Lower zinc output hurts miner Vedanta revenue

London listed mining and oil company Vedanta Resources Plc's Q3 revenue fell 3 percent as an unplanned shutdown at its international zinc unit hit production.

Revenue in the quarter ended December 31 fell to USD 3.45 billion from USD 3.57 billion a year earlier. Revenue from zinc international was down 39% with overall revenue from zinc 14% lower during the quarter.

Q3 production at its zinc international business fell 19% due to a maintenance shutdown at Skorpion in Namibia in November and December after a tank failure. The unit accounts for about 5% of total revenue.

Vedanta, controlled by Indian billionaire Mr Anil Agarwal said that group core earnings or earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 3 percent to USD 1.14 billion with oil and gas as the key contributor. Core earnings from the oil and gas unit, which accounts for about 22% of revenue, rose 1% to USD 615.7 million.

The miner also said that it was ramping up iron ore production in the southern Indian state of Karnataka to a run rate of around 0.5 million tonnes per month, and expected to commence sales through auctions shortly. Vedanta resumed mining iron ore in Karnataka in December following clearance from a court-appointed panel.

The company simplified its byzantine structure last year when it overhauled its web of subsidiaries and created Sesa Sterlite an umbrella unit that groups most of its assets.