Vedanta Q1 aluminium output up 46%; iron ore output falls

Aluminium production was 23% higher at 173,000 tonnes in Q1 FY2011-12 ascompared with the corresponding prior quarter primarily due to 46% higher production at the 500 ktpa Jharsuguda-I smelter. The Korba-II smelter continues to operate at its rated capacity.

Due to a power outage at the Jharsuguda-I smelter in June 2011, around 170 pots were affected. Production will be lower in Q2 and Q3 FY2011-12 and the plant is expected to return to normal capacity by the end of Q3 FY2011-12.

The Lanjigarh refinery produced 224,000 tonnes of alumina as compared with 204,000 tonnes in the corresponding prior quarter, with bauxite from BALCO and third party purchases.

EBITDA was significantly higher at US$ 101.9mn due to higher volumes and prices, partially offset by increased prices of bought-out alumina, coal and petroleum.

The first unit of the BALCO 1,200 MW (4x300 MW) captive power plant project at Korba is expected to be synchronized in Q2 FY2011-12. Work at the 325 kt aluminium smelter project at Korba is progressing well, and we are targeting first metal tapping in Q4 FY2011-12.

The 1.25 mtpa Jharsuguda-II smelter project is in final stages of completion, and we continue to evaluate the option of selling power versus producing aluminium at this smelter.