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Vedanta shares take a tumble after legal blow
VEDANTA RESOURCES, the FTSE 100-listed mining group, yesterday said that its Sterlite Industries subsidiary has been ordered by the Madras High Court to close down a copper-smelting plant on environmental grounds.
The announcement sent Vedanta’s lower, eventually 5.5 per cent down at £21.65.
Analysts at Liberum Capital said that the suspension of the smelter might cost Vedanta up to two per cent reduction in long-term earnings.
Vedanta said it would be appealing the suspension in the High Court, adding: “Vedanta has been operating the smelter in line with the required regulations and standards using efficient technology.”
A legal challenge to the smelting plant in Tuticorin was launched before the plant began operating over 12 years ago.