Tweet
VEDANTA CONSIDERS COAL AND GOLD MOVES
By Rebecca Bream
Financial Times
Jun 02, 2006
Vedanta, the London-listed Indian metals group, is to move into new
markets, including coal and gold,following the successful expansion
of its zinc, copper and aluminium divisions.
Pre-tax profit at the group jumped from $386.3m to $934.7m (£500m)
for the year ending March 31, thanks to a rise in production and
soaring metals prices. Revenues rose from $1.88bn to $3.7bn.
Most of Vedanta's mines and smelters are in India but it also produced
copper in Zambia and Australia.
Anil Agarwal, founder, majority shareholder and chairman of Vedanta,
said yesterday that the group was on track to meet its annual target
of producing 1m tonnes each of zinc, copper and aluminium by 2010.
Of the group's $5bn investment programme, $3bn had already been
spent and the expansion projects were being completed on time and
under budget.
He said the next step would be into coal and possibly power stations
to capitalise on India's need for electricity.
Vedanta had applied for coal field development projects being sold
by the governments in Orissa and Chhatisgargh, and hoped to obtain
coal reserves of between 200m and 400m tonnes.
"We are also going to try to get into the power business as it is
less cyclical than mining," said Mr Agarwal. Vedanta owns coal-fired
power plants in India, which it uses to supply electricity to its
smelters. It is considering building more.
Mr Agarwal said Sterlite Gold, his Toronto-listed gold company with
gold mines in Armenia, could be sold to Vedanta to form the basis of
a gold division.
Vedanta shares fell 69p to £13.78 yesterday, in line with the rest
of the mining sector.
A final dividend of 14.3 cents (11.55 cents) gives a full-year dividend
of 20 cents (17.35 cents), payable from earnings per share of 130.2
cents (62.5 cents).
FT Comment
*Following a strong performance by Vedanta's shares in 2006, the
company is valued at about £3.8bn and is very likely to enter the FTSE
100 index next week. The stock was hit by the correction in the metals
market in May and could be a buying opportunity for anyone wanting
exposure to the company, which in turn gives exposure to India's
rising demand for commodities. Vedanta is keen to keep expanding and
possible moves into coal, power and gold should cement its status as
a significant mid-tier mining group.
--Boundary_(ID_+DDZdMVa2szlh/KihBkC6Q)--
By Rebecca Bream
Financial Times
Jun 02, 2006
Vedanta, the London-listed Indian metals group, is to move into new
markets, including coal and gold,following the successful expansion
of its zinc, copper and aluminium divisions.
Pre-tax profit at the group jumped from $386.3m to $934.7m (£500m)
for the year ending March 31, thanks to a rise in production and
soaring metals prices. Revenues rose from $1.88bn to $3.7bn.
Most of Vedanta's mines and smelters are in India but it also produced
copper in Zambia and Australia.
Anil Agarwal, founder, majority shareholder and chairman of Vedanta,
said yesterday that the group was on track to meet its annual target
of producing 1m tonnes each of zinc, copper and aluminium by 2010.
Of the group's $5bn investment programme, $3bn had already been
spent and the expansion projects were being completed on time and
under budget.
He said the next step would be into coal and possibly power stations
to capitalise on India's need for electricity.
Vedanta had applied for coal field development projects being sold
by the governments in Orissa and Chhatisgargh, and hoped to obtain
coal reserves of between 200m and 400m tonnes.
"We are also going to try to get into the power business as it is
less cyclical than mining," said Mr Agarwal. Vedanta owns coal-fired
power plants in India, which it uses to supply electricity to its
smelters. It is considering building more.
Mr Agarwal said Sterlite Gold, his Toronto-listed gold company with
gold mines in Armenia, could be sold to Vedanta to form the basis of
a gold division.
Vedanta shares fell 69p to £13.78 yesterday, in line with the rest
of the mining sector.
A final dividend of 14.3 cents (11.55 cents) gives a full-year dividend
of 20 cents (17.35 cents), payable from earnings per share of 130.2
cents (62.5 cents).
FT Comment
*Following a strong performance by Vedanta's shares in 2006, the
company is valued at about £3.8bn and is very likely to enter the FTSE
100 index next week. The stock was hit by the correction in the metals
market in May and could be a buying opportunity for anyone wanting
exposure to the company, which in turn gives exposure to India's
rising demand for commodities. Vedanta is keen to keep expanding and
possible moves into coal, power and gold should cement its status as
a significant mid-tier mining group.
--Boundary_(ID_+DDZdMVa2szlh/KihBkC6Q)--