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Indian state orders permanent shutdown of Vedanta's Tuticorin copper smelter

India's Tamil Nadu state ordered the permanent closure of Vedanta Ltd.'s Tuticorin copper smelter following violent protests last week that killed 13 people, Reuters reported May 28.

"We have taken a decision to permanently shut down the plant and today issued government orders to do the same," said Edappadi Palaniswami, Tamil Nadu's chief minister.

The Vedanta Resources PLC unit was aiming to double the smelter's current capacity of 400,000 tonnes per year.

Operations at the plant were suspended in March for 15 days of planned maintenance activity. The shutdown was later extended after the company's application to renew the plant's operating permit was rejected.

P. Ramnath, the head of Vedanta's India copper business, told Reuters on May 25 that the company hoped to restart the facility and push through with its expansion despite the protests, and that it would legally contest any attempt to close it down.

Ramnath also denied a claim from the Tamil Nadu Pollution Control Board that the company was preparing to restart Tuticorin without approval. The board cut the power to the facility last week.

"There was no reason for making preparations to restart the plant when we are still under maintenance that happens once in four years," the executive said. He added that the company was mulling over legal options to have the power restored to the smelter.

Vedanta called the closure an "unfortunate development" and said it will review the order. It already evacuated about 3,500 workers from the Tuticorin site due to the tensions.