Church of England has sold a £3.8 million stake in Vedanta Resources, the mining group accused of mistreating villagers near a bauxite mine in Lanjigarh located in Indian state Orissa. The decision is a result of a six-month dialogue with Vedanta's management.
John Reynolds, chairman of the church's ethical investment advisory group, said in a statement "We are not satisfied with the level of respect Vedanta has shown for human rights”
After the visit to Vedanta's Lanjigarh, alumina refinery, Edward Mason, secretary of the ethics panel, felt that villagers living near the refinery project were maltreated.
The activists claim that the mining near the controversial Niyamgiri bauxite mine site will displace 8,000 members of the Dongria Kondh tribe who hold the area sacred.
Stephen Corry, the director of Survival International, which has campaigned against the Orissa projects, said: “The Church’s decision sends a strong signal to companies that trample on tribal people’s rights”.
Shares in Vedanta shed 96p, or nearly 4 per cent, to close at £23.19 yesterday.
A company spokesman said: “We are disappointed by the Church of England’s decision to sell their holding in Vedanta, as Vedanta remains fully committed to pursuing its investments in a responsible manner, respecting human rights.”