Vedanta posts a rise in lead and silver production but zinc drops

Marion Dakers
NATURAL resources group Vedanta posted a big jump in silver and lead production for the year yesterday, though its zinc and iron output fell.

Vedanta’s oil and gas production was 19 per cent higher in the year to the end of March, helped by its Cairn India subsidiary, it said in a production update.

Earlier in the week, Cairn India struck its 26th oil discovery at its Rajasthan field.

Silver output was up 69 per cent to 13.1m ounces as its SK mine continued to ramp up, while refined lead rose 26 per cent to 125,000 tonnes.

Iron ore operations were hit by suspensions of mining in Goa and Karnataka, sending annual output down 80 per cent to 3.1m dry metric tonnes.

The firm said it is awaiting court dates to challenge the suspensions.

The group said it has refinanced $810m (£529m) of convertible bond payments due at the end of the month using bank loans and existing cash.

Shares in Vedanta closed 5.65 per cent higher at 1,179p, in part thanks to positive economic trade deficit figures out in China overnight, which propelled all the FTSE mining stocks higher yesterday.