Report dismisses claims that KCM is loss-making
By Kabanda Chulu, Thu 13 Feb. 2014
THE Zambian government must not believe the perception created by Vedanta Resources that KCM is a loss-making company that needs to be rescued by the state, says a UK-based civil society group.
But Vedanta Resources’ subsidiary Konkola Copper Mines public relations manager Joy Sata says the mining company does not want to discuss any aspect of the report as it is inaccurate and misleading.
The report suggests that Vedanta might also be exporting considerably more copper than they claim in Zambia as well as cobalt and other minerals.
"Citizens must enhance the monitoring of trucks leaving their facilities to estimate the true amounts," it stated.
The report also looks at the real interests behind mining companies in Zambia.
"There is also need to question foreign governments such as Norway and the UK, who play a duplicitous game of funding transparency and accountability projects on mining through NGOs and the Zambian government, while also profiting from the abuses of the very same mining companies."
Commenting on the report, Das stated that it was shocking to discover how little information Zambian authorities and communities had about their own resource and the companies exploiting it.
"Despite its role in the economy, copper is the elephant in the room in Zambia. This report aims to expose the real interests controlling Zambia’s copper industry, from banks and investment firms to foreign governments and NGOs," Das stated.
And Rose stated that mining companies were commonly called ’investors’ in Zambia but what they were doing was far from investment. "It is short-lived extraction and loot of resources, leaving behind only environmental and social damage which will be paid for by future generations. There is limited time left for Zambians to change the course of history, make links with peoples’ movements opposing these policies elsewhere and truly profit from this resource before it is all gone," she stated.
When asked to respond to the allegations raised in the report, Sata said Vedanta, through KCM, had invested more than US$2.8 billion in its mines in 10 years while paying out US$68 million in dividends to shareholders and had extended the mine life substantially.
"We have read the report published in January 2014 and do not wish to discuss any aspect of it; their report is inaccurate and misleading. KCM has increased jobs from 13,000 to 18,000, doubling wages in real terms, and has provided technical training to many thousands of Zambians," Sata stated in an email response. "KCM has paid US$120 million into social investment programmes across the country; investing in schools, hospitals, agricultural and educational schemes, as well as sports and recreation.
Zambia Says Vedanta Unit Aims to Move $1.5 Billion Liability
By Matthew Hill Feb 14,
Vedanta Resources Plc (VED)’s Konkola Copper Mines Plc unit has removed “a lot of money” from Zambia and wants the government to assume its liabilities that exceed $1.5 billion, said the nation’s Vice President Guy Scott.
“This is a matter of national importance,” said Scott. “It’s a matter concerned with billions and billions of dollars, tens of billions of kwacha, that we stand to lose if we don’t stand together and show that we won’t be taken for a ride.”
An external spokeswoman for Vedanta declined to comment by phone from London, asking not to be named in line with company policy.
Milupi calls for effective mine tax regime
By Kabanda Chulu, 17 feb 2014.
Commenting on the report compiled by UK-based civil society group, Foil Vedanta, that the Zambian government must not believe the perception created by Vedanta Resources that Konkola Copper Mines (KCM) was a loss-making company that needed to be rescued by the state, Milupi yesterday said there were various ways in which mining companies hide their profits.
He said the report was a clear manifestation of what was obtaining on the ground.
The report titled ’Copper colonialism-Vedanta KCM and the copper loot of Zambia’, revealed that Vedanta Resources made approximately K2 billion (US$ 362 million) or 12.9 per cent of their total group revenue from KCM in 2013.
But Vedanta Resources’ subsidiary KCM’s public relations manager, Joy Sata, said the mining company doesn’t want to discuss any aspect of the report because it was inaccurate and misleading.
Vice-President Scott also disclosed that KCM seemed to have taken a lot of money out of the country, resulting in the company having liabilities in excess of over US$ 1 billion.
"They have not paid loans to banks; they owe a lot of money to companies. So, there are a lot of these strange things happening and government is keeping a careful eye on KCM which is hiding a lot of information from the government," he said.
Zambian mine denies reports of closing down
Shanghai Daily, Feb 20, 2014.
The government concerns followed a report released by Foil Vedanta, an international watchdog that has been trailing the operations of the mining giant throughout the world.
The report revealed that although Vedanta Resources was making most of its money from its operations in Zambia, its contribution to the country’s tax revenue was close to zero and that the company may be exporting more copper than it claims in Zambia.
According to the report, the style of operation was a pattern for Vedanta across India and elsewhere.
….But according to a statement seen by Xinhua, the company has denied the reports that it was on the verge of collapsing, adding that the company will continue to build on its current investment in Zambia.
"In recent weeks, a variety of wild and misleading statements have been made about KCM and its parent company, Vedanta Resources Plc, attributed to a report by an NGO (Non Governmental Organization," the statement said.
"Our mining operations and production has never been kept secret: the Zambian people own 20.6 percent of KCM through ZCCM-IH. Therefore as a good corporate citizen, the company reports all the required operational information, on a regular basis, to its shareholders and the various regulatory agencies," the statement added.