Report of the Select Committee on Economic Development on its Oversight Visit to Port Nolloth, Northern Cape, dated 01 June 2010.

 

The Select Committee on Economic Development, having undertaken the above oversight visit, reports as follows:

 

1.                   Aim of the Visit

 

The Select Committee on Economic Development undertook an oversight visit to the Richtersveld Municipality, Kammiesberg Municipality and Namaqua District Municipality to discuss the impact of the Socio-economic and Social Labour Plan of the mines on Local Government Municipalities and also to discuss their strategies and development towards achieving service delivery. The oversight visit took place on 16-18 March 2010.

 

The Committee also visited the Kleinzee-De Beers, Alexander Bay (Alexkor) and the Coignaas Mine to determine whether the social responsibility plans (SLP) are being adhered to by the respective mines towards their surrounding communities.

 

The Committee also visited the Community to hear from them if they were benefiting from the surrounding mines through the SLP and the form of such benefits.

 

2.                   Participants

 

Leader of the delegation: Hon. F Adams [Chairperson: Select Committee on Economic Development].

 

Members of the delegation: Hon, EC Van Lingen (Eastern Cape), Hon, MC Dikgale (Limpopo), Hon, S S Chen (Gauteng), Hon R A Lees (KwaZulu-Natal).

 

Parliamentary support staff accompanying the delegation: Ms N G Dinizulu (Committee Secretary) and Mr J Van der Westhuizen (Committee Assistant)

 

Kleinzee-De Beers

 

Mr S Ngcobo: Executive Director; Mr R Blake: Commercial Manager; Mr A Taylor: General Manager: Projects; Mr W Macdonald: Leader: Mineral Resource Rehabilitation; Mr D Cloete: Leader: Production and Engineering, Ms Nadia Williams: Mine Safety & Security; Mr G Klopper: Manager: Public and Corporate Affairs; Mr P Sparks: Operations Manager.

 

Provincial Department of Mineral Resources: Mr W Spiesens: Senior Inspector of Mines: Mr J Nieuwoudt: Deputy Director Mineral Laws

 

Alexander Bay (Alexkor): Mr W Basson: Mine Manager; Mr B Lategan: Acting Chief Financial Officer; Mr C Wilmans: Acting HOD Alexkor Security; Mr K Landers: Chief Safety Officer; Mr M Mpanza: Mine Engineer and Deputy Mine Manager

 

Richtersveld Municipality: Mr R Ambrosini: Mayor; Mr A Jansen and Ms E Hasiku: Councillors; Mr J Cloete: Municipality

 

Kammiesberg Municipality: Ms S Cloete: Local Economic Development Officer; Mr M Klaase: Mayor

 

Namaqua District Municipality: Mr I Groenewald: Head: Economic Development; Mr B Vass:  Speaker

 

3. Briefing by Richtersveld Municipality

 

The Mayor of the Richtersveld Municipality briefed the Committee. He informed the delegation that the Municipality serves five main towns namely Port Nolloth, Kuboes, Sanddrift, Lekkersing, Eksteensfontein and Alexander Bay.  The head office is in Port Nolloth, which is by far the largest of the five towns.

 

Although each one of the towns has its own distinctive historical background, they all share similar problems.  The available land is marginal farming land and communities have been historically denied access to large tracts of valuable mining, fishing, mari-culture and agricultural land.

 

Poor infrastructure and limited employment opportunities are but two of the serious economic challenges that the Richtersveld Municipality faces.

 

Mining has been the dominant industry within the Municipality and many of the poorer

communities have been dependant on a family member gaining income from this industry. With the current economic crisis in the world, mining is not sustainable in the long term and the region is already experiencing the affects of downscaled production and retrenchments.  This has increased the number of unemployed people returning to the rural towns.

 

Within the municipality there are limited numbers of work opportunities and the mines control most of the land where there are opportunities for industries such as irrigation agriculture and mari-culture.  With the reaching of an agreement in the Richtersveld Land Claims Case this situation will now change drastically.

 

Tourism is seen as a possible job creator but almost all the successful tourism initiatives are controlled from outside of the region, including Springbok and Cape Town.  Thus strategies for future livelihood options are based on communities gaining access to the land and resources with high agriculture, mari-culture and tourism potential. However, for these businesses to be successful, Richtersveld Municipality needs investment to maintain the infrastructure and for capacity building. 

 

In 2008 the Social Responsibility Projects of the Department of Environmental Affairs and Tourism (DEAT) were to be managed by the Municipality. When applications are successful they can play a big role in improving the tourism infrastructure in surrounding communities, provided they are planned properly and linked with the larger infrastructural network.  This will hopefully promote the influx of tourists into the area now that the Transfrontier Park Richtersveld/Ai-Ais border between South Africa and Namibia has opened at Sendelingsdrift.

 

3.1 Development Indicators of the Approach:

 

In five (5) years’ time Municipal residents will be involved in a broad range of economic activities that can be measured by comparing the database compiled by the Municipality.  Economic activities should be geared towards sustainable job creation that will result in an improvement in general of the standard of living in the entire Municipal area.

 

3.2 Approach to Achieving the Goals:

 

Strategic focus should be placed on the five most important industries in the region, namely tourism, fishing, mari-culture, agriculture and mining.

 

4. Kamiesberg Municipality

 

Kamiesberg Municipality contributes 7% to the Namaqua District economy. Currently there are three major economic sectors within the municipality, namely Mining, Livestock  farming and Tourism.

 

Additional emerging sectors are also developing. They include mainly Aquaculture and Conservational ecological restoration. The Local Economic Development Forum was established to meet on a quarterly basis to discuss economic issues.

 

4.1 Mining

 

•          Mining industry is the region’s core employment source and is downscaling, mainly because mines are reaching the end of their production lifespan;

•          In this area there are big deposits of Wollostonite near Kheis and Lepelfontein;

•          A plant for the processing of the Wollostonite had already been built in Garies;

•          Testing of the processing plant is under way, and mining and processing Wollostonite will start in the nearby future;

•          A number of smme’s can be developed around this project;

•          PDI groups are encouraged to get mining rights for Lepelfontein deposits;

•          Large deposits of Mica are to be found in Tweerivier;

•          PDI’s need funding and support in the drafting of business plans;

•          Mining economists have to prepare a feasibility study plus a funding model and also have to research the markets;

•          Deposits of copper have been discovered at Rooifontein and Kamassies.

 

4.2 Mining Beneficiation

•          An agreement had been signed by the mining companies who are mining granite in the area to dispose their waste blocks to Kamiesberg Municipality for the manufacturing of tiles, table tops, thombstones, etc.

•          The Municipality started with the project in 2000, but were faced with  a shortage of funding and equipment and it had to be revived.

•          Kamiesberg, situated in the succulent Karoo, is the only arid hotspot in the world.

•          Namaqua National Park lies in the Kamiesberg and is about to expand along the Atlantic ocean to the Groen River.

•          A National tourism asset can be established thus creating an increasing number of jobs.

•          Different tourism routes are proposed like flower routes, history routes, etc.

•          PDIs run Kookskerms on the same basis as a franchise, and they are well supported by CI and DBSA.

•          A Proposed sustainable regional economic hub, called the Living Edge, is to be developed on the old Koignaas mines.

•          It is envisaged that this development will create 300 permanent jobs.

•          This project will be in partnership with De Beers and Eden in Cornwill England.

•          This will be a multi-faceted project in that it will tackle social, developmental and environmental challenges.

 

4.3. Livestock  Farming

 

The small farmers are beginning to organize themselves in  cooperatives as legal entities to benefit from the government’s Boerbok project and a similar one from Shoprite Checkers

 

4.4 Mariculture

 

A Pilot abalone project was done by the University of Stellenbosch and it was found that abalone farming will be viable in this area. The EIA for a full abalone project is underway.

It is estimated that 80 permanent jobs will be created and that SMME contractors can provide security and food for the breeding abalone.

 

4.5 Social Labour Plan (SLP)

 

The projects are identified for funding by Transhex, De Beers, Forest Oil and Finestone. The Forest Oil did not commit itself to fund the projects. The Municipality will make a follow-up with the Department of Mineral Resources.

 

4.6 Small Medium and Micro Enterprises

 

The following opportunities exist: repairing and replacement of fences on municipal farms, and the breeding, marketing and selling of Anatolian dogs to farmers.

 

4.6.1 Opportunities in the Tourism Field

  • Building and running of kookskerms
  • Homestays and guest houses to provide accommodation
  • Tourism guide business
  • Running of municipal-owned tourist facilities through outsourced management contracts

 

4.6.2 Opportunities in terms of Government-owned Infrastructure

 

  • Maintenance of buildings
  • Cleaning of buildings and premises
  • Maintenance of roads

 

5. Namaqua District Municipality

 

Geographically the Namaqua District Municipality (NDM) is the largest district, and has a small and dispersed population. Each local municipality has a small population, Following upon the Namaqua District Municipality (NDM), is the smallest the Karoo and the largest one is  NamaKhoi. The bigger part of the population enjoys higher education whereas about 5% of the community has no schooling. About 5.1% of the population have HIV/AIDS, and this pandemic is growing rapidly due to a lack of accessible testing facilities. The mining sector is the largest contributor to Gross Domestic Product (GDP) (52%), but its contribution towards employing communities surrounding the NDM is declining.

6. Local Economic Development

 

The District Municipality embarked on the development of a Local Economic Development Strategy in 2008,and the document entails an assessment of the economic development and growth opportunities in the District and the implementation of strategies.

 

6.1 Growth Opportunities

  • Agriculture
  • Facilitation of land reform

The utilization of state land for productive use and the finalization of land claims.

The availability of coastal and productive land along the coast De Beers’ proclamation

  • Offering educational and financial support to emerging and community farmers

In the Khai Ma Municipality, the state bought the farm Coboop, and it is developed along the Orange River.

  • The commercialization of hoodia farming
  • The development and expansion of mariculture parks in Port Nolloth

 

6.2 Mining

The Namaqua District Municipality will ensure that all the mines in the area have approved the social and labour plans and that LED forms an integral part of mining companies’ social programme. About 90% of the mines have approved SLPs and business plans are being developed whilst some have already started with the implementation process.

 

6.3 Establishing SMMEs for Small-scale Development

 

The Namaqualand Development Agency was envisaged to assist with this function. However,  the Council has disassociated itself from the Agency due to various reasons and the district had to opt for other alternatives.

 

A discussion with De Beers is under way to allow for and prioritize the inclusion of small miners from Namaqua into the mining model being developed as part of the proposed proclamation talks.

 

Expanding the value chain activities, especially beneficiation, is an area of neglect and miner focus. However, diamond cutting and polishing remains the vision. The SLP of Naroehuis Dimension Stone mine near Concordia focuses on the granite cutting and polishing to be implemented soon.

 

Discussions with De Beers are taking place on its proposed proclamation process and the access of land for sustainable development. These matters are important priorities.

 

6.4 Electricity, Gas and Water

 

The building of a dam along the Orange River is a priority, and investment in this regard is urgently needed. Various SLPs mention the assistance towards electricity and water networks. The important priorities are the desalination of water in the Port Nolloth /Hondeklip Bay areas and the upgrading of the electricity network in Hondeklip Bay.

 

 

6.5 Construction

 

The EPWP is currently utilized to assist in the construction of roads, houses, schools, etc. The tarring of the Garies/Hondeklip Bay road has been prioritized as this will ensure that the areas are developed to its full potential. Government services are prioritized; however more is required with regard to education and health.

 

The Nama Khoi Municipality also requested investment proposals on various prime land areas. Furthermore, the possibility of building a mall is investigated to form part of the spatial development plan.

 

6.6. Implementation

 

An implementation plan is based on the establishment of a District Development Agency and on monitoring and evaluation by the Namaqua District. A possible PPP can be looked at to tap into the experiences of Anglo Zimele’s Development Hubs. This will need engagement with the mining houses.

 

7. Alexander Bay (Alexkor)

 

7.1 Background

 

The history and outcomes of the Richtersveld Community (RVC) land restitution claim in respect of Alexander Bay is detailed. The details of the initial claim and the Deed of Settlement, that was finally made by an Order of Court in October 2007, were set out and explained. It was reported that a final settlement comprised a number of requirements, ie  a transfer and restoration of a portion of the land to the RVC. The land mining rights of Alexkor would be transferred to the community.

 

A Pooling and Sharing Joint Venture would have to be set up. Alexkor would contribute R200 million, via capitalization from the State, to this programme. The mariculture and agriculture assets of Alexkor were transferred to the community. A sum of R190 million for reparation purposes would be paid to the Investment Holding Company over three years. Two payments were received from the Richtersveld Communal Property Association, namely R50 million for development and R45 million for compensation for Alexkor’s occupation on transferred residential properties for ten years.

 

A township would be established at Alexander Bay and environmental rehabilitation has to take place. Alexkor would retain the marine mining rights, but these would be under the control of the Joint Board of the Joint Venture, as would the land mining rights of Richtersveld Mining.

 

The project’s success would depend largely on the upgrading of municipal services. An engineering services assessment and a draft had been designed, and the Development Bank of South Africa was to implement the project. The Kwesi V23 Engineers were appointed by Alexkor to manage the project from preliminary phase to execution phase.

 

 

7.2 Scope of Upgrade

 

(i) Phase 1

The process of upgrading will commence with the following: Sewer Network, Potable Water Network, Storm Water Control, Road upgrades, Solid waste disposal and Cable ducting. The total costs and duration estimated for Phase 1 and Phase 2 is R130 million. The estimate for phase 1 was R52 million and the tender price was R42 million. Phase 1 will take approximately a year. The duration of phase 2 will be confirmed after the second tender process had been finalised.

 

(ii) Phase 2

Electrical and Mechanical installations:

 

7.3 Current status

 

The project was scheduled to commence on 1 March 2010.  However, it had been delayed for one to five months due to a Heritage EIA.

 

7.4 Job Creation

 

Approximately 50 to 79 job opportunities at an unskilled level would be created.  Measures are being implemented to ensure that all six towns in the Richtersveld community benefit from this project. Job opportunities from semi-skilled to skilled level will be confirmed after a scheduled meeting, involving all parties, had taken place.

 

7.5 Mine Health and Safety

 

Over the past year Alexkor embarked on a rigorous campaign to enforce and instill proper Health and Safety practices to ensure a better and safer working environment for the company and its employees.

 

About 1 000 Fatality Free Shifts were achieved by the 25th of November 2009. The efforts and contributions of employees and contractors towards this remarkable achievement were recognized. This achievement was celebrated jointly by all the employees and contractors of Alexkor on the 14th of December 2009.

 

7.6 Human Resources

 

Alexkor’s Human resources’ procedures were reviewed and updated in November 2009 and Alexkor’s first Performance Management System was established in 2009.

 

7.7 Reduction of the Post Retirement Medical Aid Liability

 

Alexkor has made material changes to the underlying medical aid plan to reduce liability to a more reasonable and affordable amount to ensure continued commercial viability of Alexkor and to retain the sustainability of its operations as well as to secure pensioners’ future benefits with regard to medical aid cover.

 

Alexkor has reduced the liability by R48 million, from the R135 million down to R87 million. The plan is to reduce the liability to an estimated R55-R60 million from the current amount of R87 million.

 7.8 Challenges

 

  • Limitations for long term planning
  • Availability of funds
  • Shortage of manpower

 

8. Sanddrift Community

 

The following concerns were raised and issues were put forward for a discussion:

 

  • The Community of Sanddrift reported that there were no permanent doctors in their modern and well equipped hospital;
  • The issue of racism among the community members, hospitals and workplace was raised;
  • One of the community members raised a concern about an injury at Alexkor and declared that up to now he had not been paid any compensation;
  • Heritage tourism is unique in the area and therefore the municipality and government should be serious in promoting local communities on tourism;
  • Subcontractors are complaining that, when they are subcontracted, Alexkor requires 52% of their income without contributing a cent to the job;
  • High rate of accidents as result of bad roads between Alexkor and Kubus;
  • The communities complained about unfair evictions from the mine houses;
  • There are no proper facilities, e.g. schools, hospitals and play grounds;
  • The communities also mentioned that they are prepared to move to the RDP houses provided that Government builds better houses;
  • Property rights do not exist in Alexander Bay  for the following reasons:
    • Renting is not secure;
    • No opportunity to invest;
    • The community members who have worked at the mine for many years cannot purchase a property in Alexander Bay for their retirement;
  • Fire fighting in the community - Joint Rescue Committee with Transhex and Richtersveld Community.;
  • Community must find an alternative to mining;
  • Road to Kuboes was destroyed by a tornado five years ago and had not been repaired as yet;
  • Richtersveld Restitution Land Claim is now in place, however the people are still without jobs and there are no benefits; and the implementation of the settlement agreement needs to be monitored;
  • The Chairperson of the Community Property Association (CPA) was not present;
  • Community has problems with CPA and Pooling and Sharing Joint Venture;
  • An urgent call for the empowerment and management training of the committees of these organizations;
  • Settlement Agreement is not implemented;
  • Mariculture project is not open to  the people and the project was closed down by the Richtersveld Agricultural Holdings Company;
  • Small-scale marine miners complained about the 5% royalties to be paid;
  • The inequality of deals offered to the contractors;
  • Problems with mining and prospecting rights in the area;
  • Due to climate change, shallow water miners have had sea-mining days reduced from 150 to 20 days; it was an in-house project, and miners lost 80% of the mining fleet in last two years;
  • On 24 June 2008 M Temba CEO / Chairperson of Alexkor, investigated finances and the qualifications of the Alexkor board and other directorships ;
  • Port Nolloth has no water at night; and
  • A good technical high school is required.

 

9. Kleinzee De Beers

 

9.1 Objectives

 

De Beers is actively conducting earthmoving and ecological restoration and rehabilitation to reduce the mining footprint. It is also exploring different land uses as an alternative to  mining to create longer term socio-economic activities.

 

The Company seeks other win-win opportunities to offset rehabilitation costs against economic development projects. Kleinzee is defining a process for progressive reduction in the overall liability through systematic sign-off of areas defined as rehabilitated (earthmoving and restoration component).

 

Currently the focus is on safety, engagement of stakeholders, benchmarking for the arid West Coast and to achieve the rehabilitated sign–off of 866 ha by DMR. Small scale mining requires a rehabilitation plan that is being compiled at present.

 

The mine has about 1.7 million carats left or 100,000 carats for 17 years.

A new mining model has to be compiled with

·         Economic viability and sustainability for SMMEs;

·         Reducing rehabilitation liabilities;

·         Legal framework adjustments required.

 

9.2 Social Labour Plan: Community Development and Poverty Eradication Programmes

 

PROJECTS                                                                   TOTAL SLP

Livestock Farmers/Gardens

R   600 000

Early childhood Development

R   630 000

Multipurpose Centre

R1 250 000

Community upliftment programmes

R1 000 000

HIV & AIDs

R   145 000

Rural Educational Assistance programme

R1 200 000

Mathematics and Science Schools programme

R   340 000

 

 

9.3 The Social Labour Plan Revision

 

  • The  need to review and submit amendments to SLP became apparent;
  • Objective is to review the De Beers Namaqualand Mines Social and Labour Plan

-          with a view of aligning it with the developmental imperatives for the                              Namaqua District in conjunction with all the relevant stakeholders;

-          Ensuring that the funds committed in terms of the SLP are optimally utilized for the best benefit of communities, while taking into account those projects driven by the De Beers Namaqualand Mines that are currently not included in the development framework for the District;

-          Positioning the projects agreed upon as a recorded, integral part of the Local Economic Development strategy for the District;

-          Enabling De Beers to submit an amendment of the SLP that is in tune with the socio-economic needs of the District and based on smart objectives

 

 

The Department of Mineral Resources has to review and approve the following social labour plans.

 

Corporate Social Investment

Kleinsee Primary School

R21,2 million

Steinkopf Community Hall

R2 million

Oukiep Training Centre

R780,000

Nababeep and Dr van Niekerk Hospitals

R300,000

Small farmers projects

R630,000

Rural educational upliftment in 3 communities

R1,250,000

 

 

9.4 Kleinzee Abalone Farm

 

  • The first phase of a 100 tons per annum production unit is under construction;
  • It is designed to be expanded to 100 tons per unit;
  • The platforms are ready for a 200 tons per annum production;
  • 1,500 tons of water per hour (sea and recirculation pumping);
  • The 360 fibreglass tanks of 5x2m;
  • Seven seaweed production dams for feeding, water purification and heating;
  • Approximately 81 jobs were created with immediate effect and 182 jobs will be created for full production;

 

9.5 Future Potential for Marine Aquaculture

 

  • Multifold expansion of current facilities;
  • Hatchery (short to medium term);
  • Ranching (medium term);
  • Expansion to processing other Mari-culture and by-products;
  • Many other opportunities exist due to the availability of sea water and infrastructure;
  • Introduction of additional investors/marine aquaculture companies in the area.

 

9.6 Kleinzee Correctional Centre Proposal

 

De Beers proposed to have a correctional facility of 1 000 beds at the Old Dreyerspan single quarter complex.  This should consist of a rehabilitation centre and training facilities. De Beers had already made a pre-feasibility contribution, supported by local communities. Government support is now needed.  The anticipated timelines for the project to kick off should be 2011 to December 2012, provided that approval had been granted by December 2010.

 

 

9.7 Benefits

 

About four to five communities, namely Richtersveld, Nama Khoi, Kamiesberg,and Namakwa are the beneficiaries of targeted trusts.  Economic benefits will flow directly to local communities. The abovementioned communities will take full control of the trust.

 

9.8 Tourism Development

 

The Tourism initiative was launched by the De Beers Namaqualand Mines in 2001. This took place in order to develop the tourism sector on the Namaqualand coast. It operates under the brand name “Diamond Coast - Forever Namaqualand”. The Tourism offices are situated in Kleinzee. One of the sites of the De Beers Diamond Route is a joint initiative between De Beers and E Oppenheimer & Don and Ponahalo that was recently launched.

 

9.9 Integrated Tourism Development

 

The Integrated Tourism Development is represented on the Nama Khoi Local Tourism Association. Officials of the Northern Cape Department of Environment and Nature Conservation are co-opted to serve in committees. Fully bilingual guides are trained by the Field Guides’ Association of the FGASA, THETA and DEAT and they are accredited and qualified in First Aid Level III. Wide arrays of privately run accommodation establishments in the area are affiliated.

 

9.9.1 Functions

  • Manages De Beers properties where tourism is conducted;
  • Co-ordinate tourism-related activities; and
  • Acts as  a Local Tourism Forum

 

9.9.2 Reasons to Proclaim the Towns

 

Having the current mining settlements of Kleinzee and Koingnaas proclaimed into public towns are key to:

 

  • Unlocking sustainable local economic development;
  • Diversification  and development;
  • Reduction in reliance on mining;
  • Improved regional socio-economic integration

 

9.10 Business Opportunities

 

Kleinzee had been approached by a number of investors interested in investing in these towns, including the establishment of:

 

  • Factories for light manufacture, e.g. foodstuffs, steelwork and fog nets;
  • Hospitality and catering establishments;
  • Educational facilities, including a Medical University and transforming the current Primary School into a Focus School;
  • Properly developers, including residential gold estates;
  • Power/energy generation, including a Gas Refinery and a Nuclear power station in the longer term;
  • Tourism;
  • Crafts and Arts training and retail;
  • Automotive and general engineering service;
  • Government Departments;
  • Professional practices, e.g. Legal and Social Work.

 

9.11 The Living Edge of Africa Project (LEAP)

 

The vision of the project is to recast the legacy of mining into a thriving economic hub and a model of sustainable development, creating low-carbon enterprises and jobs based on conservation and innovative technologies.

 

Enterprise nodes create synergy around the use of seawater, freshwater, energy, nutrients, humidity, temperature differentials and tourism or interpretive activities.

 

9.11.1 Project Progress to Date

 

The pre-feasibility study had been completed and reviewed in September 2009. A feasibility study is under way and focuses on certain identified components and initiatives that form part of the project.

 

Conservation International contracted to conduct fast-tracking of initiatives such as:

 

  • Land Art – pilot;
  • Engagement with marine aquaculture investors;
  • Feasibility on Seawater Greenhouses;
  • Institutional arrangements to be finalized;
  • Investigation on renewable energy (wind) ongoing;
  • Studies regarding conversion of Koingnaas and Hondeklip Bay to “green towns”; and
  • Feasibility to complete these initiatives by April 2010.

 

9.11.2 Potential of Employment via Living Edge of Africa Project (EAP)

 

  • Employment to be created by specialist companies in the respective sectors; and
  • Emphasis on the implementation of projects with high potential for employment.

 

The exact employment figures and timelines are currently not available. By the end of 2013 the total employment will grow by 500.

 

9.11.3 Wind Generation project

 

South Africa needs additional electrical energy. Eskom is encouraging industry to construct renewable energy power generators (wind, solar and water). Namaqualand coastline had been identified as a suitable region for wind power.

 

It is of great interest for many companies to construct wind farms. Fourteen companies requested to be included on the enquiry list. De Beers owns mined-out areas that are available for wind generation plants. Companies had been invited to make proposals, taking into account the interests of the local community and region.

 

 

10. Recommendations by the Committee

 

·         Investigate and follow up on the Richtersveld Land Restitution Settlement as the facts disclosed by municipalities do not coincide with those expressed by the communities.

·         The Committee must monitor progress that has been made with the employment of a medical officer at the Alexander Bay hospital.

·         Follow up on the  promulgation processes of Alexander Bay including

o        Identifying the responsible institution for promulgating phases

o        Phase 1 projects and progress made by the implementing organization - either Alexkor or the Richtersveld CPA - and

o        Phase 2 projects and progress.

·         Investigate housing in Alexander Bay

o        Who is currently in command of the houses in Alexander Bay

o        The evictions by  Alexkor, and who are being allocated houses at present and on what basis are these houses allocated

o        What is the remaining term of the agreements for renting these houses 

o        What happens to the amount of R45 million, paid by Alexkor as rental; who is the recipient of the money and what is happening to the funds.

·         Complete the investigation of the Small-Scale marine and land mining industry considering:

o        The current position of Alexkor and the secret transactions after Alexkor obtained diamonds from miners;

o        Rehabilitation plan for small-scale miners;

o        Revising the royalty rates to Alexkor paid by the small scale marine miners;

o        Investigating historically royalty payments for the past 5 years;

o        Revising the payment ratio between Alexkor and small-scale marine miners;

o        Legal framework adjustments;

o        Follow up on the timelines of the Richtersveld Settlement Claim and the transfer of the mine to the people;

·         Follow up on the  promulgation processes of Kleinzee including the project delivery commitments and timelines;

·         Investigate the Richtersveld Community Projects in regard to:

o        Agriculture

o        Mariculture

o        Conservation / Game Reserve

o        Rehabilitation

 

______________________________                                                   __________________

Hon. F. Adams                                                                                                     Date

Chairperson: SC on Economic Development