Vedanta Orissa mining project rejected

The New Deli Government has ordered Vedanta Resources not to proceed with its bauxite mining project in Orissa’s Niyamgiri hills until local tribal communities give consent. A government panel said that allowing Vedanta to mine in the area would shake the faith of tribal people in India’s laws. Vedanta Alumina, part of the Anil Agarwal-promoted Vedanta Resources, however, said that mining permission in the hills was essential for it to reduce the cost of production. In a devastating report, a committee set up by India’s Environment Minister has ruled that Vedanta has acted illegally and with “total contempt for the law”; that local officials have “colluded” in the company’s illegal activity and falsified documents; that “it is established beyond any doubt that the mining area is the cultural, religious and economic habitat of the Dongria Kondh”; and that to allow Vedanta’s mine would be “illegal”.

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