Mining conglomerate Vedanta Resources on Friday said it is planning to restructure high-cost operations in aluminium segment and has suspended ramp-up at its plant due to volatile commodity market. The firm, led by Anil Agarwal, has been facing a challenging environment as global commodity prices are undergoing a volatile phase leading to downward pressure on prices, affecting the company's profit and revenue.
“In light of the low lME (london Metal Exchange) prices and premiums we are reviewing restructuring some of our high cost operations in the Aluminium segment,” Vedanta Resources said in a statement.
EBITDA (operational earnings) for the June quarter was significantly lower and negative at $(1.9) million due to reduced lME and metal premiums and $7 million provision made for RPO for previous years, it added. “The 325 kilo tonnes (KT) Korba-II smelter produced 18,000 tonnes during Q1 FY 2015-16 with 83 pots online by the end of the quarter.