Vedanta iron ore sales fall by whopping 86 per cent

India-focused miner Vedanta Resources' iron ore sales fell by a whopping 86 per cent in the July-September quarter this fiscal on a dip in production due to the mining ban in Karnataka.

Vedanta's iron ore output was hit by a year-long ban on mining in Karnataka, temporary restriction in Goa and transportation restrictions in South Goa during the monsoons.

The Anil Agarwal-controlled company also posted a 9 per cent decline in zinc output in India to 1.9 lakh tonnes (LT) during the quarter. The London-based company's average daily gross operated production of oil and gas rose 22 per cent to 207,245 barrels of oil equivalent (BOE), 22 per cent higher than the corresponding period.

"Sales of iron ore were 2 LT in the second quarter and 31 LT in the first half, as compared with 16 LT and 58 LT in the corresponding prior periods, respectively," it said in a statement.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months till September 30 came in at $2.6 billion. This was in line with market forecasts, as Cairn India, offset the impact of weaker profits from zinc and iron ore.

The company added that it was hoping to commence mining in Karnataka, subject to the approval of the Supreme Court, in a mine with a provisional production capacity of 22.9 lakh tonnes per annum.

Vedanta group company Hindustan Zinc's metal production was down 10 per cent at 190,000 tonnes in the September quarter. In the first half, it was down five per cent at 377,000 tonnes (398,000 tonnes). Its refined zinc production dipped 17 per cent at 153,000 tonnes (185,000 tonnes) in Q2.

Shares of Hindustan Zinc rose 3 per cent to Rs 136, while Sterlite Industries and Sesa Goa moved up two and one per cent each to Rs 102 and Rs 173, respectively.