Vedanta Resources aluminium production report for Q2 and H1

Vedanta Resources’ aluminum production in Q2 was 120,000 tonnes, 13% higher than the corresponding prior period due to the progressive commissioning of the 500 kilo tonne per annum Jharsuguda aluminum smelter. The new smelter contributed 56,000 tonnes during the quarter. The Phase II of 250 kilo tonne per annum aluminum smelter of the 500ktpa Jharsuguda aluminum smelter is under commissioning for completion by end FY2010. Production in the half year ended September 30th 2009 was 245,000 tonnes significantly higher than the corresponding prior period despite the complete ramp down of the MALCO and BALCO Plant I smelters. The Lanjigarh alumina refinery produced 190,000 tonnes of calcined alumina in Q2 and 378,000 tonnes in H1 significantly higher than 114,000 tonnes and 250,000 tonnes respectively in the corresponding prior periods. Current production levels largely meet our requirements of alumina. The Korba alumina refinery was ramped down consequent to the shut down of the BALCO Plant 1 smelter. We will be in a position to commence the mining of Niyamgiri bauxite on receipt of final government clearances, now expected in the current financial year. Construction of the 1.25 million tonne per annum Jharsuguda II aluminum smelter project consisting of 4 pot lines is progressing well with more than 70% of civil works completed. The project is on schedule for first metal tapping from March 2010. Progress on the 3 million tonne per annum alumina refinery expansion project and the 0.6 million tonne per annum de bottlenecking project at Lanjigarh is on schedule. Construction of the new 325 kilo tonne per annum aluminum smelter project at BALCO is also progressing well and on schedule for first metal tapping from October 2010. Production Results for the Q2 ended September 30th 2009 power plant project site has been disrupted following a tragic collapse of a chimney under construction in September 2009 during heavy rains and lightning at Korba. A detailed study is underway to determine the exact cause of the accident. At this stage we do not anticipate a material delay in the progressive commissioning of the power plant.