Information  X 
Enter a valid email address

Vedanta Resources (VED)

  Print      Mail a friend       Annual reports

Thursday 10 April, 2008

Vedanta Resources

Q4 Production Results

Vedanta Resources PLC
10 April 2008

                                                                   10 April 2008

            Production Results for the Fourth Quarter and Full Year
                              Ended 31 March 2008


•  Significant increase in full year ('FY 2008') production across all metals 
   and iron ore

•  Highest ever quarterly iron ore shipment from Sesa Goa of c5 million tonnes

•  Highest ever quarterly aluminium production at 102,000 tonnes

•  Chanderiya Hydro II zinc smelter achieves rated capacity in first quarter 
   after commissioning

•  LME registration of the zinc metal from Chanderiya Hydro I smelter

•  Costs of production in rupee terms stable, despite challenging operating 

Iron Ore

During Q4, we had the highest ever quarterly shipment of Iron ore of c5 million
tonnes, consistent with production of c4.7 million tonnes during the quarter.
The Iron ore production for the 12 months period ended 31 March 2008 was 12.44
million tonnes, an increase of 17% compared with the previous year.


Aluminium production of 102,000 tonnes in Q4 was the highest ever quarterly
production. This increase in production is attributable to a gradual increase in
current density and current efficiency at our Balco II smelter. Full year
Aluminium production of 396,000 tonnes was 12.8% higher than the previous year.

The Alumina production, out of single stream operation, at the Lanjigarh
refinery was 124,000 tonnes in Q4, the highest achieved so far in a quarter and
meeting our captive requirement.


Mined Zinc metal production for Q4 was 138,000 tonnes, consistent with the
normal quarterly production, taking the full year production to 551,000 tonnes,
an increase of 9.1% compared with the previous year.

The production ramp-up at the new Chanderiya Hydro II zinc smelter has been
excellent and achieved its rated capacity in the very first quarter of
commissioning. This enabled us to achieve our highest ever quarterly Zinc metal
production of 135,000 tonnes, an increase of 29.8% as compared with preceding
quarter. This takes the FY 2008 Zinc metal production to 426,000 tonnes, an
increase of 22.4% compared with the previous year.

Our ongoing exploration efforts are yielding good results, which are presently
under certification.

During the quarter, we received the LME registration for Zinc metal produced
from Chanderiya Hydro I smelter.

Copper - India and Australia

During Q4, the Copper cathode production at the Tuticorin smelter was 90,000
tonnes, higher than the output in the immediately preceding quarter and in line
with our expectations. Cathode production for FY2008 was 339,000 tonnes, an
increase of 8.3% compared with the previous year.

Mined metal production at our Australian mines was 6,000 tonnes in Q4, taking
the FY2008 production to 28,000 tonnes, in line with our expectations.

Copper - Zambia

Cathode production at our Zambian operation was 34,000 tonnes during Q4.
Production during the quarter suffered a setback due to a power grid failure in
Zambia in January 2008, which took three weeks for all mines and operations to
progressively return to normal levels of activity. FY 2008 cathode production
was 150,000 tonnes, 5.6% higher compared with the previous year.

Projects Update


The first phase of the 500,000 tpa Aluminium smelter at Jharsuguda and the
associated captive power plant is in the final stages of commissioning with
first metal tapping expected shortly, more than a year ahead of schedule.

With regard to the environmental clearances for the Lanjigarh bauxite mines, we
are now progressing as per the directions provided by the Honourable Supreme
Court of India and are hopeful of a positive resolution of the matter soon.


Work on the 88,000 tonnes debottlenecking project and the associated captive
power plant is on track for commissioning by mid-2008.


Work on the Konkola Deeps mine expansion project is progressing well and is on
track to achieve our target of completing the mid-shaft loading station by
mid-2009. Work at the Nchanga smelter expansion project remains on track with
the erection and pre-commissioning activities in full swing for commissioning by

Commercial Energy

Work on our 2400 MW (4x600 MW) coal based independent thermal power plant is
progressing well with equipment deliveries on schedule. Construction activities
are in full swing and the project is on schedule for progressive commissioning
from December 2009.

As part of our green energy initiative, we have commissioned 107.2 MW wind power
plants as of March 2008 and we expect to take this to 124 MW by mid-2008.

Production Summary (Unaudited)

                                              (in '000 tonnes, except as stated)

                            Q41         Change   Year ended 31 March   Change       
                       2007-08 2006-07              2007-08  2006-07         

Iron Ore2         
  Saleable Ore3         4,688        -         -    11,469         -        -
Aluminium                 102       98      4.1%       396       351    12.8%
  Korba / Mettur           79       80     (1.3%)      291       299    (2.7%)
  Lanjigarh               124        -         -       267         -        - 
  Mined Metal Content     138      121     14.0%       551       505     9.1%
  Refined metal           135       95     42.1%       426       348    22.4%
Copper India/Australia      
  Mined metal content       6        6         -        28        28        -
  Cathodes                 90       89      1.1%       339       313     8.3%
  Rods                     62       51     21.6%       225       178    26.4%
Copper Zambia       
  Mined metal content      15       19    (21.1%)       76        84    (9.5%)
  Cathodes                 34       37     (8.1%)      150       142     5.6%

1.    Q4 - fourth quarter ended 31 March 2008 and 2007, respectively.

2.    Saleable ore represents production in the post - acquisition
      period of 11 months to 31 March 2008, and are not directly comparable with the
      corresponding prior periods. The saleable ore production for the 12 months
      period ended 31 March 2008 was 12.44 million tonnes

3.    Saleable ore is reported on wet tonne basis.

For further information, please contact:

Sumanth Cidambi               
Associate Director - Investor           Tel: +44 20 7659 4732 / +91 22 6646 1531
Vedanta Resources plc

James Murgatroyd
Robin Walker
Finsbury                                Tel: +44 20 7251 3801

About Vedanta Resources plc

Vedanta Resources plc is a London listed FTSE 100 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, lead and iron ore. For further information, please visit


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,' 'should' 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

                      This information is provided by RNS
            The company news service from the London Stock Exchange