India: Vedanta’s iron ore production rises 8% y-o-y in FY’22

Vedanta Ltd recently announced its operational results for Q4 and FY’22. Total iron ore production in the last fiscal year was recorded at 5.4 million tonnes (mnt), up 8% y-o-y. In Q4FY’22, production was recorded at 1.4 mnt. The total material mined was entirely from the company’s Karnataka mines, as Goa mines remained out of operation following a 2018 Supreme Court ban.

Vedanta’s iron ore production witnessed a significant increase of 18% as against the volumes seen in Q4FY’21. On a quarterly basis, total output increased by 14% compared to Q3FY’22.

Highlights:

• Production from Karnataka rose due to operational efficiencies.
• There was no production from the Goa mines due to the continuation of the suspension of mining pursuant to the Supreme Court judgment dated 7 Feb’18, which directed all mining companies to stop operations in Goa with effect from 16 Mar’18.
• Total iron ore sales were recorded at 2.3 mnt in Q4FY’22, up 4% y-o-y compared to 2.2 mnt in Q4FY’21.
• The company’s pig iron production stood at 178,000 t in Q4FY’22, higher by 14% y-o-y compared to 156,000 t in Q4FY’21 as last year production was impacted as one of the furnaces was shutdown for relining activities. In FY’22, the company’s pig iron output stood at 0.79 mnt, up by 33% y-o-y.
• Total saleable steel production increased 6% y-o-y to 1.26 mnt in FY’22 with increased hot metal production post-repair and maintenance activities in Q2. FY’21 production was impacted by Covid-19 lockdowns.