UK’s benchmark index dipped down by 1.5 % on the third day of the week despite gaining 0.8% in the previous session. Thumping housing sales of the US housing market and slow movement in Japanese exports indicated a possibility of an economic breakdown.

Stocks of Vedanta Resources faced a slump on the London Stock Exchange following the news of the mining project’s failure to get clearance from the Environment and Forest Ministry. The bauxite mining project is worth USD 1.7 billion and is set up in Orissa, India. However, the mining denial issue may hamper Vedanta’s expansion mood.

Slipping shares of Vedanta also affected other mining stocks on the LSE. The Vedanta Resources is a globally recognized group that explores metals and commercial energy. Vedanta’s current operations are held in India, Australia and Zambia.

However, analysts point out that except mining sector stocks, no other stocks related to Vedanta’s developments reported a slowdown. Conversely, stocks of Sterlite Industries, the key subsidiary of Vedanta came roaring back with 1.12% growth on the BSE after losing by 4% in the previous session.

The NC Saxena panel appointed by the Indian government reported that Vedanta’s bauxite mining operation in the Niyamgiri hill area of Orissa is about to get a red signal from the government as Vedanta has violated major environmental acts like Orissa Forest Act, Forest Conservation Act, Environment Protection Act and Forest Rights Act.