Vedanta Resources PLC
11 October 2004
11th October 2004
Vedanta Resources plc
Production report for the six months ended 30th September 2004
Set out below is the production data for the first half of the financial year.
Financial results for this period will be released on 25th November.
Unaudited Production summary
Six Months Change 2nd Quarter Change
2004-05 2003-04 2004-05 2003-04
Alumina 130 134 -3% 64 63 +1%
Aluminium 66 65 +1% 32 32 0
Copper - mined
metal content 20 24 -13% 9 13 -26%
Copper - Cathode 77 93 -17% 44 48 -9%
Copper - Rod 53 59 -10% 27 27 -2%
Zinc - mined
metal content 167 152 +10% 85 77 +10%
Zinc - refined 104 109 -5% 54 54 0
The aluminium plants continue to operate close to capacity. There was a small
fire in the power plant at Balco in August, which led to some 5 days of lost
production. This has been resolved and production levels have returned to normal
Mined production was lower than last year, as output at one of the mines was
interrupted while operations moved to the next level. In the first quarter the
smelter at Tuticorin saw a planned maintenance shutdown of 20 days after a
campaign life of 24 months, as reported in our quarterly results on 26th July,
which reduced production by some 12,000 tonnes. In the second quarter,
production returned to the level of last year. Flooding during the monsoon
reduced cathode output in the second quarter, but anode production was
unaffected and the surplus material will be processed during the second half.
Continuing work on improving output at Rampura Agucha Mines is showing benefits
with an 11% rise in mined metal output. The principal zinc smelter at Chanderiya
also saw a planned shutdown in the first quarter for maintenance, accounting for
around 4,000 tonnes. In the second quarter production built back to the level
of last year, in line with targets.
Pricing & Costs
Commodity prices, including aluminium, zinc and copper, have shown strong gains
over the same period last year. Copper TC/RCs are also showing an improvement
and we expect the benefit of this to come through in the second half. There are
two main factors which have partially offset the rise in metal prices: Tariff
cuts, announced by the Indian Government in January and July, have reduced the
prices realized on metal sales and higher energy prices, notably coal and met
coke, have increased input costs.
Update on expansions
Vedanta is investing some US$2bn over the next 3 years to increase production of
The project at Orissa is progressing according to schedule. Basic site
preparation and piling work is now complete and we continue to move towards
completing the civil works.
The expansion of the Korba smelter at BALCO to 350,000 tpa and the associated
power plant continues according to plan. Civil construction work is well
advanced with equipment now being installed. All 288 pots have been fabricated
and lining work has started.
The new 300,000 ton smelter at Tuticorin is mechanically complete and ready to
commission. Permissioning has taken longer than we anticipated. It is prudent to
assume that the new smelter will only see limited production in the current
The expansion at the Chanderiya smelter is on schedule. The recent delivery of
larger haulage equipment for the mine has been commissioned and the related mill
expansion is progressing to plan.
For further information, please contact:
John Smelt, Head of Investor Relations
Peter Sydney Smith, Finance Director
Vedanta Resources plc Tel: +44 207 659 4734
Finsbury Ltd Tel: +44 207 251 3801
This information is provided by RNS
The company news service from the London Stock Exchange