JOHANNESBURG (miningweekly.com) – London-listed diversified miner Vedanta Resources on Thursday reported that the expected economic growth in India was likely to underpin demand for the company’s products.

In its interim statement for the six months ended September, Vedanta stated that during the first half of 2009, the Indian economy showed tremendous resilience with metal consumption growing at yearly rates of 20% for aluminium, 25% for zinc and 20% for copper.

With the improved market conditions and significant Indian gross domestic product growth, Vadenta stated on Thursday that it has reviewed its capital expenditure plans.

COPPER

In view of rapidly growing copper consumption in India, and to significantly reduce the power cost in existing smelting operations, the company announced the expansion of its copper smelter at Tuticorin, in India, with a capacity of 400 000 t/y along with a captive power plant of 160 MW with an estimated capital expenditure (capex) of $500-million.

The project was expected to be commissioned by mid-2011.

ZINC

At its Rampura Agucha zinc mine, the expansion from five-million tons a year to six-million tons a year was progressing on schedule, with detailed engineering completed, orders placed for major equipment and equipment delivery to the site started.

Work at the 1,5-million ton Sindesar Khurd zinc mine expansion project was on schedule for progressive commissioning from mid-2010. Initial steps for opening the Kayar mine were also on schedule.

Vedanta stated that construction at the 210 000-t/y zinc smelter and the 100 000-t/y lead smelter at Rajpura Dariba was also progressing well. Equipment erection at the roaster section was completed and piping and cabling works were in progress.

Equipment erection in leaching, purification and the cell house areas of the zinc smelter were progressing well and the anode and cathode placement in cell house has started. Structural erection for the lead smelter has started and equipment has started arriving at site. The projects were on schedule for completion by mid-2010.

“We are expanding our pig-iron production capacity by 375 000 t/y with an estimated capex of $150-million to be commissioned by mid-2011. We continue to follow our established policy of stringent and conservative project appraisal,” the company said in a statement.

ALUMINIUM

Work on the first phase of the 500 000-t/y aluminium smelter and associated captive power plant at Jharsuguda, in Orissa, was also progressing well. Vadenta said in a statement that around 50% of the pots have been brought on line supported by five units of the captive power plant.

Work was ongoing and the company expected to complete commissioning of the aluminium smelter by the end of 2010.

The Jharsuguda II, 1,25-million ton-a-year aluminium smelter project in Jharsuguda was also progressing well with more than 70% of civil work completed. About 40% of equipment and materials are on site and were in various stages of installation. The project was on schedule for first metal tapping from March 2010.

At the Lanjigarh alumina refinery, the company was in a state of preparedness to start the mining of Niyamgiri bauxite on receipt of final government clearances, which were expected in the current financial year.

The three-million ton-a-year alumina refinery expansion project and the 600 000-t/y debottlenecking project at Lanjigarh were on schedule for commissioning.

The 325 000-t/y Korba aluminium project, together with an associated 1 200-MW captive thermal power plant in Korba, Chattisgarh, was also progressing well. The company noted that the construction at the 1 200-MW captive power plant site has been disrupted but at this stage the company did not anticipate a material delay in the progressive commissioning of the power plant, which was expected to generate power from October 2010.

Further, Vedanta has decided to reactivate the 1 980 MW power plant at the
Talwandi commercial power project, which was put on hold last year. The Talwandi project would be fully completed within the earlier estimated capex of $2,15-billion and is expected to be commissioned by the second-quarter of 2014.