Document:

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                                                                    EXHIBIT 10.9

THIS AGREEMENT (the "Agreement") is made on this 5th day of October 2004 (Fifth
day of October,Two Thousand Four) at Bhubaneswar.

                                     BETWEEN

ORISSA MINING CORPORATION LIMITED, a company incorporated under the Companies
Act, 1956 and having its registered office at "OMC House", Bhubaneswar, Dist:
Khurda (Orissa) hereinafter called "OMC" (which expression shall, unless
excluded by or repugnant to the context or meaning thereof, include its
associates and successors).

                                       AND

VEDANTA ALUMINA LIMITED, a subsidiary company of M/s. Sterlite Industries
(India) Ltd, registered under the Companies Act,1956 and having its registered
office at 7, Kirol Road, Vidya Vihar (W), Mumbai-400086 hereinafter called
"VEDANTA" (which expression shall unless excluded by or repugnant to the context
or meaning thereof, include its associates and successors).

OMC and VEDANTA are hereinafter collectively referred to as "Parties" and
individually as "Party".

WHEREAS

a)   OMC has applied to the Government of Orissa ("GOO") for separate mining
     leases under the provisions of the appropriate Act and Rules (each a
     "Mining Lease") in respect of the Lanjigarh Mines (as defined hereinafter)
     and the Karlapat Mines (as defined hereinafter).

b)   VEDANTA, intends to set up an integrated aluminium complex in Orissa with
     an alumina refinery of about one (1) million tonnes per year capacity at
     Niyandanger (Lanjigarh) in Kalahandi district to be catered by the above
     mentioned bauxite deposits of Lanjigarh Mine along with another mine (both
     such mines having a cumulative deposit of bauxite ore of about 150 million
     tonnes) besides a 6x120 MW Captive Power Plant and Aluminium Smelter of
     about 2.2 lakh tonnes per year capacity at Bhukhamunda of Jharsuguda
     district.

c)   To help set up such aluminium complex in Orissa, OMC has decided and agreed
     to enter into a JVA (Joint Venture Agreement) with VEDANTA on certain terms
     and conditions hereinafter set forth. In order to operate the Lanjigarh
     Mines and the Karlapat Mines, the Parties agree to set-up a joint venture
     company (the "JVC") on the principal terms and conditions hereinafter set
     forth.

<PAGE>

d)   It is also the intention of the Parties that the bauxite mined from the
     Mines (as defined hereinafter) be sold by OMC to VEDANTA on the principal
     terms and conditions hereinafter set-forth.

NOW THEREFORE, in consideration of the foregoing and the respective covenants
and agreements set forth in the Agreement and intending to be legally bound
thereby, the Parties agree as follows:

                                    ARTICLE 1
                          DEFINITIONS & INTERPRETATION

1.1  Definitions

     In this Agreement unless the context requires otherwise the following
     expressions shall have the meaning expressly assigned to them hereunder.

     "ALUMINIUM SMELTER" shall mean the 6x120 MW Captive Power Plant and
     Aluminium Smelter of about 2.2 lakh tonnes per year capacity proposed to be
     located at Bhukhamunda of Jharsuguda district of Orissa.

     "APPLICABLE LAWS" shall mean all Indian laws including all notifications
     circulars, order, etc. that may be issued by the Director General of Mines
     Safety, Controller General, Indian Bureau of Mines, the Central and State
     Government and other concerned authorities.

     "APPROVALS" shall mean any and all permissions, clearances, licenses,
     authorizations, consents, approvals of or from any Government Authority
     required in connection with undertaking, performing or discharging the
     obligations contemplated by this Agreement.

     "ASSOCIATED COMPANY" with respect to one Person shall mean any other Person
     under the same management. For the purposes of this definition, the term
     "same management" shall have the meaning assigned thereto in Section 370IB
     of the Indian Companies Act, 1956.

     "DAY" shall mean the twenty four (24) hour period beginning and ending at
     00.00 hours midnight Indian Standard Time.

     "DEFINITIVE AGREEMENTS" shall mean the agreements proposed to be entered
     into by the Parties to give effect to the understandings contained herein,
     including among others:

     i)   A Shareholders and Share Subscription Agreement between OMC and
          VEDANTA for and in relation to the JVC;

<PAGE>

     ii)  A Raising Contract Agreement between JVC and OMC for and in relation
          to the raising of Bauxite in the Mines;

     iii) A long term purchase agreement between VEDANTA and OMC for purchase
          of bauxite mined from the Mines.

     "GOVERNMENT AUTHORITY" shall mean the government of India (GOI), or any
     state government or any other statutory body or corporation, any
     department, authority, instrumentality agency, judicial body or tribunal of
     GoI, or any state government or any other statutory body or corporation
     having jurisdiction over the Parties, the Mines, or any portion thereof.

     "KARLAPAT MINES" shall mean the mines having an area of [to be inserted
     prior to final execution] hectares situated in the district of Kalahandi in
     the state of Orissa, the mining plan of which is annexed hereto in ANNEXURE
     I.

     "LANJIGARH MINES" shall mean the mines having an area of 721.323 hectares
     situated partly in the district of Rayagada and partly in the district of
     Kalahandi in the state of Orissa, the mining plan of which is annexed
     hereto in ANNEXURE II.

     "MINES" shall mean the Karlapat Mines and the Lanjigarh Mines collectively.

     "PERSON" shall mean any individual, corporation, company, partnership,
     limited liability company, joint venture, association or trust or any other
     entity or organization;

     "PERIOD OF MINING OPERATION" shall mean the duration of time during which
     JVC undertakes excavation, exploration, exploitation and development of the
     Mine(s).

     "RAISING COST" shall mean the costs associated with mining of bauxite from
     the Mines.

     "REFINERY" shall mean the alumina refinery of about 1 million tonnes per
     year capacity proposed to be located at Niyandanger (Lanjigarh) in
     Kalahandi district of Orissa being set up by Vedanta Alumina Ltd.

     "ROYALTY" shall mean the royalty payable by OMC to the GOO for every tonne
     of bauxite ore removed from the Mines under the provisions of the Mining
     Lease(s).

1.2  INTERPRETATION

(i)  The words and expressions not expressly defined in this Agreement shall
     bear the same meaning as ascribed to them in the Companies Act, 1956, The
     Mines Act, 1952, and /or General Clauses Act, or other relevant Acts, Rules
     and Regulations, Bye-Laws etc thereof.

<PAGE>

(ii) Unless the context otherwise requires, a reference to any Article, Clause,
     Appendix, Schedule, Attachment or Annex shall be to an Article, Clause,
     Appendix, Schedule, Attachment or Annex of this Agreement.

(iii) The Appendices, Schedules, Attachments and Annexes form an integral part
     of this Agreement. In the event of any conflict between any provision of
     the Articles and any provision of the Appendices, Schedules, Attachments or
     Annexes, the provision of the Articles shall prevail.

(iv) Reference to any law or regulation having the force of law includes a
     reference to that law or regulation as from time to time amended, modified,
     supplemented extended or re-enacted.

(v)  The headings of the Articles, Clauses, Appendices, Schedules, Attachments
     and Annexes in this Agreement are inserted for convenience of reference
     only and shall not affect the meaning or interpretation of this Agreement.

(vi) The words "include" or "including" shall be deemed to be followed by
     "without limitation" or "but not limited to" whether or not they are
     followed by such phrases.

(vii) If any provision in Article 1.2 is a substantive provision conferring
     rights or imposing obligations on any Party, effect shall be given to it as
     if it were a substantive provision in the body of this Agreement;

(viii) The rule of construction, if any, that a contract should be interpreted
     against the parties responsible for the drafting and preparation thereof,
     shall not apply.

                                    ARTICLE 2

2.1  The Parties hereby agree to approach the GOO for expediting the grant of
     Mining Leases in favour of OMC in respect of Lanjigarh Mines and the
     Karlapat Mines.

2.2  In the event a Mining Lease is not granted by GOO for the Karlapat Mine,
     any other bauxite mine having at least an equal quantity of bauxite deposit
     (subject to having at least a composite quantity of 150 million tonnes when
     taken along with Lanjigarh Mines) shall be made available by OMC with due
     approval of GOI/GOO and all references contained herein in respect of the
     Karlapat Mines shall apply mutatis mutandis to such other substitute
     mine(s) as and when VEDANTA proceeds to set up an integrated Aluminium
     Smelter in the state of Orissa.

2.3  DEFINITIVE AGREEMENTS

     Subject to obtaining the Mining Lease for the Lanjigarh Mines, the Parties
     hereby agree to enter into the Definitive Agreements, which shall contain
     the following key provisions:

2.3.1 The SHAREHOLDERS AND SHARE SUBSCRIPTION AGREEMENT between OMC and VEDANTA
     for and in relation to the JVC shall provide the following:

(i)  The Parties agree to incorporate the JVC as a private limited liability
     company.

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(ii) Shareholding Pattern: OMC will be allotted 26% of the issued & paid up
     equity share capital of the JVC in consideration of expenses incurred in
     respect of services rendered by OMC for operating the Mines by the JVC as a
     raising contractor and 74% of the equity share capital will be held by
     VEDANTA. Throughout the tenure of this Agreement OMC's share holding will
     be minimum 26% of the issued & paid up share capital free and clear of all
     liens, restrictions, security interests & other adverse claims. OMC will
     not be required to contribute any cash at any point of time, or make any
     financial commitment to the JVC of any nature.

(iii) The JVC will be managed by a Board of Directors comprising six (6)
     directors, two (2) of which shall be nominees of OMC (who shall be part
     time directors not involved in the day-to-day operations/running of the
     JVC) and the remaining four (4) shall be nominees of VEDANTA. It is
     clarified that the Chairman and Managing Director shall be chosen from
     amongst VEDANTA's nominee directors.

(iv) Management Control: Management control and control over the day-to-day
     operation of the JVC shall vest solely with VEDANTA.

(v)  Right of First Refusal: Neither Party shall have the right to sell any of
     its shares in the JVC to any third party without first offering to sell
     such shares to the other Party at the face value.

2.3.2 The RAISING CONTRACT AGREEMENT between JVC and OMC for and in relation to
     the Mines shall contain the following key provisions:

a)   The JVC shall be appointed as the sole raising contractor to explore,
     exploit, develop, operate and maintain the said Mines.

b)   It is expressly understood that OMC will not engage any raising contractor
     other than JVC in the said Mines to raise bauxite.

c)   OMC shall reimburse the Raising Cost to the JVC. OMC shall be responsible
     for payment of all taxes and duties payable in relation to the activities
     contemplated by the Raising Contract Agreement and the sales tax recovered
     will be deposited by OMC with the sales tax authorities and any other
     statutory dues payable to the State government/ central government, any
     other constitutional and statutory bodies shall be paid by OMC.

d)   OMC agrees to appoint JVC as the raising contractor in respect of the
     Lanjigarh Mines for exploration, exploitation and development of bauxite
     deposits therein. OMC shall facilitate JVC to operate the said mining lease
     area for the said purposes hereinbefore mentioned free of any encumbrance.
     The JVC shall carry

<PAGE>

     on exploration, exploitation and development activities of bauxite deposits
     of Lanjigarh Mines on behalf of the OMC subject, however, to the
     limitations and restrictions specifically mentioned below.

e)   The JVC would take up exploration and exploitation of bauxite deposits of
     Lanjigarh Mines exclusively for supplying bauxite ore to its Refinery (as
     defined in Clause 1.1) in Orissa and for no other purpose.

f)   OMC shall allow the JVC to operate the Mining Lease, as the raising
     contractor in respect of Lanjigarh Mines without any let or hindrance for
     the period co-terminus with the life of the Mining Lease having obtained
     due approval from competent quarters and authorities subject to the
     following terms and conditions on execution of the Mining Lease.

     i)   OMC will continue to be lessee in respect of Mines to be operated by
          the JVC.

     ii)  The authority/grant in favour of JVC to operate the Mining Lease for
          the period co-terminus with the life of the Mining Lease is renewable
          after expiry of the said period subject to such terms and conditions
          as may be agreed to mutually by the Parties at the relevant time.

     iii) Mining and related operations shall be carried out and proper records
          shall be maintained by the JVC on behalf of OMC in strict conformity
          with provisions of all Applicable Laws. The JVC shall be liable for
          penalty/fine imposed, if any, for non-compliance of any of the
          provisions under the Applicable Laws. In case of float ore mining
          contracts, the scope of work of the JVC shall also include exploration
          of ore in the area assigned for the work. All risks involved in the
          above works will be borne by the JVC.

     iv)  If for non-performance and/or discharge of the above stated
          obligations of JVC as are enumerated in sub clause (iii) above, any
          liability accrues or devolves on OMC, it is specifically understood
          and agreed to by the Parties that the JVC will fully compensate OMC
          for such purposes .

     v)   The JVC specifically undertakes to provide all vital information to
          OMC as soon as they receive any statutory notice and/or summons and/or
          communication from any statutory body or authority, court or
          quasi-judicial entities or otherwise and shall hold OMC harmless
          before those authorities till such notices, summons and communications
          are fully discharged. Failure on the part of VEDANTA/JVC to keep OMC
          informed about receipt of such notices, summons and communication and
          non-performance of the statutory obligations accruing therefor shall
          be treated as a breach of the Raising Contract Agreement between JVC
          and OMC rendering it void-able at the option of OMC.

<PAGE>

     vi)  During the Prospecting Period, the JVC shall not remove any bauxite
          ore/other minerals without the prior approval of OMC/GOO except for
          testing purpose.

g)   Role and Obligations of the JVC:

     i)   OMC agrees to assist the JVC on best endeavour basis without any
          binding legal obligations, to enable the JVC to obtain the requisite
          Approvals and to successfully implement the project envisaged under
          this Agreement.

     ii)  Acquisition of land relating to the Mines.

     iii) Resettlement and Rehabilitation of the Project Affected Persons
          (hereinafter called PAPs) in accordance with the guideline issued by
          Government of Orissa for the purpose, as per ANNEXURE-III.

     iv)  Construction of the approach road to the Mines.

     v)   Obtain site clearance from the Ministry of Forest & Environment, GOI.

     vi)  Approval of the mine plan from I.B.M.(Indian Bureau of Mines).

     vii) Furnishing notice for the opening of the mine to the Director General
          of Mines Safety (DGMS); District Magistrate and others in terms of the
          Mines Act, 1952.

     viii) Maintenance of all legal records; corporate records; submission of
          all notices, returns etc.

     ix)  Identification of revenue land for compensatory afforestation;
          preparation of scheme for compensatory afforestation after approval of
          State Government; deposit of the requisite amount with state
          government for compensatory afforestation including approval of MOEF
          for transfer of forest land for bauxite mining and approval of the
          afforestation scheme, including payment of net present value for
          forest land involved in conformity with circulars issued by forest
          department and demand raised from time to time.

     x)   All incidental and ancillary things in connection with the above.

h)   Conditions Precedent:

     Reimbursement of expenditure on actual basis incurred as on the date of
     such agreement and subsequently by OMC in obtaining the prospecting
     licenses/Mining Lease(s) by VEDANTA.

<PAGE>

2.3.3. The LONG TERM PURCHASE AGREEMENT between VEDANTA and OMC for purchase of
     bauxite mined from the Mines shall contain the following key provisions:

a)   The bauxite raised by the JVC shall be purchased by VEDANTA by paying OMC
     an amount which will comprise (i) The Raising Cost; (ii) a sum of money
     calculated in accordance with sub-paragraph (b) below; (iii) Royalty
     payable to GOO; and (iv) any other statutory dues payable to the State
     government/ Central government, any other constitutional and statutory
     bodies.

b)   In the event and up to the time that only the Refinery is operational,
     VEDANTA, shall pay to OMC an amount equivalent to the Royalty at prevailing
     rate for every tonne of bauxite ore mined. In the event and from the time
     when both the Refinery and the Aluminium Smelter are operational, VEDANTA
     shall pay to OMC an amount equivalent to fifty percent of the prevailing
     rate of Royalty for every tonne of bauxite ore mined.

     Provided however, that only fifty percent of the Royalty shall be payable
     in respect of all bauxite which is eventually converted into aluminium in
     Orissa, notwithstanding that it is mined prior to the commissioning of, or
     in the absence of, the Aluminium Smelter.

c)   VEDANTA undertakes payment of the money referred in Clause 2.3.3 (a) and
     (b) on quarterly basis from the date of payment of Royalty to GOO. In case
     payment is delayed beyond 90 days, interest at prime lending rate shall be
     payable to OMC from the date that falls 90 days after the payment due date.

d)   Bauxite Ore from the Mines will be utilized exclusively in the proposed
     Refinery and OMC shall not sell the bauxite to any other Person.

e)   VEDANTA shall furnish a schedule of time frame for construction of the
     Refinery and/ or Aluminium Smelter and shall furnish details of progress
     made on the Refinery and/ or the Aluminium Smelter, as applicable, compared
     to the time frame to OMC every quarter.

f)   Subject to Force Majeure if VEDANTA fails to achieve any milestones as
     listed in ANNEXURE IV hereof, for the activities mentioned therein, due to
     the gross negligence or causes attributable directly to VEDANTA, then OMC
     may give notice thereof to VEDANTA. Upon receipt of such notice the Parties
     shall discuss in good faith for a period of 60 days the options for
     obtaining the relevant Approval(s) or achieving the relevant milestone(s).
     At any time after the expiry of such period of 60 Days, unless the Parties
     otherwise agree, OMC may terminate this Agreement with immediate effect by
     giving a written notice of such termination to VEDANTA. It is clarified
     that during the period of 60 days the

<PAGE>

     obligations of the Parties shall continue to subsist on best effort basis.
     In the event this Agreement is terminated pursuant to this Clause, no
     monies shall be payable by VEDANTA to OMC after the termination.

g)   Conditions Precedent: The coming into effect of the Long Term Purchase
     Agreement shall be conditional upon completion of construction of the
     Refinery.

2.3.4 One or more of the DEFINITIVE AGREEMENTS shall contain the following key
     provisions.

(i)  After the successful commissioning of the Refinery VEDANTA will have an
     option to set up the Aluminium Smelter.

(ii) In the event of non-satisfaction of the conditions precedent contained
     therein, resulting in termination of all Definitive Agreements, then upon
     such termination, the mining lands shall, to the extent required by
     Applicable Law, vest with GOO, upon terms and conditions as may be agreed
     between JVC and GOO.

                                    ARTICLE 3
                              CONDITIONS PRECEDENT

     This Agreement shall be effective upon receipt of approval of the Board of
     Directors of OMC and VEDANTA and the GOO to this Agreement.

                                    ARTICLE 4
                                 CONFIDENTIALITY

     Technical data and information furnished to VEDANTA by OMC under this
     Agreement shall not be disclosed or divulged to others by VEDANTA without
     the written consent of OMC except for use thereof in connection with
     obligations envisaged herein or as may be required by Applicable Law.
     Likewise, OMC shall keep secret and confidential all technical and
     commercial data supplied by VEDANTA to OMC.

                                    ARTICLE 5
                             SETTLEMENT OF DISPUTES

5.1  Any dispute and / or difference of any kind whatsoever that may arise
     between the Parties as a result of construction, interpretation or
     application of any of the terms and conditions of this Agreement or
     performance of it (a "Dispute") shall be settled mutually through
     discussion between the chief executives of the Parties at the first
     instance. In the event of the failure of the parties to settle the Dispute
     amicably within a 60 day period, the Dispute shall be finally settled by
     arbitration conducted by a sole arbitrator under the provisions of the
     Arbitration and

<PAGE>

     Conciliation Act, 1996 (the "ACT") and rules made there under. In case the
     Parties fail to appoint a sole arbitrator for the said purpose due to
     difference of opinion, either Party to this will be free to file an
     arbitration petition u/s 11 (6) of the Act, before the Chief Justice of the
     Orissa High Court for such appointment. The venue of the arbitration shall
     be Bhubaneswar. The award of the sole arbitrator shall be final and binding
     on the Parties. The jurisdiction for any legal remedies will be at
     Bhubaneswar.

     Notwithstanding anything contained hereinabove, any Dispute that can be
     quantified in money terms and where the dispute involves a sum money that
     is less than Rs. 30,00,000/- (Rupees Thirty Lakhs Only), the same shall be
     settled through court proceedings.

5.2  Notwithstanding the subsistence of any arbitration proceedings, the Parties
     shall continue to perform their respective obligations under this Agreement
     and either Party shall not withhold any payment obligation admitted by it.

                                    ARTICLE 6
                                  FORCE MAJEURE

     If failure to perform this Agreement, wholly or in part, by either Party is
     caused due to act of war, acts of Governmental Authority, natural
     calamities or any other unforeseen contingencies which are not within the
     control of the Parties affected despite exercise of due diligence by the
     Party affected and the Party is unable to prevent it, then the default will
     not be construed as default giving rise to any claim or damage, if any,
     provided the Party affected by the above force majeure conditions promptly
     notifies the other Party within a reasonable time.

                                    ARTICLE 7
                                   ASSIGNMENT

7.1  VEDANTA may assign the rights and obligations under this Agreement to any
     company only with approval of OMC and Govt. of Orissa.

     OMC may not assign any or all of its rights nor delegate any or all of its
     obligations under this Agreement without the prior written consent of
     VEDANTA, which consent shall not be unreasonably withheld.

7.2. Both the Parties can amend any clause of this Agreement on mutual consent
     in writing and ratified by the GOO.

<PAGE>

                                    ARTICLE 8
                                     NOTICES

8.1  Any notice to be given hereunder shall be in writing. Written notice may be
     delivered (a) by hand ( including by express courier) against written
     receipt; (b) by first class mail postage prepaid; or (c) by facsimile copy
     with telephone confirmation thereof, promptly followed by a written notice
     sent by first class mail postage prepaid to the persons and addresses
     specified below.

8.2  A notice shall be deemed to have been served (a) when delivered by hand at
     the appropriate address for the receiving Party, (b) when received by
     facsimile copy or e-mail, (c) if sent by first class mail postage prepaid,
     5 days after it was posted. In providing service by first class mail, it
     shall be sufficient to prove that the letter containing the notice was
     properly addressed and stamped and posted. The names and addresses for the
     service of notices referred to in this Clause are:

     For notices to OMC

               THE ORISSA MINING CORPORATION LTD.
               POST BOX. NO. 34, BHUBANESHWAR - 751 001

     For notices to VEDANTA

               VEDANTA, 75 NEHRU ROAD,
               VILE PARLE (EAST), MUMBAI - 400 099

8.3  Either Party may change its notice address, telephone number or facsimile
     number by notice to the other Party in the manner specified above. The
     Parties agree to promptly notify the other Party of a change in address,
     telephone number or facsimile number. The Parties may identify other
     addressees for operational notices.

                                    ARTICLE 9
                                     WAIVER

     Neither Party shall be deemed to have waived any right under this
     Agreement, unless such Party shall have delivered to the other party a
     written waiver signed by an authorized officer of such waiving Party. No
     delay or omission in the exercise of any power or remedy shall be construed
     to be a waiver of any default or acquiescence therein.

<PAGE>

                                   ARTICLE 10
                                    LANGUAGE

     The language of this Agreement and all other documentation and notices
     relating to this Agreement shall be the English language.

IN WITNESS WHEREOF the Parties have executed this Agreement at Bhubaneswar, in
duplicate, both of which are treated as original, on the day, month and year,
above written.

For and on behalf of                    For and on behalf of
ORISSA MINING CORPORATION LTD          VEDANTA ALUMINA LTD.

By /s/ Sanjeev Mishra                   By Sandeep Gokhale
   ----------------------------------      -------------------------------------
   Managing Director                       Director (Business Development)
   In presence of                          In presence of

      1) Niranjan Panda                       1) /s/ Niranjan Panda

      2) Joyram Mishra                        2) /s/ Joyram Mishra
<PAGE>

                                                                    ANNEXURE - I

                              BOUNDARY DESCRIPTION

Boundary description of the area over 7840 acres or 3172.74 hects. for ML
applied by M/s. Orissa Mining Corporation for bauxite in Village Karlapat,
Salapara, Jillagan, Tadingpadar, Polingpadar Kand Ranspur etc. in
Thuamal-Rampur, P.S. under Bhawanipatna Sub-Division of Kalahandi district.
Reference toposheet no.65M/2.

As shown in the applied plan the starting point "A" is situated in a direction
of 26 degrees-00' whole circle bearing and a distance of 4600 metres from the
GTS Triangulation point of Khaanduyala Pahada, height of 1041 metres. From the
starting point 'A' traverse runs as follows:-

<TABLE>
<CAPTION>
  Station                                         Distance
to Station     W.C. Bearing     Interior angle   in metres         Remarks
----------   ---------------   ---------------   ---------   -------------------
<S>          <C>               <C>               <C>         <C>
    A-B      177 degrees-00'   151 degrees-00'    8800.00

    B-C                         86 degrees-00'    2570.00

    C-D                        101 degrees-00'    9670.00    Meets the junction
                                                             point of Karlapat
                                                             RF and the dry nala
                                                             which comes from
                                                             hill peak point
                                                             9937 metres

    D-E                   --                --       2850    Runs along the dry
                                                             Nala in N.E.
                                                             direction and at a
                                                             distance of about
                                                             2850 metres and
                                                             meet the station
                                                             point 'E'.

    E-A      148 degrees-00'   100 degrees-00'    2130.00   Close the traverse.
</TABLE>

(i)  Thus the station point of A,B,C,D and E comprises an area of 7840 acres or
     3172.74 Hects.

(ii) The traverse runs in a clock-wise direction from the starting point 'A'.

<PAGE>

                                                                 ANNEXURE - III

REHABILITATION AND RESETTLEMENT PACKAGE FOR THE DISPLACED AND THE PROJECT
AFFECTED PERSONS/FAMILIES IN CONNECTION WITH THE ESTABLISHMENT OF ALUMINA
REFINERY BY M/S STERLITE INDUSTRIES (INDIA) LTD. NEAR LANJIGARH OF KALAHANDI
DISTRICT.

     The following Rehabilitation and Resettlement Package for Rehabilitation of
displaced and the project affected persons/families is proposed on account of
establishment of the 1 MT Alumina Refinery Project by M/s Sterlite Industries
(India) Ltd. near Lanjigarh, Lanjigarh P.S. in the District of Kalahandi, as per
the guidelines issued by the Govt. in Revenue & Excise Department vide their
letter No. 27313/R Dated 01.06.1998.

1.   DEFINITION

1.1  PROJECT AREA : Project area means the land, which is acquired for
     establishment of Industrial Project.

1.2  DISPLACED FAMILIES/PERSONS : A family/person shall be termed as "displaced"
     if such family/person has been a permanent resident of Orissa and
     ordinarily residing in the Project area for at least 3 (three) years prior
     to the date of publication of the Notification U/s 4(1) of L.A. Act. 1894
     and

     a)   on account of acquisition of his/her homestead land is displaced from
          such area or

     b)   he/she is a homesteadless or landless family/persons who has beery is
          required to be displaced.

     Note :- A person/family who does not ordinarily reside in the homestead
     land acquired for this project cannot be termed as "displaced".

1.3  PROJECT AFFECTED PERSONS/FAMILIES (PAP)

          A person/family will be termed as "Project affected persons/family" if
     his/her land (not homestead land) is acquired for establishment of the
     industrial project. These persons are, therefore, affected by the
     establishment of the project by way of acquisition of their private land
     (not homestead land) but are not required to be displaced as their
     homestead land is not being acquired.

1.4  FAMILIES FOR THE PURPOSE OF REHABILITATION AND RESETTLEMENT

     (a) The family means husband and wife and their unmarried children except
     unmarried daughter above 30 years on or before the date of Notification U/s
     4(1) of L.A. Act. 1894 in respect of the area/village.

                                  (SEAL) (SEAL)
<PAGE>

                                        2

     The following categories of persons will be treated as separate families.

     (i)  A Major married son.

     (ii) An Unmarried daughter aged above 30 years.

     (iii) A Divorcee/Deserted woman or widow.

Note:-

          (a)  For the purpose of treating a woman as divorcee, legal documents
               if any in support of the claim will be sufficient. The claimant
               can also make affidavit and file her claim along with a copy of
               such affidavit for eventual decision after due enquiry by the
               District Administration.

          (b)  For the purpose of treating divorcee and widow having no source
               of livelihood as separate family, financial benefit like Old Age
               Pension etc. availed by them should not be taken into account.

     (iv) Physically handicapped and/or mentally retarded person irrespective of
age and sex, to the extent and in the manner indicated below:-

Note:-

     The Blind, the Deaf, the orthopaedically handicapped and mentally retarded
persons suffering from more than 40% permanent disability may be enumerated as
separate family for the purpose of rehabilitation. For this purpose a
certificate issued by the Chief District Medical Officer of the District
indicating nature and percentage of disability will be required.

     (v) All Unmarried brothers and sisters whose parents are not alive shall
also constitute a separate family.

2. SURVEY AND IDENTIFICATION OF DISPLACED AND PROJECT AFFECTED
FAMILIES/PERSONS

     To determine the number of displaced/project affected families/persons on
the basis of the aforementioned criteria, a survey is to be conducted by the
District Administration with the help of people's Representatives of the area in
the affected villages and Identity Card will be issued to such displaced/
project affected persons/families. The Identity Card will be issued under the
signature of Collector, Kalahandi as per the guideline and specification issued
by the Court of Orissa.

                                 (SEAL) (SEAL)

                                                                               2
<PAGE>

                                        3

3. COMPENSATION FOR ACQUISITION OF PRIVATE LAND

     The displaced and project affected persons/families will be compensated for
their agricultural and homestead land, trees thereon, existing residential
structures and other items such as wells etc. as per the provisions under LA
Act.1894. In addition to this the company will pay extra amount as "Ex-gratia"
at the following rates against agriculture & homestead land only.

<TABLE>
<CAPTION>
Category   Kissam                        Components of payment   Total amount to be paid
--------   ------                        ---------------------   -----------------------
<S>        <C>                           <C>                     <C>
    I      Atta, Bagicha, Rasta,         Govt. rate +30% S       Rs.1.00 lakh per Ac.
           Patita, Anyanya, Nala,        + Int. +ex-gratia
           Bijestali & Nadi

   II      Mala                          Govt. rate +30% S       Rs.1.20 lakh per Ac.
                                         + Int. +ex-gratia

   III     Berna                         Govt. rate +30% S       Rs.1.30 lakh per Ac.
                                         + Int. +ex-gratia

   IV      Bahal, Panimahar,             Govt. rate +30% S       Rs.1.50 lakh per Ac.
           Bandha, Munda, Dhoda          + Int. +ex-gratia

    V      Gharabari, Bari               Govt. rate +30% S       Rs.8.00 lakh per Ac.
                                         + Int. +ex-gratia
</TABLE>

(The ex-gratia amount will vary depending on the Govt. rate. There will be no
ex-gratia payment for trees, structures & other items existing in/on the
acquired land).

     However, the ex-gratia amount will be paid by the Company to those
displaced and project affected families/persons who will not approach the courts
for claiming higher compensation for their private land. Otherwise only land
acquisition cost as per the Govt. guideline will be paid to the concerned
displaced and project affected families/persons.

4. REHABILITATION THROUGH EMPLOYMENT

4.1 Employment to one member per family will be provided in the Alumina Refinery
Project including the Mines. The employment can be either direct employment
under the Company or indirect employment under the Contractors engaged by the
Company for various activities. All employments will be as per the skill and
qualification of the persons to be employed.

     While considering displaced and project  affected families/persons
direct/indirect employment the following order of preference shall be followed.

                                  (SEAL) (SEAL)

                                                                               3
<PAGE>

                                        4

          a)   Displaced families/persons losing all lands including Homestead.
               [DF (a)].

          b)   Displaced families/persons losing more than 2/3rd of land and
               Homestead. [DF (b)]

          c)   Displaced families/persons losing more than 1/3rd of land and
               Homestead. [DF (c)]

          d)   Other displaced families/persons losing their homestead land
               irrespective of the extent of other land. [DF (d)]

          e)   Project affected persons/families losing 100% their agricultural
               land and becoming landless. [PAP (e)]

          f)   Other project affected persons/families in descending order of
               the percentage of land loss. [PAP (f)]

Note:-

     (i)   Employment, direct or indirect as mentioned above, shall be provided
           to the nominated member of the displaced and project affected
           families. The nomination has to be done by the head of the family.

     (ii)  Since as per the policy of the State Government, the displaced
           families/ persons (category [DF(a)] to [DF(d)] are only eligible for
           Rehabilitation benefit, employment opportunity will be provided to
           the project affected families (category [PAP (e)] & [PAP(f)] only
           when all eligible persons of the displaced families (category [DF
           (a)] to [DF (d)] are given employment and this will be subject to
           availability of jobs, direct or indirect, in the factory and mines.

     (iii) Persons of age group 18 to 35 shall be eligible for employment,
           direct or indirect whatsoever. Any dispute regarding the age of a
           person shall be examined by the District Administration and the
           decision of the Collector, Kalahandi would be final. For this
           purpose, the age of a person will be decided as on the date of
           Notification of U/s 4(1) of the L.A. Act for the concerned
           area/village.

4.2. For nominated members of displaced and project affected families not
provided with employment in the manner indicated above, the company will assist
in their self employment through allotment of shops, service premises and other
activities in the company township or otherwise.

                                 (SEAL) (SEAL)

                                                                               4
<PAGE>

                                        5

4.3 (a) The families coming under category (a) to (d) of Para 4.1 who are not
provided employment or self employment as indicated in Para 4.1 and 4.2 or who
refuse to avail such employment/self employment would be entitled to an one time
cash grant of two Lakh Rupees.

(b) The families coming under category (e) of Para 4.1 who are not provided
employment or self-employment as indicated in Para 4.1 & 4.2 would be entitled
to an one time cash grant of one Lakh Rupees. But in case someone belonging to
the category (e) of Para 4.1 refuses to avail employment or self employment as
offered by the Company, he/she will not get the one time cash assistance of one
Lakh Rupees.

4.4. The Company shall provide appropriate training facility to the nominated
persons of the displaced and project affected families to acquire skill as
required for such employment. The training can be conducted either in local
Industrial Training Institute by way of sponsoring candidates by the Company or
by sending them to other Industrial Units of the Company. In order to encourage
the displaced and project affected families for self-employment in useful
avocations, the Company will provide necessary guidance, support and also assist
in arranging finance.

5. Rehabilitation Colony.

          1)   All the displaced families will be resettled in the
               Rehabilitation Colony in village Jagannathpur (5 Kms from the
               project site, in Lanjigarh P.S.)

          2)   Each displaced family will be provided with 1/10th of an acre of
               land with Pucca house with RCC slab covering a floor area of 45
               square meter with all developed infrastructure free of cost in
               the Rehabilitation Colony.

          3)   The infrastructure in the Rehabilitation Colony shall include
               provisions of black-topped road with drainage facility,
               electrification for the house and the street, Tube Wells/Dug
               Wells at selected locations and Pipe Water supply to every house,
               Community Centre, Anganwadi Centre with staff quarters, Village
               Pond, Place of

                                  (SEAL) (SEAL)

                                                                               5
<PAGE>

                                        6

               worship, shop rooms, Craft Training Centre, Primary School with
               staff quarters, Play ground, Gramya Jungle plantation etc. This
               list is illustrative and not exhaustive.

          4)   Each of the displaced families who opts for self rehabilitation
               elsewhere (other than in the resettlement colony), will be given
               one time cash grant of Rs.50,000/-

6. INDEXATION OF REHABILITATION GRANT.

     Rehabilitation Grant in Cash, provided in Para 4-3 and 5-4 will be indexed
to the official wholesale price index (WPI) with 1.4.98 as the reference date &
will accordingly be revised once in two years.

7. FACILITIES TO BE EXTENDED TO HOMESTEADLESS & LANDLESS ENCROACHERS.

7.1. Encroachers who are landless (as defined in the OPLE Act. 1972) will get
ex-gratia equal to compensation admissible under L.A. Act. 1894 for a similar
category of Rayati land to the extent of land under their physical possession up
to a maximum of one standard acre if the encroachment is unobjectionable.

7.2. The encroachers who are homesteadless (as defined in the OPLE Act. 1972)
will get ex-gratia equal to compensation for similar category of Rayati land
against the encroached homestead land up to a maximum of 1/10th of an acre if
the encroachment is unobjectionable and in addition the actual cost of structure
thereon. If the encroachment is objectionable they will be entitled to the cost
of the structure only.

8. Incentive for timely vacation

     (i)   The displaced families will be shifted to the newly constructed
           Rehabilitation Colony immediately after completion of the
           construction work.

     (ii)  In order to ensure timely vacation allowance of Rs.500/- per month
           per displaced family shall be provided for a period of one year on
           vacation by the date fixed by the Collector.

                                 (SEAL) (SEAL)

                                                                               6
<PAGE>

                                       7

     (iii) All the displaced families will be provided free transportation for
           themselves and for the household materials which they can salvage
           from their old house upto the new house allotted to them in the
           Rehabilitation Colony by the Company.

9. OTHER FACILITIES TO THE DISPLACED AND PROJECT AFFECTED FAMILIES.

     i.    After acquisition of private land for the Alumina Refinery Project,
           if some patch of land remains with a family/person which is
           economically unviable for further use, then such portion of the land
           will also be acquired by the Company through IDCO.

     ii.   Lands, which are not acquired but would be inaccessible as a result
           of acquisition of surrounding lands for the project, would also be
           acquired through IDCO.

10. DEVELOPMENTAL ACTIVITIES IN THE PROJECT AFFECTED AREA BY THE COMPANY.

     The Company setting up the Industry will undertake developmental activities
in the project affected areas which will be decided by the Rehabilitation
Advisory Committee (RAC) / District Administration. For such activities
preference will be given to villages in which land has been acquired for the
Project followed by other peripheral village/area. The developmental activities
would include provision of safe drinking water, up-gradation of health facility
in the area and by providing Mobile Health Units, Education and Adult literacy
programmes. Agro-Horticulture development by way of model firming,
afforestation, road up-gradation etc. This list is illustrative and not
exhaustive.

     These developmental activities will be undertaken by the Company only after
due approval in the Rehabilitation Advisory Committee (RAC) / District
Administration, as the case may be.

                                 (SEAL) (SEAL)

                                                                               7
<PAGE>

                                       8

11. FORMULATION AND MONITORING OF THE REHABILITATION AND RESETTLEMENT PLAN.

     The Rehabilitation Advisory Committee (RAC) as constituted by the Govt.
from time to time shall prepare a comprehesive rehabilitation and resettlement
plan on the basis of the policy parameters out-lined above and also monitor the
implementation of the plan.

12. MODIFICATION OF THE POLICY.

     The State Govt. reserves the right to modify the R&R Package at any point
of time. The RAC can also suggest to the State Govt. any modification of the R&R
Package in future, if need be.

                                        (SIGNED)
                                        13.5.03
                                        Revenue Divisional, Commissioner,
                                        (Southern Division), Orissa, Berhampur-
                                        Cum-Chairman, Rehabilitation Advisory
                                        Committee, Alumina Refinery Project,
                                        Lanjigarh, Kalahandi.

                                  (SEAL) (SEAL)
<PAGE>

                                                                     ANNEXURE-IV

                   MILE STONE OF M/S. VEDANTA ALUMINA LIMITED

     The following schedule for the development of the project is proposed.

<TABLE>
<S>                                                       <C>
- Commencement of drilling/exploration on the deposit     Already completed
  area.

- Preparation and submission of final mining plan by      Completed
  MECL/FIL.

- Commencement of Civil construction work for Alumina     Commenced
  Refinery.

- Completion of Civil construction work for Alumina       November, 2005
  Refinery.

- Commencement of creating necessary Infrastructure,      April, 2005.
  material-handling system for the Mining operation.

- Completion of Alumina Refinery and Commencement of      September, 2006
  Commercial operations

- Commencement of Mining Operations                       June, 2006

  The above schedule is subject to obtaining the
  following permits/ approvals/ permissions from
  various authorities such as the Govt. of Orissa,
  the Orissa Mining Corporation and the Govt. of India.

- Completion of acquisition of land and handing Over      June, 2005
  the same for commencement of Civil construction for
  the Alumina Refinery Project by the Govt. of Orissa.

- Hold grant of Environmental Ministry for the Sterlite   March 2006.
  Mining Project by the Ministry of Environment and
  Forests. Govt. of India including the Forest
  diversion proposal.
</TABLE>

                                  (SEAL) (SEAL)

                                      -0-<PAGE>

                                                                   Exhibit 10.10

[STAMP]                                                                   [SEAL]

                             HINDUSTAN ZINC LIMITED

                                     [STAMP]

                                SCHEME OF MINING
                              (2006-07 TO 2010-11)
                          (Under Rule 12 of MCDR 1988)
                               RAMPURA AGUCHA MINE
                               DISTRICT - BHILWARA
                                    RAJASTHAN

                         LEASE AREA 1200 HA. (12 SQ.KM)

                                   PREPARED BY
                                 L.S. Shekhawat
                           Recognized Qualified Person
                           Reg. No.:RQP/AJM/276/2005/A

                           RAMPURA AGUCHA MINE 311029

<PAGE>

                                                                          [SEAL]

                                  DECLARATION

The Scheme of Mining has been prepared in full consultation with me and I
understood its contents and agree to implement the same in accordance with the
law.

                                        SIGNATURE OF APPLICANT

                                        /s/ M.S. Mehta
                                        ----------------------------------------
                                        (M.S. Mehta)
                                        CEO & Whole Time Director
                                        Hindustan Zinc Limited
                                        Yashad Bhawan, Udaipur 313 004

<PAGE>

                                                                          [SEAL]

                                  CERTIFICATE

(a)  It is certified that the provisions of Mines Act, Rules and Regulations
     made there under have been observed in the Scheme of mining and wherever
     specific permissions are required, the applicant will approach the Director
     General of Mines Safety.

(b)  It is also certified that the information furnished in the scheme of mining
     is true and correct to the best of my knowledge.

                                        /s/ L.S. Shekhawat
                                        ----------------------------------------
                                        (L.S. Shekhawat)
                                        Recognized Qualified Person
                                        & Sr. Mgr. (Mine Plg.), RAMine
                                        Hindustan Zinc Limited
                                        Reg. No.: RQP/AJM/276/2005/A

                                                                         [STAMP]

<PAGE>

                                                                          [SEAL]

                                   CERTIFICATE

This is to certify that the provisions of Mineral Conservation and Development
Rules, 1988 have been observed in the Scheme of Mining of Rampura Agucha Mine
for an area of 1200 Hectares in Bhilwara district of Rajasthan State of
Hindustan Zinc Limited and wherever specific permissions are required, the
applicant will approach the concerned authorities of Indian Bureau of Mines for
granting the permission.

                                        /s/ L.S. Shekhawat
                                        ----------------------------------------
                                        (L.S. Shekhawat)
                                        Recognized Qualified Person
                                        & Sr. Mgr. (Mine Plg.), RAMine
                                        Hindustan Zinc Limited
                                        Reg. No.: RQP/AJM/276/2005/A

                                                                         [STAMP]

<PAGE>

                                                                          [SEAL]

                                LIST OF DRAWINGS

<TABLE>
<CAPTION>
S.No.   DRAWING DETAILS                             DRAWING NO.
-----   ---------------                             -----------
<S>     <C>                                         <C>
1.      Key Plan                                    HZL/RA/SUR/462

2.      Surface Plan                                HZL/RA/SUR/436

3.      Environment Plan                            HZL/RA/SUR/REV/7

4.      Surface geological plan                     HZL/RA/SUR/445

5.      Geological Transverse Sections showing      HZL/RA/SUR/558
        sections of respective years of scheme &
        ultimate pit

6.      Conceptual Mining Plan                      HZL/RA/SUR/548

7.      Proposed Pit position plan on 1.4.2006      HZL/RA/SUR/551

8.      Proposed development plan for year-1 i.e.,  HZL/RA/SUR/552
        2006-2007

9.      Proposed development plan for year-2 i.e.,  HZL/RA/SUR/553
        2007-2008

10.     Proposed development plan for year-3 i.e.,  HZL/RA/SUR/554
        2008-2009

11.     Proposed development plan for year-4 i.e.,  HZL/RA/SUR/555
        2009-2010

12.     Proposed development plan for year-5 i.e.,  HZL/RA/SUR/556
        2010-2011

13.     Longitudinal section                        HZL/RA/SUR/557
        (Showing Exploration, Ore Reserves, NE
        plunge & Mining during proposed Scheme)

14.     Waste dump plan showing proposed sequence   HZL/RA/SUR/343
        of dumping during the scheme of mining

15.     Revenue map of Agucha Mine                  HZL/RA/SUR/312-313
</TABLE>

                                                                         [STAMP]

<PAGE>

                                LIST OF ANNEXURES

                                                                          [SEAL]

<TABLE>
<S>   <C>              <C>
1.    Annexure-I       LVS section showing panel grades & tonnage of benches up
                       to 210 mRL section wise

2.    Annexure-II      Updated process flow sheet

3.    Annexure-III     Air monitoring: Ambient, work zone & Stack (Sept. 2005)

4.    Annexure-IV      Piezometer water hydrology analysis report (Sept. 2005)

5.    Annexure-V       Well water hydrology analysis report (Sept. 2005)

6.    Annexure VI      Sound level monitoring report (Sept. 2005)

7.    Annexure VII     List of Khasras with in Mining lease Boundary

8.    Annexure VIII    Excavation Schedule (Bench Wise), Year 2006-07

9.    Annexure IX      Excavation Schedule (Bench Wise), Year 2007-08

10.   Annexure X       Excavation Schedule (Bench Wise), Year 2008-09

11.   Annexure XI      Excavation Schedule (Bench Wise), Year 2009-10

12.   Annexure XII     Excavation Schedule (Bench Wise), Year 2010-11

13.   Annexure XIII    Details of Borehole drilled in 2004-2005

14.   Annexure XIV     Trends of heavy metals in Well No. GWD (Near Gossan dump)

15.   Annexure XV      Point wise reply of letter No. 584(6) (3) (249)/2005-AJM,
                       dated 14.02.2006
</TABLE>

                                                                         [STAMP]

<PAGE>

[STAMP]

[STAMP]                                                                   [SEAL]

                                SCHEME OF MINING

PART - I

1.0  REVIEW OF MINING PLAN

1.1  NAME OF THE MINE: - Rampura Agucha Mine

1.2  APPROVAL LETTER NO.: -
     584(6) (3) (92)/2000-RCM-AJM, dated 6.6.2001 (under Rule 12 of MCDR 1988)
     and subsequently modified "Scheme of Mining" by letter No. 584(6)(3)
     (130)/2003-AJM dated 29.07.03 & letter NO. 584 (6)(3)(134)/2003-AJM dated
     17.09.03. (Under Rule 10 of MCDR 1988)

1.3  DATE OF COMMENCEMENT OF MINING OPERATION: - 18.12.1988

1.4(a) DEFICIENCIES, IF ANY, THAT EXISTED IN THE APPROVED MINING PLAN: There
     were no deficiencies in the approved mining plan/scheme.

1.4(b) REVIEW OF COMPLIANCE POSITION OF SALIENT FEATURES OF THE MINING PLAN ON
     CHAPTER-WISE BASIS:

     (1)  EXPLORATION: No additional exploration was proposed in the Scheme of
          Mining, however looking to the enhanced ore production targets and
          limited life of the open pit, need was felt to establish continuity of
          ore body in depth and thereby upgrade and further augment the
          resources in depth. Accordingly 17 no of exploratory boreholes have
          been completed, with a total drilling of 10855.7 m (2792.70m non-core
          and 8063m diamond core as given in Drawing No. HZL/RA/SUR/557) along
          100 m spaced sections have

                                                                         [STAMP]

RA Mine                                                                   page 1

<PAGE>

          been carried out. The position of the bore holes bore holes have been
          marked in surface plan. Depth range of the bore holes is placed as an
          annexure-XIII

          Details of the additionally established one reserves are given under
          para 3.3 of the proposed Scheme of mining.

          Future drilling has been also planned (approx. 33,000 meters in the
          year 2006-07) for this proposed scheme for

          1.   Precise delineation of south and north plunge of the ore body up
               to 0 mRL. This will help in designing the exact configuration of
               the open pit.

          2.   Up gradation of resources up to -250 mRL and enhancement of
               resources further up to -450 mRL.

          However, exploratory drilling in subsequent years will be communicated
          as soon as it will get finalized.

     (2)  MINE DEVELOPMENT: Comparative statement of planned development &
          actual development are as under:

PLANNED DEVELOPMENT

<TABLE>
<CAPTION>
                                       Grade         Total
           Overburden      Ore     ------------   Excavation
  Year        (MT)        (MT)      Zn%     Pb%      (MT)
--------   ----------   --------   -----   ----   ----------
<S>        <C>          <C>        <C>     <C>    <C>
2001-02      6850000     1350000   12.22   1.87     8200000
2002-03      6885000     1350000   12.56   1.91     8235000
2003-04     10750000     2150000   12.67   1.98    12900000
</TABLE>

                                                                         [STAMP]

RA Mine                                                                   page 2

<PAGE>

                                                                          [SEAL]

<TABLE>
<S>        <C>          <C>        <C>     <C>    <C>
2004-05     15240000     3080000   12.65   1.94    18320000
2005-06     16125000     3750000   12.73    2.0    19875000
Total       55850000    11680000   12.62   1.92    67530000
</TABLE>

ACTUAL DEVELOPMENT

<TABLE>
<CAPTION>
                                       Grade         Total
           Overburden              ------------   Excavation
  Year        (MT)      Ore (MT)    Zn%     Pb%      (MT)
  ----     ----------   --------   -----   ----   ----------
<S>        <C>          <C>        <C>     <C>    <C>
2001-02      7662951     1553310   12.58   1.68     9216261
2002-03      8950068     1773900   12.62   1.97    10723968
2003-04      8305360     2200025   13.34   2.07    10505385
2004-05     11347340     2451725   13.16   2.02    13799065
2005-06*    14736700     3007500   13.00   1.90    17744200
            --------    --------   -----   ----    --------
Total       51002419    10986460   12.98   1.94    61988879
            ========    ========   =====   ====    ========
</TABLE>

*    Anticipated.

While comparing the actual development with planned development, the actual ore
production during the Scheme of Mining seems to be very near with planned
quantity. Against the planned ore quantity of 11.68 mMT, achievement was 10.99
mMT, with a very less deviation of approx. 6% only.

In the Scheme, waste excavation was proposed at a stripping ratio of 4.78 and
actual achievement is approx. 4.64. With a slight variation in the strip ratio
(0.14), contributing approx. 1.53 mMT of less waste excavation compare to the
planned quantity. The variation of 2.7% in waste excavation is well within the

                                                                         [STAMP]

RA Mine                                                                   page 3

<PAGE>

                                                                          [SEAL]

estimated range of 15%, anticipated in the previous mining scheme.

The proposed conceptual plan for the mine is based on LG techniques and designs
were prepared considering the slope angles as suggested by the geo-technical
consultants i.e. M/s. CMRI-Dhanbad.

Pit optimization and long-term mining schedules have been prepared considering
the latest topography of the pit and hence proposed 5 year plans prepared are in
line with the long-term plans. This will not generate any kind of backlog in the
subsequent years.

(3)  AFFORESTATION PROGRAM: Comparative statement of afforestation planned and
     actual carried out are as under:

NO. OF SAPLINGS PLANTED OR PLANNED TO BE PLANTED:

<TABLE>
<CAPTION>
YEAR                                       PLANNED    ACTUAL
----                                      --------   --------
<S>                                       <C>        <C>
Up to March 2001                          1,80,000   2,57,550
                                          --------   --------
During the approved mining plan period
   2001-02                                    2500      6,000
   2002-03                                    2500      2,000
   2003-04                                    2500        500
   2004-05                                    2500      1,500
   2005-06                                    2500      4,500
                                          --------   --------
   Total plantation during plan period       12500     14,500
                                          --------   --------
   Total plantation till date                   --   2,72,050
   Naturally grown plants (plan period)         --         --
   Naturally grown plants                       --     48,900
   till date
   OVERALL TOTAL PLANTATION               1,92,500   3,20,950
   TILL DATE
</TABLE>

                                                                         [STAMP]

RA Mine                                                                   page 4

<PAGE>

                                                                          [SEAL]

The details of plantation work done in terms of the land covered in the acquired
land are given below:

INDUSTRIAL AREA

[clock]    Total land acquired for industrial use: 869.5 ha.

[clock]    Plantation done up to date: 246 ha.(28.29% of total acquired land)

If the land used for mining activities, tailing dam, waste dump, gossan dump,
beneficiation plant, offices & workshop etc. is excluded from the total land
acquired, the plantation done up to date is 59.21% of the rest of the area.

COLONY

[clock]    Total land acquired for colony: 74 ha.

[clock]    Plantation done up to date: 33.5 ha. (45.27% of total acquired land).

(4)  LAND RECLAMATION AND REHABILITATION:

     There is no change in the conditions assumed in the approved mining plan on
     page no. 45 in para 13.3.2. However 9.5 ha. of ultimate non-moving ends in
     the waste dump has been covered with plantation till Oct.'2005. Anticipated
     area to be generated for soil cover and the schedule for plantation during
     the proposed 5 year is given under para 6.1.1 at page 29.

     All required rehabilitation was made prior to project commissioning, so
     there is no change in the conditions as mentioned in the approved mining
     plan on page no. 49 in para 13.3.12.

(5)  CONTROL OF DUST, NOISE & VIBRATION: There is no major change in the
     conditions as mentioned under

                                                                         [STAMP]

RA Mine                                                                   page 5

<PAGE>

                                                                          [SEAL]

     para 13.3.4 at page no.46 in the approved mining Plan.

     In addition to this, an automatic water sprinkling system has been
     installed on main permanent haul roads. Three nos of 28 KL capacity water
     sprinklers are in use for dust suppression on haul roads with in the pit
     area and wet drilling is being ensured.

     Maximum charge per delay is being controlled to keep the blast vibrations
     within acceptable limits. A typical blast pattern is given at page 20.
     Blasts are being monitored with the help of 'BLASTMATE' and both ground
     vibration and noise level are kept within the threshold limit. For further
     improvement in blast performance and to reduce the Air Over Pressure,
     Non-el initiation system has been introduced. Majority of the boulders in
     ore are dealt with the help of a hydraulic 'Rock Breaker. This has improved
     the environment further by eliminating / reducing the need of secondary
     blasting.

(6)  Any other significant feature: None.

1.4(C) REVIEW OF COMPLIANCE POSITIONS OF CONDITIONS AND STIPULATIONS IMPOSED, IF
     ANY, WHILE APPROVING THE MINING PLAN: No specific condition was imposed on
     approving the mining plan.

                                                                         [STAMP]

RA Mine                                                                   page 6

<PAGE>

                                                                          [SEAL]

1.4(d) Review of compliance of violations pointed out after inspection under
     MCDR, 1988 during last five years: Details of violations pointed out (under
     MCDR, 1988), suggestions given after inspection [ ] their status of
     compliance position during the last five years is as under;

<TABLE>
<CAPTION>
               Violation pointed out          Remedial action taken/Reply
Year                   by IBM                      for rectification.
----      -------------------------------   -------------------------------
<S>       <C>                               <C>
2003-04   Violation was given vide letter   Reply was given vide our letter
          no. 320/BLW/Pb-Zn-15-A-MCCM(N)    No. HZL/RA/CM(Mines)-IBM-26/03
          dated 12-12-2003.                 dated 20.12.2003

          For non submission of plans and   Duly updated copy of desired
          sections to the Controller of     plans and sections were sent
          Mines which were required to      along with the letter.
          submit latest by 31st March,
          2003
</TABLE>

1.4(e) Any other point: None.

                                                                         [STAMP]

RA Mine                                                                   page 7

<PAGE>

                                                                          [SEAL]

PART - II

2.0  PROPOSAL UNDER SCHEME OF MINING FOR THE NEXT FIVE YEARS

2.1.1 NAME AND ADDRESS OF APPLICANT:

     Postal address                  Telegraphic address
     Hindustan Zinc limited          HINDZINC, UDAIPUR
     Yashad Bhawan                   Tel.No:2529l82, 3, 4, 5
     yashad Garh                     Fax No.:0294-2525763
     UDAIPUR 313001 (RAJ)

2.1.2 STATUS OF APPLICANT: Private Sector, managed by Board of Directors.

BOARD OF DIRECTORS:                         PHONE NO

CHAIRMAN

1.   Shri Agnivesh Agarwal                  022-56461000
     Chairman-HZL
     Sterlite Industries (India) Ltd.
     Vedanta House
     75, Nehru Road
     Vile Parle (East)
     MUMBAI-400099.

DIRECTORS

2.   Shri Harbhajan Singh                   011-23384211
     Joint Secretary & Financial Adviser,
     Government of India,
     Ministry of Mines,
     Shastri Bhawan,
     NEW DELHI-110 001.

                                                                         [STAMP]

RA Mine                                                                   page 8

<PAGE>
                                                                          [SEAL]

3.   Smt. Ajit Bajpai Pande            011-23384886
     Joint Secretary,
     Government of India,
     Ministry of Mines,
     Shastri Bhawan,
     NEW DELHI-110001

4.   Shri A.C. Wadhawan                011-23794296
     3, Kautilya Marg,
     Chanakyapuri,
     NEW DELHI-110021

5.   Shri Nand Kishore Shukla          0512-2304495
     Commissioner of Income-Tax - I,
     Aayakar Bhawan
     16/69, Civil Lines
     KANPUR-208001.

6.   Shri M.S. Mehta                   0294-2524423
     CEO & Whole Time Director
     Hindustan Zinc Limited
     Yashad Bhawan
     UDAIPUR-313004

7.   Shri Anil Agarwal                 022-56461000
     Sterlite Industries (I) Ltd.
     Vedanta House,
     75, Nehru Road,
     Vile Parle (East),
     MUMBAI-400 099.

                                                                         [STAMP]

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<PAGE>

                                                                          [SEAL]

8.   Shri Navin Agarwal                022-56461000
     Sterlite Industries (I) Ltd.
     Vedanta House
     75, Nehru Road,
     Vile Parle (East)
     MUMBAI-400 099

9.   Shri Tarun Jain                   022-56461000
     Sterlite Industries (I) Ltd.
     Vedanta House
     75, Nehru Road,
     Vile Parle (East)
     MUMBAI-400 099

10.  Shri K.K.Kaura                    022-56461000
     Sterlite Industries (I) Ltd.
     Vedanta House
     75, Nehru Road,
     Vile Parle (East)
     MUMBAI-400 099

2.1.3 NAME OF OWNER DESIGNATED:        Shri M.S.Mehta,
                                       CEO & Whole Time Director,
                                       Hindustan Zinc Limited,
                                       yashad Bhawan,
                                       Udaipur-313001.
                                       (Ph.No: 0294-2524423)

2.1.4 NAME OF AGENT:                   Shri Akhilesh Joshi,
                                       General Manager,
                                       Rampura Agucha Mine,
                                       Hindustan Zinc Limited,
                                       Agucha-311029,
                                       (Ph.No.:01483-229011)

                                                                         [STAMP]

RA Mine                                                                  page 10

<PAGE>

                                                                          [SEAL]

2.2  NAME AND ADDRESS OF RQP & PERSON EMPLOYED UNDER RULE 42(1)(B):

     [clock]    NAME & ADDRESS OF RQP: Sh.L.S. Shekhawat,
                                       Sr. Manager (Mine P[  ]),
                                       Rampura Agucha Mine,
                                       Hindustan Zinc Limited
                                       Agucha-311029.

     [clock]    NAME & ADDRESS OF:     Sh.R.P. Dashora,
                PERSON EMPLOYED UNDER  Chief Manager Mines,
                RULE 42(1)(B)          Rampura Agucha Mine,
                                       Hindustan Zinc Limited,
                                       Agucha-311029
                                       (Ph. No: 01483-229014)

2.2.1 REGISTRATION NO. WITH VALIDITY DATE OF RQP: Reg. No.:
      RQP/AJM/276/2005/A valid upto 01.09.2015

2.3  MINERALS TO BE MINED: Minerals being mined are Sphalerite & Galena (Ore of
     Zinc & Lead respectively). Other major minerals associated with Sphalerite
     and Galena are Pyrite & Pyrhotite. The associated metals being recovered in
     smelters are silver (from Lead concentrate) and Cadmium (from Zinc
     concentrate).

2.4  AREA & DATE OF EXPIRY OF LEASE: The area under mining lease is shown on the
     part plan of India toposheet No. 45K/9 & K/13(Ref. fig. 1.2 in approved
     mining plan).

                                                                         [STAMP]

RA Mine                                                                  page 11

<PAGE>

                                                                          [SEAL]

     Details of land covered in the mining lease is as under:

<TABLE>
<CAPTION>
DISTRICT                              KHASRA NO.       AREA IN    OWNER OF
& STATE    TEHSIL      VILLAGE        BLOCK RANGE      HECTARE   OCCUPANCY
--------   ------     ---------   ------------------   -------   ---------
<S>        <C>        <C>         <C>                  <C>       <C>
Bhilwara   Hurda      Agucha      Details as             560        HZL
Rajsthan   Shahpura   Khothiyan   per current            504        HZL
                      Khera -     revenue                136        HZL
                      Palola      record is
                                  given in
                                  enclosed
                                  drawing no.
                                  HZL/RA/SUR/312-313
</TABLE>

Details of acquired land is as under:

<TABLE>
<CAPTION>
Village                             Private land   Government land     Total
-------                             ------------   ---------------   ---------
<S>                                 <C>            <C>               <C>
Agucha                                188.7 ha.       130.7 ha.      319.4 ha.
Rampura                               117.0 ha.       004.0 ha.      121.0 ha.
Bherukhera                            023.0 ha.              --      023.0 ha.
Kothiyan                              264.0 ha.       034.3 ha.      298.3 ha.
Khera palola                          089.53ha.       016.97ha.      087.0 ha.
Others                                001.0 ha.              --      001.0 ha.
                                      ---------       ---------      ---------
Total for Industrial use(A)           683.23ha.       185.97ha.      869.2 ha.
                                      ---------       ---------      ---------
Hurda                                        --       074.0 ha.      074.0 ha.
                                      ---------       ---------      ---------
Total land acquired for Colony(B)            --       074.0 ha.      074.0 ha.
                                      ---------       ---------      ---------
Total land Acquired (A+B)             683.23ha.       259.97ha.      943.2 ha.
                                      ---------       ---------      ---------
</TABLE>

Revenue maps of Rampura Agucha Mine lease area (Agucha village side and Kothia &
Khera palola side Ref. Drawing No: HZL/RA/SUR/312-313) are enclosed in two parts
as total lease area falls under two different Tehsils, Hurda & Shahpura.

DATE OF EXPIRY OF LEASE is 12.03.2020 (first renewal of lease has been granted
for a period of 20 years with effect from 12.03.2000).

2.5  DATE OF EXPIRY OF 5 YEARS FOR WHICH APPROVED ON THE LAST OCCASION:
     31.03.2006.

                                                                         [STAMP]

RA Mine                                                                  page 12

<PAGE>

                                                                          [SEAL]

3.0  RESERVES & RESOURCES

3.1  CATEGORY-WISE RESERVE AS ESTIMATED IN THE LAST APPROVED MINING PLAN (AS ON
     1.4.2001):

<TABLE>
<CAPTION>
                                                                                                Total
                Proved(A)               Probable(B)           Demonstrated(A+B)     Possible   reserve
         ----------------------   ----------------------   ----------------------    Ore [ ]   (A+B+C)
         Million                  Million                  Million                   Million   Million
 Level     Tons     Pb%    Zn%      Tons     Pb%    Zn%      Tons     Pb%    Zn%      Tons       Tons
------   -------   ----   -----   -------   ----   -----   -------   ----   -----   --------   -------
<S>      <C>       <C>    <C>     <C>       <C>    <C>     <C>       <C>    <C>     <C>        <C>
370-60    *0.143   3.19   18.55        --     --      --     0.143   3.19   18.55     0.033      0.176
360-10    *6.020   1.97   13.87     0.121   2.23   15.47     6.141   2.10   14.18     0.169      6.311
310-60    12.371   2.11   13.75     0.183   3.27   17.82    12.554   2.12   13.81     0.377     12.931
260-10     6.301   2.13   13.88     4.205   2.12   13.90    10.507   2.12   13.89     0.737     11.242
210-60     2.312   1.79   12.17     5.375   1.71   12.12     7.687   1.74   12.13     1.282      8.969
160-10     0.784   1.38   11.39     2.866   1.52   12.05     3.650   1.49   11.91     2.374      6.025
110-60     0.294   2.08   16.81     0.084   2.16   16.76     1.134   2.14   16.78     2.978      4.112
60-00      0.055   2.47   16.79     0.130   2.47   16.79     0.185   2.47   16.79     2.676      2.861
          ------   ----   -----    ------   ----   -----    ------   ----   -----    ------     ------
Total     28.280   2.07   13.73    13.719   1.86   13.07    42.002   2.00   13.52    10.626     52.626
          ======   ====   =====    ======   ====   =====    ======   ====   =====    ======     ======
</TABLE>

<TABLE>
<S>       <C>      <C>                  <C>
380-370   Gossan   0.253 Million tons   1.98% Pb (Total)
                                        10.03% Zn (Total)
                                        0.57% Pb (Nonsulphide)
                                        8.80% Zn (Nonsulphide)
</TABLE>

*    Includes developed reserves.

3.2  DEPLETION OF RESERVES: During the last mining plan period ll.096
     million tons of ore and 0.143 million tons gossan ore (actual up to
     2004-2005 and anticipated for 2005-2006) have been produced. Total 21.923
     million tons ore from ore reserves and 1.490 million tons from gossan zone
     are depleted upto the end of last mining plan.

3.2.1 ADDITIONAL RESERVES ESTABLISHED: During plan period in year 2004-05 deep
     drilling below existing pit has been done. Total 10855.7m (2792.70m
     non-core and 8063m diamond core) drilling in different sections have been
     completed. Based on the intersected zones and Datamine model,

                                                                         [STAMP]

RA Mine                                                                  page 13

<PAGE>

                                                                          [SEAL]

     30.500 million tonnes with 1.71% Pb and 11.63% Zn additional reserve has
     been established up to -250 mRL. Details of bore holes are as given (Ref
     drawing No. 557) below;

                              INTERSECTED ORE ZONE

<TABLE>
<CAPTION>
S. NO.   BH NO.   SECTION    DEPTH    FROM      TO     LENGTH    MRL    %PB     %ZN
------   ------   -------   ------   ------   ------   ------   ----   -----   -----
<S>      <C>      <C>       <C>      <C>      <C>      <C>      <C>    <C>     <C>
   1      RA230     N100    424.00   356.00   412.00    56.00     89    2.66   14.85
   2      RA231     N400    425.00   339.00   366.00    27.00    112    1.62   13.33
   3      RA232     N200    465.35   334.00   374.00    40.00    117    1.96   11.75
   4      RA233     S300    509.05   435.00   441.00     6.00    -34    2.79   18.03
                                     452.00   464.00    12.00    -52    2.05   12.42
   5      RA234     S100    525.55   410.00   452.00    42.00    -27    2.09   14.13
   6      RA235     NS00    455.90   365.00   417.00    52.00     46    2.25   15.26
   7      RA236     N300    409.60   341.00   387.80    46.80    107    2.14   15.28
   8      RA237     S500    543.40   489.00   500.35    11.35    -82    1.14   13.29
   9      RA238     N200    596.35   511.30   514.95     3.65   -120    1.60   13.26
                                     521.75   524.15     2.40   -130    1.71   11.36
  10      RA239     N400    552.50   472.50   475.60     3.10    -87    3.39   13.77
  11     RA-240     N100    551.50   504.10   527.95    23.85   -121    1.79   14.00
  12      RA241     S300    439.25   370.60   373.40     2.80     49    8.00    0.05
                                     383.45   408.10    24.65     28    0.39    8.52
  13      RA242     S200    470.70   434.40    467.9    33.50    -45    1.00   13.58
  14      RA243     S400    486.00   415.00   417.00     2.00    -11   11.58    0.05
                                     424.00   436.00    12.00    -25    0.69    6.37
  15     RA-247     S100    425.35   378.55   406.17    27.62     55    1.44   10.80
  16     RA-251     N300    468.60   404.30   440.85    36.55    -16    2.94   17.15
  17     RA-252     N700     315.5   275.15   288.20    13.05    160    2.99   18.43
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 14

<PAGE>

                                                                          [SEAL]

3.3  CATEGORY-WISE UPDATED ORE RESERVES AND RESOURCE* WITH GRADE AS ON 1.4.2006:

<TABLE>
<CAPTION>
                                           In situ grade
                                           -------------
Category reserve          Million tonnes    % Pb    % Zn
----------------          --------------    ----   -----
<S>                       <C>              <C>     <C>
Developed                      1.401        1.89   12.75
Proved                        17.979        2.03   13.27
Probable                      27.770        1.88   12.42
Total Reserve                 47.150        1.94   12.75
Measured                       0.000        0.00    0.00
Indicated                     11.120        1.71   12.74
Inferred                      13.760        1.73   12.23
Total Resource                24.880        1.72   12.46
                              ------        ----   -----
Total Reserve+ Resource       72.030        1.86   12.65
                              ======        ====   =====
</TABLE>

*    RESERVES AS ON 1.4.2006 ARE ANTICIPATED.

                                                                         [STAMP]

RA Mine                                                                  page 15

<PAGE>

                                                                          [SEAL]

4.0 CONCEPTUAL MINING PLAN : The conceptual Mining Plan is based on the LG
(Lersch Grossman) pit optimization technique carried out by using Whittle
software 4X, pit bottom was arrived and afterwards design work has been done
[ ] Datamine software.

The salient features considered in the designing of the conceptual plan are as
under.

<TABLE>
<S>                                     <C>
(a)  Minimum working width              : 50 meter

(b)  Bench height                       : 10 meter

(c)  Planned ultimate pit wall slopes   :

                                        H/W : 48 degrees
                                        F/W : 35 degrees

                                        Ultimate pit wall slopes are subject to
                                        change at depth on the basis of
                                        recommendations of further Geotechnical
                                        studies and approval from DGMS.

(d)  Berm width & bench angle           : 6.5m (from toe to Crest), individual
                                        bench angle of 70 degrees in F /W and 80
                                        degrees in H/W.
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 16

<PAGE>

                                                                          [SEAL]

<TABLE>
<S>                                     <C>
(e)  Ramps:                             Two ramps, one each in H/W & F/W of 25
                                        meters Width and gradient of 1 in 12.

(f)  Ultimate depth of pit:             Full strike length of the ore body will
                                        be mined up to 140 mRL & southern
                                        portion will be mined further up to 120
                                        mRL.

(g)  Ultimate/overall:                  1:4.8
     stripping ratio

(h)  Total Opencast mine able:          36.31 Million Reserves (As on 1.04.2005)
                                        tonnes

(i)  Anticipated life:                  Approx. 9 years based on the current ore
                                        production of 11400 TPD

(j)  Waste management:                  Waste generated by mining will be dumped
                                        at pre decided sites in ultimate dump
                                        configuration of 4*10 meters lifts for
                                        minimum land degradation. The decided
                                        sites i.e. 1, 2, 3 & 4 are as per
                                        enclosed drawing (drawing
                                        no. HZL/RA/SUR/548)
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 17

<PAGE>

                                                                          [SEAL]

<TABLE>
<S>                                     <C>
                                        which also shows site for sub grade
                                        mineral dump. The area occupied by waste
                                        dump, its volume and quantity of waste
                                        stacked so far in MT (anticipated up to
                                        March 2006) are 12,47,988 sq.m, 32.6
                                        million cu.m and 71.77 million MT
                                        respectively. Density of waste in-situ
                                        is 2.7 t/m3 whereas the density of waste
                                        in waste dump after compaction becomes
                                        2.201 t/m3.

(k)  Sub grade mineral:                 The gossanised ore management found
                                        above 370 mRL is Stacked separately at
                                        the site shown in the drawing no.
                                        HZL/RA/ SUR/548 i.e. site 2. In the
                                        process of dumping gossan two big heaps
                                        (marked in the surface/environment plan
                                        drawing no. HZL/RA/ SUR/436 or drawing
                                        no. HZL/RA/ SUR/REV/74 as no. I & II)
                                        have been developed. In the initial
                                        period, also gossan have been dumped in
                                        small heaps in the area falling between
                                        and around above heap no. I & II, which
                                        is named as heap no. III in
                                        surface/environment plan.
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 18

<PAGE>

                                                                          [SEAL]

<TABLE>
<S>                                     <C>
                                        Thus, total area covered under gossan
                                        comprising heap I, II & III is 2,03,500
                                        sq.m having a varying height of 0 to 12
                                        meters maximum and contains total gossan
                                        (1.490 million MT) produced so far.
                                        Presently no feasible technology for
                                        extraction of metal from gossan is
                                        available.

(1)  Environmental aspect:

                                        As described in the approved mining plan
                                        from page no 36 to 50 (storage &
                                        preservation of top soil, reclamation
                                        and rehabilitation of land,
                                        afforestation, measures for dust
                                        suppression, care for minimum vibration
                                        due to blasting, stabilization and
                                        vegetation of dump sides, treatment and
                                        disposal of water from mine and
                                        beneficiation plant, measures to
                                        minimize adverse effects on water regime
                                        etc.).
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 19

<PAGE>

                                                                          [SEAL]

5.0  MINING

     5.1 SALIENT DESCRIPTION OF PRESENT MINING METHOD:

     Mining is being carried out by shovel dumper combination, same as mentioned
     at page no. 24 under para 4.5 & 4.5.1 of the approved mining plan Proposed
     pit plans and sections of respective years of mining scheme (from 2006-07
     to 2010-11) showing details mining are enclosed separately.

     There is no major change in blasting practices with respect to the previous
     mining Scheme except introduction of Non-el as initiation system and slight
     change in blasting parameters (Burden & Spacing), which are varied as per
     rock conditions to achieve the optimum blasting results.

     Typical basting pattern in ore and waste are as under

<TABLE>
<CAPTION>
                               Waste             Ore
                               -----             ---
<S>                            <C>               <C>
[clock]   Drill dia.           165mm             165mm

[clock]   Spacing              5.0-7.0 m         3-4m

[clock]   Burden               4-4.5 m           2.75-3.5m

[clock]   Depth of hole        10-11.5m          10-11.5m

[clock]   Sub grade drilling   10%-15%           10%-15%

[clock]   Primary charge/      5-10%(0.5         5-10%(0.5
          Booster charge       in case of cast   in case of cast
                               booster)          booster)

[clock]   Column charge        90-95%            90-95%

[clock]   Charge length        66%               66%

[clock]   Pattern of holes     Staggered/        staggered/
                               Rectangular       Rectangular
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 20

<PAGE>

                                                                          [SEAL]

<TABLE>
<S>                            <C>               <C>
[clock]   Initiation system    None1             None1

[clock]   Detonators           millisec.         millisec.

                               delay             delay
</TABLE>

5.2  YEAR-WISE DEVELOPMENT FOR NEXT FIVE YEARS: The major criteria for planning
     of this scheme are as given below;

     [clock] Uninterrupted supply of uniform grade ore to the beneficiation
          plant.

     [clock] Sump of adequate capacity to store the water in all plans without
          affecting the mine working and to produce required ore of certain
          grade.

     [clock] Flexibility in minor variations in planned quantities up to 15%
          without affecting the long term planning.

     [clock] Availability of developed ore to meet out eventualities.

     [clock] Overburden removal is planned up to maximum possible extent so as
          to keep mine development with in the planned boundaries. The
          flexibility in overburden removal up to certain extent is in-built in
          the plans. So the minor variations in overburden removal can be
          accommodated within the planned limits and can not be ruled out.

     All the plans for year-wise development & ore production are enclosed.
     These plans are prepared considering anticipated pit position as on
     1.4.2006(which may vary a little depending upon the status of actual
     excavation as on 1.11.2005

                                                                         [STAMP]

RA Mine                                                                  page 21

<PAGE>

                                                                          [SEAL]

MAIN FEATURES OF THESE PLANS ARE AS UNDER:

<TABLE>
<S>                          <C>
First year plan 2006-2007:   Planned excavation 1,03,41,854 bcm, ore production
                             37,50,000 MT, Stripping ratio 1:6.54 on tonnes
                             basis. The minor variations in ore production and
                             overburden removal (approx. 15%) are anticipated.

2nd year plan 2007-2008:     Planned excavation 95,56,008 bcm, ore production
                             37,50,000 MT, Stripping ratio 1:5.98 on tonnes
                             basis. The minor variations in ore production and
                             overburden removal (approx. 15%) are anticipated.

3rd year plan 2008-2009:     Planned excavation 94,16,667 bcm, ore production
                             37,50,000 MT, Stripping ratio 1:5.88 on tonnes
                             basis. The minor variations in ore production and
                             overburden removal (approx. 15%) are anticipated.

4th year plan 2009-2010:     Planned excavation 92,77,778 bcm, ore production
                             37,50,000 MT, Stripping ratio 1:5.78 on tonnes
                             basis. The minor variations in ore production and
                             overburden removal (approx. 15%) are anticipated.
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 22

<PAGE>

                                                                          [SEAL]

<TABLE>
<S>                          <C>
5th year plan 2010-2011:     Planned excavation 91,94,444 bcm, ore production
                             37,50,000 MT, Stripping ratio 1:5.72 on tonnes
                             basis. The minor variations in ore production and
                             overburden removal (approx. 15%) are anticipated.
</TABLE>

Deepest point at the end of this scheme will be 190 mRL (sump).

Details of year wise excavation plans are as under;

(i)  IST YEAR (APR' 2006 TO MARCH 2007)
     (REF. DRAWING NO. HZL/RA/SUR/552)

     In this year Mining will be concentrated mainly in H/W portion of the pit.
     Existing push back on 300mRL H/W will be taken down to 270mRL and sump will
     be located below 260mRL, between N-350 to N-100. A new push back is
     proposed to generated in H/W from 390mRL and will be taken down up to
     320mRL by leaving a bench width of 50m on 340mRL so that bench could be
     taken for operation in subsequent year.

     In F/W, benches are taken up to ultimate pit limits from 350mRL to 320mRL
     and partial excavation is considered below 320mRL for the development of
     ore at deeper levels.

          H/W ramp will reach up to 290mRL with straight ramp section.
     Connectivity of F/W and H/W will be at 290mRL.

                                                                         [STAMP]

RA Mine                                                                  page 23

<PAGE>

                                                                          [SEAL]

(ii) 2ND YEAR (APR' 2007 TO MARCH 2008)
     (REF. DRAWING NO. HZL/RA/SUR/553)

     activity will continue with further deepening of the sump and establishing
     it at 240mRL in H/W between N/S-00 and N-300.

     From the available pushbacks, lower one will be developed faster so as ore
     at the lower levels could be developed in subsequent year.

     Push back available on 320mRL will be taken down to 270mRL and another from
     340mRL will be taken down to 330mRL.

     F/W North excavation will be started and benches between 370mRL to 320mRL
     will be shifted to their ultimate pit limits.

     H/W north excavation will also started and benches are taken from 390mRL to
     370mRL.

          The connectivity of F/W and H/W will be maintained at 290 mRL south.

(iii) 3RD YEAR (APR' 2008 TO MARCH 2009)
     (REF. DRAWING NO. HZL/RA/SUR/554)

     Mining will mainly concentrated in northern side of the HW. The existing
     push back available on 360 mRL will be pushed down to 330 mRL. Deepening of
     sump will take place and establishing it at H/W 220mRL between N/S-00 to
     N-300 approximately.

     The push back available on H/W 330mRL will be shifted to 280mRL and another
     push back available at 270mRL will be shifted to 240mRL by leaving approx.
     50m width on 270mRL.

                                                                         [STAMP]

RA Mine                                                                  page 24

<PAGE>
                                                                          [SEAL]

     F/W benches between 310mRL to 280mRL will be shifted to their ultimate pit
     positions and partial excavation will be done from benches 270mRL to
     240mRL.

          The connectivity of H/W and F/W is maintained on 280mRL.

(iv) 4TH YEAR (APR' 2009 TO MARCH 2010)
     (REF. DRAWING NO. HZL/RA/SUR/555)

     Major mining activities during this year involves to bring down existing
     pushing back in H/W benches from 270mRL to 230mRL in continuation of the
     previous year plan. Sump will be further deepened and established at 2l0mRL
     between approximately N-100 and N-400. F/W excavation involves shifting of
     existing push back available and benches will be shifted to their ultimate
     pit positions from 270mRL to 240mRL, and partial excavation will be taken
     at 230mRL.

     Available push back will be continued from 330mRL to 300mRL in H/W north
     and partial excavation will be carried out at 290mRL.

     The F/W and H/W connectivity will be maintained on 280mRL.

(v)  5TH YEAR (APR' 2010 TO MARCH 2011)
     (REF. DRAWING NO. HZL/RA/SUR/556)

     Excavation schedule will be in continuous with previous years.

     Major activities includes, deepening of the sump and establishing it on
     190mRL between

                                                                         [STAMP]

RA Mine                                                                  page 25

<PAGE>

                                                                          [SEAL]

     approximately N/SOO and N-350, and development in H/W.

     In H/W north excavation will be in continuous with previous years and
     proposed to posh down benches from 290mRL to 230mRL and in H/W from
     220 to 200 mRL.

     Final push back is also proposed in this year; covering benches from 390
     to 370 mRL.

     F/W and H/W connectivity will be maintained at 280mRL.

5.3  YEAR WISE PRODUCTION SCHEDULE WITH GRADES: The proposed ore production with
     expected mill feed grade and quantity of overburden and total excavation
     year-wise is indicated below. The specific gravity of ore and overburden
     for the purpose of calculation are considered as 3.0 & 2.7 respectively.

<TABLE>
<CAPTION>
                                           Grade         Total
                                       ------------   Excavation
Year      Overburden (MT)   Ore (MT)    Zn%     Pb%      (MT)
----      ---------------   --------   -----   ----   ----------
<S>       <C>               <C>        <C>     <C>    <C>
2006-07       24548005       3750000   12.77   1.92     28298005
2007-08       22426221       3750000   13.60   1.98     26176221
2008-09       22050000       3750000   12.43   1.82     25800000
2009-10       21675000       3750000   13.62   2.04     25425000
2010-11       21450000       3750000   13.88   2.26     25200000
             ---------      --------   -----   ----    ---------
   Total     112149226      18750000   13.27   2.01    130899226
             =========      ========   =====   ====    =========
</TABLE>

     Year-wise detailed excavation schedule is also shown in annual plans
     for the corresponding year.

                                                                         [STAMP]

RA Mine                                                                  page 26

<PAGE>

                                                                          [SEAL]

5.4  ANY CHANGE IN PROPOSED METHOD OF MINING AND DEPLOYMENT OF MACHINERY: There
     is no change in method of mining from the previous scheme. However, mine
     has procured 1 no of RH-120E excavator (bucket capacity of 15 cum), 8nos of
     Hindustan 777 D-11 dumpers of 95.1 metric tonnes capacity during the last
     scheme period to meet out the enhanced ore and waste excavation targets.
     One no of BEML make track dozer D-355A-3 has also been added in the fleet.

     As mentioned in the earlier scheme of mining, mine has started the
     controlled blasting techniques near the final wall of the pit.

     New updated list of mining machineries available with the mine is as under:

                                                                         [STAMP]

RA Mine                                                                  page 27

<PAGE>

                                                                          [SEAL]

<TABLE>
<CAPTION>
    TYPE OF                                  NO. OF            ELECTRICAL/
   MACHINERY         MODEL       CAPACITY     UNITS    HP    NON ELECTRICAL
   ---------      -----------   ----------   ------   ----   --------------
<S>               <C>           <C>          <C>      <C>    <C>
Dumpers           BH-85         78T             9      877   Non-electrical
                  BH-85         78T             6     1000   Non-electrical
                  CAT 777D      95.1T           8      938   Non-electrical

Excavators        Pc-1000       6.1 m(3)        2      542   Non-electrical
                  (Front-end)
                  Pc-1000       4.3 m(3)        1      542   Non-electrical
                  (Back-hoe)
                  RH-120        15 m(3)         1     1350   Non-electrical
                  RH 90C        9 m(3)          2     1050   Non-electrical

Water sprinkler   WS-28         28KL            3      355   Non-electrical

Drills            C650D         165mm dia.      6      410   Non-electrical
                  C60H          165mm dia       1      300   Non-electrical

Track Dozers      D355A-3       --              5      410   Non-electrical

RT Dozer          B24G          --              1      339   Non-electrical

Motor Grader      BG825         --              2      280   Non-electrical
                  GD905R2                       1      165   Non-electrical

Loader            G1420Z        2m(3)           2      185   Non-electrical

Tyre handler      BL14TH        --              1      130   Non-electrical

Rock breaker      PC-220LC-1                    1      148   Non-electrical
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 28

<PAGE>

                                                                          [SEAL]

6.0  HANDLING OF WASTE/SUB-GRADE MATERIAL

6.1  RATE OF YEARLY DISPOSAL OF WASTE & PROPOSALS, FOR DISPOSAL FOR NEXT FIVE
     YEARS: Rate of yearly generation of waste for next five years i.e. period
     of scheme of mining is given earlier under para 5.3. For disposal of this
     waste generated during the period of scheme of mining, mine has planned to
     dump it at the site 1, 3 & tailing dam as shown in the enclosed drawing No.
     drawing no. HZL/RA/SUR/548). Also plan is enclosed showing waste dumping
     sequence during the scheme of mining period (drawing no. HZL/RA/SUR/343).

     The composition of the waste rocks of the Rampura Agucha mine are as
     follows.

     1.   Garnet-biotite-sillimanite gneiss (GBSG)

     2.   Amphibolites

     3.   Pegmatites

PHYSICO-MECHANICAL PROPERTIES

The properties of different rock types are tabulated below:

<TABLE>
<CAPTION>
                                                    Lithology
                                ------------------------------------------------
                                  Amphibolite         GBSG          Pegmatite
                                --------------   -------------   ---------------
Rock Properties                  Min      Max     Min     Max      Min      Max
---------------                 -----   ------   -----   -----   ------   ------
<S>                             <C>     <C>      <C>     <C>     <C>      <C>
Density                          2.99     3.11    2.67    2.98     2.69     2.74
Young's modulus                 97.82   131.91   26.47   88.83    65.72    90.57
Uniaxial compressive strength   99.45   257.35   40.45   74.23   136.76   148.92
Tensile strength                14.50    21.59    3.12   11.27    10.27    13.33
</TABLE>

The chemical compositions of the rocks are as given in the table below.

                                                                         [STAMP]

RA Mine                                                                  page 29

<PAGE>

                                                                          [SEAL]

<TABLE>
<CAPTION>
                                   Amphibolite &     BGC country
Composition           G.B.S.G.      Calcsilicate        rock
-----------        -------------   -------------   --------------
<S>                <C>             <C>             <C>
SiO2%              55.60 - 58.70   46.30 - 51.70   62.5 - 75.6
A12O3%             15.20 - 21.00   14.80 - 17.30   11.50 - 14.70
TiO2%              0.56 - 0.79     0.6 - 0.68      0.22 - 0.64
Fe2O3%             9.10 - 11.30    7.50 - 11.50    2.40 - 12.10
MgO%               3.00 - 4.50     3.40 - 4.70     1.01 - 2.65
CaO%               0.57 - 2.15     11.30 - 23.10   0.76 - 3.10
Na2O%              0.50 - 1.03     0.52 - 3.0      2.90 - 3.80
K2O%               3.00 - 5.85     0.12 - 4.75     2.35 - 4.00
MnO%               0.05 - 0.11     0.07 - 0.18     0.01 - 0.11
P2O5%              0.03 - 0.08     0.09 - 0.13     0.01 - 0.12
Loss of Ignition
   (L.O.I.)%       0.86 - 2.90     0.24 - 0.68     0.23 - 0.47
Ba ppm             380 - 710       10 - 1350       480 - 770
Zr ppm             120 - 220       85 - 115        280 - 400
Nb ppm             10 - 224        16 - 18         16 - 38
Y ppm              8 - 50          20 - 26         16 - 95
Ce ppm             100 - 160       80 - 110        60 - 160
Rb ppm             145 - 290       9 - 220         105 - 145
Sr ppm             42 - 115        180 - 290       55 - 240
Bi ppm             2 - 14          12 - 16         8 - 12
Ni ppm             36 - 70         2 - 22          6 - 16
Co ppm             22 - 30         2 - 10          2 - 14
Cu ppm             8 - 240         8 - 60          8 - 20
Pb ppm             2 - 192         16 - 135        2 - 8
Zn ppm             95 - 1050       85 - 1950       55 - 1050
</TABLE>

6.1.1 METHOD & MANNER OF WASTE DISPOSAL, DUMP CAPACITY & PRECAUTIONS FOR
     CONFINEMENT: The site 1 of waste disposal is having total reviewed capacity
     of 56 million cubic meters in configuration of 4*10 meters benches in
     ultimate position with top mRL of 435 meters & overall slope angle of
     27 degrees. Mine is dumping presently at site 1 only and till date

                                                                         [STAMP]

RA Mine                                                                  page 30

<PAGE>

                                                                          [SEAL]

     (anticipated up to 31.03.2006) 32.6 million cubic meters waste is dumped in
     total lift of 10 meters with benching towards non-moving area for 10 meters
     each. For the next five years, waste will be dumped at site no. 1, 3 &
     outer periphery of the tailing dam. These sites are sufficient to take care
     of waste disposal during the scheme period. Due care is taken in all
     respect for its confinement like the provision of dump stabilization by
     vegetation on ultimate non-moving ends. Till Oct' 2005, 9.5 ha. of
     non-active area of waste dump have been stabilized by covering with top
     soil. Further area to be generated for top soil cover and plantation during
     the proposed five year scheme will remain as under:

<TABLE>
<CAPTION>
                     Area
                  generated
                     for       No. of
                     soil     saplings         Species
                    cover      to be            to be
Year                (ha.)     planted          planted
----              ---------   --------   -------------------
<S>               <C>         <C>        <C>
Upto 30/10/2005       9.5*         --    Prosopis, dalbergia
2006-07               3.0        1825    Sisoo, Acacia
2007-08               4.0        2500    nilotica,
2008-09               4.0        2500    Parkingsonia
2009-10              17.0       10625
2010-11              20.0       12500
                     ----       -----
Total                48.0       29950
                     ----       -----
</TABLE>

*    AREA ALREADY COVERED WITH TOPSOIL.

                                                                         [STAMP]

RA Mine                                                                  page 31

<PAGE>

                                                                          [SEAL]

     The sequence of dumping during this scheme of mining is shown in the plan
     of waste dump enclosed with this scheme.

     RATE OF YEARLY GENERATION OF SUB-GRADE MINERAL WITH PROPOSALS OF STACKING
     FOR NEXT FIVE YEARS: Ore containing material in excess of 15% non-sulfide
     Zinc are the sub-grade mineral which are to be segregated and stock piled
     separately as gossan. During the present scheme of mining only 0.075
     million MT of sub-grade mineral is expected to be generated, which will be
     stacked separately at designated site of gossan (Site No. II) which has got
     sufficient capacity to take care of this much of quantity. Ref. Drawing no
     HZL/RA/SUR/548, showing the site is enclosed.

6.2  QUANTITY & GRADE OF SUB-GRADE MATERIAL AVAILABLE: Out of total 1.6 million
     MT of gossan, 1.490 million MT of gossan has already been mined out and at
     present 75,000 MT of sub-grade material (gossan) at the grade of 1.98% Pb
     (Total), 10.03% Zn (Total), 0.57% Pb (Nonsulphide) and 8.80% Zn
     (Nonsulphide) are available with the mine.

                                                                         [STAMP]

RA Mine                                                                  page 32

<PAGE>

                                                                          [SEAL]

7.0  USE OF MINERAL: The ore is being treated in beneficiation plant to produce
     lead & zinc concentrates. The concentrate is sent to the Chanderiya Zinc
     smelter, situated at a distance of 120Km to produce lead & zinc metal & its
     by- products. The major uses of lead, zinc & its by- products are listed
     below:

     ZINC

     1.   Galvanizing

     2.   Die casting

     3.   Zinc base alloys

     4.   Zinc oxides & chemicals

     5.   Zinc dust

     6.   Rolled zinc products

     7.   Paints, pigments

     8.   Dry cells

     LEAD

     1.   Storage batteries

     2.   Cable sheathing

     3.   Paints & pigments

     4.   Sheets & pipes

     5.   Lead base alloys

     6.   Defense (arms & ammunitions)

     7.   Dry cells

     CADMIUM

     1.   Electroplating

     2.   Pigments

     3.   Nickel cadmium batteries

     4.   Pressure lubricants

     5.   Catalyst

                                                                         [STAMP]

RA Mine                                                                  page 33

<PAGE>

                                                                          [SEAL]

     SILVER

     1.   Electroplating

     2.   Photographic compound

     3.   Jewelry & coins

     4.   Utensils

     5.   Alloys

     6.   Floating agent

     7.1  CHANGES PROPOSED IN USE OF MINERALS, IF ANY, WITH REASONS: No changes
          have been proposed in the use of minerals.

     7.2  CHANGES IN THE SPECIFICATIONS, IF ANY, IMPOSED BY USER/NEW USER
          INDUSTRIES: No changes in the specifications have been imposed by the
          user/new user industries.

     7.3  EFFORTS MADE FOR UTILIZATION OF THE SUB GRADE MINERAL: Mine is
          exploring the possibilities to recover metal from the sub grade
          mineral i.e. gossan through any feasible technology but till date
          nothing favorable has come out.

                                                                         [STAMP]

RA Mine                                                                  page 34

<PAGE>

                                                                          [SEAL]

8.0  MINERAL BENEFICIATION

8.1  RESULTS OF ANY BENEFICIATION INVESTIGATIONS CONDUCTED & CHANGES MADE IN
     EXISTING PLANT AND TAILING DISPOSAL, IF ANY, WITH BENEFITS :

     CHANGE MADE IN EXISTING PLANT: As indicated in the previous mining scheme,
     during the scheme period beneficiation capacity has been enhanced twice.
     First from 4500 TPD to 6100 TPD in 2003-04, by improving the productivity
     and utilisation of available equipments and increasing the number of
     operating days and then from 6100 TPD to 11400 TPD (3.75 million MT per
     Annum) by adding a new stream of grinding, and flotation in adjacent to the
     existing plant. In the capacity expansion from 6100 TPD to 11400 TPD, an
     additional new stream of semi autogenous grinding (SAG) Mill with Ball mill
     combination has been installed to meet the additional grinding requirement.
     The SAG Mill grinding circuit is feeding directly from the new coarse ore
     stockpile. A separate line of higher capacity flotation cells has been
     installed for the additional capacity to treat the cyclone over flow
     product of the new SAG mill-Ball mill circuit for producing separate
     Lead-Zinc Concentrates. The flotation circuit has been automated using
     state-of-the-art instrumentation and process control technology in order to
     improve concentrate grades and recoveries.

     The then 16-meter diameter and 14 meter dia conventional zinc thickeners
     has been replaced with a new 25-metre diameter high capacity thickener to
     meet the dewatering requirements of Zinc conc. The

                                                                         [STAMP]

RA Mine                                                                  page 35

<PAGE>

                                                                          [SEAL]

     existing 55-metre tailing thickener in combination with the spared 14 meter
     dia Zinc thickener and 14 meter dia lead thickener will provide tailing-
     thickening facilities for the entire tailings generated at 3.75 million TPA
     capacities. The hydro cyclone separation system installed ahead of the
     thickener will reduce the load on tailing thickeners and recover more
     water.

     PROCESS INSTRUMENTATION AND AUTOMATION: A highly automated/instrumented
     process control has been installed in the beneficiation plant design.
     Salient features of the process instrumentation are as below:

     1.   Courier On-line Stream Analysis System for measurement of elements
          concentration in slurries.

     2.   Proscon 2100 NT system is designed to optimize, stabilize and control
          individual unit operations as well as the entire plant.

     3.   Froth Camera System makes use of machine vision technologies to
          measure the speed of the froth.

     4.   Particle Size Analyser PSI 500 is a sizing system for mineral
          slurries. It takes automatic samples from one to three process streams
          and measures their particle size distribution in the range of 1-500
          microns.

     An updated process flow sheet of the beneficiation plant is enclosed
     (ANNEXURE-II).

     BENEFICIATION RESULTS: Tables showing beneficiation results during the plan
     period are as under:

                                                                         [STAMP]

RA Mine                                                                  page 36

<PAGE>

                                                                          [SEAL]

<TABLE>
<CAPTION>
                       Ore Treatment           Lead Concentrate        Zinc Concentrate
                 ------------------------   ---------------------   ----------------------
                                 Assay                   Assay                    Assay
                             ------------            ------------             ------------
Year                 MT       Pb%    Zn*      MT      Pb%     Zn%      MT      Pb%    Zn%
----             ---------   ----   -----   ------   -----   ----   -------   ----   -----
<S>              <C>         <C>    <C>     <C>      <C>     <C>    <C>       <C>    <C>
2001-02          1,516,252   1.68   12.58   19,679   63.74   3.15   317,023   1.61   54.04
2002-03          1,810,266   1.97   12.62   28,930   67.26   3.30   379,239   1.45   54.11
2003-04          2,172,843   2.07   13.34   39,285   67.07   4.65   485,118   1.42   54.01
2004-05          2,359,680   2.00   13.16   42,883   65.83   4.27   533,666   1.42   53.34
2005-06
(upto Oct' 05)   1,949,493   1.94   13.23   35,288   62.96   4.21   442.360   1.45   53.12
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 37

<PAGE>

                                                                          [SEAL]

<TABLE>
<CAPTION>
                          Tailing                        Metal Distribution
                  -----------------------   -------------------------------------------
                                 Assay        Pb conc.       Zn  conc.        Tailing
                              -----------   ------------   -------------   ------------
Year                  MT       Pb%    Zn%    Pb%     Zn%    Pb%     Zn%     Pb%     [ ]
----              ---------   ----   ----   -----   ----   -----   -----   -----   ----
<S>               <C>         <C>    <C>    <C>     <C>    <C>     <C>     <C>     <C>
2001-02           1,179,550   0.67   1.59   49.19   0.32   20.02   89.82   30.79    [ ]
2002-03           1,402,117   0.76   1.59   54.69   0.42   15.42   89.80   29.89    [ ]
2003-04           1,648,440   0.71   1.57   58.50   0.63   15.30   90.38   26.20   8.99
2004-05           1,487,580   0.66   1.48   58.84   0.56   15.89   90.87   25.27   8.57
2005-06           1,471,845   0.62   1.46   56.89   0.52   16.86   91.15   24.25   8.33
(Up to Oct' 05)
</TABLE>

Full analysis of tailing for the month of Oct' 2005 is as under:

<TABLE>
<CAPTION>
ELEMENTS       VALUE
--------   ------------
<S>        <C>
Pb%        0.55
Zn%        1.38
Fe%        10.3
Cd (ppm)   84.0
Cu (ppm)   194
Mn (ppm)   285
Ni (ppm)   99
Ag (ppm)   24
Ns Pb%     0.19
Ns Zn%     0.32
ISM%       60.40
Sio2%      41.5
Gr.C%      6.00
Co (ppm)   Not measured
Sb (ppm)   Not measured
</TABLE>

As may seen from the tables, the beneficiation plant has performed will
throughout the plan period

                                                                         [STAMP]

RA Mine                                                                  page 38

<PAGE>

                                                                          [SEAL]

with recovery efficiency of well above the specified recovery efficiencies of
87% and 50% for Zn and Pb respectively (pare 9.2, page 32, approved mining plan)
except during the year 1997-98 where recovery efficiency of Pb was 49.19%. Also,
tailing losses for Zn and Pb are well within the specified figures of 12% and
37% respectively (para 9.2, page 32, approved mining plan).

(d) TAILING DISPOSAL: The method and manner of tailing disposal is same as
indicated in the approved mining plan. At present the 4th lift (total height 27
meter) of the tailing dam is under construction and the tailing is being poured
into the 3rd lift. There are future expansion plans for raising its height up to
41m.

8.2 BENEFICIATION TEST DONE, IF ANY, ON SUB GRADE MINERAL AND PROPOSALS FOR
INSTALLATIONS OF NEW OR ADDITIONAL BENEFICIATION FACILITY: Mine has explored
various avenues for finding a feasible technology for metal recovery from sub
grade mineral i.e., gossan but till date nothing has been found out.

                                                                         [STAMP]

RA Mine                                                                  page 39

<PAGE>

                                                                          [SEAL]

9.0  ENVIRONMENT MANAGEMENT PLAN

<TABLE>
<CAPTION>
                                                 POSITION AT THE END    PROPOSALS FOR NEXT
    SALIENT ITEMS       PROPOSAL AS PER PLAN           OF PLAN              FIVE YEARS
    -------------      ----------------------   --------------------   -------------------
<S>                    <C>                      <C>                    <C>
Top soil storage,      As per para 13.3.1 at    Total quantity of      The mine will
preservation and       page no.45 of the        topsoil generated      continue to preserve
utilization            approved mining plan     till March' 2005 is    topsoil whenever
                       it was proposed that     444641 cubic meter.    encountered and
                       the top soil available   Out of this a total    utilize it for
                       during regular mining    quantity of 261935     revegetation and
                       activity will be         cubic meter of         other useful
                       stored separately and    topsoil has been       activities.
                       will be used for         utilized for
                       revegetation purpose     revegetation purpose
                       and future land          on the slopes of
                       reclamation. Further     crusher pad, non
                       it was proposed to       moving slopes of
                       reuse the topsoil for    waste dump and
                       revegetation purpose     for lining of
                       on                       tailing dam. Total
                                                quantity of topsoil
                                                preserved at present
                                                (March, 2005)
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 40

<PAGE>

                                                                          [SEAL]

<TABLE>
<S>                    <C>                      <C>                    <C>
                       the slopes of crusher    is 182706 cubic
                       pad and waste dump.      meter.

Land reclamation       As per para 13.3.2 &     As mentioned in the    Reclamation and
and rehabilitation     13.3.12 at page no. 45   previous mining        rehabilitation of
                       & 49 of the approved     scheme, required       matured land will
                       mining plan, mining      rehabilitation of      be done in best
                       has been planned so as   people evacuated       possible way when
                       to minimize the land     from the lease hold    matured land will
                       degradation. Moreover,   area has already       be made available.
                       it is further proposed   been done before the
                       that reclamation &       actual mining
                       rehabilitation will be   activity started.
                       done in best possible    Since no matured
                       way when matured land    land was available
                       will be available.       during the plan
                                                period, reclamation
                                                and rehabilitation
                                                of land was not
                                                possible. Also mine
                                                has worked with
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 41

<PAGE>

                                                                          [SEAL]

<TABLE>
<S>                    <C>                      <C>                    <C>
                                                minimum land
                                                degradation and used
                                                or preserved
                                                topsoil, encountered
                                                during the plan
                                                period.

Waste dump             As per para 7.1 at       Waste dump             For the next five
management             page no. 26 of the       management is being    years, waste will
                       approved mining plan     done as proposed in    be dumped at site
                       it has been proposed     the approved mining    no. 1, 3 & outer
                       to make waste dump in    plan. At present       periphery of
                       4 lifts of 10 meters     waste is being         tailing dam. These
                       each with a maximum      dumped at site 1       sites are
                       height of 40 meters      only (drawing no.      sufficient to take
                       for minimum land         HZL/RA/SUR/548)        care of waste
                       degradation.             which has a total      disposal during the
                                                capacity of 56         scheme period
                                                million cubic meter
                                                and till date
                                                (Anticipated up to
                                                31.03.2006)
                                                approximately 32.6
                                                million cubic meter
                                                of waste is
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 42

<PAGE>

                                                                          [SEAL]

<TABLE>
<S>                    <C>                      <C>                    <C>
                                                dumped in total lift
                                                of 40 meter with
                                                benching towards
                                                non-moving area for
                                                10 meter.

Afforestation          As per para 13.3.3 at    Till date total        Existing plants
program with           page no. 45 of the       320950 number of       will be maintained
precautions proposed   approved mining plan     saplings have been     for better growth
for survival &         an ecoplan was           planted in mine and    and survival. Total
protection of          prepared as an           residential area.      29950 no of
plantation.            additional               This covers an area    saplings will be
                       environmental            of 246 hectares in     planted during the
                       protection measure.      mining area, which     proposed scheme
                       The ecoplan proposed     is 28.29% of total     period covering an
                       to create wide green     acquired land (869.5   area of
                       belts by planting        hectares) for          approximately 48
                       selected species of      industrial use and     hectare in
                       vegetation of            33.5 hectares, which   different locations
                       different heights,       is 42.24% of total     of site No. 1 of
                       foliage and other        acquired land (74      the waste dump.
                                                hectares) for
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 43

<PAGE>

                                                                          [SEAL]

<TABLE>
<S>                 <C>                      <C>                    <C>
                    morphological features   the colony. If the
                    so as to constitute a    land used for
                    thick green leaf wall    mining activities,
                    around the industrial    tailing dam, waste
                    and residential          dump, gossan dump,
                    complex.                 beneficiation plant,
                                             workshop etc. is
                                             excluded from the
                                             total land acquired
                                             for industrial use,
                                             plantation done till
                                             date covers 59.21%
                                             of the remaining
                                             area acquired for
                                             industrial use.

Quality of air      As per para 13.1.7,      All the proposals      Weekly monitoring
                    13.2.3 & 13.3.4 on       are being              of air quality at 6
                    page no. 40, 42 and 50   implemented strictly   selected sites with
                    of the approved mining   and all the            respirable/non-
                    plan, it was             monitored results      respirable dust
                                             are well with in       sampler, heavy metal
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 44

<PAGE>

                                                                          [SEAL]

<TABLE>
<S>                    <C>                      <C>                    <C>
                       proposed to:             the threshold limit.   concentration
                       1. undertake a                                  in RPM/SPM are also
                       quarterly monitoring                            being analyzed,
                       campaign to establish                           dust fall gauges
                       the level of suspended                          are installed at 4
                       dust in the atmosphere                          locations for
                       and also the                                    monitoring of dust
                       quantities of key                               fall rate. Dust
                       indicators of air                               masks will be
                       quality like sulphur                            provided as per
                       dioxide, nitrogen                               requirement.
                       oxide etc.
                       2. monitor air quality
                       with high volume
                       sampler at 3 selected
                       sites and measure
                       heavy metal
                       concentration in SPM.
                       3. make provisions for
                       dust
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 45

<PAGE>

                                                                          [SEAL]

<TABLE>
<S>                    <C>                      <C>                    <C>
                       filters/masks where
                       required.

Quality & make         As per para 13.1.8,      All the proposals      Close monitoring of
of water including     13.2.9 & 13.3.1 4 at     are being              all the parameters
surface & ground       page no. 40, 42, 48      implemented.           will be continued
water                  and 50 of the approved   Monitoring of water    with as proposed in
                       mining plan, it was      quality is being       the approved mining
                       proposed to make         done on a regular      plan.
                       provisions of bunding    basis. All the
                       all around garland       results are well
                       drains, zero             below threshold
                       discharge, monitoring    limits and satisfy
                       of water quality of      the design criteria.
                       ground water, run-off
                       water and monitor
                       quality and quality of
                       infiltration from
                       Agucha tank.

Noise level/           Sources of               Monitoring of          Monitoring of
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 46

<PAGE>

                                                                          [SEAL]

<TABLE>
<S>                    <C>                      <C>                    <C>
Vibration              noise to be              blast results is       blast will be
                       identified, pattern of   being done and         continued with and
                       blast holes and design   records maintained.    based on the
                       of blast to be studied   All monitored          results of the
                       with respect to ground   results are well       study.
                       vibration and sound      with in the
                       pressure level.          threshold limits.
                                                Non-el has been
                                                introduced as an
                                                initiation system,
                                                which will
                                                further reduce the
                                                ground vibration,
                                                AOP and improve the
                                                environmental
                                                aspects.

Treatment of mine      As per para 13.3.7 at    Proposal is being      Same as proposed in
water and              page no. 48 in the       implemented            the approved mining
affluent/toxic         approved mining plan     strictly. Reclaimed    plan
substances before      it was proposed to       water form tailing
discharge and          make provision for       dam is being used in
recirculation of       zero                     beneficiation plant
treated water.                                  after recycling. All
</TABLE>

                                                                         [STAMP]

RA Mine                                                                  page 47

<PAGE>

                                                                          [SEAL]

<TABLE>
<S>                    <C>                      <C>                    <C>
                       discharge plant          the thickners have
                       design, use of re-       been retrofitted
                       claimed water from       with high rate
                       tailing dam and use of   thickners, which
                       mine water in dust       improve the water
                       suppression and          recovery.
                       beneficiation
</TABLE>

As a long term planning regarding environment it is proposed that the top of
tailing dam will be covered after filling up to proposed maximum height. This
can be covered by topsoil preserved in due course of mining. Afterwards
plantation could be planned over it to stabilize it and to prevent any other
adverse effects.

Drawing no. HZL/RA/SUR/ENV/74 showing details of environment management plan is
enclosed.

                                                                         [STAMP]

RA Mine                                                                  page 48

<PAGE>

                                                                          [SEAL]

10.0 ANY OTHER INFORMATION

10.1 Results of any investigation carried out for scientific mining,
     conservation of minerals and protection of environment, future
     proposals, if any;

     1. GEO-TECHNICAL STUDY BY M/S. CMRI-DHANBAD. Geotechnical study was
     conducted by CMRI in the year 2004, in order to optimize the slope angle up
     to a depth of 250m at Rampura Agucha Mine. For this purpose detailed
     geotechnical investigations were conducted. [Illegible]

     These included geotechnical mapping as per ISRM (1978) norms, determination
     of physico-mechanical properties of intact rock, for which rock samples
     from 8 no. of vertical bore holes were analyzed for compressive strength
     (40-70), tensile strength (5-9.25) and Bulk density (2.77 -3.04),
     determination of rock mass rating (RMR) and estimation of rock mass
     properties.

     Based on these data limit equilibrium for different inter ramp angles and
     overall slope angles using GALENA computer program was carried out. The
     analysis showed that large-scale failure is unlikely but small-scale
     failure cannot be completely ruled out and these small-scale failures are
     not of great concern as it can be arrested on the lower benches.

     The Numerical simulation techniques were applied to study the stability of
     slopes, their behavior at varying slope angles and determine optimum slope
     angle. It was done using FLAC computer program. The stability analysis for
     HW and FW was done to cross

                                                                         [STAMP]

RA Mine                                                                  page 49

<PAGE>

                                                                          [SEAL]

     check the finding by Limit Equilibrium method. It has confirmed the
     findings.

     From these investigations CMRI has recommended the overall footwall and
     hanging wall slopes as 40[degrees] and 48[degrees] respectively.

     2. STUDY OF BLAST DESIGN PARAMETERS OF PRE-SPLIT BLASTS BY M/S.
     CMRI-DHANBAD: As mentioned in the earlier scheme of mining, to establish
     the pre-split drilling and blasting near the final pit slopes a study has
     been carried out by CMRI, Dhanbad and a draft report was submitted in July
     2005. CMRI carried out the study of the existing controlled blasting
     technique (pre-split drilling & blasting) at RAM and suggested corrective
     measures to achieve the desired cut line, to achieve designed berm width of
     6.5 meters and batter angle of 70 degree on F/W without affecting the
     benches and by ensuring stability of benches as well as pit slopes. They
     also carried out audit of existing Production blasting procedures and
     suggested optimum drilling and blasting parameters, tools for improvement
     in blast design, blast monitoring and measures for reduction in environment
     impacts due to blasting like vibration, noise & dust.

     Controlled blasts are being carried out as per the recommendation of the
     CMRI. The blasting research team of Central Mining Research Institute,
     Dhanbad is monitoring the blast results on bi-monthly basis and suggesting
     the modifications in the blast design as per the requirement.

                                                                         [STAMP]

RA Mine                                                                  page 50

<PAGE>

3. THE STUDY TO PREPARE LAND USE / LAND COVER MAP TO DETERMINE SPATIAL
DISTRIBUTION OF VARIOUS UNITS IN THE STUDY AREA AND THEIR CHANGES OVER THE
PERIOD OF TIME (1998-2003) BY: STATE REMOTE SENSING CENTRE. THE REPORT CONCLUDED
THAT:

-    There is considerable increase in habitation part area due to new and
     extension of existing habitation in 15 KM radius

-    Cropping pattern and natural vegetation of the area is in healthy
     condition.

-    Waste dump of the mine has increase in area but is being simultaneously
     dense vegetation cover.

-    Good plantation has developed around R.A. Mine campus.

-    Looking to increase in vegetation cover over 1998 to 2003, there is no
     adverse affect on environment due to mining activities in adjoining
     villages and in the area.

Date: 23.02.06                          /s/ L.S. Shekhawat
                                        ----------------------------------------
                                        L.S. SHEKHAWAT
                                        Recognized Qualified Person
                                        & Sr. Mgr. (Mine), RA  Mine, HZL
                                        Reg. No.: RQP/AJM/276/2005/A

[STAMP]

                                                                         [STAMP]

[STAMP]

RA Mine                                                                  page 51

<PAGE>

                                                                          [SEAL]

                                  ANNEXURE-III

                     AIR MONITORING: AMBIENT (SEPT. 2005)
<TABLE>
<CAPTION>
S.                                        SPM       RPM       NOX       S02        CO
NO.        LOCATION           WEEK      (UG/M3)   (UG/M3)   (UG/M3)   (UG/M3)   (UG/M3)
---   ------------------   ----------   -------   -------   -------   -------   -------
<S>   <C>                  <C>          <C>       <C>       <C>       <C>       <C>
1     Main Gate            Ist Week      190.92     92.56     9.92       9.8      1020
                           IInd Week     183.58     86.69     9.97     10.07      1080
                           IIIrd Week    177.88     85.09     9.75       9.7       [ ]
                           IVth Week     180.25     85.63     10.3     10.25      1080
2     Mine Site            Ist Week      228.06    104.43    11.18      11.4      1210
                           IInd Week     220.95     99.86    11.22      10.9      1160
                           IIIrd Week     202.5     93.54    10.95     11.75      1140
                           IVth Week     213.76     99.02     11.1     10.98      1190
3     Magzine              Ist Week      184.59     79.75      7.5       7.9       720
                           IInd Week     172.25     69.56      6.9      6.85       680
                           IIIrd Week     168.8     72.53     7.65       7.3       710
                           IVth Week     179.72     75.48      7.1       7.8       700
4     Agucha Village       Ist Week      148.05      70.5     7.65      8.22       690
                           IInd Week     135.58     63.39     7.92      8.06       620
                           IIIrd Week    124.93     58.82     8.05       7.8       730
                           IVth Week     138.88     68.86     7.16      8.56       590
5     Kothiyan village     Ist Week      119.57     62.52      7.6      7.42       590
                           IInd Week     105.02     48.86     7.25       6.8       610
                           IIIrd Week    109.83     58.29      7.1       8.2       650
                           IVth Week     111.17     56.55        8       7.2       590
6     Bherukhera village   Ist Week      184.88     77.43      7.9      7.25        --
                           IInd Week     192.36     84.37      7.6       7.1        --
                           IIIrd Week    174.42      79.8     7.35       7.5        --
                           IVth Week     179.83     91.04      7.5       6.9        --
</TABLE>

                       AIR MONITORING: STACK (SEPT. 2005)

<TABLE>
<CAPTION>
                                                CRUSHER
S.                                         -----------------   FINE ORE
NO.   STACK ATTACHED TO -->      WEEK      PRIMARY   SECOND.      BIN
---   ---------------------   ----------   -------   -------   --------
<S>   <C>                     <C>          <C>       <C>       <C>
1     SPM (MG/M3)             IST WEEK      104.33    118.50     84.08
                              IIND WEEK     101.58    113.67     79.92
                              IIIRD WEEK     98.00    108.33     75.50
                              IVTH WEEK      89.08    115.17     80.67
2     SO2                                       ND        ND        ND
3     NOX                                       ND        ND        ND
</TABLE>

                     AIR MONITORING: WORK ZONE (SEPT. 2005)

<TABLE>
<CAPTION>
SR.   WORK PLACE LOCATION     SPM (MG/M3)   RPM (UG/M3)
---   -------------------     -----------   -----------
<S>   <C>                     <C>           <C>
1     Primary Cruhser              --          79.76
2     Sec./Tert. Crusher           --          88.52
3     Beneficiation plant          --          80.35
</TABLE>

                                                                         [STAMP]

<PAGE>

                             GOVERNMENT OF RAJASTHAN
                           MINES (GROUP-I) DEPARTMENT

                         No. P-17(20)Mines/Group-I/2000

                                                    Jaipur, Dated: 1st May, 2000

                                      ORDER

As M/s. Hindustan Zinc Limited has applied for grant of first renewal of mining
lease on 24.4.99 for minerals lead, Zinc and associated minerals under Rule
24(1) of minerals under rules 1960, near Village Rampura under Tehsil Hurda,
District Bhilwara, and as the State Government is satisfied that the applicant
is a fit party for said rebate under prevailing related rules.

And because, the area for which the rebate is desired, is free grant.

The State Government by condoning the delay of 48 days in submission of
application for renewal, under the terms & conditions of Major Minerals Rebate
Rules, 1960 as amended from time to time, grant first renewal.

<TABLE>
<S>  <C>                <C>
1.   Minerals           Lead, Zinc and associated minerals.

2.   Area               1200 Hectare, near Vill. Rampura under Tehsil Hurda,
                        District Bhilwara, actual available land will be decided
                        on demarcation as per the detailed letter.

3.   Period             20 years from 13.3.2000

4.   Fixed charges      According to Schedule-III of M.M.R.D. Act 1957 and as
                        will be amended from time to time.

5.   Security           Rs. 10,000/-

6.   Surcharge          As per Schedule-II of M.M.R.D. Act, 1957.

7.   Variable Fee       As fixed by Revenue Officer.

8.   Other taxes        As per State Rules.

9.   Other conditions   According to the minerals rebate rules 1960 and MMRD Act
                        1957 and as will be amended from time to time.
</TABLE>

Note: If, proper agreement is not done within six months from the date of this
      order, than this order will be with held without notice.

                                                                        By order

                                                                            Sd/-
                                                         Officer on Special Duty
                                                                     (Technical)

Sd/-
Deputy Registration Officer
Hurda (District Bhilwara)

<PAGE>

                                     FORM K

                              MODEL FORM FOR MINING
                                  (See Rule 31)

     THIS INDENTURE made this 15th day of September Years 2000 between the
Governor of RAJASTHAN/ the President of India (hereinafter referred to as the
"State Government" which expression shall where the context so admits be deemed
to include the successors and assigns) of the one part and:-

                       (When the lessee is an individual)

Mr. Not applicable

(Name of person with address & occupation) (Hereinafter referred to as "the
lessee" which expression shall where the context so admits be deemed to include
his heirs, executors, administrators, representatives and permitted assigns).

                 (When the Lessees are more than one individual)

Mr. Not applicable

Mr. ____________________________________________________________________________

________________________________________________________________________________

(Name of person with address and occupation) (hereinafter referred to as "the
lessee" which expression shall where the context so admits be deemed to include
their respective heirs, executors, administrators, representatives and their
permitted assigns).

                     (When the Lessee is a registered firm)

Mr. Not applicable

Mr. ____________________________________________________________________________

________________________________________________________________________________

Mr. ____________________________________________________________________________

________________________________________________________________________________

                                        1

<PAGE>

Name and addresses of all the partners all carrying on business in Partnership
under the form and name and style of
M/s.___________________________________ (name of firm) registered under the
Indian Partnership Act, 1932 (9 of 1932) and having their registered office at
________________________________________________________________________________
in the town of (hereinafter referred to as "the licensee" which expression where
the context so admits be deemed to include all the said partners their
respective heirs, executors, legal representatives and permitted assigns).

     (When the Lessee is a registered Company) Hindustan Zinc Limited (Name of
Company) a company registered under the Companies Act 1956 (No.1 of 1956) (Act
under which incorporated) and having its registered office at Yashad Bhawan
Udaipur (Address) (here in after referred to as "the Lessee" which expression
shall where the context so admits be deemed to include its successors and
permitted assigns) of the other part.

     WHEREAS THE Lessee/lessees has/have applied to the State Government in
accordance with the Mineral Concession Rules, 1960 therein after referred in as
the said rules) for a mining lease for Lead, Zinc and associated minerals in
respect of the lands described in Part I of the Schedule here under written and
has/have/deposited with the State Government the sum of Rs.10,000/- as
security and the sum of Rs.1000/- for meeting the preliminary expenses for a
mining lease (and WHEREAS the Central Government has approved the grant of
lease).

                                        2
<PAGE>

WITNESSTH that in consideration of the rents and royalties, covenants and
agreements by and in these presents and the Schedule hereunder written resolved
and contained and on the part of the lessee/lessees to be paid observed and
performed, the State Government (with the approval of the Central Government)
here by grants and demises into lessee/lessees.

All those the mines beds/veing seems of Lead, Zinc and associated minerals (here
state the mineral or minerals) (herein after and in the Schedule referred to as
the said minerals) situated lying and being in or under the lands which are
referred to in part I of the said schedule, together with the liberties, powers
and privileges to be exercised or enjoyed in connection here with which are
mentioned in Part-II of the said schedule subject to the restrictions and
conditions as to the exercise and enjoyment of such liberties, powers and
privileges which are mentioned in Part-III of the said Schedule EXCEPT and
reserving out of this demise unto the State Government the liberties, powers
and privileges mentioned in Part IV of the said Schedule TO HOLD the premises
hereby granted and demised unto the lessee/lessees from the date of
registration/execution of this lease deed or from 13th day of March year 2000
for the term of 20 years hence next ensuring YIELDING AND PAYING therefore into
the State Government the several rents and royalties mentioned in Part V of the
said Schedule at the respective times therein specified subject to the
provisions contained in Part VI of the said Schedule and the lessee/lessees
hereby covenants/covenant with the State Government as in Part VII of the said
Schedule is expressed and the State Government hereby covenants with the
lessee/lessees as in Part VIII of the said Schedule as expressed AND it is
hereby mutually agreed between the parties here to as in Part IX of the said
Schedule is expressed.

IN WITNESS WHEREOF these presents have been executed in manner here under
appearing the day and year first above written.

The Schedule above referred to:

                                     PART I

                             THE AREA OF THIS LEASE

Location and area of the Lessee :-

     All that tract of lands situated at Agucha (Description of area or areas)
1200 Hects in (Pargana) in Hurda the registration District of Bhilwara
Sub-District Hurda and Thane Gulabbura bearing codastral survey Nos. 48K-9/13
containing on area of 1200 Hects there abluts delubeated in the loan hereto
annexed and thereon coloured ____________ and bounded as follows :- As per
enclosed demarcation report and plan.

                                        3

<PAGE>

on the North by                         per plan in demarcation report

on the South by

on the East by                          Report attached herewith

and

On the West by
herein after referred to as "the said lands".

                                     PART-II

Liberties, powers and privileges to be exercised and enjoyed by the
lessee/lessees subject to the restrictions and conditions in Part III.

     To enter upon land and search for, win, work etc.

1.   Liberty and power at all times during the term hereby demised to enter upon
     the said lands and to search for mine, bore, dig, drill for, win, work,
     dress, process, convert, carry away and dispose of the said
     mineral/minerals.

     To sink, drive and make pits, shafts and inclines etc.,

2.   Liberty and power for or in connection with any of the purposes mentioned
     in this part to sink drive make maintain and use in the said lands and pits
     shafts, inclines, drifts levels water-ways airways and other works (and to
     use maintain deepen or extent any existing works of the like nature in the
     said lands).

     To bring and use machinery equipment etc:-

3.   Liberty and power for or in connection with any of the purposes mentioned
     in this part to erect, construct, maintain and use on or under the said
     lands any engines, machinery, plant, dressing floors, furnaces, coke
     ovens, brick-kilns, work-shops, store-houses, bungalows, godowns, sheds and
     other buildings and other works and conveniences of the like nature on or
     under the said lands.

     To make roads and ways etc. and use existing roads and ways :-

4.   Liberty and power for or in connection with any of the purposes mentioned
     in this part to make any tramways, railways, roads, aircraft landing
     grounds and other ways in or over the said lands and to use maintain and go
     and repass with or without horses, cattle, wagons, aircrafts, locomotives
     or other vehicles over the same (or any existing tramways road and other
     ways in or over the said land) on such conditions as may be agreed to.

                                        4
<PAGE>

To get building and road materials etc.:-

5.   Liberty and power for or in connection with any of the purposes mentioned
     in this part to quarry and got stone gravel and other buildings and road
     materials and clay and to use and employ the same and to manufacture such
     clay into bricks or tiles and to use such bricks or tiles but not to sell
     any such material bricks or tiles.

To use water from streams etc.:-

6.   Liberty and power for or in connection with any of the purposes mentioned
     in this part but subject to the right of any existing or future lessees and
     with the written permission of Collector to appropriate and use water from
     any streams water-courses, springs or other sources in or upon the said
     lands and to divert step up or dam any such stream or water-course and
     collect or impound any such water and to make construct and maintain any
     water-course culverts, drains or reservoirs but not as so to deprive any
     cultivated lands, villages, buildings or watering places for livestock of a
     reasonable supply of water as before accustomed nor in any way to foul or
     pollute any stream or springs, Provided that the lessee/lessees shall not
     interfere with the navigation in any navigable stream nor shall divert such
     stream without the previous written permission of the State Government.

To use land for stacking, heaping, depositing purposes:-

7.   Liberty and power to enter upon and use a sufficient part of the surface of
     the said lands for the purpose of stacking, heaping, storing or depositing
     there in any produce of the mines or works carried on and any tools,
     equipment, earth and materials and substances dug or raised under the
     liberties and powers mentioned in this part.

Beneficiation and conveying away of production:-

8.   a)   Liberty and power to enter upon and use a sufficient part of the said
          lands to beneficiate any or produced from the said lands and to carry
          away such beneficiated ore.

          To make coke (to be used in case of coal only):-

     b)   Liberty and power upon the said lands to convert into coke and coal
          or dust produced from the said lands and to carry away such coke.

                                        5

<PAGE>

To clear brushwood and to fell and utilise trees, etc.:-

9.   Liberty and power for or in connection with any of the purposes mentioned
     in this part and subject to the existing rights of others and save as
     provided in clause 3 of part III of this Schedule to clear undergrowth and
     brushwood and to fell and utilise any trees or timber standing or found on
     the said lands provided that the State Government may ask the
     lessee/lessees to pay for any trees or timber felled and utilised by
     him/her at the rates specified by the Collector or the State Government.

                                    PART-III

Restrictions and Conditions as to the Liberties, Powers and Privilege in
Part-II.

     No building etc. upon certain places:-

     1.   No building or things shall be erected, set up or placed and no
          surface operations shall be carried on in or upon any public pleasure
          ground, burning or burial ground or place held sacred by any class of
          persons or any house or village site, public road or other place which
          the State Government may determine as public ground not in such a
          manner as to injure or prejudicially effect any buildings works
          property or rights of other persons and no land shall be used for
          surface operations which is already occupied by persons other than the
          State Government for works or purposes not included in this lease. The
          lessee/lessees shall not also interfere with any right of way, well or
          tank.

     Permission for surface operations in a land not already in use:-

     2.   Before using for surface operations any land which has not already
          been used for such operations, the lessee/lessees shall give to
          Collector of the District two calendar months previous notice in
          writing specifying the name or other description of the situations and
          the extent of the land proposed to be so used and the purpose for
          which the same is required and the said land shall not be so used if
          objection is issued by the Collector within two months after
          the receipt by him of such notice unless the objections so stated
          shall on reference to the State Government be annulled or waived.

     To cut trees in unreserved lands:-

     3.   The lessee/lessees shall not without the express sanction of the
          Collector cut down or injure any timber or trees on the said lands but
          may without such sanction clear away any brushwood

                                       6
<PAGE>

          or undergrowth which interferes with any operations authorised by
          these presents. The Collector or the State Government may require the
          lessee/lessees to pay for any trees of timber felled and utilised by
          him/them at the rates specified by the Collector of the District/

     To enter upon reserved forests:-

     4.   Not withstanding anything in this schedule contained the
          lessee/lessees shall not enter upon any reserved forest included in
          the said lands without previous sanction in writing of the District
          Forest Officer nor fell, cut and use any timber or trees without
          obtaining the sanction in writing of that Officer nor otherwise than
          in accordance with such conditions as the State Government may
          prescribe.

     No mining operations within 50 meters of public works etc:-

     5.   The lessee/lessees shall not work or carry on or allow to be worked or
          carried on any mining operations at or to any point within a distance
          of 50 meters from any railway line except with the previous written
          permission of the Railway Administration concerned (or under or
          beneath any ropeway or any ropeway except under and in accordance with
          the written permission of the authority owning the ropeway) or from
          any reservoir, canal or other public works such as public roads and
          buildings or inhabited site except with the previous written
          permission of the Collector or any other officer authorised by the
          State Government in this behalf and otherwise than in accordance with
          such instructions, restrictions and conditions whether general or
          special which may be attached to such permission. The said distance of
          50 meters shall be measured in the case of railway, reservoir or canal
          horizontally from the outer toe of the bank or the outer edge of the
          cutting as the case may be and in case of a building horizontally from
          the plinth thereof. In the case of village roads no working shall be
          carried on within a distance of 10 meters of the outer edge of the
          cutting except with the previous permission of the Collector or any
          other officer duly authorised by the State Government in this behalf
          and otherwise than in accordance with such directions restrictions and
          additions, either general or special, which may be attached to such
          permission.

          Explanation:- For the purposes of this clause the expression "Railway
          Administration" shall have the same meaning as it is defined to have
          in the Indian Railways Act, 1890 by clause (6) of section 3 of that
          Act. "Public Road" shall mean a road which has been constructed by
          artificially surfaced as distinct from a track resulting from repeated
          use. Village road will include any track shown in the Revenue record
          as village road.

                                        7

<PAGE>

     Facilities for adjoining Governmental licenses and leases:-

     6.   The lessee/lessees shall allow existing and future holders of
          Government licenses or leases over any land which is comprised in or
          adjoined or is reached by the land held by the lessee/lessees
          reasonable facilities of access thereto:

     PROVIDED THAT no substantial hindrance or interference shall be caused by
     such holders or licenses or leases to the operations of the lessee/lessees
     under these presents and fair compensation (as may be mutually agreed upon
     or in the event of disagreement as may be decided by the State Government)
     shall be made to the lessee/lessees for loss or damage sustained by the
     lessee/lessees by reason of the exercise of this liberty.

                                     PART-IV

        LIBERTIES, POWERS AND PRIVILEGES RESERVED TO THE STATE GOVERNMENT

     To work other minerals:-

     1.   Liberty and power for the State Government, or to any lessee or
          persons authorised by it in that behalf to enter/into and upon the
          said lands and to search for, win, work, dig, get, raise, dress,
          process, convert and carry away minerals other than the said minerals
          and any other substances and for those purposes to sink, drive, make
          erect, construct maintain and use such pits, shafts, inclines, drifts,
          levels and other lines, waterways, water courses, drains, reservoirs,
          engines, machinery, plant, buildings, canals, tramways, railways,
          roadways and other works and convenience as may be demand necessary or
          convenient.

          PROVIDED THAT in the exercise of such liberty and power no substantial
          hindrance or interference shall be caused to or with the liberties,
          powers and privileges of the lessee/lessees under these presents and
          that fair compensation (as may be mutually agreed upon or in the event
          of disagreement as may be decided by the State Government) shall be
          made to the lessee/lessees for all loss or damage sustained by the
          lessee/lessees by reason or in consequence of the exercise
          of such liberty and power.

          To make railways and roads:-

     2.   Liberty and power for the State Government, or any lessee or person
          authorised by it in that behalf to enter into and upon the said lands
          and to make upon over or through the same any railways, roadways or
          pipelines for any purpose other than those mentioned in Part II of
          these presents and to get from the said lands stones, gravel, earth
          and other materials for making maintaining and repairing such
          railways, tramways,

                                        8

<PAGE>

Issue of reporting

Zinc Concentrate:- three and half percent of L M E metal price on ad-valoram
                   basis chargeable per tonne of concentrate produced.

Lead Concentrate:- Four percent of L. M. E. metal price and ad-valoram basis
                   chargeable per tonne of concentrate produced.

Silver:-           Five percent of sale price on ad-valoram basis

Cadmium            Eighty two rupees per unit percent of cadmium metal per tonne
                   and on pro rata basis

As per MMRD act 1957 and amended from time to time.

and road or any existing railways and roads and to and repass at all times with
or without horses, cattle or other animals, carts, wagons, carriages and
locomotive or other vehicles over or along any such railways, roadlines and
other ways for all purposes and as occasion may require, provided that in the
exercise of such liberty and power by such other lessee or person no substantial
hindrance or interference shall be caused to or with the liberties, powers and
privileges of the lessee/lessees under these presents and that fair
compensation, as may be mutually agreed upon or in the event of disagreement as
may be decided by the State Government shall be made to the lessee/lessees for
all loss or damage substantial hindrance or interference shall be caused to or
with the exercise by such lessee or person of such liberty and power.

                                     PART V

RENTS AND ROYALTIES RESERVES BY THIS LEASE

To pay dead rent or royalty whichever is higher

1.   The lessee shall pay, for every year except the first year of the lease,
     dead rent as specified in clauses 2 of this part:-

Provided that, where the holder of such mining lease becomes liable under
section 9 of the Act, to pay royalty for any mineral removed or consumed by
him or by his agent, manager employee, contractor or sub-lessee from the leased
area, we shall be liable to pay either such royalty or the dead rent in respect
of that area, whichever in higher. The lessee shall pay interest @ 24% per annum
as per Rule 64A of MCR 1960.

Rate and mode of payment of dead rent:-

2.   Subject to the provisions of clause 1 of this part, during the subsistence
     of the lease, the lessee/lessees shall pay to the State Government annual
     dead rent for the lands demised and described in Part I of this schedule at
     the rate of the time being specified in the Third Schedule to the Act, in
     such manner as may be specified in this behalf by the State Government.

Part V after clause 2:-

<TABLE>
<CAPTION>
                         Dead rent         Area
     Name of          fixed per Hect.     demised     Dead rent     Total dead rent
     Mineral             per annum         land        payable     payable in a year
        1                     2              3             4              5
<S>                   <C>               <C>          <C>            <C>
Lead, Zinc and        Rs. 300/- per     1200 Hects   Rs. 3,60,000   Rs. 3,60,000
associated minerals   Hects per annum

                           From 13-3-2000 to 12-3-2020
</TABLE>

The lessee has paid in advance to the State Govt. the annual dead rent in two
equal half yearly installment and the date and estimated installment falling due
on the date one year after the date of registration and next on date six months
there after every year.

                                        9

<PAGE>

Rate and mode of the payment of royalty:-

3. Subject to the provision of clause 1 of this part, the  lessee/lessees shall
during the subsistence of this lease pay to the State Government at such times
and in such manner as the State Government may prescribe royalty in respect of
any mineral/ minerals removed by him/them from the leased area at the rate for
the time being specified in the second schedule to the Mines and Minerals
(Regulations and Development) Act, 1957. The Lessee shall despatch the mineral
with departmental Rawana which is duly sealed by the Dept.

     Payment of surface rent, and water rate:-

4. The lessee/lessees shall pay rent and water rate to the State Government in
respect of all parts of the surface of the said lands which shall from time to
time be occupied or used by the lessee/lessees under the authority of these
presents at the rate of Rs. as per revenue and irrigation dept. and Rs. as per
rules and acts amended from time to time, respectively per annum per hectare or
the area so occupied or used and so in proportion for an area less than a
hectare during the period from the commencement of such occupations or used
until the area shall cease to be so occupied or used and shall as far as
possible restore the surface land so used to its original conditions surface
rent and water rate shall be paid as here in before detailed in clause 2,
PROVIDED THAT no such rent/water rate shall be payable in respect of the
occupation and use of the area comprised in any roads or ways to which the
public have full right of access.

                                     PART VI

PROVISIONS RELATING TO RENTS AND ROYALTIES

Rent and royalties to be free from deduction etc.:-

1. The rent, water rate and royalties mentioned in Part V of this Schedule shall
be paid free from any deductions to the State Government at Bhilwara and such
manner as the State Government may prescribed PROVIDED Always and it is hereby
agree that Rs. 10,000/- the balance standing to the credit of the lessee/lessees
on account of the deposit made by him/them as licensees over an area which is
included the said lands shall be retained and accepted by the State Government
in satisfaction of the rents and royalties mentioned in Part V until they reach
that amount.

     Mode of Computation of Royalty:-

2. For the purposes of computing the said royalties the lessee/lessees shall
keep a correct account of the mineral/minerals produced and dispatched. The
accounts as well as

                                       10
<PAGE>

the weight of the mineral/minerals in stock or in the process of export may be
checked by an officer authorised by the Central or State Government.

Here specify the mode of arriving at the sale price/prices at pits mouths of
mineral/minerals.

     Course of action if rents and royalties are not paid in time.

3. Should any rent, royalty or other sums due to the State Government under the
terms and conditions of these presents be not paid by the lessee/lessees within
the prescribed time. The same together with simple interest due thereon at the
rate of twenty four percent per annum may be recovered on a certificate of such
officer as may be specified by the State Government by general or special order,
in the same manner as an arrear of land revenue.

                                    PART-VII

                      THE COVENANTS OF THE LESSEE/LESSEES

     Lessee to pay rents and royalties, taxes, etc.:-

1. The lessee/lessees shall pay the rent, water rates and royalties reserved by
this lease at such times and in the manner provided in Parts V and VI of these
presents and shall also pay and discharged all taxes, rates assessments and
impositions whatsoever being in the nature of public demands which shall from
time to time be charged, assessed or imposed by the authority of the Central and
State Government upon or in respect of the premises and works on the
lessee/lessees in common with other premises and works of a like nature except
demands for land revenues.

     To maintain and keep boundary marks in good order:-

2. The lessee/lessees shall at his/their own expense erect and at all times
maintain and keep in repair boundary marks and pillars according to the
demarcation to be shown in the plan annexed to this lease. Such marks and
pillars shall be sufficiently clear of the shrubs and other obstructions as to
allow easy identification.

     To commence operations within a year and work in a workman like manner:-

3. The lessee/lessees shall commence operation within one year from the date of
execution of the lease and shall thereafter at all times during the continuance
of his lease search for, win, work and develop, the said minerals without
voluntary intermission in a skillful and workman like manner and as prescribed
under clause 12 herein after without doing or permitting to be done any
unnecessary or avoidable damage to the surface of the said lands or the crops
buildings structures or other property thereon. For the purposes of

                                       11

<PAGE>

this clause operations shall include the erections of machinery, laying of a
tramway or construction of a road in connection with the mine.

     To indemnify Government against all claims.

4. The lessee/lessees shall make and pay such reasonable satisfaction and
compensation as may be assessed by lawful authority in accordance with the law
in force on the subject for all damage, injury or disturbance which may be done
by him/them in exercise of the powers granted by this lease and shall indemnify
and keep indemnified fully completely the State Government against all claims
which may be made by any person in respect of any such damage, injury or
disturbance and all costs and expenses in connection therewith.

     To secure and keep in good condition pits, shafts etc.:-

5. The lessee/lessees shall during the subsistence of this lease well and
sufficiently secure and keep open with timber or other durable means all pits,
shafts and workings that may be made or used in the said lands and make and
maintain sufficient fences to the satisfaction of the State Government round
every such pit, shaft or working whether the same in abandoned or not and shall
during the same period keep all workings in the said lands except such as may be
abandoned accessible free from water and foul air as far as possible.

     To strengthen and support the mine to necessary extent:-

6. The lessee/lessees shall strengthen and support to the satisfaction of the
Railway Administration concerned or the State Government, as the case may be any
part of the mine which in its opinion requires such strengthening or support for
the safety of any railway, reservoir, canal road and any other public works or
structures.

     To allow inspections of workings:-

7. The lessee/lessees shall allow any officer authorized by the Central
Government or the State Govt. in that behalf to enter upon the premises
including any building, excavation or land comprised in the lease for the
purpose of inspecting, examining, surveying (Prospecting) and making plans their
of sampling and collecting any data and the lessee/lessees shall with proper
person employed by the lessee/lessees and acquainted with the mines and work
effectually assist such officer, agents, servants and workman in conducting
every such inspections and shall afford them all facilities, information
connected with the working of the mines which they may reasonably require and
also shall and will conform to and observe all order and regulations which the
Central and State Governments as the result of such inspection or otherwise may,
from time to time see fit to impose.

     To report accident:-

8. The lessee/lessees shall without delay send to the

                                       12
<PAGE>

Deputy Commissioner/Collector a report of any accident causing death or serious
bodily injury or serious injury to property or seriously affecting or
endangering life or property which may occur in the course of the operations
under this lease.

     The report discovery of other minerals:-

     9. The lessee/lessees shall report to the state Government the discovery in
the leased area of any mineral not specified in the lease within sixty days of
such discovery alongwith full particulars of the nature and position of each
such find. If any mineral not specified in the lease is discovered in the leased
area, the lessee/lessees shall not win and dispose of such mineral unless such
mineral is included in the lease or a separate lease is obtained therefore.

     To keep records and accounts regarding production and employees etc:-

     10. The lessee/lessees shall at all time during the said term keep or cause
to be kept at an office to be situated upon or near the said lands correct and
intelligible books of accounts which shall contain accurate entries showing from
time to time:-

     1.   Quantity and quality of the said mineral/minerals realised form the
          said lands.

     2.   Quantity of the various qualities of ores beneficiated or converted
          (for example coal converted into coke).

     3.   Quantities of the various qualities of the said mineral/minerals sold
          and exported separately.

     4.   Quantities of the various qualities of the said mineral/minerals
          otherwise disposed of and the manner and purpose of such disposal.

     5.   The prices and all other particulars of all sales of said
          mineral/minerals.

     6.   The number of persons employed in the mines or works or upon the said
          lands specifying nationality, qualifications and pay of the technical
          personnel.

     7.   Such other facts particulars and circumstances as the Central or the
          State Governments may from time to time require and shall also furnish
          free of charge to such officers and such time as the Central and State
          Government may appointed true and correct abstract of all or any such
          books of accounts and such information and returns to all or any of
          the matters aforesaid as the State Government may prescribe and shall
          at all reasonable times allow such officers as the Central Government
          or State Government shall in that behalf appoint to enter into and
          have free access to the said officers for the purposes of examining
          and inspecting the said books of accounts, plans and records and to
          make copies thereof and make extracts therefrom.

                                       13

<PAGE>

     To maintain plans, etc.:-

     11. The lessee/lessees shall at all time during the said term maintain at
the mine office correct intelligible up-to-date and complete plans and section
of the mines in the said lands. They shall show all the operations and workings
and all the trenches, pits and drillings made by him/them in the course of
operations carried on by him/them under the lease, faults and other disturbance
encountered and geological data and all such plans and sections shall be amended
and filled up by and from actual surveys to be made for that purpose at the end
of twelve months or any period specified from time to time and the
lessee/lessees shall furnish free of charge to the Central and State Government
true and correct copies of such plans and sections whenever required. Accurate
records of all trenches, pits and drillings shall show:

     (a) The subsoil and straight through which they pass.

     (b) Any mineral encountered.

     (c)  Any other matter of interest and all data required by the Central and
          State Government, from time to time.

     The lessee/lessees shall allow any officer or the Central the State
Government, authorised in this behalf by the Central Government, to inspect the
same at all reasonable times. He/they shall also supply when asked for by the
State Government/the coal controller (The Director General Geological Survey of
India,) (The Controller General, Indian Bureau of Mines) a composite plan of the
area showing thickness, dip, inclination, etc, of all the seems as also the
quantity of reserves quality wise.

     11.A. The lessee shall pay a wage not less than the minimum wage prescribed
          by the Central or State Government from time to time.

     11B. The lessee shall comply with provisions of the (Mines Act 1952 and the
          rules made there under.)

     11C. The lessee shall take measures for the protection of environment like
          planting of trees, reclamation of land, use of pollution control
          devices and such other measures as may be prescribed by the Central or
          State Government, from time to time, at his own expense.

     11D. The lessee shall pay compensation to the occupier of the land on the
          date and in the manner laid down in these rules.

     11E. The lessee shall, in the matter of employment, give preference to the
          tribals and to the persons who become displaced because of the taking
          up of mining operations.

After Part VIIth clause 11E

fair compensation as may be manually agreed upon or in the event of disagreement
as may be decided by the State Government shall be made to the lessee/lessees
for all loss or damage obtained by the Lessee/Lessees by reason or in the
consequence of the exercise by such lessee or person of such liberty and power.

                                       14
<PAGE>

     Act 67 of 1957 :-

     12. The lessee/lessees shall be bounded by such rules as may be issued from
time to time by the Government of India under sections 18 of the Mines and
Mineral (Regulation & Development) Act, 1957 (Act 67 of 1957) and shall not
carry on mining or other operations under the said lease in any way other than
as prescribed under these rules.

     To providing weighing machines:-

     13. Unless specifically exempted by the State Government the
lessee/lessees shall provide and at all times keep at or near the pit head or
each of the pit heads at which the said minerals shall be brought to bank a
properly constructed and efficient weighing machine and shall weigh or cause to
be weighed thereon all the said minerals, from time to time brought to bank
sold, exported and converted and also the converted products and shall at the
close of each day cause the total weights, ascertained by such means of the said
minerals, ores products raised, sold, exported and converted during the previous
twenty four hours to be entered in the aforesaid books of accounts. The
lessee/lessees shall permit the State Government at all times during the said
term to employ any person or persons to be present at the weighing of the said
minerals as aforesaid and to keep accounts thereof and to check the accounts
kept by lessee/lessees. The lessee/lessees shall give 60 days previous notice in
writing to the Collector of every such measuring or weighing in order that he or
some officer on his behalf may be present thereat.

     To allow test of weighing machine :-

     14. The lessee/lessees shall allow any person or persons appointed in that
behalf by the State Government at any time or times during the said term to
examine and test every weighing machine to be provided and kept as aforesaid and
the weights used there with in order to ascertain whether the same respectively
are correct and in good repair and order and if upon any such examination or
testing any such weighing machine or weights shall be found incorrect or out of
repair or order the State Govt. may require that the same is adjusted, repaired
and but in order by and at the expenses of the lessee/lessees and in such
requisition be not compiled with within fourteen days after the same shall have
been made, the State Government may cause such, weighing machine or weights to
be adjusted, repaired, and put in order and the expenses of so doing shall be
paid by the lessee/lessees to the State Government on demand and if upon any
such examination or testing as aforesaid any error shall be regarded as having
existed for three calendar months previous to the discovery thereof from the
last occasion off so examining and testing the same weighing machine and weights
in case such occasion shall be within such period of three months and said rent
and royalty shall be paid and accounted for accordingly.

                                       15

<PAGE>

To pay compensation for injury of third parties :-

     15. The lessee/lessees shall make and pay reasonable satisfaction and
compensation for all damage, injury or disturbance or person or property which
may be done by or on the part of lessee/lessees in exercise of the liberties and
power granted by these presents and shall at all time save harmless and keep
indemnified the State Government from and against all suits, claims and demands
which may be brought or made by any person in respect of any such damage, injury
or disturbance.

     Now to obstruct working of other minerals :-

     16. The lessee/lessees will exercise the liberties and powers hereby
granted in such a manner as to offer no unnecessary or reasonably avoidable
obstruction or interruption to the development and working within the said lands
of any minerals not included in this lease and shall at all times afford to the
Central and State Govt. and to the holders of prospecting licenses or mining
leases in respect of any such minerals or any minerals within any land adjacent
to the said lands as the case may be reasonable means of access and safe and
convenient passage upon and across the said lands to such minerals for the
purpose of getting working, developing and carrying away the same provided that
the lessee/lessees shall receive reasonable compensation for any damage or
injury which he/they may sustain by reason or in consequence of the use of such
passage by such lessees or holders of prospecting licenses.

     Transfer of lease:-

     17.  (1)  The lessee/lessees shall not, without the previous consent in
               writing of the State Government.

          (a)  assign, sublet, mortgage or in any other manner, transfer the
               mining lease, or any right, title or interest therein, or

          (b)  enter into or make any arrangement contract or understanding
               whereby the lessee/lessees will or may be directly or indirectly
               financed to a substantial extent by, or under which the lessees
               operations or undertakings will or may be substantially
               controlled by any person or body of persons other than the
               "lessee/lessees".

     provided that the State Government shall not give its written consent
     unless:-

     (a)  the lessee has furnished an affidavit alongwith his application for
          transfer of the mining lease specifying therein the amount that he has
          already taken or proposes to take as consideration from the
          transferee;

     (b)  the transfer of the mining lease is to be made to a person or body
          directly undertaking mining operations.

                                       16
<PAGE>

     2. Without prejudice to the above provisions, the lessee/lessees may,
subject to the conditions specified in the proviso to Rule 35 of said Rules,
transfer this lease or any right, title or interest therein, to a person, (who
has filed an affidavit stating that he has filed up-to date income tax returns,
paid income tax assessed on him and paid the income tax on the basis of self
assessment as provided in the Income tax Act, 1961 (43 of 1961), on payment of
five hundred rupees) to the State Government.

     Provided that the lessee/lessees shall make available to the transferee the
original or certified copies of all plans of abandoned workings in the area and
in a belt 65 meters wide surrounding it.

     (Provided further that where the mortgage is an Institution or a Bank or a
Corporation specified in Schedule V, it shall not be necessary for any such
Institution or Bank or Corporation to meet with the requirement relating to
income tax and the said valid clearance certificate.)

     3. The State Government, may, by order in writing, determine the lease at
any time if the lessee/lessees has/have in the opinion of the State Government,
committed a breach of any of the above provisions or has/have transferred the
lease or any right, title or interest therein otherwise than in accordance with
clause (2);

     Provided that no such order shall be made without giving the lessee/lessees
a reasonable opportunity of stating his/their case.

     Not to be financed or controlled by a Trust, Corporation, Firm or person:-

     1B. The lease shall not be controlled and the lessee/lessees shall not
allow themselves to be controlled by any Trust, Syndicate, Corporation Firm or
person except with the written consent of the Central Government. The
lessee/lessees shall not entered into for make any arrangement compact or
understanding where by the lessee/lessees will or may be directly or indirectly
by or for the benefit of or subject to the control of any Trust,
Syndicate, Corporation, Firm or person unless with the written sanction given
prior to such arrangement compact or understanding being entered into or made of
the Central Govt. and any or every such arrangement compact or understanding
being entered into or made of the Central Government and any or every such
arrangement compact or understanding as aforesaid (entered into or made with
such sanction as aforesaid) shall only be entered into or made and shall always
be subject to an express condition binding upon the other party or parties there
to that on the occasion of the State of emergency of which the President of
India in his discretion shall be the sole judge it shall be terminable if so
required in writing by the State Government and shall in the event of any such
requisition being made be forthwith thereafter determined by the lessee/lessees
accordingly.

                                       17
<PAGE>

     Lessee shall deposit any additional amount necessary:-

     19. Whenever the security deposit of Rs. 2000/1000 or any further sum
hereafter deposited with the State Government in replenishment thereof shall be
forfeited or applied by the Central or State Government pursuant to the power in
hereinafter declared in that behalf the lessee/lessees shall deposit with the
State Government such further sum as may be sufficient with the inappropriated
part thereof to bring the amount in deposit with the State Government up to sum
of Rs. 1000/500.

     Delivery of workings in good order to State Government after determination
of lease:-

     20. The lessee/lessees shall at the expiration or sooner determination of
the said term or any renewal thereof deliver up to the State Government all
mines, pits, shafts, inclines, drifts, levels, waterways, airways and other
works now existing or hereafter to be sunk or made on or under the said lands
except such as have been abandoned with the sanction of the State Government and
in any ordinary and fair course of working all engines, machinery plant,
buildings, structures, other works and conveniences which at the commencement of
the said term were upon or under the said land and all such machinery set up by
the lessee/lessees below ground which cannot be removed without causing injury
to the mines or works under the said lands (except such of the same as may with
the sanction of the State Government have become discussed) and all buildings
and structures of bricks or stone erected by the lessee/lessees above ground
level in good repair order and condition and fit in all respects for further
working of the said mines and the said minerals.

     Right of pre-emption :-

     21.(a) The State Government shall from time to time and all times during
the said term have the right (to be exercised by notice in writing to the
lessee/lessees) of pre-emption of the said minerals (and all products thereof)
lying in or upon the said lands hereby demised or elsewhere under the control of
the lessee/lessees and the lessee/lessees shall with all possible expendition
deliver all minerals or products or minerals purchased by the State Government
under the power conferred by this provision in the quantities at the times in
manner and at the place specified in the notice exercising the said right.

     (b) Should be the right of pre-emption conferred by this present provision
be exercised and a vessel chartered to carry the minerals of products thereof
procured on behalf of the State Government or the Central Government be detained
or demurrage at the port of loading the lessee/lessees shall pay the amount due
for demurrage according to the terms of the charter party of such vessel unless
the State Government shall be satisfied that the delay is due to causes beyond
the control of the lessee/lessees.

     (c) The price to be paid for all minerals or products or minerals taken in
pre-emption by the State Government in exercise of the right hereby conferred
shall be the fair market price prevailing at the time of pre-emption PROVIDED
THAT in order to assist in

                                       18
<PAGE>

arriving at the said fair market price the lessee/lessees shall if so required,
furnish to the State Government for the confidential information of the
Government, particulars of the quantities, descriptions and prices of the said
minerals or products thereof sold to the other customers and of charters entered
into for right for carriage of the same and shall produce to such officer or
officers as may be directed by the State Government original or authenticated
copies of contracts and charter parties entered into for the sale or freightage
of such minerals or products.

     (d) In the event of the existence of a state of war or emergency (of which
existence and President of India shall be the sole judge and a notification to
this effect in the Gazette of India shall be conclusive proof), the State
Government with the consent of the Central Government shall from time to time
and all times during the said term have the right (to be exercised by a notice
in writing to the lessee/lessees forthwith take possession and control of the
works, plant/machinery and premises of the lessee/lessees on or in connection
with the said lands or operations under this lease and during such possession or
control the lessee/lessees shall conform to the obey all directions given by or
on behalf of the Central Government or State Government regarding the use of
employment of such works, plants, premises and minerals; PROVIDED THAT fair
compensation which shall be determined in default of agreement by the State
Government shall be paid to the lessee/lessees for all loss or damage sustained
by him/them by reason or in consequence of the exercise of the powers conferred
by this clause and PROVIDED ALSO that the exercise of such powers shall not
determine the said term hereby granted or affect the terms and provision of
these presents further than may be necessary to give effect to the provisions of
this clause.

Employment of foreign national:-

22. The lessee/lessees shall not employ in connection with the mining operations
any person who is not an Indian national except with the previous approval of
Central Government.

Recovery of expenses incurred by the State Government:-

23. If any of the works or matters which in accordance with the covenants in
that behalf hereinbefore contained are to be carried or performed by the
lessee/lessees be not so carried out or performed with in the time specified in
the behalf, the State Government may cause the same to be carried out or
performed and the lessee/lessees shall pay the State Government on demand all
expenses which shall be incurred in such carrying out or performance of the same
and the decision of the State Government as to such expenses shall be final.

Furnishing of geophysical data:-

24. The lessee/lessees shall furnish:

(a)  All geophysical data relating to mining fields, or engineering and ground
     water surveys, such as anomaly maps, sections, plans, structures, contour
     maps, logging, collected by him/them during the course of mining operations
     to the 1(Director-General, Geological Survey of India, Calcutta)

1.   Substituted by G.S.R. 369 dated 4.3.1967

                                       19
<PAGE>

     (b) all informations pertaining to investigations of radioactive minerals
collected by him/them during course of mining operations to the Secretary
Department of Atomic energy, New Delhi.

     Data or information referred to above shall be furnished every year
reckoned from the date of commencement of the period of the mining lease.

After Part VII clause 24(b):-

Other Conditions:-

1. As per MCR 1960, MMRD Act 1957 & other rules amended from time to time.

2. A. The lessee shall restore the worked out area of the lease hold to
satisfaction of the Director Mines & Geology and shall grow such trees and
plants and in such number over the land so restored as may deserved by the
D.M.G.

2. B. The lessee will able to be determine of the lessee violation condition (A)
at any time

3. C. Lessee shall work as per Approved Mining plan.

                                    PART VIII

                      THE COVENANTS OF THE STATE GOVERNMENT

     Lessee/Lessees may hold and enjoy rights quietly:-

     1. The lessee/lessees paying the rents, water rate and royalties hereby
reserved and observing and performing all the covenants and agreements herein
contained and on the lessee/lessees to be observed and performed shall may
quietly hold and enjoy the right and premises hereby demised for and during the
term hereby granted without any unlawful interruption from or by the State
Government, or any person right fully claiming under it.

     Acquisition of land of third parties and compensation thereof:-

     2. If in accordance with the provision of clause 4 of Part VII of this
Schedule the lessee/lessees shall offer to pay to an occupier of the surface of
any part of the said lands compensation for any damage or injury which may arise
from the proposed operations of the lessee/lessees and the said occupier shall
refuse his consent to the exercise of the right and powers reserved to the
State Government and demised to the lessee/lessees by these presents and the
lessee/lessees shall report the matter to the State Government and shall deposit
with it the amount offered as compensation and if the Central/State Government
is satisfied that the amount of compensation offered is fair and reasonable or
if it is not so satisfied and the lessee/lessees shall have deposited with it
such further amount as the State and Central Government shall consider fair and
reasonable the State Government shall order the occupier to allow the
lessee/lessees to enter the land and to carry out such operations as may be
necessary for the purpose of this lease. In assessing the amount of such
compensation the State Government shall be guided by the principles of the Land
Acquisition Act.

     To renew:-

     3. (The mining lessee is renewable in terms of the provisions of the Act
and the rules made thereunder.)

                                       20
<PAGE>

     Provided that the State Government may for reasons to be recorded in
writing reduce the area applied for.

     If the lease is in respect of minerals specified in the First Schedule to
the Act, renewal will be subject to the prior approval of the Central
Government.

     If the lessee/lessees be desirous of taking a renewed lease of the premises
hereby demised or of any parts of them for a further term from the expiration of
the term hereby granted and is other wise eligible, he/they shall prior to
expiration of the last mentioned term give to the State Government (Twelve
calendar months) previous notice in writing and shall pay the rent, rates and
royalties hereby reserved and shall observed and perform the several covenants
and agreements herein contained and on the part of the lessee/lessees to be
observed and performed up to the expiration of the term hereby granted. The
State Government on receipt of application for renewal, shall consider it (in
accordance with the provisions of the Act and the rules made thereunder) and
shall pass orders as it deems fit. If renewal is granted, the State Government
will at the expense of the lessee/lessees and upon his executing and delivering
to the State Government if required a counterpart thereof execute and deliver to
the lessee/lessees a renewed lease of the said premises or part thereof for the
further term of twenty years at such rents, rates and royalties and on such
terms and subject to such covenants and agreements, including this present
covenant to renew as shall be in accordance with the Mineral Concession Rules
1960 applicable to Lead, Zinc and associated minerals. (Name of minerals) on the
day next following the expiration of the terms hereby granted.

     Liberty to determine the lease :-

     4. The lessee/lessees may at any time determine this lease by giving not
less than 12 calendar months notice in writing to the State Government or to
such officer, or authority as the State Government may specify in this behalf
and upon the expiration of such notice provided that the lessee/lessees shall
upon such expiration render and pay all rents, water rates, royalties,
compensation for damages and other moneys which may then be due and payable
under these presents to the lessor or any other person or persons and shall
deliver these presents to the State Government then this lease and the said term
and the liberties, powers and privileges hereby granted shall absolutely cease
and determine but without prejudice to any right of remedy of the lessor in
respect of any breach of any of the covenants or agreements contained in these
presents.

     4. A. The State Government may on an application made by the lessee permit
him to surrender one or more minerals from his lease which is for a group of
minerals on the grounds that deposits of that mineral have since exhausted or
depleted to such an extent that it is no longer possible to work the mineral
economically, subject to the condition that the lessee:-

     (a)  Make an application for such surrender of mineral at least six months
          before the intended date of surrender; and

                                       21

<PAGE>

     (b)  Gives an understanding that he will not cause any hindrance in the
          working of the mineral so surrendered by any other person who is
          subsequently granted a mining lease for that mineral.

     Refund of security deposits :-

     5. On such date as the State Government may elect within 12 calendar months
after the determination of this lease of any renewal thereof, the amount of the
security deposit paid in respect of this lease and then remaining in deposit
with the State Government and not required to be applied to any of the purposed
mentioned in this lease shall be refunded to the lessee/lessees. No interest
shall run on the security deposit.

                                     PART IX

                               GENERAL PROVISIONS

     Obstructions to inspection :-

     1. In case the lessee/lessees or his/their transferee/assignee does/do not
allow entry or inspection by the officers authorised by the Central or State
Government under clauses (i), (j), or (l) of sub-rule (1) of rule 27 of said
rules, the State Government shall give notice in writing to the lessee/lessees
requiring him/them to show cause within such time as may be specified in the
notice why the lease should not be determined and his/their security deposit
forfeited and if the lessee/lessees fails/fail to show cause within the foresaid
time to the satisfaction of the State Government, the State Government may
determine the lease and forfeit the whole or part of the security deposit.

     PENALTY IN CASE of default in payment of royalty and breach of
     covenants :-

     2. If the lessee/lessees or his/their transferee or assignee makes/make any
default in payment of rent or water rate or royalty as required by section 9 of
the Act or commits a breach of any of the conditions and covenants other than
those referred to in covenant 1 above, the State Government shall give notice to
the lessee/lessees requiring him/them to pay the rent, water rate, royalty or
remedy the breach, as the case may be, within sixty days from the date of
receipt of the notice and if the rent, water rate and royalty are not paid or
the breach is not remedied within such period, the State Government without
prejudice to any proceedings that may be taken against him/them determine the
lease and forfeit the whole or part of the security deposit.

                                       22
<PAGE>

     Penalty for repeated breaches of covenants:-

     3. In cases of repeated breaches of covenants and agreements by the
lessee/lessees for which notice has been given by the State Government in
accordance with clauses (1) and (2) aforementioned on earlier occasion, the
State Government without giving any further notice, may impose such penalty not
exceeding twice the amount of annual dead rent specified in clause 2 Part V.

     Failure to fulfill the terms of leases due to "Force Majeure":-

     4. Failure on the part of lessee/lessees to fulfill any of the terms and
conditions of this lease shall not give the Central or State Government any
claim against the lessee/lessees or be deemed a breach of this lease, in so far
as such failure is considered by the said Government to arise from force
majeure, and if through force majeure the fulfillment by the lessee/lessees of
any of the terms and conditions of this lease be delayed, the period of such
delay shall be added to the period fixed by this lease. In this clause the
expression "Force Majeure" means act of God, War, insurrection riot, civil
commotion, strike, earth quake, tide storm, tidal wave, flood lightening,
exploration, fire earthquake and any other happening which lessee/lessees could
not reasonably present on control.

     Lessee/lessees to remove his/their properties on the expiry of lease :-

     5. The lessee/lessees having first paid discharged rents, rates and
royalties payable by virtue of these present may at the expiration or sooner
determination of the said term or within six calendar months thereafter (unless
the lease shall be determined under clauses 1 and 2 of this Part and in that
case at any time not less than three calendar months nor more than six calendar
months after such determination) take down and remove for his/their own benefit
all or any engines, machinery, plant, buildings, structures, tramways, railways
and other works, erections and conveniences which may have been erected, set up
or placed by the lessee/lessees in or upon the said lands and which the
lessee/lessees is/are to not bound to deliver to the State Government under
clause 20 of Part VII of this Schedule and which the State Government shall not
desire to purchase.

Forfeiture of property left more than six months after determination of lease :-

     6. If at the end of the six calendar months after the expiration or sooner
determination of the said term under the provision contained in clause in Part
VIII of this schedule become effective there shall remain in or upon the said
land any engines, machinery, plant, buildings structure, tramways, railways and
other work, erections and conveniences or other property which are not required
by the lessee/lessees in connection with operations in any other lands held by
him/them under prospecting license or mining lease the same shall if not be
removed by the lessee/lessees within one calendar month after notice in writing
requiring their removal has given to lessee/lessees by the State Government be
deemed to become the property of the State Government and may be sold or
disposed of in such manner as the State Government shall deem fit without
liability to pay any

                                       23
<PAGE>

compensation or to account to the lessee/lessees in respect thereof.

Notices:-

     7. Every notice by these presents required to be given to the
lessee/lessees shall be given in writing to such person resident on the said
lands as the lessee/lessees may appoint for the purpose of receiving such
notices and if there shall have been no such appointment then every such notice
shall be sent to the lessee/lessees by registered post addressed to the
lessee/lessees at the address recorded in this lease or at such other address in
India as the lessee/lessees may from time to time in writing to the State
Government designate for the receipt of notices and every such service shall be
deemed to be proper and valid service upon the lessee/lessees and shall not be
questioned or challenged by him/them.

     Immunity of State Government from liability to pay compensation:-

     8. If any event the order of the State Government are revised, renewed or
cancelled by the Central Government, in pursuance of proceedings under
chapter-VII of Mineral Concession Rules, 1960, the lessee/lessees shall not be
entitled to compensation for any loss sustained by the lessee/lessees in
exercise of the powers and privileges conferred upon him/them by these presents.

     8A. The lease is executed at Bhilwara District Bhilwara of Rajasthan State
and subject to the provision of Article 226 of the constitution of India,
it is hereby agreed upon by the lessee and the lessor that in the event of any
dispute in relation to the area under lease, condition of lease, the dues
realisable under the lease and in respect of all matters touching the
relationship of the lessee and the lessor, the suits (or appeals) shall be filed
in the civil courts at Bhilwara (name of the city) and it is hereby expressly
agreed that neither party shall be competent to file a suit or bring any action
or file any petition at any place other than the courts named above.

     9. For the purpose of stamp duty the anticipation royalty from the demised
land is 7,31,000 per year. (double the annual dead rent + security deposit + PE)

     Certified that I have checked the field book personnel and the travers for
the demarcation has been closed at the starting fixed survey station. I have
also verified that offsets of important permanent features falling 50 meters
along each line. [Illegible text]

                                       24
<PAGE>

     IN WITNESS WHEREOF these presents have been executed in the manner here
under appearing the day and year first above written.

                                        Signature attested

         (SIGNED)
(for and on behalf of the
Governor/President of India)

     /s/ C. SANKARAN

Signed by C. Sankaran, Company Secretary,
Hindustan Zinc Limited
(For and on behalf of lessee/licensee)

     (In the presence of witness)

1. Witness by (SIGNED)
              -----------------------
   Address
           --------------------------

   ----------------------------------

2. Witness by (SIGNED)
              -----------------------
   Address
           --------------------------

   ----------------------------------

                                       25

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