Big money at stake in dunes

Sunday Tribune report - 9 Sept 2007

Photo: INLSA

September 09, 2007 Edition 3

Fred Kockott and Smilo Gobingca

DIRECTORS of Transkei’s controversial black economic empowerment company, Xolco, believe they could rake in huge sums of money - possibly up to R145.6 million a year - from planned heavy minerals mining on the Transkei’s Wild Coast.

But they have yet to decide what profits will flow back to people who have traditional land rights over proposed mining areas.

People who are directly affected by the mining proposals have no legal share in the planned mining operation extending along a 22km stretch of coastline below Port Edward - a prime eco-tourism route and potential food basket for the Eastern Cape and southern KwaZulu-Natal.

Mining representatives say this heavy minerals deposit, Xolobeni Mineral Sands, is the 10th largest in the world - a global resource worth $200 million (R1.4 billion).

Application

A mining rights application has already been lodged with the Department of Minerals and Energy by the Australian junior mining company, Mineral Commodities, and its wholly owned South Africa subsidiary, Transworld Energy Minerals (TEM).

As the BEE partner, Xolco has a 26% stake in the planned operations.

While the government is considering granting a licence, people have begun asking who will have the final say as to whether mining does go ahead, if traditional leaders under whose jurisdiction the land falls do not approve.

Also at issue, is how Xolco was formed, who appointed its directors, and what rights a private entity like Xolco has to represent the tribal authority and people living in and around the coastal dunes containing the valuable titanium producing minerals - rutile, zircon and ilmenite.

“How can a structure like Xolco that has been formed outside the tribal authority represent our community?” asked local shopkeeper Scorpion Dimane. “You can’t just form a private company to benefit from taking things from land that doesn’t even belong to you.

“People behind this are hiding some information because they want to feed themselves big money. That’s what started this whole problem.”

Dimane recently joined the Amadiba Crisis Committee - a coalition of people opposed to the mining plans. His nephew, 31-year-old Zeka Mnyamana, is Xolco’s secretary, and also serves as the group’s spokesman at public meetings.

Mnyamana said he and four other directors, including chairman Nomangezi Malunga and deputy chairman Christopher Ngcwele, were selected to represent the community at a meeting arranged by the original founder of Xolco, Madiba Qunya, in December last year.

He said that a network of trusts representing women, youth, the tribal authority, businessmen, the elderly and disabled was also being established to “plough mining profits back into the community”.

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“The mining will generate R560 million a year. Xolco’s share will be 26% of that amount (R145.6 million a year). It will go to the directors’ account, then from there to the trust accounts,” Mnyamana said.

Mnyamana is not sure who will exercise control over these funds, appoint trustees, and oversee financial management. “We need an expert - an accountant - to see how we run this business and how money is shared. The community can decide these things, how much we as directors get and how much goes to the community trusts,” said Mnyamana.

But there is little consensus on the proposed mining. On Wednesday, about 2 000 people met at the remote Umgungundlovu tribal authority to discuss concerns, and hear from those in favour of mining, and those opposed to it.

The meeting, said tribal elders, was the largest known gathering to have taken place in the area.

The meeting was sponsored by the O R Tambo District Municipality and proceedings presided over by Pondo king and queen, Mpondombini and MaSobhuza Sigcau.

Also attending as observers were the principal planner of the Eastern Cape’s Department of Land Affairs, Bennie Ntubane, deputy chairman of the South African Human Rights Commission, Zonke Majodina, commissioner Tom Manthata, head of the commission’s legal team, Khaya Zweni, and legal officer Gunikhaya Dudeni.

Apart from TEM’s community liaison officer, Bashin Qunya (the younger brother of Xolco’s founder, Madiba), mining representatives did not attend, nor did any officials from the Department of Minerals and Energy.

Urging people to work together, O R Tambo District Mayor Zoleka Capa said existing tensions would have been avoided had people been properly consulted and educated about the mining proposals. “What is this animosity among people who are married to each other, relatives who drink together, dance together, who actually shop from the same stores, people who drink from the same water . . . what has possibly come between them, what does it mean to me as their shepherd?” asked Capa.

The meeting ended with a forum being established to plan a follow up meeting. The forum comprises traditional leaders and representatives of local government, Xolco and the Amadiba Crisis Committee.

Forum

Traditional council leader, Nkosi G M Cinani said this forum would also engage the assistance of the Human Rights Commission and government departments, including and affairs and minerals and energy, in assessing the mining proposals and possible impacts on the community.

Welcoming this decision, Dimane said, “We are now talking to Xolco people. There is no fighting. Christopher Ngcwele (Xolco deputy chairman) is my friend. Zeka is my nephew. They now understand our concerns. Even they don’t know anything about mining, hardly anything at all.”

“What we need is the truth,” agreed Mnyamana. “We welcome what the Amadiba Crisis Committee is saying. They are asking questions about the mining, which we can’t answer. We need to have those answers before people can decide whether the mining should go ahead or not,” said Mnyamana.

Amadiba’s co-ordinator, Mzamo Dlamini, said the forum also planned to engage a lawyer to advise them on the community’s rights.

Posted on September 10th, 2007
Filed under: Newspaper and Media