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printMining in Goa/ Sesa Goa - India ![]() Advalpal villagers protest against Sesa Goa mining company in front of the Company headquarters in Goa's Capital city of Panjim, June 4, 2008.
sector
mining
description
Sesa Goa is the largest iron ore producer and exporter of Goa. Since 2007 Vedanta Resources is the majority shareholder of Sesa Goa. Sesa Goa's main mining operations are at Codli and Sonshi. Sesa Goa also has other mining sites in villages such as Pissurlem in Sattari and Advalpal in Assonora. Besides mining activities in Goa, Sesa Goa is also mining in Karnataka and Orissa. Open cast iron ore, manganese and bauxite mining in Goa causes major social and environmental threats, including air pollution, atmospheric dust, water pollution and scarcity, destruction of agricultural fields, fisheries losses, human right problems, and more. Local communities and civil society groups have raised serious concerns about the impacts of mining in Goa. Read more. current status (Oct 07, 2009)
Sirigaon Litigation Advalpal Litigation companies involved
Sesa Goa Limited, is the flagship company of Sesa Group. Sesa Goa Limited earlier was an Italian company, in the mid 1990s it was taken over by the Japanese company Mitsui and in 2007 Vedanta acquired a majority share of Sesa Goa. dodgy aspects
Potential legal violations
financial institutions involved
banks
Bank of Baroda
Bank of East Asia
Bank of Tokyo Mitsubishi UFJ
- profile
Barclays
- profile
BayernLB
Chang Hwa Bank
Citigroup
- profile
Crédit Agricole CIB
DBS Bank
DZ Bank
ICICI Bank
Mizuho
- profile
Royal Bank of Scotland
- profile
State Bank of India
Sumitomo Mitsui Banking Corporation
- profile
In April 2007, Vedanta Resources acquired a 51% controlling stake in the Indian iron ore mining company Sesa Goa and made a bid for another 20%. Total investment was US$ 1,370 million (€ 1,015 million). The acquisition was financed in July 2007 by a one-year bridge loan of US$ 1,100 million (€ 815 million) and existing cash resources. The bridge loan was arranged by ABN Amro Bank (now part of Royal Bank of Scotland), Barclays, Citigroup and ICICI Bank. Fifteen banks participated in the syndicate, which was signed in August 2007. In August 2008, Vedanta Resources secured a US$ 1 billion (€ 642 million)five-year loan. The loan is used to refinance the US$ 1.1 billion acquisition loan that Vedanta took out in 2007 to help fund the purchase of a 51% stake in Sesa Goa, India’s biggest private sector iron ore producer. The total banking syndicate consisted of 24 banks. Since 2009 several banks have indicated they will not invest in Vedanta Resources anymore. Among these are Deutsche Bank, WestLB, and Danske Bank. Also many investments funds have disinvested from Vedanta Resources. Among these are the Norwegian Government Pension Fund, Martin Currie Investments, the Church of England, the Joseph Rowntree Charitable Trust and the Dutch Pension Fund PGGM. The main reasons for these disinvestments are Vedanta's persistent bad performance on environmental, social, and human rights issues, and it's refusal to cooperate and improve on these issues. what must happen
Norway's pension fund, the world's second-largest sovereign wealth
fund, sold its shares in Vedanta Resources due to the company's
systematic environmental and human rights failures at four Indian
subsidiaries. Banks should follow Norway's example. |
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