* Protests held by communities in Zambia and India.
* Activist shareholders again disrupt London AGM today.
* Vedanta battles international arbitration and UK compensation case over Zambian pollution.
Foil Vedanta
Loud and theatrical protests were held outside the AGM of British mining company Vedanta Resources'(1) at the Lincoln Centre, Lincoln Inn Fields, London at 2pm today(2) accusing the company of major environmental and human rights abuses across its operations. Parallel protests and meetings were held today by affected communities and their supporters at several locations in India and Zambia. Inside the AGM, dissident shareholders asked 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 poured 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 was 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 asked 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 show as a requirement of London Stock Exchange rules. Instead they claimed Vedanta Resources has very little actual 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 have 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 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 today held 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 held 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) held 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.
The Dongria Konds will hold a protest tomorrow (tuesday) in Lakhpadar village on Niyamgiri mountain under the banner of Niyamgiri Suraksha Samiti (NSS). They will demand the dismantling the Lanjigarh refinery since Vedanta did not get permission to mine, and an end to its illegal expansion. They will also demand an end to the militarisation of Niyamgiri, claiming that the anti-Maoist programs are in fact targeting the tribal activists. Ongoing abductions, false arrests and State sponsored murders of tribal activists against Vedanta’s mine have been highly publicised in recent months.(7)
An NSS spokesperson Lingaraj Azad said:
“Vedanta didn’t get permission to mine so why are they keeping the Lanjigarh refinery? which continues to pollute our communities, affecting our ecology and water resources and making people and animals sick.”
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 realty. 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.
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1. Vedanta is a FTSE 250 diversified oil and mining company, who have been named the
‘world’s most hated company’ by the Independent newspaper for their long list of
environmental and human rights crimes for which they are being opposed all over the
world.17
2. Foil Vedanta are a London based international solidarity group focusing on the activities of British mining company Vedanta. We link up global communities affected by Vedanta, and hold them to account in London. We are currently making the case for Vedanta to be de-listed from the London Stock Exchange for their human rights and corporate governance abuses.
2. Former Director General of the Confederation of British Industries, Richard Lambert, stated: ‘It never occurred to those of us who helped to launch the FTSE 100 index 27 years ago that one day it would be providing a cloak of respectability and lots of passive investors for companies that challenge the canons of corporate governance such as Vedanta…’.18.
2. Reports have detailed how twelve years of pollution by KCM has turned the river Kafue into a ‘river of acid’19 20 and left the farmers with no access to clean water. As well as suing KCM and Vedanta in the UK for personal injury and loss of livelihood due to gross pollution, the villagers are demanding that KCM de-silt and remediate the contaminated areas so they can return to normal life.
An estimated 40,000 people in total are affected by contaminated water which also affects the municipal piped water system21. A number of scientific papers have documented the extent of contamination, with acid pH and heavy metal content regularly tens and even hundreds of times above legal limits.22 23 24
One villager Judith Kapumba appears in a youtube video testifying to how contamination has destroyed their livelihood and their lives, claiming that many have ‘collapsed and died’ as a result of illnesses caused by drinking contaminated water, and that crops can no longer grow leading to starvation and extreme poverty. 25
2. 1,826 of the most affected villagers won the right to have their case against KCM and Vedanta, demanding compensation for personal injury and loss of livelihood due to gross pollution, heard in UK courts in May 2016. Vedanta’s appeal to the judgment was heard in July 2017 and a verdict is expected in September/October.
Justice Coulson’s May judgement indicted KCM for financial secrecy, historic dishonesty and attempts to pervert the course of justice, revealing that KCM have never filed any annual accounts in accordance with the Zambian Companies Act, and referring to a 2014 London arbitration case against KCM in which three judges found KCM to be dishonest, obstructive and willing to cause unnecessary harm.26
6. Vedanta’s Annual Report claims $6 million EBITDA from KCM, while in Zambia the company has continually claimed it is loss making, and on Thursday announced it would retrench a further swathe of workers in favour of contract labour at its Nchanga underground mines. In 2014 Vedanta boss Anil Agarwal claimed he made $500 million a year from KCM at a business conference, following which forensic audits of the mine discovered a transfer mispricing scam in which copper was being undersold to Vedanta subsidiary Fujairah Gold in Dubai. Fujairah Gold also processes gold and silver from ‘anode slime’ and ‘waste products’ from Vedanta’s Zambian and Tamil Nadu operations, thus obtaining these minerals tax free, a practice on which Zambian mines minister Christopher Yaluma has recently announced a clamp down.27
6. In May Kuni Sikaka, a 20 year old Dongria woman and active Niyamgiri Suraksha Samiti member, whose father in law is NSS leader Dadhi Pusika, was removed from her home and kept in police jail for 3 days, where she was told to surrender as a Maoist or be jailed for 15 years. On 7th April 2016 Dasru Kadraka, a 25-year-old Adivasi youth leader and activist of NSS, was arrested and tortured with electric shocks by police asking him to surrender as a Maoist. An all female fact finding team comprising of senior Indian activists detailed these abuses in May 2017.28
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1. http://www.foilvedanta.org/news/vedanta-excluded-again-by-norwegian-pension-fund/
2. Dominic Liswaniso Lungowe & Others v. Vedanta Resources Plc and Konkola Copper Mines Plc, 27 May 2016
http://www.bailii.org/ew/cases/EWHC/TCC/2016/975.html
http://www.foilvedanta.org/news/police-this-gateway-report-on-london-appeal-hearing-of-vedanta-vs-lungowe/
3. http://www.bailii.org/ew/cases/EWHC/TCC/2016/975.html
4. http://www.d-sector.com/article-det.asp?id=1103
5. http://londonminingnetwork.org/2014/08/the-killing-fields-of-korba/
6. http://www.business-standard.com/article/economy-policy/odisha-mining-corporation-to-move-ngt-for-fresh-bid-on-niyamgiri-mining-116110701280_1.html
7. http://odishatv.in/odisha/body-slider/tribals-torch-crpf-camp-opposing-road-construction-166726/
8. http://www.business-standard.com/article/companies/deal-sparks-hopes-for-vedanta-s-lanjigarh-plant-117011400923_1.html
9. http://www.tathya.in/story/16521/0/Vedanta-Asks-Bauxite-Security
10.http://www.independent.co.uk/news/business/news/general-sir-richard-shirreff-and-peter-hain-join-forces-as-consultants-a6862196.html
11. http://www.thehindu.com/business/Industry/cairn-moves-international-arbitration-panel-against-dividend-freeze/article18959785.ece
12. https://www.lusakatimes.com/2016/12/19/kcm-ordered-pay-zccm-ih-us103-million-14-days/
13. http://indianexpress.com/article/cities/jaipur/high-court-issues-notice-to-state-govt-acb-over-600-cr-benefit-to-vedanta-4778267/
14. http://www.thehindu.com/todays-paper/row-over-move-to-sell-away-zinc-smelter-land-by-vedanta/article19454112.ece
15. http://indiatoday.intoday.in/story/after-the-foodgrain-scam-its-the-power-purchase-scam-that-hits-punjab-hard/1/645305.html
16. https://www.bloomberg.com/news/articles/2016-11-18/rio-tinto-offered-bribe-for-iron-mine-ex-guinea-official-says
17. http://www.independent.co.uk/news/business/analysis-and-features/vedanta-resources-the-worlds-most-hatedcompany-2037977.html
18.http://www.publications.parliament.uk/pa/cm201213/cmhansrd/cm120522/debtext/120522-0002.htm
19. ‘Rivers of acid’ in Zambian villages, 8th September 2015. BBC. http://www.bbc.co.uk/news/world-africa-34173746
20. Bodhan Kribek et al, 2013, Methods of environmental monitoring in mining areas:
The Zambian Copperbelt Case Story, Presentation from a training course, delivered at University of the
Witwatersrand, Johannesburg, July 13-15, 2013.
21. The New Colonialism: Britain’s scramble for African energy and mineral resources. War on Want, July 2016. http://www.waronwant.org/resources/new-colonialism-britains-scramble-africas-energy-and-mineral-resources
22. Ondra Sracek et al, 2011, ‘Mining-related contamination of surface water and sediments of the Kafue River drainage system in the Copperbelt district, Zambia: An example of a high neutralization capacity system’, Journal of Geochemical Exploration, 112 (2012) 174–188.
23. Bodhan Kribek et al, 2013, Methods of environmental monitoring in mining areas: The Zambian Copperbelt Case
Story, Presentation from a training course, delivered at University of the Witwatersrand, Johannesburg, July 13 15, 2013.
24. For full coverage of the issue plus video testimonies see http://www.foilvedanta.org/articles/how-kcm-is-killing-the-zambian-copperbelt-part-1-water-pollution/
25. https://www.youtube.com/watch?v=cv325JlD1uo
26. Dominic Liswaniso Lungowe & Others v. Vedanta Resources Plc and Konkola Copper Mines Plc, 27 May 2016
http://www.bailii.org/ew/cases/EWHC/TCC/2016/975.html
27. http://www.times.co.zm/?p=97542
28. https://peoplesvoice.in/2017/05/18/niyamgiri-suraksha-samiti-activists-subjected-illegal-detention/
http://www.caravanmagazine.in/vantage/odisha-bauxite-mining-fake-surrender-niyamgiri
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