Vedanta Resources plc is a London-based diversified FTSE 100 metals and mining group, with extensive interests in aluminium, copper, zinc and lead, iron ore and commercial energy. The company currently operates in India, Zambia and Australia.
Vedanta Resources plc (‘Vedanta’ or the ‘Group’) is a London-based diversified FTSE 100 metals and mining group, with extensive interests in aluminium, copper, zinc and lead, iron ore and commercial energy. The company currently operates in India, Zambia and Australia. With a talent pool of over 29,000 employees globally, Vedanta’s focus is clear and committed. Vedanta was the first Indian company to be listed on the London Stock Exchange in December 2003. Vedanta’s Indian subsidiary, Sterlite Industries India Limited (‘Sterlite’) also achieved a successful US listing on the New York Stock Exchange in June 2007, raising $2.0 billion.
Vedanta’s 2008 revenues were $8.2 billion, demonstrating a five-year compounded annual growth rate (‘CAGR’) of 53.5% with 2008 EBITDA at $3.0 billion or five year CAGR of 68.1%. The Group’s 2008 profits after tax of $2.0 billion grew at 103.2% on a compounded basis over the last five years. For 2008 our operating costs were $5698.1 million which includes employee compensation of $344.7 million. Tax holidays and similar exemptions of $160.6 million were received, while donations of $3.5 million were made during 2008 (EC1, EC4).
Vedanta’s principal operating companies comprise Hindustan Zinc Limited (‘HZL’) for its fully integrated zinc and lead operations; Sterlite and Copper Mines of Tasmania Pty Limited (‘CMT’) for its copper operations in India/Australia; Konkola Copper Mines plc (‘KCM’) for its fully integrated Zambian copper operations; and Bharat Aluminium Company (‘BALCO’), Madras Aluminium Company (‘MALCO’); Vedanta Aluminium Limited (‘VAL’) for its aluminium and alumina operations; Sterlite Energy Limited (‘SEL’) for its commercial power generation business and Sesa Goa Limited (‘SESA’), for its iron ore business.
To take advantage of the growth and development in India’s electricity sector, Vedanta has entered the commercial power generation business. The Group is currently implementing a 2,400 MW commercial energy project at Jharsuguda, Orissa at an estimated cost of $1.9 billion. The power business will be operated through SEL, a wholly owned subsidiary of Sterlite.
In the last five years, the Group has grown production capacities between 3-7 times in each of its primary metals. The Group currently has a production capacity of 754,000 tonnes in zinc and lead, 650,000 tonnes in copper, 400,000 tonnes in aluminium and over 12 million tonnes in iron ore. It has a clear roadmap of becoming a milliontonne per annum producer at the lowest decile costs in aluminium, copper and zinc as well as becoming a 25 million tonne producer of iron ore within the next 2-3 years. Vedanta has undertaken several green field and brown field expansion projects to achieve this.
Vedanta has continually demonstrated its ability to deliver major value creating projects, offering unparalleled growth at lowest costs and generating superior financial returns for its shareholders. The capital expansions completed under the first phase of expansion, entailing an investment of $2.2 billion, involved highly energy efficient and environment friendly technologies. These were completed at costs significantly lower than international benchmarks and in record periods. The next phase of the expansion pipeline has an investment of over $6.5 billion and is now underway.
Vedanta develops and manages a diverse portfolio of mining and metals businesses whilst carrying out its activities in a socially and environmentally responsible manner. The management of environment, employees, health and safety and community issues, in respect of its operations is central to the success of the company’s business.