Sesa Sterlite Limited Production Release for the Second Quarter and Half Year Ended 30 September 2013

  Sesa Sterlite Limited Production Release for the Second Quarter and Half
  Year Ended 30 September 2013

Q2 Highlights

  *Record oil & gas production
  *Increased production of refined zinc, lead and silver at Zinc India
  *Merger of Sterlite Industries (India) Limited and Sesa Goa Limited, and
    Vedanta Group consolidation completed; merged company named “Sesa Sterlite
    Limited”

Business Wire

MUMBAI, India -- October 9, 2013

Sesa Sterlite Limited (NYSE:SSLT):

Zinc - India
                                                 
              Q2                           Q1       H1
Particulars                                                            %
(in ’000       FY2014  FY2013  % change   FY2014   FY2014  FY2013  change
tonnes, or                       YoY                                   YoY
as stated)
ZINC INDIA
Mined metal    222      190      16   %     238      459      377      22   %
content
Refined Zinc   196      163      21   %     174      370      324      14   %
– Total
Refined Zinc   195      153      28   %     173      368      310      19   %
– Integrated
Refined Zinc   1        10       (84  %)    1        2        14       (83  %)
– Custom
Refined Lead   32       27       17   %     33       64       58       11   %
- Total^1
Refined Lead   31       24       29   %     29       60       53       13   %
– Integrated
Refined Lead   1        3        (64  %)    3        4        5        (13  %)
– Custom
Saleable
Silver -
Total          90       84       7    %     96       186      157      18   %
(in
tonnes)^2
Saleable 
Silver -       84       73       14   %     77       160      143      12   %
Integrated
(in tonnes)
Saleable
Silver –       6        11       (44  %)    19       26       14       85   %
Custom
(in tonnes)
                                                                       

Mined metal production increased by 16% in Q2 and 22% in H1, as compared with
the corresponding prior periods respectively, and we expect to deliver
approximately 950 kt of mined metal production during the year.

Due to a significant improvement in the operational efficiency of smelters,
integrated production of refined zinc, lead and saleable silver increased by
28%, 29% and 14%, respectively, in Q2, as compared with the corresponding
prior quarter.

The Kayad and Rampura Agucha underground mine projects are progressing well to
deliver commercial production in this fiscal year.

Zinc International
                                                  
               Q2                           Q1         H1
Particulars                       %                                       %
(in ’000        FY2014  FY2013  change     FY2014     FY2014  FY2013  change
tonnes, or as                     YoY                                     YoY
stated)
Zinc            106      114      (6  %)     90         196      220      (11 %)
International
Zinc -refined   35       37       (5  %)     34         69       73       (5  %)
Mined metal
content - BMM   71       77       (7  %)     56         127      147      (14 %)
and Lisheen
                                                                              

Total production of refined zinc and mined zinc-lead metal in concentrate
(MIC) increased to 106,000 tonnes in Q2 as compared with 90,000 tonnes in Q1,
as the operations stabilised after the disruptions at Lisheen and BMM in Q1.
In line with earlier guidance, we expect to produce around 390 kt of refined
zinc and mined zinc-lead metal in concentrate in FY2014.

Oil and Gas
                                                 
               Q2                          Q1       H1
                                   %                                    %
Particulars     FY2014   FY2013  change   FY2014   FY2014   FY2013  change
                                   YoY                                  YoY
OIL AND GAS
(boepd)
Average Daily
Gross
Operated        213,299   -        -        -        212,873   -        -
Production
(boepd)
Rajasthan       175,478   -        -        -        174,503   -        -
Ravva           29,151    -        -        -        28,704    -        -
Cambay          8,671     -        -        -        9,666     -        -
Average Daily
Working
Interest        132,862   -        -        -        132,477   -        -
Production
(boepd)
Rajasthan       122,835   -        -        -        122,152   -        -
Ravva           6,559     -        -        -        6,458     -        -
Cambay          3,468     -        -        -        3,866     -        -
Total Oil and
Gas (million
boe)
Oil & Gas-      7.60      -        -        -        7.60      -        -
Gross
Oil &
Gas-Working     4.77      -        -        -        4.77      -        -
Interest
                                                                        

Note: Sesa Sterlite acquired a 38.7% stake in Cairn India Limited, effective
26th August 2013. This has increased the company’s stake in Cairn India from
20.1% to 58.8%. The average daily gross operated and working interest
production numbers in the table above are for the complete quarter and half
year. The total oil and gas production (in million boe) in the table above are
for the period from 26 August 2013.

In Q2, average gross operated production and working interest production were
213,299 barrels of oil equivalent per day (boepd) and 132,862 boepd
respectively. The gross production at the Rajasthan block was 175,478 boepd.

Exploration drilling continues in the Rajasthan block with the current program
targeting half of the 530 million barrels of gross recoverable risked
prospective resource base, including considerable deep gas prospects in this
fiscal year.

Iron Ore
                                                  
               Q2                           Q1       H1
Particulars
(in million                       % change                              %
dry metric      FY2014  FY2013  YoY        FY2014   FY2014  FY2013  change
tonnes, or as                                                           YoY
stated)
IRON ORE^3
Sales           -        0.2      -         -        -        3.1      -   
Goa             -        0.2      -         -        -        3.0      -   
Karnataka^4     -        0.0      -         -        -        0.1      -   
Production of   -        0.4      -         -        -        3.7      -   
Saleable Ore
Goa             -        0.4      -         -        -        3.7      -   
Karnataka       -        0.0      -         -        -        0.0      -   
Production
(‘000 tonnes)
Pig Iron        129      82       57   %     110      238      121      97  %
Met Coke        88       83       6    %     85       173      146      18  %
                                                                            

During H1, our iron ore operations in Goa and Karnataka continued to be
suspended. Following the lifting of restriction on mining in Karnataka by the
Supreme Court, we are now awaiting final statutory clearances to restart
mining. We expect to resume mining in Karnataka shortly. Regarding the
suspension of mining in Goa, the hearings have commenced at the Supreme Court.

Production of pig iron and metallurgical coke were 57% and 6% higher at
129,000 tonnes and 88,000 tonnes, respectively, as compared with the
corresponding prior period due to the new capacities that were commissioned in
Q2 FY2013.

Copper - India and Australia
                                                 
              Q2                           Q1       H1
Particulars                                                            %
(in ’000       FY2014  FY2013  % change   FY2014   FY2014  FY2013  change
tonnes, or                       YoY                                   YoY
as stated)
COPPER-
INDIA /
AUSTRALIA
Copper -
Mined metal    6        6        (4   %)    6        12       13       (8   %)
content
Copper -       82       87       (5   %)    16       98       175      (44  %)
Cathodes
Tuticorin
power sales    158      -        -         137      295      -        -    
(million
units)
                                                                            

Following a temporary closure in Q1, the smelter had restarted in end June and
is now operating at full capacity. Copper cathode production was 82,000 tonnes
in Q2 and 98,000 tonnes in H1. However, the copper anode production in Q2 was
90,000 tonnes, in line with the rated capacity.

Mined metal production at our Australia mine was 6,000 tonnes in Q2.

Aluminium
                                                    
                   Q2                         Q1       H1
Particulars(in                        %                                   %
’000 tonnes, or     FY2014  FY2013  change   FY2014   FY2014  FY2013  change
as stated)                            YoY                                 YoY
ALUMINIUM
Alumina-Lanjigarh   116      205      (43 %)   0        116      423      (73 %)
Total Aluminum      200      197      2   %    195      395      382      3   %
Production
Jharsuguda-I        137      134      2   %    134      271      259      5   %
Korba-II            63       63       1   %    61       124      123      1   %
                                                                              

The Lanjigarh alumina refinery recommenced operations in July and produced
116,000 tonnes in Q2. During Q2, the refinery supplied 17% of the alumina
consumed by our smelters as compared with 100% import of alumina feed by the
smelters in Q1. We expect the refinery to ramp-up to its rated capacity in Q3
FY2014.

In Q2, the Jharsuguda-I and Korba-II smelters continued to operate above their
rated capacities. Around 60% of the total production was converted into value
added products in Q2, in line with the corresponding prior period.

We expect to tap the first metal at 325 ktpa BALCO-III Aluminium smelter in Q3
FY2014. Having obtained the forest clearance for the BALCO coal block, we
expect to commence mining in Q1 FY2015. We continue to evaluate the potential
start-up date of the 1.25 mtpa Jharsuguda smelter.

Power
             Q2                          Q1      H1
Particulars                                                            %
(in million    FY2014  FY2013  % change   FY2014   FY2014  FY2013  change
units)                           YoY
                                                                       YoY
POWER
Total Power    1,910    2,695    (29  %)    3,177    5,087    5,364    (5   %)
Sales
Jharsuguda     1,494    1,940    (23  %)    2,604    4,098    3879     6    %
2,400 MW^5
BALCO 270 MW   44       346      (87  %)    187      231      684      (66  %)
MALCO          221      221      -         224      445      431      3    %
HZL Wind       151      188      (20  %)    162      313      370      (15  %)
Power
                                                                            

Power sales were lower at 1,910 million units in Q2 and 5,087 million units in
H1, primarily due to lower power sales from Jharsuguda 2,400MW power plant
which operated in Q2 at a PLF of 31% for all four units as compared with 41%
for three units during the corresponding prior period. The lower PLF at
Jharsuguda and BALCO 270 MW was largely on account of lower demand.

Work at the Talwandi Sabo power project is progressing well and the first unit
is expected to be synchronized in Q3 FY2014.

Production Summary (Unaudited)
(in ’000 tonnes, except as stated)
                                                  
                 Q2                           Q1      H1
Particulars                FY      % change   FY                FY      %
                 FY 2014  2013   YoY        2014    FY 2014  2013   change
                                                                        YoY
Zinc India
Mined metal      222       190     16   %     238     459       377     22  %
content
Refined Zinc –   196       163     21   %     174     370       324     14  %
Total
Refined Zinc -   195       153     28   %     173     368       310     19  %
Integrated
Refined Zinc –   1         10      (84  %)    1       2         14      (83 %)
Custom
Refined Lead -   32        27      17   %     33      64        58      11  %
Total^1
Refined Lead -   31        24      29   %     29      60        53      13  %
Integrated
Refined Lead –   1         3       (64  %)    3       4         5       (13 %)
Custom
Saleable
Silver - Total   90        84      7    %     96      186       157     18  %
(in tonnes)^2
Saleable 
Silver -         84        73      14   %     77      160       143     12  %
Integrated
(in tonnes)
Saleable
Silver –         6         11      (44  %)    19      26        14      85  %
Custom
(in tonnes)
Zinc             106       114     (6   %)    90      196       220     (11 %)
International
Zinc –refined    35        37      (5   %)    34      69        73      (5  %)
Skorpion
Mined metal
content- BMM     71        77      (7   %)    56      127       147     (14 %)
and Lisheen
Oil and Gas
Average Daily
Gross Operated   213,299   -       -         -       212,873   -       -   
Production
(boepd)
Rajasthan        175,478   -       -         -       174,503   -       -   
Ravva            29,151    -       -         -       28,704    -       -   
Cambay           8,671     -       -         -       9,666     -       -   
Average Daily
Gross Operated   132,862   -       -         -       132,477   -       -   
Production
(boepd)
Rajasthan        122,835   -       -         -       122,152   -       -   
Ravva            6,559     -       -         -       6,458     -       -   
Cambay           3,468     -       -         -       3,866     -       -   
Total Oil and
Gas (million
boe)
Oil & Gas –      7.60      -       -         -       7.60      -       -   
Gross
Oil & Gas -
Working          4.77      -       -         -       4.77      -       -   
Interest
Iron Ore^3 (in
million dry
metric tonnes,
or as stated)
Sales            -         0.2     -         -       -         3.1     -   
Goa              -         0.2     -         -       -         3.0     -   
Karnataka^4      -         0.0     -         -       -         0.1     -   
Production of    -         0.4     -         -       -         3.7     -   
Saleable Ore
Goa              -         0.4     -         -       -         3.7     -   
Karnataka        -         0.0     -         -       -         0.0     -   
Production
(‘000 tonnes)
Pig Iron         129       82      57   %     110     238       121     97  %
Met Coke         88        83      6    %     85      173       146     18  %
                                                                            

              Q2                          Q1      H1
Particulars    FY       FY       % change   FY       FY       FY       %
               2014    2013    YoY        2014     2014    2013    change
                                                                       YoY
Copper -
India /
Australia
Copper -
Mined metal    6        6        (4   %)    6        12       13       (8   %)
content
Copper -       82       87       (5   %)    16       98       175      (44  %)
Cathodes
Tuticorin
power sales    158      0                  137      295      0        
(million
units)
Alumina
Lanjigarh      116      205      (43  %)    0        116      423      (73  %)
Aluminium
Total
Aluminum       200      197      2    %     195      395      382      3    %
Production
Jharsuguda     137      134      2    %     134      271      259      5    %
Korba II       63       63       1    %     61       124      123      1    %
Power (in
million
units)
Total Power    1,910    2,695    (29  %)    3,177    5,087    5,364    (5   %)
Sales
Jharsuguda     1,494    1,940    (23  %)    2,604    4,098    3,879    6    %
2,400 MW ^ 5
Balco 270 MW   44       346      (87  %)    187      231      684      (66  %)
MALCO          221      221      -         224      445      431      3    %
HZL Wind       151      188      (20  %)    162      313      370      (15  %)
Power
                                                                            

1.Includes captive consumption of 3,344 tonnes in H1 FY 2014 vs 3,076 tonnes
    in H1 FY 2013, and 1,700 tonnes in Q2 FY 2014 vs 1,435 tonnes in Q2 FY
    2013.
2.Excludes captive consumption of 18 tonnes in H1 FY 2014 vs 16 tonnes in H1
    FY 2013, and 9 tonnes in Q2 FY 2014 vs 8 tonnes in Q2 FY 2013.
3.Iron Ore sales include internal consumption of nil tonnes in H1 FY2014 vs
    0.18 million tonnes in H1 FY2013 and nil tonnes in Q2 FY2014 vs 0.12
    million tonnes in Q2 FY2013.
4.Sales of iron ore from Karnataka were 0.02 million tonnes in H1 FY2014 vs
    0.06 million tonnes in H1 FY2013 and nil tonnes in Q2 FY2014 vs 0.01
    million tonnes in Q2 FY2013.
5.Includes production under trial run of Nil units in H1 FY2014 vs. 339
    million units in H1 FY2013 and Nil units in Q2 FY2014 vs 138 million units
    in Q2 FY2013.

Note: Sesa Sterlite acquired a 38.7% stake in Cairn India Limited, effective
26th August 2013. This has increased the company’s stake in Cairn India from
20.1% to 58.8%. The average daily gross operated and working interest
production numbers in the table above are for the complete quarter and half
year. The total oil and gas production (in million boe) in the table above are
for the period from 26 August 2013.

About Sesa Sterlite Limited

Sesa Sterlite Limited (“Sesa Sterlite”) is one of the world’s largest
diversified natural resource companies. Our business primarily involves
exploring, extracting and processing minerals and oil & gas. We produce oil &
gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power and
have a presence across India, South Africa, Namibia, Ireland, Australia,
Liberia and Sri Lanka. Sesa Sterlite has a strong position in emerging markets
with over 80% of its revenues from India, China, East Asia, Africa and the
Middle East.

Sustainability is at the core of Sesa Sterlite’s strategy, with a strong focus
on health, safety and environment and on enhancing the lives of local
communities.

Sesa Sterlite is a subsidiary of Vedanta Resources Plc, a FTSE 100 company.
Sesa Sterlite is listed on the Bombay Stock Exchange and the National Stock
Exchange in India and has ADRs listed on the New York Stock Exchange.

Disclaimer

This press release contains “forward-looking statements” – that is, statements
related to future, not past, events. In this context, forward-looking
statements often address our expected future business and financial
performance, and often contain words such as “expects,” “anticipates,”
“intends,” “plans,” “believes,” “seeks,” “should” or “will.” Forward–looking
statements by their nature address matters that are, to different degrees,
uncertain. For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in interest
and or exchange rates and metal prices; from future integration of acquired
businesses; and from numerous other matters of national, regional and global
scale, including those of a political, economic, business, competitive or
regulatory nature. These uncertainties may cause our actual future results to
be materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking statements.

Contact:

Investors
Sesa Sterlite Limited
Ashwin Bajaj
Senior Vice President – Investor Relations
+91 22 6646 1531
sesasterlite.ir@vedanta.co.in
 
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