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Vedanta Resources (VED)

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Thursday 24 April, 2008

Vedanta Resources

HZL Expansion Projects

Vedanta Resources PLC
24 April 2008


24 April 2008

Please be advised that this release supersedes the previous release of the same
title (RNS no.0391T) due to a correction of two figures (210,000 tonnes and 
100,000 tonnes) in the first paragraph.


             Vedanta Resources' subsidiary Hindustan Zinc to become

                 World's Largest Integrated Zinc-Lead Producer


- Expanding capacity at HZL to 1,065,000 tpa, making it the largest integrated 
  zinc-lead producer in the world and achieving stated capacity goal of 1 
  million tonnes per annum

- Silver production expected to increase to 500 tonnes per year

- Strong reserves and resources position of 232.3 million tonnes containing a 
  total of 27.5 million tonnes of zinc-lead metal


Vedanta Resources plc's ('Vedanta') subsidiary, Hindustan Zinc Limited ('HZL')
has announced expansion projects that will take its total integrated zinc-lead
capacity to 1,065,000 tonnes per annum with fully integrated mining and captive
power generation capacities, thereby making it the world's largest integrated
zinc-lead producer by 2010. HZL will continue to maintain its superior cost
leadership position among the zinc producers in the world. Two brownfield
smelter projects, which will increase the production capacities of zinc and lead
by 210,000 tonnes and 100,000 tonnes respectively, will be undertaken at Rajpura
Dariba in Rajasthan, India.

HZL expects to increase its silver production from the current levels of
approximately 100-120 tonnes per year to a level of approximately 500 tonnes per
year in the form of silver and silver bearing residue. A large part of this
increase would be from the Sindesar Khurd mine where silver occurrences are
approximately at levels of 200 ppm and from the use of appropriate technology in
the new smelters.

The expansion is supported by HZL's strong reserves and resources of
232.3 million tonnes containing 27.5 million tonnes of zinc-lead metal at
31 March 2008. The reserves and resources position have been earlier
independently reviewed and certified as per the JORC standard.

To support the increased smelting capacities, HZL will expand its ore production
capacity at the Rampura Agucha mine from 5 mtpa to 6 mtpa. Further, ore
production at the Sindesar Khurd mine, the new star in HZL's mining portfolio,
will be increased from 0.3 mtpa to 1.5 mtpa. HZL will also start mining activity
at the Kayar mine which will have a production capacity of 0.3 mtpa.

In line with the group's philosophy of being a fully self reliant producer of
power, a captive thermal power plant with a capacity of 160MW will also be set
up at Rajpura Dariba.

The zinc and lead smelters as well as the 160MW captive power plant and the
Rampura Agucha mine expansion will be complete by mid-2010. The expansions at
the Sindesar Khurd and Kayar mines will be completed in phases by early 2012.

The total investment in these projects is estimated at $ 900 million. This
investment includes the cost of the smelters, captive power facilities, mine
development and shaft sinking and other infrastructure. The expansion will
utilise the same technology and project management skills that successfully
delivered the Chanderiya II expansion project ahead of schedule.


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                         Tel: +44 20 7251 3801
Robin Walker
Finsbury


About Vedanta

Vedanta is a London listed FTSE 100 diversified metals and mining major. The
group produces aluminium, copper, zinc, lead and iron ore and also commercial
energy. Vedanta has operations in India, Zambia and Australia and a strong
organic growth pipeline of projects. With an empowered talent pool of 30,000
employees globally, Vedanta places strong emphasis on partnering with all its
stakeholders based on the core values of entrepreneurship, excellence, trust,
inclusiveness and growth. For more information 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. We do not undertake to update our forward-looking
statements.




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