11 OCTOBER 2015Vedanta Resources Plc. Press Release
Vedanta releases production updates for Q2 and H1 ended 30 Sept 2015
Edited by : AL CIRCLE
2 min read
Vedanta Resources Plc., the diversified metals and minerals conglomerate, announced its production results for the second quarter and half year ended 30 September 2015 on Friday, October 10. The company reported stable volumes from the existing smelters; updated on cost reduction initiatives that are currently in progress; and announced plans to ramp up production at its Jharsuguda-II smelter in Q3.
Production highlights:
- The Lanjigarh alumina refinery produced 272,000 tonnes in Q2, 20% higher than the corresponding prior quarter. The production was stable at the 500kt Jharsuguda-I and 245kt Korba-I smelters.
- The 325kt Korba-II smelter produced 19,000 tonnes during Q2 FY2016 with 83 pots operational. However, the ramp up of further pots has been temporarily put on hold due to weaker LME and premium. The high cost rolled product facility at BALCO which produced c. 46,000 tonnes in FY2015 has been temporarily closed, which will result in cost savings. We will continue to sell ingots and wire rods from BALCO.
- The 1.25 million tonnes Jharsuguda-II smelter produced 19,000 tonnes in Q2 with 80 pots operational. We are in discussions with the Government authorities for using power from the 2,400 MW power plant for further ramp up of pots of the first line of 312 kt at this smelter, and expect the ramp up to commence in Q3 FY2016.
- Due to non-availability of captive bauxite and cost optimization drive across the business, production capacity at the Lanjigarh alumina refinery has been reduced to a single stream and it will now operate at a capacity of c. 800 kt. The alumina COP for the month of September dropped by 20% to c. $299 per tonne against $340 per tonne in Q1 as a result of this optimisation.
Hot metal cost at Jharsuguda-I was at US$1,599 per tonne compared to US$1,740 per tonne in Q2 FY2015. Hot metal cost at Korba- I was at US$1,674 per tonne compared to US$2,089 per tonne in Q2 FY2015. Costs were lower mainly on account of depreciation of the Indian rupee, lower alumina and other costs. The COP at Jharsuguda was impacted by higher coal costs.
The two CPP units (300MW each) of the 1,200MW power plant at BALCO are expected to commence production in H2 FY2016.
Production highlights:
- The Lanjigarh alumina refinery produced 272,000 tonnes in Q2, 20% higher than the corresponding prior quarter. The production was stable at the 500kt Jharsuguda-I and 245kt Korba-I smelters.
- The 325kt Korba-II smelter produced 19,000 tonnes during Q2 FY2016 with 83 pots operational. However, the ramp up of further pots has been temporarily put on hold due to weaker LME and premium. The high cost rolled product facility at BALCO which produced c. 46,000 tonnes in FY2015 has been temporarily closed, which will result in cost savings. We will continue to sell ingots and wire rods from BALCO.
- The 1.25 million tonnes Jharsuguda-II smelter produced 19,000 tonnes in Q2 with 80 pots operational. We are in discussions with the Government authorities for using power from the 2,400 MW power plant for further ramp up of pots of the first line of 312 kt at this smelter, and expect the ramp up to commence in Q3 FY2016.
- Due to non-availability of captive bauxite and cost optimization drive across the business, production capacity at the Lanjigarh alumina refinery has been reduced to a single stream and it will now operate at a capacity of c. 800 kt. The alumina COP for the month of September dropped by 20% to c. $299 per tonne against $340 per tonne in Q1 as a result of this optimisation.
Hot metal cost at Jharsuguda-I was at US$1,599 per tonne compared to US$1,740 per tonne in Q2 FY2015. Hot metal cost at Korba- I was at US$1,674 per tonne compared to US$2,089 per tonne in Q2 FY2015. Costs were lower mainly on account of depreciation of the Indian rupee, lower alumina and other costs. The COP at Jharsuguda was impacted by higher coal costs.
The two CPP units (300MW each) of the 1,200MW power plant at BALCO are expected to commence production in H2 FY2016.
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