Presented by: Hosi Shilungwamhinga II of the Mhinga Tribe - Northern Province
INTRODUCTION: I want to thank members of the Portfolio Committee on Minerals and Energy for having given me the opportunity to address this Honourable Parliamentary Committee this morning.
I also want to thank all officials from the MINERAL AND ENERGY POLICY CENTRE for having made it possible for me to be here in Cape Town today coming all the way from the
Northern Province, which, by the way, is the Province of Peace!
For those who care to know, I am a Traditional Leader by birth, a Lawyer by Profession and I am here to talk about Mineral Rights and Traditional Communities. I am also the General Secretary of Contralesa i.e. The Congress of Traditional Leaders of South Africa, as well as the Deputy President of The Mineral Rights Association of the Indigenous People of South Africa. However, let me hasten to point out that I am not here representing the above two organizations - but I am here in my personal capacity to share with you my views on the question of Mineral Rights - especially as it affects Traditional Communities.
Chairperson, Traditional Communities are the most disadvantaged members of the South African Society. I do not want to bore you with the History of our Country, I think it is common course to all of you that Traditional Communities were the first to fight the wars of resistance against colonization. It is also common course that Traditional Communities eventually lost the battle and in that way they also lost the land. It was as a result of the defeat of the Traditional Communities that our Kings came together in 1909 to try and find a common solution to the question of land dispossession - and eventually a Black Political Organization was formed in 1912 and was called the African National Congress.
Chairperson, you will recall that early in the 1900's - the Colonial Government established two Commissions to deal amongst others, with the question of Land Ownership by Blacks. These two Commissions were known as the Native Affairs Commission and the Native Location Commission, commonly known as the Lagden Commission, of 1903 and 1905 respectively. These are the Commissions that gave rise to the 1913 Land Act. As you know Blacks were restricted to 13% of the Land - but not only that the said Commissions went further to deny Blacks from owning Mineral Rights on those locations that were created.
Chairpersons, you will therefore observe from the above scenario that the majority of the Black Communities of this country have never ever had the right to own the right to own the Land, let alone the Mineral Rights over their land. As we are here today, discussing this Draft Bill, 90% of the 13% of the land that is occupied by Black Communities is still being held in Trust by the State - and in my view - even if or when these Communities eventually get transfer of the land - the State will still be retaining Mineral Rights to itself in terms of this Draft Bill.
With the dawn of democracy in this Country, the Rural Communities were hopeful that eventually they will reap the benefits that democracy has brought to our land, such benefits include, amongst others, the right to own land together with its Mineral Rights!
In my view, the most important advantage of owning Mineral Rights by the Traditional Community is that the Community will negotiate from a position of strength with any Mining Company for a fair deal. The Communities will enter into joint -ventures with the Mining Companies of their choice - and the whole Community will benefit not only from the royalties that the Company will pay, but the Community will also share in the profit. Such a Community will then address the social needs of its people by building schools, clinics, roads and provide water and sanitation for the whole Community. The Royal Bafokeng is a shinning example of what a Traditional Community can do with such resources as Mineral Rights! In a Traditional Community, it is not the individual or the Traditional Leader, but it is the whole Community that benefits. Therefore - the question of self-enrichment does not arise - unlike in some of the "so - called Black Empowerment Companies'' that we have seen! We see Government's role as that of being the regulator - that must create the frame - work within which the Mining Industry must grow. Government must not be the referee, the player, and the spectator, in the Mining Industry - rather it should be the referee and must get its revenue from the taxes that will be levied. Besides, One of the Governments' policies is to privatise Governments' institutions. By keeping Mineral Rights to itself- my view is that Government is actually nationalizing rather than privatising Mineral Rights!
Chairperson, let me conclude by expressing my view on the question of Lebowa Minerals Trust. In my view the Trust was flawed from inception in that it did not represent the beneficiaries that it sought to represent - none of the Traditional Communities were represented in the Board. The Board never accounted to its beneficiaries and the beneficiaries received very little if anything at all! In my view, the Trust should not have been abolished - but should have been restructured -just like any other parastatal - so as to represent the Traditional Communities of the whole Northern Province. In that way, the Northern Province - which is said to be one of the poorest Provinces - would have benefited from the Mineral Resources that LMT had. Besides - the abolishing of LMT was, in my view, premature as the whole question of Mineral Development is still being discussed. The Communities in the Northern Province are more disadvantaged by the abolishment of the Lobowa Minerals Trust.