The need to attain self-sufficiency in production of metal-in-concentrate (MIC) from our mines and plants is more urgent than even before. Actions already identified for increasing ore production have to be expedited not only by higher output from existing mines but also by reopening closed mines.

To minimize the ipact of lower LME prices in the short term, normal price discounts on our products have been eliminated. Disposal of idle assets and other saleable wastes, like dump slag / cinder ash is being expedited to facilitate internal generation of cash.

In view of paucity of funds, the R&R (replacements and renewals) budget for 2008-2009 is being revisited to reduce the outlay. We may also have to defer certain modernization projects. Priority for Expenditure will, however, be given to items that will facilitate higher production of in-house MIC.

Certain employee’s benefits have been temporarily suspended and administrative overheads cut down. Efforts are, however, being made to minimize the hardships. I seek your co-operation and support.

It is the need of the hour to understand the hurdles that we are going through and deliver our best while bearing with the hardships. There is need for concerted efforts and patience on the part of each one of us. I am sure this difficult time will soon pass and we shall come out stronger.

The New Year 2009 may begun on a discordant note – why not fine tune ourselves to end it with a flourish!

With best wishes to you and to your family.

Satish C. Gupta

(Chairman-cum-Managing Director)