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Home › Dodgy Deals ›
Dodgy Deal
Bauxite mine Niyamgiri HillsIndia

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Lead organisation:
BankTrack
Contact:

Heffa Schücking, Urgewald, Germany

Last update: 2016-10-18 15:47:01

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Lead organisation:
BankTrack
Contact:

Heffa Schücking, Urgewald, Germany

Last update: 2016-10-18 15:47:01
Why this profile?

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.

Financial institutions that have a social ethic or a concept of responsible lending should sever ties with Vedanta Resources and its subsidiaries.

About
Sectors Mining
Location

On October 5th, 2004 an official agreement was signed between the Orissa Mining Corporation (OMC) and Sterlite Industries, a subsidiary of Vedanta Resources plc, for the purpose of mining of bauxite reserves at at the foot of the Niyamgiri mountain, near the town of Lanjigarh.

The mining operation will have massive negative affects on the Dongria Kondh, one of India's most isolated tribes. The company is planning to mine over 1 million tonnes of bauxite a year from reserves within Niyamgiri mountain. Official studies have indicated that this is likely to lead to massive deforestation on the slopes, the destruction of protected local ecosystems rich in biodiversity, and the disruption of key water sources that supply springs and streams on the surrounding hillsides and feed two rivers which irrigate large areas of farmland in southeast Orissa.

Local communities and civil society groups have raised serious concerns about the impacts of the existing refinery operation, the proposed expansion of the refinery, and the mine. 

Impacts

Social and human rights impacts

The Dongria Kondh are considered a 'scheduled-tribe', living on the Niyamgiri Hills. Their economy is based on gathering forest products in these hills. Vedanta is determined to strip-mine the Niyamgiri Hills for Bauxite. If Vedanta is permitted to mine in Niyamgiri, two of India's strongest institutional guarantees will be overturned; the right of a 'primitive' tribal group to their territorial integrity and to decide on their own path of development (Schedule V of the Indian constitution), and the right to religious practices and beliefs (Article 25). 

Nonetheless, the company has already built an aluminium refinery in the town of Lanjigarh at the foot of the mountain. Several villages have had to make way for the refinery. Others will have to vacate their lands as the plant expands and feeder roads, airstrips, and toxic waste ponds are built.

In March 2009 Amnesty International visited Lanjigarh to assess the human rights situation on the ground. Their findings show that both the proposed mine and the refinery have serious implications for the human rights of the affected communities – including the rights to water, food, health and a sustainable livelihood. Read more.


Environmental and climate impacts

The dense forests of the Niyamgiri Hills are one of the most important biodiversity hotspots in eastern India. The area was proposed as a wildlife sanctuary by the Indian Ministry of Environment and Forests (MoEF) in 1998 and was designated as an Elephant Reserve by the State of Orissa in 2004. There are more than 300 species of plants and trees on Nyamgiri Mountain, including at least 50 species of medicinal plants. The forests are home to sambhars, leopards, tigers, barking deer, elephants, sloth bears, pangolin, the rare golden gecko and many other endangered species, whose habitat is protected under section 18 of the Indian Wildlife Act.

The Niyamgiri Hills are also integral to the ecosystem of a much wider area. More than 30 streams and two large rivers, the Nagavali and Vamsadhara depend on water flow from the Nyamgiri hills. The bauxite deposits and the forests are essentially overhead acquifers, feeding the rivers during the dry season. The hydrological systems on which hundreds of thousands of people depend will be severely impacted if Vedanta's plans go ahead.

In the Niyamgiri forest Vedanta Resources has illegally felled hectares of forest. After the clear cutting, an aluminum smelter was built without the necessary permission. The Orissa pollution board has found that the smelters waste water has contaminated the Vanshadhara river as well as local groundwater. The smelter is designed to process bauxite from the surrounding mountains.

A commission of the Indian High Court has condemned Vedanta for the consequences of the bauxite mining on the indigenous population. Vedanta already faced censure in 2004 for dumping toxic waste from the Tuticorin copper smelter in Tamil Nadu. A working group of the Indian High Court wrote in 2004 that the waste processing of the copper smelter failed.

Financiers
Institution type
Finance type
Year

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.

Companies

Orissa State Mining Corporation

India
Website

Sterlite Industries

India
Website

Vedanta Aluminium Ltd (VAL)

India
Website

Vedanta Resources

United Kingdom
Profile
Website
No companies
News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

Vedanta: time to give up on Niyamgiri mine

2011-07-27 | India | Survival International
BankTrack news BankTrack blog Partner news Partner blog

Signs of revival for Vedanta's mining project?

2011-06-29 | India | The Times of India
BankTrack news BankTrack blog Partner news Partner blog

Barclays, HSBC and RBS linked to 'dirty financing' for fossil fuels

2011-06-14 | The Ecologist
BankTrack news BankTrack blog Partner news Partner blog

David v. Goliath: Indian tribe in ‘stunning’ victory over mining giant

2010-08-25 | Survival International
BankTrack news BankTrack blog Partner news Partner blog

Vedanta mine plan halted by Indian government

2010-08-24 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

It is ‘no’ to Vedanta’s mine project in Orissa

2010-08-24 | The Hindu
BankTrack news BankTrack blog Partner news Partner blog

India declines permission to London-based Vedanta to mine bauxite for its alumina refinery

2010-08-24 | New Dehli, India | CBOnline
BankTrack news BankTrack blog Partner news Partner blog

Vedanta mines illegal, must be shut down: Green panel

2010-08-17 | New Dehli, India | The Times of India
BankTrack news BankTrack blog Partner news Partner blog

Vedanta's Indian mining project under threat

2010-08-16 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

Let's save the real Avatar: The survival of the Kondh Tribe is hanging in the balance

2010-08-10 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

Vedanta Resources: the world's most hated company?

2010-07-29 | The Independent
BankTrack news BankTrack blog Partner news Partner blog

Vedanta’s bad press risks undermining its image

2010-07-28 | The Financial Times
BankTrack news BankTrack blog Partner news Partner blog

Vedanta comes under fire for plans to build mine on 'sacred' land in India

2010-07-28 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

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

2010-07-12
BankTrack news BankTrack blog Partner news Partner blog

Vedanta’s Orissa plan to take off

2010-06-29 | The Economic Times
BankTrack news BankTrack blog Partner news Partner blog

A different kind of red terror

2010-06-27 | The Hindu
BankTrack news BankTrack blog Partner news Partner blog

Violence against tribes opposing British companies in India

2010-06-02 | survival International
BankTrack news BankTrack blog Partner news Partner blog

RBS under fire for more ‘dirty’ investments

2010-04-25 | United Kingdom | The Sunday Herald
BankTrack news BankTrack blog Partner news Partner blog

Stop the Vedanta Project in Orissa

2010-03-17 | The Economic Times
BankTrack news BankTrack blog Partner news Partner blog

Vedanta's Orissa mining project under govt scanner

2010-03-16 | The Economic Times
BankTrack news BankTrack blog Partner news Partner blog

Vedanta takes on critics of mining at India tribal site

2010-03-04 | Yahoo news
BankTrack news BankTrack blog Partner news Partner blog

USS faces ethical dilemma over strip-mining operation

2010-03-04 | The Times Higher Education
BankTrack news BankTrack blog Partner news Partner blog

Charity sells £1.9m stake in 'morally indefensible' Vedanta

2010-02-18 | Telegraph.co.uk
BankTrack news BankTrack blog Partner news Partner blog

India: Government must stop bauxite mine and refinery expansion (Vedanta) until human rights are addressed

2010-02-09 | London
BankTrack news BankTrack blog Partner news Partner blog

Church of England disinvests from Vedanta Resources after following up on issues also raised in OECD Guidelines complaint

2010-02-08 | OECD Watch
BankTrack news BankTrack blog Partner news Partner blog

Judges skirt global norms on conflict of interest

2009-10-22 | Times of India
BankTrack news BankTrack blog Partner news Partner blog

Treasury taken to court for RBS loans to Vedanta Resources

2009-10-20 | London, UK | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

'Petitioners didn't have say on Kapadia presence'

2009-10-13 | New Delhi, India | The Times of India
Resources
Documents
Images
Videos
Links
2011-06-03 00:00:00

Report on visit to Alumina Refinery of Vedanta Aluminium Ltd., Lanjigarh, Orissa

Other document
2011-06-03 00:00:00 | Siddhanta Das, Member secretary SPCB, Orissa
2011-05-25 00:00:00

Red mud spill and people's resistance at Niyamgiri: A first hand report from the struggle

NGO document
2011-05-25 00:00:00 | Miriam Rose
2010-08-24 00:00:00

Decision on grant of forest clearance for bauxite mining in Lanjigarh bauxite mines.

Other document
2010-08-24 00:00:00 | Indian Ministry of Environment and Forest (MoEF)
2010-08-24 00:00:00

Decision on grant of forest clearance for bauxite mining in Lanjigarh bauxite mines.

Other document
2010-08-24 00:00:00 | Indian Ministry of Environment and Forest (MoEF)
2010-03-12 00:00:00

Site inspection report for diversion of forest land for Bauxite mine in Lanjigarrgh

Other document
2010-03-12 00:00:00 | Committee appointed by Indian government
2010-03-01 00:00:00

Don't mine us out of existence

NGO document
2010-03-01 00:00:00 | Amnesty International
2010-02-11 00:00:00

FAC Draft report site visit Lanjigarh (Dongria Kondh area)

NGO document
2010-02-11 00:00:00 | Usha Ramanathan
2009-10-14 00:00:00

Vedanta Resources in Niyamgiri – A Project Chronology

Other document
2009-10-14 00:00:00 | Urgewald
2009-09-25 00:00:00

Final Statement by the UK National Contact Point for the OECD Guidelines for Multinational Enterprises Complaint from Survival International against Vedanta Resources plc

Other document
2009-09-25 00:00:00 | UK National Contact Point
2009-09-22 00:00:00

Vedantoxics

NGO document
2009-09-22 00:00:00 | London Mining Network
2009-09-20 00:00:00

Human rights are your business

Other document
2009-09-20 00:00:00 | Amnesty International
2009-08-18 00:00:00

Anil Agarwal's Big Bang Theory

Other document
2009-08-18 00:00:00 | Prince Mathews Thomas & T. Surendar
2009-08-15 00:00:00

Briefing on Vedanta and the Niyamgiri Hills

NGO document
2009-08-15 00:00:00 | Urgewald
2009-08-01 00:00:00

Vedanta Resources

NGO document
2009-08-01 00:00:00 | Profundo
2009-07-27 00:00:00

Concerns raised at the Vedanta plc AGM

Other document
2009-07-27 00:00:00 | London Mining Network
2009-06-15 00:00:00

European banks financing controversial companies

NGO document
2009-06-15 00:00:00 | Profundo
2008-12-19 00:00:00

Complaint to the UK National Contact Point under the Specific Instance Procedure of the OECD Guidelines for Multinational Enterprises

Other document
2008-12-19 00:00:00 | Survival
2007-07-01 00:00:00

Vedanta cares?

NGO document
2007-07-01 00:00:00 | ActionAid
2007-05-15 00:00:00

Recommendations on Vedanta

Other document
2007-05-15 00:00:00 | Norwegian Pension fund

Protests at Vedanta's AGM 2010, London

2010-08-18
NGO's like Amnesty International, Survival International, ActionAid, London Mining Network, BankTrack, Platform and many more were protesting at the Vedanta AGM in London on 28 July 2010.

Dongria Kondh

2009-08-20
Living on the Niyamgiri Hills the Dongria Kondh is one of India's most isolated tribes. Niyamgiri is Dongria Kondh's most sacred site.

Don't mine us out of existence

UK-based mining company Vedanta Resources threatens the human rights of indigenous communities in the Indian state of Orissa. Email the Indian authorities now: http://bit.ly/vedantareport
2010-08-23 12:12:31

Vedanta's AGM 2010

Amnesty International and other organisations such as Survival International, ActionAid, London Mining Network, BankTrack, Platform and many more were protesting at the Vedanta AGM in London on 28 July 2010. Local communities are at risk with the expansion of their alumina refinery and their proposed mine in the Niyamgiri Hills.
2010-08-17 13:04:52

Deutsche Bank and Vedanta

Damning report of Deutsche Bank's involvement with the controversial Vedanta resources mining corporation in India.
2009-08-20 11:48:22

Anti Vedanta Tribal Struggle

Short video on pollution & protests in Lanjigarh, Orissa against London based Vedanta Aluminum.
2009-08-20 11:41:54

Tribes pray to keep Vedanta away

With the Supreme Court poised to decide on clearance to bauxite from Niyamgiri, indigenous Kondh tribes of Orissa pray to keep controversial mining company Vedanta/Sterlite away from their sacred mountain.
2009-08-20 11:37:08

Video links

http://www.survival-international.org/films/mine

Mines and Communities

The MAC website exposes the social, economic, and environmental impacts of mining, particularly as they affect Indigenous and land-based peoples.

London Mining Network

LMN is an alliance of human rights, development and environmental groups.

Vedanta company profile on BankTrack website

For more information about the company Vedanta Resources

Vedanta sustainable development pages

Action Aid India

Updates

2011

2011-06-08 11:15:43 |

In response to the protests that took place in May, the Ministry of Environment and Forests of India released a statement on June 3rd, 2011, saying that an assessment took place of the red mud wall and in fact a breach did not take place. Their exact words were, "...There was no breach of the red mud pond and pH of the water body in the down stream of red mud pond was within the prescribed limits." To find out more please read on.

On 16th May 2011 after heavy rain, toxic red mud poured from a breach in one of Vedanta's Lanjigarh refinery red mud ponds, spilling onto the village below. The next day landless people displaced by the project held two blockades demanding adequate compensation; a five day walking protest ended with a meeting of 500 people on the threatened Niyamgiri hills; and the funeral of a tribal movement leader, killed by factory pollution, was held. Two months before Vedanta's often-subverted AGM this will be bad news for the company. Read more.

On March 12, 2010, a research committee appointed by the Indian government submitted a report that contradicts the claims of Orissa Government officials that the implementation of the Forest Rights Act (FRA) has been completed. The report states that there is enough to show that serious damage would be caused to the Dongria Kondh and the environment and show cause notices have been issued to Vedanta and its companies. Vedanta's plan to mine bauxite in Orissa could be jeopardised if the environment ministry accepts the findings of the report. The MOEF report was written by an appointed three-member committee, comprising Usha Ramanathan, an independent law researcher, Vinod Rishi, additional director general (wildlife) at Dehradun’s Wildlife Institute of India, and JK Tewari, chief conservator of forests, MoEF (Bhubaneshwar), with the objective to look into the various allegations against Vedanta. Read full report here.

On August 24 2010, Vedanta's plans to mine bauxite on sacred tribal land of the Dongria Khond were halted by India's environment ministry. By not granting permission for forest clearence, also the environmental clearance for the mine is inoperable. The Indian Minister of Environment and Forest Jairam Ramesh concluded that serious violation of various laws have taken place, these include the Forest Conservation Act, 1980, the Environmental Protection Act, 1986, the Scheduled Tribes and Traditional Forest Dwellers Act, 2006, and many others, and that his Ministry would examine what penal action should be initiated against the project proponenst for the violation of these laws. Read full report here.

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