Ramaphosa praises second set of Mondi land claims

Mondi Group joint Chairman, Mr Cyril Ramaphosa today signed Mondi’s second set of land claims to the value of R38.7m, with the Minister of Land Affairs, Minister Lulama Xingwana.

Structured around the initial Mondi land claims model, the agreement provides the seven communities in Kwa Zulu-Natal with a 20 year sale and leaseback. The communities will receive the titles to the land of 13 700 hectares and will benefit from an annual income, whilst ensuring a continued supply of timber to Mondi’s mills.

Over the first 10 year period of the lease, Mondi’s Forestry Partners Program (FPP) will work closely with the communities to introduce them into Mondi’s supply chain and transfer the skills required surrounding the business of forestry farming. Over the second 10 year period communities will have the opportunity to take more direct control of the forestry land and process.

Jim Matsho, head of the FPP explained, “The programme has a menu of support available to new farmers. This includes business planning, environmental and fire support and access to seedlings. In each case Mondi will work with communities to match the required support to their needs and aspirations.”

Speaking at the ceremony, held in Misty Valley Vryheid today, Mr Ramaphosa said that it was a great day for land reform in forestry as these agreements collectively represented over 13700 hectares of forestry land transferred into community hands. He added, “It is a tribute to the constructive working relationship between Mondi and the Land Claims Commission that these sustainable solutions have been reached on seven settlements”.

Notes to the editor

Background:

• Mondi signed the first land restitution agreement in October 2008 when 4000 hectares of land was transferred to the Kranskop communities of AmaHlongwa and AmaBomvu.

About these agreements:

• Mondi has now signed agreements to transfer a further 13700 hectares of land in Kwa Zulu Natal to seven communities to the value of R38.7m.
• Lease agreements were signed between Mondi and the seven community trusts: Nhlangwini Community Trust, KwaZiqongwana Community Trust, Esikhabeni Community Trust, Isihululu-Egazini Community Trust, Fakazi Community Trust, Langa Community Trust and Ogwini Community Trust.
• A settlement agreement was signed by all parties which spell out the terms and governance of the relationship.
• The land will be owned by the seven communities through the seven Trusts.
• The land will be leased back to Mondi and will continue to produce timber for use by Mondi’s mills.
• The lease agreement, structured over a 20 year period, provides for community income from annual rental and a stumpage fee based on production output, whilst providing a continued timber supply for use in Mondi’s mills. The agreement will also ensure progressive involvement of communities in the forestry business over the same period.
• Mondi will provide annual bursary opportunities via its existing bursary scheme for forestry studies at tertiary institutions.
• With Mondi’s assistance, the Community Trusts will be able to set up community owned businesses. Development, mentoring and coaching support is included for these businesses as part of the agreement.
• Mondi has structured a dedicated Land team and has set up a Forestry Partners Programme to provide a range of support to communities. This includes business planning, environmental and fire support and access to seedlings.

About Mondi:
Mondi is an international paper and packaging group and in 2008 had revenues of €6.3 billion. Its key operations and interests are in Western Europe, emerging Europe, Russia and South Africa.

The Group is principally involved in the manufacture of packaging paper and converted packaging products; uncoated fine paper and specifically products and processes, including coating, release liner and consumable flexibles.

Mondi is fully integrated across the paper and package process, from the growing of wood and manufacture of pulp and paper (including recycled material) to the conversion jof packaging papers into corrugated packaging and industrial bags. Mondi has production operations across 35 countries and had an average of 33 400 employees in 2008.

Last change: 13/11/2013