India blocks Vedanta mine on Dongria-Kondh tribe's sacred hill

After years of controversy and confusion, Vedanta's project to mine bauxite on a forested hill considered sacred by an ancient tribe has been stopped by the Indian government. "There's no emotion, no politics, no prejudice," environment minister Jairam Ramesh said as he announced that Vedanta would not be allowed to mine in the Niyamgiri Hills of the eastern Orissa state. "I have taken this decision purely on a legal approach–laws are being violated." Trouble seems to be brewing for the UK-listed Vedanta Resources on another front too–its plan to buy oil and gas explorer Cairn India for $9.6 billion could face regulatory hurdles and a takeover battle. Bloomberg and the Press Trust of India reported that not only would the government insist on its approval for the Cairn buyout, but it may also get state energy companies Oil & Natural Gas Corp and Gail, India's largest gas transmission and marketing company, to team up for a counter bid. The immediate crisis facing Vedanta however, is the setback to its plans for expansion in the aluminum sector.