Vedanta sends Dubai copper to Sterlite customers

NEW DELHI Thu May 16, 2013 8:26pm IST

Related Topics

Stocks

   

NEW DELHI (Reuters) - Vedanta Resources Plc(VED.L) is exporting 4,000 tonnes of refined copper a month from Dubai to customers of Sterlite Industries, whose smelter will stay shut until at least May 22 when a court resumes hearing a case over its closure.

The plant, run by Vedanta unit Sterlite IndustriesSTRL.NS, meets half of India's copper demand. The closure of the facility, which produces 30,000 tonnes of refined copper a month and exports nearly half of that to China, has tightened supply and driven up prices.

The smelter was closed on March 30 after residents complained of emissions that led to breathing problems.

The shutdown has led to a doubling of copper imports to about 8,000 tonnes per month from countries like Russia, P. Ramnath, chief executive of Sterlite Copper, told Reuters. "Because of the shutdown, the gap has increased between demand and supply, which has basically resulted in premiums going up," metals trader Ushdev International's(USTF.BO) Managing Director Ashwin Rathi told Reuters last Friday. "I don't think the Sterlite issue would be resolved any time soon."

Ramnath said that Vedanta's unit Fujairah Gold Fze had been exporting to India since April to help Sterlite's customers cope with the shortage.

London-listed resources conglomerate Vedanta, controlled by billionaire Anil Agarwal, reported a 21 percent rise in full-year earnings and said it was confident operations would resume at the Sterlite smelter.

Vedanta did not book an impairment on the asset and said it was in "full state of preparedness" to restart the smelter and that the cost of shutdown was "not very significant."

Justice Swatanter Kumar of the National Green Tribunal, the fast-track court hearing the case, on Thursday asked the pollution control board of Tamil Nadu state to provide data on emissions from the plant before the next hearing.

No decision is expected that day as the court said it will have to hear the arguments of more parties.

(Writing by Mayank Bhardwaj; editing by Malini Menon and James Jukwey)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Economic Pulse

REUTERS SHOWCASE

Apple Result

Apple Result

Apple's iPhone sales beat Street but iPad volumes slide.  Full Article 

Nadella's Paycheck

Nadella's Paycheck

New Microsoft CEO Nadella's pay tops $80 mln with big stock awards.  Full Article 

Deregulation Impact

Deregulation Impact

Private fuel retailers to dip toe, not dive back, into India  Full Article 

Airport Accident

Airport Accident

Total CEO de Margerie killed in Moscow plane accident - airport spokeswoman.  Full Article 

Gold Import

Gold Import

RBI will not change gold import rules - sources  Full Article 

Idea Results

Idea Results

Idea Cellular Q2 profit up 69 percent  Full Article 

An RBI First

An RBI First

RBI releases minutes of financial stability council's Aug meet  Full Article 

IBM Earnings

IBM Earnings

IBM ditches 2015 operating EPS target, shares slump 7 pct  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage