Vedanta posts record output in aluminium, copper

JOHANNESBURG - India-focused miner Vedanta Resources posted record production of key metals in the second quarter of the fiscal year, largely in line with market expectations, as new operations came on stream. Shares in London-listed Vedanta, which also has operations in Zambia and Australia, were down 0.7 percent at 2,140 pence by 8:55 a.m. on Wednesday, when the FT350 mining index was up 1 percent and the FTSE 100 index was down 0.2 percent. Vedanta shares have shot up about 80 percent this year. "Production numbers were basically in line with expectations, reflecting a good performance in a tough global operating environment," Citigroup said in a research note, reiterating its "buy" rating and 2,350-pence price target. "The iron ore division was the only major area to miss production estimates, mainly due to monsoons affecting shipping." The company achieved its highest-ever quarterly production volumes in aluminium, Indian copper and zinc mining operations, a statement said. Vedanta said aluminium production for the three months to the end of September rose 25.3 percent to 99,000 tonnes. Copper cathode output in India and Zambia increased 13.8 percent to 91,000 tonnes and 29 percent to 40,000 tonnes respectively. Zinc mining production grew 15.3 percent to 143,000 tonnes while refined zinc output rose 20.5 percent to 94,000 tonnes. Iron ore output was 1.85 million tonnes, which Citigroup said was 16 percent below what it had forecast. There were no comparable year-ago figures since Vedanta acquired its iron ore operations in April. "The increase in (overall) production was primarily due to the full production from the new Korba smelter, the ramp up of the Tuticorin smelter, stabilisation of the Chanderiya smelter and the positive impact of the various initiatives taken at the Konkola operations," Vedanta said. Work on the expansion of the Chanderiya zinc smelter is ahead of schedule by three months while other expansion projects are on schedule, it added.