Vedanta says no to Niyamgiri mining.

London-listed Vedanta Resources Plc, which faced oppositions in Zambia, Europe and India over its projects, seems to be taking steps to improve its image across the geographies.

A few weeks after the company settled a standoff with the Zambian Government over a joint venture, it issued a regulatory announcement to the London Stock Exchange on Thursday, saying the UK-based conglomerate respects the wish of the local people at the Niyamgiri hills in Odisha. '…Vedanta confirms it is not seeking to source bauxite from Niyamgiri bauxite deposit for its alumina refinery operations and will not do so until we have the consent of the local communities,' said the statement. The Anil Agarwal-led company added that it is working with the Odisha Government for alternative options for its long-term bauxite security.

Market observers in London told Business Line this was not a price-sensitive disclosure. 'This is more of an image-improvement exercise. Vedanta got a drubbing from the media in the past couple of years, which hit its public image,' said an analyst with a global firm that tracks Vendanta. Last year, 12 village bodies had opposed the proposal to mine the Niyamgiri deposit and the Union Ministry of Forests and Environment rejected the proposal early this year.


HBL