Vedanta Resources Shares Fall as Indian Court Orders Halt in Tuticorin

By Oliver Griffin

Shares in Vedanta Resources PLC (VED.LN) fell after a court in India ordered the company to cease construction and other activities associated with the construction of a new copper smelter in Tuticorin, southern India, until after a public hearing has been conducted.

On Tuesday at least nine people died in clashes with police when protests against Sterlite Copper--a division of Vedanta Ltd. (VEDL), in turn a majority-owned subsidiary of Vedanta Resources--turned violent.

The BBC has reported that protesters say the copper plant in Tuticorin is polluting ground water and threatening the fishing industry.

In a filing against Vedanta, the Madurai Bench of the Madras High Court said the application for renewal of environmental clearance for the Tuticorin copper smelter plant 2 project will be processed after a mandatory public hearing.

The court said the application will be decided by the competent authority by Sept. 23.

In the interim period, the High Court has ordered that all operations at the project be halted with immediate effect while the company awaits a decision from India's Ministry of Environment, Forest and Climate Change, Vedanta Resources said.

Shares at 0855 GMT were down 5.6% at 796.60 pence.

Write to Oliver Griffin at [e-mail]

(END) Dow Jones Newswires

May 23, 2018 05:24 ET (09:24 GMT)

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