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Vedanta says Indian zinc, iron ore output fall in Q2

Source : REUTERS
Last Updated: Tue, Oct 09, 2012 07:20 hrs
A bird flies by the Vedanta office building in Mumbai

LONDON (Reuters) - Miner Vedanta posted a 9 percent drop in metal mined from its Indian zinc operations in its second quarter, and said that saleable iron ore output plunged 86 percent, hit by mining bans and monsoon travel restrictions.

Its zinc India business accounted for over a quarter of Vedanta's earnings in its last financial year, with iron ore and oil and gas the second and third biggest earners respectively.

Vedanta's iron ore production has been hit by a ban on mining in the Indian state of Karnataka for over a year, and a more recent temporary restriction on extracting in Goa, where monsoons have also hindered transport in this quarter.

The company said it now expected to be able to restart mining in Karnataka once it received Supreme Court approval, as some mining was allowed to resume in the state, while in Goa it said it was working closely with the authorities to try to complete a review.

Mined metal production at its zinc India business was expected to rise in its second half, Vedanta said, meaning that full-year production was on course to be higher than the previous year.

The company, which bought a stake in Rajasthan oil firm Cairn India in 2011, said its oil and gas working interest production rose 30 percent in the period.

In aluminum, production fell 10 percent in the quarter due to the lower supply of bauxite from third parties.

(Reporting by Sarah Young; Editing by Paul Sandle)



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