11th Apr 2006 07:00
Vedanta Resources PLC11 April 2006 11 April 2006 Vedanta Resources plc Production Results for the Fourth Quarter and Year Ended 31 March 2006 Summary • Major phase 1 expansion projects in aluminium, copper and zinc completed• Production volumes across all metals improved substantially Production Summary (Unaudited) (in tonnes, except as stated) Q4 Q3 Year Ended 31 March------------------------------------------------------------------------------- 2006 2005 % change 2006 2006 2005* % change-------------------------------------------------------------------------------Alumina 77 70 10.0% 78 296 279 6.1%Aluminium 68 36 88.9% 60 210 136 54.4%Copper - India/Australia Mined metal content 8 8 - 8 34 36 (5.6)%Copper - Cathode 75 47 59.6% 75 273 172 58.7%Copper - Rods 46 37 24.3% 41 167 125 33.6%Copper - Zambia * Mined metal content 17 29 (41.4)% 28 99 45 - Copper - Cathode 37 39 (5.1)% 46 164 68 - Zinc - Mined Metal 125 99 26.3% 127 472 355 33.0%Content Refined Zinc 92 54 70.4% 69 284 212 34.0%------------------------------------------------------------------------------- * Prior period comparatives for Copper - Zambia not comparable as KCM was acquired on 5 November 2004. Commentary Aluminium Business Aluminium production for the year at 210,000 tonnes, was 54% higher than theprevious year, primarily on the back of production from BALCO Plant II (newKorba smelter) of 69,000 tonnes and improved operational efficiencies at theexisting plants. As at 31 March 2006, 216 pots of the total 288 pots were commissioned at BALCOPlant II and the production from these pots in March 2006 was 14,000 tonnes. Theremaining 72 pots are expected to be commissioned within the first quarter ofthe current financial year. All four units of the 540 MW captive power plant arenow operating at full capacity delivering power in excess of our currentrequirements, with the surplus being exported to the State grid. The 1-1.4 mtpa alumina refinery project in Lanjigarh is progressing well withmechanical completion expected by second quarter of FY 2007. With regards to themining permits, the Honourable Supreme Court of India has held a hearing and hasnow directed the Ministry of Environment and Forests to submit their report,which will lead to further directions in settlement of the matter. Copper Business Copper cathode production at 273,000 tonnes and rod production at 167,000 tonnesin the Indian operations for the year were substantially higher, - an increaseof 59% and 34%, respectively compared to the previous year. The new Tuticorinsmelter commissioned in April 2005 is performing well and continues to operateat full capacity. The Tuticorin smelter will be under shutdown for plannedmaintenance for a period of 20 days in April 2006. Operations at Copper Mines of Tasmania's Mt. Lyell mine continue to perform wellwith improved operational efficiencies. However, total mine production from ourAustralian operations was lower due to the planned closure of Thalanga CopperMines during the year. Copper cathode production at Konkola Copper Mines was 164,000 tons in FY 2006.Mined metal production suffered a setback in the fourth quarter of FY 2006, withproduction of 17,000 tonnes compared to 29,000 tonnes in the correspondingperiod last year due to lower ore grade and operational matters. Whileimprovements at KCM are taking longer than expected to yield benefits, a seriesof initiatives including commissioning of the new sulphuric acid plant and amajor overhaul of the existing smelter should progressively result in higherproduction in FY 2007. Zinc Business Zinc - mined metal content for the year at 472,000 tonnes was 33% higher thanthe previous year. Refined zinc production for the year was 284,000 tonnes, 34%higher than the previous year, primarily due to additional output of 71,000tonnes from the new 170,000 tpa hydro smelter commissioned at Chanderiya inMay 2005, which has produced 14,000 tonnes in the month of March 2006. Surpluszinc concentrate of 100,000 tonnes was exported during the fourth quarter ofFY 2006. We also produced 24,000 tonnes of lead metal in FY 2006, including 4,300 tonnesfrom the recently commissioned 50,000 tpa Ausmelt lead plant. We expect fullramp-up of the Ausmelt lead plant to be achieved during the first quarter ofFY 2007. Pricing and Earnings While production growth has been overall in line with our expectations, highercommodity prices and sales of zinc concentrate in the fourth quarter are likelyto lead to a better than expected result. TC/RCs have improved through the year and this impact has been mainly realizedin the second half of 2006. Import tariffs on metals were reduced from 10% to7.5% by the Government of India, effective March 2006 onwards for aluminium,copper and zinc. Growth Projects Work on phase II of our growth projects is progressing as scheduled and we haveordered critical equipment and commenced construction activities. For further information, please contact: Sumanth Cidambi [email protected] Director - Investor Relations Tel: +44 20 7659 4732 / +91 22 5646 1531Vedanta Resources plc Robin WalkerFinsbury Tel: +44 20 7251 3801 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 operationsin Zambia and Australia. The major metals produced are aluminium, copper, zincand lead. For further information, please visit www.vedantaresources.com. Disclaimer This press release contains "forward-looking statements" - that is, statementsrelated to future, not past, events. In this context, forward-looking statementsoften address our expected future business and financial performance, and oftencontain words such as "expects," "anticipates," "intends," "plans," "believes,""seeks," "should" or "will." Forward-looking statements by their nature addressmatters that are, to different degrees, uncertain. For us, uncertainties arisefrom the behaviour of financial and metals markets including the London MetalExchange, fluctuations in interest and or exchange rates and metal prices; fromfuture integration of acquired businesses; and from numerous other matters ofnational, regional and global scale, including those of a political, economic,business, competitive or regulatory nature. These uncertainties may cause ouractual future results to be materially different that those expressed in ourforward-looking statements. We do not undertake to update our forward-lookingstatements. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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