Q&A’s, 2007

NATIONAL COUNCIL OF PROVINCES
QUESTIONS FOR ORAL REPLY
IQP:26 -2007

Question 125

Ms J F Terblanche to ask the Minister for Public Enterprises:

Whether the final settlement agreement with the Richtersveld community (a) addressed the concerns of sections within the community with regard to the manner in which the settlement agreement was negotiated, (b) provides for the rehabilitation of the land granted to them and (c) lends itself to returning Alexkor to profitability; if not, why not; if so, what are the relevant details? CO2471E

Reply

(a) Yes. The concerns raised by nine individuals who joined the court proceedings related to consultative procedures within the Richtersveld community and not the manner in which the settlement was negotiated. All proposals by this group of individuals were addressed and on the 9th October 2007, the State, the Richtersveld Community Property Association and the nine individuals jointly approached the Court to confirm the settlement as an Order of Court.

(b) The settlement provides for the revision of the existing Environmental Management Programme both in respect of the rehabilitation of the existing historical environmental disturbance and in respect of future prospecting and mining. Alexkor is financially responsible for all rehabilitation of historic environmental disturbance and the community’s mining company is responsible for rehabilitation of future prospecting and mining disturbances including mine closure. Outstanding responsibilities of Alexkor still existing at the date of eventual mine closure remains the financial responsibility of Alexkor.

(c) The settlement brings an end to the uncertainties thus far faced by Alexkor and presents the opportunity to exit non-core activities and to restructure and focus the business. The settlement provides for land mining rights to be transferred to the Richtersveld Community whilst Alexkor will continue to own the sea mining rights. Alexkor will terminate non-core activities when it transfers its agriculture and mari-culture assets to the Community. In the medium term, Alexkor will pool its sea mining resources with the land mining resources of the Community in the form of a Pooling and Sharing Joint Venture (PSJV) with the Richtersveld Community. The operations of the PSJV will be based on a mining plan to be developed by experts in the field.