Adani's Mundra Aluminium Scam explained

 Adani's Mundra Aluminium Scam explained: why this Bauxite Mine LOI is absolute Fraud based on Fake spread by Adani, NSE/BSE, Indian Media (Including Foreign affiliates like Fortune India) 

FIRST THE RATES, HOW MUCH IS CURRENT RATE of ALUMINIUM?

 

 According to London Metal Exchange, it is 2373.00 British pounds(£) for a lot of 25 Tonnes. 

You know, just like Crude Oil is sold in a measure of barrels, metals are sold in lots. A lot of Aluminium is 25 Tonnes. So a Ton of Aluminium is priced at 2373/25 = 94.9 £, lets round it up to 95£

So the market rate has been established, let me remind you, entire Kutrumali bauxite block has only 128 metric tons of mineral estimated deposit. I don't dispute, this bauxite can be found in eastern ghat hills but it is also known in mining circles that you never get that kind of deposit extracted in short period of time.

Since Mundra Aluminium has not set up any office or production unit in Rayagarha, Odisha and didn't even recruit anyone for that project, so jumping of Adani shares are premature and excessive. Let's see, which private Aluminium producers are currently ruling the market. Please note, they are all scum companies and I don't support anyone more over Adani. 

The Market Leader in Aluminium production (private companies)

So world leader can only produce 6.6 million metric tons of Aluminium. Even India's (or is it UK's now) Vedanta produces 2.2 million metric tonnes and that gave them world number 10 place in this list.

So total revenue that world number 1 from China can generate in a year in LME rate is about 660 million pounds or 700 million USD only. Remember they have multiple factories or production units and whereas Adani has Zero protection unit in operation or even under construction under the Mundra Aluminium limited. 

If you look closely, all top 10 Aluminium companies are led by cronies of Xi Jinping, Putin, West (Rio Tinto) and even from UAE and India. But they do produce the Aluminium metal which is currently being used from Window frames to Aircrafts, so Aluminium is useful for the city-life, there is no denying that. 

Does This Mean a "Letter of Intent" for a Nonexistent Production Unit of Mundra Aluminium, be termed as "Contract of Captive Bauxite Mine" as "Fortune India" did?

Show us the Money Mr. Chittaranjan Kumar? From where will Adani buyback the share-backed loans? If he had that, would we even raised an eyebrow, No.

Stop taking Dictation like Private Secretary and why oh why is Fortune India calling "Letter of Intent" as "Contract" ? Do you not understand, LoI is not legally binding and is only an document to get Bank loans to fulfil the financial obligations of the contract? I'm all for young people joining Journalism but if ends being cheeky and Oversmart fake news generation then I have to rethink my position on that.

How much more Public Sector Bank's money shall be thrown in Adani's damaged and sinking ship? Fortune Tried act cute and started calling Mundra Aluminium Limited as MAL. Now there were another company whose scrip is called MAL, an unrelated company Meyer Apparel Limited and some even more stupid broker started dumping that stock..

 

Don't blame me, I never called Mundra Aluminium as MAL, that was done by "Misfortune India" and their ilk.

Nobody in Indian Media, including "Misfortune India" managed to speak with the CEO or CFO or MD or General Manager of Mundra Aluminium Limited. Do you know why? 

They DON'T EXIST, just like this MUNDRA Aluminium Limited offices DO NOT EXIST.  It is a paper company with 3 directors who sit in Adani Corporate House and they are not Full-time Directors also ..

There is one Atmaram, who is Director in 4 other Adani companies, one Sajal, who is Director in 3 other companies and one Vinay Prakash, who is Director in a Dozen Adani company including Adani Enterprises.

Indian Media had produced this fake news to hike Adani shares and made Adani stocks vulnerable to shorting again. 

In middle of all that, only people's savings in Government banks gets more vulnerable as Modi would like to help Adani types instead of middle class in a financial crisis.  SHAME,  what a SHAME!

Mundra Aluminium Scandal got bigger: NSE, BSE, Indian Media, Supposedly Opposition parties, all involved in AdaniGate

Mundra Aluminium Scandal got bigger: NSE, BSE, Indian Media, Supposedly Opposition parties,  all involved in AdaniGate

In last Post, I had said, Rumours helped Adani stocks to rise.. putting investors savings In Adani.

But lets see, who started the Rumour about "Kutrumali Bauxite Block" , well, who else but Adani Group themselves . 

A Letter of Intent was received by Adani group, LOI .. huh .. Not even a contract. 

Where is Kutrumali? Its about 70 km from that non-existent and yet world's costliest Aluminium Smelter that Odisha CM Mr. Patnaik and Gautam Adani made up. Remember my last blog post on Mundra Aluminium

 Rumour-Mill step 2: NSE and BSE added that to notifications on Adani Enterprises

A mere Letter of Intent turns in catchy "LoI" for the ignorant. 

Total Geological Reserves of Bauxite is 128 Million Tonnes (estimated) bit is dropped. its important to remember, in Mining, you pick up stones and from which you extract the ore and then you refine the ore to get the desired Industrial product. So don't expect, Adani would dig the earth and get fully refined Aluminium weighing 128 million tonnes, check any 10+2 Chemistry book on bauxite smelting or Alumina preparation (it used to be there, in old times).

And passed on to ignorant moneyed class of Stock markets.

 

I mean National Stock Exchanges has increased Adani participation in NSE indices from March, such corrupt are Stock Market officials. SEBI must have been well compensated by Adani group or Modi government to sit on the sidelines and watch "The silence of the lambs".

STEP 3: Rumour to turn into News, through Incredibly inept or corrupt Indian Media

 

Ha ha ha .. these Indian Media had called "Mundra Aluminium Limited" world's wealthiest and biggest spending Alumina Smelter of the world. Now they are calling it "Adani Group's Mining Arm" .

Perhaps because they couldn't find any office or factory of Mundra Aluminium Limited on earth's surface, they thought.. their works must be subterranean, under the earth, in mines. 

By that definition, every shell company is a Mining arm of the parent company. 

This "Sub-standard" Business Standard even does not know, how much Aluminium can be produced from it.

They heard Mundra is a port, so used a stock photo of some unknown factory with sea in the background. 

 

They don't know, Mundra Aluminium has no connection with Mundra port (except both owned by Adani). Fake news has fake factory photo too. 🤣🤣🤣

They have not checked "Government's a-section website" where you will find Central government is putting old forklift of NALCO up for auction, but Aluminium blocks .. nope .. no auction for "Amazing Aluminium block" of Kutrumali. 

Some how they managed to invent "how bauxite will help" iron & steel industry also. Hyping up on a claim is Indian Media speciality. 

They are also able to show or mention where this Kutrumali village is, which I mentioned and I will show you the route also.

Did any of the two Adani promoting governments, Modi government at Centre and Patnaik government of Odisha made any environmental impact study of the mine?

Did they announce any rehabilitation project of villagers? Not all tribals will get "Rashtra-pati Bhawan" guest house accommodation.

Why was this block not auctioned? Big blocks are supposed to be auctioned as per Modi's 2015 law.

But when you were reeling under "Pandemic" , Modi amended lots of restrictions that he himself had put up. Like Industry can buy mining block near its plant. But for "Mundra Aluminium Limited" no such plant exists. 

So what, Modi has put so many loopholes in that act, just a registered company and MoU will dear pal state Government of Adani is enough. 

As if Present Chief Minister of Odisha has a bucket list of all hills of eastern ghat must be mined and turned to dust, before he leaves this world for the next. He basically inherited his party position from his father, did he made some promise of destroying environment of Odisha and promoting fraud? I don't know!

Odisha Government must release Alumina mill MoU in 3 languages, Odiya, English and Hindi. As well as, the latest LoI they signed and  sent (🤣) to Adani group on 27th of February.

They should say, where the "Mundra Aluminium Limited" aluminium Refinery is? How they had come with 5.2 Billion dollar price tag of that factory? Which bank is giving loan for this project? When will factory building construction start? When will it start production?

Of course, after 2021 amendments,  non-existent industry can commence "Ore extraction" from captive mines and sell surplus ore to other companies after meeting it's own requirements. So is this "Mundra Aluminium" refinery just a front, to give a bauxite mine to Adani through the backdoor?

These questions must have been asked by Odisha opposition party,  but Modi's BJP is the main opposition there.  This is classic case of "All five fingers in clarified butter", Adani seems to have covered all corners in this latest scam.

Curious Case of Mundra Aluminium

 How "Indian Media" is equally culpable In "Adani Fraud" as Gautam & Vinod Adani : Presenting Mundra Aluminium Fraud 

On 17th December, 2021, Adani Group had set up another company from that same Ahmedabad Office , "Adani Corporate House, Shantigram, Near Vaishnodevi Circle, SG Highway, Khodiyar Ahmedabad Ahmedabad GJ 382421 IN" and even registered email ID is same as in the "Fake Adani Green Energy (number) limited" which I discussed in Last blog-post of mine.

 

Immediately Next Day,  "Business Today" did a propaganda piece for Adani, saying "Adani will set up Aluminium refinery and aluminium smelter" . No information that who is funding that was given and why is he setting up such big a company,  with no Adani Group heavyweight in the board. Neither did the Business Today report, when will this Mundra Aluminium launch its IPO.

 They could have tweeted it out, The news report was so small.

Then last year, Odisha CM tweeted something about Mundra Aluminium coming to Odisha, clearly unaware Mundra Aluminium Factories do not exist in Mundra, Aluminium and all they had was 3 Directors whose day-job was working in Adani Enterprises and when they have 100% attendance in a Month, Adani makes them a Director in another Fake Company.

But Twitter gives those people, Blue Ticks and so forever lies spreading "Economic Times" went audio-visual this piece of fraud, using Adani's stock photo in their video. 

Their fake news had a tag, $5.2 billion Alumina Mill ..

Really, Economic times, do you think an Aluminium refinery is priced at 5.2 Billion US Dollars? Why do they have shutters and shed made of Gold? I can bet these Correspondents had never visited any Aluminium factory.. forget Aluminium, they have never had a tour of any factory. 

 But these Correspondents are as stupid as Post office clerk in a shipping company office desk and they merely read out whatever Media Barons (or Godi Sheth, if you prefer that term) tell them to. Just Teleprompter Readers, that's what they are. To expect those stupid newsreader and their corrupt bosses will tell that "How Adani managed to put together 5.2 billion dollars for Alumina mill of Mundra Aluminium limited " is to live in fools paradise.

So out of curiosity, I had asked a resident of Rayagarha (that's the spelling of fairly big Odisha town, which ET got wrong ), to check if such a project exists on the ground.  Answer was "Absolutely Zero" office in town.

More International Conspiracy: You can't find "Mundra Aluminium Limited" anywhere on Internet:

Website: Does Not Exist

Google, Bing or any other web search engine, you search anywhere. Every search finds its company registration page in all the company registration websites .

But a company that can do 5.2 billion US dollar investments in Odisha District town, can't get a website made??

LinkedIn: Employees don't exist 

Apparently those who got jobs in world's wealthiest Aluminium refinery in Rayagarha, well, they never updated their LinkedIn profile.. ha ha ha..

Only one young chap with Messi style beard from Ahmedabad says he is "Manager- Aluminium Project at Mundra Aluminium, Adani Group
    Ahmedabad, Gujarat, India"

Whom are you managing, son? There are no employees other than you and you have these 3 Directors to company. Maybe he is one of them, trying to hide his meaningless Directorship from his "always eager for a party" LinkedIn mates.

Google Maps and all other kind of maps

Sorry Mate, Google Maps can't find it also. Nope, DOES NOT EXIST. 

So I searched Rayagarha, the largest warehouse or longest structure in that town, belongs to Food Corporation of India. Although Google map guide you to all Aluminium traders like Window frame seller, it can't find India's and World's costliest Alumina Mill.

This has to be another International Conspiracy, right? 🤣🤣🤣

And in a wicked sense of humour, whenever I search "Rayagarha Adani" .. it points to some random PSU and Private Bank in India. As if to say, "Ask them, they will give 5.2 billion dollar loan, not me."

THE ENDGAME 

Rumours were rife, all through Tuesday that .. "Adani would bring some fully owned Subsidiary into Adani Enterprises" and "This subsidiary has substantial cash flow" 

And that subsidiary turned out to be "Mundra Aluminium Limited" and based on these false claims and false reporting.. Adani shares jumped like 15%. 

Mundra Aluminium's 14 month existence ended with Zero employees, zero production, zero factory / refinery and perhaps one Memorandum of Understanding (MoU) with Odisha Government. 

Critics might say, This fake project ensured BJD support BJP presidential candidate in that indirect election. I can guess that bit, but can't confirm. 

Hopefully Indian Banks didn't squander billions of Foreign currency on another easy loan for Adani. Indian Media will report this "Fake merger with non-existent company" tomorrow with much hype, but they won't ask or tell, how it altered Adani's Bank-book or Cash-flow.

That's why I say, Indian Media are as guilty in building Adani Share Bubble as Adani Brothers.