Indian-focused mining group Vedanta posted higher fourth-quarter output on Thursday of its two most profitable products, zinc and iron ore, and said it had shut down some aluminium and copper operations to cut costs.
Weak metals prices have forced many mining groups to close down unprofitable operations and Vedanta said it had taken action recently.
"As part of our focus on improving profitability and cash flow, we completely ramped down the MALCO smelter in mid December 2008 and shut down a part of the BALCO Plant I smelter in Q4 2009 due to higher operational costs," a statement said.
"Consequently, we are selling surplus power to maximise returns."
Despite the shutdowns, London-listed Vedanta said fourth quarter aluminium production increased 31.4 percent to a record 134,000 tonnes, mainly due to the ramp-up of its new Jharsuguda smelter in India.
Refined zinc output for the three months to end March rose 11.9 percent to a record 151,000 tonnes, while iron ore production gained 4.1 percent to 4.9 million tonnes.
Zinc and iron ore are Vedanta's most important minerals, accounting for 39 percent and 32 percent of core profit for the first nine months of the fiscal year.
Copper cathode output in India fell 2.2 percent to 88,000 tonnes while copper cathode production in Zambia rose 2.9 percent to 35,000 tonnes.
Vedanta announced on Feb. 19 that its Zambian unit Konkola Copper Mines had shut down its Nkana copper smelter to cut costs.
On Thursday, Vedanta said a furnace leak at its new Nchanga smelter in Zambia had caused a disruption earlier this month.
"Based on our initial assessment, production is expected to be resumed in a three-four week timeframe," it said.
Vedanta, however, said expansion projects were progressing on schedule and within budget.
The global downturn has hammered metals prices, sending copper MCU3 down 50 percent and aluminium MAL3 55 percent from their peaks last year.
Source: Reuters
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