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Vedanta’s very embarrassing silence

Richard — Fri, 30 Jul 2010 13:22:26 +0000

Imagine it: a room full of suits in London’s austere and business-like Institute of Civil Engineers, engaged in a passionate debate about religion. That was the scene on Wednesday at the annual general meeting of the London-based and LSE-listed mining company Vedanta, which has been trying for years to get permission to mine bauxite on Nyamgiri, a mountain in the east Indian state of Orissa.

Vedanta has long been criticised by activists for what they claim is its cavalier attitude to environmental protection, worker safety and other issues at its operations in Africa and India, and every AGM since it was listed on the London Stock Exchange has been punctuated by protests. But as the Indian government comes close to issuing its final verdict on the mine, the protests have become noisier and more impassioned.

See http://www.independent.co.uk/opinion/commentators/peter-popham-vedantas-very-embarrassing-silence-2039015.html.

Vedanta Resources: the world’s most hated company?

Richard — Thu, 29 Jul 2010 11:09:23 +0000

Protesters descend on FTSE 100 mining group’s AGM – but chief executive describes criticism as ‘lies’

Vedanta Resources’ highly successful financial year, and its annual meeting, were overshadowed yesterday when more than 100 protesters, some dressed as characters from James Cameron’s Avatar film, came to object to what they say is the company’s shocking human rights and environmental record.

Police stopped protesters storming the meeting, as pressure groups and celebrities lined up to attack the mining group’s record over its treatment of the Dongria Kondh tribe, which, they claim, will be devastated if Vedanta’s planned bauxite mine in India’s Orissa state goes ahead.

See http://www.independent.co.uk/news/business/analysis-and-features/vedanta-resources-the-worlds-most-hated-company-2037977.html.

Vedanta meeting disrupted by demonstration

Accusing the Vedanta mining company of destroying the Niyamgiri mountain worshipped by indigenous Dongria tribes of Orissa, around 250 supporters of a campaign group ‘Foil Vedanta’ held a vociferous demonstration during its annual general meeting here. The demonstrators last evening carried placards saying ‘Anil Agarwal, Blood on Your hands’, ‘Who killed Arsi Majhi? Vedanta, Vedanta’. They claimed that Agarwal, Chairman of Vedanta, was a “Wanted Criminal”.

See http://www.deccanherald.com/content/84621/vedanta-meeting-disrupted-demonstration.html.

Anti-mining protesters ambushed Vedanta’s AGM

New Delhi, Lanjigarh- For the fourth year in a row, anti-mining protesters ambushed the Annual General Meeting (AGM) of Vedanta Resources, a London-based FTSE 100-listed company. The AGM was held in London on Wednesday evening. While in the last three years, Dongria Kondh (tribals from Orissa) representatives protested against the mining of their sacred hill in the state, on Wednesday it were blockbuster Avatar’s aliens, Na’vi, and fashion icon Bianca Jagger.

At the heart of this cross-continental row is the bauxite-rich Niyamgiri hill in the Lanjigarh area of dirt-poor Kalahandi district. While Anil Agarwal-promoted Vedanta Resources wants to mine the hill through its subsidiary companies for its aluminum refinery in Lanjigarh, located 500 km southwest of Bhubaneshwar, and “develop the backward area,” tribals and activists feel that it will displace thousands and leave them without any livelihood opportunities.

See http://www.hindustantimes.com/Anti-mining-protesters-ambushed-Vedanta-s-AGM/Article1-579436.aspx.

Vedanta Meeting Disrupted By Avatar-Inspired Protest

Vedanta Resources Wednesday faced mounting pressure about its human rights and environmental record in India as protesters, including celebrities such as Bianca Jagger, swamped its annual general meeting.

See http://blogs.wsj.com/source/2010/07/28/vedanta-meeting-disrupted-by-avatar-inspired-protest/.

Vedanta’s bad press risks undermining its image

There are many ways to measure best practice in social responsibility, but, as a rule of thumb, if Bianca Jagger, Joanna Lumley, Michael Palin and the Na’avi are against you, you have a problem.

See http://www.ft.com/cms/s/0/474d1a70-9a7e-11df-87fd-00144feab49a.html.

Vedanta’s bad press risks undermining its image

There are many ways to measure best practice in social responsibility, but, as a rule of thumb, if Bianca Jagger, Joanna Lumley, Michael Palin and the Na’avi are against you, you have a problem.

See http://www.ft.com/cms/s/0/474d1a70-9a7e-11df-87fd-00144feab49a.html.

Channel 4 News Wednesday 28 July

Please forward to about 4 minutes into this clip for coverage of protests against Vedanta at the annual meeting in London:
http://link.brightcove.com/services/player/bcpid62744310001?bclid=207400659001&bctid=292372127001.

Question over funds for investment in Vedanta

Richard — Wed, 28 Jul 2010 09:37:55 +0000

Today, shareholders will be attending the AGM of Vedanta Resources, a UK-listed mining company whose operations in Orissa, India, have been the subject of international criticism. An existing alumina factory at the foot of the Niyamgiri hills is alleged to be polluting waterways and damaging crops, while plans to build a bauxite mine at the top of the hill threaten massive disruption to the lives of around 8,000 Dongria Kondh tribespeople.

See http://www.guardian.co.uk/business/2010/jul/28/question-over-funds-for-mining.

Motion against Vedanta in UK Parliament

Richard — Sat, 24 Jul 2010 08:53:26 +0000

Members of the British Parliament have proposed an Early Day Motion (EDM) on Vedanta. If you live in the United Kingdom, please encourage your own MP to sign EDM 552.

EDM 552

VEDANTA RESOURCES PLC20.07.2010

Williams, Hywel

That this House notes the unethical practices of Indian-owned Vedanta Resources and its subsidiaries, including the destruction of the homes, culture and livelihood of the Kond Adivasi tribal people and the devastating environmental impact of the companies’ activities; welcomes recently announced investigations by the Indian Minister of Environment and Forests and the Chief Secretary of the Indian state of Odisha into the rights of the Dongria Kondh affected by plans for a bauxite mine; recognises and supports the rights of indigenous peoples and tribal groups; welcomes the decision of Dutch pensions firm PGGM to sell its shares in the company because Vedanta has made `insufficient improvements with regard to human rights and the environment’; further notes that Vedanta Resources and its subsidiaries are on the Norwegian government’s list of banned companies and that the Church of England, Joseph Rowntree Charitable Trust, Marlborough Ethical Fund and Millfield House Foundation have sold their shares in the company; and believes that plans for mining on sacred land should be ended forthwith.

To see which MPs have signed the EDM, see http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=41509&SESSION=905.

Forest Ministry free to say ‘no’ to Vedanta

Richard — Fri, 23 Jul 2010 09:16:54 +0000

The Attorney-General of India has given the government a free rein to refuse forest clearance for Vedanta Aluminium’s bauxite mining proposal in the Niyamgiri Hills of Orissa.

The project has been put on hold, while a committee led by NAC member N.C. Saxena examines how it would impact the life, livelihood and culture of Dongria Kondhs, a notified tribal community living in the region, as well as a possible impact on biodiversity and wildlife. Forest Conservation Act clearances for diversion of 660 hectares of land have not been granted to Vedanta and its partner, the Orissa Mining Corporation.

See http://www.thehindu.com/news/national/article528834.ece.

EIRIS recommends governance steps to tackle investor concerns at Vedanta

Richard — Fri, 23 Jul 2010 09:15:12 +0000

Responsible investment research specialists, EIRIS, yesterday published a series of best practice recommendations designed to address investors’ concerns about environmental, social and governance (ESG) practices at Vedanta Resources (the FTSE 100 mining Company with interests in India and around the world).

Vedanta Resources is facing growing international scrutiny from investors and NGOs for its plans for a bauxite mine and the expansion of its Lanjigarh alumina refinery. Responsible investors have been engaging with the Company and some have disinvested because of concerns over stakeholder-related risks.

EIRIS’ report Improving Vedanta Resources’ governance of responsible business practice provides details of allegations against the company relating to human rights issues, indigenous rights, bribery and corruption and also environmental issues.

The report also draws on best practice from amongst other mining companies who face similar ESG risks in order to propose ways in which Vedanta can strengthen its approach to responsible business practices.

See http://www.eiris.org/media.html#Vedanta.

The report can be downloaded from http://www.eiris.org/files/research%20publications/EIRISVedantaReport2010.pdf.

Vedanta subsidiary wants land for steel production

Richard — Fri, 23 Jul 2010 09:12:38 +0000

Sesa Goa to buy land in Orissa, Jharkhand; plans to set up steel plant

India’s largest private sector producer and exporter of iron ore, Sesa Goa Ltd, is acquiring land in the eastern states of Jharkhand and Orissa with an eye on manufacturing steel, managing director P.K. Mukherjee said on Tuesday.

See http://www.americanchronicle.com/articles/yb/147653770.

Vedanta faces protests at AGM over ethical record

Richard — Thu, 22 Jul 2010 08:39:38 +0000

The environmental and human rights record of the miner Vedanta Resources will be put under the spotlight during its annual meeting next week, when the India-based group will face protests from pressure groups and an attempt by activist shareholders to remove members of the board.

Vedanta, the world’s biggest zinc producer, declined to comment yesterday on reports that the shareholder lobby group Pirc will propose the removal of Naresh Chandra, a non-executive director who chairs the London-listed group’s health, safety and environment committee and its remuneration committee. Mr Chandra, a former Indian home secretary and ambassador to the United States, joined Vedanta’s board in 2004. He was not available for comment yesterday.

Pirc, which also called on shareholders not to back the re-election of directors Euan McDonald and Aman Mehta, said: “The failure of the group to engage with explicit investor-led [environmental, social and governance] concerns over the impact of group activities… [is] evidence of a lack of competent oversight, in our view.”

See http://www.independent.co.uk/news/business/news/vedanta-faces-protests-at-agm-over-ethical-record-2031208.html.

PIRC Raises Concerns On Vedanta Corporate Governance

LONDON -(Dow Jones)- Shareholders of U.K.-listed miner Vedanta Resources PLC (VED.LN) should oppose the election of three non-executive directors because of their role in the company’s poor handling of environmental, social, and governance issues, investor advisory group PIRC said Tuesday.

This marks the latest in a string of public outcries against the firm’s corporate governance record. Dutch pension manager PGGM Investments two weeks ago joined some of Europe’s biggest public investors in selling out of Vedanta on human-rights grounds, even though Vedanta is one of the strongest gainers in the FTSE-100 index over the past 12 months.

PIRC recommended that shareholders vote against the election of senior non-executive director Naresh Chandra, chair of the India-focused miner’s healthy, safety and environment committee and the remuneration committee.

Further delays for Vedanta

Richard — Wed, 21 Jul 2010 15:11:32 +0000

Third blow for Vedanta in a month as mine faces new probe

In the third major blow to Vedanta in a month, the Chief Secretary of the Indian state of Odisha (formerly Orissa) has ordered a new investigation into the rights of the Dongria Kondh tribe affected by Vedanta Resources’ controversial bauxite mine. The announcement comes just two weeks after the Indian Minister of Environment and Forests ordered an investigation on the same topic, and ten days after leading Dutch investment firm PGGM sold its stake in the company over human rights concerns.

See http://www.survivalinternational.org/news/6224?utm_source=E-news+%28English%29&utm_campaign=64ecdb7bd3-July_e_news7_15_2010&utm_medium=email.

Vedanta’s Niyamgiri project delayed as Orissa goes for fresh forest survey

The London Stock Exchange listed Vedanta Resources has to wait for some more time to source bauxite from the Niyamgiri mines for its 1 million tonne alumina plant at Lanjigarh as the state government has decided to conduct a fresh survey of the forest area to settle the claims under Forest Right Act.

See http://www.financialexpress.com/news/vedantas-niyamgiri-project-delayed-as-orissa-goes-for-fresh-forest-survey/645029/.

Formal Human Rights Complaint re HudBay in Guatemala

Richard — Wed, 21 Jul 2010 15:08:59 +0000

A high-level Canadian civil society investigation into alleged grievous human rights abuses at a nickel mine in Guatemala in 2007 has confirmed that local people were viciously attacked by police and mine security, forcibly evicted from their homes, and that several women were raped. Although the accusations were submitted to the Canadian ambassador in Guatemala back in May, no response had been received. Now Canada’s foreign minister has been urged to carry out its own investigation into the charges.

The company responsible for operating the mine is HudBay (formerly Skye Resources) which is part-owned by Vedanta Resources plc in London.

See http://www.minesandcommunities.org/article.php?a=10247.

Urgent Action: Shooting of Community Leader Opposing Goldcorp Mine

Richard — Wed, 21 Jul 2010 15:07:27 +0000

Goldcorp is a Canadian company but among its major investors are British-based AXA Investment Managers UK Ltd (US$4.3 million), Blackrock Commodities Income Trust plc, and City Natural Resources High Yield Trust PLC, according to the document From Money to Metals (http://moneytometal.org/index.php/From_Money_to_Metals) by mining researcher Roger Moody.) Opponents of the mine are being violently targeted.

See http://www.minesandcommunities.org/article.php?a=10240.

Philippine Bishops want Truth Commission vs environmental crimes

Richard — Wed, 21 Jul 2010 15:05:51 +0000

The Philippines has a new President. He is the son of the national heroine, ‘Cory’ Aquino. After the pro-mining policy of previous President, Gloria Macapagal-Arroyo, there are hopes that “Noynoy” (as he is popularly known) will literally bring in a new regime. He has promised a ‘Truth Commission’ over his predecessors’ corruption, and the Catholic Bishops are asking that this be extended to looking at environmental crimes, most notably previous mining disasters. They are also calling, once again, for the repeal of the 1995 Mining Act. This would affect London-listed Xstrata.

See http://www.minesandcommunities.org/article.php?a=10245.

Xstrata tries to get round opencast mining ban in Philippines

Richard — Wed, 21 Jul 2010 15:04:51 +0000

AMID keen interest by big firms in the country’s mineral resources, the Philippines Government has stepped into the controversy created by a local government unit’s (LGU) decision to ban open-pit mining in the southern Philippines. The Department of Environment and Natural Resources (DENR) said that President Benigno Aquino 3rd already gave the agency the mandate to pursue a compromise solution on the issue.

See http://www.manilatimes.net/index.php/business-columns/21454-malacanang-orders-win-win-solution-to-open-pit-mining-row.

Xstrata approves US$1.47bn Antapaccay copper project in Peru

Richard — Wed, 21 Jul 2010 15:03:57 +0000

Anglo-Swiss mining group Xstrata’s board has approved an investment of US$1.47bn to develop the Antapaccay copper project as a brownfield expansion to the Tintaya red metal mine in southern Peru’s Cuzco region. Peruvian authorities recently approved the project’s EInvironmental Impact Statement.

See http://www.bnamericas.com/news/mining/Xstrata_approves_US*1,47bn_Antapaccay_copper_project/195034239.

West African iron ore: world’s biggest mine rush

Richard — Wed, 21 Jul 2010 15:03:03 +0000

“The three names dominating about 75% of global seaborne iron ore, Vale, Rio Tinto, and BHP Billiton, are full force involved in West African iron ore.”

London-listed African Minerals has announced further significant Chinese investment in its Tonkolili, Sierra Leone, iron ore project, now by Shandon g Iron & Steel, which plans to put USD 1.5bn into mine and infrastructure development. This will gain the State-owned Chinese steelmaker a 25% equity stake in Tonkolili, and an offtake of 10m tons a year of seaborne iron ore, at discounted rates.

The latest deal in West African iron ore, which has captured billions of dollars of mining investment in the past few months, once again illustrates China’s long term commitment to financing resources in specified minerals and commodities.

At the same time, the deals show that not even the world’s biggest mining companies have sufficient individual resources to cover all the risks in these investments. Even the capital required for a new world class iron ore mine seems to be beyond the biggest individual miners. By iron ore standards, African Minerals is a minnow, and needed partners from day one. On 6 January African Minerals announced a deal with China Railway Materials Comme rcial Corporation (CRM); overall, African Minerals/Tonkolili have now agreed to sell up to 35m tonnes of iron ore a year, to CRM and Shandong Iron and Steel. But it will take years before this level of output is possible, and many more billions of dollars worth of investment. Tonkolili may have dreams of one day producing 70m tonnes a year of iron ore, but by that stage, capital investment would likely be approaching the USD 10bn mark. African Minerals currently holds a market value of USD 1.8bn.