The Indian Supreme Court has allowed the British company Vedanta Resources to go ahead with a controversial bauxite mining project in Orissa state.

But, the court said, the company will have to pay for the development of the region out of their profits.

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The tribes have said they would fight to the death rather than leave their sacred home in the Niyamgiri mountains.

Environmental and tribal activists have opposed Vedanta's plans saying the mines will force people from their homes and destroy their livelihoods.

The company has an agreement with the state government to set up a bauxite refinery in the Niyamgiri mountains.

In India, both the state and central government back the Vedanta plan as part of efforts to industrialise and exploit the mineral resources of underdeveloped eastern India.

The Supreme Court told the Indian unit of Vedanta, Sterlite Industries, that they will have to pay 10% of their profits or 100m rupees (whichever is more) for the development of the region.

(BBC)

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