Vedanta's oil, copper, aluminium output up; iron ore, zinc down

Diversified conglomerate Vedanta Resources today reported a significant increase in production of oil, copper, aluminium, lead and silver in 2012-13, but its iron ore, zinc and alumina output showed a marked decline.

While company's iron ore output was down to zero during the second half of the fiscal year due to a mining ban in Goa and Karnataka, its production of zinc and alumina registered negative growth rates of 11 per cent and 43 per cent respectively in FY'13.

In a statement, the company said its iron ore production, operated through subsidiary Sesa Goa, declined 73 per cent during the last fiscal year to 3.7 million tonnes (MT). Its iron ore operations at Karnataka are already closed for more than a year and half due to a Supreme Court imposed ban.

"Iron ore operations continue to be affected by suspension of mining in Goa and Karnataka. At Karnataka, the matter for reopening of Category A and B mines has been heard by the Supreme Court and the order has been reserved and is expected to be announced soon," it said.

The company added that it has refinanced $810 million for one of its maturing convertible bonds, which is due for payment on April 29.

Besides, Vedanta's refined zinc production, managed through Hindustan Zinc Ltd (HZL), was down 11 per cent at 6,77,000 tonnes in FY13. Production of lead and silver, which is also done by HZL, were up 26 per cent and 69 per cent respectively.

The Anil Agrawal-led firm, however, reported a 19 per cent growth in its crude oil production at 2,05,323 barrels of oil equivalent per day (boepd) last fiscal year.

Cairn India, the oil producing arm of Vedanta, increased its crude oil production from its prolific Barmer block by 32 per cent in 2012-13 at 1,69,390 boepd.

Besides, Vedanta's production of copper from its India and Australia division was up 15 per cent at 26,000 tonnes in FY13, while integrated production at its Konkola Copper Mines, Zambia, increased by 16 per cent at 1,60,000 tonnes.

Moreover, its aluminium production was also up 15 per cent at 7,74,000 tonnes during the year as company's Jharsugda-I and Korba-II smelters operated above their rated capacities.

Vedanta's alumina production was down 43 per cent in FY13 at 5,27,000 tonnes due to closure of its Lanjigarh refinery in Odisha in December last year. The refinery was closed due to non-availability of the bauxite, the key raw material for producing alumina.

"We remain engaged with the Odisha state authorities for allocation of bauxite as per our existing MoU with the Odisha state government. Separately, we are working on obtaining bauxite supplies for the refinery from other sources including our captive mines at BALCO, in order to restart the refinery operations," it said.

Besides, its power sales were 36 per cent higher at 8,888 million units during the year. The increase was primarily due to higher power generation and sales from three units of the Jharsuguda 2,400MW power plant.

The company is also hoping to synchronise the first unit of its Talwandi Sabo power project during the second quarter of the current fiscal year.