The Vedanta AGM, London, 27 July 2011. Report by Carmen Miranda carmitamira...@gmail.com
The Vedanta AGM was dominated by pressure groups that fired a barrage of questions and accusations mainly about the company's activities in Orissa and Chhattisgarh. I took a chance, raised my hand, was given the microphone and spoke about the issue of mining in Goa. -snip- Last but not least, I established contact with the Agarwal brothers themselves which I understand is an extremely difficult thing to do, and with the Chief Executive SM Mehta, who I hope to lobby in future regarding their activities in Goa. After the AGM I was having a cup of tea and talking, well, actually complaining to his Chief Executive and his brother Navind Agarwal, about what they were doing in Goa. As I was doing so, I was rather taken by surprise when Anil Agarwal came out of his way to shake hands with me. At least they now know we exist and we want them to phase out mining from Goa. --------------------------------------------------------- Congrats Carmen, It is amazing what one determined person can do. It becomes very rewarding to meet people at AGM's who think the way you do and make the effort to go out an demand change. Sooner or later, investors i.e. the people who really own the shares in the mining giants inform those running the firm that they will not accept abuse. Thankfully, here in Toronto, the giant pension funds of the unions make sure the companies they have invested in are compliant with all the environmental laws. Lastly, the amount of money involved in Indian iron ore mining is mind boggling. Here is an article for the Toronto newspaper, The Globe and Mail. Mervyn1626Lobo http://www.theglobeandmail.com/report-on-business/international-news/asian-pacific/india-probe-exposes-36-billion-mining-scandal-hits-opposition/article2111468/ India probe exposes $3.6-billion mining scandal, hits opposition by JAMES POMFRET NEW DELHI Published Wednesday, Jul. 27, 2011 An independent-led inquiry implicated a prominent Indian opposition politician in a $3.6 billion illegal iron ore mining scandal on Wednesday, underscoring a need to overhaul and better regulate India’s booming but graft-ridden mining sector. The extensive report into mining graft in southern Karnataka state accused its chief minister, B.S. Yediyurappa, and other key officials of causing at least 160 billion rupees ($3.6 billion) in lost state revenues between 2006 and 2010 from illegal mining and a litany of abuses. “This inquiry found that there’s a large scale involvement of officials, powerful people, both in administration as well as in the government,” independent ombudsman Justice Santosh Hegde, who spearheaded the report, told reporters. Several other senior officials with the opposition Bharatiya Janata Party (BJP) including the state tourism minister Janardhana Reddy, were also named in the report. “I have not done any mistake. I don’t think I need to worry about anything,” Mr. Yediyurappa told reporters. He has rejected calls for his resignation. Other BJP officials were not immediately available for comment. While the report is not legally binding the political implications are far reaching and analysts, as well as several members of the BJP, predicted several resignations would follow. With India’s ruling Congress party coalition reeling from a spate of graft cases including a multi-billion dollar telecoms scandal, the spotlight on the BJP could give the stricken government of Prime Minister Manmohan Singh some respite. Hegde said 400 firms and 787 people had been implicated in a web of corruption involving mining, transport, customs and shipping officials, leading to hundreds of thousands of tonnes of iron ore going missing from mines across the state. Illegal mining is a major problem across India, as powerful businessmen, often in cahoots with officials, plunder the country’s mineral wealth to meet surging demand for commodities like iron ore in places such as China. India is the world’s No. 3 iron ore supplier after Australia and Brazil. Karnataka is India’s second largest iron ore producing state but deep-rooted graft and conflicts led authorities to once even impose an export ban that spiked global iron ore prices. Lax oversight and patchy laws are prompting parliament to propose a new national mining bill that will open up the sector to foreign investment, create an independent regulator and impose profit sharing arrangements with villagers. “This is a transitionary phase for the industry,” said Basant Poddar, with the Federation of Indian Mineral Industries for Southern India. “Business and politics should be kept out as many of businessmen are simply caught in the line of crossfire.” The mining scandal again underscores the need for India – Asia’s third largest economy after China and Japan – to overhaul strategic sectors including retail, property and mining, to raise growth and lure fresh investment. Fearing a public backlash could bruise its chances in polls and erode a key southern voter base, analysts say the BJP will almost certainly force the populist Mr. Yediyurappa to resign. Corruption pervades almost all levels of society in India despite a thriving democracy and a relatively independent judiciary. It has long been accepted as a fact of life. Over the past year, however, public anger has risen sharply over particularly blatant abuses, stoked by activists and aggressive media and TV campaigns pushing for the creation of an independent ombudsman to step up the anti-corruption fight.