The Leicestershire County Council has been urged to put pressure on mining major Vedanta Resources to stop a major project to mine bauxite from the Nyamgiri mountain in Orissa.
The council has invested 2.3 million pound in the company owned by the Indian-origin entrepreneur Anil Aggarwal.
In July, there were protests in London during the company’s annual general meeting (AGM) on grounds that mining bauxite would threaten the ecologically sensitive Nyamgiri mountain, which is a sacred site for the Kondh tribe.
ActionAid, a campaign group that coordinated the protests, has urged the council to act to ensure that the company drops its plans to create an open-pit mine Meredith Alexander, ActionAid's head of trade, said.
"Shareholders including Leicestershire County Council are investing in a mine that will destroy a community's way of life and irreversibly damage a unique environment. The council must ask Vedanta to withdraw from the project. The destruction of the Kondh's homeland is imminent. Shareholders have a final chance to refuse to allow their money to be used in this way," he said.
The council’s fund manager Colin Pratt said, "Under law, trustees have to act in the best interests of beneficiaries. Lower investment returns mean that more money has to be paid into the fund by the employers, and higher employer contributions will inevitably impact on council tax rises and/or cuts in service."
"The fund has a holding in Vedanta Resources that is valued at 2.3 million pound, which is 0.13 per cent of total fund assets. This holding was built up in April and May and is showing a 1 million profit against cost," he added.
Mining companies constituted about 10 per cent of the UK equity market and it would be impossible for the Leicestershire fund to avoid investment in the sector without taking an unduly large risk, he said further.
Rejecting claims by ActionAid, a Vedanta spokesman said, "The project will bring urgently needed and important benefits to the region, one of the most deprived in India. The Supreme Court of India, in its decision to give approval for the project, has taken into account the views of the community and the many benefits that the project will bring."
"We urge organisations to respect the decision of the legitimate authority in India, the world's largest democracy," the spokesperson said.
