Vedanta Resources is a diversified and integrated metals and mining group with annual sales of $1.9bn. Its principal operations are located in India, where it has a major market share in each of our main metals: aluminium, copper, zinc and lead. There are also substantial copper operations in Zambia and 2 copper mines in Australia.

            Red = 25 day moving average.           Green = 200 day moving average.

                        

Copper - (6 month graph)

SALES PER ACTIVITY (Data as of 31/03/2006)

Copper:      60%
Zinc:         24%
Aluminium:  12%
Others:       4%

This is relevent because Vedanta has substantial copper mining involvement in Zambia.




Dow Jones Newswires - 18 Aug 2006 - By Nicholas Bariyo

Zambia Copper Mines Hike Output Amid Escondida Shutdown


Zambian copper miners are taking advantage of high copper prices on the international market to increase copper production, seen by the government as a key driver of continued economic growth.

An ongoing strike at Chile's Escondida, the world's largest privately-owned copper mine, has caused world copper prices to rise from already increased levels.

Zambian copper mining companies are now well placed to hike output, having settled a series of damaging labor disputes, while government safeguards are in place to secure uninterrupted energy supply to key mining areas as economic growth stretches the country's energy infrastructure.

Zambia's 2006 copper output is already forecast at 600,000 metric tons compared with 440,000 tons last year, with copper and cobalt export earnings expected to reach over $2 billion compared with $1.5 million in 2005. A review of the tax regime in the mining sector is set to further increase government revenue.

"Operations in the sector are going on smoothly as companies seek to produce more copper", said an official at Zambia's Ministry of Mines and Minerals Development by telephone, noting that the Escondida unrest in Chile has contributed hugely to a renewed drive to increase production.

Late Thursday, Escondida, majority-owned by BHP Billiton (BHP), said that it was stopping production and suspending negotiations with striking workers. On the LME early Friday, three-month copper was trading at $7,475 a metric ton, up $170/ton from late Thursday, on the back of the shutdown.

Zambia has also had its share of labor disputes in the copper mining sector. Following a June labor agreement between workers at the country's leading copper producer, Konkola Copper Mines (KCM) and management, seen as a breakthrough in industrial relations in the country's mining industry, the official said that he now sees output rising for the remainder of the year. The KCM deal has allayed fears of a repeat of nine days of industrial action last year which cost KCM up to 7,500 metric tons of copper and resulted in the company failing to meet its 2005 output target. According to Augustine Seyuba, KCM's vice president in charge of corporate communications, the company is now on course to meet its 2006 copper output target of 200,000 metric tons.

KCM is not the only copper producer to experience labor unrest. In July there was serious unrest and shootings at Chinese-owned copper producer Chambishi Mining Plc. The unrest was resolved inside a week and production is now at normal levels, according to Albert Mando, General Secretary of Zambia's National Union of Miners and Allied Workers. The Union has since sought peaceful means to resolve issues surrounding pay and conditions, Albert said.

Still, miners at Chambishi are among the lowest paid in the sector, according to union officials, and there is lingering resentment directed at owners China Nonferrous Metal Mining Group Co. Ltd., accused by some of exploiting a weak domestic regulatory regime to offer low wages. For now, though, copper ore output is running at a normal 25,000-30,000 tons a year at Chambishi.

Meanwhile, increased production is expected from new mining operations such as the Kanshashi mine and the Mulyashi mine. A number of smaller copper mines have been hiking output since 2005. Luanshya Copper Mine, owned by Swiss-based J&W Investments, is targeting output of up to 67,500 metric tons of copper this year, up from 50,000 tons in 2005. With big mining companies like Mopani and Konkola Copper Mines all overcoming operational disruptions, output is set to grow across the board.

"The ongoing activities in (copper) mining suggest that the sector is poised to be once again one of the major contributors to the future growth of our economy," said Caleb Fundaga, Governor, Central Bank of Zambia, in a recent statement.

According to the central bank, Zambia's January-June 2006 copper output increased by 24.1% to reach 250,744 metric tons, compared with 201,993 tons in the year-earlier period, resulting from increased investment in the mining sector and higher world copper prices. Data from the central bank indicates that the country earned $1.38 billion from copper and cobalt exports in the first six months of 2006. Export receipts from copper and cobalt account for 83% of total Zambian export earnings.

According to the central bank, Zambia's economic growth is seen at 6% this year, marking the eighth consecutive year of growth, largely driven by the recovery of the mining industry after the mass privatization of copper mines in the late 1990s.

And to continue to increase production and take advantage of high copper prices, the Zambian government has committed to enable mining companies to operate without energy supply disruptions. The Energy Regulatory Board requires that oil marketing companies keep a 15-day fuel reserve amid the closure of the country's sole oil refinery, the Indeni Oil Refinery, for refurbishment. The Indeni refinery, co-owned by France's Total SA (TOT) and the Zambian government, has faced severe reliability problems due to aging equipment. It is expected to be shut down throughout August, with shortfalls of refined petroleum products made up from increased imports.

The government has also directed the state-run power utility, Zambia Electricity Supply Corporation, or ZESCO, to import power to cover a domestic shortage largely resulting from growth in the mining sector, which consumes about 60% of the country's generated power.

While ensuring that mines can continue to operate and to increase output, the government is also seeking to increase mining tax revenues. The the Ministry of Finance is in the final stages of reviewing the tax regime of the mining sector and is expected to raise the royalty paid by mining concerns to between 2.5% and 3.0%, effective 2007, up from just 0.6%, where it has been since 2000.

Copper Falls; BHP May Replace Striking Chilean Mine Workers

By Katy Watson

Aug. 22 (Bloomberg) -- Copper prices fell as supply concerns eased after BHP Billiton Ltd. said it plans to hire workers to replace striking union members at Chile's Escondida, the world's biggest source of the metal.

Prices have more than doubled in the past year, partly because of supply disruptions. The mine is running at 40 percent to 50 percent of capacity, BHP spokeswoman Alejandra Wood said. Almost 1,900 workers rejected BHP's latest wage offer. Escondida accounted for 8.5 percent of global mining output last year.

``It's bearish for prices if they are going to stump up production,'' said Sean Corrigan, chief investment strategist at Lausanne, Switzerland-based Diapason Commodities Management SA, which overseas about $5 billion in assets.

Copper futures for December delivery fell 1.15 cents, or 0.3 percent, to $3.478 a pound on the Comex division of the New York Mercantile Exchange. A futures contract is an obligation to buy or sell a commodity at a set price for delivery by a specific date.

Copper for delivery in three months dropped $30, or 0.4 percent, to $7,620 a metric ton at 6:30 p.m. on the London Metal Exchange. Before today, prices had jumped 75 percent this year.

BHP also invited workers to agree to individual contracts. Chilean law allows strikers to negotiate separately to return to work 15 days after a strike begins. The walkout began Aug. 7.

Escondida's workers are asking for a greater slice of record profit from Melbourne-based BHP Billiton. The company will say tomorrow net income for the six months ended June 30 jumped to $6.34 billion, according to the median estimate of five analysts surveyed by Bloomberg News.


Codelco

Chile's state-owned Codelco, the world's biggest producer of the metal, will begin labor talks later this year. Analysts including John Meyer at Numis Securities in London said the Escondida strike may trigger protests.

``Mine workers are closely watching the potential for settlement at Escondida and may seek to achieve similar improvements in salary and bonus,'' Meyer said. ``BHP may be reluctant to yield to union demands on base salaries because of the knock-on effect within the industry.''

Copper inventories monitored by the LME have climbed 26 percent this month, helping to weigh down prices.

``We've seen quite a healthy build during August,'' said Nick Moore, a London-based analyst at ABN Amro Holding NV.


Demand Slowdown

Global economic growth may slow, curbing metals demand, said Stephen Briggs, an analyst at Societe Generale, one of the 11 companies trading on the floor of the LME. The metal is used in wires and pipes.

There is a ``sense growth is set to slow significantly'' in the next 12 months, he said.

German investor confidence plunged to a five-year low in August on concern rising interest rates and taxes will hamper growth in Europe's largest economy.

The ZEW Center for European Economic Research index of institutional and analyst expectations dropped to minus 5.6, the lowest since June 2001, from 15.1 in July, the institute said in Mannheim today.

Vedanta Resources PLC
23 August 2006

23rd August 2006


VEDANTA RESOURCES PLC (the 'Company')

SCHEDULE 11

NOTIFICATION OF INTERESTS OF DIRECTORS /PERSONS DISCHARGING MANGERIAL
RESPONSIBILITY AND /OR CONNECTED PERSONS

1) NAME OF COMPANY

VEDANTA RESOURCES PLC

2) NAME OF PERSON DISCHARGING MANAGERIAL RESPONSIBILITY

TARUN JAIN

3) Please state whether notification indicates that it is in respect of holding
of the shareholder named in 2 above or in respect of a non-beneficial interest
or in the case of an individual holder if it is a holding of that person's
spouse or children under the age of 18 or in respect of an non-beneficial
interest.

IN RESPECT OF HOLDING OF PERSON DISCHARGING MANAGERIAL RESPONSIBILITY NAMED IN 2
ABOVE

4) Name of the registered holder(s) and, if more than one holder, the number of
shares held by each of them. (If notified)

Tarun Jain

5) Please state whether notification relates to a person(s) connected with the
Director /persons discharging managerial responsibility and /or connected
persons named in 2 above and identify the connected person(s)

N/A

6) Please state the nature of the transaction. For PEP transactions please
indicate whether general/single co PEP and if discretionary/non discretionary

GENERAL SALE AT MARKET PRICE

7) Number of shares/amount of stock acquired

N/A

8) Percentage of issued Class

N/A

9) Number of shares/amount of stock disposed

35,000

10) Percentage of issued Class

0.012%

11) Class of security

US$0.10 ORDINARY SHARES

12) Price per share

30,000 shares at 13.48 per share

5,000 shares at 14.09 per share

Well that bit of news didn't have a lot of effect on the SP so far did It?

Price around last night's closing last time I looked.

ET So much for rumours.

I think you are short. Hope so.

S Price going up again this morning.

Fred1new.

I'm also under that impression.

I'd take that as a buy then.

Going up as I type.

Strange the market didn't think the same and SP seems to be up into current trend!!!!!

This outfit's share movements are beginning to Intrigue me.

1. Yesterday when some of the other miners were up early part of the day, VED was the last to respond.

2. Today just the opposite.

I now want out of these to free up money for other opportunities when they arise but something keeps saying "not quite yet old chap".

I know the feeling Stan.

But now the price has got over the 14 mark, I'm going to stay put.

KD.

Me to...I think, trouble Is I seem to change my mind with this lot every time I give It more thought -:)

Suppose I should just stop thinking-:)