Aluminium data boosts Vedanta

Vedanta Resources, the India-based mining group, said its aluminium production had hit record levels in the past six months but its copper output had fallen. It is expanding aluminium production through several projects, including the construction of a new smelter in Jharsuguda, north-east India, and aims to produce 2.6m tonnes of the metal a year by 2012. In the six months to September 30, output was 206,000 tonnes of aluminium, up 5 per cent on the same period of 2007. Aluminium prices have fallen sharply in the past two weeks along with other metals. However, Vedanta said its production costs were relatively low and it had no plans to scale down its expansion projects. Vedanta's zinc division also did well over the period, with refined metal output rising 33 per cent to 249,000 tonnes. However, the copper division suffered a reduction in output because of problems with the Tuticorin smelter in southern India and a drop in ore grade at the Konkola mine in Zambia. Copper cathode production from Vedanta's Indian and Australian operations dropped 13 per cent to 149,000 tonnes while its Zambian operations produced 73,000 tonnes of copper cathodes, a decline of 8 per cent. The shares, which have fallen 66 per cent since their peak of £26.95 in May, jumped 68½p to 900½p on Tuesday. Source: The Financial Times Limited 2008