JOHANNESBURG (miningweekly.com) – London-listed Vedanta Resources has significantly boosted production at the majority of its operations, as well as its sale of electricity, in the second quarter of the 2010 financial year, while its large capital expenditure projects remain on track.

Iron-ore production increased by 27% to 3,3-million tons in the quarter ended September 30, 2009, compared with 2,6-million tons in the second quarter of the previous year, as a result of improved efficiencies at the mining operations, the company said in a statement.

Production in the first half of the financial year had reached a record 8,2-million tons, the highest Vedanta had ever achieved in the first half of any financial year.

The production of silver, which fell under the group’s zinc division, increased by 58% to 1,3-million ounces in the second quarter of the year, compared with 823 000 oz in the second quarter of the 2009 financial year. Production for the first half of the 2010 financial year was up 48% to 2,63-million ounces, compared with 1,8-million ounces the year before.

Mined zinc and lead metal production increased by 3% to 193 000 t in the second quarter of the year, and by 8% to 375 000 t in the first half of the year.

Refined zinc production grew by 16% to 141 000 t in the second quarter of the year, compared with 122 000 t the year before, while refined zinc production for the first half of the year was up by 12,5% to 280 000 t, compared with 249 000 t in the first half of the 2009 financial year.

Refined lead production increased by 8% to 14 000 t in the second quarter of the year and remained flat at 31 000 t in the first half of the year.

The commissioning of the Ramura Agucha mine expansion to six-million tons a year, compared with the current five-million tons a year, remained on track for the middle of the 2010 calendar year.

Work on the Sindesar Khurd and Kayar brownfield mining projects was also on schedule for progressive commissioning from the middle of next year, with the projects to be completed in phases up to 2012.

Construction of the 210 000-t/y zinc smelter, the 100 000-t/y lead smelter and the 160-MW captive power plant project at the Rajpura Dariba operation was progressing well and was set to be completed by the middle of 2010, the miner stated.

These projects formed part of Vedanta’s plans to boost its total integrated zinc/lead capacity to 1,06-million tons a year. It would be investing an estimated $900-million in these projects.

COPPER OUTPUT

Meanwhile, Vedanta had increased its copper cathode production at its Indian and Australian operations by 12,5% to 91 000 t in the second quarter of the year, compared with 81 000 t the year before.

Copper cathode production for the first half of the year was up 13,4% to 169 000 t, compared with 149 000 t the year before.

Mined metal copper production at the Australian operation had, however, declined to 5 200 t in the second quarter, compared with 5 600 t the year before, owing to unprecedented rainfall in August. Mining operations were expected to start ramping up again from the end of October.

A planned one-month maintenance shutdown at the new Nchanga copper smelter, in Zambia, had resulted in a 5% decline in copper cathode production in the second quarter of the year.

The smelter was ramping up to full production again, which was expected to be achieved by the end of October.

Copper cathode production at the Zambian operation had, however, increased by 7% to 78 000 t in the first half of the year.

Further, Vedanta reported that its subsidiary’s, Konkola Copper Mines’ (KCM’s) Konkola Deep Mine project was progressing well for commissioning of the midshaft loading station by March next year.

The project would increase production at the Konkola mine, in Zambia, to 7,5-million tons a year, compared with the current two-million tons a year, by accessing the orebody that lies beneath what the current operations had been exploiting.

The project, which would extend the Konkola operation’s life-of-mine by 23 years, involves the sinking of a new shaft to a depth of 1 490 m, the deepest new shaft sinking project on the African continent.

ALUMINIUM

Vedanta’s aluminium production increased by 13% to 120 000 t in the second quarter of the year, as a result of the progressive commissioning of the 500 000-t/y Jharsuguda aluminium smelter, which had contributed 56 000 t of aluminium during the quarter.

The commissioning of the smelter was expected to be completed by the end of the 2010 financial year.

Aluminium output for the first half of the year was up 19% to 245 000 t, compared with 206 000 t the year before, despite the Madras Aluminium Company and the Bharat Aluminium Company (Balco) Plant 1 smelters having shut down.

Meanwhile, the civil works of the 1,25-million tons a year Jharsuguda II aluminium smelter project, which comprised four pot lines, was more than 70% completed and would commence with first metal tapping from March next year.

The construction of the new 325 000-t/y aluminium smelter project at Balco was on schedule for first metal tapping from October 2010.

POWER SALES

Meanwhile, the miner had sold 511 units of electricity in the second quarter of the year and 981-million units in the first half of the year.

Construction work on the 2 400-MW coal-based independent thermal power plant at Jharsuguda was progressing well, with the first 600 MW unit on track to be commissioned in the last quarter of the 2010 financial year.

The three remaining 600-MW units would be commissioned by the end of the 2010 calendar year.

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