Claimants get nearly 14 000ha of Mondi land

Seven KwaZulu-Natal communities collectively regained 13 989ha of land from timber and paper giant Mondi recently. These communities were originally dispossessed by the Native Land Act of 1913 and weren’t justly and equitably compensated at the time.

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Seven KwaZulu-Natal communities collectively regained 13 989ha of land from timber and paper giant Mondi recently. These communities were originally dispossessed by the Native Land Act of 1913 and weren’t justly and equitably compensated at the time.
Planted and open areas to the value of about R38,7 million will soon be transferred to the community trusts, said minister of agriculture and land affairs Lulama Xingwana, at the transaction’s signing ceremony in Vryheid.
“A lease agreement has been signed with Mondi which makes provision for the land to be managed by Mondi until such time as the lease agreement linked to the rotation of the trees expires,” said Xingwana.
“The beneficiaries are also in a position to take over the running of the forestry business through a special purpose vehicle. In line with the model for settling claims on forestry land, it’s important there be adequate skills transfer to the beneficiaries during the lease period.”

Growing on trees
The model for settling claims on forestry land makes provision for the state to buy land, excluding standing timber plantations, for beneficiaries. The new landowners then lease the land to the relevant forestry company for an agreed period.
The supply of trees from the land is guaranteed for two rotations with an option for beneficiaries to buy the trees and carry out further planting themselves after the first rotation cycle. Successful land claimants are financially compensated for the period they don’t immediately benefit from the ownership of the timber plantations during the lease period. At the signing ceremony Mondi Group’s joint chairperson Cyril Ramaphosa pointed out this recent land transfer was the second of its kind Mondi has made. In October 2008 they transferred 4 000ha of land to the Kranskop, amaHlongwa and amaBomvu communities in KZN.
The Nhlangwini, KwaZiqongwana, Esikhabeni, isihululu-Egazini, Fakazi, Langa and Ogwini Community Trusts are the most recent beneficiaries.
“We will work closely with the communities to introduce them into Mondi’s supply chain and to transfer the skills required surrounding the business of forestry farming,” explained Jim Matsho, head of Mondi’s Forestry Partners’ Programme. “While the communities will benefit from an annual income, Mondi will be assured of a continued supply of timber.”
Said Ramaphosa, “It is a tribute to the constructive working relationship between Mondi and the Land Claims Commission that these sustainable solution had been reached on seven settlements. – Lloyd Phillips