Indian court shuts Vedanta copper plant

SHARES in mining giant Vedanta Resources fell sharply yesterday after it was ordered by an Indian court to shut down a major copper smelter over environmental concerns.

The FTSE-100 firm, which is buying a majority stake in Edinburgh oil group Cairn's Indian subsidiary, said it has stopped production at the plant.

It added it was awaiting the full court decision before deciding on what further action to take.

The smelter, which employs more than 3,000 people in southern India, has been operating for about 12 years and Vedanta argues it uses environmentally advanced technology and meets all the necessary regulations.

The Tuticorin plant is the company's only copper smelter and is the ninth largest in the world. Last month Indian authorities rejected Vedanta's plans for a bauxite mine at Niyamgiri Hills.

Shares in Vedanta closed down 4.2 per cent or 96p at 2,165p.