See http://www.tehelka.com/story_main49.asp?filename=Ws260511Vedanta.asp.

See http://www.minesandcommunities.org/article.php?a=10777.

The mandatory public hearing was held by authorities to seek the consent of the villagers for the grant of environment clearance to mine coal in the region. The area’s coal reserves, estimated at 70.12 million tonnes, are spread out over 1,070 hectares in Taraimar under Dharmajaygarh block in Chhattisgarh’s Raigarh district, some 300 km from the state capital, Raipur.

The coal is needed to feed a 800 MW captive power plant of Vedanta Resources Plc-controlled Balco, in which the Central government holds 49 percent stake. The Balco (Bharat Aluminium Company) plant is located in Korba town in the state, some 80 from away from the public hearing site. 

See http://www.thestatesman.net/index.php?id=357535&option=com_content&catid=35.

25 September 2009

No firm death and injury count is yet available relating to victims of the September 23rd  disaster at UK-listed Vedanta’s power plant construction site in Korba, India, when a partly-constructed chimney collapsed on top of  a hundred or more workers.

The construction was part of Vedanta’s massive expansion of its aluminium complex in the north eastern Indian state of Chhattisgarh.

From official sources, it seems certain that at least 25 people have already died. Many others remain unaccounted for. It will take another four days for rescuers to clear the site debris, and at least two days to recover all the bodies.

A final death toll approaching one hundred (including those dying from severe injuries) seems tragically possible.

Vedanta’s alleged culpability

According to the mayor of Korba, quoted by leading Indian business news daily, the Business Standard [25 September 2009]:

* Vedanta (Balco) did not have permission from the civic authorities to construct the fatal chimney
* The Korba Municipal Corporation had earlier served notices on Vedanta for “violating the norms”
* Only a week before the disaster, a team from the Corporation visited the site and then ordered the company to stop construction; however “the company started the work again”

Meanwhile, there have been several demands by trade unionists, including the Centre of Indian Trade Unions (CITU), for the re-nationalisation of Balco [Press Trust of India, 25 September 2009].

Balco was privatised to Sterlite Industries in 2001, two years before the company registered as Vedanta on the London Stock Exchange.

Bankers’ responsibilities

In June 2009, Sterlite Industries made a US$ 1 billion bond offering, in the form of American Depositary Receipts (ADRs), aimed at raising capital for acquisitions, other corporate expenses, and to take the Indian government’s existing 49%  ownership of Balco, along with another aluminium subsidiary, Malco.

Vedanta has been trying to acquire full control of Balco for several years.

In 2006, a leading Indian research body, the V VGiri National Labour Institute indicted Balco for having broken almost all agreements made its workforce, in the five years since privatisation.

Numerous accusations of breaches in health, safety, and environmental regulations at Balco’s mining and aluminium production, have been made by Indian and international organisations over the past eight years.

The book runners behind the June 2009 offering were JP Morgan and Morgan Stanley.

Several leading European and US banks are believed to have invested.

* Note: Balco is a 51% subsidiary of Sterlite Industries India Ltd,  itself the main managed metals subsidiary of UK company, Vedanta Resources plc, which holds 59.9% of Sterlite. The majority shareholder in Vedanta is  Volcan Investments Ltd, 61.95%  owned and operated by Anil Agarwal, Vedanta’s executive chairperson, and members of his family.

For further details, please contact: Roger Moody (Nostromo Research) at: info@minesandcommunities.org

Telephone: +44 (0)20 7700 6189

See also Korba’s killing field at http://londonminingnetwork.org/2009/09/korba%E2%80%99s-killing-field/.

The safety policies of the London-listed mining giant Vedanta Resources are set to come under scrutiny after an accident at one of its sites in India killed as many as 100 people on Wednesday. The group has already been blacklisted by some investors over ethical and environmental concerns.

See http://www.independent.co.uk/news/business/news/vedanta-under-scrutiny-as-100-feared-dead-at-aluminium-plant-1792876.html.

Legal scanner on Balco chimney

The Vedanta-controlled Bharat Aluminium Company Limited (Balco) did not have the required permission to construct the chimney for its power plant that collapsed yesterday killing at least 25 people. The company had earlier constructed one chimney for its 1200-Mw power plant coming up in the aluminium complex in Korba. This was the second chimney for the plant and the aluminium major was constructing it without the required permission from the civic authorities. See:

See http://www.business-standard.com/india/news/legal-scannerbalco-chimney/371143/.

Firm’s bosses arrested as death toll mounts in India

Thirty-six workers are known to have died in the collapse of a giant chimney being built in India, but the toll is expected to rise as clearing continues. Two executives of the construction client, Bharat Aluminium Company Ltd, have reportedly been arrested as the local government launches an investigation. A state inquiry into the accident has been launched.

See http://www.ciobinternational.org/news/view/1628.

See also More than 100 feared dead in India chimney collapse and BBC coverage.

Vedanta petition
A number of people concerned about Vedanta’s operations in Orissa have drawn up a petition to the company’s investors, asking them to disinvest. See http://www.PetitionOnline.com/vedanta2/petition.html.