9th Oct 2013 07:00
9 October 2013
Vedanta Resources plc
Production Release for the Second Quarter and
Half Year Ended 30 September 2013
Q2 Highlights
Ø Record oil & gas production of 213,299 boepd
Ø Increased production of refined zinc, lead and silver at Zinc India
Ø Group Structure consolidation and simplification completed
Zinc - India
Q2 | Q1 | H1 | |||||
Particulars (in'000 tonnes, or as stated) | FY2014 | FY2013 | % change YoY | FY2014 | FY2014 | FY2013 | % change YoY |
ZINC INDIA | |||||||
Mined metal content | 222 | 190 | 16% | 238 | 459 | 377 | 22% |
Refined Zinc - Total | 196 | 163 | 21% | 174 | 370 | 324 | 14% |
Refined Zinc - Integrated | 195 | 153 | 28% | 173 | 368 | 310 | 19% |
Refined Zinc - Custom | 1 | 10 | (84%) | 1 | 2 | 14 | (83%) |
Refined Lead - Total 1 | 32 | 27 | 17% | 33 | 64 | 58 | 11% |
Refined Lead - Integrated | 31 | 24 | 29% | 29 | 60 | 53 | 13% |
Refined Lead - Custom | 1 | 3 | (64%) | 3 | 4 | 5 | (13%) |
Saleable Silver - Total(in '000 ounces) 2 | 2,891 | 2,711 | 7% | 3,090 | 5,980 | 5,062 | 18% |
Saleable Silver - Integrated(in '000 ounces) | 2,684 | 2,345 | 14% | 2475 | 5,159 | 4,619 | 12% |
Saleable Silver - Custom(in '000 ounces) | 207 | 366 | (44%) | 614 | 821 | 443 | 85% |
Mined metal production increased by 16% in Q2 and 22% in H1, as compared with the corresponding prior periods respectively, and we expect to deliver approximately 950 kt of mined metal production during the year.
Due to a significant improvement in the operational efficiency of smelters, integrated production of refined zinc, lead and saleable silver increased by 28%, 29% and 14%, respectively, in Q2, as compared with the corresponding prior quarter.
The Kayad and Rampura Agucha underground mine projects are progressing well to deliver commercial production in this fiscal year.
Zinc International
Q2 | Q1 | H1 | |||||
Particulars (in'000 tonnes, or as stated) | FY2014 | FY2013 | % change YoY | FY2014 | FY2014 | FY2013 | % change YoY |
Zinc International | 106 | 114 | (6%) | 90 | 196 | 220 | (11%) |
Zinc -refined | 35 | 37 | (5%) | 34 | 69 | 73 | (5%) |
Mined metal content - BMM and Lisheen | 71 | 77 | (7%) | 56 | 127 | 147 | (14%) |
Total production of refined zinc and mined zinc-lead metal in concentrate (MIC) increased to 106,000 tonnes in Q2 as compared with 90,000 tonnes in Q1, as the operations stabilised after the disruptions at Lisheen and BMM in Q1. In line with earlier guidance, we expect to produce around 390 kt of refined zinc and mined zinc-lead metal in concentrate in FY2014.
Oil and Gas
Q2 | Q1 | H1 | |||||
Particulars | FY2014 | FY2013 | % change YoY | FY2014 | FY2014 | FY2013 | % change YoY |
OIL AND GAS (boepd) | |||||||
Average Daily Gross Operated Production (boepd) | 213,299 | 207,245 | 3% | 212,442 | 212,873 | 207,105 | 3% |
Rajasthan | 175,478 | 171,801 | 2% | 173,517 | 174,503 | 169,486 | 3% |
Ravva | 29,151 | 28,614 | 2% | 28,253 | 28,704 | 30,591 | (6%) |
Cambay | 8,671 | 6,830 | 27% | 10,672 | 9,666 | 7,028 | 38% |
Average Daily Working Interest Production (boepd) | 132,862 | 129,431 | 3% | 132,087 | 132,477 | 128,335 | 3% |
Rajasthan | 122,835 | 120,261 | 2% | 121,462 | 122,152 | 118,641 | 3% |
Ravva | 6,559 | 6,438 | 2% | 6,357 | 6,458 | 6,883 | (6%) |
Cambay | 3,468 | 2,732 | 27% | 4,269 | 3,866 | 2,811 | 38% |
Total Oil and Gas (million boe) | |||||||
Oil & Gas- Gross | 19.62 | 19.07 | 3% | 19.33 | 38.96 | 37.90 | 3% |
Oil & Gas-Working Interest | 12.22 | 11.91 | 3% | 12.02 | 24.24 | 23.49 | 3% |
In Q2, average gross operated production and working interest production were 213,299 barrels of oil equivalent per day (boepd) and 132,862 boepd, respectively, both 3% higher than the corresponding prior period.
The gross production at the Rajasthan block was 2% higher at 175,478 boepd. Production at Cambay was 27% higher in Q2 due to new infill wells and one workover well that had been put into production in Q1. Production at Ravva was 2% higher in Q2.
Exploration drilling continues in the Rajasthan block with the current program targeting half of the 530 million barrels of gross recoverable risked prospective resource base, including considerable deep gas prospects in this fiscal year.
Iron Ore
Q2 | Q1 | H1 | |||||
Particulars (in million dry metric tonnes, or as stated) | FY2014 | FY2013 | % change YoY | FY2014 | FY2014 | FY2013 | % change YoY |
IRON ORE 3 | |||||||
Sales | - | 0.2 | - | - | - | 3.1 | - |
Goa | - | 0.2 | - | - | - | 3.0 | - |
Karnataka4 | - | 0.0 | - | - | - | 0.1 | - |
Production of Saleable Ore | - | 0.4 | - | - | - | 3.7 | - |
Goa | - | 0.4 | - | - | - | 3.7 | - |
Karnataka | - | 0.0 | - | - | - | 0.0 | - |
Production ('000 tonnes) | |||||||
Pig Iron | 129 | 82 | 57% | 110 | 238 | 121 | 97% |
Met Coke | 88 | 83 | 6% | 85 | 173 | 146 | 18% |
During H1, our iron ore operations in Goa and Karnataka continued to be suspended. Following the lifting of restriction on mining in Karnataka by the Supreme Court, we are now awaiting final statutory clearances to restart mining. We expect to resume mining in Karnataka shortly. Regarding the suspension of mining in Goa, the hearings have commenced at the Supreme Court.
Production of pig iron and metallurgical coke were 57% and 6% higher at 129,000 tonnes and 88,000 tonnes, respectively, as compared with the corresponding prior period due to the new capacities that were commissioned in Q2 FY2013.
Copper - India and Australia
Q2 | Q1 | H1 | |||||
Particulars (in'000 tonnes, or as stated) | FY2014 | FY2013 | % change YoY | FY2014 | FY2014 | FY2013 | % change YoY |
COPPER- INDIA / AUSTRALIA | |||||||
Copper - Mined metal content | 6 | 6 | (4%) | 6 | 12 | 13 | (8%) |
Copper - Cathodes | 82 | 87 | (5%) | 16 | 98 | 175 | (44%) |
Tuticorin power sales(million units) | 158 | - | - | 137 | 295 | - | - |
Following a temporary closure in Q1, the smelter had restarted in end June and is now operating at full capacity. Copper cathode production was 82,000 tonnes in Q2 and 98,000 tonnes in H1. However, the copper anode production in Q2 was 90,000 tonnes, in line with the rated capacity.
Mined metal production at our Australia mine was 6,000 tonnes in Q2.
Copper - Zambia
Q2 | Q1 | H1 | |||||
Particulars (in'000 tonnes, or as stated) | FY2014 | FY2013 | % change YoY | FY2014 | FY2014 | FY2013 | % change YoY |
COPPER -ZAMBIA | |||||||
Mined metal | 34 | 45 | (26%) | 36 | 70 | 86 | (19%) |
Copper - Total | 50 | 61 | (17%) | 43 | 94 | 110 | (15%) |
Integrated | 36 | 47 | (22%) | 29 | 65 | 83 | (22%) |
Custom | 14 | 14 | - | 15 | 29 | 27 | 6% |
Mined metal production was lower at 34,000 tonnes in Q2 and 70,000 tonnes in H1 mainly due to the suspension of mining operations at COP F&D since January 2013, which was partially offset by higher output from the Tailings Leach Plant (TLP). Integrated production was lower in H1 due to a temporary shutdown of the Nchanga smelter in Q1.
We now expect to deliver integrated production of around 140kt excluding COP F&D in FY2014 due to a slower ramp-up at Konkola, while maintaining a cost of c. USc230/lb.
Aluminium
Q2 | Q1 | H1 | |||||
Particulars(in'000 tonnes, or as stated) | FY2014 | FY2013 | % change YoY | FY2014 | FY2014 | FY2013 | % change YoY |
ALUMINIUM | |||||||
Alumina-Lanjigarh | 116 | 205 | (43%) | 0 | 116 | 423 | (73%) |
Total Aluminum Production | 200 | 197 | 2% | 195 | 395 | 382 | 3% |
Jharsuguda-I | 137 | 134 | 2% | 134 | 271 | 259 | 5% |
Korba-II | 63 | 63 | 1% | 61 | 124 | 123 | 1% |
The Lanjigarh alumina refinery recommenced operations in July and produced 116,000 tonnes in Q2. During Q2, the refinery supplied 17% of the alumina consumed by our smelters as compared with 100% import of alumina feed by the smelters in Q1. We expect the refinery to ramp-up to its rated capacity in Q3 FY2014.
In Q2, the Jharsuguda-I and Korba-II smelters continued to operate above their rated capacities. Around 60% of the total production was converted into value added products in Q2, in line with the corresponding prior period.
We expect to tap the first metal at 325 ktpa BALCO-III Aluminium smelter in Q3 FY2014. Having obtained the forest clearance for the BALCO coal block, we expect to commence mining in Q1 FY2015. We continue to evaluate the potential start-up date of the 1.25 mtpa Jharsuguda smelter.
Power
Q2 | Q1 | H1 | |||||
Particulars (in million units) | FY2014 | FY2013 | % change YoY | FY2014 | FY2014 | FY2013 | % change YoY |
POWER | |||||||
Total Power Sales | 1,910 | 2,695 | (29%) | 3,177 | 5,087 | 5,364 | (5%) |
Jharsuguda 2,400 MW 5 | 1,494 | 1,940 | (23%) | 2,604 | 4,098 | 3879 | 6% |
BALCO 270 MW | 44 | 346 | (87%) | 187 | 231 | 684 | (66%) |
MALCO | 221 | 221 | - | 224 | 445 | 431 | 3% |
HZL Wind Power | 151 | 188 | (20%) | 162 | 313 | 370 | (15%) |
Power sales were lower at 1,910 million units in Q2 and 5,087 million units in H1, primarily due to lower power sales from Jharsuguda 2,400MW power plant which operated in Q2 at a PLF of 31% for all four units as compared with 41% for three units during the corresponding prior period. The lower PLF at Jharsuguda and BALCO 270 MW was largely on account of lower demand.
Work at the Talwandi Sabo power project is progressing well and the first unit is expected to be synchronized in Q3 FY2014.
Note: In accordance with IFRS 8, the Power segment includes BALCO 270 MW power plant which was earlier a part of the Aluminium Segment. This reclassification has been done as the power generated from the 270 MW power facility would largely be sold to third parties.
Production Summary (Unaudited)
(in '000 tonnes, except as stated)
Particulars | Q2 | Q1 | H1 | ||||
FY 2014 | FY 2013 | % change YoY | FY 2014 | FY 2014 | FY 2013 | % change YoY | |
Zinc India | |||||||
Mined metal content | 222 | 190 | 16% | 238 | 459 | 377 | 22% |
Refined Zinc - Total | 196 | 163 | 21% | 174 | 370 | 324 | 14% |
Refined Zinc - Integrated | 195 | 153 | 28% | 173 | 368 | 310 | 19% |
Refined Zinc - Custom | 1 | 10 | (84%) | 1 | 2 | 14 | (83%) |
Refined Lead - Total 1 | 32 | 27 | 17% | 33 | 64 | 58 | 11% |
Refined Lead - Integrated | 31 | 24 | 29% | 29 | 60 | 53 | 13% |
Refined Lead - Custom | 1 | 3 | (64%) | 3 | 4 | 5 | (13%) |
Saleable Silver - Total (in '000 ounces) 2 | 2,891 | 2,711 | 7% | 3,090 | 5,980 | 5,062 | 18% |
Saleable Silver- Integrated(in '000 ounces) | 2,684 | 2,345 | 14% | 2,475 | 5,159 | 4,619 | 12% |
Saleable Silver- Custom(in '000 ounces) | 207 | 366 | (44%) | 614 | 821 | 443 | 85% |
Zinc International | 106 | 114 | (6%) | 90 | 196 | 220 | (11%) |
Zinc -refined Skorpion | 35 | 37 | (5%) | 34 | 69 | 73 | (5%) |
Mined metal content- BMM and Lisheen | 71 | 77 | (7%) | 56 | 127 | 147 | (14%) |
Oil and Gas | |||||||
Average Daily Gross Operated Production (boepd) | 213,299 | 207,245 | 3% | 212,442 | 212,873 | 207,105 | 3% |
Rajasthan | 175,478 | 171,801 | 2% | 173,517 | 174,503 | 169,486 | 3% |
Ravva | 29,151 | 28,614 | 2% | 28,253 | 28,704 | 30,591 | (6%) |
Cambay | 8,671 | 6,830 | 27% | 10,672 | 9,666 | 7,028 | 38% |
Average Daily Gross Operated Production (boepd) | 132,862 | 129,431 | 3% | 132,087 | 132,477 | 128,335 | 3% |
Rajasthan | 122,835 | 120,261 | 2% | 121,462 | 122,152 | 118,641 | 3% |
Ravva | 6,559 | 6,438 | 2% | 6,357 | 6,458 | 6,883 | (6%) |
Cambay | 3,468 | 2,732 | 27% | 4,269 | 3,866 | 2,811 | 38% |
Total Oil and Gas (million boe) | |||||||
Oil & Gas - Gross | 19.62 | 19.07 | 3% | 19.33 | 38.96 | 37.90 | 3% |
Oil & Gas - Working Interest | 12.22 | 11.91 | 3% | 12.02 | 24.24 | 23.49 | 3% |
Iron Ore 3 (in million dry metric tonnes, or as stated) | |||||||
Sales | - | 0.2 | - | - | - | 3.1 | - |
Goa | - | 0.2 | - | - | - | 3.0 | - |
Karnataka 4 | - | 0.0 | - | - | - | 0.1 | - |
Production of Saleable Ore | - | 0.4 | - | - | - | 3.7 | - |
Goa | - | 0.4 | - | - | - | 3.7 | - |
Karnataka | - | 0.0 | - | - | - | 0.0 | - |
Production ('000 tonnes) | |||||||
Pig Iron | 129 | 82 | 57% | 110 | 238 | 121 | 97% |
Met Coke | 88 | 83 | 6% | 85 | 173 | 146 | 18% |
Particulars | Q2 | Q1 | H1 | ||||
FY 2014 | FY 2013 | % change YoY | FY 2014 | FY 2014 | FY 2013 | % change YoY | |
Copper- India / Australia | |||||||
Copper - Mined metal content | 6 | 6 | (4%) | 6 | 12 | 13 | (8%) |
Copper - Cathodes | 82 | 87 | (5%) | 16 | 98 | 175 | (44%) |
Tuticorin power sales(million units) | 158 | 0 | 137 | 295 | 0 | ||
Copper - Zambia | |||||||
Mined Metal | 34 | 45 | (26%) | 36 | 70 | 86 | (19%) |
Copper - Total | 50 | 61 | (17%) | 43 | 94 | 110 | (15%) |
Integrated | 36 | 47 | (22%) | 29 | 65 | 83 | (22%) |
Custom | 14 | 14 | - | 15 | 29 | 27 | 6% |
Alumina | |||||||
Lanjigarh | 116 | 205 | (43%) | 0 | 116 | 423 | (73%) |
Aluminium | |||||||
Total Aluminum Production | 200 | 197 | 2% | 195 | 395 | 382 | 3% |
Jharsuguda | 137 | 134 | 2% | 134 | 271 | 259 | 5% |
Korba II | 63 | 63 | 1% | 61 | 124 | 123 | 1% |
Power (in million units) | |||||||
Total Power Sales | 1,910 | 2,695 | (29%) | 3,177 | 5,087 | 5,364 | (5%) |
Jharsuguda 2,400 MW 5 | 1,494 | 1,940 | (23%) | 2,604 | 4,098 | 3,879 | 6% |
Balco 270 MW | 44 | 346 | (87%) | 187 | 231 | 684 | (66%) |
MALCO | 221 | 221 | - | 224 | 445 | 431 | 3% |
HZL Wind Power | 151 | 188 | (20%) | 162 | 313 | 370 | (15%) |
1. Includes captive consumption of 3,344 tonnes in H1 FY 2014 vs 3,076 tonnes in H1 FY 2013, and 1,700 tonnes in Q2 FY 2014 vs 1,435 tonnes in Q2 FY 2013
2. Excludes captive consumption of 574,000 ounces in H1 FY 2014 vs 520,000 ounces in H1 FY 2013, and 289,000 ounces in Q2 FY 2014 vs 242,000 ounces in Q2 FY 2013
3. Iron Ore sales include internal consumption of nil tonnes in H1 FY2014 vs 0.18 million tonnes in H1 FY2013 and nil tonnes in Q2 FY2014 vs 0.12 million tonnes in Q2 FY2013.
4. Sales of iron ore from Karnataka were 0.02 million tonnes in H1 FY2014 vs 0.06 million tonnes in H1 FY2013 and nil tonnes in Q2 FY2014 vs 0.01 million tonnes in Q2 FY2013.
5. Includes production under trial run of Nil units in H1 FY2014 vs. 339 million units in H1 FY2013 and Nil units in Q2 FY2014 vs 138 million units in Q2 FY2013.
For further information, please contact:
Investors Ashwin Bajaj Senior Vice President - Investor Relations Vedanta Resources plc
| Tel: +91 22 6646 1531
|
Media Gordon Simpson Finsbury | Tel: +44 20 7251 3801 |
About Vedanta Resources plc
Vedanta Resources plc ("Vedanta") is a London listed FTSE 100 diversified global natural resources major. The group produces aluminium, copper, zinc, lead, silver, iron ore, oil & gas and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka. With an empowered talent pool 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, 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. We do not undertake to update our forward-looking statements.
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