Vedanta Likely to Retain Controversial Copper Smelter Amid Difficulty in Finding Buyer
Ten News Network
Mumbai (Maharashtra), 31st Jan 2023: Vedanta, one of India’s largest mining and metals company, is likely to abandon plans to sell its mega copper smelter in the southern state of Tamil Nadu. The company had announced its intention to sell the facility in 2019, amid environmental protests and a huge leak of toxic gas that resulted in the death of 13 people.
However, recent reports suggest that Vedanta may be reconsidering its decision to sell, as it struggles to find a buyer willing to pay the asking price of around $1.5 billion. The company has reportedly been in discussions with several potential buyers, including global mining companies and private equity firms, but so far none have been able to reach a deal.
Vedanta has been facing a growing backlash from environmental groups and local communities over the impact of its copper smelter on the environment and public health. In 2018, a gas leak from the facility resulted in widespread protests and calls for the plant to be shut down. Despite these challenges, Vedanta has continued to invest in the facility, with plans to upgrade and expand production capacity.
With the sale of the copper smelter looking increasingly unlikely, Vedanta may now have to reconsider its options, including the possibility of closing the facility altogether. The company’s decision will have major implications for the local economy and environment, as well as for the future of India’s mining and metals industry.