The Church of England has sold shares in Vedanta Resources over concerns about the mining company’s approach to human rights and local communities.

The decision to sell £3.8 million in shares came at the recommendation of the Church’s Ethical Investment Advisory Group (EIAG) following a six-month dialogue with the company.

The Church expressed particular concern over Vedanta’s alumina refinery in Orissa, India, and a planned bauxite mine in the nearby Niyamgiri hills.

Groups like ActionAid have campaigned against the building of the mine over fears it will destroy the way of life of the Dongria Kondh tribe. There are around 8,000 people in the tribe.

EIAG Chairman, John Reynolds, said: “I am a passionate advocate for engagement with companies when we have ethical concerns. We have an excellent track record of getting our concerns heard and acted upon by the companies in which the Church investing bodies hold shares.

“We are grateful to Vedanta’s senior management for making themselves available to meet us on a number of occasions. However, after six months of engagement, we are not satisfied that Vedanta has shown, or is likely in future to show, the level of respect for human rights and local communities that we expect of companies in whom the Church investing bodies hold shares.

“In these circumstances the Ethical Investment Advisory Group advised that it would be inconsistent with the Church investing bodies’ joint ethical investment policy for the investing bodies to remain invested.”

Mr Reynolds said the Church would review its decision if Vedanta took steps to address its concerns.