Vedanta Resources PLC
08 July 2004
8th July 2004
Statement re. Indian Budget
Vedanta Resources plc ('Vedanta') comments on the Budget delivered today to the
The budget promises a continuation of policies to grow the economy and encourage
inward investment, it also includes plans for a significant increase in spending
on infrastructure, which will further drive the growth in Indian metal demand in
the future. Vedanta will be well positioned to meet this demand with its $2bn
capital investment programme.
Tariff reductions of 5% in Zinc, Copper and Lead were made, with no change to
aluminium. This sets tariffs on all our main commodities at 15% going forward.
Vedanta estimates that the impact of this will be a reduction of around $30m
EBITDA for the nine months to March 2005.
Peter Sydney Smith, Finance Director of Vedanta commented:
'This is the first budget of the new Government and indicates their commitment
to growing the Indian economy and investing in infrastructure. This is not only
positive for India, but will drive demand for all our products over the medium
'At Vedanta we aim to become a global low cost producer of metals and we are not
dependent on tariffs to protect our business. This tariff reduction has been
quicker than we anticipated but, in the long-term, tariff reductions are
positive for our company as lower barriers to trade will fuel the continued
dynamic growth of the Indian economy.'
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For further information, please contact:
John Smelt, Head of Investor Relations
Peter Sydney-Smith, Finance Director
Vedanta Resources plc Tel: +44 20 7629 6070
+44 787 964 2675
Finsbury Tel: +44 20 7251 3801
Notes to Editor
Vedanta is a diversified metals and mining group with zinc, copper and aluminium
operations in India and two copper mines in Australia.
Vedanta holds its interests in these operations through two Indian-listed
subsidiaries, Sterlite and the Madras Aluminium Company ('Malco').
Sterlite is Vedanta's principal subsidiary and is currently listed on the Bombay
Stock Exchange. Vedanta, through its wholly owned subsidiaries, currently owns
62.4 per cent. of the issued share capital of Sterlite. In addition, Malco owns
a further 7.13 per cent. of Sterlite. As a result, Vedanta currently has an
effective interest of 68.1 per cent. in Sterlite.
Vedanta's copper operations are owned and operated by Sterlite. Sterlite also
holds a 64.9% stake in the group's zinc business, Hindustan Zinc Ltd ('HZL'),
and 51% of the Bharat Aluminium Company ('Balco').
This information is provided by RNS
The company news service from the London Stock Exchange