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Calls to amend UK Financial Services Bill to ensure human rights standards

Richard — Wed, 23 May 2012 17:07:42 +0000

Lisa Nandy MP and John McDonnell MP called yesterday for the British Government’s Financial Services Bill to be amended so that companies wishing to list on UK Stock Exchanges would need to report on their human rights record.

Repeated reference was made to London Mining Network’s report, published in March 2012, on UK listed mining companies and the need for stricter regulation (see http://londonminingnetwork.org/docs/lmn-the-case-for-stricter-oversight.pdf) and in particular to mining companies Vedanta and Monterrico Metals.

Financial Secretary to the Treasury Mark Hoban MP did not accept the suggested amendment but suggested that John McDonnell MP and London Mining Network seek a meeting with the Minister responsible for corporate governance and the Financial Reporting Council.

The text of the debate can be found at http://www.publications.parliament.uk/pa/cm201213/cmhansrd/cm120522/debtext/120522-0002.htm#12052240000080 or viewed at: http://www.parliamentlive.tv/Main/Player.aspx?meetingId=10771&st=17%3a03%3a20&player=silverlight (starting at 17.40).

Vedanta deprived of awards

Richard — Wed, 23 May 2012 17:02:45 +0000

Vedanta Aluminium’s Indian safety record is tarnished: Now it won’t get two prestigious UK awards

A subsidiary of controversy-dogged UK mining company Vedanta Resources has suffered not just one – but two – serious setbacks in its attempts to portray itself as “accident free”. On Tuesday 15 May, Vedanta Aluminium Ltd (VAL) was to receive the prestigious Silver Award from the UK’s Royal Society for the Prevention of Accidents (RoSPA) at a ceremony in Birmingham, Britain’s second largest city. This was based on claims, made by VAL to RoSPA, that no-one had been seriously injured at its Lanjigarh bauxite refinery in Orissa during the last reporting period. But, in fact, a VAL employee died in a fire at the Lanjigarh site last month, and several others were injured. Now, in response to vociferous criticisms by activists in India and the UK, including colleagues in London Mining Network, RoSPA has withheld the award, pending further investigation of the company’s safety record. The British Safety Council (BSC) has also suspended making a similar award to VAL at a gala banquet to be held in London last Friday.

See http://www.minesandcommunities.org/article.php?a=11702.

A Third Strike finds Anil Agarwal “Out”: London Calling on new humiliation of Vedanta boss

Yet again, London-listed Vedanta Resources, and its head honcho Anil Agarwal, have fallen foul of international standards. Last week, its VAL subsidiary in Orissa had prestigious awards withdrawn – almost at the last minute – by two UK safety watchdogs. Now we learn that two global industry organisations also pulled their nomination of Mr Agarwal on learning about his company’s sullied record – this time as a “leader” in promoting “business ethics”.

See http://www.minesandcommunities.org/article.php?a=11714.

Goan farmers fear environmental disaster, courtesy Vedanta

Richard — Wed, 23 May 2012 17:00:21 +0000

London-listed Vedanta Resources’ iron ore subsidiary, Sesa Goa, is the biggest mining company in India’s internationally-renowned “holiday state”. Most tourists are blissfully unaware of the company’s impacts. But, for many Goan farmers, the massive overburden dumps created by Sesa Goa aren’t just eyesores. They form precarious mountains of potentially toxic mud which bleed onto crops, smother vegetation, and contaminate water sources.

See http://www.minesandcommunities.org/article.php?a=11707.

Vedanta charges ahead in India

Richard — Fri, 11 May 2012 17:15:34 +0000

London-listed Vedanta Resources has yet again fallen foul of Indian law. Its Sesa Goa subsidiary is finally to be prosecuted for alleged fraud connected with iron ore trading. Meanwhile, residents in Goa itself accuse Vedanta of seeking to build a new pig iron smelter under the guise of expanding an existing, highly polluting, plant.

Yet another group of government workers has taken umbrage at the prospect of a deal with Vedanta – this time in Orissa. Last month, staff at child nutrition centres in Karnataka revolted against a move to place the UK company in charge of a government feeding programme. Now, employees at state-run Nalco are protesting against the prospective sale of their alumina to Vedanta’s Jharsaguda smelter. The workers maintain that Nalco “will not only lose precious foreign exchange leading to fall in its profit, it would also pave the way for Nalco’s privatisation. We will not allow this to happen”.

See http://www.minesandcommunities.org/11674.

See also Vedanta pollution: 22 died of TB in a village, allege tribals, http://www.cgnetswara.org/index.php?id=10774.

Vedanta casts more oil on troubled Indian waters

Richard — Fri, 04 May 2012 19:13:18 +0000

Ever since its triumphant listing on the London Stock Exchange in December 2003, Vedanta Resources has moved several big steps forward, yet suffered several setbacks at the same time.

Last month, the company announced it was exploring for iron ore in Liberia. This came just as a court challenge was made to Vedanta’s take-over of Cairn India, which granted the UK outfit access to the country’s most prospective oil field.

Vedanta has also just taken control of a major child nutrition programme in Karnataka, despite accusations that the move is illegal. It’s also been vigorously contested by the very workers responsible for the scheme.

See http://www.minesandcommunities.org/article.php?a=11659.

Vedanta’s PR Campaign Backfires in India

Richard — Wed, 25 Apr 2012 14:01:10 +0000

On a recent visit to Bhubaneswar, the capital of the large eastern state of Odisha, I found the airport plastered with advertisements and slogans expressing the nurturing, socially conscious side — caring for the poor, growth with inclusive values, creating happiness — of the many steel and aluminum companies that have major operations in one of India’s poorest but most mineral-rich and business-friendly states.

The most prominent voice in this cluster belonged to Vedanta, a London Stock Exchange-listed “globally diversified natural resources group with wide-ranging interests in aluminium, copper, zinc, lead, silver, iron ore, oil and gas and power,” headed by Anil Agarwal, one of India’s richest and most controversial businessmen.

Read about what the advertisements did not say…

See http://www.bloomberg.com/news/2012-04-24/mining-company-s-pr-campaign-backfires-in-india.html.

Once more into the breach – Vedanta

Richard — Wed, 25 Apr 2012 13:59:46 +0000

UK company brazenly flouted construction rules

Two and a half years ago, Vedanta’s BALCO subsidiary was accused of illegally constructing a coal-fired power plant whose chimney collapsed, killing at least forty two workers in the Indian township of Korba, Chhattisgarh. Critics claim the UK-listed company then proceeded to build a replacement plant without obtaining necessary permits.

Last weekend, these allegations were confirmed by documents obtained under India’s Right to Information Act, leading the mayor of Korba to declare: “We have strongly objected and sought to dismantle the illegal construction in the past. Notices have been issued to Balco repeatedly and stiff fines imposed. Better speak to the police why no action has been taken after the complaints were lodged”.

See http://www.minesandcommunities.org/article.php?a=11651.

Indian minister halts fresh Vedanta bid to mine Niyamgiri

Richard — Wed, 25 Apr 2012 13:58:03 +0000

India’s environment minister has ordered that the proposal by UK-listed Vedanta to expand its Orissa alumina refinery six fold, be held in abeyance.

The decision seems effectively to put the highly-controversial Nyamgiri mine project on indefinite hold.

However, while clearly describing the ruses employed by Vedanta to get both projects officially approved, a regional peoples’ organisation issues a stark warning: “..Vedanta might try all other tricks to accomplish its dirty agenda…[It] might find a back door [by coming] up with a joint venture project with L&T to mine Kutru Mali and Silji Mali near Kashipur to feed its Lanjigarh plant…”

See http://www.minesandcommunities.org/article.php?a=11646.

London Calling reveals Vedanta son’s mission to bring health and happiness to India’s rich

Richard — Wed, 25 Apr 2012 13:56:40 +0000

Yet another junior member of the notorious Anil Agarwal clan has spread their wings with the blessing of the pater familias. Last month, the Vedanta Resources’ executive chairman’s daughter was revealed as leading the company’s “Happiness” campaign. Now, Anil’s son Agnivesh is (wait for it!) investing in a sophisticated, hi-tech “health care” company, previously unconnected with Vedanta or its Sterlite subsidiary.

See http://www.minesandcommunities.org/article.php?a=11637.

Indian tribe stands firm as Vedanta mine appeal adjourned

Richard — Thu, 12 Apr 2012 14:55:27 +0000

One of the world’s most controversial mines is back in the spotlight after hundreds protested against renewed efforts to mine India’s Niyamgiri Hills. Dongria Kondh and Niyamgiri supporters held their own ‘public hearing’ in Orissa state, where they restated their resolve not to allow mining on their sacred mountain. The meeting coincided with a Supreme Court appeal in Delhi, which sought to overturn a 2010 ruling preventing UK mining company Vedanta from building an open-pit bauxite mine in the Niyamgiri Hills. See http://www.survivalinternational.org/news/8253.

See also Indian tribe’s Avatar-like battle against mining firm reaches supreme court, http://www.guardian.co.uk/world/2012/apr/08/indian-tribe-avatar-supreme-court?newsfeed=true

and Court to rule on mining plan, http://www.independent.co.uk/news/business/news/court-to-rule-on-mining-plan-7626978.html.

India loses $210bn in coal sales in “mother of all scams”

michaela — Thu, 05 Apr 2012 10:03:14 +0000

Vedanta, Tata, ArcelorMittal and Adani are among a hundred companies, said to have benefited from the “fixing” of recent Indian coal contracts – to the tune of US$210 billion. Indian Prime Minister, Manmohan Singh, has argued that newspaper reports on the “scam” are “misleading”. However, there are allegations that Tata had engineered the diversion of coal resources from state-owned Coal of India Ltd itself. At a recent meeting, convened by the National Alliance of Peoples’ Movements, 500 people from Bihar and Uttar Pradesh highlighted their own struggles against destructive coal-fired power plants, demanding the revocation of an “illegal clearance” granted to Adani Thermal.

See http://www.minesandcommunities.org/article.php?a=11578&l=1.

Vedanta’s girl has got the “X Factor”!

michaela — Thu, 05 Apr 2012 10:00:57 +0000

Vedanta Resources’ cynical campaign, to create an impression of “happiness” among communities impacted by its destructive activities, has been widely ridiculed. Now, it turns out that Vedanta’s supremo, Anil Agarwal, has been grooming his own daughter to spread the corporate guff. Meanwhile, India’s Serious Fraud Office has concluded that Vedanta’s subsidiary, Sesa Goa, did not infract rules on the invoicing of its iron ore exports. And, in a further boost to the company’s fortunes, Vedanta’s full take-over of its Hindustan Zinc subsidiary now looks close to fruition.

See http://www.minesandcommunities.org/article.php?a=11588&l=1.

Capitalism: a Ghost Story

michaela — Thu, 05 Apr 2012 09:56:02 +0000

Mukesh Ambani is personally worth $20 billion. He holds a majority controlling share in Reliance Industries Limited (RIL), a company with a market capitalisation of $47 billion and global business interests that include petrochemicals, oil, natural gas, polyester fibre, Special Economic Zones, fresh food retail, high schools, life sciences research and stem cell storage services. RIL is one of a handful of corporations that run India. Some of the others are the Tatas, Jindals, Vedanta, Mittals, Infosys, Essar and the other Reliance (ADAG), owned by Mukesh’s brother Anil.

See http://www.outlookindia.com/article.aspx?280234#.T3Nq10HdOO5.email.

Which are the world’s “most controversial” mining companies?

michaela — Thu, 05 Apr 2012 09:53:17 +0000

A new report on the world’s “most controversial” mining firms has named and shamed ten companies, after comparing their performance against the UN Global Compact and other environmental, social and governance principles. The report from Zurich-based RepRisk (a “dynamic business information firm” aimed at investors) emphasises that the risks relate to the companies “access to capital and licenses to operate”.

Top of the list is Alpha Natural Resources, followed by Newmont Mining and Glencore International. The other Top Ten companies evaluated by RepRisk were: BHP Billiton (4th); Freeport McMoran (5th); Rio Tinto (6th); Barrick Gold (7th equal); Anglo American and Vedanta Resources (ranked 9th equal).

See http://www.minesandcommunities.org/article.php?a=11599.

India: Iron fists in dubious gloves

michaela — Fri, 16 Mar 2012 22:57:34 +0000

The Indian state of Goa has pledged to close down all illegal iron ore mines. That’s welcome news, except that some “legal” outfits – such as Vedanta’s Sesa Goa – have also been accused of profiting from illegal operations. Meanwhile, the world’s second largest iron ore exporter, Rio Tinto, is set to invest US$2 billion in its Orissa iron ore project, claiming it’s already “working with local communities” to secure a social license.

See http://www.minesandcommunities.org/article.php?a=11552.