Vedanta digs deep to boost mined metals production

 
Courtney Goldsmith
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Zinc is used to galvanise steel (Source: Getty)

India-based miner Vedanta Resources boosted its metal production in the first half of the year thanks to higher output across its mines.

The figures

Mined metal content at the firm's zinc India unit rose 42 per cent to 452,000 tonnes in the six months to the end of September compared with the previous year.

Refined zinc production rose 53 per cent in the period while refined lead output rose 32 per cent.

Silver production also shot up 30 per cent to 8.2m ounces in the first half.

Shares in the FTSE 250 firm fell 3.26 per cent to 875.5p in afternoon trading.

Read more: Vedanta Resources has named an interim chief executive

Why it's interesting

The company, which mines zinc in the western Indian state of Rajasthan, was boosted by rising demand for zinc in China, which is the world's top steel producer.

Zinc is used to galvanise steel to protect it from rusting.

Vedanta has benefited from rising zinc prices as China ramps up construction. London zinc prices have risen around 23 per cent this year.

What Vedanta Resources said

Kuldip Kaura, who is serving as interim chief executive after Tom Albanese stepped down earlier this year, said: "During the quarter, our zinc, copper India and aluminium businesses have delivered a strong production performance. We have also commenced our growth journey on both the exploration and development front in our oil & gas business. We are continuing to realise operational efficiencies across our diversified portfolio and to benefit from a supportive market environment."

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