Vedanta Accused of Violating OECD Standards

14 October 2009 (Last Updated October 14th, 2009 18:30)

UK-registered mining company Vedanta Resources has violated OECD guidelines for overseas operations, according to the UK Government, bypassing collaboration with an indigenous group for construction of a bauxite mine in Niyamgiri Hills, Orissa, India. The government's examination indica

UK-registered mining company Vedanta Resources has violated OECD guidelines for overseas operations, according to the UK Government, bypassing collaboration with an indigenous group for construction of a bauxite mine in Niyamgiri Hills, Orissa, India.

The government's examination indicated that Vedanta's activities were not in line with the OECD Guidelines for Multinational Enterprises as they failed to establish an appropriate consultation mechanism to engage the indigenous group Dongria Kondh.

Trade, Investment and Small Business Minister Lord Davies said mining can have an impact on those living nearby so it is essential that UK-registered companies maintain an open dialogue with local communities, including indigenous groups, affected by their activities and put adequate means of consultation in place.

On 19 December 2008, Survival International filed a complaint under the guidelines against Vedanta.

Based on the complaint, UK NCP recommended Vedanta immediately consult with Dongria Kondh on the bauxite mine construction.

The statement also recommended Vedanta incorporate an indigenous and human rights impact assessment into its project management procedure, including establishment of an appropriate consultation process with indigenous groups impacted by the company's work.