Vedanta Resources Plc.
 |
| Type |
Public (LSE: VED) |
| Founded |
1976, Mumbai, India |
| Headquarters |
London, England, UK |
| Key people |
 Anil Agarwal, Executive Chairman
Navin Agarwal, Deputy Executive Chairman |
| Industry |
Mining and Resources |
| Products |
Copper, Aluminium, Zinc, Lead and Gold |
| Revenue |
$8,203.7 million (2008) |
| Operating income |
$2,592.4 million (2008) |
| Net income |
$2,005.5 million (2008) |
| Employees |
27,264 (2008) |
| Website |
www.vedantaresources.com |
Vedanta Resources plc (LSE: VED) is a global diversified and integrated metals and mining group headquartered in London, England. Headed by Indian billionaire Anil Agarwal, most of Vedanta's operations are located in India. Several of Vedanta's projects are mired in controversy and local unrest due to allegations that they will have a damaging impact on the environment, and on the livelihoods of local people.[1]
Vedanta was first listed on the London Stock Exchange in December 2003[2] and became a constituent of the FTSE 100 Index in June 2006.[3]
History
The business was founded by Anil Agarwal[4] in 1976 as Sterlite Industries operating in the industrial sector.[5] Vedanta Resources was established in 1986 to bring together a variety of businesses owned by the Agarwal family including Sterlite Industries.[6] Vedanta Resources was first listed on the Bombay Stock Exchange in 1988 and on the London Stock Exchange in 2003.[6] In 2004 it acquired a 51% stake in Konkola Copper Mines in Zambia.[7]
Operations
The Company's principal operations are located in India, with a major market share in the metals: aluminium, copper, zinc and lead. There are also substantial copper operations in Zambia and Tasmania, Australia. Vedanta's subsidiary Sterlite Industries is one of India's largest mining companies[8] while Konkola Copper Mines is the largest mining company in Zambia.[9]
Other subsidiary companies owned by Vedanta Resources include Hindustan Zinc Limited, Bharat Aluminium Company and Madras Aluminium Company. Vedanta Resources also has a major stake in iron ore exporter, Sesa Goa.
Founder
The founder of Vedanta Resources and Sterlite Industries is the billionaire Anil Agarwal.[10]
Criticism
Sustainability
Vedanta has come under attack from human rights and activist groups due to their operations in Niyamgiri Hills in Orissa, India that are said to threaten the lives of the Dongria Kondh that populate this region[11]. Many villagers have been displaced in order to accommodate Vedanta’s bauxite refinery and as a result have lost their livelihoods and the ability to live self-sufficiently.
India's Supreme Court has banned the company from mining operations in the mountains but accepted an application from Vedanta’s Indian subsidiary, Sterlite to carry out such activities. The proposed mine will deforest over 670 hectares of Niyamgiri mountain, which is home to the Dongria Kondh tribes. The Dongria Kondha peoples vehemently oppose the mine, which they believe will destroy their way of life and desecrate their most sacred site. [12]. The Dongria Kondh are animists and the Niyamgiri mountain is a temple to Niyam Raja, their supreme god. There are only 7,950 Dongria Kondh people left today.[13] The tribe's plight has become the subject of a Survival International short film narrated by actress Joanna Lumley.[14]
In the light of the Niyamgiri case, the Norwegian government has excluded Vedanta from its national pension fund investments, "due to an unacceptable risk of complicity in present and future severe environmental damage and systematic human rights violations." [15]
It should be noted that P.Chidambaram represented the company in the Bombay High Court until 2003 when he became the finance minister of India. He was also a member of the board of directors of the company.[16]
The United States Geological Survey reported that as of 2005, the company supplies 75 per cent of Indian zinc requirements.[17]
Unsafe mining operations led to 1,246 injuries and 18 deaths involving own employees and contractors. [18]
Litigation
Armenia
In early 2007, the Armenian government began an investigation of AGRC, a subsidiary of Vedanta Resources, vis-a-vis compliance with licensing and tax regulations following independent media claims that AGRC submitted incorrect data in production reports relating to royalty payments and was in violation of licensing laws. AGRC was also served a preliminary notice of penalties and fines to the tune of about $50 million (or 80 per cent of its net assets).
India
In respect of bauxite mines at Lanjigarh, Orissa, public interest litigations were filed in 2004 by Indian non-government organisations led by the Peoples Union for Civil Liberties to the Supreme Court sub-committee regarding the potential environmental impact of the mines. The Ministry of Environment and Forests received reports from expert organisations and has submitted its recommendations to the Supreme Court.
The sub-committee has found "blatant violations" of environmental regulations and grave concerns about the impact of the Niyamgiri mine on both the environment and the local tribal population. The committee recommended to the Court that mining in such an ecologically sensitive area should not be permitted. [19]
References
- ^ "Mining in Orissa threatens Dongria Kondh tribe" "The Telegraph" 19 April, 2008
- ^ "Welcome to Vedanta Resources". Press Release. London Stock Exchange. December 10, 2003 (URL retrieved September 21, 2006).
- ^ "More mining firms join FTSE 100", BBC News, June 8, 2006 (URL retrieved September 21, 2006).
- ^ Freedman, Michael. "All Mine: Anil Agarwal capitalized on India's economic liberation to make a $1 billion fortune". Forbes. March 15, 2004 (URL retrieved September 21, 2006).
- ^ Vedanta Resources Senior Mananagement
- ^ a b Vedanta Resources History
- ^ Vedanta Resources buys Zambia's largest copper producer
- ^ Vedanta: UK Company Accused of Multiple Violations
- ^ Sterlite Industries India - Vedanta Group Profile - Sterlite Industries History
- ^ Freedman, Michael. "All Mine: Anil Agarwal capitalized on India's economic liberation to make a $1 billion fortune". Forbes. March 15, 2004 (URL retrieved September 21, 2006).
- ^ British mining company threatens sacred mountain
- ^ "Mining in Orissa threatens Dongria Kondh tribe" "The Telegraph" 19 April, 2008
- ^ Grammaticas, Damian. "Tribe takes on global mining firm" BBC News, July 17, 2008
- ^ Mine: the story of a sacred mountain
- ^ "Norwegian Council on Ethics Recommendation to the Ministry of Finance" 15 May, 2007
- ^ Vedanta scandal back to haunt FM
- ^ USGS Minerals Yearbook 2005
- ^ Vedanta Annual Report 2007
- ^ Indian Supreme Court's Central Empowered Committee (2005) Report in IA No. 1324 regarding the alumina refinery plant being set up by M/S Vedanta Alumina Limited at Lanjigarh in Kalahandi District, Orissa.
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