- Vedanta is shutting down its Tuticorin copper plant
- Plant meets roughly 40% of India’s copper demand
- Facility has been closed since mid-2018
- Vedanta has entered the international iron ore mining business in Liberia, West Africa
Vedanta is shutting down its Tuticorin copper plant. The factory has been placed up for sale by the metal and mining company. Vedanta has put out an Expression of Interest for the sale of the facility, asking for bids from potential bidders. Bids are being requested in cooperation with Axis Capital, and the deadline for submitting EoI is July 4th.
Vedanta has put out an advertisement seeking offers for the Tuticorin smelter, which has been closed since mid-2018 due to a Tamil Nadu government injunction. Before it was shut down, the Sterlite Copper complex generated 40% of India’s copper. At the time of its closure, it employed 5,000 people directly and another 25,000 indirectly.
According to Vedanta, the plant meets roughly 40% of India’s copper demand and contributes nearly INR 2,500 crores to the government coffers.
Few years back, 13 protesters were killed in firing at this plant and since then plant has been shut
On the other Hand Vedanta, is expanding its operation in Liberia
Through its subsidiary WCL, Vedanta has entered the international iron ore mining business in Liberia, West Africa. In 2011, WCL and the Liberian government signed a Mineral Development Agreement for three iron ore mining concessions in Liberia, namely Bomi, Bea, and Mano.
On June 8, 2022, a ground-breaking ceremony was performed at the Bomi iron ore mine.
Despite the fact that the deal was reached in 2011, operations were halted owing to the emergence of the Ebola virus. WCL, on the other hand, is planning to recommence operations on a considerably larger scale, with the potential for additional expansion through exploration.
Bloom Fountain Limited (‘BFL’) is a 100% subsidiary of Vedanta Limited, while WCL is a wholly owned subsidiary of BFL.
During FY 2022, Vedanta reported strong numbers. It generated an all-time high of Rs 131,192 crore in consolidated revenue, up 51% year on year basis.
It achieved its highest annual EBITDA of 45,319 crore, up 66 percent year on year, with a robust industry-leading EBITDA margin of 39 percent. Vedanta’s PAT (profit after tax) was Rs 24,299 crore, up 95 percent year on year bais, and its free cash flow before expenditure was Rs 27,154 crore, up 69 percent year on year.
Vedanta is supporting the startup ecosystem actively in order to create a large-scale impact. Spark 2.0, a global corporate open innovation and accelerator programme, was created to assist businesses in leveraging breakthrough and long-term technology.
Startups chosen for the programme will work with Vedanta’s group companies, which operate across three continents. These companies will have access to Market Access and Commercial Pathways, Capacity and Resources, Domain Expert Advisory, and Strategic Investments.
Vedanta is also venturing in the semiconductor manufacturing business. According to chairman Anil Agarwal, the business is finalising the location for its $20 billion semiconductor and plans to release the first chip in two years.
Vedanta is tackling the environmental issues by complying with ESG norms and coming out of stuck ventures like sale of plant in Chennai. Company has a strong corporate governance and leadership is working to create value for stakeholders.