Supreme Court okays Vedanta and POSCO projects in Orissa

India court okays mining projects Vedanta and POSCO - August 11, 2008

India’s Supreme Court has said two huge and controversial mining projects can proceed in the eastern state of Orissa. Dongria Kondh tribespeople say their livelihood will be destroyed. A BBC report.

Background on Vedanta project at Niyamgiri: available here
Background on POSCO available here

The ruling follows fierce protests by farmers, campaign groups and tribes who have vowed to oppose the projects. It means an arm of the British-listed mining giant Vedanta can now use bauxite from a mountain in Orissa which local hill tribes view as sacred.

In a separate ruling, South Korean steel firm Posco was given the go-ahead for a $12bn plant in the same state. The BBC’s Damian Grammaticus in Delhi says environmental and tribal campaigners are now calling on India’s prime minister to halt the Vedanta project. They say India’s rush to development should not come at the expense of the traditional and sustainable way of life of tribal and marginalised people. ‘Home to God’ Vedanta has an agreement with the Orissa state government to set up a bauxite refinery in the Niyamgiri mountains, as part of a vast project in Orissa, one of India’s poorest states. Niyamgiri is rich in bauxite, from which aluminium is derived.

Vedanta has already invested $1bn to build a giant alumina refinery close to the mountain. The court has said Vedanta must invest at least $2.5m in the area to help local tribes. But leaders of the 8,000-strong Dongria Kondh say no amount of money can compensate for the damage to their sacred mountain and the forests they depend on. They have vowed to “fight to the death rather than leave their sacred home”. “Even if you kill us we will not give Niyamgiri,” said one tribal member Jairam, in a press statement released on the tribe’s behalf by British charity ActionAid. Another member of the tribe, Jitu Jakeskia, said: “We are deeply connected with the mountain. It is home to our God Niyamraja. “We will not allow the company to mine our land, our sacred place. Any compensation they offer is worthless to us.”

The Indian and Orissan governments both back the Vedanta plan as part of efforts to industrialise and exploit mineral resources in the east of the country, which they say is under-developed.

The giant Posco project in Orissa is the country’s biggest direct foreign investment. It has faced stiff opposition for more than two years from local farmers who are angry over losing their land. “Posco is permitted to continue the iron ore mining,” the Supreme Court said. Reuters reported that Posco had so far been able to acquire about a quarter of the 4,000 acres it says it needs for the plant. The court gave it the green light to use another 3,000 acres of forest land, the agency reported. Critics say the plant could displace 20,000 people. The company and the government argue that badly-needed jobs will be created in a poor part of the country.

SC nod for Posco’s Rs 51,000-cr plant in Orissa - Press Trust of India

New Delhi, Aug 8 (PTI) The Supreme Court today permitted South Korean steel major Posco to set up Rs 51,000-crore mega steel plant and captive minor port in Paradeep, Orissa.
A special environmental bench headed by Chief Justice K G Balakrishnan allowed Posco India Pvt Ltd, a subsidiary of Korea-based Posco, to go ahead with its plans.

With this order, the apex court has also cleared forest diversion proposal for the plant site which require 1253.225 hectares of forest land.

The court while directing the Orissa government to dispose of all the Posco’s applications seeking prospecting licences within four weeks it also asked the state to send its recommendations to the Ministry of Environment and Forests, which would proceed in accordance with law.

The bench also asked the state government to undertake implementation of compensatory afforestation plan under the supervision of a Supreme Court-appointed committee comprising top officials of the state government.

Welcoming the decision, Posco India Senior General Manager Vikash Sharan said, “We reiterate our firm commitment to the project and are determined to move ahead in terms of land preparation and construction activities at full speed.” Posco, the world’s third largest steel producer, on June 22, 2005 entered into an MoU with the Orissa Government for a 12mtpa steel plant in the state.

Posco counsel Mukul Rohtagi contended that the state government-owned Orissa Mining Corporation had agreed to supply uninterrupted iron ore and other minerals for its steel project and had identified mines in the western part of the state, some 300 km away from its project site.

“Unlike bauxite mines, there is no shortage of iron ore mines as India exports more than one million tonnes. The company can source raw materials on its own and can buy the same from the open market,” he said, adding “We are not dependent on prospecting licence.”