- Protests held by communities in Zambia and India.
- Activist shareholders to again disrupt London AGM today.
- Vedanta battles international arbitration and UK compensation case over Zambian pollution.
Loud and theatrical protests will again be held outside the AGM of British mining company Vedanta Resources'(1) at the Lincoln Centre, Lincoln Inn Fields, London at 2 pm today(2) accusing the company of major environmental and human rights abuses across its operations. Parallel protests and meetings will be held today by affected communities and their supporters at several locations in India and Zambia. Inside the AGM, dissident shareholders will ask questions on behalf of Zambian villagers who are suing Vedanta in the UK for twelve years of polluted water, as well as tribal inhabitants of the Niyamgiri hills in Odisha, India who accuse Vedanta of murdering and harassing them with state collusion.
Dissident shareholders in London will pour scorn on Vedanta’s 2017 Annual Report, which claims that the company ‘demonstrate world-class standards of governance, safety, sustainability and social responsibility’. They say it represents a poor attempt to don the ‘cloak of respectability'(3) of a London listing noting that Vedanta was again excluded from the Norwegian Pension Fund’s investments this year following an investigation which found “numerous reports of Vedanta’s failure to comply with government requirements”1 at four subsidiaries in Odisha, Chhatisgarh, Tamil Nadu and Zambia. The report concludes, “there continues to be an unacceptable risk that your company will cause or contribute to severe environmental damage and serious or systematic human rights violations.”
On Sunday farming communities living downstream of copper mines run by Vedanta subsidiary Konkola Copper Mines (KCM) in Chingola, Zambia, held a meeting in Hippo Pool to renew their resolve in their twelve-year struggle against the company for severe water pollution which has caused major health problems, and rendered land uncultivable.(4) Police had refused them permission to hold a protest. Government officials visited their villages in Spring this year asking them to drop their London case against Vedanta and settle out of court with the company. The Headmen of Hippo Pool village submitted this statement to the Vedanta board and shareholders which will be asked by Shoda Rackal from Women of Colour in Global Women’s Strike:
“The people here are sick and tired of pollution which is killing us through illness and loss of our crops and fish. The pollution must end at all costs. Whether we receive compensation or not, we are asking you to stop polluting us now.”
Another dissident shareholder will ask why Vedanta’s Annual Report makes no mention of its liabilities relating to the landmark legal case in which 1,826 of the farmers have been granted jurisdiction to sue Vedanta in London for gross pollution by KCM.(5) At the July appeal hearing in the case, Vedanta’s lawyers claimed that the company’s sustainability and human rights reports are only produced for a show as a requirement of London Stock Exchange rules. Instead, they claimed Vedanta Resources has very littleactual oversight or involvement with subsidiary operations such as Konkola Copper Mines.2
Meanwhile, in Zambia debate rages over KCM’s secret finances as the company on Thursday announced it would retrench a further swathe of workers in favour of contract labour at its Nchanga underground mines. KCM has never filed Annual accounts in Zambia according to the recent London judgment.3(6)
Samarendra Das from Foil Vedanta says:
“The UK Government and London Stock Exchange are directly responsible for failing to investigate Vedanta’s corporate crimes in India and Zambia since its London listing in 2003. The Zambian State’s threats to polluted farmers demonstrate the ongoing colonial power of this British corporation which acts more powerful than the Zambian State.
Britain is profiting from the financial transactions of non-domiciled family-run business houses like Anil Agarwal’s Vedanta while appearing to provide them with a service. The opaqueness of the British financial system is gaining directly from giving Anil Agarwal “a cloak of respectability” and in exchange Britain, itself is gaining from appropriating the resources of the third world.”
In Chattisgarh the organisation Adivasi Resurgence will today hold a protest at Ambedkar Chowk in Raipur, decrying Vedanta’s suppression of the Bakshi Commission report into the death of between 40 and 100 workers when a chimney collapsed at their Korba power plant.4 The inquiry found Vedanta as guilty of negligence and using sub-standard materials and construction methods which caused the death of the workers.5
At the University of Hyderabad, the group Odisha Scholars for Social Justice will hold a protest and meeting today in solidarity with communities affected by Vedanta’s operations worldwide.
In Delhi, students from Birsa Ambedkar Phule Students’ Association (BAPSA) will hold a solidarity demonstration at Jawaharlal Nehru University (JNU) calling for an end to the displacement and repression of Dalit, Bahujan and Adivasi communities across India by Vedanta.
While their Annual Report claims to respect the right to ‘Free Prior Informed Consent’, Vedanta has not given up its plans to mine the Niyamgiri hills, despite a unanimous referendum against it by tribal inhabitants in 2013. The Odisha Mining Corporation (OMC) has filed a new plea with the National Green Tribunal to overturn the referendum, claiming it overstepped the provisions of the Forest Rights Act by allowing Palli Sabhas to decide on mining, rather than merely settling their claims.6 In September 2016 a group of Dongria Kond had burned down a CRPF (Central Reserve Police Force) camp, opposing construction of a road connecting Niyamgiri to Kalyansingpur, which they claim is to aid Vedanta’s mine plans and opposing ongoing harassment by the force.7
On Friday five villages around another Odisha bauxite mountain – Kodingamali – held a palli sabha (village council) opposing the proposed mining of the mountain by OMC to feed Vedanta’s Lanjigarh refinery.8 They passed a resolution “not to give any patta land, forest land and community land to any mining company” under the banner of Ganatantrik Adhikar Suraksha Sangathan.
This year has seen several major protests by Dongria Kond under the banner of Niyamgiri Suraksha Samiti (NSS) decrying the ongoing abductions, false arrests and State sponsored murders of tribal activists against Vedanta’s mine which have been highly publicised in recent months.(7)
In August 2016 Vedanta boss Anil Agarwal told a press conference that he had asked Odisha Chief Minister Naveen Patnaik to deal with the ‘disruptive elements’ holding up bauxite mining in the State, suggesting he follow the Tamil Nadu government’s approach with protesters at Kudankulam, where widespread police brutality was reported.9 In February 2016 Vedanta employed the services of former Iraq war General Sir Richard Shirreff, and Lord Peter Hain, former Secretary of State for Northern Ireland, in ‘handling local protest groups’.10
Vedanta are again the subject of multiple major scams and several international arbitrations this year:
An international arbitration is underway for Vedanta’s withholding of $100 million in dividends from Cairn Energy, owner of 9.8% shares in Vedanta controlled oil company Cairn India.11 In December 2016 London courts ordered Vedanta subsidiary Konkola Copper Mines to pay $103 million in withheld dividends to Zambian State entity ZCCM-IH.12
The Rajasthani High Court has uncovered a Rs 600 crore ($96 million) tax evasion scam in which Vedanta subsidiary Hindustan Zinc Ltd (HZL) benefitted from tax fraud at the hands of shamed IAS officer Ashok Singhvi in 2015.13 HZL is the subject of another major scam in which it closed its Visakhapatnam Zinc smelter on false grounds to enable the sale of the land for high-value reality. HZL is also accused of major toxic pollution at the site.14
In Punjab, Vedanta subsidiary Talwandi Sabo Power Ltd is the subject of a major power purchase scam in which the Akali Dal government bought power at inflated prices from the private company over cheaper State owned companies.15
Former Rio Tinto CEO Tom Albanese will step down from Vedanta’s board at this year’s AGM along with executives Euan MacDonald and Aman Mehta. Vedanta’s CEO of Zambian operations Steven Din has recently been accused of offering bribes for the Simandou iron ore mine by the former Guinean mining minister, as part of a major corruption investigation. Din was head of Rio Tinto’s Guinean operation at the time the scandal unfolded, while Tom Albanese was CEO.16
Recent analyst reports highlight Vedanta’s high debt, lack of bauxite at Lanjigarh refinery, and operational issues in Zambia.