India’s real life ‘Avatar’ Story
Avatar — the Way of Water released last week, thirteen years after the first instalment of Cameron’s epic saga about a humanoid species called the Na’vi defending their habitat against the greed of a powerful mining corporation.
The Na’vi are nature-worshipping folk living in the fantastic world of Pandora — inundated with hanging mountains, abundant bioluminiscent flora and fauna, and nestled in the Alpha Centauri star system.
Yet, the movie’s story has an uncanny parallel much closer home, in the tribal heartland of Odisha, India — the tale of a battle between an indigenous tribe ‘Dongria Kondh’ and a $12bn mining behemoth Vedanta Resources.
Back in 2013 when this tussle had reached its denouement, I worked as an equities analyst with Credit Suisse covering Vedanta’s stock. Watching the recently released Avatar sequel brought back memories and made me realize the similarity in construct. As I delved deeper, I realized I was evidently not the first one to figure this.
But it is a story worth telling. So, here goes.
Vedanta has diversified interests in metals & minerals. Among its numerous facilities is an Alumina refinery in Lanjigarh, Orissa, operationalized in 2007. Why Lanjigarh? Because it is right next to the Niyamgiri hills which house tremendous amount of Bauxite, the raw material for Alumina.
How much does the proximity of the mine matter? Let’s do some math.
Vedanta’s alternate at that point was sourcing Bauxite from mines in Chattisgarh incurring an additional ~$30/metric tonne in logistics. Alumina production requires 3x Bauxite, so that is an additional $100/mt. Global Alumina prices were hovering at ~$350/mt then, so that’s a 30% margin bump. On a 2 million mt capacity, that translates to a LOT of money.
To set up a refinery or a mining operation, one needs clearance from the Ministry of Environment & Forests. Metals & mining operations almost inevitably cause collateral damage to their ecosystem, and with the location of India’s reserves, this usually means uprooting of forests and displacement of native tribes. Yet as far as the history of ministry clearances go, corporate muscle and economic pursuit have more often than not triumphed over ecological interests.
And Vedanta is the embodiment of corporate muscle and relentless economic pursuit. Helmed by billionaire Anil Aggarwal, the London stock exchange listed company, like many of its peers, has had a slew of legal fiascos, policy violations and yet has usually managed to get its way.
Things seemed to be going their way when in 2008, the Supreme court ordered the ministry to approve both the refinery and mining operation, completely disregarding the opinions of a Central Committee (CEC) highlighting the deleterious impact the operation would have on its surroundings.
But, this time was different. Enter the Dongria Kondh.
The Kondh Way of water… err.. Life
The Dongria Kondhs are an agriculture-led tribe with just over 8000 people spread over 100 villages. They are animists and worship their diety Niyam Raja, the supreme god of the Niyamgiri jungle, believing that he is the source of their essential resources. This reverence to their gods, hills and streams reflects in their art, in the triangular designs found on village shrines and their rituals. Niyam Raja’s abode is atop the hills — the very same peaks that were to be blown off to make way for the mines.
When the SC greenlit the mining operation in 2008, the tribe folk were appalled. The refinery had already started operations in 2007 and while it generated new employment, it had already had devastating consequences for the land, streams and the flora around it. Aware of these, the Kondhs rallied their numbers and staged numerous protests including a ten-thousand person human chain around the Niyamgiri mountains blocking Vedanta’s bulldozers. Soon enough, the movement had gained international support.
The backlash was so persistent, the Government had to take notice. And after a barrage of meetings, committees and reports, the then Minister of Environment, Jairam Ramesh removed the clearance to the mines in Jul 2011 dealing a blow to the company’s plans.
The next two years were a cat and mouse affair between the company and the tribal leaders with reports of appeasement, intimidation and abduction by the company. The company dragged its feet on the matter by litigating against the ban and appealing for revocation.
In 2013, the SC drove the final nail in the coffin. They said that the decision was for the natives to make. It proposed a referendum across the twelve gram panchayats of the Kondhs with the outcome being the final word.
I remember thinking Vedanta would just throw a truckload of money and buy out the votes. What my naïve 25 year old self didn’t realize was that for the Dongria Kondhs, their deity defined them and their existence, and no amount of money can trump that.
All the twelve panchayats voted against the mining activity.
It was a ‘David slaying Goliath’ moment for the Kondhs. And an uncomfortable situation for Vedanta.
Epilogue
The Lanjigarh refinery is doing pretty well. Post the Niyamgiri fiasco, the Orissa state worked with Vedanta to open up other sources of Bauxite to them. But the company has lost billions of dollars for the want of Niyamgiri.
I don’t want to mar this post by opining on whether the Kondhs did the right thing or not. Did they shun a chance at material progress? Did they actually prevent a disaster? Perspectives can vary.
It is, however, an unmistakable testimony to the latent power of the weak, when they come together to commit to a cause. Unlike Avatar, the Kondh’s battle wasn’t won by any Jake Sully’s heroics. But it was won by the power of indomitable belief and dogged persistence against all odds.
