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Vedanta Second-Quarter Copper, Zinc Output Rises; Aluminum Falls

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By Firat Kayakiran

Vedanta Resources Plc (VED), the largest copper producer in India, said fiscal second-quarter output at its Tuticorin smelter rose 28 percent while aluminum production fell 8 percent.

Tuticorin’s copper-cathode output jumped to 87,000 metric tons in the quarter ended Sept. 30 from 68,000 a year earlier, Vedanta said today in a statement. Mined zinc metal production rose 2 percent to 210,000 tons, while aluminum output fell 8 percent to 149,000 tons.

London-based Vedanta is in the final stage of completing its purchase of a majority stake in Cairn India Ltd., which will give it access to India’s biggest onshore oil deposit.

Cairn India shareholders and Oil & Natural Gas Corp., its partner in the oil fields, approved Vedanta’s acquisition, the company said.

“With deal closure, envisaged by the end of the month, Vedanta will reach a key landmark in delivering transformational earnings to drive rapid deleveraging,” Liberum Capital Ltd. said in a note today.

Iron ore production declined 61 percent to 1.12 million tons in the quarter after India’s Karnataka state imposed an export ban in a bid to curb price increases for local steelmakers. Vedanta’s sales of the steelmaking material decreased to 1.55 million tons from 1.82 million tons, it said.

Production of copper cathode in Zambia declined 10 percent 52,000 tons, Vedanta said.

Vedanta was little changed at 1,112 pence as of 10.01 a.m. in London.