Maravi

Copper prices to remain flat, says Vedanta chairman

Copper prices to remain flat, says Vedanta chairman
Written by Chibaula Silwamba
Friday, August 07, 2009 2:46:46 PM

KONKOLA Copper Mines (KCM)’s majority shareholder, Vedanta Resources Plc founder chairman Anil Agarwal has said it will take another year for copper, zinc and aluminum to get better prices.

And Agarwal, an Indian national whose Vedanta Resources Plc owns 79.4 per cent in KCM, said developing countries such as India and China would have a bigger say in deciding the commodity prices in future.

According to excerpts from his interview with Pawan Bali concerning his conglomerate’s influence on the world economy, Agarwal said the prices of aluminium would remain flat.

On the future prospects of prices of aluminium, copper and Zinc, Agarwal said: “In India, we have a double digit growth. As far as the world market is concerned, definitely there is not too much demand. The prices are going to remain flat. Our cost of production of aluminium is US $ 1, 000 per tonne, which is definitely on the lower side as far as international prices are concerned. It will take another year for the market to get a better price. The same is applicable for both these metals [copper and zinc].”

He said Vedanta Resources Plc was increasing its capacity to produce zinc.

“We will be producing 25 lakh tonne aluminium, 10 lakh tonne zinc, 25 million tonne iron ore and 1,000,000 tonne copper,” Agarwal said. “We have 60ñ70 per cent of our business in India and are creating international capacity at international costs. We are very cost conscious in building the projects and are going to the low cost producer of these metals. We take large projects, execute and deliver them. We do it within the cost and within the time frame.”

He said Vedanta Resources Plc focused on being development-oriented.

“Wherever we are, we run our business very passionately,” said Agarwal. In April 2008, Vedanta Resources Plc acquired Zambia Copper Investments (ZCI)’s 28.4 per cent stake in KCM for US$217.2 million, making it the largest shareholder in KCM.

At the moment, Vedanta Resources Plc ñ a London Stock Exchange (LSE) listed conglomerate ñ has a total 79.4 per cent shareholding in KCM, one of the largest mining firms in Zambia.

Vendata Resources Plc is a leading diversified metal and mining group with operations in India, Australia and Zambia.

Labels: ANIL AGARWAL, COPPER, KCM, VEDANTA

posted by MrK @ 1:47 PM