Vedanta says organic growth projects on track
miningweekly.com
By: Chanel Pringle
7th May 2009
JOHANNESBURG (miningweekly.com) – Diversified miner Vedanta Resources has achieved a record production of aluminium, iron-ore and zinc in the 2009 financial year, which assisted it in mitigating the drop in commodity prices in recent months.
The London-listed company’s chairperson Anil Agarwal told shareholders in a statement on Thursday that it was also on track with its organic growth projects, which would lead to the production of one-million tons a year of zinc-lead, 2,5-million tons a year of aluminium, 25-million tons a year of iron-ore and 6 500 MW of captive and commercial power in the next few years.
Aluminium production for the year ended March 31, 2009, had increased by 16,7% year-on-year to 462 000 t, mainly as a result of the first production from its Jharsuguda aluminium smelter, which contributed 82 000 t.
The smelter would, as part of its first phase, reach an output of 250 000 t of aluminium by the first quarter of the 2010 financial year, which was six months ahead of schedule.
Further, the civil construction of the new 1,25-million tons a year Jharsuguda II aluminium smelter was continuing, with the project on schedule for its phased commissioning to start in March next year. The smelter would be fully operational by September 2012.
Construction has also started on its subsidiary, the Bharat Aluminium Company’s (Balco’s) new 325 000-t/y smelter.
Meanwhile, saleable iron-ore production had increased by 28,5% to 15,99-million tons for the year, compared with the 12,44-million tons produced the year before.
Mined metal production for zinc and lead had increased by 16,9% to 735 000 t in the year, owing to the commissioning of a third concentrator at its Rampura Agucha mine, stated Vedanta.
The company was also planning to start mining its own bauxite at Niyamgiri, in the Orissa state, in eastern India, this year, following the Indian Supreme Court’s decision to clear the project, noted Agarwal.
Environmentalists and local tribes in the area were opposed to the project.
POWER PROJECTS
Vedanta, meanwhile, stated that the design and detailed engineering of its 2 400-MW greenfield coal-based independent thermal power plant at Jharsuguda, in Orissa, India, had been completed.
The majority of the equipment for the first of four 600-MW units had been received, with the project on schedule to start commissioning by the fourth quarter of 2009.
FINANCIAL PERFORMANCE
The company’s earnings, excluding special items, was down 46,4% year-on-year to $1,6-billion, owing to impairments costs and other costs.
Basic earnings a share were down to $0,76c a share for the year, compared with the $3,05 a share the previous year, as a result of lower attributable profits, which was a result of lower operating profits and a change in the profit mix among its subsidiaries, its stated.
Agarwal, meanwhile, said that the company would remain focused on reducing its cost of production and on delivering its organic growth projects on time. |
