BANKS DODGY DEALS CAMPAIGNS
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Home › Dodgy Deals ›
Dodgy Deal
Mining in Goa/ Sesa GoaIndia

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Lead organisation:
BankTrack
Last update: 2015-11-01 14:53:10

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Lead organisation:
BankTrack
Last update: 2015-11-01 14:53:10
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

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.

Impacts

Other impacts

Potential legal violations

  • Contamination of groundwater and river water
    Water act. 1974
    Environmental Protection Act. 1986
    The Mineral Conservation and Development Rules, 1988
    The Mines and Minerals Act. 1957
  • Contamination of air quality with dust and chemical pollutants
    Air Act. 1981
  • Noise pollution
    The Noise Pollution (Regulation and Controls) Rules, 2000
  • Encroachment by Sesa Goa onto School land
    Land Acquisition Act. 1984
    Forest (Conservation) Act. 1980
Financiers
Institution type
Finance type
Year

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.

Companies

Sesa Goa Limited

India
Website

Sesa Group

India
Website

Vedanta Resources

United Kingdom
Profile
Website
No companies
News
BankTrack
Partners
Blog
External
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

Amnesty report slams alumina mine run by Vedanta subsidiary in India

2010-02-09 | Guardian
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

Sesa Goa mining leases in Goa

2009-09-21 | Goa, India | Mandgoa blogspot
BankTrack news BankTrack blog Partner news Partner blog

HC restrains Sesa Goa from mining at Advalpal

2009-09-18 | Goa, India | The Times of India
BankTrack news BankTrack blog Partner news Partner blog

One more sad day for Goa: Goa Police Protection for mining company

2009-03-25 | Goa, India | Mandgoa Blogspot
BankTrack news BankTrack blog Partner news Partner blog

Goa's ruin continues: three more mining Public Hearings in Colamb

2009-02-05 | Goa, India | Mandgoa blogspot
BankTrack news BankTrack blog Partner news Partner blog

Advalpal cries due to mining intrusion in the village

2009-01-17 | Mandgoa blogspot
BankTrack news BankTrack blog Partner news Partner blog

Sesa Goa's illegal dumps in Pissurlem: No Action from Government

2008-06-26 | Pissurlem, India | Mandgoa blogspot
BankTrack news BankTrack blog Partner news Partner blog

Pissurlem, Mining and Living: Photo Essay

2008-04-17 | Pissurlem, India | Mandgoa blogspot
Resources
Documents
Images
Videos
Links
2009-09-22 00:00:00

Vedantoxics

NGO document
2009-09-22 00:00:00 | London Mining Network
2009-09-10 00:00:00

Trouble in Paradise

Other document
2009-09-10 00:00:00 | Megha Bahree
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
2009-08-01 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
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.

Sesa Goa mining cracks Arondekar's house in Advalpal

2009-06-09
Sesa Goa mining has caused cracks to the house of Vinayak Arondekar at Varchavada, Advalapal.

Pictures of floods from mining sites in Goa

2009-06-06
Pictures of floods from mining sites in Goa.

Mining Companies like Sesa Goa threaten Advalpal

2009-04-14
Pictures of the village Advalpal and the Sesa Goa mine

Protests against Vedanta owned Sesa Goa in Panjim

2008-06-04
Advalpal villagers launched protest against British multinational - Vedanta owned Sesa Goa mining company in front of the Company headquarters in Goa's Capital city of Panjim.

Goa mines: Kids bear the brunt

As India observes Children's Day a hard fact that could well be the shame of the country's beach paradise Goa is a school that is a serious health hazard. NDTV brings you exclusive report from Goa's Sonshi village where children go to a government school right in the middle of a mine.
2009-10-05 16:24:27

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.

Blogspot Mandgoa

An adivasi-rights resource centre. An initiative of Gawda, Kunbi, Velip and Dhangar Federation (GAKUVED).

Vedanta company profile on BankTrack website

For more information about the company Vedanta Resources

Vedanta sustainable development pages

Action Aid India

Updates

2009

2009-10-07 00:00:00 | Latest update

Sirigaon Litigation
In June 2008 Sirigaon village residents filed a petition to the Bombay High Court claiming dried up well and siltation as a result of the mining activities. The Bombay High Court ordered an independent government body to investigate the case (National Environmental Engineering Research Institute). In 2009 a report from this government body confirmed the depletion of water supplies and the land situation. It recommended that the companies (among others Sesa Goa) should “replenish the aquifier, restore the damaged rice fields and stabilise mine waste”. These actions are estimated to cost $1.4 million over 18 months. Read more.

Advalpal Litigation
In 2009 a public interest litigation was filed by a nine-year-old child of Advalpal village through his mother Sharmila Naik together with the Goa Foundation. The petitioners alleged that Sesa Goa was indulging in hazardous mining in violation of the approved mining plan. On September 17, 2009 the High Court of Bombay (interim order) restrained  Sesa Goa from undertaking Phase I and II mining in Advalpal. The Court ordered Sesa Goa to write a proposal for removing illegal mining dumps in Advalpal before the next hearing, likely in October 2009. Read more.

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