Share Dealing
Market update (AM): Vedanta mining plans for tribal area blocked
Rob Langston, 24 August 2010
Miners were the heaviest fallers in early morning trading as a number of groups, led by Vedanta Resources, saw share price slip.
The firm was the biggest faller as share price dropped by 5.4 per cent to 1,927p after the Indian government blocked its controversial plans to mine the aluminium ore bauxite in a tribal area.
The site is inhabited by a primitive tribal group and would involve the destruction of important tribal sites, forest clearance and would impact on daily life and wildlife in the area. The firm has received international criticism over the plans, which has drawn comparison with the plot of James Cameron film Avatar, prompting protestors in London to dress up as characters from the film's primitive tribe, the Na'vi.
Its acquisition of Cairn India from FTSE 100 oil & gas firm Cairn Energy, in a deal worth approximately £5.5 billion ($8.5 billion), is also reported to be under threat as the government want rival bids to be considered.
Kazakhmys dropped by 3.3 percent to 1,110p while Eurasian Natrual Resources - which finds itself in the middle of a rights dispute following a Congolese acquisition - saw share price slip by 3.2 per cent to 821.5p.
Building supplies group Wolesley also saw share price fall by 3.3 per cent to 1,255p.
The biggest riser was Associated British Foods, as share price increased by 0.9 per cent to 1,025p, while interdealer broker ICAP rose 0.7 per cent to 403.7p.
Food services and support firm Compass Group saw share price increase by 0.2 per cent to 505.5p.
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