India's Ministry Says No Green Nod For Vedanta's Bauxite Mine Project

NEW DELHI -(Dow Jones)- Vedanta Resources PLC's bauxite mining project in eastern India hasn't received environmental clearance, the government said over the weekend.

Reacting to a Times of India report that an environment panel has reviewed and cleared the project in Orissa state's remote Niyamgiri hills, India's ministry of environment said that--whatever the panel's recommendations might be--the project hasn't been given approval to cut forests for mining.

It added that the ministry of environment has the right to reject any recommendation by the environmental panel.

In 2010, the ministry rejected Vedanta's proposal to mine the Niyamgiri hills for supplying bauxite to its alumina refinery in the nearby Lanjigarh town, after vigorous protests by local and international activists who said that the project would cause grave damage to the Dongria Kondh tribals who live in the hills.

Several proposals for mining or setting up factories in the mineral-rich eastern Indian states of Jharkhand and Orissa have been stalled as the environment ministry has either delayed or denied approval.  By Prasenjit Bhattacharya, Dow Jones Newswires


Copyright (c) 2011 Dow Jones & Company, Inc.