Sesa Sterlite Limited: Production Release for the Fourth Quarter and Full Year Ended 31 March 2014

Sesa Sterlite Limited: Production Release for the Fourth Quarter and Full Year
                             Ended 31 March 2014

  PR Newswire

  MUMBAI, India, April 10, 2014

MUMBAI, India, April 10, 2014 /PRNewswire/ --



Sesa Sterlite Limited ("Sesa Sterlite" or "the Company") today announced its
production results for the fourth quarter (Q4) and Full Year ended 31 March
2014.

 (Logo: http://photos.prnewswire.com/prnh/20140117/663814 )

Highlights of the Quarter 

  *Full year record production of Oil & Gas, driven by production ramp-up in
    Rajasthan block
  *Higher integrated refined metal production and stable mined metal
    production for the full year at Zinc India
  *First metal tapping at the BALCO 325kt aluminium smelter during Q4
  *Strong utilizations at Tuticorin copper smelter; 2 ^nd 80MW unit of power
    plant commissioned during Q4

Zinc - India Business 


                                          Q4             Q3            Full Year
    Particulars (in '000
    tonnes, or as             FY2014  FY2013 % change  FY2014  FY2014     FY2013 % change
    stated)                                       YoY                                 YoY


    ZINC INDIA
    Mined metal content          200     260    (23%)     220     880        870       1%
    Concentrate Sales - Zinc
    (MIC)                          -      61        -       -       -         61        -
    Refined Zinc - Total         182     182        -     196     749        677      11%
    Refined Zinc -
    Integrated                   179     181     (1%)     196     743        660      13%
    Refined Zinc - Custom          4       0        -       -       6         17        -
    Refined Lead - Total [1]      38      35     10%       27     130        125       4%
    Refined Lead -
    Integrated                    31      32     (2%)      27     118        107      10%
    Refined Lead - Custom          7       3        -       -      12         18        -
    Saleable Silver - Total
    (in tonnes) [2]               91     108    (16%)      73     350        374      (6%)
    Saleable Silver -
    Integrated
    (in tonnes)                   68      91    (25%)      72     301        288       4%
    Saleable Silver - Custom
    (in tonnes)                   23      17     34%        1      49         86     (43%)

Mined metal production for the year was 880,000 tonnes, marginally higher than
the previous year. Production in H2 was lower than what we had planned
initially due to slower than expected ramp up of underground mining projects
and changes in mining sequence, wherein preference was given to primary mine
development.

Integrated production of refined metal during the year was significantly
higher due to operational efficiencies and higher availability of our
smelters. Full year integrated production of refined zinc, lead and silver
were higher by 13%, 10% and 4% respectively.

Zinc - International Business 


                                          Q4             Q3            Full Year

    Particulars (in '000
    tonnes, or as                            % change                            % change
                              FY2014  FY2013           FY2014  FY2014     FY2013
    stated)                                       YoY                                 YoY


    Zinc International            83     102    (19%)      84     364        426    (15%)
    Refined Zinc -Skorpion        33      36     (9%)      23     125        145    (14%)
    Mined metal content -
    BMM and
    Lisheen                       50      65    (24%)      62     239        280    (15%)

Refined zinc production at Skorpion was higher than Q3 by 10,000 tonnes
consequent to ramp up after an unplanned shutdown in Q3 FY2014. However, this
was offset by lower mined metal production at BMM and Lisheen due to lower ore
grades. Total production in Q4 remained in line with Q3, and the full year
production was lower by 15%. This was lower on account of disruptions in
production caused by accidents at Lisheen and BMM in Q1 FY2014 and the
unplanned shutdown at Skorpion in Q3.

Oil & Gas Business 


                                          Q4           Q3              Full Year

                                               %                                 % change
    Particulars               FY2014  FY2013 change  FY2014    FY2014     FY2013
                                                                                      YoY
                                              YoY


    OIL AND GAS (boepd)
    Average Daily Gross
    Operated
    Production (boepd)       224,429       -      -  224,493  218,651          -        -
    Rajasthan                190,881       -      -  186,359  181,530          -        -
    Ravva                     24,225       -      -   27,857   27,386          -        -
    Cambay                     9,323       -      -   10,277    9,735          -        -
    Average Daily Working
    Interest
    Production (boepd)       142,796       -      -  140,830  137,127          -        -
    Rajasthan                133,616       -      -  130,451  127,071          -        -
    Ravva                      5,451       -      -    6,268    6,162          -        -
    Cambay                     3,729       -      -    4,111    3,894          -        -
    Total Oil and Gas
    (million boe)
    Oil & Gas- Gross           20.20       -      -    20.65    40.45          -        -
    Oil & Gas-Working
    Interest                   12.85       -      -    12.96    30.58          -        -

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 total oil and gas production (in million boe)
in the 'Full Year FY2014 (Actual)' are for the period from 26 August 2013.
However, the average daily gross operated and working interest production
numbers in 'Full Year FY2014 (Actual)'are on proforma basis for twelve months.


Average gross production for FY2014 was 218,651 barrels of oil equivalent per
day (boepd), 6% higher than the previous year. During the year, the Rajasthan
block achieved a landmark oil production of 200 million barrels, and a 200,000
boepd production milestone in March 2014.

In Q4 FY2014, average gross operated production and working interest
production were 11% and 13% higher at 224,429 boepd and 142,796 boepd,
respectively, driven primarily by the production ramp-up at Rajasthan. In
Rajasthan, infill drilling continues across all major fields and has driven a
13% increase in the production rate to 190,881 boepd. Development Area (DA1),
which includes the Mangala and Aishwariya fields produced a gross average of
162,245 boepd and DA2, which includes the Bhagyam field produced a gross
average of 28,636 boepd.

In Q4 FY2014, production at Cambay was 50% higher yoy at 9,323 boepd, due to
the infill drilling campaign that was completed in FY2013. Production at Ravva
was lower in Q4 FY2014 at 24,225 boepd though recovery rates continue to be
over 47%.

Iron Ore Business 


                                          Q4             Q3            Full Year

    Particulars (in million
    dry metric                FY2014  FY2013 % change  FY2014  FY2014     FY2013 % change
    tonnes, or as stated)                         YoY                                 YoY


    IRON ORE [3]

    Sales                        0.0       -        -       -     0.0        3.1        -
    Goa                            -       -        -       -       -        3.0        -
    Karnataka                    0.0       -        -       -     0.0        0.1        -
    Production of Saleable
    Ore                          1.5       -        -       -     1.5        3.7     (60%)
    Goa                            -       -        -       -       -        3.7        -
    Karnataka                    1.5       -        -       -     1.5          -        -
    Production ('000 tonnes)
    Pig Iron                     133     104      28%     139     510        308      66%
    Met Coke                     119      94      27%     116     408        331      23%


In Karnataka, we resumed mining on December 28, 2013 and optimized our
approved annual capacity of 2.29mtpa, which resulted in a production of 1.5mt
this year. However, only 27 kt was sold during the year.

At Goa, we participated in e-auctions of inventory and sold 0.3 million tonnes
during the quarter but these were not accounted for as sales since the
dispatches did not take place during the quarter. These dispatches have
commenced in April.

Regarding mining in Goa, the Expert committee appointed by the Supreme Court
submitted its second interim report to the Court on 24 March 2014. The Expert
committee, in its report, recommended that 27.5mtpa was a sustainable
extraction level in the state, but suggested that the ideal permissible limit
be 20mtpa until a scientific study is completed within 12 months. The decision
of the Supreme Court is awaited on this matter.

Copper - India / Australia Business 


                                                                          Full
                                Q4                      Q3                Year

    Particulars (in
    '000 tonnes, or
    as                 FY2014   FY2013 % change       FY2014   FY2014    FY2013 % change
    stated)                                 YoY                                      YoY


    COPPER- INDIA /
    AUSTRALIA
    Copper -
    Cathodes               98       86      14%           99      294       353     (17%)
    Copper - Mined
    metal content           1        7     (85%)           5       18        26     (32%)
    Power sales -
    2X80MW Tuticorin
    power
    plant(million
    units)                144       35        -          162      601        42        -


The Tuticorin copper smelter performed well at 98% utilisation in Q4. The full
year production was 17% lower due to the temporary closure in Q1 FY2014. As
announced earlier, we are scheduled to have a maintenance shutdown of this
smelter for approximately 22 days in Q1.

The company received the final regulatory approval for the second unit of the
2x80MW power plant in March 2014. Subsequently, we commissioned and
capitalized this unit and generated 25 million units.

As announced earlier, production at our Australian mine remained suspended due
to a mud rush at one of the stopes in January 2014. We are working with Work
Place Standards Authorities at Tasmania to resume operations.

Aluminium Business 


                                                                        Full
                                   Q4               Q3                  Year

    Particulars(in '000                       %                                        %
    tonnes, or as        FY2014  FY2013  change     FY2014      FY2014  FY2013    change
    stated)                                 YoY                                      YoY


    ALUMINIUM
    Alumina-Lanjigarh       227       -       -        181         524     527        (1)%
    Total Aluminum
    Production              200     195      2%        200         794     774         3%
    Jharsuguda-I            135     133      1%        136         542     527         3%
    Korba-II                 64      62      3%         64         251     247         2%
    Korba-III [4]             1       -       -          -           1       -         -


The Lanjigarh alumina refinery operated at 91% of its rated capacity and
produced 227,000 tonnes in Q4 FY2014, 25% higher than Q3. Full year production
was 524,000 tonnes, after restarting the refinery in July 2013. This resulted
in a steady increase of alumina feed from Lanjigarh to our smelters,
contributing to 28% of the smelters' alumina requirements in FY2014 and 49% in
Q4.

In Q4, production at Jharsuguda Plant I and Korba Plant II smelters continued
to remain stable and both these plants operated above their rated capacities.

We commenced the Korba-III 325kt smelter with the first metal tapping in Q4.
We produced around 900 tonnes of aluminium with power sourced from the BALCO
270MW power plant. We expect to ramp up significantly during FY2015 consequent
to the commissioning of the 1,200MW power plant, which expects to receive
regulatory approvals in Q1 FY2015.

Power Business 


                                          Q4               Q3          Full Year

    Particulars (in million
    units)                    FY2014  FY2013 % change  FY2014  FY2014     FY2013 % change
                                                  YoY                                 YoY


    POWER
    Total Power Sales          2,093   2,638    (21%)   2,196   9,374     10,129     (7%)
    Jharsuguda 2,400MW [5]     1,701   2,073    (18%)   1,827   7,625      7,530      1%
    BALCO 270MW                   84     282    (70%)      75     390      1,241    (69%)
    MALCO                        231     204     13%      236     911        847      8%
    HZL Wind Power                77      78     (2)%      59     448        511    (12%)

Power sales were 20% lower in Q4 as compared to corresponding prior period,
primarily due to lower sales at our Jharsuguda 2,400MW and BALCO 270MW power
plants on account of weak market demand and evacuation constraints. The
Jharsuguda 2,400MW operated at a plant load factor of 35%.

The boiler light up of the first 660MW unit of the 1,980MW Talwandi Sabo power
plant was achieved in Q3 and synchronization was completed subsequently. Coal
logistics were established in Q4 and we expect to commence trial runs in Q1
FY2015.

Note:   Figures in previous periods have been regrouped or restated,
wherever necessary to make them comparable to current period. 

Production Summary (Unaudited) 

(in '000 tonnes, except as stated) 


                                         Q4               Q3           Full Year
    Particulars
                           FY 2014  FY 2013 % change FY 2014  FY 2014    FY 2013 % change
                                                 YoY                                  YoY


    Zinc India
    Mined metal content        200      260    (23%)     220      880        870       1%
    Concentrate Sales-
    Zinc (MIC)                   -       61       -        -        -         61        -
    Refined Zinc (Total)       182      182      0%      196      749        677      11%
    Refined Zinc (
    Integrated)                179      181     (1%)     196      743        660      13%
    Refined Zinc (
    Custom)                      4        0       -        -        6         17        -
    Refined Lead (Total)
    [1]                         38       35     10%       27      130        125       4%
    Refined Lead (
    Integrated)                 31       32     (2%)      27      118        107      10%
    Refined Lead (
    Custom)                      7        3       -        -       12         18        -
    Saleable Silver -
    Total
    (in tonnes) [2]             91      108   (16%)       73      350        374      (6%)
    Saleable Silver -
    Integrated
    (in tonnes)                 68       91   (25%)       72      301        288       4%
    Saleable Silver -
    Custom
    (in tonnes)                 23       17    34%         1       49         86     (43%)
    Zinc
    International(Total)        83      102   (19%)       84      364        426     (15%)
    Zinc -refined
    Skorpion                    33       36    (9%)       23      125        145     (14%)
    Mined metal content(
    BMM and
    Lisheen)                    50       65   (24%)       62      239        280     (15%)
    Oil and Gas
    Average Daily Gross
    Operated
    Production (boepd)     224,429        -       -  224,493  218,651          -        -
    Rajasthan              190,881        -       -  186,359  181,530          -        -
    Ravva                   24,225        -       -   27,857   27,386          -        -
    Cambay                   9,323        -       -   10,277    9,735          -        -
    Average Daily Working
    Interest
    Operated Production
    (boepd)                142,796        -       -  140,830  137,127          -        -
    Rajasthan              133,616        -       -  130,451  127,071          -        -
    Ravva                    5,451        -       -    6,268    6,162          -        -
    Cambay                   3,729        -       -    4,111    3,894          -        -
    Total Oil and Gas
    (million boe)
    Oil & Gas - Gross        20.20        -       -    20.65    40.45          -        -
    Oil & Gas ( Working
    Interest)                12.85        -       -    12.96    30.58          -        -
    Iron Ore [3]
    Sales                      0.0        -       -        -      0.0        3.1        -
    Goa                          -        -       -        -        -        3.0        -
    Karnataka                  0.0        -       -        -      0.0        0.1        -
    Production of
    Saleable Ore               1.5        -       -        -      1.5        3.7     (60%)
    Goa                          -        -       -        -        -        3.7        -
    Karnataka                  1.5        -       -        -      1.5        0.0        -
    Production ('000
    tonnes)
    Pig Iron                   133      104     28%      139      510        308      66%
    Met Coke                   119       94     27%      116      408        331      23%



                                         Q4               Q3           Full Year
    Particulars
                           FY 2014  FY 2013 % change FY 2014  FY 2014    FY 2013 % change
                                                 YoY                                  YoY


    Copper( India /
    Australia
    Copper (Mined metal
    content)                     1        7    (85%)       5       18         26     (32%)
    Copper (Cathodes)           98       86     14%       99      294        353     (17%)
    Power sales - 2X 80MW
    Tuticorin
    power plant(million
    units)                     144       35       -      162      601         42        -
    Alumina
    Lanjigarh                  227        -       -      181      524        527      (1)%
    Aluminium
    Total Aluminum
    Production                 200      195       2%     200      794        774       3%
    Jharsuguda                 135      133       1%     136      542        527       3%
    Korba-II                    64       62       3%      64      251        247       2%
    Korba-III [4]                1        -       -        -        1          -        -
    Power (in million
    units)
    Total Power Sales        2,093    2,638     (21%)  2,196    9,374     10,129      (7%)
    Jharsuguda 2,400MW
    [5]                      1,701    2,073     (18%)  1,827    7,625      7,530       1%
    Balco 270MW power
    Sales                       84      282     (70%)     75      390      1,241     (69%)
    MALCO                      231      204      13%     236      911        847       8%
    HZL Wind Power              77       78      (2)%     59      448        511     (12%)


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 total oil and gas production (in million boe)
in the 'Full Year FY2014 (Actual)' are for the period from 26 August 2013.
However, the average daily gross operated and working interest production
numbers in 'Full Year FY2014 (Actual)'are on proforma basis for twelve months.


1.Including captive consumption of 1,991 tonnes in Q4 FY2014 vs 1,777 tonnes
    in Q4 FY2013, and 7,262 tonnes in FY2014 vs 6,500 tonnes in FY2013 
2.Excluding captive consumption of 10 tonnes in Q4 FY2014 vs 9 tonnes in Q4
    FY2013 and 38 tonnes in FY2014 vs 34 tonnes in FY2013 
3.Iron Ore sales include internal consumption of nil in Q4 FY2014 vs nil in
    Q4 FY2013 and nil in FY2014 vs 0.17 million tonnes in FY2013. 
4.Production under trial run 
5.Includes production under trial run of nil in Q4 FY2014 vs. nil in Q4
    FY2013 and nil in FY2014 vs 795 million units in FY2013. 

About Sesa Sterlite Limited 

Sesa Sterlite Limited ("Sesa Sterlite") is one of the world's largest
diversified natural resources 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 London-listed
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.

Sesa Sterlite Limited  (Formerly known as Sesa Goa Limited)  Vedanta, 75,
Nehru Road Vile Parle (East), Mumbai - 400 099 http://www.sesasterlite.com

Registered Office:  Sesa Ghor, 20 EDC Complex Patto, Panaji (Goa) - 403 001
CIN: L13209GA1965PLC000044 

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.

Forfurtherinformation,please contact: AshwinBajaj
SeniorVicePresident-Investor Relations sesasterlite.ir@vedanta.co.in
Tel:+91-22-6646-1531
 
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