Update on Niyamgiri Bauxite Mining
August 27 2010 - 7:18AM
Business Wire
Sterlite Industries (India) Limited’s parent, Vedanta Resources
PLC (“Vedanta”), announced on 24 August 2010 that the Ministry of
Environment and Forests in India had refused the final approval to
the Orissa Mining Corporation proposal for the bauxite mining at
Niyamgiri hills in the State of Orissa, following the
recommendation of Dr. N.C. Saxena committee.
The full text of the press release issued by Vedanta is set out
below.
Update on Niyamgiri Bauxite
Mining
The Ministry of Environment and Forests (“MOEF”) in a statement
issued today refused the final approval to the Orissa Mining
Corporation (“OMC”) proposal for the bauxite mining at Niyamgiri
hills, in the state of Orissa, following the recommendation of Dr.
N.C. Saxena committee.
In response to certain allegations raised in the report, Vedanta
Resources plc (“Vedanta” or The “Company”) reconfirms that there
has been no regulatory violations of any kind at the Lanjigarh
Alumina refinery. Vedanta is not in possession of the Niyamgiri
mine and no mining activity has been or will be undertaken until
all approvals are in place.
To recap the background, in October 2004, the Government of
Orissa signed a Memorandum of Understanding (“MoU”) with Vedanta to
set up an integrated Alumina and Aluminium complex along with the
associated captive power plant in the state of Orissa. This MoU
also included supplying 150 million tonnes of bauxite for Vedanta’s
alumina refinery at Lanjigarh. For this the Government of Orissa
identified Niyamgiri mine as the initial source of bauxite supply
to the extent of 78 million tonnes.
OMC, who holds the lease of the Niyamgiri mines, applied for all
approvals to commence mining from Niyamgiri. During the approval
process, the mining project was extensively reviewed by the
Honorable Supreme Court of India, including specific reviews by the
expert committees appointed by the MOEF. The Honourable Supreme
Court of India passed a favourable judgment to the project and
granted the mining approval in August 2008.
The MOU with the OMC was to encourage investment in world class
bauxite deposits. The natural resource rich state of Orissa has the
fourth largest reserves of bauxite deposits in the world; however
no new alumina refinery has been set up in the region in the last
25 years. The Kalahandi district, where the company’s Alumina
Refinery is located, is one of the most impoverished districts in
the country. As at 31 March 2010, Vedanta had invested c.US$5.4
billion in its aluminium projects in Orissa. Around 10,000 people
are employed at the Lanjigarh alumina refinery plant. Vedanta is
currently operating its Alumina refinery with outsourced
bauxite.
In view of the ongoing delay in approval of the Niyamgiri
Mining, the Government of Orissa is actively considering allocation
of alternative sources of bauxite to Vedanta’s alumina refinery,
from the state of Orissa.
Vedanta remains committed to working with the local communities
to ensure sustainable development in this region.
About Sterlite Industries
Sterlite Industries is India's largest non-ferrous metals and
mining company with interests and operations in aluminium, copper,
zinc and lead and power. It is a subsidiary of Vedanta Resources
plc, a London-based diversified FTSE 100 metals and mining group.
Sterlite Industries' main operating subsidiaries are Hindustan Zinc
Limited for its zinc and lead operations; Copper Mines of Tasmania
Pty Limited for its copper operations in Australia; and Bharat
Aluminium Company Limited for its aluminium operations. The company
operates its own copper operations in India. The company has
entered the commercial energy generation business and is in the
process of setting up a 2,400MW independent power plant through its
wholly owned subsidiary, Sterlite Energy Limited. Sterlite
Industries is listed on the Bombay Stock Exchange and National
Stock Exchange in India and the New York Stock Exchange in the
United States. For more information, please visit
www.sterlite-industries.com.
Disclaimer
This press release contains “forward-looking statements” – that
is, statements related to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance, and often contain words
such as “expects,” “anticipates,” “intends,” “plans,” “believes,”
“seeks,” “should” or “will.” Forward–looking statements by their
nature address matters that are, to different degrees, uncertain.
For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in
interest and or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other matters
of national, regional and global scale, including those of a
political, economic, business, competitive or regulatory nature.
These uncertainties may cause our actual future results to be
materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking
statements.
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