10th Apr 2008 07:01
Vedanta Resources PLC10 April 2008 10 April 2008 Production Results for the Fourth Quarter and Full Year Ended 31 March 2008 Highlights • 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 environment Iron Ore During Q4, we had the highest ever quarterly shipment of Iron ore of c5 milliontonnes, 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 12.44million tonnes, an increase of 17% compared with the previous year. Aluminium Aluminium production of 102,000 tonnes in Q4 was the highest ever quarterlyproduction. This increase in production is attributable to a gradual increase incurrent density and current efficiency at our Balco II smelter. Full yearAluminium production of 396,000 tonnes was 12.8% higher than the previous year. The Alumina production, out of single stream operation, at the Lanjigarhrefinery was 124,000 tonnes in Q4, the highest achieved so far in a quarter andmeeting our captive requirement. Zinc Mined Zinc metal production for Q4 was 138,000 tonnes, consistent with thenormal 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 beenexcellent and achieved its rated capacity in the very first quarter ofcommissioning. This enabled us to achieve our highest ever quarterly Zinc metalproduction of 135,000 tonnes, an increase of 29.8% as compared with precedingquarter. This takes the FY 2008 Zinc metal production to 426,000 tonnes, anincrease of 22.4% compared with the previous year. Our ongoing exploration efforts are yielding good results, which are presentlyunder certification. During the quarter, we received the LME registration for Zinc metal producedfrom Chanderiya Hydro I smelter. Copper - India and Australia During Q4, the Copper cathode production at the Tuticorin smelter was 90,000tonnes, higher than the output in the immediately preceding quarter and in linewith our expectations. Cathode production for FY2008 was 339,000 tonnes, anincrease of 8.3% compared with the previous year. Mined metal production at our Australian mines was 6,000 tonnes in Q4, takingthe 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 inZambia in January 2008, which took three weeks for all mines and operations toprogressively return to normal levels of activity. FY 2008 cathode productionwas 150,000 tonnes, 5.6% higher compared with the previous year. Projects Update Aluminium The first phase of the 500,000 tpa Aluminium smelter at Jharsuguda and theassociated captive power plant is in the final stages of commissioning withfirst metal tapping expected shortly, more than a year ahead of schedule. With regard to the environmental clearances for the Lanjigarh bauxite mines, weare now progressing as per the directions provided by the Honourable SupremeCourt of India and are hopeful of a positive resolution of the matter soon. Zinc Work on the 88,000 tonnes debottlenecking project and the associated captivepower plant is on track for commissioning by mid-2008. Copper Work on the Konkola Deeps mine expansion project is progressing well and is ontrack to achieve our target of completing the mid-shaft loading station bymid-2009. Work at the Nchanga smelter expansion project remains on track withthe erection and pre-commissioning activities in full swing for commissioning bymid-2008. Commercial Energy Work on our 2400 MW (4x600 MW) coal based independent thermal power plant isprogressing well with equipment deliveries on schedule. Construction activitiesare in full swing and the project is on schedule for progressive commissioningfrom December 2009. As part of our green energy initiative, we have commissioned 107.2 MW wind powerplants 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%Alumina Korba / Mettur 79 80 (1.3%) 291 299 (2.7%) Lanjigarh 124 - - 267 - - Zinc 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 [email protected] Director - Investor Tel: +44 20 7659 4732 / +91 22 6646 1531Relations Vedanta Resources plc James MurgatroydRobin WalkerFinsbury Tel: +44 20 7251 3801 About Vedanta Resources plc Vedanta Resources plc is a London listed FTSE 100 diversified metals and mininggroup. Its principal operations are located throughout India, with furtheroperations in Zambia and Australia. The major metals produced are aluminium,copper, zinc, lead and iron ore. For further information, please visitwww.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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