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Vedanta Resources (VED)

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Tuesday 12 April, 2005

Vedanta Resources

Production Report

Vedanta Resources PLC
12 April 2005


12th April 2005

                              Vedanta Resources plc
                                        
                  Production report for the twelve months ended
                                  31 March 2005

Set out below is the production data for the financial year ended 31 March 2005.
Financial results for this period will be released on 2 June.

Summary

Existing operations produced well in the second half with a strong fourth
quarter in several areas, notably aluminium. High input costs, mentioned at the
interim results, have continued to be a feature. Production from the Zambian
operations is included for the first time. There is a lot of opportunity at
Konkola but there is also much work to be done on improving output and costs.
The projects remain on track with zinc likely to be commissioned shortly.

Unaudited Production summary


                 Twelve Months         Change         2nd Half           Change
                   ('000 t)              %            ('000 t)             %
                 -------------------   -------   -------------------    --------
                   2004-05   2003-04              2004-05   2003-04
----------------------------------------------   -------------------------------  
Alumina            278,599   269,778        4%    148,524   136,600          9%
Aluminium          135,949   129,317        5%     70,159    64,317          9%
India
Copper - Cathode   171,992   178,654       -4%     94,590    85,754         10%
Copper - Rod       125,295   122,703        2%     72,041    63,503         13%
Zambia                         -
Copper - Cathode    67,547     -                   67,547
Zinc - mined
metal content      354,629   330,555         7%   187,447   178,596          5%
Zinc - refined     212,279   220,664        -4%   108,721   111,264         -2%

Operational overview

Aluminium:
Both BALCO and MALCO saw higher output in the fourth quarter, with production in
the second half almost 7% above the first half, leading to a 5% increase over
the year. This was the result of improved management of the smelter process and
more stable power production.

Copper:

India
Cathode production in the second half was at peak capacity, evenly spread over
the third and fourth quarters, with an increase of 22% over the first half. The
production benefited from an improvement in operational efficiencies and higher
plant availability, which had been affected in the first half of the year by the
planned maintenance shut down and flooding at the refinery during the monsoon.
Cathode production finished the year just 4% below 2004.

Zambia
The data for Konkola Copper Mines is based on 5 months of production, from the
date of acquisition. Initial assessments indicate issues concerning plant
availability, process management and maintenance. These are being addressed by a
series of actions, following the appointment of a new CEO for our Zambian
operations. The immediate focus is to bring about stability and consistency in
operations. We are taking all necessary measures to improve these operations and
remain positive about the potential to reduce costs and improve production.

Zinc:
The mining output has improved considerably and all the mines have performed
well. Rampura Agucha in particular did better than the previous year due to
de-bottlenecking. This is reflected in an increase in mined metal content of 7%
over the year. The smelter production at Chanderiya is 4% lower than the
previous year due to inconsistent qualities of metcoke, caused by short supply,
which impacted the production process.

Sales of zinc metal at about 290,000 MT will be about 12% higher than 2003-4,
and well above the production number shown here, due to the availability of
additional tonnage from tolling activities and stock reduction.

Pricing & Costs

Prices for aluminium, zinc and copper have continued to be firm. TC/RC's have
also improved and some impact of the increasing TC/RCs have come into the second
half results though their influence will be more pronounced in the financial
year 2005-6. As reported, tariffs on metal prices were reduced by the Government
of India in July 2004 and again in February 2005, and now stand at 10% for
aluminium, copper and zinc. These cuts have reduced the prices realised on metal
sales. Input prices, particularly for energy products, have remained a pressure
throughout the year.

Update on expansions

Vedanta is progressing well on its expansion programme to increase production
of all metals. Over $1bn of the anticipated $2.2bn has been spent to date.

Aluminium:
The work on the new 250,000 tpa aluminium smelter and power plant at Korba is
progressing well. Trials on a few smelter pots have started, using third party
alumina and power to stabilize the process and to accelerate use of the
technology. The commissioning of the project will start, in phases, from the
second quarter of this financial year, and remains on track for full
commissioning in March 2006.

Alumina:
Vedanta is building a new 1mtpa alumina refinery in the State of Orissa. The
refinery is due to complete in March 2007 and remains on track and within
budget. Public interest submissions regarding environmental clearances are
currently being addressed.

Copper:
The expanded facilities at Tuticorin, to take production from capacity of
180,000 tpa to 300,000 tpa, are still awaiting permission.

Zinc:
The expansion at Rampura Agucha mine is complete and commissioning trials are
going on at present. At the captive power plant, both the machines have been
synchronised and we are already producing power to meet the current needs. The
roaster at Chanderiya smelter has been commissioned and other sections of the
plant are under testing.

                                     -ends-

For further information, please contact:

John Smelt, Head of Investor Relations
Peter Sydney-Smith, Finance Director
Vedanta Resources plc
www.vedantaresources.com                    Tel: +44 207 659 4734
                                                 +44 787 964 2675

James Murgatroyd
Lucy Slater
Finsbury                                    Tel: +44 207 251 3801





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