VEDANTA BOSS CLAIMS $500 MILLION PROFIT PER YEAR AT KCM!

Video of Anil Agarwal speaking in March 2014 reveals how he bought KCM for just $25 million. Agarwal claims KCM is giving him $500 million every year in profit, plus an extra $1 billion.Meanwhile Vedanta have continued to claim that they are making a loss, or a minimal profit at KCM.A video released by activists from Foil Vedanta , 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, but Vedanta CEO Tom Albanese 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.

In the video, Agarwal, speaking to the Jain International Trade Organisation in Bangalore, India, March 22 – 23 2014, 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 …”

View Original post here

However in responding to the video Vedanta Resources said it was taken out of context. Click here to view Vedanta response

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39 COMMENTS

    • Lest we forget how corrupt mwanawasa was by giving this crook wealth. Imagine how much he reaped from that deal.

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    • Zambian Governments with their humiliating hunt for so called foreign direct investment. Pure text book belief.
      Are we still living in a stone age era? One wonders why ZRA is keen on menacing local businesses and maintains hands off stance and policy on these heartless sh!tho!e investors.
      ZAMBIA, THE HUNT FOR FOREIGNERS TO RUN YOUR ASSETS HAS BEEN AN EXERCISE REIGNING IN FUTILITY. We definitely have h!tho!e businessmen citizens in the land or maybe leadership looking down “mediocreally” on its citizens. Empower your people! Sale KCM to Zambians.
      Wake up and run your affairs.

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    • MOST OF OUR PROBLEMS ARE SELF-INFLICTED.
      WE CONTINUE BUILDING MALLS INSTEAD OF FACTORIES.
      THE MALLS ARE VORACIOUS DEMANDERS OF FOREX WHICH DEPRESSES THE KWACHA EVEN FURTHER.
      FOR EVERY MALL BUILT TWO FACTORIES SHOULD BE BUILT SHOULD BE OUR POLICY WHILST BEING PRUDENT WITH OUR RESOURCES.

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    • Hihihihihihihi
      Ati sh!tho!e businessmen. Yaba!
      Hachilema Hikainde, Modfrey Gwamba,
      Bupia Randa and Kashimba Chimbwili may be gnashing their teeth at your statement. Was that assault directed to them?
      Yeah these Zambian crooks can help run our mines, can’t they?
      They can be crooks working as investors and allow competent CEOs run mines. Atleast they will be Zambian crooks.

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    • 1.3 Let me repeat. A wholy Zambian owned company called Kafue Consortium had applied to buy the entire ZCCM but some clever experts advised government to sell it to foreign investors. ..they used some terminology like UNBUNDLE IT AND SELL IN UNITS. The KC idea of buying ZCCM as a single unit meant that if one mine faced challenges, the other mines would come to its aid like expertise, transfer skilled manpower to the other units while you work on the problem at the affected unit. That way job losses would be avoided or minimized. But the vultures prevailed.

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    • He who laughs last…..Now we are also grabbing it from him for a song. Bye Bye Agarwal

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    • I can not watch this again as my BP will explode…what annoys me is that lazy man in State House continued to give access to this ba$tard Anil even after this!!

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    • 1.6 Ndanje, get your facts right, Kafue Consortium was not wholly Zambian owned, it was made up of Noranda and a few other western companies…

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    • Ichanda why have you failed to mention the Zambians who were part of this group? Is it because they have names such as Sanderson or Bull?

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    • Musa,

      Stereotyping based on limited experiences with people of different races is not good.

      You are just as bad as those people that say “never trust a black man”, because “they will hammer your wife and steal your money”.

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    • Zedians are not only xenophobic but tribalists and racists too. Where is one Zambia one nation? Only on the coat of arms

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    • Musa – Ba$tard Anil was not even a miner but you sold him the mine and he paid money from selling copper from the selfsame mine. Don’t paint everyone with the same brush based on limited experience!!

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    • @Steve, you are wrong to say that Zedians are tribalist & racist. Like @Musa you have stereotyped. The vast majority are very tolerant and incredibly friendly. Just some elements in recent decades due to the segmenting nature of multiparty politics. It’s become okay to be abusively vehement in castigating the other side.

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    • @Patriot Abroad – I apologise I was wrong. Yes the majority of Zambians are not racist, tribal and xenophobic. The few who are these things are dominating public discourse especially on social media and the picture they are painting is very negative. But the good Zambians should not just watch but respond. I dont think all Germans wanted war but the majority who didnt want were too intimidated by the few bullys and the second world war happened. Its always the bullies whose opinions rule when the rest opt for silence

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    • Musa is very correct. Indians are the most racist people on this planet. As much as white people can be racist, you can at the least exist cordially with white people when you call them on their nonsense. Ask other Asians about Indians and you will be shocked. Never trust Indians period, black people are never racist, just brash. Brashness is easily corrected. Africans need to stop trusting everyone. These people are worse than european colonialists.

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  1. This man is a crook. Most business men (and women) are crooks.

    The MMD sold that mine in good faith.

    The problem is that our PF government has an agenda which will ultimately benefit top leadership, not the people of Zambia.

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  2. @ Pharaoh’s Bragga

    You make me miss Post Newspapers’ Kalaki satirical scripts.

    Yeah man Zambians should wake up but do and can politicians allow that?
    Where has ZCCM IH an equally sh!tho!e shareholder been when all this economic sabotage and atrocities were ondoing at Konkola Copper Mines?

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  3. Thats what happens when you have so dull people managing your country. Why cant Zambians start running that KCM. You are inferior to your shadows no wonder foreigners are always shiiiting on you. Shame and shame.

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  4. Perhaps we should send our presidents to the DRC to learn how to handle investors. In the DRC mining companies face constant power shortages to the extent that they resort to using generators. They never complain. In Zambia they use power shortage as one reason they can’t make profit. In DRC even a traditional chief can deport an erring expatriate, the expatriates don’t ensure they are never out of step. In Zambia anything that disturbs a single muzungu “Will scare investors away .” In Congo the security is not taken for granted but the mines continue operating. In Zambia where there’s better security there always complaints about poor security.

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    • I am disturbed at the fact that we are seen to be cluesless at how wolves in Government and previous Governments, individuals in politics both serving and in opposition eye these issues with vested fixated selfish interests. Always looking for ways and means to amass wealth at the sometime pretending to work or speak or fight or wanting to die for us.
      If things were done in the best interest of our country, all these artificial commotion in the mining industries would not be hitting headlines.
      I hope ECL will put Zambia first. You hurt Zambia, you hurt me. I’ ma come for your thick corrupt throats.

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    • @Ndanje Khakis, DRC and Congo are regimated in managing mines for cruel heartless Westerners, not the people who are kept busy fighting each other and fighting off infections like Ebola HIV/AIDS; while their resources are shipped off to enrich Westerners.

      Seems there is a task for @Thorn in the Flesh, maybe he can go after Vedantas’ Agrawal and his mates, since our secret service can allow them to kill our people, demand audience in Parliament, threaten to sue us ,(like he’d win)! Go get him tiger…….

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  5. Agrawal must pay for what he has stolen from us! Our eyes are definitely on the action the govt will take to flush out these thieves and if possible recover something from them.
    Now I understand that truly the thieves are not necessarily outside but inside. Guards only stop small thieves from gaining entry but cannot stop the thieves inside!

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  6. Zambian business is at the mercy of a politician . Look at how Fr Meembes post was closed by kambwili and lungu.

    Politicians want a successful business man to work work with ruling party.

    And any change of govt you are GONE. You cant develop a nation like that.

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  7. I just think we need to take Mines control out of the hands of Parliament/govt.

    We have historically, criminal politicians ‘on the make.’ Maybe an independent organisation can make these decisions and monitor. It’s too tempting to allow a group of corrupt people to make these decisions.

    I just wonder why after Mwanawasa, no govt and it’s politicians tried to rectify Vedantas’ thieving purchase until now. Kudos to President Lungu being tough, and imposing new tax collections. How corrupt is KCCM, this is more than blindness. Looks like there is a wide system in place with kickbacks and paybacks. OUR MINES are for the people.

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  8. Where is ZRA to audit KCM and charge them with penalties for under declaration of profits and revenue. If his net profit is $500 million p.a. And he makes $1 billion p.a. in turnover then this should be compared to the financial statements filed at ZRA. Charge him for the royalties under paid, vat underpaid, ct underpaid. In fact there could not even have been vat refunds to KCM going by his turnover. Vat refunds should be claimed back. Lastly all those corrupt zra and ministry of mines officials who have been aiding these crooks must be prosecuted for turning against their country. There actions have put misery on those mine workers and Suppliers and everyone connected to these families.

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    • ZRA ? Forget it. In fact they are part of the problem together with the immigration department. Officers at ZRA like bribes from both locals and foreigners. You can have your penalties written off by paying someone at ZRA. At immigration a poorly qualified foreigner can get a work permit by simply bribing someone there.

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  9. The revelations by this selfish man Anil has vindicated the ECL in his nmove to have KCM liquidated. The mine has been cheating the governmnet through tax evasion, transfer pricing and other profit manipulation mechanisms. HH and Kambwili were strongly opposed to this move by ECL so what can they tell us? If they are men enough let them own up and opologise to the Zambians for misleading them. These are the types of transactions HH is specialised in in order to get kick backs like What Mwanawasa did when he sold this lucative mine to this dishonsty man for $25m at a great expense of Zambians. So you can now tell why HH was so much against this move. A THIEF NOW IS A THIEF ALWAYS, thats how HH is. Careful with him.

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  10. Lungu made a right decision .This KCM guys are evil.I don’t know rich Zambians can’t invest in mining and see what can happen.HH sold mines n got commissions thru selling mines n is hiding da money in offshore accounts instead of investing in Zambia.No foreigner would develop your own country period.Direct investmnet is good when locals are involved.Americans themselves invest in America
    1.ZRA chaps steal from the nation by getting bribes(hilux,houses ects)-Useles—- chaps
    2.Police also don’t check the quantities
    3.Ministers are also part of payroll
    4.Zambian employees (Finince department)helping crooks to steal from your own country.
    Zambia is rotten country indeed.We don’t have pipo to lead us.

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  11. giving VVIP treatment to a con man by the Government! That was bad indeed. Careless talks and what goes around comes around. Good move to get KCM and it exposes the evil deeds of the past

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