Vedanta's zinc business lifted by China steel production
Mining company Vedanta Resources said mined metal production at its Indian zinc unit rose 42 percent in the first half of the year, lifted by strong demand in China for the metal used in steel production.
Zinc demand in China, the world`s top steel producer, has been strong as steel makers in China ramped up production ahead of government curbs this winter.
Benchmark London zinc has risen about 23 percent in the year to Sept. 30.
"We are continuing to ... benefit from a supportive market environment," CEO Kuldip Kaura said in a statement on Tuesday.
Demand for the metal, which is used to galvanise steel, is expected to slow in the fourth quarter as Chinese regulators crack down on steel mills that fail to comply with environmental rules.
China has been pushing to clean up its inefficient manufacturing sectors for years as part of its war on smog and supply-side reform.
The Rampura Agucha open pit-mine operator said Zinc India`s mined metal production was 452,000 tonnes for the first half ended Sept. 30.
The company, which mines zinc in Rajasthan state, said integrated zinc production rose 54 percent to 386,000 tonnes and integrated silver rose 30 percent to 8.2 million ounces during the period.
Vedanta`s shares were down 0.4 percent at 901 pence by 0735 GMT.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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