20 August, 2012
Eight more land
a long period of planning and negotiation between Mondi, the Land Claims
Commission, and claimant communities in KwaZulu-Natal and Mpumalanga, another
eight land restitution settlement agreements have been reached in June 2012
involving Mondi forestry land. This brings the number of land settlement deals
that Mondi has signed with claimant communities to 19, involving about 35 000
hectares of forestry land.
latest settlements have been reached with the Msibi community from Piet Retief,
the Ngcolosi and Mthembu-Sithole communities from Kranskop, the Kewulane and
Bathenjini communities from Vryheid and AmaHobe, Madlala and Ngubane communities
from the Howick area.
latest settlements involve 17 150 hectares of Mondi land under forestry, which
will be transferred to the eight land claimant communities.
aspects of the agreements include:
The land will be owned by the community
beneficiaries through their registered trusts.
The land will be leased back to Mondi and
will continue to produce timber for use by Mondi's mills.
The lease agreements, structured over a
20-year period, provide for community income from annual rental and a stumpage
fee based on production output.
The agreements ensure progressive involvement
of communities in the forestry business.
Mondi will provide two bursaries for study
towards forestry related qualifications with each settlement agreement.
With Mondi's assistance the community
trusts will set up community owned businesses. Selected beneficiaries will be
employed and developed to take up more significant opportunities in the
forestry value chain. Development, mentoring and coaching support will be
structured for these businesses as part of the agreement.
will be the strategic partner managing the training, coaching and mentoring of
the communities. These support processes will be funded through the
Recapitalisation and Development funds of the Department of Rural Development
and Land Reform with Mondi also contributing technical and administration
to start-up capital for the community companies to purchase vehicles and
equipment will be facilitated through planning and development grants provided
by the Land Claims Commission. Mondi Zimele, Mondi's business development arm,
will be on standby to provide loan capital where necessary.
FP & M Seta will be approached to provide funds for training of trustees,
community company directors and employees.
settlement agreement with the Ngcolosi community in Kranskop is different from
the other agreements in that both the land and trees will be bought and
transferred to the community for ownership. In this case the sale is
underpinned by a 20-year timber supply agreement in favour of Mondi.
Maphutha signed the agreements on behalf of the Regional Land Claims
Commission, while Maurice Makhathini signed on behalf of Mondi. The
chairpersons of the eight community trusts signed the agreements on behalf of
are very pleased that a settlement has been reached with these communities on
terms which achieve empowerment of new owners and ensures a continued fibre
supply for our business," said Maurice Makhathini, Mondi's Head of Land.
on behalf of the eight communities, Jan Msibi said: "At long last our
forefather's land is back in our hands. We would like to thank Mondi and
government and wish to assure all involved that we will work with Mondi and
government towards our empowerment so that even beyond the lease period the
land shall forever be as productive as it is today for the benefit of our
generations to come."
Maphutha said: "We are pleased about these deals and satisfied that the
communities will benefit. It is deals of this nature that will take the process
of land restitution forward and ensure sustainability of production on the
land. Mondi has proved to be a partner of choice in these land deals."
Another historic land claims settlement:
Members of the Mthembu-Sithole, Ngcolosi and AmaHobe communities, together with Mondi's land team
Maurice Makhathini and Khethiwe Mlotshwa, Regional Land Claims Commissioner Lebjane
Maphutha and KZN Chief Director Bheki Mbili at the historic land claims
settlement signing held at Mondi Boscombe office, near Kranskop.