Vedanta Resources

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For other uses, see Vedanta (disambiguation).

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	$6,502 million (2007)
Operating income	$2,506 million (2007)
Net income	$1,812 million (2007)
Employees	24,679 (2007)
Website	www.vedantaresources.com

Vedanta Resources plc (LSE: VED) is a diversified and integrated metals and mining group. Headquartered in the United Kingdom, its principal operations are located in India, with a major market share in each of the main 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^[1] while Konkola Copper Mines is the largest mining company in Zambia.^[2]

Vedanta's Indian zinc and copper operations rank in the top quartile of global cost efficiency.^{[citation needed]}

In addition to the existing operations, Vedanta currently has a range of expansion projects involving investment of over $2bn, which is already more than half completed.^{[citation needed]} Several of their 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.^[3]

Vedanta was listed on the London Stock Exchange in December 2003,^[4] and the FTSE 100 Index in June 2006.^[5]

Subsidiary companies owned by Vedanta Resources include Hindustan Zinc Limited, Bharat Aluminium Company, Konkola Copper Mines in Zambia, Sterlite Industries^[6], and Madras Aluminium Company. The founder of Sterlite Industries and Vedanta Resources is the billionaire Anil Agarwal.^[7] Vedanta Resources also has a major stake in iron ore exporter, Sesa Goa.

1 Criticism
- 1.1 Litigation
  - 1.1.1 Armenia
  - 1.1.2 India
2 Notes
3 External links

[edit] Criticism

Vedanta Resources has been repeatedly accused of multiple environmental and human rights abuses, ranging from inadequate handling of hazardous waste, to forced eviction,violence and bribery.

Currently, the Supreme Court of India is debating whether a Vedanta subsidiary should be permitted to mine bauxite at Niyamgiri, Orissa. The proposed mine will entail the deforestation of over 670 hectares of forest on Niyamgiri mountain, which is home to the Dongria Kondh tribals. The Dongria Kondh are vehemently opposing the mine, which they say will destroy their way of life and desecrate their most sacred site. ^[8]

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." ^[9]

In FY 2007, the company controlled more than 75% zinc market in India, at least 42 per cent of the copper market and 21 per cent of the aluminium market of India.(pdf, 360kb)

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.[1]

The United States Geological Survey reported that as of 2005, the company supplies 75 per cent of Indian zinc requirements.(pdf, 90kb) It is widely believed that the company acquired disproportionate zinc mining rights in India through unfair trade practices due to the strong friendship of its directors with the ruling party chairman Sonia Gandhi's family.

In its annual report for 2007, the company admitted the existence of off-balance-sheet indemnities and guarantees worth almost $440 million. Unsafe mining operations led to 1,246 injuries and 18 deaths involving own employees and contractors. (pdf, 3.8mb)

[edit] Litigation

[edit] 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).

[edit] India

In respect of bauxite mines at Lanjigarh, Orissa, public interest litigations were filed in 2004 by Indian non-government organisations led by 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. ^[10]

Indian revenue authorities too have made several claims against the company for additional excise and indirect duties totalling $155 million.