UPDATE 1-Vedanta Resources CEO sees capex rising to $1 bln this year

  • Reuters
  • Stock Market News
UPDATE 1-Vedanta Resources CEO sees capex rising to $1 bln this year
Credit: © Reuters.

(Adds CEO quote, detail, share price movement)

May 12 (Reuters) - Mining and energy group Vedanta Resources Plc VED.L Chief Executive Tom Albanese said he expected capital expenditure to rise to $1 billion this year, driven partly by the company's investment at its Gamsberg zinc mine.

Albanese said the company would spend about $200 million at the mine, located in South Africa. Vedanta spent $16 million at the mine last year.

Vedanta, which produces iron ore, copper , aluminium, zinc and oil, has been hit hard by falling commodities prices that have added to the pressure the company is facing due to its immense debt pile.

Zinc prices, however, are expected to recover as mines close and production is cut. are seeing a progressive tightening in zinc fundamentals," Albanese said on a media call.

The company said its full-year core profit fell 37.5 percent to $2.34 billion, and cut its total dividend by more than half to 30 cents. Revenue fell 16.6 percent to $10.74 billion.

Shares in the company were down 1 percent at 376.2 pence at 0801 GMT on the London Stock Exchange, underperforming a flat FTSE 350 Mining index .FTNMX1770 .

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