Vedanta Resources have received yet another blow to their plans to mine the sacred Niyamgiri Mountain in India, ancestral home to thousands of the Kondh tribal people.

The Church of England’s investment arm (the Church Pensions Board and The Church Commissioners) has sold all its shares in the FTSE 100 listed company.  As a result it felt morally and spiritually compelled to sell its approximately £3.8m stake in the company.

After a 6 month investigation, including a visit to the region facilitated by ActionAid, the Church found that they were ‘not satisfied that Vedanta has shown, or is likely in future to show, the level of respect for human rights and local communities that we expect.’ 

ActionAid has been campaigning alongside the Kondh for the protection of this sacred site for six years and welcomes the Church of England’s decision as a crucial indictment of Vedanta’s behaviour.  The move is unprecedented as the Church normally opts for engagement as a way of improving corporate practices.

Vedanta’s other shareholders are now under increasing pressure to rethink their investment in the company.  The Norwegian Pension Fund has already withdrawn its US$15.6m stake and in 2008 Edinburgh-based pension fund Martin Curry sold their shares, valuing £2.3m. 

Meredith Alexander, Head of Trade and Corporates, ActionAid said "This is a massive set back for Vedanta.  The Church of England’s decision to sell all its shares is a welcome move, which throws down yet another challenge to the company."

The Kondh rely on Niyamgiri Mountain for their food, culture and medicines and it is the seat of their god, Niyam Raja.  The mine would lead to massive deforestation, threaten key water sources and destroy the local ecosystems that they rely on. 

With the Kondh repeatedly saying that they do not want the mine, is it really is in the best interests of the shareholders to allow the project to go ahead?

The Indian Government has yet to give final approval for the mine.  Please support the Kondh by signing the petition to the Indian Prime Minister.