Vedanta strong rebuttal of Amnesty International claims on Lanjigarh aluminium project

We strongly deny any allegations of displacement of Dongria Kondh, pollution by the Aluminium refinery at Lanjigarh or any violation of human rights.  We remain fully committed to pursuing all our 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, to ensure all our projects are conducted in compliance with the law and international best practice.

By setting out a series of wide-ranging allegations in their report on the Lanjigarh project published at 0400 GMT today, Amnesty International have directly challenged the credibility and robustness of India's regulatory framework. 

The report implicitly criticizes a number of highly respected Indian governmental, regulatory and independent assessment organizations, including the Hon'ble Supreme Court and the State of Orissa, all of whom have reviewed, refined and endorsed the scrupulous approach every aspect of the project's operation.

The majority of the Amnesty International report is based on an earlier documents prepared by Central Empowerment Committee (CEC) and  Wildlife Institute of India (WII) in the year 2004-05, which were already looked into by the Hon'ble Supreme Court before granting permission for bauxite mining at Niyamgiri bauxite deposit. 

The report strikes at the heart of project directly related to India's economic growth and rural upliftment. The Lanjigarh project, whose many facets have been developed by Vedanta with the highest regard for human rights, will deliver significant economic stimulus to the local community, especially historically underdeveloped areas of Orissa. A range of activities directly associated with the project are designed to significantly develop local educational, medical and other social infrastructure and further India's global competitiveness.

Aluminium, given the context of global mineral security, is one of India's key strategic reserves and one that can catalyze the country's potential for economic growth. From the aerospace industry to lightweight environmentally-friendly automotive design, global aluminium demand will continue to expand exponentially. India is blessed with more than 10% of world bauxite reserves, yet no new refinery has been opened in the country for 25 years.  Where as, China has added about 30 million tonne alumina refinery capacities in the last 6 years, even though, their bauxite deposit is less than 5% of the world bauxite reserves. This is a significant constraint on sustained national economic growth, a key plank of the national strategy for upliftment of the rurally impoverished.

Background information

1.         The project area & its environmental context

The actual mineralization area in the proposed mining project is 3.5 sq. km. The Mining lease area consists of 672.018 Ha of forest land and 49.305 Ha of non forest land.  While 270.489 ha of forest land interspersed between the mining blocks will be preserved at project cost, balance 390.25 ha of forest land is proposed to be utilized for mining and auxiliary facilities.

The entire approach to mineral exploration is being carried out on a scientific basis, based on accepted geological and environmental parameters, which have already been scrutinized and approved by Indian Bureau of Mines and an expert team of MOEF before granting Environmental Clearance for the project. 

The mined out area will be simultaneously backfilled with overburden as per the approved reclamation plan by IBM . At no point of time more than 20 Ha area will be exposed for mining.    After back filling, the entire area will be used for plantation as per the approved mining plan after mining operations are complete to ensure forest cover and to make the entire area green.  Hence, a barren hill will be converted into a green hill. Lanjigarh Refinery is amongst the few in the world to have attained zero discharge status.

2.         Environmental impact - independent validation

 A detailed comprehensive study on the impact of mining on ground water table has been carried out by M/s Central Mine Planning and Design Institute, Ranchi, a premier institute of repute in the country from May 2006 to October 2006 with the following objectives:-

-       Study of hydro geological and hydro morphological status at project site

-       Assessment of present ground water scenario in and around the project area

-       Definition conditions and depth of the aquifer occurrence below the bauxite deposit.

-       Estimation of hydraulic parameters of the aquifer below the bauxite deposit

-       Evaluation of porosity, permeability of bauxite zone.

-       Aquifer characteristics at colony site

-       Control measures of hydro geological regime.

After conducting a detailed comprehensive study, M/s CMPDI has concluded that there is no aquifer in the bauxite zone and the natural streams will be benefitted in the study area due to the proposed mining. They anticipate improvement in ground water table after mining operations and the lower aquifer system in the plains will not be impacted at all by mining operations.

So any apprehensions raised regarding adverse impact of mining on the water system are not based on any scientific studies. Regarding protection of biodiversity, a comprehensive wild life management plan has been prepared taking inputs from experts like Wild Life Institute of India with an outlay of Rs50.53 crores to be implemented at project cost.  The Management Plan has identified all perceived impacts of the mining operations and developed mitigation measures for each of the impacts.  All these studies were carried out on the direction of Supreme Court and cognizance of the same has been taken into consideration before giving the judgment in favour of mining project.

Regarding violation of Environmental laws, SPCB, Orissa is the right authority and are continuously monitoring the compliances. Ours is the only Alumina refinery in the country who has adopted Zero Discharge system in the plant. Based on our satisfactory performance and compliance to all the environmental laws, SPCB has recently renewed our license for two years valid upto March 2011. All complaints made in the report have already been looked into by SPCB and a copy of all inspection reports have already been handed over to Central Team recently visited Lanjigarh.

3.         Claimed displacement of Dongria Kondh - the reality of the situation

A majority of the Dongria Kondh live in this region on the hill slopes, towards Bissamcuttak and Rayagada.  The Minister of Steel and Mines, Government of Orissa, Mr. Raghunath Mohanty, on 18^th November 2009, informed the Orissa Assembly that "Not a single tribal family would be displaced due to this mining project.' There is no displacement at the mining area.  The rehabilitation issue is for the Lanjigarh Refinery

With regard to rehabilitation:

·          A total of 120 families were rehabilitated.  Out of 120 families, 115 families opted for settlement in Rehabilitation Colony and 5 opted for self-allocation

·          One eligible member from each family has been given job in the plant. A total of 76 families had eligible members (below the age of 35 years) out of which 63 have been trained and have already joined. The remaining 13 are under training and would take up the job once their training gets completed

 The development of the resources of the Dongria Kondh (including enhancing their quality of life and conservation of their culture) is being sensitively addressed by the Dongria Kondh Development Agency ("DKDA"), an Orissa body. The DKDA has developed a comprehensive plan, which forms a part of India's National Eleventh Five-Year Plan 2007-2012.  The plan has been developed based on priorities identified by the Gram Sabhas of 62 village settlements as well as anthropologists familiar with the Dongria Kondh.  Vedanta is working actively with the Dongria Kondh Development Agency (DKDA) to associate itself in the process of development of the resources of the Dongria Kondh through SPV.

4.         Respect for human rights and community well being

Vedanta has the highest respect for human rights. Vedanta's CSR team along with number of NGOs are working in these villages for upbringing their livelihood, nutrition and education for their children, health benefits, agriculture development, infrastructure development, women empowerment through forming of self-help groups and training of rural youth in vocational subjects, to name a few. Vedanta is attached with over 2.5 million people in more than 425 villages in India through its corporate social responsibility initiatives.

It is also worth noting that very shortly that community initiatives currently under development will touch the lives of another 1.6 million under-privileged children through nutrition and computer education programs.  In the last four years Vedanta has spent about Rs. 200 crore on social development activities and is targeting the expenditure of a further 100 crore this year.  This does not include large scale projects like ‘Vedanta Hindustan Zinc Heart Hospital' in Udaipur in the State of Rajasthan and an up-coming 'Vedanta Cancer Hospital and Research Centre' in Raipur, in the State of Chattisgarh.

 5.         Depth and breadth of community and social investment in the region

Socio-economic development is carried out by Vedanta within a 50km radius of the project area.

The focus areas for the comprehensive programme include: Health, Education, Sanitation, Sustainable Livelihood and Infrastructure Development as itemized below.

Education & Nutrition to Children

·         1000 Child Care Centres adopted in Kalahandi and Rayagada districts.

·         Nutritious diet, regular health checkups and education through play-way method

·         Vedanta Foundation providing pre-schooling to children in the age group of 2.5 to 5 years

Health & Sanitation

·         Mobile Health Units providing health at the door-step in more than 115 remote villages.

·         Hospital at Rehabilitation Colony for regular medical facility.

 Livelihood Programme

·         Commercial Agriculture, Vocation Training, Skill Development Programme

·         Women socio-economic empowerment through forming of self-help-groups in remote villages

Infrastructure Development

·         Development of Draining System, Installation of Hand-Pumps, Installation of Street Lights, Construction of Community Centres

·         Electrification in 15 villages and solar electrical systems in tribal villages.

 6.         Approval of Project by the Hon'ble Supreme Court of India

The Hon'ble Supreme Court of India, headed by the Chief Justice of India, while granting permission vide the judgment dated August 8, 2008, reviewed all aspects including tribal development, wild life impact, environment impact, and sustainable development in the area connected with this project, taking into account all arguments, and came to the conclusion that starting mining operation at Niyamgiri Hills, subject to fulfillment of all statutory requirement,  will definitely give a boost to the development of the entire area.

The Hon'ble Supreme Court of India also observed that there is abject poverty in the area and the area is lacking with regards to health, education, infrastructure, communication, to name a few.   On the recommendation of the apex court, the Company agreed for investing 5% of the profit or Rs. 10 crore, whichever is more, from this project, for the developmental works within 50 km of the project area.  The Hon'ble Supreme Court also observed that since mining is an important source of revenue generation, such projects should be encouraged along with principle of sustainable development so that these areas can be brought to the main line.

In delivering its judgment, the Hon'ble Court balanced the development needs with the protection of the environment and ecology.  It also considered whether the local community had been consulted, and was satisfied with the evidence of the consultation process. The Hon'ble Court granted its permission for the Project after carefully considering the observations and suggestions made by expert agencies including Wildlife Institute of India, Forest Research Institute, Central Mine Planning and Design Institute and laid down conditions for inclusive growth of the people, including

·         Transfer of non-forest land for compulsory afforestation in lieu of forest land that has been diverted for the purposes of the Project

·         Phased reclamation of the mined out area including undertaking adequate soil conservation measures and maintenance of water tables in the region,

·         Preparation and implementation of a comprehensive wildlife management plan under the guidance of the Chief Wildlife Warden of Orissa,

·         Development of greenery by way of plantation of suitable indigenous species in all vacant areas within the project, and..

·         Earmarking of 5% of the net profit accrued in the project or Rs. 100 Million whichever is higher for the development of health, education, communication, irrigation and agriculture of the said area within a radius of 50 km of the Project site

Vedanta is committed to and has already begun implementing the Court-set requirements as part of its development plan.