Vedanta Resources updates on aluminium production

The Lanjigarh alumina refinery recommenced operations in July and has ramped up well, producing 181,000 tonnes in Q3. It had a capacity utilization of 72% in Q3 as compared with 46% in Q2, and is expected to further increase in the current quarter.

This resulted in 43% of the total alumina requirement in Q3 being met by the refinery as compared with 17% in Q2. The Jharsuguda-I and Korba-II smelters continued to operate above their rated capacities with a consistent cost performance. Aluminium COP at BALCO and the Jharsuguda smelter was USD 1,709 per tonne and $1,591 pertonne, compared with USD 1,939 per tonne and USD 1,928 per tonne last year, respectively. COP at Jharsuguda was lower primarily due to the depreciation of the Indian rupee, improved operational efficiencies and reduced power costs, on account of better quality of coal and lower proportion of e-auction coal.

COP at BALCO was lower primarily due to the depreciation of the Indian rupee and improved operational efficiencies partly offset by the tapering of coal linkage. EBITDA in Q3 was up 64% as compared with the corres ponding prior period mainly on account of lower COP partially offset by lower LME price.

We expect to tap first metal at the 325 ktpa BALCO- III Aluminium in H1 FY2015. We expect to synchronize the first unit of the BALCO 1,200 MW power plant in Q1 after obtaining all regulatory approvals, which are progressing well. We continue to evaluate the potential start up date of the first of four lines of the 1.25 mtpa Jharsuguda- II smelter.

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