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Vedanta Resources (VED)

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Friday 16 December, 2005

Vedanta Resources

Growth Project

Vedanta Resources PLC
16 December 2005


                                                                16 December 2005

           Vedanta Resources announces 500,000 tpa Aluminium project

The Board of Vedanta Resources plc ('Vedanta') has approved a US$2.1 billion
green-field 500,000 tpa aluminium smelter project together with an associated
1,215 MW captive thermal power plant in Jharsuguda, Orissa in India (the
'Jharsuguda project'). Upon completion, this will increase Vedanta's total
aluminium smelting capacity to 900,000 tpa, placing it among the largest
integrated producers of aluminium worldwide. The Jharsuguda project will repeat
the project framework and technology of the Korba smelter that was successfully
commissioned recently.

The Jharsuguda project will comprise two pot lines each containing 288 cells. It
will be implemented in two phases of 250,000 tpa each and is expected to
commence construction in June 2006. Construction of the first phase is expected
to complete in the second half of 2009 and the second phase is expected to
complete by the end of 2010. The associated thermal power plant will totally
comprise nine units of 135 MW each, of which five units of 135 MW each will be
commissioned as a part of the first phase. The commissioning of the power plant
units is being scheduled to meet the power requirement of the new Jharsuguda
smelter and is based on the modular 135 MW configuration deployed successfully
at Korba.

The experienced in-house project management team that implemented the Korba
smelter project on schedule will manage this project. Vedanta's green-field
1-1.4 mtpa alumina refinery in Orissa is scheduled to be commissioned in early
2007. This refinery would feed the alumina required for the new Jharsuguda
aluminium smelter.

The total investment in the Jharsuguda project is based on the green-field
nature of the project and is estimated at US$2.1 billion, to be phased over five
years. This investment includes the cost of building the smelter, the associated
power facilities and all necessary infrastructure including railway networks,
water pipelines and a township for employees. The investment will be funded
through a combination of internal resources and external financing.

'The Jharsuguda project is the next phase of our growth in becoming a million
tpa producer of aluminium. It further enhances our ability to produce aluminium
at costs that are in the lowest quartile of the industry cost-curve.' said Anil
Agarwal, Executive Chairman, Vedanta Resources plc. 'India is a fast emerging
and attractive resource destination and this project harnesses India's high
quality wealth of mineral resources at low costs of development.'

For further information, please contact:

Sumanth Cidambi                               sumanth.cidambi@vedanta.co.in
Associate Director - Investor Relations       Tel: +91 22 5646 1531
Vedanta Resources plc

Faeth Birch                                   Tel: +44 20 7251 3801
Robin Walker
Finsbury


About Vedanta Resources plc

Vedanta Resources plc is a London listed diversified metals and mining group.
Its principal operations are located throughout India, with further operations
in Zambia and Australia. The major metals produced are aluminium, copper, zinc
and lead. For further information, please visit www.vedantaresources.com.

Additional Information

Vedanta Resources plc has already taken steps to harness the bauxite reserves in
the State of Orissa. Orissa is naturally endowed with one of the best bauxite
and coal reserves in the world. This makes it a strategic location for setting
up an aluminium smelter along with the required power plant. Jharsuguda is
strategically located with good infrastructure and availability of adequate
water and coal.

Disclaimer

This press release contains 'forward-looking statements' - that is, statements
related to future, not past, events. In this context, forward-looking statements
often address our expected future business and financial performance, and often
contain words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,'
'seeks,' or 'will.' Forward-looking statements by their nature address matters
that are, to different degrees, uncertain. For us, uncertainties arise from the
behaviour of financial and metals markets including the London Metal Exchange,
fluctuations in interest and or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other matters of national,
regional and global scale, including those of a political, economic, business,
competitive or regulatory nature. These uncertainties may cause our actual
future results to be materially different that those expressed in our
forward-looking statements. We do not undertake to update our forward-looking
statements.





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