PRESS RELEASE
3rd August 2015
VEDANTA AGM: ANGRY PROTESTS
in INDIA, AFRICA AND LONDON
 Boxing match between company execs is staged during major protest at
Vedanta's London AGM.
 Parallel protests in Zambia, and Odisha, Hyderabad, Udaipur, Delhi and
Korba in India, on Global Day of Action against Vedanta.
 Vedanta shares slip to 377p as their merger attempt with oil and gas
subsidiary Cairn India tries to grab cash reserves to pay $9.1 bn net debt.
Seven global locations in India and Africa(1) held angry protests today and over the
weekend opposing the activities of British-Indian mining company Vedanta(2) while
Vedanta's AGM at Ironmongers Hall, Barbican, London was mobbed by a loud rally
organised by Foil Vedanta(3), accusing the company of pollution, human rights
abuses and financial mismanagement. In London a comical staged boxing match
between Vedanta's 69.6% owner and Chairman Anil Agarwal and new CEO Tom
Albanese, revealed the company's debt problems and internal dynamics while
protesters chanted 'Corporate criminal, shame on you!' and drummed loudly(4).
Vedanta's share price has slipped 61% this year to 377p, and continues to dive as
Q1 results show increased debt, and Cairn India minority shareholders oppose their
attempt to merge with the oil and gas subsidiary to gain access to its $2.6 billion
cash reserves for debt servicing.
In the Zambian copperbelt, communities living around the mines and smelters of Vedanta's
copper subsidiary Konkola Copper Mines staged two days of protests in Chingola town
over the weekend. They decried KCM's continued pollution of the River Kafue and local
streams, which have left the water devoid of life, and communities with long term health
problems.1 Most of the protesters are also victims of the major pollution of the river Kafue
by Vedanta in 2006, which affected up to 40,000 Zambians and was covered by a major
expose in the Observer newspaper on Sunday2. KCM was finally confirmed as guilty by
the Supreme Court of Zambia in April this year, though $2 million compensation earlier
awarded to the claimants was retracted under pressure from company lawyers. 3 The
claimants have accused Vedanta of corruption and bribery in the case.4
Joseph Sibezulu, one of the protesters, from the Mambwe tribe in Northern Province of
Zambia, said:
1
2
3
4
http://www.theguardian.com/global-development/2015/aug/01/vedanta-zambia-copper-mining-toxic-leaks
http://www.theguardian.com/global-development/2015/aug/01/vedanta-zambia-copper-mining-toxic-leaks
http://www.lusakatimes.com/2015/04/03/the-supreme-court-upholds-kcms-high-court-guilty-verdict-of-waterpollution-which-poisoned-more-than-2000-people-in-2006/
http://www.foilvedanta.org/articles/zambia-evidence-of-corruption-and-miscarriage-of-justice-in-kcm-waterpoisoning-case/
“Zambia's environment has been polluted and destroyed by the so-called foreign
investors including Vedanta. People are suffering health problems and the companies
don't even help us with medical expenses. We as Zambians say no to these looters.”
KCM was earlier indicted in Zambia when evidence emerged of major tax evasion and
transfer mispricing.(5)
A parallel event also took place in the capital Lusaka, organised by the pressure group
Power Zambia, who issued a press statement highlighting the poor working and health
conditions of KCM's workforce, including the impacts of high arsenic-tainted copper
concentrate, which was recently being imported by KCM from Chile, but was banned from
processing in Zambia by the government in July 2015, as it endangered workers and the
environment.5
2000 people from indigenous communities (adivasis), dalits and farmers took to the streets
in Muniguda, Odisha, today calling for the de-commissioning of Vedanta's Lanjigarh
refinery. The spokesperson of Niyamgiri Surakshya Samiti, Lingaraj Azad reported over
phone :
“Protest against Vedanta by about 2000 Dongria people was held today at Muniguda.
The refinery pollution is depleting the environment. Fly ash and other harmful gases
from the refinery are causing productivity and vegetation loss and burning leaves.Fruit
bearing trees and agriculture are adversely affected due to the polluting unit. Leaching
chemicals from the ash & tailing ponds are causing serious health hazards to local
people. As there is no chance of getting the Niyamgiri mineral reserve, there is no point
in keeping the factory here and polluting the environment, harassing the people, flora
and fauna of the region.”
A demand letter was submitted with the local BDO, addressed to the Governor of Odisha,
demanding the immediate dismantling and removal of the factory, and distribution of
Bhudan Land among the landless people of the region.
Protesters at Vedanta's AGM in London focused on the company's $9.1 billion net debt 6
crisis and desperate attempt to merge with oil and gas subsidiary Cairn India to gain
access to its $2.6 billion cash reserves.(6) Vedanta's Q1 financial results released on 29th
July revealed $500 million increased debt and impairments. The share price has now
slipped to an historic low of 377p. Dissident shareholders will warn Vedanta's shareholders
inside the AGM that the company may follow the pattern of Indian energy corporate, Essar
- bleeding subsidiaries of their assets, de-listing them, and incurring huge debt writedowns,7 if they continue on their current trajectory.
Miriam Rose from Foil Vedanta says:
“Vedanta has been increasingly restructuring its toxic debt into Indian public banks,
putting the taxpayer at risk of major losses if the firm goes bust. The high risk, high debt
operating style also puts its 82,000 employees in a very insecure position, as jobs that
were touted as 'developing' their communities are being lost overnight, leaving
communities polluted and devastated without livelihoods.”
5
http://www.lusakatimes.com/2015/07/08/government-rejects-toxic-imported-copper-concentrates/
6
Onesource Report, 31 July 2015
http://www.tehelka.com/how-they-milked-the-system-dry/
7
Vedanta recently announced 'drastic' job cuts across its Indian aluminium business, which
it claimed was due to cheap imports from China and low aluminium price. 8 9
In Rajasthan, India, retrenched miners from Matoon Mines Mazdur Sangh (Matoon Mines
workers union) protested alongside local villagers polluted by phosphate dumps on 3rd
August in Matoon. Ninety miners were dismissed by Vedanta subsidiary Hindustan Zinc
Limited in December 2014 with only 1 month's advanced pay. Berulal Meghwal, Dalit
farmer and Matoon mines trade union activist said:
“Vedanta have flooded this area with money and bribes, and flooded my fields with
phosphate mine-waste. They have acquired grazing land for phosphate dumps which is
illegal under Rajasthan law as of April 2014. No-one was compensated for loss of
grazing land.”
Kumari Bai, a local resident living beside the phosphate dumps in Matoon said:
“I have been sitting in & protesting & going to meetings but nothing happens. They tell
us to leave and say they'll close the mine and then within a few hours they start again.
They got scared that women are gathering to complain so we took our kids as well. See
it with your own eyes and then you'll know. There are cracks in my house now and our
animals can't graze. Dust is flying in. Every time you have to sweep the house.? We
can't afford to build another house. We want compensation for the loss.”
In Korba, Chhatisgarh, India, a rally took place on 2 nd August, demanding accountability
from Vedanta's aluminium subsidiary BALCO for constructing a boundary wall and
expanding ashponds without permission, as well as several other illegal construction plans
which are encroaching on common land and destroying livelihoods.
Ramayan Singh from Rukbahari, Chhattisgarh, said:
"We are protesting on behalf of the ten villages where BALCO is trying to set up an ash
pond for its power plant and acquire our 30.68 acre of fertile land. Vedanta officers
have tried to allure in the past and taken land by promising jobs. We have not received
any fair compensation nor jobs. Now we are hearing that they are cutting jobs for low
price of aluminium. Why would we believe them?"
Chamra Singh from Rukbahari, Chhattisgarh said:
" Forest and land is our life. How many days this compensation will last? We have
been using this land since generations. It is our source of life and we wont give it at
any cost. Company is spreading lies that outsiders are instigating us."
The protesters also demanded justice for the victims of the 2009 chimney collapse which
killed between 40 and 100 people.10 Last year the Sandeep Bakshi Judicial Commission
report which holds Vedanta guilty of negligence in the incident, and was suppressed by
8
9
10
http://articles.economictimes.indiatimes.com/2015-07-21/news/64683041_1_aluminium-association-aluminiumprices-aluminium-industry
http://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/vedanta-may-cut-jobs-at-aluminiumunit-as-prices-tank/articleshow/48158989.cms
http://www.d-sector.com/article-det.asp?id=1103
Vedanta in India, was released by activists.11
In Delhi a 'funeral of Vedanta' rally took place on 3rd August outside the Reserve Bank of
India (RBI) headquarters, warning the Indian taxpayer and the public banks that they may
lose loans and investments in Vedanta due to its high debt and high risk operating style. 22
protesters were arrested and held at Parliament Street Police Station.12
A statement from the protesters said:
“We stand in solidarity with affected communities around the world and call upon the
Ministry of Finance and the RBI not to extend life support to floundering Vedanta by
refusing to approve any public credit or bid to bail out Vedanta. This is in line with RBI
Governer Raguram Rajan's own warnings about the major crisis of bad debt facing India
today and his resolute call for punishing defaulting corporations that “freeload”.
At Hyderabad University on 3rd August around 60 students attended a rally in solidarity
with Adivasis, Dalits and Bahujans who lost land for the refinery at Lanjigarh. Students
from Odisha Scholars for Social Justice released this statement:
"The demands of the Land Looser Association for compensation for their agricultural
lands taken away by Vedanta in 2002 have yet to be fulfilled. They were promised Rs 3
lakh compensation, but given only 25k to 1 lakh rupees. They have petitioned to the
Chief Minister, the Governor, and Prime Ministers Manmohan Singh and Modi. Their
lives are destroyed and not one villager has been given a job in the refinery.”
Indigenous groups stopped bauxite mining at the Niyamgiri hills behind the refinery in
2013, and are now campaigning to decommission the refinery, which Vedanta still plans to
expand sixfold according to their 2015 Annual Report13, despite lack of raw materials.
Lingaraj Azad, General Secretary, Samjawadi Janparishad and Niyamgiri Surakshya
Samiti says:
“Pollution from the plant has affected both the size and quality of fruits growing in these
hills. They have shrunken in size and don’t taste the same anymore. Sound and air
pollution and the glow of halogen lights have driven out birds and animals from these
hills and leaves are covered with a thin film of ash and other pollutants released into the
air by the refinery. Since it hasn’t got mines, the factory here should be shut down. We
are mobilising this August 9 for a "Quit Vedanta" rally."
Sammi Sikoka, a Dongria woman member of Niyamgiri Surakshya Samiti (Niyamgiri
Protection Council) says:
“The factory should go. Niyamgiri is our heart. We wont allow him (Vedanta) to take it.
Why do not you understand what we said before? Refinery amoro dorkar nahin. (We do
not want your refinery)"
Vedanta have thus far failed to get bauxite from other sources, but were awarded a
prospecting license at Malimunda-Kanhai hill, where adivasis (indigenous people) and
farmers recently demonstrated against the company14 issuing this collective message from
11
12
13
14
http://londonminingnetwork.org/2014/08/the-killing-fields-of-korba/
https://www.facebook.com/events/110028396011286/110930712587721/
See p.71 http://www.vedantaresources.com/investor-relations/results-and-reports/annual-interim-reports.aspx
http://odishasuntimes.com/135099/odisha-villagers-put-up-sign-boards-protesting-vedantas-mining-plans/
the villagers of Masipur, who have formed Malimunda-Kanhai Hill Surakshya Samiti
(MKHSS):
“No company can take a handful of soil from this mountain while we are alive. If
government creates rift amongst the villagers, then the consequences would be
detrimental and the government would be responsible for it. The government should
have taken the opinion of the villagers before awarding the mining lease to the company.
But, nobody has come to us till date. The government is trying to sell our Danga Deulo
hill without consulting us. We would starve if our Danga Deulo hill would be sold. Where
would our cattle graze and drink water?”
Meanwhile, Vedanta boss Anil Agarwal has re-launched his contentious plans for a
Vedanta University in Puri, Odisha,15 which were stopped in November 2010 due to illegal
land acquisition.16 In another publicity stunt Agarwal told The Times he wants to give away
£1.4 billion of his personal wealth to charity, though the Sunday Times Rich List 2015
assesses he is only worth £1.1 billion, and another industry estimate suggests he may
have lost his billionaire status altogether as Vedanta's share prices have fallen more than
61% in the last year.17
In Goa, India Vedanta is hoping subsidiary Sesa Goa (now part of Vedanta Ltd) will be able
re-start iron ore operations under the rules of India's new Mining Ordinance after a four
year ban due to revelations of large scale illegal mining. But activists and local residents
claim the companies are yet to pay their due for environmental, social and financial losses
to the state by illegal mining during the iron ore boom years and note that no-one has been
tried or arrested for the Rs35,000 crore ($5.5 billion) scam in which Sesa Goa (Vedanta) is
one of the main culprits.1819 Ramesh Gauns, Advisor to Bicholim Mines Affected people,
who have issued a list of demands for the AGM(7), notes that Rs14,000 crore ($2.2 billion)
is owed to the state by Vedanta. He said:
"Vedanta was found by the Supreme Court to have been mining illegally in Goa from
2007 to 2012, thereby destroying people's livelihood and environment. Instead of
retrospectively regularising its mines, the Government should ask the company to pay
compensation for loss to the people of Goa and India, and Anil Agarwal should
personally be brought to trial for breaching the laws of a foreign country."
Surendra Velip, a farmer from Caurem, Goa, claims mine waste dumps, are still being
looted by companies as they are auctioned off:
“They are auctioning 1 lakh and taking 2 lakh. All the dumps and ore have now been
proven to be illegal but the companies continue to claim it as their property. Mine dumps
should be reclaimed using some of the money mining companies looted and owe to us.”
In Tuticorin in Tamil Nadu, trade union leader M.Esakkimuthu (Diver Coordinator for Anna
Sea Divers Association), claims Vedanta subsidiary Sterlite Copper (now Vedanta Ltd)
have been toxic waste into the sea near their plant.
15
16
17
18
19
http://timesofindia.indiatimes.com/city/bhubaneswar/Vedanta-revives-Puri-varsity-plan/articleshow/47137334.cms
http://indianexpress.com/article/india/india-others/ex-orissa-chief-secy-helped-vedanta-get-land-for-univ-now-getstop-job-there/#sthash.0reSZfzL.dpuf
http://www.thetimes.co.uk/tto/business/industries/naturalresources/article4218277.ece
http://www.dnaindia.com/india/report-arrest-former-goa-cm-for-involvement-in-mining-scam-dayanand-narvekar1975236
http://www.business-standard.com/article/news-ians/centre-not-goa-to-recover-rs-35-000-crore-mining-loss-cm115032601280_1.html
“Sterlite is dumping waste into the sea. When you dive near the coast you see a yellow
layer covering the coral reefs. Up to 10km away from the coast the fish are
contaminated. People are eating that fish and I suspect a lot of birth deformities we see
in this area are caused by this.”
(1) Vedanta is a FTSE 250 diversified oil and mining company, who have been named the
'world's most hated company' by the Independent newspaper for their long list of
environmental and human rights crimes for which they are being opposed all over the
world20.
(2) Foil Vedanta are a London based international solidarity group focusing on the activities of
British mining company Vedanta. We link up global communities affected by Vedanta, and
hold them to account in London. We are currently aiming to make the case for Vedanta to
be de-listed from the London Stock Exchange for their human rights and corporate
governance abuses.
(3) The script for the boxing match between Anil Agarwal and Tom Albanese, staged by men in
inflatable suits wearing masks of the execs is:
Anil Agarwal: "You useless junk CEO! You lost Rio Tinto $38 billion on the Alcan and
Mozambique coal deal!"
Tom Albanese: "Vedanta will be junk soon too with your $25 billion long term toxic debt! You
are too greedy!"
Anil Agarwal: "I saved you from the scrap heap to rescue Vedanta and you have FAILED!"
Tom Albanese: "My white face can't save your bad reputation. The whole world knows
you're a crook!"
Anil Agarwal:"Me a crook?! You were Rio Tinto CEO with so much blood on your hands!"
Tom Albanese: "You are bleeding Vedanta dry by stealing cash from the subsidiaries.. and
all for your family's personal profit!"
Anil Agarwal: "We will both get rich if I can just get all the HZL and BALCO shares, and
Cairn's cash!!"
(4) A case in the London Court of Arbitration on 2nd July revealed that Vedanta subsidiary
Konkola Copper Mines (KCM) (Zambia) has been using transfer mispricing (by
undervaluing ores sold to a hidden subsidiary Fujairah Gold in Dubai) to evade tax in
Zambia21. The judgement also concluded that Vedanta had transferred much of KCMs
liabilities to Zambia, and may be planning to abandon the mine, leaving the Zambian
taxpayer to pick up $1.5 billion in debt and liabilities. Earlier, a video released by Foil
Vedanta had revealed Vedanta boss Anil Agarwal bragging to investors that he makes
between $500 million and $1 billion at KCM, contrary to claims made by the company that
they are making a loss in Zambia and therefore cannot pay tax22.
20
'http://www.independent.co.uk/news/business/analysis-and-features/vedanta-resources-the-worlds-most-hatedcompany-2037977.html
21
http://www.foilvedanta.org/articles/kcm-hides-profits-in-zambia-by-transfer-mispricing/
http://www.foilvedanta.org/uncategorized/video-reveals-agarwals-500-million-a-year-profit-at-kcm/
22
(5) Vedanta is the second most indebted corporate in India, with a net debt $9.1 billion23, more
than 2.3x EBITDA24, and 'insufficient operating cash flow to fund capital spending and
dividend payments' according to analysts.25 $2.4 billion in debt servicing payments are due
in FY 16/1726, and Vedanta is desperate to get hold of cash reserves from it's wealthier
subsidiaries to meet the demands.27The targets are Cairn India's $2.6 billion cash reserves,
which it could access by merging newly named conglomerate subsidiary Vedanta Ltd
(formerly Sesa Sterlite) with the oil and gas business, and Hindustan Zinc's $4.6 billion
cash reserves, for which it has long been trying to buy the state's remaining 29.54% share
in the subsidiary, mired by opposition by trade unions.28
Cairn India's major minority shareholders Life Insurance Corporation of India (LIC) (9.06%
stake) and UK oil and gas firm Cairn Energy (9.82% stake) are opposing the deal claiming
their shares are undervalued and cash will be depleted, though this is denied by Vedanta's
Tom Albanese.29 30 31Minority shareholders are still smarting from the $1.25 billion related
party loan to parent company Vedanta Resources in July 2014, which was not agreed by
shareholders and is being questioned for corporate governance and cash utilisation
issues.3233
According to one analyst report viewed by Foil Vedanta, which compared return on equity and
assets over the last four years; Vedanta Ltd (formerly Sesa Sterlite) and Vedanta
Resources, both have negative return on equity, at - 24.69% for Vedanta Ltd, and -64.08%
for Vedanta Resources, compared to Cairn India which has positive return of 7.70%. On
assets Vedanta Ltd and Vedanta Resources are also negative on return at - 5.62% for
Vedanta Ltd, and -9.20% for Vedanta Resources, compared to Cairn India which has
positive return of 6.76%. In other words, the merger with oil and gas subsidiary Cairn India
is crucial for Vedanta's survival.
(6) Bicholim Mines Affected People have issued this list of demands regarding Vedanta Ltd
(previously Sesa Goa and then Sesa Sterlite) in Goa:
a) That all those mines which obtained Environmental Clearance (ECs) during the EIA
Notification 1994, should not be allowed to operate until the final hearing in MS Talaulicar v
Union of India in the Supreme Court.
b) That it is not lawful to grant ECs to mining companies which have obtained them through
fraud, or have breached their conditions.
c) That the Mining Ordinance 2015 regularising leases and nullifying the Goa Foundation case,
is illegal and companies should pay compensation for damage caused by operating the mines
illegally.
23
24
25
26
27
Onesource Report, 31 July 2015
http://www.ft.com/cms/s/0/7b101156-f310-11e4-a979-00144feab7de.html#axzz3gnkslW3x
https://uk.finance.yahoo.com/news/sell-anglo-american-plc-bhp-153417597.html
http://wap.business-standard.com/article/companies/cairn-india-s-merger-with-vedanta-may-fall-through115072300336_1.html
http://www.ft.com/cms/s/0/d05b759c-0e7c-11e5-9ae0-00144feabdc0.html
28
http://www.thehindu.com/business/Industry/pil-filed-for-scrapping-hindustan-zincvedanta-deal/article6126504.ece
29
http://wap.business-standard.com/article/companies/cairn-india-s-merger-with-vedanta-may-fall-through115072300336_1.html
30
https://uk.finance.yahoo.com/news/cairn-energy-set-vote-against-151252908.html
31
http://www.ft.com/cms/s/0/d0bd19fa-3069-11e5-8873775ba7c2ea3d.html#axzz3h2XT8JDm
32
33
http://indianexpress.com/article/business/companies/cairn-indias-1-25-billion-loan-offer-to-vedanta-groupraises-concerns/
http://www.business-standard.com/article/companies/what-next-for-vedanta-after-barmer-114091001362_1.html