MAC: Mines and Communities

Vedanta meets its match at London AGM

Published by MAC on 2017-08-18
Source: Foil Vedanta (2017-08-18)

One of the most criticised mining companies on the planet held its thirteenth annual general meeting (AGM) in its adopted city of London, earlier this week.

Once again the company was greeted by angry protests from demonstrators outside, and heated exchanges between board and dissident shareholders from inside that virtually monopolised proceedings.

They were  backed by groups which organised anti-company actions in Zambia, and the Indian cities of Raipur, Hyderabad and Delhi.

Please look out for a further report on the AGM which will soon be posted on the MAC website.


Vedanta’s 2017 AGM at London again disrupted by protests

Foil Vedanta

15 August 2017

Loud and theatrical protests were again held outside the AGM of British mining company Vedanta Resources’ at the Lincoln Centre, Lincoln Inn Fields, London at 2pm today 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’ 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” at four subsidiaries in Odisha, Chhattisgarh, 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. 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. 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.

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.

“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 Chhattisgarh 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. The inquiry found Vedanta as guilty of negligence and using sub-standard materials and construction methods which caused the death of the workers.

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. InSeptember 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.

Kodingamali

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 [Odisha Mining Corporation] to feed Vedanta’s Lanjigarh refinery. 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

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. 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‘ (See article below).

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.

* In December 2016 London courts ordered Vedanta subsidiary Konkola Copper Mines to pay $103 million in withheld dividends to Zambian State entity ZCCM-IH.

* 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. 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.

* 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.

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.

Recent analyst reports highlight Vedanta’s high debt, lack of bauxite at Lanjigarh refinery, and operational issues in Zambia.


 General Sir Richard Shirreff and Peter Hain join forces as consultants

Nick Kochan

The Independent

9 February 2016

General Sir Richard Shirreff and Peter Hain have joined forces to form a management consultancy, which will be launched today.

Strategia Worldwide puts companies through a risk test used by the Army, where “red teams” test a management’s response to any form of risk. “You have to assume everything that can go wrong, will go wrong to reach your goal. You start from there and work backwards,” Sir Richard said. He oversaw the British Army’s operations in Iraq, while Lord Hain is a former Secretary of State for Northern Ireland and Foreign Office minister. Strategia Worldwide is working with McKinsey, the management consultants, and a leading insurance broker.

The consultancy expects to focus on companies operating in dangerous and complex environments. Sir Richard said: “A big mining company can appear to local communities like an occupying army. Companies need to take care not to disrupt local relationships. They do that by identifying what representatives of communities want.”

The miners Vedanta Resources and Barrick Gold have already hired Sir Richard and his team to assist management in handling local protest groups. They advised Barrick Gold on how to work with indigenous groups in Chile who were protesting over fears the miner was using local drinking water to operate a gold mine. Kelvin Dushnisky, Barrick’s president, said: “They were able to work with local communities and see all the risks we were facing, like security and environment.”

Vedanta’s chief executive Tom Albanese, said Sir Richard “has seen it, been there and done it. He has helped us see risks before they hit us. The demands of the military and mining are similar. You always need to plan for the unexpected.”

 

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