Vedanta Mining: A Political Analysis of Business Problems
BICPAGE
Group -4
Vedanta Resources: Mining in Niyamgiri Hills
A Non Market Analysis
Rangesh K S, Rasaal Dwivedi and Gaurav Darda
INTRODCUTION:
Vedanta Resources is a vast British listed company that is into the business of mining operations. The company has a long history of working in mining and metal processing across the world and specifically in India. In this analysis we focus on the non market troubles that the company has run into while seeking to expand its mining operations in the Niyamgiri hills of Orissa. We start with enunciating the Non market issue of this matter, the profiles, the stand and the strategy of all the interests involved in this issue. We then discuss the non market and market goals of the company tied to this issue, and finally we discuss the strategies that the company could employ in trying to achieve its organizational goals
THE ISSUE:
The Vedanta Resources company runs a refinery in lanjigargh area of Orissa for which it sources the raw material – bauxite – from the mines in Jharkhand. The company applied for bauxite mining on top of the Niyamgiri hills which is rich in bauxite.1 The Sterlite Company, owned by Vedanta, along with Orissa Mining Corporation applied transfer of 660 ha of land in rayagad district, which includes the Niyamgiri hills, for purpose of extracting bauxite. This was done way back in 2005. Following this an ‘on-principle’ clearance was given by the Ministry of Environment which later instituted a committee headed by NC Saxena to study the implications of the project for the tribes in the area. The MoE would later rescind its initial ‘in principle’ approval to the project and even reject a second clearance based on the recommendations of the aforesaid committee report thereby effectively stopping the project.
The Non Market forces against this project started gaining ground when environmental groups and tribal welfare organizations joined hands to stop the mining the peak of the hills claiming it
Group -4
Vedanta Resources: Mining in Niyamgiri Hills
A Non Market Analysis
Rangesh K S, Rasaal Dwivedi and Gaurav Darda
INTRODCUTION:
Vedanta Resources is a vast British listed company that is into the business of mining operations. The company has a long history of working in mining and metal processing across the world and specifically in India. In this analysis we focus on the non market troubles that the company has run into while seeking to expand its mining operations in the Niyamgiri hills of Orissa. We start with enunciating the Non market issue of this matter, the profiles, the stand and the strategy of all the interests involved in this issue. We then discuss the non market and market goals of the company tied to this issue, and finally we discuss the strategies that the company could employ in trying to achieve its organizational goals
THE ISSUE:
The Vedanta Resources company runs a refinery in lanjigargh area of Orissa for which it sources the raw material – bauxite – from the mines in Jharkhand. The company applied for bauxite mining on top of the Niyamgiri hills which is rich in bauxite.1 The Sterlite Company, owned by Vedanta, along with Orissa Mining Corporation applied transfer of 660 ha of land in rayagad district, which includes the Niyamgiri hills, for purpose of extracting bauxite. This was done way back in 2005. Following this an ‘on-principle’ clearance was given by the Ministry of Environment which later instituted a committee headed by NC Saxena to study the implications of the project for the tribes in the area. The MoE would later rescind its initial ‘in principle’ approval to the project and even reject a second clearance based on the recommendations of the aforesaid committee report thereby effectively stopping the project.
The Non Market forces against this project started gaining ground when environmental groups and tribal welfare organizations joined hands to stop the mining the peak of the hills claiming it