perform such other functions as expressly delegated to it from time to time by the Board relating to investor relations and public relations.

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The Committee shall report to the Board on its activities and any recommendations falling within this purpose on a regular basis and not less than once a year.

The members of the Investor Relations Committee are: Mr Anghie (Chairman), Mr Kulwal and Mr Umesh Goel.

MT GORDON ENVIRONMENT COMMITTEE

The purpose of the Committee is to:

a) Periodically Monitor and evaluate compliance and provide the management strategic direction to the Company’s Mt Gordon

b)

c)

d)

e) The Committee shall have an initial tenure of ONE year with effect from May 01, 2011 and the tenure may be renewed if the Board considers it necessary to do so.

The Committee will comprise of at least 2 Directors and currently comprises Mr Prasanna (Chairman), Mr Krishnan, Mr Gaur, Mr Kulwal and Mr Bhargava.

The Committee will meet at least 4 times during its initial tenure of 1 year.

TIMELY AND BALANCED DISCLOSURE

information and are provided with timely and balanced disclosure of all material matters concerning the Company. Additionally, Birla Minerals recognises its continuous disclosure obligations under the ASX Listing Rules and the Corporations Act. To assist with these matters, the Board has adopted a Continuous Disclosure and Shareholder Communication Policy.

The Continuous Disclosure and Shareholder Communication Policy allocates roles to the Board and management in respect of identifying material information and co–ordinating disclosure of that information where required by the ASX Listing Rules.

with its shareholders. In addition to periodic reporting, Birla Minerals will ensure that all relevant information concerning the Company is placed on its website.

ETHICAL AND RESPONSIBLE DECISION&MAKING

The Board has created a framework for managing the Company including internal controls, business risk management processes and appropriate ethical standards.

misusing company resources. A formal Code of Conduct has been adopted for all employees and Directors of Birla Minerals.

A Securities Trading Policy has been adopted by the Board to set a standard of conduct, which demonstrates Birla Minerals’ commitment to ensuring awareness of the insider trading laws, and that employees and Directors comply with those laws. The Securities Trading Policy imposes additional share trading restrictions on Directors, the Company Secretary, executives and employees involved in monthly

day of the month before the end of the half–year or full year period and ending on the next business day after the announcement of the

OTHER INFORMATION

Aditya Birla Minerals Limited will include on its website ( ) full details of its corporate governance regime.

CORPORATE GOVERNANCE(CONTINUED)

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FINANCIAL STATEMENTS

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The Directors present their report for the year ended 31 March 2011.

DIRECTORS

Mr Debu Bhattacharya (Non-Executive Chairman)

Mr Mysore Prasanna (Non-Executive Director)

Dr Suresh Bhargava (Independent Non-Executive Director)

Mr Maurice Anghie (Independent Non-Executive Director)

Mr Narayan Krishnan (Independent Non-Executive Director)

Mr Dilip Gaur (Non-Executive Director) – Appointed 6 October 2010

Bachelor of Technology with Honours in Chemical Engineering

Mr Bhattacharya heads Aditya Birla Group’s Global metals business having consolidated revenues of over US$14 billion and is the Managing Director of Hindalco Industries Limited (Hindalco) since 2 October

He is also the Vice Chairman of Novelis Inc, the largest aluminium rolled products company in the world, and a wholly owned subsidiary of Hindalco.

Prior to assuming charge as the Managing Director of Hindalco, Mr Bhattacharya was the Managing Director of Indo Gulf Corporation Limited. Mr Bhattacharya is also the Chairman of Utkal Alumina International Limited, a wholly owned subsidiary of Hindalco, as well as director of Aditya Birla Management Corporation Limited, Birla Management Centre Services Limited, Dahej Harbour and Infrastructure Limited, another wholly owned subsidiary of Hindalco, Minerals and Minerals Limited, Aditya Birla Power Company Limited and Aditya Birla Science and Technology Company Limited.

Prior to joining the Aditya Birla Group, Mr Bhattacharya spent close to 30 years with Unilever, where he held several key responsibilities and worked in several key roles for its Indian & Overseas operations. He led the chemical business of Unilever in India before moving to the Aditya Birla Group in 1998.

Mr Bhattacharya is the recipient of the prestigious “India Business Leader of the Year Award (IBLA) 2005”, and the much coveted “The Asia Corporate Citizen of the Year Award (ABLA) 2005”. He is also the recipient of:

The “Corporate Excellence Award 2010” for his outstanding leadership & innovative approach in

The “Qimpro Gold Standard 2010” for successfully implementing world-class quality practices and achieving outstanding performance results.

Member of the Remuneration and Nomination Committee

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Bachelor of Commerce, Doctor of Philosophy (Ph.D.) Chartered Accountant (ICAI), Company Secretary (ICSI)

Dr Kulwal is CEO and Managing Director of Aditya Birla Minerals Ltd. He had wide ranging career of over 25 years in leadership positions across various industries, including chemicals, metals, and

new project execution, strategy development and deployment for global business growth, and head

information technology management, taxation management and logistics management.

level technical expertise. He has demonstrated track record of turning around businesses through a participative management culture and providing strategic direction. He has presented various papers in international conferences.

Dr Kulwal was previously Executive President of Grasim Industries Limited, Chemical Division, a company within the Global Aditya Birla Group, where, amongst the general duties imposed upon a chief executive, he was responsible for developing a US$900 million new Chemical Complex.

Dr Kulwal is a Chevening Scholar. He is also recepient of Rajiv Ratna National Award for the Best Chief

Bachelor of Science, Master of Law, Member of the International Bar Association

Mr Prasanna commenced his career as an independent counsel and began his corporate career with General Insurance Corporation of India and worked for over 29 years with organizations including Alfa Laval, Brook Bond India Limited and Larsen & Toubro Limited. Mr Prasanna joined the Aditya Birla Group as President, Corporate Legal Cell and has been instrumental in establishing the Corporate Legal Cell for the Aditya Birla Group. Mr Prasanna has also been a director of a number of other companies, including Birla Management Centre Services Ltd, Utkal Alumina International Ltd, Chess Management Services and Mac Charles (India) Limited (appointed 30 March 2011). Mr Prasanna is on the Board of many other Companies both in India and overseas. Mr Prasanna was the Chairman of the Legal Affairs Committee and is currently an adviser to the Managing Committee of Bombay Chamber and the Co-Chairperson of the Legal Affairs Committee of Associated Chambers of Commerce and Industry of India.

Commerce and Industry. He is also appointed by the Singapore International Arbitration Centre as an Arbitrator on its panel of Indian Arbitrators. He is also an Arbitrator on the Panel of The Kuala Lumpur Regional Arbitration Centre. Mr Prasanna is also the recipient of the “Best In House Counsel” award by Asia Law, Hong Kong in 2005 and 2007. In November 2006, he was conferred the prestigious “National Law Day” Award by the Honourable Prime Minister of India.

Member of the Audit, Compliance and Risk Committee

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DIRECTORS $CONTINUED%

Dr Bhargava is Professor and Chair of Industrial Chemistry at RMIT University. He is also Director

universities and major industry groups and with support from the Australian Research Council.

Dr Bhargava has more than 20 years of experience working with many Australian resource companies on various aspects of mineralogy and hydrometallurgy and environmental issues including technology development. He has worked on various projects with Alcoa, BHP Billiton and Rio Tinto (Comalco). Among many distinguished awards and achievements throughout his career, Dr Bhargava has received the 2006 Vice-Chancellors highest Award for Research Excellence, R K Murphy Award - the most coveted industrial chemistry award in Australia presented by Royal Australian Chemical Institute.

Australian Academy of Technological Sciences and Engineering. (ATSE).

Chairman of the Remuneration and Nomination Committee

the Australian Institute of Company Directors

skills. Having worked extensively in the listed corporate environment, he possesses legal, regulatory

executive director of Gujarat NRE Coking Coal Limited from 11 May 2007.

Chairman of the Audit, Compliance and Risk Committee

Australasian Institute of Mining and Metallurgy

Mr Krishnan has amassed an extensive industrial career spanning a period of over 36 years in the

and process design. He has worked in various capacities during his career at MIM Holdings, Pasminco and more recently as the group advisor metallurgy at WMC Resources Ltd, where the role included operations review, operations support, strategy input, technical advice to copper, nickel and fertiliser business and the management of external research projects. Mr Krishnan established a private technical

technical advice and strategy input to large mining companies.

Member of the Audit, Compliance and Risk Committee and the Remuneration and Nomination Committee

DIRECTORS’ REPORT(CONTINUED)

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Bachelor of Technology in Chemical Engineering

Mr Gaur is a chemical engineer with more than 32 years experience in leadership positions in a cross

Egypt. He heads the Copper Business of Hindalco Industries Limited as a Group Executive President.

Group’s Carbon black business in Egypt – an Indo-Egyptian joint venture, before moving to Hindalco Industries Limited. He is currently a Director of Dahej Harbour and infrastructure company, a wholly owned subsidiary of Hindalco Industries Limited. Mr. Gaur has demonstrated track record of building

conditions across geographies.

Not applicable

COMPANY SECRETARY

of listed companies. Prior to establishing Torre Corporate, Mr Torre was a partner and Chairman of the National Corporate Services

years. Mr Torre is the company secretary of several ASX-listed companies, a director of Neo Resources Limited, Mission New Energy

WA”. Mr Torre was also formerly a Director of Carbine Resources Limited and CI Resources Limited.

Mr Torre holds a Bachelor of Business, is a Chartered Accountant, a Chartered Secretary and is a member of the Institute of Company Directors.

INTERESTS IN THE SHARES OF THE COMPANY

The relevant interests of directors either directly or through entities controlled by the directors in the share capital of the Company as at the date of this report are:

DirectorOrdinary Shares

Mr Debu Bhattacharya -

Dr Sunil Kulwal -

Mr Mysore Prasanna -

Dr Suresh Bhargava -

Mr Maurice Anghie -

Mr Narayan Krishnan -

Mr Dilip Gaur -

DIVIDENDS

PRINCIPAL ACTIVITIES

OPERATING AND FINANCIAL REVIEW

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Particulars FY11 FY10 % Variation

Ore Mined Tonnes 2,193,298 2,131,227 3%

Grade % 2.8% 2.8%

Cu Contained Tonnes 60,834 60,674 < 1%

Ore Processed Tonnes 2,527,975 2,199,436 15%

Grade % 2.6% 2.8%

Cu Contained in Ore Processed Tonnes 65,428 61,812 6%

Recovery % 91% 92%

Cu in Concentrate Produced Tonnes 59,661 57,093 5%

Cathode Produced Tonnes - - -

59,661 57,093 5%

58,568 53,745 9%

Sale of Product A$ 000’s 462,622 381,350 21%

Earnings Before Interest and Tax A$ 000’s 83,312 93,259 -11%

Earnings Before Tax A$ 000’s 81,013 87,891 -8%

A$ 000’s 57,423 61,440 -7%

Ore mined was 2,193,298 tonnes, representing an increase of 3% on the previous year. Improvements throughout the year centred

will lay a base for sustaining production in the years ahead. Delivered grade was in line with the mine plan. The Nifty Copper Sulphide Concentrator produced 58,034 metric tonnes of copper in concentrate as compared to 56,450 metric tonnes of contained copper the previous year. Mill throughput increased by approximately 10% year on year, with 2,267,987 tonnes being treated. This was enabled by both an increase in availability of the concentrator as well as improved throughput rates. ROM stocks reduced following a major planned shutdown of the underground crusher over the last two weeks of March 2011. Stock of copper in concentrate increased by 1,958 metric tonnes of contained copper as compared to last year, due to delay in shipments caused by bad weather and congestion at Port Hedland.

Work continued on the paste plant throughout the year with several further improvements being made. With improved production

The Nifty Oxide operation remained under care and maintenance during the year. With the increase in commodity prices, work to evaluate the status of current infrastructure and suitable treatment options has commenced.


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processing of Esperanza Low Grade (ELG) ore in June 2010.

The feasibility study to recommence operations was carried out during the year. A tender to re-open Mammoth underground was completed and the company has entered into a Memorandum of Understanding with a mining contractor in October 2010. Towards

The company commenced diamond drilling during the year. Drilling is targeting a gravity high which lies north-east of the Maroochydore copper resource and the potential for sulphide mineralisation below the existing Maroochydore’s resource. Drill holes intercepted trace

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

SIGNIFICANT EVENTS AFTER BALANCE DATE

LIKELY DEVELOPMENTS AND EXPECTED RESULTS

to the Company.

ENVIRONMENTAL REGULATION AND PERFORMANCE

The Company’s operations are subject to strict environmental regulations under Western Australia and Queensland legislation in relation to its mining activities. The Company undertakes regular monitoring of licence requirements, with performance against licence conditions reported to regulators on a regular basis. The Company also monitors progress of the operations towards meeting the requirements of the mining industry code for environmental management.

At Nifty, the operations were all performed within the requirements under the Western Australian Environment Act and Regulations. Additionally, all reporting of environmental performance against licence conditions were reported.

contaminated water stored compared to last year. The company entered into a Transitional Environmental Program which allowed it to discharge treated water into the riverine system. Additionally, all reporting of environmental performance against licence conditions were reported. At Mt Gordon there are three current court complaints initiated by Department of Environment and Resource Management (DERM) for timely non compliance of various environment related matters which are being discussed with DERM lawyers without prejudice basis for appropriate settlement.

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

premium has not been disclosed.

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REMUNERATION REPORT $AUDITED%

This report outlines the remuneration arrangements in place for Directors and other key management personnel of Aditya Birla Minerals Limited and its subsidiaries, in accordance with the requirements of the Corporations Act 2001 and its Regulations.

responsibility for planning, directing and controlling the major activities of the Company and the Group, directly or indirectly, including any

operational performance.

The Remuneration and Nomination Committee is delegated the task of devising packages to attract and retain Directors and executives of the calibre necessary to ensure the success of Aditya Birla Minerals Limited. However, the Committee will avoid paying more than is necessary or deemed reasonable to achieve this aim. To this end, the Committee has the power to use the services of an external remuneration consultant. The Committee may from time to time recommend to the Board for its approval, the creation or amendment of executive incentive schemes.

Management salary packages are reviewed annually with the objective of making them competitive relative to industry measures.

Independent non-executive Directors will receive a set fee per year and be reimbursed for out-of-pocket expenses incurred as a result of their directorship or in connection with the business of Aditya Birla Minerals Limited.

The annual fee of each independent non-executive Director is $77,000. The fees represent the total reward arrangement inclusive of

Additionally, the independent non-executive Directors receive an annual fee of $7,500 for being a member of a Board Committee or an annual fee of $17,500 for being a Chairman of the Audit, Compliance and Risk Committee or $12,500 for being Chairman of the Remuneration and Nomination Committee (each of these additional fees also being inclusive of superannuation contributions).

Hindalco-nominated non-executive Directors will be reimbursed for out-of-pocket expenses incurred as a result of their directorship or in connection with the business of Aditya Birla Minerals Limited. The Hindalco nominated non-executive Directors have voluntarily elected not to receive an annual fee at this time. However, if it were later proposed that they be paid an annual fee, any such fees would need to be approved in accordance with the Company’s Constitution. The aggregate of the fees paid to non-executive Directors must

The maximum aggregate has currently been set at $500,000 per annum. During the current and previous years, Mr N Krishnan provided consulting services to the Group outside his normal Board and Committee duties for which fees were paid at normal commercial terms.

In accordance with the Company’s Constitution and subject to any contract with the Company and to the ASX Listing Rules, the Board

provide for remuneration comprising salary, cash allowances and superannuation totalling $396,694.

the option of extension on one year basis at the discretion of the Board. Dr S Kulwal’s employment arrangements may be terminated by either party with three month’s notice.


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Short-term incentives are delivered under the Employee Incentive Scheme, which rewards individuals for meeting or exceeding various

Performance factors include Group and personal objectives and measures. The setting of performance factors and the relative weightings given to the different categories of performance factors effectively incentivises short-term performance.

The performance level achieved against each performance factor is measured and awards are calculated and paid according to the level of performance, subject to the discretion of the Board. The Group’s performance factors measure performance in delivering against

Performance Measures FY06 FY07 FY08 FY09 FY10 FY11

Earnings Before Tax ($’000) (26,551) (1,056) 150,355 (109,451) 87,891 81,013

Copper Production (Metric Tonnes) 45,693 58,415 82,395 70,111 57,093 59,661

on individual’s personal performance which has not yet been assessed.

Except as disclosed above with respect to Dr S Kulwal, all other executives are employed under contracts of employment with standard

termination payments in lieu of notice.

Name PositionDate of

AppointmentDate of

Resignation

Mr D Bhattacharya Non-Executive Chairman 18 April 2003 -

Dr S Kulwal CEO and Managing Director 9 June 2008 -

Mr M Prasanna Non-Executive Director 20 January 2003 -

Dr S Bhargava Independent Non-Executive Director 21 August 2007 -

Mr M Anghie Independent Non-Executive Director 21 November 2007 -

Mr N Krishnan Independent Non-Executive Director 21 November 2007 -

Mr D Gaur Non-Executive Director 6 October 2010 -

Name PositionDate of

AppointmentDate of

Resignation

Mr U Goel * 2 August 2004 -

Mr R Gupta 15 June 2010 -

Mr R Jose Group Chief Mining Engineer / Acting General Manager – Birla Mt Gordon Pty Ltd

1 September 2006 -

Mr D Greenaway ** Group Manager – Business Development and Geology 10 January 2011 -

Mr D Whittle ^ ** General Manager – Birla Nifty Pty Ltd 17 August 2010 -

Mr C Dawson ** General Manager – Birla Nifty Pty Ltd 16 March 2009 13 December 2010

given by Mr R Gupta.^ Mr D Whittle was appointed as the Mining Manager of Birla Nifty Pty Ltd on 17 August 2010 and promoted to the General Manager of Birla Nifty Pty Ltd on 16

** Notice period of three months have to be given.

authorised for issue.

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REMUNERATION REPORT $AUDITED% $CONTINUED%

Remuneration of Directors and other Key Management Personnel for the year ended 31 March 2011

Short Term

Post Employ-

ment Total

Perfor-mance Related

Salary and Fees

$

Incentive Bonus 1

$

Non-Monetary Benefits

$

Consulting Fees

$

Super- annuation

$ $

Mr D Bhattacharya - - - - - - -

Dr S Kulwal 398,549 163,200 265,407 - 51,383 878,539 18.6%

Mr M Prasanna - - - - - - -

Dr S Bhargava 82,500 - - - 8,250 90,750 -

Mr M Anghie 87,500 - - - 8,750 96,250 -

Mr N Krishnan 85,000 - - 30,500 8,500 124,000 -

Mr D Gaur 2 - - - - - - -

653,549 163,200 265,407 30,500 76,883 1,189,539

Mr U Goel 117,386 64,869 200,529 - 16,416 399,200 16.2%

Mr R Gupta 3 164,336 - 76,188 - 14,300 254,824 -

Mr R Jose 312,762 67,369 - - 39,212 419,343 16.1%

Mr D Greenaway 4 47,419 - - - 4,742 52,161 -

Mr D Whittle 5 191,894 - - - 17,462 209,356 -

Mr C Dawson 6 217,358 10,125 - - 26,077 253,560 4.0%

1,051,155 142,363 276,717 118,209 1,588,444

1,704,704 305,563 542,124 30,500 195,092 2,777,983

1 Amounts for Dr S Kulwal, Mr U Goel and Mr R Jose relate to short-term incentives arising from meeting or exceeding various performance factors set for the Group for the year ended 31 March 2010. Amount for Mr C Dawson relates to short-term incentives arising from meeting or exceeding various monthly performance factors set for Birla Nifty Pty Ltd during the year. All amounts have vested and were paid during the year.

2 Appointed 6 October 20103 Appointed 15 June 20104 Appointed on 10 January 20115 Appointed on 17 August 2010 6 Resigned 13 December 2010

Mr R Maruwada and Mr J Golling, who were part of the key management personnel in the previous year, resigned on 30 June 2010 and 31 May 2010 respectively.


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Remuneration of Directors and other Key Management Personnel for the year ended 31 March 2010

Short Term

Post Employ-

ment Total

Perfor-mance Related

Salary and Fees

$

Incentive Bonus 1

$

Retention Scheme Bonus 2

$

Non-Monetary Benefits

$

Con-sulting Fees

$

Super- annua-

tion$ $

Mr D Bhattacharya - - - - - - - -

Dr S Kulwal 328,656 - 13,366 182,498 - 32,866 557,386 -

Mr M Prasanna - - - - - - - -

Dr S Bhargava 82,500 - - - - 8,250 90,750 -

Mr M Anghie 87,500 - - - - 8,750 96,250 -

Mr N Krishnan 85,000 - - - 30,500 8,500 124,000 -

583,656 13,366 182,498 30,500 58,366 868,386

Mr R Maruwada 128,115 - 4,405 51,616 - 11,920 196,056 -

Mr R Jose 221,596 - - - - 20,233 241,829 -

Mr U Goel 111,348 - - 181,243 - 10,086 302,677 -

Mr C Dawson 347,709 13,125 - - - 31,442 392,276 3.3%

Mr J Golling 261,910 17,190 - - - 33,490 312,590 5.5%

1,070,678 30,315 4,405 232,859 107,171 1,445,428

1,654,334 30,315 17,771 415,357 30,500 165,537 2,313,814

1 Relates to short-term incentives arising from meeting or exceeding various monthly performance factors set for Birla Nifty Pty Ltd. The amounts have vested and were paid during the year.

2 Amounts have not vested nor were paid during the year. If the criteria under the scheme are met, the maximum amount payable to Dr S Kulwal and Mr R Maruwada is $39,600 and $13,500 respectively. The minimum amount is nil. All bonuses from the retention scheme for the previous year have vested and have been paid.

DIRECTORS’ MEETINGS

The number of meetings of directors (including meetings of committees of directors) held during the year and the number of meetings attended by each director was as follows:

Directors’ Meetings

Audit Committee Meeting

Remuneration Committee Meeting

Mr D Bhattacharya 10 10 - - 3 3

Dr S Kulwal 10 10 - - - -

Mr M Prasanna 10 10 4 4 - -

Dr S Bhargava 10 10 - - 3 3

Mr M Anghie 10 8 4 3 - -

Mr N Krishnan 10 8 4 3 3 2

Mr D Gaur 4 4 - - - -

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DIRECTORS’ MEETINGS $CONTINUED%

As at the date of this report the Company had an Audit, Risk and Compliance Committee and a Remuneration and Nomination Committee of the Board of Directors.

Members acting on the committees of the Board are:

Audit, Risk and Compliance Remuneration and NominationMr M Anghie (Chairman) Dr S Bhargava (Chairman)

Mr M Prasanna Mr D Bhattacharya

Mr N Krishnan Mr N Krishnan

PROCEEDINGS ON BEHALF OF THE COMPANY

of this report.

ROUNDING

The Company is a company of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that Class

otherwise stated.

INCLUSION OF PARENT ENTITY FINANCIAL STATEMENTS

The Company has taken advantage of the relief referred to in ASIC Class Order 10/654 dated 26 July 2010 and in accordance with that

NON'AUDIT SERVICES

auditor’s behalf) is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 and do not compromise auditor independence.

Details of amounts paid or payable to the auditor for non-audit services provided during the year are detailed in note 4 of the

CORPORATE GOVERNANCE

In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of Aditya Birla Minerals Limited support and have adhered to the principles of corporate governance. The Company’s Corporate Governance Statement will be included in the Annual Report distributed to Shareholders.

AUDITOR’S INDEPENDENCE DECLARATION

Section 307C of the Corporations Act 2001 requires the Company’s auditors, Ernst & Young, to provide the directors with a written

Independence Declaration is included on page 81 of this report.

Signed in accordance with a resolution of the Directors.

Chairman Managing Director

Perth, 27 April 2011

Chairman


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CONSOLIDATED PARENT

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Sale of product 3(a) 462,622 381,350 - -

Other revenue 3(a) 1,535 191 1,170 -

464,157 381,541 1,170 -

Cost of sales (327,500) (284,999) - -

136,657 96,542 1,170 -

Other income 3(b) 1,169 28,599 13,075 4,636

Exploration and evaluation expenditure (6,549) (1,320) - -

Administration expenses (6,796) (6,419) (307) (262)

Care and maintenance and project trial expenses (34,469) (21,207) - -

Other expenses 3(c) (6,700) (2,936) (355) (111)

83,312 93,259 13,583 4,263

3(d) (2,299) (5,368) (63) (42)

81,013 87,891 13,520 4,221

5 (23,590) (26,451) 761 35

57,423 61,440 14,281 4,256

Cents Cents

Earnings per share:

ordinary equity holders of the parent 6 18.32 19.61

The above income statement should be read in conjunction with the accompanying notes.

INCOME STATEMENTF

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CONSOLIDATED PARENT

2011 2010 2011 2010

$’000 $’000 $’000 $’000

57,423 61,440 14,281 4,256

551 (220) - -

Income tax effect (165) 66 - -

386 (154) - -

57,809 61,286 14,281 4,256

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AS AT 31 MARCH 2011

CONSOLIDATED PARENT

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Cash and cash equivalents 8 143,969 2,198 107,795 220

Trade and other receivables 9 32,917 37,198 9,604 220

Inventories 10 62,152 59,968 - -

11 4,556 108 27,181 5,992

Other 12 3,955 3,432 137 128

247,549 102,904 144,717 6,560

Trade and other receivables 9 - - 170,192 281,128

Inventories 10 76,441 76,441 - -

Property, plant and equipment 13 381,747 395,312 - -

Deferred exploration and evaluation expenditure 14 15,545 15,166 - -

11 - - 991 -

Deferred tax assets 5 - - - 1,422

Investment in controlled entities 15 - - 201,049 173,146

473,733 486,919 372,232 455,696

721,282 589,823 516,949 462,256

Trade and other payables 16 44,556 38,741 7,591 1,508

Interest-bearing liabilities 17 1,709 595 1,599 409

Income tax payable 5 12,598 - 12,598 -

Provisions 18 9,985 11,593 - -

11 26,177 5,992 27,181 5,992

95,025 56,921 48,969 7,909

Interest-bearing liabilities 17 3,792 5,586 3,764 5,450

Deferred tax liabilities 5 47,994 36,837 47 -

Provisions 18 43,158 17,966 - -

11 991 - 991 -

95,935 60,389 4,802 5,450

190,960 117,310 53,771 13,359

530,322 472,513 463,178 448,897

Issued capital 19 450,663 450,663 450,663 450,663

79,427 22,004 12,515 (1,766)

19 232 (154) - -

530,322 472,513 463,178 448,897

The above balance sheet should be read in conjunction with the accompanying notes.

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CONSOLIDATED PARENT

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Receipts from customers (inclusive of GST) 494,044 394,503 - -

Payments to suppliers and employees (inclusive of GST) (327,518) (272,768) (9,615) (1,168)

Payments for exploration and evaluation (6,549) (1,320) - -

Interest received 391 161 - -

Interest paid (1,413) (6,360) (63) (42)

25(a) 158,955 114,216 (9,678) (1,210)

Payments for plant and equipment (14,463) (5,050) - -

Payments for mine development (794) (2,788) - -

Acquisition of exploration assets (379) (2,467) - -

Proceeds from disposal of plant and equipment 307 - -

Advances from/(to) subsidiaries - - 118,918 (4,913)

(15,329) (10,305) 118,918 (4,913)

Proceeds from borrowings - 6,332 - 6,332

Repayment of borrowings - (21,600) - -

Repayment of borrowings – related entities - (87,858) - (2)

(186) (187) - -

(186) (103,313) - 6,330

Net increase in cash and cash equivalents 143,440 598 109,240 207

Net foreign exchange differences (1,669) (369) (1,665) (2)

Cash and cash equivalents at the beginning of the year 2,198 1,969 220 15

Cash and cash equivalents at the end of the year 25(b) 143,969 2,198 107,795 220

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Issued Capital

Retained Profits / (Accu-

mulated Losses)

Cash Flow Hedge

ReserveTotal

Equity

$’000 $’000 $’000 $’000

450,663 (39,436) - 411,227

- 61,440 - 61,440

Other comprehensive income - - (154) (154)

Total comprehensive income for the year, net of tax - 61,440 (154) 61,286

450,663 22,004 (154) 472,513

- 57,423 - 57,423

Other comprehensive income - - 386 386

Total comprehensive income for the year, net of tax - 57,423 386 57,809

450,663 79,427 232 530,322

450,663 (6,022) - 444,641

- 4,256 - 4,256

Other comprehensive income - - - -

Total comprehensive income for the year, net of tax - 4,256 - 4,256

450,663 (1,766) - 448,897

- 14,281 - 14,281

Other comprehensive income - - - -

Total comprehensive income for the year, net of tax - 14,281 - 14,281

450,663 12,515 - 463,178

The above statement of changes in equity should be read in conjunction with the accompanying notes.For

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#. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

with a resolution of the directors on 27 April 2011.

Aditya Birla Minerals Limited (the parent) is a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Stock Exchange with effect from 12 May 2006.

Corporations Act 2001, applicable Accounting Standards and other mandatory professional reporting requirements.

which have been measured at fair value.

stated under the option available to the Company under ASIC Class Order 98/0100. The Company is an entity to which the class order applies.

issued by the International Accounting Standards Board.

i)

Since 1 April 2010, the Group has adopted the following Standards and Interpretations, mandatory for annual periods

position or performance of the Group.

this date. Changes affect the valuation of non-controlling interests (previously “minority interests”), the accounting for transaction costs, the initial recognition and subsequent measurement of contingent consideration and business combination achieved in stages. These changes will impact the amount of goodwill recognised, the reported results in the period when an acquisition occurs and future reported results.

AASB 127 (revised 2008) requires that a change in the ownership interest of a subsidiary (without a change in control) is

the accounting for losses incurred by a partially owned subsidiary as well as the loss of control of a subsidiary.

The changes in AASB 3 (revised 2008) and AASB 127 (revised 2008) will affect future acquisitions, changes in, and loss of control of, subsidiaries and transactions with non-controlling interests.

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The following amending Standards and Interpretations have also been adopted from 1 April 2010:

AASB Int. 17 and AASB 2008-13

AASB 2008-3

AASB 2008-6

AASB 2008-8

AASB 2009-4

AASB 2009-7

AASB 2009-5

ii)

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted for the annual reporting period ended 31 March 2011. These are outlined in the table below:

Reference Title Summary

Application date of

standardImpact on Group financial report

Application date for Group

AASB 9Instruments

AASB 9 includes requirements for

IASB’s project to replace IAS 39

(AASB 139

). These requirements improve and simplify the approach

requirements of AASB 139.

1 January 2015

The Group has not yet determined the extent of the impact of the amendments, if any.

1 April 2015

AASB 2009-11

Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12]

These amendments arise from

Instruments that sets out

assets. The requirements in AASB 9

International Accounting Standards Board’s project to replace IAS 39

and Measurement.

This Standard shall be applied when AASB 9 is applied.

1 January 2013


1 April 2013

AASB 124 (Revised)

Related Party Disclosures (December 2009)

The revised AASB 124 simplifies the definition of a related party, clarifying its intended meaning and eliminating inconsistencies from the definition. A partial exemption is also provided from the disclosure requirements for government-related entities. Entities that are related by virtue of being controlled by the same government can provide reduced related party disclosures.

1 January 2011


1 April 2011F

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Application date of



AASB 2009-12

Amendments to Australian Accounting Standards [AASBs 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052]

This amendment makes numerous editorial changes to a range of Australian Accounting Standards and Interpretations.

In particular, it amends AASB 8 Operating Segments to require an entity to exercise judgement in assessing whether a government and entities known to be under the control of that government are considered a single customer for the purposes of certain operating segment disclosures. It also makes numerous editorial amendments to a range of Australian Accounting Standards and Interpretations,

the IASB.

1 January 2011


1 April 2011

AASB 1053

Application of Tiers of Australian Accounting Standards

This Standard establishes a

framework consisting of two Tiers of reporting requirements for preparing

1 July 2013


1 April 2014

AASB 2010-3

Amendments to Australian Accounting Standards arising from the Annual Improvements Project

[AASB 3, AASB 7, AASB 121, AASB 128, AASB 131, AASB 132 & AASB 139]

Limits the scope of the measurement choices of non-controlling interest to instruments that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation. Other components of NCI are measured at fair value.

Requires an entity (in a business combination) to account for the replacement of the acquiree’s share-based payment transactions (whether obliged or voluntarily), in a consistent manner i.e., allocate between consideration and post combination expenses.

consideration from a business combination that occurred before the effective date of AASB 3 Revised is not restated.

joint control (from the issue of

prospectively.

1 July 2010


1 April 2011

#. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES $CONTINUED%

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Application date of



AASB 2010-4 Amendments

to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1, AASB 7, AASB 101, AASB 134 and Interpretation 13]

Emphasises the interaction between quantitative and qualitative AASB 7 disclosures and the nature and extent of risks associated with

an analysis of other comprehensive income for each component of equity, either in the statement of changes in equity or in the notes to

Provides guidance to illustrate how to apply disclosure principles in

transactions

of award credits is measured based on the value of the awards for which they could be redeemed, the amount of discounts or incentives otherwise granted to customers not participating in the award credit scheme, is to be taken into account.

1 January 2011


1 April 2011

Interpreta-tion 19

Interpretation 19 Extinguishing

Liabilities with Equity Instruments

equity instruments issued to a

liability are “consideration paid” in accordance with paragraph 41 of IAS

is derecognised and the equity instruments issued are treated as consideration paid to extinguish that

The interpretation states that equity instruments issued as payment of a debt should be measured at the fair value of the equity instruments issued, if this can be determined reliably. If the fair value of the equity instruments issued is not reliably determinable, the equity instruments should be measured by reference to the fair value of the

the date of extinguishment.

1 July 2010


1 April 2011

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Application date of



AASB 2010-5

Amendments to Australian Accounting Standards

[AASB 1, 3, 4, 5, 101, 107, 112, 118, 119, 121, 132, 133, 134, 137, 139, 140, 1023 & 1038 and Interpretations 112, 115, 127, 132 & 1042]

This Standard makes numerous editorial amendments to a range of Australian Accounting Standards and Interpretations, including

These amendments have no major impact on the requirements of the amended pronouncements.

1 January 2011


1 April 2011

AASB 2010-6

Amendments to Australian Accounting Standards – Disclosures on Transfers of

[AASB 1 & AASB 7]

The amendments increase the disclosure requirements for transactions involving transfers of

enhancements to the existing

is transferred but is not derecognised and introduce new disclosures for assets that are derecognised but the entity continues to have a continuing exposure to the asset after the sale.

1 July 2011


1 April 2012

AASB 2010-7

Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)

[AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023, & 1038 and interpretations 2, 5, 10, 12, 19 & 127]

The requirements for classifying

were added to AASB 9. The existing

to use the fair value option have been retained. However, where the

liabilities the change in fair value is accounted for as follows:

If this approach creates or enlarges

or loss, the effect of the changes in credit risk are also presented in

1 January 2013


1 April 2013

AASB 2010-8

Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying Assets

[AASB 112]

These amendments address the determination of deferred tax on investment property measured at fair value and introduce a rebuttable presumption that deferred tax on investment property measured at fair value should be determined on the basis that the carrying amount will be recoverable through sale. The amendments also incorporate SIC-21 Income Taxes – Recovery of Revalued Non-Depreciable Assets into AASB 112.

1 January 2012


1 April 2012


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Where an entity either began or ceased to be controlled during the year, the results are included only from the date control commenced or up to the date control ceased.

accounting policies. Adjustments are made to bring into line any dissimilar accounting policies that may exist.

fully eliminated.

Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent that it is probable

criteria must also be met before revenue is recognised:

Revenue from sales of copper concentrate and copper cathode is recognised upon shipment or discharge when there has been

The costs incurred or to be incurred in respect of the transaction can be measured reliably.

settlement is between 3 and 4 months after the date of delivery (the “quotational period”) with pricing based on the average LME copper price for the month of settlement. The revenue adjustment mechanism embedded within the sales contract has the

income statement (see note 1(k)) and not separately account for the embedded derivative. Accordingly the fair value of the receivable is re-estimated continuously and changes in fair value recognised as an adjustment to revenue in the income statement.

Revenue is recognised as interest accrues (using the effective interest method, which is the rate that exactly discounts estimated

Revenue is recognised when the shareholders’ right to receive the payment is established.

Both the functional and the presentation currency of the parent entity and its controlled entities are Australian dollars ($).

Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are re-translated at the rate of exchange ruling at the balance sheet date.F

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Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the current period’s taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date.

Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of the assets and

Deferred income tax liabilities are recognised for all taxable temporary differences:

except where the deferred income tax arises from the initial recognition of goodwill or of an asset or liability in a transaction

in respect of taxable temporary differences associated with investments in subsidiaries, except where the timing of the reversal of the temporary differences will not reverse in the foreseeable future.

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and

differences, and the carry-forward of unused tax assets and unused tax losses can be utilised:

except where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither

in respect of deductible temporary difference associated with investments in subsidiaries, deferred tax asset are only recognised to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no

Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

Income taxes relating to items recognised directly in equity are recognised in equity and not in the income statement.

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.

Effective from incorporation, for the purposes of income taxation, Aditya Birla Minerals Limited and its 100% owned subsidiaries have formed a tax consolidated group. Aditya Birla Minerals Limited is the head entity of the tax consolidated group. Members of the Group have entered into a tax sharing agreement which provides for the allocation of income tax liabilities between the entities should the head entity default on its tax payment obligations. At the balance date, the possibility of default is remote.

Revenues, expenses and assets are recognised net of the amount of goods and services tax (“GST”), except where the amount

of the cost of acquisition of the asset or as part of the expense item as applicable.

Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the balance sheet.

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Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the ATO.

currency exposures.

Instruments used to manage natural exposures to commodity prices, exchange rates and interest rates include put and call options, swaps and foreign exchange contracts.

their fair values.

expected transaction.

The method of recognising the resultant gain or loss is dependent on the nature of the item being hedged.

At the inception of the transaction, the Group documents the relationship between the hedging instrument and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. This process includes linking all

effective, are recognised in equity to the extent of the hedge’s effectiveness. Any ineffectiveness in the hedge relationship is taken

revenue in the same periods during which the designated hedged sales are recognised.

Changes in the fair value of any derivative instruments that do not qualify for hedge accounting are recognised immediately in the income statement.

When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting under the accounting standards, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the commitment or expected transaction occurs.

However, if the committed or expected transaction is no longer expected to occur, the cumulative gain or loss reported in equity is immediately transferred to the income statement.

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits.

net of outstanding bank overdrafts.

at fair value as at reporting date.

The majority of sales revenue is invoiced and received in US dollars.

Generally 100% of the copper cathode sales invoice value is to be settled within 10 days of presentation of delivery documents.

In the case of copper concentrate, on presentation of documents the customer settles 90% of the provisional invoice value within

end of the quotational period.

Other receivables are recognised and carried at original invoiced amount less an allowance for any uncollectible amounts.

An allowance for doubtful debts is made when there is objective evidence that the Group will not be able to collect the debts.

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Inventories comprise broken ore, copper in ore and under leach, concentrate and cathode which are carried at the lower of weighted average cost and net realisable value.

overhead expenditure based on the weighted average costs incurred during the period in which such inventories were produced.

Inventories of consumable supplies and spare parts expected to be used in production are valued at the lower of weighted average cost and net realisable value.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

Property, plant and equipment are stated at cost less accumulated depreciation and any impairment in value.

Items of property, plant and equipment are depreciated as outlined below.

unit of production based on economically recoverable reserves.

straight line depreciation at a rate of 10% to 50% per annum, depending on the item of plant.

The cost of property, plant and equipment constructed by the Group includes the costs of all materials used in construction, direct labour, borrowing costs incurred during construction and an allocation of overheads.

Borrowing costs included in the cost of property, plant and equipment are those costs, which are directly attributable to the construction, or production of qualifying assets and that would have been avoided if the expenditure on the construction of the property, plant and equipment had not been made.

Assets are depreciated or amortised from the date of acquisition or, in respect of internally constructed assets, from the time an asset is completed and available for use.

Mine properties in production (including exploration, evaluation and development expenditure) are accumulated and brought to

provided on a production output basis, proportional to the depletion of the mineral resource of each area of interest expected to be ultimately economically recoverable.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation that area of interest. Should the carrying value of expenditure not yet amortised exceed its estimated recoverable amount in any year, the excess is written off to the income statement.

The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

to which the asset belongs. If any indication of impairment exists and where the carrying values exceed the estimated recoverable amount, the assets or cash generating unit are written down to their recoverable amount through the Income Statement.

The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use. In assessing value

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash generating unit) is increased to the revised estimate of recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash generating unit). A reversal

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arise from the continued use of the asset.

Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the income statement in the period the item is derecognised.

Exploration and evaluation expenditure is charged against earnings as incurred.

size related to a known or probable mineral resource capable of supporting a mining operation. Such expenditure comprises net direct costs and an appropriate portion of related overhead expenditure directly related to activities in the area of interest.

These costs are capitalised until viability of the area of interest is determined. If no mineral ore body is discovered, capitalised acquisition costs are expensed in the period in which it is determined that the area of interest has no future economic value. When a decision to proceed to development is made, all costs subsequently incurred to develop a mine prior to the start of mining operations within the area of interest are capitalised and carried at cost. These costs include expenditure incurred to

capacity of a mine and to maintain production.

Long-term environmental obligations are based on the Group’s environmental management plans, in compliance with current environmental and regulatory requirements.

The costs include obligations relating to reclamation, waste site closure, plant closure, and other costs associated with the restoration of the site.

extent that it relates to the development of an asset) that has been incurred as at the balance sheet date. Increases due to additional environmental disturbances are capitalised and amortised over the remaining lives of the mines. These increases are accounted for on a net present value basis.

Annual increases in the provision relating to the change in the net present value of the provision are accounted for in the income

The estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for changes in legislation, technology or other circumstances. Cost estimates are not reduced by the potential proceeds from the sale of assets or from plant clean-up at closure.

Certain mining costs, principally those that relate to the stripping of waste and which relate to future economically recoverable ore to be mined, have been capitalised and included in the balance sheet as deferred mining in mine properties.

These costs are deferred or taken to the cost of production as the case may be, so that each tonne of ore mined bears the average cost of waste removal per tonne of ore, as determined by the waste to ore ratio derived from the current pit design. The waste to ore ratio and the remaining life of the mine are regularly assessed by the Directors and senior management to ensure the carrying value and the rate of deferral is appropriate.F

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At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. Where an indicator of impairment exists, the Group makes a formal estimate of the recoverable amount. Where the carrying amount of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount.

Recoverable amount is the greater of fair value less costs to sell and value in use. Recoverable amount is determined for an individual asset, unless the asset’s value in use cannot be estimated to be close to its fair value less costs to sell and it does not

amount is determined for the cash-generating unit to which the asset belongs.

being assessed.

An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of

unless the asset is carried at its revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Group. Trade accounts are normally settled in accordance with the terms of trade.

Payables to related parties are initially recognised at their fair value and subsequently measured at amortised cost.

All loans and borrowings are initially recognised at the fair value of the consideration received net of transaction costs associated with the borrowing.

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any transaction costs, and any discount or premium on settlement.

Gains and losses are recognised in the income statement when the liabilities are derecognised and as well as through the amortisation process.

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires

arrangement conveys a right to use the asset.

item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the

in the income statement.

Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.

The cost of improvements to or on leasehold property is capitalised, disclosed as leasehold improvements and amortised over the unexpired period of the lease or the estimated useful life of the improvement, whichever is shorter.

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Operating lease payments are recognised as an expense in the income statement on a straight line basis over the lease term.

twelve months of the reporting date are measured at their nominal amounts based on remuneration rates which are expected

Borrowing costs are recognised as an expense when incurred, except where the borrowing costs incurred are directly associated with the construction, purchase or acquisition of a qualifying asset, in which case the borrowing costs are capitalised as part of the cost of the asset.

Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement.

Interests in controlled entities are carried by the parent entity at the lower of cost and recoverable amount.

Issued and paid up capital is recognised at the fair value of the consideration received by the Group. Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction, net of tax, of the proceeds received.

servicing equity (other than dividends), divided by the weighted average number of ordinary shares, adjusted for any bonus element.

the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as

other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential

divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.

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i)

The Group assesses its mine rehabilitation provision annually in accordance with the accounting policy stated in note 1(o).

become known in the future, such difference will impact the mine rehabilitation provision in the period in which they change or become known.

ii)

The Group applies the units of production method of depreciation of its mine assets based on ore tonnes mined. These

reserves and resources and production capacity are the company’s history of converting resources to reserves and the relevant time frames, the complexity of metallurgy, markets and future developments. When these factors change or become

iii)

The Group carries copper in ore and under leach at the lower of weighted average cost and net realisable value. This assessment requires an estimation of the recoverable tonnes of copper under leach, the future copper price and exchange rate and future processing cost to extract the copper under leach.

Changes in the above assumption could have a material impact on the assessed net realisable value of copper in ore and under leach.

!. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

To manage exposure to commodity prices, exchange rates and interest rates, the Group uses derivative instruments, principally put and call options, swaps and forward contracts. The purpose is to manage the commodity price, currency and interest rate risks arising from

Group uses different methods to measure and manage different types of risks to which it is exposed. These include monitoring levels of exposure to commodity prices, interest rate and foreign exchange risk and assessments of market forecasts for commodity prices,

The Board reviews and agrees policies for managing each of these risks as summarised below.

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The Group has transactional currency exposures. Such exposure arises from sales or purchases by an operating entity in currencies other than the functional currency. Approximately 100% of the Group’s sales are denominated in United States dollar (US$), whilst most of the costs are denominated in the entity’s functional currency. The functional currency of the parent and its controlled entities is determined to be Australian dollar (A$).

seeks to mitigate the effect of its net foreign currency exposure by using derivative instruments, principally put and call options and forward foreign currency contracts.

It is the Group’s policy to enter into derivative instruments to manage foreign currency exposure once likelihood of such exposure is highly probable and to negotiate the terms of the derivatives to exactly match the terms of the underlying item to maximise effectiveness. The Group will follow its current policy of covering exposure up to 50% of sales revenues in US$. However, the exposure as a percentage may be higher than 50% for new projects.

At balance date, the Group had the following exposure to US$ foreign currency:

Consolidated Parent2011 2010 2011 2010

$’000 $’000 $’000 $’000

Cash and cash equivalents 73,289 1,113 73,258 7

Trade and other receivables 29,332 34,124 8,733 -

Derivative foreign exchange contracts 3,552 108 - -

Derivative commodity contracts 1,004 - 28,172 5,992

Trade and other payables (7,197) (1,026) (7,197) (1,026)

Interest-bearing liabilities (5,613) (6,332) (5,613) (6,332)

Derivative commodity contracts (27,168) (5,992) (28,172) (5,992)

Net exposure 67,199 21,995 69,181 (7,351)

At 31 March 2011, the Group had hedged approximately US$68.600 million of its foreign currency receipts that are highly probable, extending to March 2012.

The following table sets out the gross value of US dollars sold under foreign exchange contracts, the weighted average contracted exchange rates and the settlement periods of outstanding contracts for the Group:

Weighted Average

RateConsoli-

dated

Weighted Average

RateConsoli-

dated2011 2011 2010 2010

Not later than one year 0.9671 68,600 0.9028 12,300

The net fair value of the above contracts as at 31 March 2011 is a net asset of $3.552 million (2010: $0.108 million).

tax charge of $1.066 million was included in equity in respect of these contracts.

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!. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES $CONTINUED%

The following sensitivity is based on the foreign currency risk exposures in existence at the balance date:

and other comprehensive income would have been affected as follows:

Judgements of reasonable possible movements:

Post Tax ProfitOther Comprehensive

IncomeHigher/(Lower) Higher/(Lower)

2011 2010 2011 2010

$’000 $’000 $’000 $’000

A$/US$ +6% (2010: +6%) (2,521) (880) 2,938 681

A$/US$ -6% (2010: -6%) 2,844 993 (3,313) (478)

A$/US$ +6% (2010: +6%) - 251 - -

A$/US$ -6% (2010: -6%) - (283) - -

The Group’s exposure to copper prices is very high as approximately 100% of the revenue comes from sale of copper concentrate and cathode. Revenue is determined with reference to copper prices quoted on the London Metal Exchange (LME).

seeks to mitigate the effect of its copper prices exposure by using derivative instruments, principally put and call options and swaps.

To manage copper price risk the Group deals in copper swap contracts and put and call option contracts for the purposes of mitigating the effect of movement in copper prices. The limits of hedging are set by the Board.

It is the Group’s policy to enter into derivative instruments to manage copper price exposure once likelihood of such exposure is highly probable and to negotiate the terms to maximise hedge effectiveness. The Group’s current policy permits covering up to 100% of the dispatched quantity and up to 50% of forward rolling 12 month of expected copper sales quantity. However, the exposure as a percentage may be higher than 50% for new projects.

At balance date, the Group had the following items exposed to commodity price risk:


$’000 $’000 $’000 $’000

Trade and other receivables 20,539 34,124 - -


Derivative commodity contracts (27,168) (5,992) (28,172) (5,992)

Net exposure (5,625) 28,132 - -

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At 31 March 2011, details of outstanding commodity contracts are:

Tonnes Average

Price Tonnes Average

Price2011 2011 2010 2010

Not later than one year 1,250 9,022 6,675 7,569



Between one and two years 1,675 8,815 - -

The net fair value of the above contracts as at 31 March 2011 is a net liability of $26.164 million (2010: $5.992 million).

The following sensitivity is based on the copper price risk exposures in existence at the balance date:

At 31 March 2011, had the LME copper prices moved, as illustrated in the table below, with all other variables held constant, post tax

Judgements of reasonably possible movements:



2011 2010 2011 2010

$’000 $’000 $’000 $’000

Copper Prices +10% (2010: +10%) 10 4,771 (8,956) (1,640)

Copper Prices -10% (2010: -10%) (241) (6,040) 8,955 1,387

Copper Prices +10% (2010: +10%) - - - -

Copper Prices -10% (2010: -10%) - - - -

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The Group’s exposure to market interest rates relates primarily to the Group’s debt obligations. The level of debt is disclosed in note 17.


$’000 $’000 $’000 $’000


Interest-bearing liabilities (6,263) (6,982) (6,263) (6,982)

Net exposure 137,706 (4,784) 101,532 (6,762)

The Group believes there is a very high correlation between interest rates and economic growth. The Group normally borrows money at variable rates.

At 31 March 2011 approximately 100% of the Group’s borrowings are at a variable rate of interest (2010: 100%). The Group constantly analyses its interest rate exposure. Within this analysis consideration is given to potential renewals of existing positions, alternative

The following sensitivity is based on the interest rate risk exposures in existence at the balance date:

and equity would have been affected as follows:

Judgements of reasonably possible movements:



2011 2010 2011 2010

$’000 $’000 $’000 $’000

Interest Rates +1% (100 basis points) 910 (44) - -

Interest Rates -1% (100 basis points) (910) 44 - -

Interest Rates +1% (100 basis points) - (44) - -

Interest Rates -1% (100 basis points) - 44 - -

derivative instruments.

derivatives, is the carrying amount of these assets as indicated in the balance sheet.

under the contract or arrangement. The Group’s maximum credit risk exposure in relation to these is the total mark to market gain, should the counterparties not honour their obligations.

The Group does not hold any credit derivatives to offset its credit exposure. The Group trades with recognised and credit worthy third parties only, and as such collateral is not requested nor is it the Group’s policy to securitise its trade and other receivables.

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The majority of the Group’s sales are to its ultimate parent company, Hindalco Industries Limited. Considering Hindalco Industries Limited’s standing and credit worthiness, the Group believes credit risk is almost negligible.

In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not

There are no past due or material impaired receivables at balance date.

bank loan facilities well before the renewal dates to avoid any inherent liquidity issues when the facilities expire.

Maturity Analysis2011 2010

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Trade and other payables (44,556) - - (44,556) (38,741) - - (38,741)

Interest-bearing liabilities

- Bank loans and overdraft (1,951) (4,411) - (6,362) (659) (6,516) - (7,175)

- Payables to related entities - (698) - (698) - (687) - (687)

(112) (28) - (140) (189) (146) - (335)

Derivatives (26,177) (991) - (27,168) (5,992) - - (5,992)

(72,796) (6,128) - (78,924) (45,581) (7,349) - (52,930)

Maturity Analysis2011 2010

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Trade and other payables (7,591) - - (7,591) (1,508) - - (1,508)

Interest-bearing liabilities

- Bank loans and overdraft (1,951) (4,411) - (6,362) (659) (6,516) - (7,175)

- Payables to related entities - (698) - (698) - (687) - (687)

Derivatives (27,181) (991) - (28,172) (5,992) - - (5,992)

(36,723) (6,100) - (42,823) (8,159) (7,203) - (15,362)For

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Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or

Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable market data.

2011 2010

Quoted market price

(Level 1)

Valuation technique – market

observableinputs

(Level 2)

Valuation technique

– non market

observableinputs

(Level 3) Total

Quoted market price

(Level 1)

Valuation technique – market

observableinputs

(Level 2)

Valuation technique

– non market

observableinputs

(Level 3) Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Trade receivables – related parties - 20,539 - 20,539 - 34,124 - 34,124

Derivatives:

- 3,552 - 3,552 - 108 - 108

- Commodity contracts - 1,004 - 1,004 - - - -

- 25,095 - 25,095 - 34,232 - 34,232

Derivatives:

- Commodity contracts - (27,168) - (27,168) - (5,992) - (5,992)

- (27,168) - (27,168) - (5,992) - (5,992)

Derivatives:

- Commodity contracts - 28,172 - 28,172 - 5,992 - 5,992

- 28,172 - 28,172 - 5,992 - 5,992

Derivatives:

- Commodity contracts - (28,172) - (28,172) - (5,992) - (5,992)

- (28,172) - (28,172) - (5,992) - (5,992)

to similar instruments for which market observable prices exist and other relevant models used by market participants. These valuation techniques use both observable and unobservable market inputs.

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the overall valuation include foreign exchange contracts and forward commodity contracts not traded on a recognised exchange.

There were no transfers between Level 1 and Level 2 and no movement in Level 3 during the year.

(. REVENUES AND EXPENSES

CONSOLIDATED PARENT

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Sale of product (i) 462,622 381,350 - -

Interest 1,535 161 1,170 -

Other - 30 - -

1,535 191 1,170 -

Total revenue 464,157 381,541 1,170 -

(i) Sale of product includes net fair value movement in trade receivables of $(14.541) million (2010: $(6.000) million).

Net gain on disposal of plant and equipment 158 - - -

Net gain on foreign exchange - 26,598 - -

Write back of allowance for impairment on investment in controlled entities - - 2,437 4,636

Write back of accrual no longer required 1,011 - - -

Tax losses distribution income from subsidiary - - 10,638 -

Other - 2,001 - -

Total other income 1,169 28,599 13,075 4,636

Net loss on foreign exchange 6,480 - 266 50Plant and equipment written off - 2,875 - -Business development expenses 89 61 89 61Other 131 - - -

6,700 2,936 355 111

Borrowing costs 1,578 2,636 15 5

Payables to related entities 49 2,065 48 3710 37 - -

1,637 4,738 63 42Unwinding of discount on rehabilitation provision 662 630 - -

2,299 5,368 63 42

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(. REVENUES AND EXPENSES $CONTINUED%

CONSOLIDATED PARENT

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Depreciation of plant and equipment 23,951 19,355 - -Amortisation of mine properties 28,760 28,688 - -Government royalties 23,523 20,233 - -Minimum lease payments – operating lease 4,509 10,732 - -

- Wages and salaries 49,189 43,200 - -4,459 3,830 - -1,882 847 - -

55,530 47,877 - -

). AUDITOR’S REMUNERATION

CONSOLIDATED PARENT

2011 2010 2011 2010$ $ $ $

The auditor of Aditya Birla Minerals Limited is Ernst & Young (Australia).

Amounts received or due and receivable by Ernst & Young (Australia) for:

any other entity in the consolidated group 250,000 235,000 250,000 235,000

- other services in relation to the entity and any other entity in the consolidated group

- tax compliance 21,777 34,052 21,777 34,052

271,777 269,052 271,777 269,052

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*. INCOME TAX

CONSOLIDATED PARENT 2011 2010 2011 2010$’000 $’000 $’000 $’000

The major components of income tax are:

Current income tax

Current income tax charge 12,598 - 12,598 -

Relating to origination and reversal of temporary differences 10,992 26,451 (13,359) (35)

income statement 23,590 26,451 (761) (35)

165 (66) - -

comprehensive income 165 (66) - -

the Group’s applicable income tax rate is as follows:

81,013 87,891 13,520 4,221

At the statutory income tax rate of 30% (2010: 30%) 24,304 26,367 4,056 1,266

Add:

- non-deductible expenses 8 2 8 2

- adjustments in respect of deferred income tax of previous years (722) 87 (902) 87

Less:

- income not subject to tax - (5) (3,923) (1,390)

At effective income tax rate of 29% (Parent: 6%) (2010: 30%, Parent: 1%) 23,590 26,451 (761) (35)

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*. INCOME TAX $CONTINUED%2011

Current Income Tax

Deferred Income Tax

Current Income Tax

Deferred Income Tax

$’000 $’000 $’000 $’000

Opening balance - (36,837) - (10,452)

Charged to income (12,598) (10,992) - (26,451)

Charged to equity - (165) - 66

Closing balance (12,598) (47,994) - (36,837)

Income tax expense in income statement (23,590) (26,451)

Opening balance - 1,422 - 38,355

Charged to income (12,598) 13,359 - 35

Charged to equity - - - -

Transfer of tax losses (net) - (14,828) - (36,968)

Closing balance (12,598) (47) - 1,422

761 35

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BALANCE SHEET2011 2010

$’000 $’000

Deferred income tax at 31 March relates to the following:

Accrued revenue (16) (4,071)

Deferred exploration and evaluation expenditure (4,586) (4,550)

Diesel fuel rebate (53) (44)

(216) (2)

Derivative contracts (1,466) (32)

Prepaid expenditure (21) (26)

Property, plant and equipment (23,761) (12,420)

Mine properties (49,656) (62,009)

Trading stock (7,434) -

Gross deferred income tax liabilities (87,209) (83,154)

Accrued liabilities 190 164

Borrowing costs 16 22

Share issue costs 104 817

Employee entitlements 2,774 2,307

748 176

Derivative contracts 8,250 1,798

Provision for rehabilitation 13,321 6,623

Project pool 13,812 18,022

Trading stock - 15,315

Capital works - 548

Tax losses - 525

Gross deferred income tax assets 39,215 46,317

Net deferred tax liabilities (47,994) (36,837)

Accrued revenue (240) -

- (1)

Gross deferred income tax liabilities (240) (1)

Borrowing costs 16 20

Share issue costs 104 817

Accrued liabilities 73 61

Tax losses - 525

Gross deferred income tax assets 193 1,423

Net deferred tax (liabilities)/assets (47) 1,422

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*. INCOME TAX $CONTINUED%

The Group has Australian capital tax losses for which no deferred tax asset is recognised on the balance sheet of $585,000

statutory tests.

Effective from incorporation, for the purposes of income taxation, Aditya Birla Minerals Limited and its 100% owned subsidiaries have formed a tax consolidated group under Australian tax law. Aditya Birla Minerals Limited is the head entity of the tax consolidated group. Tax expense/income, deferred tax liabilities and deferred tax assets arising from temporary differences

consolidated group using the group allocation approach. Current tax liabilities and assets and deferred tax assets arising from unused tax losses and tax credits of the members of the tax consolidated group are recognised by the Company (as head entity in the tax-consolidated group). Entities within the tax consolidated group have entered into a tax sharing agreement with the head entity. As there is no tax funding arrangement between entities in the tax consolidated group, tax consolidation transactions are accounted for as equity transactions. In the head entity, the carrying amount of investments in subsidiaries are increased by tax consolidation contributions and reduced by tax consolidation distributions. Refer to note 15 for the tax consolidation contributions/distributions.

+. EARNINGS PER SHARE

CONSOLIDATED

2011 2010$’000 $’000

57,423 61,440

Weighted average number of ordinary shares for basic and diluted earnings per share 313,373 313,373

,. DIVIDENDS PAID AND PROPOSED

No dividend have been paid, declared or recommended for the years ended 31 March 2011 and 31 March 2010.

-. CASH AND CASH EQUIVALENTS

CONSOLIDATED PARENT

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Cash at bank and in hand – denominated in AUD 8,380 1,085 37 213

Cash at bank and in hand – denominated in USD 36 1,113 5 7

Short-term deposits – denominated in AUD 62,300 - 34,500 -

Short-term deposits – denominated in USD 73,253 - 73,253 -

143,969 2,198 107,795 220For

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.. TRADE AND OTHER RECEIVABLES

CONSOLIDATED PARENT

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Current

Trade debtors at amortised cost 310 279 - -

Less: Allowance for impairment loss (209) (209) - -

101 70 - -

Trade debtors at fair value - related entities (a), 20(b) 20,539 34,124 - -

20,640 34,194 - -

Other debtors 12,270 2,769 9,597 -

Receivable from related entities 7 220 7 220

Loan to key management personnel - 15 - -

32,917 37,198 9,604 220

Loans to controlled entities - - 170,192 281,128

(a) As at 31 March 2011, sales totalling 16,016 tonnes remained open to price adjustment (2010: 19,014 tonnes).

i) Details of the terms and conditions of credit sales are set out in note 1(k).

ii) Details of the terms and conditions of loan to key management are set out in note 21(d).

iii) Details of the terms and conditions of loans to controlled entities are set out in note 20(e).

#". INVENTORIES

Copper at cost 36,732 25,231 - -Copper at net realisable value - 3,994 - -Copper in ore at cost 3,518 7,224 - -Consumable stocks at cost 22,750 24,367 - -

Less: Allowance for obsolescence on consumables and stores (848) (848) - -62,152 59,968 - -

Copper in ore and under leach at net realisable value 76,441 76,441 - -76,441 76,441 - -

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##. DERIVATIVE FINANCIAL INSTRUMENTS

CONSOLIDATED PARENT

2011 2010 2011 2010

$’000 $’000 $’000 $’000


Derivative foreign exchange contracts 3,552 108 - -

4,556 108 27,181 5,992

Derivative commodity contracts - - 991 -

Derivative commodity contracts 26,177 5,992 27,181 5,992

Non-Current Liabilities

Derivative commodity contracts 991 - 991 -

The Company enters into derivative commodity contracts with counter-parties on behalf of its subsidiaries. The Company has entered into back to back agreements with its subsidiaries for all such transactions.

#!. OTHER ASSETS

Prepayments 3,955 3,432 137 128

#(. PROPERTY, PLANT AND EQUIPMENT

Plant and equipment, at cost 263,943 253,783 - -Less: Accumulated depreciation (106,972) (82,408) - -

156,971 171,375 - -

Leased equipment, at cost - 1,090 - -Less: Accumulated depreciation - (730) - -

- 360 - -

Mine properties, at cost 391,281 366,888 - -Less: Accumulated amortisation (180,886) (152,127) - -

210,395 214,761 - -

Capital work in progress, at cost 14,381 8,816 - -

Total Property, Plant & Equipment 381,747 395,312 - -For

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CONSOLIDATED PARENT

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Reconciliation of the carrying amounts for each class of property, plant and equipment are set out below:

Carrying amount at beginning of the year 171,375 158,969 - -

Additions 5,228 155 - -

Transfer from capital works in progress 4,108 31,606 - -

Transfer from leased equipment 360 - - -

Disposals (149) - - -

Depreciation (23,951) (19,355) - -

Carrying amount at end of the year 156,971 171,375 - -

Carrying amount at beginning of the year 360 360 - -

Transfer to plant and equipment (360) - - -

Carrying amount at end of the year - 360 - -


Expenditure incurred/Additions during the year 23,918 5,832 - -

Transfer from capital works in progress 271 6,615 - -

Disposals/Write Off - (2,219) - -

Amortisation (18,040) (18,073) - -



Transfer from capital works in progress - 26 - -



Expenditure incurred during the year 205 2,205 - -

Amortisation (10,720) (10,615) - -

Carrying amount at the end of the year 39,880 50,395 - -

Total carrying amount of mine properties at the end of the year 210,395 214,761 - -


Additions 9,944 5,463 - -

Transfer to plant and equipment (4,108) (31,606) - -

Transfer to mine properties (271) (6,641) - -

Disposals/Write Off - (656) - -


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#). DEFERRED EXPLORATION AND EVALUATION EXPENDITURE

CONSOLIDATED PARENT

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Exploration and evaluation costs carried forward in respect of mining areas of interest


Additions during the year 379 2,467 - -


The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent on the successful development and commercial exploitation or sale of the respective areas.

jointly held 50% participating interest in the Maroochydore Joint Venture for a consideration of $2.45 million. Birla Maroochydore Pty

tenements are registered in the name of Birla Maroochydore Pty Ltd, due to procedural and administrative processes imposed by the Department of Mines and Petroleum, with which the company is obliged to comply, this is still in progress as at 31 March 2011.

#*. INVESTMENT IN CONTROLLED ENTITIES

Investment in Birla Maroochydore Pty Ltd, at cost - - 10,000 10,000

Less: Adjustment due to tax losses distributed - - (5,087) (4,282)

Net carrying value - - 4,913 5,718

Investment in Birla Nifty Pty Ltd, at cost - - 138,038 138,038

Less: Adjustment due to tax liabilities assumed - - 58,098 29,390

Net carrying value - - 196,136 167,428

Investment in Birla Mt Gordon Pty Ltd, at cost - - 24,000 24,000

Less: Adjustment due to tax losses distributed - - (24,000) (21,563)

Less: Allowance for impairment

Balance at beginning of the year - - (2,437) (7,073)

Written back during the year - - 2,437 4,636

Balance at end of the year - (2,437)

Net carrying value - - - -

- - 201,049 173,146

to tax losses distributed and tax liabilities assumed.

#+. TRADE AND OTHER PAYABLES

Trade creditors 12,560 14,843 24 16

Other creditors and accruals 31,996 23,898 7,567 1,492

44,556 38,741 7,591 1,508

Trade and other creditors are normally settled in accordance with the terms of trade.

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#,. INTEREST'BEARING LIABILITIES

CONSOLIDATED PARENT

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Term loan - (a) (i) & (c) (i) 1,599 409 1,599 409

110 186 - -1,709 595 1,599 409

Term loan - (a) (i) & (c) (i) 3,114 4,800 3,114 4,80028 136 - -

Payables to related entities – (a) (iii) 650 650 650 6503,792 5,586 3,764 5,450

i) The term loan is denominated in US$ and repayable in yearly instalments within 5 years. Interest on the term loan is linked to LIBOR. The effective interest rate at balance date is 4.1%.

ii) The lease liabilities have an average term of 2 years with the option to purchase the assets at the completion of the lease term at a nominal value.

iii) Payables to related entities are unsecured and bear interest based on BBSY.

balance date:

Total facilities available:

- Term loan facility - (i) 96,768 109,182

- Multiple advance, overdraft, bank guarantees, letter of credit line - (ii) 54,363 35,000

151,131 144,182


- Multiple advance, overdraft, bank guarantees, letter of credit line - (ii) 54,363 33,574

74,204 39,906


- Multiple advance, overdraft, bank guarantees, letter of credit line - (ii) - 1,426

76,927 104,276

i)

The term loan facility is to augment working capital requirements and for other general corporate purposes.

ii)

The multiple advance and overdraft line is to facilitate the working capital requirements.

Bank guarantees have been provided mainly to the following parties:

- Electricity, gas, logistic and other service providers.

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#,. INTEREST'BEARING LIABILITIES $CONTINUED%

i)

Ltd and Birla Mt Gordon Pty Ltd.

of Aditya Birla Minerals Limited, Birla Nifty Pty Ltd and Birla Mt Gordon Pty Ltd.

second priority over the working capital assets.

ii)

There were no defaults or breaches on any of the loans during the current and previous years.

#-. PROVISIONS

CONSOLIDATED PARENT

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Employee entitlements 6,848 5,752 - -

Rehabilitation 3,137 5,841 - -

9,985 11,593 - -

Employee entitlements 1,892 1,731 - -

Rehabilitation 41,266 16,235 - -

43,158 17,966 - -

The nature of the provisions is described in note 1(o), 1(u) and 1(w).

The rehabilitation provision represents the present value of rehabilitation costs relating to mine sites, which are expected to be incurred over the life of the mines. However, the timing of rehabilitation expenditure is dependant on the life of the mines which may vary in future.

$’000 $’000

Carrying amount at the beginning of the year 7,483 22,076

Additional provision recognised during the year (net) 4,894 22,687

Amount utilised during the year (3,637) (1,022)

Increase in value due to time passage - 662

Carrying amount at the end of the year 8,740 44,403

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#.. CONTRIBUTED EQUITY AND RESERVES

2011 2010

$’000 $’000

Issued and Paid Up Capital

313,372,551 Ordinary shares (2010: 313,372,551 Ordinary shares) 450,663 450,663

$’000

Movement in ordinary shares on issue

At 31 March 2011 and 31 March 2010 313,372,551 450,663

Ordinary shares have the right to receive dividends as declared and, in the event of winding up the company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held.

Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.

Effective from 1 July 1998, the Corporation legislation in place abolished the concept of authorised capital and par value shares. Accordingly, the Company does not have authorised capital nor par value in respect of its issued shares.

The primary objective of the Company’s capital management is to seek to maximise cash returns to shareholders whilst having regard to

growth opportunities. Management also aims to maintain a capital structure through a combination of debt and equity that ensures the lowest cost of capital available to the Company.

The payment of dividends by the Company in the future will be at the complete discretion of the Directors and will depend upon the

appropriate payout ratio from time to time and any other factors the Directors may consider relevant.

The following table sets out the level of net debt based on the carrying value of the capital of the continuing operations of the Group:

CONSOLIDATED PARENT 2011 2010 2011 2010$’000 $’000 $’000 $’000


Interest-bearing liabilities 5,501 6,181 5,363 5,859

Net debt 149,470 8,379 113,158 6,079

Total equity 530,322 472,513 463,178 448,897

Total capital 679,792 480,892 576,336 454,976

The Group is not subject to any externally imposed capital requirements.

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!". RELATED PARTIES

Aditya Birla Minerals LimitedCountry of

Incorporation%

Shares Held%

Shares Held2011 2010

Birla Nifty Pty Ltd Australia 100% 100%

Birla Maroochydore Pty Ltd Australia 100% 100%

Birla Mt Gordon Pty Ltd Australia 100% 100%

The Group has a secure, long-term relationship with its ultimate parent entity, Hindalco Industries Limited, a company incorporated in India. The Group’s copper in concentrate production is sold to Hindalco Industries Limited under contract at arm’s length terms. These contractual arrangements extend to the life of mine of the Nifty operations and the Mt Gordon operation (the

are negotiated annually with reference to the published benchmark set by major Japanese smelters and include standard industry

of copper concentrate and Rc was set at US$0.0465 (2010: US$0.075) per pound of payable copper, which is 96.5% of contained copper in copper concentrate. There were no price participation charges in the current and previous year.

During the year ended 31 March 2011, transactions between the Group and Hindalco Industries Limited consist of sales and advances made under normal terms and conditions to/by the ultimate parent entity.

The value of transactions with Hindalco Industries Limited during the year and the balances outstanding at the balance date has been set out in the table below:

CONSOLIDATED PARENT 2011 2010 2011 2010

$’000 $’000 $’000 $’000

Trade and other receivables 20,539 34,337 - 213

Transactions during the year:

- Sales of copper concentrate * 470,751 407,458 - -

- Interest on trade payables - (2,028) - -

* During the year ended 31 March 2011, the Group sold 57,289 tonnes of copper contained in concentrate to Hindalco (2010: 53,553 tonnes). Sales of copper concentrate have been reported net of Tc/Rc charges of $17.334 million (2010: $28.847 million).

Details relating to Key Management Personnel, including remuneration paid, are included in note 21.

Aditya Birla Minerals Limited also holds a loan of $650,000 (2010: $650,000) payable to Birla Resources Pty Ltd, a subsidiary of Hindalco Industries Limited. This loan is interest-bearing with no security and is repayable in 2012.

The non-current loans to controlled entities shown in note 9 are unsecured and are repayable on demand. Interest is charged based on BBSY for A$ or LIBOR for US$ for the portion of loans that are interest-bearing.

The Company also enters into derivative contracts with counter-parties on behalf of its subsidiaries. The Company has entered into back to back agreements with its subsidiaries for all such transactions.

entities and the market in which the related entity operates to determine whether there is objective evidence that the related entity receivable is impaired. When such objective evidence exists, the Company recognises an allowance for the impairment loss.

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!#. KEY MANAGEMENT PERSONNEL

Name Position Date of Appointment Date of Resignation

Mr D Bhattacharya Non-Executive Chairman 18 April 2003 -

Dr S Kulwal CEO and Managing Director 9 June 2008 -

Mr M Prasanna Non-Executive Director 20 January 2003 -

Dr S Bhargava Independent Non-Executive Director 21 August 2007 -

Mr M Anghie Independent Non-Executive Director 21 November 2007 -

Mr N Krishnan Independent Non-Executive Director 21 November 2007 -

Mr D Gaur Non-Executive Director 6 October 2010 -

Name Position Date of Appointment Date of Resignation

Mr U Goel * 2 August 2004 -

Mr R Gupta 15 June 2010 -

Mr R JoseGroup Chief Mining Engineer / Acting General Manager – Birla Mt Gordon Pty Ltd 1 September 2006 -

Mr D GreenawayGroup Manager – Business Development & Geology 10 January 2011 -

Mr D Whittle ^ General Manager – Birla Nifty Pty Ltd 17 August 2010 -

Mr C Dawson General Manager – Birla Nifty Pty Ltd 16 March 2009 13 December 2010

notice given by Mr R Gupta.

^ Mr D Whittle was appointed as the Mining Manager of Birla Nifty Pty Ltd on 17 August 2010 and promoted to the General Manager of Birla Nifty Pty Ltd on

CONSOLIDATED PARENT

2011 2010 2011 2010

$ $ $ $

2,587,633 2,148,277 - -

190,350 165,537 - -

2,777,983 2,313,814

No key management personnel held any shares or undertook any equity transactions during the current or previous year.

In 2009, a loan of $35,000 was provided to an executive. The loan is repayable within three years and bears interest at 6% per annum. The loan was fully repaid during the year. A balance of $15,000 was outstanding at 31 March 2010.

Mr N Krishnan, an independent non-executive director, received $30,500 during the year as consulting services for professional services he provided to the Group outside his normal Board and Committee duties (2010: $30,500). These fees were paid at normal commercial terms. No balance was outstanding at 31 March 2011 and 31 March 2010.

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!!. SEGMENT REPORTING

chief operating decision makers) in assessing performance and in determining the allocation of resources.

The reportable segments are based on aggregated operating segments determined by the similarity of activity type, as these are the sources of the Group’s major risks and have the most effect on the rate of return.

Copper mining segment includes activities associated with the mining and production of copper.

Exploration and evaluation segment includes activities associated with the determination and assessment of the existence of commercial economic reserves.

accounting policies.

as they are not considered part of the core operations of any segment and are managed on a Group basis.

$’000 $’000 $’000

External sales (a) 462,622 - 462,622

Other revenue - - -

462,622 462,622

Interest revenue 1,535

464,157

95,477 88,928

Interest revenue 1,535

Corporate costs (7,151)

(2,299)

81,013

Income tax expense (23,590)

57,423

Depreciation and amortisation (52,711) - (52,711)

Net gain on disposal of plant and equipment 158 - 158

561,289 15,590 576,879

Unallocated assets 144,403

721,282

Capital expenditure 16,606 379 16,985

Corporate liabilities (18,355)

Deferred tax liabilities (47,994)

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$’000 $’000 $’000

External sales (a) 381,350 - 381,350

Other revenue 30 - 30

381,380 381,380

Interest revenue 161

381,541

100,947 99,627

Interest revenue 161

Corporate costs (6,529)

(5,368)

87,891

Income tax expense (26,451)

61,440

Depreciation and amortisation (48,043) - (48,043)

Plant and equipment written off (2,875) - (2,875)

572,097 15,180 587,277

Unallocated assets 2,546

589,823

Capital expenditure 7,838 2,467 10,305

Corporate liabilities (6,341)

Deferred tax liabilities (36,837)

(a) Revenue from external customers by geographical locations is detailed below. Revenue is attributed to geographic location based on the location of customers.

CONSOLIDATED

2011 2010

$’000 $’000

Australia 11,391 1,056

India 451,231 380,294

Total revenue 462,622 381,350

The Group’s major customer is Hindalco Industries Limited. Refer to note 20(b) for details.

(b) The location of non-current assets is Australia.

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!(. COMMITMENTS

CONSOLIDATED PARENT

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Capital expenditure contracted for at reporting date, but not provided for:

Payable not later than one year 1,721 1,299 - -

- - - -

- - - -

1,721 1,299 - -

The Group had contractual obligations in relation to various projects of $1.721 million (2010: $1.299 million).

The Group has entered into contracts for the provision of vehicle

Payable not later than one year 4,550 7,686 - -

4,501 4,667 - -

- - - -

9,051 12,353 - -

The Group has entered into operating leases on certain motor vehicles, mining equipment and portable infrastructure. These leases have an average life of between 2 and 5 years with no renewal option included in the contracts.

There are no restrictions placed upon the Group by entering into these leases.

Payable not later than one year 112 189 - -

28 146 - -

- - - -

140 335 - -

(2) (12) - -

Present value of future lease charges 138 323 - -

option to purchase the assets at the completion of the lease term at a nominal value.

In order to maintain current rights of tenure to exploration tenements, the Group is required to outlay lease rentals and to meet the minimum expenditure requirements of the relevant regulatory bodies per annum. Minimum expenditure requirements excluding lease rentals are $2,428,600 (2010: $2,423,433). These commitments are subject to renewal of the leases, renegotiation upon expiry of the

per annum (2010: $2,410,000). The gas transportation agreement is valid until 6 December 2019. For

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!). CONTINGENT LIABILITIES

There are no material contingent liabilities at balance date.

!*. NOTES TO THE STATEMENT OF CASH FLOWS

CONSOLIDATED PARENT 2011 2010 2011 2010

$’000 $’000 $’000 $’000

57,423 61,440 14,281 4,256

Depreciation of plant and equipment 23,951 19,355 - -

Amortisation of mine properties 28,760 28,688 - -

Net gain on disposal of plant and equipment (158) - - -

Allowance for impairment loss on investment in controlled entities written back - - (2,437) (4,636)

Plant and equipment written off - 2,875 - -

Net unrealised foreign exchange differences 629 594 2 2

(Increase)/decrease in trade and other receivables 4,601 (2,574) (10,026) 47

(Increase)/decrease in prepayments (523) (291) (10) 68

(Increase)/decrease in inventories (2,184) (15,505) - -

(Increase)/decrease in deferred derivative assets (4,556) 16,562 - -

Increase/(decrease) in deferred derivative liabilities 21,835 121 - -

- - (25,466) (36,969)

(Increase)/decrease in deferred tax assets - - 1,422 36,934

Increase/(decrease) in deferred tax liabilities 10,992 26,451 47 -

Increase/(decrease) in income tax payable 12,598 - 12,598 -

Increase/(decrease) in trade and other payables 4,465 9,373 (89) 211

Increase/(decrease) in interest-bearing liabilities 225 (31,387) - (1,123)

Increase/(decrease) in provision for employee entitlements 1,258 1,624 - -

Increase/(decrease) in provision for rehabilitation (361) (3,110) - -

158,955 114,216 (9,678) (1,210)

cash equivalents comprise the following at 31 March:

Cash at bank and in hand 8,416 2,198 42 220

Short-term deposits 135,553 - 107,753 -

143,969 2,198 107,795 220

!+. EVENTS SUBSEQUENT TO BALANCE DATE

There are no material subsequent events after the balance date.

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DIRECTORS' DECLARATION

In accordance with a resolution of the Directors of Aditya Birla Minerals Limited, we state that:

1. In the opinion of the Directors:

Company and of the consolidated entity are in accordance with the Corporations Act 2001, including:

i)

ii)

b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

2. This declaration has been made after receiving the declarations required to be made to the Directors in accordance with section

Signed in accordance with a resolution of the directors.

Chairman Managing Director

Perth, 27 April 2011

Chairman

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AUDITOR’S INDEPENDENCE DECLARATIONF

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INDEPENDENT AUDITOR’S REPORTF

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Additional information required by the Australian Stock Exchange Limited and not shown elsewhere in this report is as follows. The information is current as at 17 June 2011.

#. ANNUAL GENERAL MEETING

Date: 18 August 2011

207 Adelaide Terrace Perth, WA 6000

!. REGISTERED OFFICE:

Level 3, Septimus Roe Square 256 Adelaide Terrace Perth WA 6000

Tel: 08 9366 8800

(. REPORTING CALENDAR

for the quarter ended 30 June 2011 : End July 2011

for the quarter ending 30 September 2011 : End October 2011

for the half year ending 30 September 2011 : End November 2011

for the quarter ending 31 December 2011 : End January 2012

for the quarter ending 31 March 2012 : End April 2012

for the full year ending 31 March 2012 : End May 2012

for the year ending 31 March 2012 : End August 2012

). LISTING DETAILS

The Company is listed on the Australian stock Exchange under the code ABY.

*. INVESTOR CORRESPONDENCE:

Company Secretary

Level 3, Septimus Roe Square 256 Adelaide Terrace Perth WA 6000

Tel: 08 9366 8800

[email protected]

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+. LARGEST SHAREHOLDERS

The names of the 20 largest shareholders of ordinary shares are listed below:

Name NumberIssue Shares

Held%

HINDALCO INDUSTRIES LIMITED 159,820,001 51.00

J P MORGAN NOMINEES AUSTRALIA LIMITED 36,333,878 11.59

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 22,637,279 7.22

NATIONAL NOMINEES LIMITED 16,589,266 5.29

8,175,000 2.61

CITICORP NOMINEES PTY LIMITED 7,311,125 2.33

7,237,244 2.31

3,549,203 1.13

1,698,882 0.54

1,190,656 0.38

DEBORTOLI WINES PTY LIMITED 1,087,146 0.35

1,070,268 0.34

QUEENSLAND INVESTMENT CORPORATION 1,043,804 0.33

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA 811,963 0.26

MR DAVID OXLADE 800,000 0.26

657,193 0.21

600,000 0.19

593,561 0.19

546,640 0.17

500,000 0.16

272,253,109 86.88

,. DISTRIBUTION OF SECURITIES

a) Analysis of numbers of shareholders of ordinary shares by size and holding:

Category (size of holding)Share

Holders

1 - 1,000 684

1,001 - 5,000 1,468

5,001 - 10,000 698

10,001 - 100,000 700

100,001 & over 74

3,624

b) The numbers of shareholders holding less than a marketable parcel of shares are:

Number of holders 179

Number of shares 18,504

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-. SUBSTANTIAL SHAREHOLDERS

Hindalco Industries Limited 159,820,001 Ordinary Shares

18,887,500 Ordinary Shares

.. VOTING RIGHTS

Ordinary Shares:

On a show of hands every member present in person or by proxy shall have one vote and upon a poll each share shall have one vote.

#". RESTRICTED SECURITIES

There are no restricted securities.

##. SHARE BUY BACKS

There is no current on market share buy back.

(CONTINUED)

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ADITYA BIRLA MINERALS ANNUAL REPORT !"##

89

I am looking forward to a very successful year for Aditya Birla Minerals and thank you for your continued support.

Debu BhattacharyaCHAIRMAN

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Documents

ANNUAL REPORT !# !## For personal use only - ASX REPORT !"## ADITYA BIRLA MINERALS 5 CONTENTS COMPANY PROFILE 2 HIGHLIGHTS 3 CHAIRMAN’S REPORT 4 ... Both Aditya Birla Minerals and