In 2003, Vedanta Resources signed a Memorandum of Understanding with the State Government of

Orissa for construction of a refinery for aluminium production, a power plant and related mining
development at Lanjigarh in Kalahandi district. M/s Sterlite Industries (India) Limited (SIIL), fully
owned and controlled by Vedanta Resources, proposed to set up a refinery with a capacity of 1.0
million tonnes per annum (tpa) for processing aluminium for export. It also proposed to extract
bauxite from the area adjoining the refinery, which is estimated to have approximately 73 million
tonnes of mineable ore.
The location of the Proposed Mine Lease (PML) site is between 19 0 38” to 190 48” North latitude and
830 22’ to 830 25’ East longitude. The mining is proposed to be undertaken on the top of the
Niyamgiri hills in Kalahandi and Rayagada districts in Orissa; with the PML site between 900 to
1000 metres above mean sea level.1 The site will be spread over an area of 7 sq. km. As per the
proposal, the PML site contains 72.897 million tonnes of bauxite and 17.9 million tonnes of
overburden. The open cast extraction process would involve the removal of overburden to an average
depth of 2.7 metres, and mining of bauxite ore to a depth of 13.6 metres over the proposed site.

The proposed mining lease (PML) area, which lies on the upper reaches of the Niyamgiri hills, is
surrounded by dense forests and is the habitat for diverse species of plant and animal life.

The PML site is largely grassland surrounded by Sal forests. This type of grassy meadow eco-system is
usually found on lateritic zones on upper reaches at about 700 meters and above. The fact that this
ecosystem is mostly prevalent in areas inhabited by the Dongaria Kondh suggests that, besides natural
geological and climatic factors, it has also been modified by human actions such as burning for grasses
and collection of Minor Forest Produce (MFP) practiced over a long period by the hill tribes. Fires are an
annual feature leading to patches of grassy blanks. This retrogression, combined with grazing, adds to
the area of the naturally occurring meadows.

Some 20 species of orchids are found in and around the PML. The members of the Dongaria Kondh tribe
use these plants as medicines to treat different ailments like scorpion and snake bites, stomach
disorders, arthritis, tuberculosis, paralysis, cholera, acidity, eczema, tumors’, menstrual disorders,
wounds and sores, diarrhea, dysentery, bone fractures, rheumatism, asthma, malaria, etc.

The Niyamgiri massif is important for its rich biodiversity. In addition, it also plays the critical role of
linking forests of Kandhamal district to forests of Rayagada, Kalahandi and Koraput districts. These
forests also join the Karlapat wildlife sanctuary in the north-west and Kotagarh wildlife sanctuary in the
north-east. They thus have high functional importance in creating an uninterrupted forest tract which is
part of a continuous long corridor extending outside the protected area. Such corridors are particularly
important for the conservation of wildlife species like elephant and tiger found in this region. The wild
life productivity of this habitat is particularly high because it provides the valuable ‘edge effect’ to wild
animals with open grasslands as feeding space and the neighboring trees for shelter and escape.

The two communities regard the Niyamgiri hills as sacred and believe that their survival is
dependent on the integrity of its ecosystem. The PML is locally known as Aonlabhata for the large
number of Amla (Emblica officinalis) trees to be found on its edges, the fruit of which is harvested
for medicinal use and for sale.
Ecological Costs of Mining
Mining operations of the intensity proposed in this project spread over more than 7 square km would
severely disturb this important wildlife habitat. The entire Niyamgiri hills will suffer major
ecological damage if mining is allowed in the PML area.
Several perennial springs flow from below the top plateau, which is a part of the proposed mining
lease site. It appears likely that the PML could be one of the main sources of Vamsadhara river which
would make mining on this plateau a hydrological disaster.
 As many as 1,21,337 trees will have to be cut in case the mining lease is granted. Of these
trees approximately 40 per cent would be in the mining lease area while the remaining 60 per cent
would have to be removed to construct the access road and other mine related planned activities.
 Given that more than 1.21 lakh trees have to be felled; and since the number of shrubs and
large herbs in a rich tropical forest are at least thrice the number of trees, it can be reasonably
concluded that more than 3.63 lakh shrubs and ground level flora would also be cleared under the
project. The PML (and the Niyamgiri Hills habitat) is highly productive in terms of wildlife since it
provides the valuable ‘edge effect’ to wild animals, with open grasslands as feeding space and
neighbouring trees for shelter and escape.
 The grasses are breeding and fawning ground for Four-Horned Antelope (Tetracerus
quadricornis), Barking Deer (Muntiacus muntjac), as well as Spotted

Deer (Axis axis). A rare lizard, Golden Gecko (Callodactylodes aureus), is found on the proposed
lease area.
• The value of Niyamgiri hill forests as an important elephant habitat is well recognized; therefore
this habitat has been included within the South Orissa Elephant Reserve. Mining on the scale
proposed in this habitat would severely disturb elephant habitats, and threaten the important task of
elephant conservation in south Orissa. That mining causes severe disturbance to elephant habitats has
already been demonstrated in Keonjhar district .

The mining operations will destroy significant tracts of forest lands. Since the Dongaria and Kutia
Kondh are heavily dependent on forest produce for their livelihood, this forest cover loss will cause a
significant decline in their economic well-being.
• Their cultivation lands lie in close proximity to the PML area. Mining-related activities such as
tree-felling, blasting, the removal of soil, road building, and the movement of heavy machinery will
deny them access to their lands that they have used for generations.
• These activities will also adversely affect the surrounding slopes and streams that are crucial for
their agriculture.

According to section 4(5) of FRA, there can be no removal or eviction of people from forest land
unless the tribal rights under FRA have been recognized and the verification procedure is complete.
In order to ensure the compliance of this section, MOEF, vide its circular F.No. 11-9/1998-FC (pt)
dated 3 August, 2009, asked the state government to submit a number of certificates to GoI, before
its proposal for diversion under the Forest (Conservation) Act, 1980 can be considered. These
certificates included letters from each of the concerned Gram Sabhas, indicating that all
formalities/processes under the FRA have been
  carried out, and that they have given their consent to the proposed diversion. The District
Collectors did not attach any of these letters from the Gram Sabhas in their certificates
given in March 2010.
• The Chief Secretary, Orissa in a general direction dated 24 October, 2009, to all District Collectors,
had instructed that proposals for diversion of forest land should be put before the Gram Sabhas,
and their consent or rejection should be attached. This directive was also ignored by the district
administration of Rayagada and Kalahandi: the letters from the Gram Sabhas were not
attached with the certificates given by the Collectors.

Violation of Forest Conservation Act

 The company is in illegal occupation of 26.123 ha of village forest lands enclosed within the
factory premises. The claim by the company that they have only followed the state
government orders and enclosed the forest lands within their factory premises to protect these
lands and that they provide access to the tribal and other villagers to their village forest lands
is completely false. This is an act of total contempt for the law on the part of the
company and an apalling degree of collusion on the part of the concerned officials.

Mining will severely degrade the Niyamgiri hills ecosystem which is a rich wildlife habitat and an
important and recognized elephant corridor, endanger the Dongaria Kondh’s self-sufficient forest-
based livelihoods, and lead to the extinction of their culture over a period of time.
• More than 7 square kilometres of the sacred undisturbed forest land on top of the mountain that has
been protected for ages by the Dongaria Kondh as sacred to their deity, Niyam Raja, and essential for
the region’s fertility, will be stripped off its vegetation, soil and rendered into a vast barren exposed
land.
• Mining will build roads through the Dongaria’s territories, opening the area to outsiders, a trend
that is already threatening the rich biodiversity of the hills.
• The mining at the proposed mining lease site will provide only 3Mtpa of ore out of the total annual
requirement of 18 Mtpa of the Refinery after its ongoing expansion from the existing capacity of 1
Mtpa to 6 Mtpa (for which they have already nearly completed the work even before getting
permission). The proposed mining site thus has low relevance to the future of the Refinery and is not
critical at all for its functioning as is being claimed by the Company and the state officials.
• The Vedanta Company has consistently violated the FCA, FRA, EPA and the Orrisa Forest Act in
active collusion with the state officials. Perhaps the most blatant example of it is their act of illegally
enclosing and occupying atleast 26.123 ha of Village Forest Lands within its refinery depriving
tribal, dalits and other rural poor of their rights.

In view of the above this Committee is of the firm view that allowing mining in the
proposed mining lease area by depriving two Primitive Tribal Groups of their rights over
the proposed mining site in order to benefit a private company would shake the faith of
tribal people in the laws of the land which may have serious consequences for the security
and well being of the entire country.