Zambia copper biz drags Vedanta Q3 net down 5%

Miner Vedanta Resources posted a 5% dip in core profit its December quarter, hit by weaker performances at its aluminium and Zambian copper operations.

The India-focused miner said earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $848.4 million for the third quarter, including $131 million from its majority stake in Cairn India, acquired last year.

Zambia, the focus of market attention as Vedanta's listed subsidiaries have already reported, posted results well below market expectations, hit by a drop in production, weaker copper prices and a provision for higher power costs.

The Zambian copper operations posted core earnings of $67.7 million, compared to $134.4 million a year ago.

Aluminium was also badly hit by lower market prices and by the depreciation of the rupee, which forced mark-to-market losses on foreign currency loans. Core profit sank to $3.6 million for the division from $76.3 million a year earlier.

Over the nine months to the end of December, the group's core profit rose 14% to $2.6 billion.