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Video reveals $500 million profit at KCM

Filed under: Breaking News,Business |
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Vedanta Boss Anil Agarwal who also owns 69% of shares in the company makes 500 million US dollars profit each year, according to a video released by Activists from Foil Vedanta.

A video released on Monday, May 13, 2014 shows Vedanta boss telling a large audience how he bought Konkola Copper Mines for just $25 million, rather than the $400 million asking price, and receiving loud cheers when he states that the company brings in $500 million in profit each year.

Agarwal also claims KCM on top of $500 million it gives him every year in profit, he gets an extra $1 billion.

Back in Zambia, Vedanta has continued to claim that its making a loss, or a minimal profit at KCM

Below is a press release issued by Activists to Zambian Eye:

A video(1), released by activists from Foil Vedanta(2) today, shows Vedanta boss, and 69% owner, Anil Agarwal, telling a large audience how he bought Konkola Copper Mines for just $25 million, rather than the $400 million asking price, and receiving loud cheers when he states that the company brings in $500 million in profit each year.

Foil Vedanta had previously released figures from Vedanta’s annual reports showing that the company made $362 million in 2013(3), but Vedanta CEO Tom Albanese(4) had disputed this during his visits to Zambia in February, repeating the previous claim that KCM was making a very low profit or a loss due to high operational costs and taxes.

(5) In the video, Agarwal, speaking to the Jain International Trade Organisation(6) in Bangalore, India, March 22 – 23 this year, states about KCM:

“Its been 9 years [since we’ve owned the company], and since then every year it is giving us a minimum of 500 million dollar, plus 1 billion dollar, every year it has been continuously giving back.”

Anil Agarwal also explains in detail how he came to buy ‘the largest copper mine in Africa’ at Konkola, describing how he took a chance by offering only $25 million rather than the $400 million asking price. He describes his surprise at receiving a VIP welcome in the Zambian parliament, and ridicules the then Zambian President Levy Mwanawasa for claiming that Vedanta would improve the lives of Zambians, saying:

“He told the entire parliament that what great people we are, and our empire, and that they will make our lives gorgeous. And they will make schools, make hospitals and blah blah …”

A few weeks ago a protest at the Zambian High Commission in London next called for Vedanta and the Zambian government to release KCM’s annual reports, containing the official figures on profits and tax payment, which are currently kept secret.

They also suggested that Vedanta should be forced to pay the fine of $2 million served by Zambian courts in 2011 as compensation to 2000 claimants poisoned by major pollution of the river Kafue in 2006, and stop ongoing spills affecting Chingola residents. (7)

In addition they joined the calls of KCM employees and former employees in Zambia, who are demanding that retrenched workers are properly compensated for taking redundancy, and existing contract labourers are unionised.(8)

Meanwhile Vedanta’s Lisheen mine in Ireland, which they bought from Anglo American in 2011, is facing trouble, as a High Court judgement has ruled that three senior managers should be paid 6 months sick pay after leaving the company due to ‘bullying, harassment and intimidation since Vedanta took control’. Local councilors, as well as the aggrieved managers, are also questioning Vedanta’s decision not to wind the mine down by 2015, as they had originally planned.(9)

 A 3:54 minutes video in Hindi with subtitles in English can be watched by clicking here. Then you may need to click on the caption icon in the menu bar beneath the video to see the translation.

This is an excerpt from the full video of the conference originally posted here: http://www.youtube.com/watch?v=Dj3fXRlIo-8&feature=youtu.be

Foil Vedanta are a London based international solidarity group focusing on the activities of British mining company Vedanta. It links up global communities affected by Vedanta, and hold them to account in London. It is currently aiming to make the case for Vedanta to be de-listed from the London Stock Exchange for their human rights and corporate governance abuses.

Full transcript of 3.54 min video of Anil Agarwal speaking at Jain International Trade Organisation (JITO) conference in Bangalore, India, March 22 – 23 2014

00:02 7-8 years back, hunger remains to do big work
00:07 pondering what to do
00:08 how can we let life go in vain?
00:10 I saw it in the paper FT (Financial Times)
00:11 (drinks mineral bottled water )
00:16 there was largest copper mine in Africa
00:21 that copper mine was up for sale
00:26 that government was privatizing it
00:28 I got quite interested in it
00:29 I asked few people, they replied, “aren’t you ashamed?”
00:30 “what ridiculousness you are talking of?”
00:34 I told them – “where is the problem in talking?”
00:36 “speak to them let us see…”
00:38 Then he saw it, it was a big deal
00:41 I have a friend in McKensey – Ranjit Pandit
00:46 I went to him, asked him to make papers
00:48 “Make the papers beautiful, professional”
00:50 Papers were prepared. We kept it at 400 million.
00:56 In pocket we do not have 4 million!… bidded for 400 million!
00:59 25 million … 25 million that we ha ha ha …
01:03 Take chance in life definitely!
01:06 All people sitting there… Take chance!
01:08 If you won’t take chance, nothing will happen
01:10 (Clapping, Whistling… )
01:16 Why we are different –
01:17 different because we take chances
01:18 I told we have to take chance
01:20 Then we said “25 million we will give you cash
01:25 and 325 million we have to invest in
01:27 making the machines running”
01:29 We forgot the matter, and suddenly
01:31 in about a month or so, we received calls
01:33 they invited us. We called up and inquired
01:36 They confirmed “this company is yours”
01:37 “really ?”
01:38 I took one of our engineers and went to Johannesburg
01:42 and further changing flight there to Lusaka
01:45 When we arrived there, were surprised to receive
01:48 VVIP treatment there, red carpet, entire govt machinery
01:50 has arrived at airport to receive us. Surprised seeing such
01:53 arrangement we asked someone. “Its all for you sir”.
01:55 “How many people you have in the delegation team?”
01:57 Ministers, VVIP vehicles, cavalcade… We were told “you
01:59 will be going to the parliament today; and President’s place as well”
02:03 “Where are your people? Its necessary to meet the President.”
02: 09 repeatedly we were asked “where is your delegation?”.
02:12 I asked “what delegation? We are the delegation only”.
02:17 (Laughs)
02:21 We were taken to the President. The President… “Your excellency
02:24 We are 30 people in our delegation. But we missed the flight
02:27 at Johannesberg.”
02:30 (Audience Laughs)
02:31 “Can you wait till tomorrow?
02:33 They all will come”
02:34 (imitating President) “No No No The Parliament is tomorrow,
02:37 we have to decide today.”
02:39 “Key is ready”
02:40 “Are you ready ?“
02:42 (imitating self) “I am ready, I am always ready
02:44 I will handle it”. (Laughing)
02:49 And they came, what a Parliament House!… first time I saw.
02:52 Chuckling
02:53 I had held a bead necklace (in name of God RAM) and
02:55 kept chanting, moving ahead
02:58 With my smiling face
03:01 When I seated there with my man, the President came
03:04 and sat by our side. He told the entire parliament
03:07 that what great people we are,
03:09 and our empire, and that they will
03:11 make our lives gorgeous. And they will
03:13 make schools, make hospitals and blah blah …..
03:16 We just kept watching chanting Gods name there.
03:20 All you make, what we make !!! Ahhh ha ha ha ha ha ha
03:22 (Clapping)
03:30 We took over the company. Its been 9 years, and
03:35 since then every year it is giving us a minimum
03:38 of 500 million Dollar plus 1 Billion Dollar every year
03:41 has been continuously giving back.
03:45 It’s a matter of taking a chance. I will keep
03:47 telling you stories. We had oil company. They told us
03:51 no one else can buy oil company.

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