Vedanta releases its Q3FY22 production data; reports 16% growth in aluminium production

Vedanta has announced its production performance update for Q3FY22 and reported a 16 per cent growth in aluminium production. The company said the total saleable production for Q3FY22 was 350 KT, higher by 3 per cent as compared to Q3 FY2021 and 20 per cent as compared to Q2FY22 owing to capital shutdown at Blast Furnace in August 2021. Production Update:

Aluminium

The Lanjigarh refinery produced 472,000 tonnes of alumina in Q3FY22, 16 per cent higher as compared to Q3FY21 and 8 per cent lower as compared to Q2FY22.

The cast metal aluminium production at its smelters stood at 579,000 tonnes in QFY22, higher 16 per cent in comparison to Q3FY21 and 2 per cent as compared to Q2 FY22.

Zinc - India

Ever highest quarterly Integrated metal production 261,000 tonnes, up 11 per cent as compared to Q3FY21 & 25 per cent compared to Q2FY22, mainly due to better plant and mined metal availability. Integrated zinc production was 214,000 tonnes, up 17 per cent as compared to Q3FY21 and 32 per cent as compared to Q2FY22. Integrated lead production was 47,000 tonnes for Q3FY22, down 10 per cent as compared to Q3FY21 on account of changing mode of Pyro plant (CLZS) operations from Lead mode to Zinc-Lead mode.

Integrated saleable silver production was 173 MT, down 5 per cent as compared to Q3FY21 in line with lower lead production & up 14 per cent as compared to Q2FY22 due to depletion of WIP.

Mined metal production for Q3FY22 was 252,000 tonnes, up 3 per cent as compared to Q3 FY21 on account of higher ore production at Sindesar Khurd & Zawar mines and higher feed grade at Rampura Agucha, supported by improvement in recovery, which has been partly offset by lower mining grades.

Zinc - International

Total production for Q3FY22 was 52,000 tonnes, 11 per cent lower compared to Q3FY21 and 4 per cent compared to Q2FY22. BMM produced 11,000 tonnes in Q3 FY22, 28 per cent lower than Q3FY21 due to lower throughput, recovery and lower grades and 30 per cent lower as compared to Q2FY22 due to lower throughput and grades partly offset by higher zinc recoveries.

Gamsberg production was 41,000 tonnes in Q3FY22, 5 per cent lower as compared to Q3FY21 due to lower Zn recovery and 6 per cent higher as compared to Q2FY22 due to higher throughput and higher Zn recovery.

Skorpion remained under care and maintenance in Q3FY22 following multiple slope failures and geotechnical instabilities in FY20.

Oil & Gas

Average gross operated production during Q3FY22 across our assets was 159,230 barrels of oil equivalent per day (boepd), flat compared to Q3FY21 and down by 4 per cent, compared to Q2FY22.

Gross production from the Rajasthan block averaged 136,795 boepd for the quarter, 3 per cent up as compared to Q3FY21 and down 4 per cent as compared to Q2FY22. The natural decline in the MBA fields has been partially offset by the continued gains realized from polymer injection in Bhagyam & Aishwariya fields and new infill wells brought online in the Mangala field. Gross production from Development Area-1 (DA-1), Development Area2 (DA-2) and Development Area-3 (DA-3) averaged 120,459 boepd, 16,163 boepd and 173 boepd respectively.

Gas production from Raageshwari Deep Gas (RDG) averaged 159.2 million standard cubic feet per day (mmscfd) (equiv. 26.5 kboepd) in Q3FY22, with gas sales post captive consumption at 131.4 mmscfd (equiv. 21.9 kboepd).

The Ravva block produced at an average rate of 14,457 boepd for Q3FY22, down 14 per cent as compared to Q3FY21 and up 1 per cent as compared to Q2FY22. Previous year production included gains from the infill drilling campaign.

The Cambay block produced at an average rate of 7,906 boepd for the Q3FY22, down 26 per cent as compared to Q3FY21 and down 15 per cent as compared to Q2FY22. The reduction is primarily due to natural field decline.

Iron Ore

There was no production at Goa due to the continuation of the suspension of mining pursuant to the Hon'ble Supreme Court judgment dated 7th February 2018 directing mining operations of all companies in Goa to stop with effect from 16th March 2018. We continue to engage with the Government for the resumption of mining operations.

At Karnataka, production volume in Q3FY22 was 1.2 million tonnes, lower by 14 per cent as compared to Q3FY21 and 4 per cent as compared to Q2FY22 due to impact on operations because of heavy rainfall in Q3FY22.

Pig iron production was at 2,02,000 tonnes in Q3FY22, higher by 39 per cent as compared to Q3 FY21 due to shut down in Q3FY21 for carrying out relining activities at one of the furnaces and 3 per cent lower as compared to Q2FY22.

Facor

Ore production volume in Q3FY22 is 37 per cent higher as compared to Q3FY21 due to continuous operations of both mines. It is 151 per cent higher as compared to Q2FY22 due to the monsoon in Q2FY22.

The Company has achieved the highest ever Ferro Chrome production of 20,000 tonnes up 13 per cent as compared to 18,000 tonnes in Q3 FY21 and 4 per cent as compared to Q2 FY22 in line with improved Charge Chrome plant productivity.

Copper - India

Our Silvassa refinery and wire rod plant continue to operate. This enables us to cater to the domestic market. Production from the Silvassa refinery for Q3 FY22 was up by 33 per cent as compared to Q3 FY21 amid easing of the nationwide COVID-19 restrictions which were prevailing in the comparable quarter (s). The production for Q3 FY22 was up by 11 per cent as compared to Q2 FY2022 mainly due to the resumption of domestic copper demand in the market post ease of COVID-19 restrictions.

Smelting operations at Tuticorin have been halted since April 2018. The Tamil Nadu Pollution Control Board (TNPCB) through an order dated 9th April 2018 rejected the Consent to Operate (CTO) of the Tuticorin Plant and issued a direction for closure and disconnection of power supply at the plant. In May 2018, the Government of Tamil Nadu has issued orders with a direction to permanently seal the existing copper smelter plant at Tuticorin. The matter is currently under sub judice before the Supreme Court.

Power

During Q3 FY22, power sales were 3,450 million units higher by 68 per cent as compared to Q3 FY2021 and 19 per cent higher as compared to Q2FY22. The 600 MW Jharsuguda IPP operated at plant load factor (PLF) of 62 per cent in Q3 FY2022 (PLF of 63 per cent in Q3FY21 and 64 per cent in Q2 FY22).

Power sales at TSPL were 2,357 million units with a 92 per cent plant availability factor in Q3FY22. At TSPL, the Power Purchase Agreement with the Punjab State Electricity Board compensates us based on the availability of the plant.

The 300 MW BALCO IPP operated at a PLF of 73 per cent in Q3FY22 (PLF of 65 per cent in Q3FY21 and 50 per cent in Q2 FY22).

Wind power generation is largely dependent on wind velocity and hence the variations.