31st July, 2014. Yesterday public hearings on the six fold expansion of the Lanjigarh refinery, at the base of the Niyamgiri Hills in Odisha, were disrupted by around 1000 local people including Dongria and Kutia Konds virulently opposing the expansion.
Some Konds waved their axes demanding that Vedanta (Sesa Sterlite) leave Lanjigarh immediately and citing their objection to the Niyamgiri mine (voiced unanimously in a precedent referendum last year). The Land Losers Association also registered their objection citing the false arrests and imprisonment they have suffered since losing their land to Vedanta without proper compensation or employment as Vedanta had promised. A recent report from a local activist detailed how 34 of the Land losers have died since they lost their land, attributing this to poverty and disease from the Lanjigarh plant.
See a film of the public hearing and the key points raised by opposing groups here.
Miriam Rose, Samarendra Das, John McDonnell MP and Richard Solly in the House of Commons
Speakers from Foil Vedanta and London Mining Network yesterday presented evidence in the House of Commons on the criminal behaviour of some London Listed mining companies, and called for better accountability measures and the de-listing of criminal companies. Focusing on contentious UK miner Vedanta Resources, they exposed new evidence of tax evasion, illegal land grabs, displacement, major pollution and water poisoning, as well as the UK’s role in promoting and protecting the company, and called for its immediate investigation and potential de-listing in London.
In a packed meeting hosted by John McDonnell MP in the House of Commons speakers told MPs, journalists, diplomats and members of the public attending that high risk mining companies like ‘the world’s most hated company’ Vedanta Resources are bringing shame on the London Stock Exchange, and demanded better accountability measures and the de-listing of criminal companies. MPs attending were Jeremy Corbyn, Eric Joyce and John McDonnell.
7th July. In May this year Foil Vedanta released a video showing Vedanta boss Anil Agarwal mocking the Zambian parliament and bragging that he makes $500 million per year from Konkola Copper Mines (KCM), having bought the company for $25 million, against a $400 million asking price. The video caused outrage in Zambia, where KCM has failed to pay taxes, and is indebted to contractors. A few days later hundreds protested in the streets in Lusaka demanding that Vedanta pay taxes and improve the conditions for workers. In light of the profitability of KCM claimed by Agarwal, this article examines the poor treatment of KCM workers by Vedanta, and some of the recent protests by current and former miners.
4th July. This explosive article appeared in today’s Post Zambia newspaper. An arbirtration hearing in the London High Court of Justice heard on Tuesday how Vedanta has used a Dubai based subsidiary called Fujairah Gold to buy under-valued copper from its subsidiary KCM, and hide its profits, in a scam known as transfer mispricing. Fujairah Gold is managed by Anil’s son Agnivesh Agarwal, and is a well hidden subsidiary, controlled by several other Vedanta subsidiaries. According to Vedanta’s 2013 Annual Report:
Fujairah Gold Gold and Silver processing is an Indirect Subsidiary of the parent Company Vedanta Resources with 58.02% shares based in Dubai, UAE which is under Copper Mines Of Tasmania Pty Limited (‘CMT’)CMT 100.00% which is under Monte Cello BV (‘MCBV’) Holding company based in Netherlands which is under Sterlite.
Download the full judgment here
The article also details how Vedanta’s often claimed $2.8 billion in KCM investment is in fact a fabrication. The judgement itself states that; ‘the $2.8 billion figure was in fact made up of US$2.07 billion of internally generated cash flows and US$739 million through borrowing from banks, mainly Standard Bank. It was clear that Vedanta had not injected any capital into KCM as it was supposed to have done.’
The central question is how Anil Agarwal can claim that KCM is earning ‘$500 million per year plus an extra US$1 billion’ when accounts show a loss of $6.3 million after tax in the year ending 31 March 2013. The judgement suggests that ‘if these claims are true then it must be happening by unreported means. ‘ Transfer mispricing is one of the most common techniques for hiding profit. The Zambian Government is currently carrying out a ‘forensic’ audit of KCM’s accounts to ascertain the truth about their profits and taxes due. Watch this space for more news!
Full article below
kcm cheating on copper exports
The Post newspaper, Zambia.
By Mwala Kalaluka
Fri 04 July 2014