Vedanta Resources on Friday said it has reduced capital and operating expenditures in the July- September quarter as the mining conglomerate tries to tackle volatile market conditions as well as subdued metal prices globally. Billionaire Anil Agarwal-led mining giant said market conditions are expected to remain ‘challenging in the short term’.
Presenting its production figures for the second quarter of 2015-16, Vedanta Resources Group CEO Tom Albanese said: “We are continuing to drive efficiency improvements and optimise opex and capex across the business. While the near-term market outlook is challenging, we believe we have the right mix of commodities to benefit from future demand in India and globally.” He added however that the Group's diversified asset portfolio has delivered a strong operating performance during the quarter, including record production from its tier-1 Zinc mines.
On the financial side, the london Stock Exchange-listed firm in a statement said: “In light of the current market conditions, we are focused on optimising our opex and capex, increasing free cash flow and reducing net debt.”
During the quarter, several initiatives and programmes to generate cash savings, including a reduction of working capital have been implemented across businesses. These initiatives have resulted in an improved cost performance and lower net debt at the end of the quarter, it added.
On its iron ore business, Vedanta Resources said that in Goa, the remaining approvals were received for production of saleable ore of 5.5 million tonnes per annum (MTPA) during the quarter and mining restarted during the quarter. Production will progressively be ramped up in the third quarter of 2015-16.