3 more investors sell shares in Vedanta

MUMBAI: Less than two weeks after the Church of England decided to sell its shareholding in metals and mining giant Vedanta Resources, three international shareholders have also decided to sell their holdings in the company because of concerns over it’s record on human rights.

The Joseph Rowntree Charitable Trust, Marlborough Ethical Fund and Millfield House Foundation, late on Thursday, said they have sold shares worth £2.2 million (about Rs 14.3 crore) in the secondary market. The shares were acquired over a nine-month period, according to international news reports. Of the total £2.2 million, Joseph Rowntree Charitable’s portion of shareholding alone is worth £ 1.9 million. Vedanta Resources declined to comment.

International shareholders, including the Church of England, have been concerned after human rights activists and non-governmental organisations brought out a series of reports on how Vedanta’s proposed mining plans in Orissa could likely affect the local population.

Vedanta is currently awaiting government clearance on its mining project.

Activist organisations, including Survival International and Amnesty International, have alleged that Vedanta Resources hasn’t engaged with the tribal population, the Dongria Kondh tribe specifically, on its mining plans, despite the fact that the mining project is located within the tribals’ land and would displace some of them.

Two weeks ago, the Church of England sold its shares worth £2.5 million saying that it wasn’t satisfied that Vedanta has shown the level of respect for human rights and local communities that it (the Church) expects.

Vedanta Resources chairman Anil Agarwal had denied the allegation, when ET spoke to him after the Church of England decision. “Vedanta remains fully committed to pursuing its investments in a responsible manner, respecting the environment and human rights. We work with more than 80 regional, national and international NGOs and with the authorities in India, the world’s largest democracy, ensuring all our projects are conducted in compliance with the law and international best practices,” he had said.

Last week, Amnesty International said Vedanta has failed to respect the human rights of the Dongria Kondh tribe. Stephen Corry, a director at Survival International said: “It is encouraging to see shareholders taking indigenous rights seriously and refusing to bankroll Vedanta’s activities.”