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FROM THE FIELD

Vedanta stopped in its tracks
23 Nov 2007 17:35:03 GMT
Source: ActionAid
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But it’s only a partial victory warns ActionAid

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 said that Vedanta Resources and the Orissa Mining Company should now abandon plans to mine bauxite on Niyamgiri. It urged the government of India to take all necessary steps to discourage the plundering of mineral wealth which it said if unchecked could lead 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”.

Whilst ActionAid India’s Director Babu Matthew cautiously welcomed the court’s decision, he 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. “There have been too many such arrangements that have failed in the past,” he said.

He continued: “Any mining in Niyamgiri will create two kinds of catastrophe. 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 could also cause the complete destruction of tribal people’s way of live.”

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.”




[ Any views expressed in this article are those of the writer and not of Reuters. ]


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Last updated:Fri Nov 23 17:38:27 2007