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(Bloomberg) — India faces a copper supply shock after a state government ordered billionaire Anil Agarwal’s Vedanta Ltd. to shut down a plant permanently following deadly protests in a move that will slash nationwide output and stoke demand for imports. The company’s shares fell.

The Tamil Nadu government directed the southern state’s pollution control board to seal the 400,000 metric-ton-per-year smelter in Tuticorin in the interests of the people, it said on Monday. About 13 people died at the site last week after police opened fire as locals protested against alleged pollution.

The order to shut the smelter will reduce India’s production by about half, spurring imports as industrialization and increased consumption of cars and appliances fan demand. Vedanta had suspended output from the plant in March for maintenance, and the closure was extended as the protests mounted. The shutdown is an “unfortunate development,” and Vedanta will study the order before deciding on a course of action, the company said.

“If the closure is permanent, then what we expected to happen two years down the line will happen with immediate effect,” said Jayanta Roy, senior vice president at ICRA Ltd. In April, the local arm of Moody’s Investors Service had pegged India to flip to becoming a net importer by the next fiscal year.

Shares sink

Vedanta shares lost as much as 6.2 percent to 237.90 rupees in Mumbai, the lowest since June. The stock has sunk 24 percent this year, making it the worst performer among the top 10 metal companies in India. Its London-listed parent, Vedanta Resources Plc, retreated as much as 5.3 percent.

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MARKET SUMMARY

INDICES

Name Last Change
DOW 25462.90 0.33%
S&P 500 2768.78 1.46%
NASDAQ 7534.90 0.66%
TSX 15404.13 0.82%
TSX-V 690.46 0.00%

Resource Commodities

Name Last Change
Gold 1228.45 0.21%
Silver 14.69 0.75%
Copper 2.74 0.030
Platinum 831.50 0.24%
Oil 68.65 1.60%
Natural Gas 3.20 3.81%
Uranium 27.68 0.00%
Zinc 1.22 0.00%

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