KCM is ripping of Zambians, made $362 million in 2013 from us, but paid little tax, says UK NGO Foil Vedanta have today released a report on the operations of Konkola Copper Mines (KCM) in Zambia. The report reveals that, contrary to popular opinion in Zambia, Vedanta (KCMs parent company) is not Indian but wholly British owned and controlled, and is making large profits at KCM. The report demonstrates Vedantas pattern of buying undervalued state companies, polluting, and operating without permission all over the world. It also reveals how investment companies like Blackrock have controlling interests in Zambian copper as key shareholders behind Zambias biggest mining companies. Foil Vedantas report Copper Colonialism – Vedanta KCM and the copper loot of Zambia is a ground breaking study of copper mining in Zambia, focusing on British mining company Vedanta, KCMs parent company. The report reveals that Vedanta made approximately $362 million, or 12.9% of their total group revenue, from KCM in 2013 (according to the company itself and analyst reports). The authors, who visited Zambia in December, note the number of misconceptions about this company in Zambia – where Vedanta has created the perception that they are an Indian company, and are making such a loss at KCM that they may need to be rescued by the state. In fact KCM are one of the highest profit making subsidiaries of the parent company. The report details how Vedanta, a FTSE 250 London based company which is 67.99% owned by Chairman Anil Agarwal via tax havens, bought KCM for a fraction of its true value, possibly losing the Zambian exchequer up to $1.4bn in total. It goes on to record some of the environmental and social abuses of the company in Zambia – including pollution of the river Kafue in 2006 and 2010 which have led to ongoing health problems as extreme as deformed births and miscarriages in the Chingola area, as well as poor workers conditions and low pay. Vedantas tax contributions in Zambia are close to zero, and they even brag that 50% of tax paid is via employees Pay As You Earn (PAYE). Vedanta hide these truths in Zambia by paying former journalists as PR agents to keep their image clean. Find the full report here: foilvedanta.org/articles/copper-colonialism-foil-vedanta-zambia-report-launched/
Posted on: Fri, 31 Jan 2014 12:52:11 +0000