Vedanta Resources updates aluminum production for Q3 2011

 

 

Aluminum production in Q3 was 170,000 tonnes which includes production of 107,000 tonnes at VAL Jharsuguda and 63,000 tonnes at BALCO. The Lanjigarh refinery has ramped up well and the alumina production at Lanjigarh was a record 236,000 tonnes and 687,000 tonnes during Q3 and the 9 month period respectively.

 

 

Cost performance at VAL Jharsuguda improved over Q2 which previously had higher costs due to the pot outage in Q1 and a heavy monsoon in the coal mining areas during Q2. COP of hot metal produced at VAL Jharsuguda was INR 103,130 per tonne as compared with INR 117,045 per tonne in the preceding quarter. COP of hot metal produced at BALCO was stable in Rupee terms at INR 96,170 per tonne as compared with INR 97,588 per tonne in the preceding quarter.

 

 

EBITDA in Q3 was USD 3.6 million, significantly lower than the USD 76.3 million in the corresponding prior quarter, primarily due to lower LME prices and mark to market losses on foreign currency borrowings for working capital on account of the depreciation of the Indian Rupee.

 

 

The first metal tapping from the 325 kilo tonne per annum aluminum smelter at Korba is now scheduled for Q2 FY 2012 to 2013. The first unit of the 4x300 MW captive power plant at BALCO will be synchronized in Q1 FY 2012 to 2013. The 211 MT coal block at BALCO received approval from the Environment Appraisal Committee in November 2011 and we continue to work towards obtaining the remaining approvals.