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Vedanta Resources (VED)

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Thursday 10 April, 2008

Vedanta Resources

KCM option completion

Vedanta Resources PLC
10 April 2008


                                                                   10 April 2008

                 Vedanta completes exercise of KCM call option

Vedanta Resources plc ('Vedanta') is pleased to announce its completion of the
acquisition of the KCM call option shares for US$213.15 million, the amount
determined by the independent valuation as at 12 August 2005. This purchase
represents 28.4% of KCM and takes Vedanta's holding in KCM to 79.4%, with the
balance continuing to be held by the Government of the Republic of Zambia. The
transaction is funded out of existing cash resources. Vedanta has received
confirmation that the Zambian merger control regulation does not apply to the
transaction.

'Consolidation of the group structure is a key pillar of Vedanta's strategy. The
successful exercise of this call option is a significant milestone towards
achieving this objective.' said Mr. Anil Agarwal, Chairman, Vedanta Resources
plc. 'This transaction is immediately earnings accretive and will also
substantially enhance longer term value for all our shareholders.'


For further information, please contact:

Sumanth Cidambi                          sumanth.cidambi@vedanta.co.in
Associate Director - Investor Relations  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
www.vedantaresources.com.


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,' '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. HZL does not undertake to update its forward-looking
statements.


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