Vedanta Cuts Investment and Aluminium Expansion Plan

10 October 2010 (Last Updated October 10th, 2010 18:30)

Vedanta Resources has cut its investment plan by $2bn and deferred its planned aluminium expansion after the company was denied a licence by the Indian Government to mine bauxite in Orissa. Vedanta Resources CEO Mahendra Singh Mehta said the capital expenditure revision will have an imp

Vedanta Resources has cut its investment plan by $2bn and deferred its planned aluminium expansion after the company was denied a licence by the Indian Government to mine bauxite in Orissa.

Vedanta Resources CEO Mahendra Singh Mehta said the capital expenditure revision will have an impact of $1.5bn-$2bn.

The company has suspended work on its Lanjigarh alumina refinery expansion and postponed the first metal tapping at the Jharsuguda-II and Korba smelter projects.

The Environment Ministry of India denied a bauxite mining licence in Niyamgiri Hills on concerns it would affect tribes and wildlife.