Two Arizona members of Congress yesterday sent a letter to U.S. Attorney General Michael Mukasey expressing concerns about the environmental track record of the India company Vedanta/Sterlite. U.S. Reps. Gabrielle Giffords & Raul Grijalva urged the U.S. Department of Justice “to launch an immediate investigation into the environmental record for bidders” before the Vedanta offer is accepted.
The full text of the letter reads as follows:
“Dear Attorney General Mukasey:
We are writing to you to express our concerns related to the impending settlement of bankruptcy proceeding for the mining company ASARCO. Specifically, we are concern about the potential acquisition of ASARCO operating assets by Sterlite Industries, Ltd. of India, a subsidiary of Vedanta Resources, PLC.
As members of Congress representing two districts from Southern Arizona, which include ASARCO headquarters in Tucson and two of its open-pit copper mines, it is very important to us and our constituents that the next owner of ASARCO’s facilities have a well-documented record as a responsible employer and environmental steward. We have reason to believe that Vedanta does not meet that standard.
Vedanta has established an operating record in India and Africa that does not bode well for responsible stewardship of assets in the United States. In particular, we are troubled by reports that Vedanta may have engaged in a pattern of environmental labor abuses including:
* contaminating water supplies near mines in India and Zambia,
* improperly disposing of toxic waste and
* failing to provide protective gear to mine workers.
Despite these red flags in Vedanta’s background, the Department of Justice does not seem concerned. We were troubled to read that at a hearing last week, DOJ attorney Alan Tenenbaum stated that the Vedanta’s environmental record should not be a “dispositive disqualifying factor.” We could not disagree more. Given ASARCO’s existing legacy of environmental degradation, it should be a priority to ensure that its assets pass into the hands of a responsible corporate citizen.
Before allowing this deal to proceed we urge the Department of Justice to launch an immediate investigation into the environmental record for bidders. If the Department of Justice approves the settlement -- as is required by the Comprehensive Environmental Response, Compensation and Liability Act -- before conducting such investigation, we will ask the Arizona Department of Environmental Quality to conduct an investigation before approving any transfer of offering permits to the new owner.
Sincerely,
Gabriella Giffords, Member of Congress
Raul M. Grijalva, Member of Congress”