Protests Against Vedanta Copper Smelter Turn Deadly

The Indian industrial port city of Thoothukudi has seen turmoil on its streets with at least 10 people dead in violent protests against Vedanta Resources’ (LSE:VED) plans to expand its copper-smelting operations there.

On Wednesday (May 23), an Indian court issued a halt on plans to expand the company’s plant while local authorities look into whether or not it will receive environmental approvals.

The company has been planning to double capacity at the smelting facility to 800,000 tonnes per year. The plant is already one of the largest in India, and the expansion would make it one of the biggest single-location copper-smelting complexes in the world.

But the local population of Thoothukudi has been protesting about environmental concerns — concerns that Vedanta subsidiary Sterlite Copper dedicates an entire page on its website to addressing.

Activists have told reporters that emissions from the smelter are polluting the air and water, damaging the health of the local population and threatening local fisheries.

Some of the concerns the company addresses include accusations that the city ranks first in cancer rates in India because of Sterlite Copper, that the company dumps waste directly into the ocean and that it’s even responsible for reduced rainfall — all accusations the company strenuously denies.

Operations have been suspended since last month, when the plant was shut down for scheduled maintenance. According to the company’s most recent quarterly report, the shutdown was extended as the annual renewal of its consent to operate was rejected by the Tamil Nadu state pollution control board. It claims the facility is not complying with environmental rules.

On Wednesday, Reuters reported that another protester had been killed in the city, adding to at least nine killed the previous day in scuffles with local authorities. Police have also been injured.

Reuters states that police officials have said the situation is tense, but under control.

In a call with reporters, Vedanta CEO Kuldip Kaura said the company is shocked and saddened by incidents in the city, and said the company is working to ensure the safety of its employees, facilities and the surrounding community. However, Vedanta also said that the protests are based on “false accusations,” and that employees have been moved out of Thoothkudi as a precautionary measure.

Vedanta shares on the London Stock Exchange took a hit on Wednesday, falling 11.52 percent to GBX 746.8 by market close, after opening at GBX 865.6.

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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.