News & Current Affairs

August 8, 2008

India court okays UK mine project

India court okays UK mine project

Dhongria girl

The tribals say the mines will destroy their livelihoods

The Indian Supreme Court has allowed the British company Vedanta Resources to go ahead with a controversial bauxite mining project in Orissa state.

But, the court said, the company will have to pay for the development of the region out of its profits.

The region is considered sacred by tribes who live in the area and is protected by the constitution.

The Supreme Court has also allowed South Korean steel firm Posco to build a $12 billion plant in the same state.

Environmental and tribal activists have opposed Vedanta’s plans saying the mines will force people from their homes and destroy their livelihoods.

The tribes have said they would “fight to the death rather than leave their sacred home” in the Niyamgiri mountains.

The company has an agreement with the state government to set up a bauxite refinery in the Niyamgiri mountains.

In India, both the state and central government back the Vedanta plan as part of efforts to industrialise and exploit the mineral resources of underdeveloped eastern India.

The Supreme Court told the Indian unit of Vedanta, Sterlite Industries, that it will have to pay 10% of its profits or 100m rupees (whichever is more) for the development of the region.

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