Vedanta Posts Higher Q4 Output

Indian-focused mining group Vedanta posted higher fourth-quarter output on Thursday of its two most profitable products, zinc and iron ore, and said it had shut down some aluminium and copper operations to cut costs.
Weak metals prices have forced many mining groups to close down unprofitable operations and Vedanta said it had taken action recently.
"As part of our focus on improving profitability and cash flow, we completely ramped down the MALCO smelter in mid December 2008 and shut down a part of the BALCO Plant I smelter in Q4 2009 due to higher operational costs," a statement said.
"Consequently, we are selling surplus power to maximise returns."
Despite the shutdowns, London-listed Vedanta said fourth quarter aluminium production increased 31.4% to a record 134,000 tons, mainly due to the ramp-up of its new Jharsuguda smelter in India.
Refined zinc output for the three months to end March rose 11.9% to a record 151,000 tons, while iron ore production gained 4.1% to 4.9 million tons.
Zinc and iron ore are Vedanta's most important minerals, accounting for 39% and 32% of core profit for the first nine months of the fiscal year.
Copper cathode output in India fell 2.2% to 88,000 tons while copper cathode production in Zambia rose 2.9% to 35,000 tons.
Vedanta announced on 19 February that its Zambian unit Konkola Copper Mines had shut down its Nkana copper smelter to cut costs.
On Thursday, Vedanta said a furnace leak at its new Nchanga smelter in Zambia had caused a disruption earlier this month.
"Based on our initial assessment, production is expected to be resumed in a three-four week timeframe," it said.
Vedanta, however, said expansion projects were progressing on schedule and within budget.
The global downturn has hammered metals prices, sending copper down 50% and aluminium 55% from their peaks last year.
On 28 January, Vedanta Resources posted a 98.5% fall in third-quarter core profit due to weak metals prices, inventory writedowns and currency losses.
Vedanta shares, which have gained 26% so far this year, closed at 773 pence on Wednesday