Vedanta stopped in its tracks by Indian Supreme Court

But it’s only a partial victory warns ActionAid

23/11/07: The Indian Supreme Court's decision to bar UK-based Vedanta Resources from mining bauxite on Niyamgiri mountain in Orissa is only a partial victory for the tribal communities who depend on the mountain's forests for their survival, warned ActionAid today.

Local campaigners, supported by ActionAid, have maintained that Vedanta's proposed bauxite mining and aluminium processing activities in Lanjigarh, Orissa, would have a devastating impact on the ecology of the mountain. It would also destroy the way of life of thousands of traditional indigenous Adivasi people.

ActionAid says that Vedanta Resources and the Orissa Mining Company should now abandon plans to mine bauxite on Niyamgiri.

It urges the government of India to take necessary steps for discouraging such plunderous loot of mineral wealth, which leads to environmental degradation and gross human rights violations.

The Court has allowed an opening for Vedanta to resubmit a proposal to mine in the area dependent upon the company fulfilling a number of criteria. These include the establishment of an Indian joint venture to ensure the income generated stays in India, and the provision of environmental and social compensation agreements under a so called “special purpose vehicle”.

ActionAid India’s Director Babu Matthew welcomed the court’s decision but said that the charity was very apprehensive about the proposed compensation levels and would seek a court order for a more scientific cost benefit analysis.

“Any mining in Niyamgiri will create two kinds of catastrophe,” Matthew said. “It could cause irreversible, ecological damage. No amount of money can ever substitute for the destruction of plant life, animal life and the environment. It will also cause death and destruction of tribal peoples on a genocidal scale.”

ActionAid UK spokesperson Julian Oram said: "For four years, Vedanta has ridden roughshod over tribal villagers’ rights to their land and traditional way of life. 

“The Supreme Court decision should serve as a red light to the company’s investors that Vedanta’s disregard for communities and the environment also represents a financial risk to shareholders.”

ENDS

Notes

The court has instructed Sterlite Industries and the Orissa government to establish a “special purpose vehicle” giving:

·         Rs 55 crore for Net Present Value for forest destruction

·         Rs 50 crore for wildlife management plan

·         Rs 10 crore or 5% of profits annually before tax (whichever is more) from mining projects all over the country to the Orissa government.

·         Rs 12.20 crore for tribal development

·         A list of people the project will absorb on a permanent basis.

ActionAid is a leading international development charity working in over 40 countries to end poverty and injustice.