Cabinet Approves Richtersveld Settlement

Cabinet approves Richtersveld settlement

Sapa

26th October 2006

CABINET has approved the R190m out-of-court settlement reached with the Richtersveld community in its marathon dispute with state-owned diamond miner Alexkor.

"We are pleased to announce that cabinet has approved the settlement reached with the Richtersveld community regarding a land dispute between that community and Alexkor Limited," government communications (GCIS) head Themba Maseko told a media briefing at Parliament today.

The announcement follows cabinet’s fortnightly meeting yesterday.
Maseko said the Richtersveld community, like many others, had suffered an injustice when they were forcibly removed from their land to make way for diamond mining. "In terms of this settlement, the state will facilitate an extraordinary reparation payment of R190m to the community," Maseko said.

Public Enterprises Minister Alec Erwin would "sign the agreement with the community shortly, which will include safeguards to ensure that the money is used in a way that meets the long-term needs of the community".

Asked whether the settlement included the return of land, Maseko said the settlement "includes the whole package, including mineral rights".

An "entity" would be set up in which both the community and Alexkor would "jointly share".
Maseko said the R190m settlement was a "package" payable in three tranches over three years. The community would also receive other "benefits beyond" this figure.

At a series of meetings last week, members of the Richtersveld community approved a draft memorandum of understanding on the settlement.

The draft memorandum of understanding reportedly also contained a state guarantee for rehabilitation of the areas devastated by Alexkor’s mining operations, including massive trenches, slimes dams which give rise to plumes of fine wind-blown sand, and tips.
It is understood the company town of Alexander Bay is to be in effect transferred to the Richtersvelders, to be run by the Richtersveld local municipality, and that Alexkor will pay rent for accommodation used by its employees.

The community had been seeking the restitution of the land, which lies in a strip along the arid Northern Cape coast, including the town, plus compensation of up to R2,5bn for diamonds removed and environmental damage. It lodged its claim in 1997, and lost an initial roun d in the Land Claims Court.

However, it subsequently won a Constitutional Court ruling that it was in fact entitled to restitution. The case then went back to the Land Claims Court for evidence on the nature and amount of the restitution and compensation.

The court heard extensive evidence from community members and environmental and mining experts. The last hearing of the case was in November last year. Due to resume in May, it was instead postponed to allow for settlement talks. The Richtersvelders’ claim, and the settlement, do not include Alexkor’s off-shore mining operations.