Vedanta zinc India production update for Q4

Time:Mon, 16 Apr 2018 05:08:01 +0800

keywords :

Vedanta announced that in Q4 FY2018 it recorded the highest ever production of mined metal from underground mines. The total mined metal production in Q4 FY2018 was 255,000 tonnes, up 6%QoQ and down 18% YoY. The sequential increase was due to higher ore grades while the YoY. decrease was driven primarily by decline in overall ore grades due to mine mix.

Integrated zinc metal production was 206,000 tonnes, 3% higher QoQ and 4% lower YoY. in line with availability of mined metal. The Company recorded highest ever lead and silver metal production during the quarter. Integrated lead metal production was at 50,000 tonnes, 9% higher QoQ and 11% higher YoY. on account of higher smelter efficiency. Integrated silver production was at 170 tonnes, up 28% sequentially on higher silver grades and conversion of inventory and up 22% y-o-y in line with higher production from Sindesar Khurd mine.

The underground production at Rampura Agucha continues to ramp up strongly and it achieved an ore production run-rate of 3.0 million tonne per annum during the quarter. The south ventilation shaft system was commissioned during the quarter. Off shaft development is on track and production is expected to start in Q3 FY2019.

During the quarter, Sindesar Khurd’s main shaft was equipped and winder installation work commenced. Production from the shaft is expected to start as per schedule in Q3 FY2019. Civil and structure erection for the new 1.5 million tonne per annum mill is ongoing and is expected to be commissioned in Q2 FY2019. During the quarter, orders were placed for paste fill plants for both Rampura Agucha and Sindesar Khurd mines.

MoEF has given environmental clearance for expansion of ore production at Kayad mine from 1.0 to 1.2 million tonne per annum. At Zawar mine, civil construction work for the new 2.0 mtpa mill is progressing well with commissioning expected by Q4 FY2019. The Fumer project is progressing as per schedule and expected to commission in mid-FY2019.

We are on track for ramp up of mined metal production to 1.2 mt by FY2020.

Financial Year 2018 vs. Financial Year 2017

The production of mined metal and refined metal for the year were the highest ever and in line with guidance provided at the beginning of the year.

Mined metal production for FY2018 was 947,000 tonnes, 4% higher YoY. This was driven by higher ore production from underground mines, partly offset by lower open- cast mine production and ore grades.

Integrated zinc, lead and silver production were higher by 18%YoY, 21% YoY and 23% YoY respectively, in line with consistent availability of mined metal.

Heading	Q4'18	Q4'17	YoY	Q3'18	QoQ	FY2018	FY2017	YoY
Mined metal content	255	312	-18.00%	240	6.00%	947	907	4.00%
Refined Zinc Integrated	206	215	-4.00%	200	3.00%	791	672*	18.00%
Refined Lead - Integrated 2	50	45	11.00%	46	9.00%	168	139	21.00%
Silver - Integrated (in tonnes) 3	170	139	22.00%	132	28.00%	558	453	23.00%

In ‘000 tonnes