Vedanta production rises after ramp-up of smelters

LONDON (Reuters) - India-focused miner Vedanta Resources said on Tuesday production of aluminium, copper and refined zinc rose in the first half following the ramp-up of new smelters.

Analysts said the production figures were broadly in line with expectations. Shares in London-listed Vedanta eased 0.16 percent to 1,263 pence at 8:34 a.m.

Vedanta said copper cathode production rose 10.5 percent to 137,000 tonnes in the half year to end-September, including second-quarter production up 17.6 percent to 80,000 tonnes.

Aluminium output rose 89 percent to 155,000 tonnes in the half, the company said in a statement. Refined zinc output rose 30.0 percent to 161,000 tonnes.

Vedanta attributed the rise to the ongoing commissioning of its new Korba II smelter and ramp-up of its new Tuticorin and Chanderiya smelters in India.

Copper production at its Zambian operations fell as expected due to the shutdown of its Nkana smelter.

The company said full commissioning of its new Balco smelter in India was on track.

"Production data for the second 2007 fiscal quarter to September showed in general a continuation of the growth trend of Vedanta's commodity mix and were broadly in line with our expectations," JP Morgan said in a note to clients.

Vedanta sells most of its output in India, one of the world's fastest growing economies.