Vedanta Resources PLC
14 April 2004
14 April 2004
Vedanta Resources plc
Analyst Site Visit
Vedanta Resources plc ('Vedanta'), the London-listed metals and mining group,
announces that it is holding a site visit this week for analysts in India, which
will cover three of its sites: the aluminium complex at Korba, and the zinc and
lead facilities at Chanderiya and Rampura Agucha.
•The aluminium division within Vedanta has a total annual capacity of
135,000 tonnes of aluminium. The complex at Korba in the State of
Chattisgarh, Central India, consists of an alumina refinery, an aluminium
smelter, a power plant and a fabrication facility. The smelter is currently
expanding capacity to 350,000 tpa. Work is also taking place on the bauxite
mine and alumina refinery at Orissa which will have an ultimate capacity of
1.4 mtpa of alumina.
•The zinc business has a current capacity of 207,000 tonnes of zinc and
34,000 tonnes of lead. The HZL lead-zinc smelter, located at Chanderiya, 120
km east of Udaipur in the State of Rajasthan, is building a 170,000 tpa
hydrometallurgical zinc smelter, together with a captive power plant of 154
mega watts. At the same site we are also expanding the lead capacity by
•The lead-zinc mine at Rampura Agucha, 225 km north of Udaipur, is one of
the lowest cost in the world. It has an installed capacity of 2.0 mtpa of
ore. HZL intends to increase the capacity of the mine and processing plant
to 3.3 mtpa.
The visit will involve tours of these sites as well as presentations from senior
management on key areas of the business. It will provide analysts with an
opportunity to gain a better understanding of Vedanta's assets, strategy and
prospects. The business will further benefit in the current year from the
commissioning of the copper smelter and refinery at Tuticorin, which is
scheduled for the end of the first quarter of the financial year.
No new information on current trading will be disclosed during the visit.
Vedanta will announce its results for the year ended 31 March 2004, in June 2004
and confirms that these should be in line with expectations.
Vedanta also announces that it has increased its stake in its subsidiary
Sterlite Industries (India) Limited ('Sterlite') by 2.4% through the purchase
for cash of an additional 1.7 million shares from the Sterlite Employee Welfare
Trust at an average price of INR 550 per share. The total cost of the purchase
is US$21.4 million and it takes Vedanta's effective interest in Sterlite to
68.1%. This purchase does not have a material impact on the cash position of
Vedanta under UK GAAP and continues to advance Vedanta's stated strategy of
increasing its direct ownership in its underlying businesses.
Peter Sydney-Smith, Vedanta Finance Director, commented:
'We are delighted to be hosting this trip and showing the progress made since
listing in London last year. We continue with our strategy of simplifying the
ownership structure of our underlying businesses and maximising the value
inherent in the existing corporate structure.'
- Ends -
For further information, please contact:
Vedanta Resources plc Tel: +44 20 7629 6070
Finsbury Tel: +44 20 7251 3801
Notes to Editors:
Vedanta is a diversified metals and mining group with zinc, copper and aluminium
operations in India and two copper mines in Tasmania and Queensland in
Vedanta holds its interests in these operations through two subsidiaries,
Sterlite and the Madras Aluminium Company ('Malco'). Sterlite is Vedanta's
principal subsidiary company and is currently listed on the Bombay Stock
Exchange. Vedanta's copper operations are owned and operated by Sterlite and it
also holds majority stakes in the group's zinc business, Hindustan Zinc Ltd
('HZL'), and the Bharat Aluminium Company ('Balco'), the group's principal
When Vedanta listed in London in December 2003, one of its principal stated
strategies was to consolidate its group structure by increasing its direct
ownership in the Group's underlying businesses. A number of initiatives have
been pursued to implement this strategy.
These initiatives have included:
• The acquisition in November 2003 of a further 18.9 per cent. of the
issued share capital of HZL from the Government of India for a total
consideration of INR3,238 million (US$71.6 million). Sterlite now has a direct
holding of 64.9 per cent. in HZL.
• The acquisition on 6 January 2004 of 4.98 per cent. of the issued share
capital of Sterlite from the Sterlite Employee Welfare Trust by Twin Star for
a consideration of INR739 per share (after adjusting for the one to one bonus
share issue made by Sterlite at the end of January 2004). The total
consideration for this acquisition was INR2,644 million (US$58 million).
• The most recent acquisition of 2.4 per cent of the issued share capital of
Sterlite from the SEWT by Twin Star for a consideration of INR550 per share.
The total consideration for this acquisition was INR936 million (US$21.4
In addition, Sterlite has announced plans for a rights issue and Twin Star has
undertaken to take up its entire pro-rata entitlement. To the extent that other
shareholders do not take up their rights, Twin Star may take up those unclaimed
entitlements, thereby further increasing the Group's interest in Sterlite.
At the time of its listing Vedanta had a direct holding in Sterlite of 55.1 per
cent and, as a result of Vedanta's 80 per cent. holding in Malco, which in turn
holds 7.1 per cent of Sterlite, had an effective interest in Sterlite of 60.8
per cent. The above acquisitions have resulted in an increase in Vedanta's
direct holding in Sterlite to 62.4 per cent and, accordingly, an increase in
its effective interest to 68.1 per cent. Sterlite also owns 65% of HZL, 51% of
Balco and 100% of the Australian mines.
This information is provided by RNS
The company news service from the London Stock Exchange