VEDANTA IN LOSSES

Vedanta Resources has posted a net loss for the six months ended in September, as it becomes the latest mining company to reveal the extent to which weaker commodity prices have hit the sector.

The London-listed mining conglomerate said it slipped into a $217m loss in its fiscal first-half, down from a $174m profit from the same period in 2012, as it cautioned of “moderating” growth in crucial developing economies, including India and China.

Revenues slipped 17 per cent, from $7.4bn to $6.2bn, against a backdrop of slower global growth rates and volatile commodity and currency markets.

Stripping out certain one-off items, operating profit was down 23 per cent to $1.1bn, from $1.4bn in the first half of 2012.

The company also reported record levels of oil and gas production and said its cost control programme was “strong.”

In its outlook statement, Vedanta said:

Growth rates have moderated in most developing economies, including India and China

The mining industry is currently facing headwinds in the form of price pressures and also, our sustained focus on operational and cost efficiency will help mitigate these pressures