Mining company in eastern India loses millions in investments due to ‘ethical concerns’
hills in Orissa, India – photo by klachak (source: Flickr Creative Commons)
Vedanta Resources plc, an India-based mining firm, has been the subject of much criticism from the press and activist groups – including Amnesty International and Survival International – due to questionable human rights and environmental practices. In October 2008, The Ecologist reported that the partly British-owned company was to establish a bauxite mine on a hill that is crucial to the survival of the Dongria Kondh, a tribal people living in the Indian state of Orissa. The Dongria Kondh people depend on the rich ecology of the hill, which is also central to tribe’s cultural and religious life.
Halifax Pension Fund, Lloyds TSB Group Pension Fund, Norwich Union Life and Pensions Ltd and Prudential Managed Pension Fund, Land Rover Pension Trustees Ltd and Unilever Pension Fund were among those listed as beneficial shareholders in the controversial mining conglomerate.
–The Ecologist
According to an article in The Ecologist last week, the Church of England sold £3.75 ($585 mil/€428 mil) in shares of the company due to ethical concerns. The Independent reports that similar concerns prompted the Norwegian state pension fund to withdraw all of its funds from the company three years ago and that the British oil giant BP has also recently to cut its investments in Vedanta.
Despite the high-profile criticism, Vedanta’s four biggest private shareholders – AllianceBernstein, Wellington Management, Standard Life and JP Morgan Asset Management – refused to discuss their stakes yesterday, or the allegations against the company. All lost money yesterday as Vedanta’s shares slipped by nearly 4 per cent.
–Independent
by Graham Land
Additional resources:
The Economic Times – Vedanta hurt by Church of England decision to sell stake
Graham Land grew up in Washington, D.C., where he was part of the local hardcore punk scene. Through this unique musical movement he became involved in grass roots anti-racist activism, animal rights and Ecology. Since 2000 Graham has lived in Europe, earning an MA in history from Malmö University in Sweden and working as a musician, English teacher, sports therapist, customer service agent and writer. Graham has a podcast with author Saci Lloyd and is currently pretending to work on his first novel.
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Tags: British, Church of England, company, Dongria Kondh, ecologist, Independent, India, Indian, investments, mining, Orissa, shareholders, shares, Vedanta
Thanks for the comment, Guarav, but I’m not sure how the headline is misleading. It doesn’t mention the Indian government and neither does the article. The recent development in the case which has been receiving press coverage in the UK is the Church of England selling off it’s investments in Vedanta. BP has also sold some stock and the Norwegian state pension fund withdrew theirs years ago. So this short article mentions that a few large foreign private and govt investors have reacted to pressure from journalists and activist groups. Yet there are still plenty of private foreign companies with investments in Vedanta. As far as the Indian govt, The Ecologist states that “The Indian government is still considering whether to give final approval for the mine project.”
Graham,
The headlines obfuscates the real story. It makes the reader think that Vedanta has lost investments in India due to ethical concerns, which would imply that the Indian government is finally paying due consideration to the interests of the tribal population.
However, the the issue really is that investors have withdrawn their investments in Vedanta…but this does not automatically mean that Vedanta will withdraw its operations in India or the Indian government will force it to do so.