PETITION to shareholders and other investors in Vedanta Resources plc

As concerned people around the world, we urge you to immediately withdraw your investments from Vedanta Resources plc.

We would like you to dissociate yourselves from a company which has gained a reputation as one of the worst polluters and human rights offenders amongst the multinational mining companies. We believe that such a decision is in your own interests.

We believe that your decision to disinvest could greatly help the indigenous people (tribals) in Eastern India, who are trying to prevent Vedanta from mining bauxite in the Niyamgiri hills of Orissa.

By withdrawing your investments in this extraordinarily damaging company you would make a very powerful statement on the ethically and socially responsible investment policy of your organisation.

Thank you.
Sincerely,
The Undersigned


BACKGROUND

Vedanta Resources plc

Vedanta Resources is a multinational mining company, listed on the London Stock Exchange, whose spectacular rise involves violating environmental laws, human rights abuse, financial scams and political corruption in Zambia, Armenia, India and other countries where it exploits poorly regulated mining enclaves.

Vedanta in the Niyamgiri Hills

Vedanta plans to start mining in the Niyamgiri hills of Orissa, India, from October 2009, and it aims to increase operations six-fold by 2011. Vedantas mining in Orissa will have a devastating impact on the fragile ecosystem of this fertile and vitally important forested mountainous region, on the state of Orissa and on the ancient tribal civilization of the Dongria Kondh and Majhi Kondh tribes, who have lived ecologically sustainable and self-sufficient lives for centuries in these mountains.

Vedantas mining will also lead to severely toxic pollution, diseases, terminal illnesses, destruction of endangered wildlife, damage to the wild elephant population, devastation of crops and arable land and the poisoning and drying up of rivers and streams, which will have catastrophic effects on tens of thousands of people for whom these rivers are crucial lifelines in Kalahandi, one of the most drought prone regions of India.

Breaking the laws in India

There has been a highly controversial legal case lasting three years at the Supreme Court of India, which witnessed some outrageous distortion of facts and a major miscarriage of justice when the Supreme Court judges ignored the advice of their own investigation committee. Without obtaining prior permission, Vedanta removed tribal villages against their will to build a $1billion factory to refine the bauxite from the hill. The Supreme Court committee highlighted irregularities and corruption in Vedanta and recommended that Environmental Clearance for mining activities should NOT be given.

The Orissa State Pollution Control Board has found that the River Bansadhara has already been polluted at its source. Toxic wastes have ruined fertile agricultural lands, polluted the air, contaminated drinking and bathing water, and caused severe illnesses in people and wildlife.
Hundreds of the local indigenous population have been killed in work and road accidents in and around the Lanjigarh Refinery because of Vedantas criminal negligence. The Community has been violently split and is terrorised by thugs in Vedantas pay.

Social and cultural impacts of Vedantas operations in Orissa

Farmers, fishermen and forest dwellers have already been displaced from their land to make way for the now-completed factory, losing access to their livelihoods. Most of them have not received the jobs they were promised by the company. If the mine goes ahead and the factory is allowed to expand six-fold, there will be further disintegration of the social structure and traditional economic systems. Already the invasion by an alien industry has led to a sharp rise in illegal liquor shops, fraudulent schemes, drunken violence, prostitution and serious fractures in the community.

The Kondhs perceive the mountains and the forests as their Gods, so their destruction is both an environmental and a cultural atrocity. The project is a serious threat to the cultural and spiritual identity of the Kondh people.

Ecological impacts of the companys operations in Orissa

Bauxite, which contains the Aluminium ore, soaks up rainwater, holds this water and releases it to numerous perennial streams and rivers, which are essential lifelines in Kalahandi, one of the most drought-prone regions of India. Removing this bauxite will be catastrophic for the fragile ecosystem, endangered wildlife and tens of thousands of people who rely on these rivers.

If mining starts on Niyamgiri, at least fifty other major mountains are next in line. Already tribal people and Dalits (Untouchables) have movements to protect Bapla Mali, Mali Parbat, Deo Mali, Gandhamardan and other mountains in Orissa and Andhra Pradesh. BHPBilliton, Alcoa, Rio Tinto, Jindal and Dubai-based companies are poised to set up bauxite mines in the area.

The mountains of northern Orissa contain some of the last pockets of wild elephants in Eastern India. These majestic animals are being threatened by the rampant mining.

Magnificent wildlife, forests, and some of the highest waterfalls in India are in serious danger of being wiped out forever.

Worldwide condemnation of Vedanta Resources plc

On July 9, 2009, Amnesty International stated that The Indian Government should immediately withdraw the clearance granted to a massive mining project (Vedanta) that threatens the lives and livelihoods of a protected indigenous community living in the Niyamgiri hills.

Vedanta has been blacklisted by the Norwegian Government Pension Fund, with its pension fund investments divested in 2007 on the grounds of serious malpractice and contraventions of environment norms and ethics by the Vedanta management in the past wherever they operate and human rights violation. Procedural violations in procurement of environment and forest clearance for mining were cited.

The Martin Currie Scottish Trust Fund also withdrew their 2.37m investment in Vedanta in July 2008 on grounds of environmental and human rights violation.

Vedantas subsidiaries Sterlite (which is the company involved with the Niyamgiri project) and MALCO have both been charged in court with the criminal violation of environmental laws, dumping of toxic wastes and illegal construction.

In early 2009, in a breathtakingly beautiful non-violent protest, over 10,000 villagers and concerned citizens held hands to form a 17 kilometre human chain around the Niyamgiri hills. The local communities have been protesting against Vedanta for many years now. On 25th July 2009 hundreds of men, women and children held mass demonstrations, blocked the roads and fought off the company goons and the local organised crime gangs working in collaboration with Vedanta.

27th July 2009 was The Global Day of Action against Vedanta Resources plc. Strong, compelling protests were held outside Vedantas AGM in London, and inside the AGM Vedantas Board was subject to a barrage of incisive questions by a tribal elder from Niyamgiri, campaigners, academics, intellectuals, film-makers, NGOs, Amnesty International, journalists etc. None of the critical questions was given an adequate answer by Vedantas Board. Those supporting the Global Campaign against Vedanta plc include Arundhati Roy, Joanna Lumley, Bianca Jagger and Nitin Sawhney.

Over 4000 concerned citizens in Trinidad supported The Global Day of Action against Vedanta Resources plc. Protests were also held in major Indian cities on and after 27th July 2009.

The press has extensively reported on the protests and the underlying issues outlined above. The urgent need for investors to disinvest from Vedanta has been repeatedly highlighted. Reasons why Vedanta Resources plc is an extremely poor investment have been comprehensively revealed, and some shareholders have already received very bad publicity for having invested in this monstrous company.

Financial risks

If and when International Accounting and Actuarial conventions and legal and regulatory changes require Co2 and other pollution emissions to be financially quantified as liabilities in Vedantas accounts, Vedantas solvency levels will fall drastically and the company may find itself financially bankrupt.