December 04, 2008

Vedanta to abide by Supreme Court order on bauxite mining

After the Supreme Court has barred it from mining bauxite in Orissa, Vedanta Resources said that it would take steps to abide by the court’s decisions.

Vedanta Resources, in a statement, said that “We are awaiting a judgment copy and as soon as we receive the same, we shall be taking all steps immediately to abide by the directions and conditions set out by the Supreme Court. We are committed to the cause of bringing social upliftment through responsible industrialization and creating employment opportunities in the state of Orissa.”

Supreme Court order has said that Vedanta’s India based group company, Sterlite, could come up with a fresh proposal to protect the rights of the local people in the mining area through a new company established by the group. The order added that “Adherence to sustainable development is a constitutional requirement.”

It is noted that last month, the court had set new conditions for Vedanta and Sterlite before allowing them to mine in the region. The conditions included paying 5% of its annual profits from mining throughout India to the state government to be ploughed into developing the region. It was also asked to deposit INR 50 crore with the state government, and specify how many local people would be employed in the project.

Vedanta’s open cast bauxite mines were meant to feed its alumina refinery in Orissa.