Vedanta Resources has issued a media statement in response to the video that was posted on Youtube where the group chairman was telling business people in India that KCM was giving his group $500 million per year after just buying the mine for $25 million . In a statement released to the media, Group Communications Executive vice president Roma Balwani accused “one activist ” for taking a small part of the video of his speech and used it negatively out of context.
Below is the full statement
Our Chairman, Mr. Anil Agarwal, recently addressed businesspeople in India when he spoke engagingly about the human side of running a multinational mining business. In an anecdote, he referred to Vedanta’s 2004 acquisition of KCM, our Zambian subsidiary. Unfortunately, one activist has taken a small part of the video of this speech and used it negatively out of context.
In his speech, Mr. Agarwal decided not to mention that since the acquisition, nearly all the returns from KCM have been reinvested back into KCM, as it simply wasn’t relevant to his anecdote. In fact, over nine years of ownership by Vedanta Resources, KCM has made $2.9 billion of capital investment and made just $73 million in dividend payments – a fifth of which is to the Zambian government.
Anil Agarwal, Chairman, said: “In the nine years of ownership by Vedanta Resources, KCM has made nearly $3 billion of capital investment and taken very little out. With our investment, we have invested heavily, extending the mine life, creating jobs and investing in the community. We are now Zambia’s largest employer and second biggest taxpayer.
“We are very thankful to the local communities, and very thankful to the government who have worked with us, and we remain fully committed to KCM and to helping the Zambian people and the Zambian nation develop and grow its natural resources.”
With that investment, the company has dramatically increased the mine life, dramatically increased employment, doubled real salaries there, provided technical and management training for thousands of Zambians, reduced the number of expatriates and continues to be Zambia’s second-biggest mining taxpayer. Furthermore, KCM has invested $120 million in local communities, providing schools, educational programmes, sustainable agricultural initiatives, critical medical programmes and funding for cultural events.
Tom Albanese, CEO, said: “KCM has a long mine life, and we are committed to see it through the near term challenges it currently has. We have made the investments, and now we’re making a commitment in terms of all aspects of the management, the stakeholder relations, the government dialogue, to make this the world-leading Company that it deserves to be. Our reinvestment in the business is not for the next three to six months, it’s being reinvested into the business for the next 50 years.”
Mr. Agarwal and Vedanta Resources continue to believe that KCM has a great future despite short-term operational challenges. He and the company remain fully committed to KCM and to helping the Zambian people and the Zambian nation develop and grow its natural resources.
Roma Balwani Executive Vice President – Group Communications and CSR