Presentation to the Portfolio Committee on
Public Enterprises
RICHTERSVELD LAND CLAIM
SETTLEMENT:
ALEXKOR – RMC PSJV
&
ALEXANDER BAY TOWNSHIP
ESTABLISHMENT
CONTENTS
 Overview of Richtersveld Land Claim Settlement &
Respective Obligations
 Pooling & Sharing Joint Venture between Alexkor &
Richtersveld Mining Company
 Alexander Bay Township Establishment
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Richtersveld Land Claim
 1998: Richtersveld Community (RVC) filed a land claim under the
terms of the Restitution of Land Rights Act for a parcel of land situated
in Alexander Bay
 2001: Land Claims Court (LCC) initially rejected the RVC’s land claim
on 22 March 2001
 2003: RVC appealed to the Supreme Court of Appeals which ruled in
its favour on 24 March 2003
 2003: Alexkor and Government appealed the decision to
Constitutional Court
 2003: Constitutional Court awarded RVC both land & mineral rights on
14 October 2003
 Constitutional Court referred matter back to LCC to determine nature
of restitution
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Richtersveld Land Claim…….
The form of restitution claimed by the RVC was as follows:
 Restoration of the land owned by Alexkor;
 The mineral rights in respect of the claimed land or, alternatively,
the rights to prospect and mine under the Minerals and
Petroleum Resources Development Act belonging to Alexkor;
 R1.5 billion as compensation for the diamonds extracted since
1928;
 Repair of the environmental disturbance caused by the extraction
of diamonds from the claimed land by the State and Alexkor or,
alternatively, R1.2 billion as compensation for the environmental
disturbance;
 R10 million as solatium for the dispossession of the land and
mineral rights.
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Richtersveld Land Claim Settlement
 Department of Public Enterprises entered into negotiations with
the RVC
 5 October 2006: Memorandum of Understanding on outlining the
principles and undertakings of an out-of-court settlement
 22 April 2007: Final and binding Deed of Settlement in the matter
was signed
 9 October 2007: Deed of Settlement made an Order of Court
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Richtersveld Land Claim Settlement…
The Settlement reached entails the following:
 Restoration of the land claimed. Portions of land will be transferred to the
RVC by Alexkor and the State [Alexkor, the State & Northern Cape
Government ordered to give effect to];
 Transfer of Alexkor’s land mining rights to the RVC [Alexkor ordered to give
effect to]. In the interim, a Pooling & Sharing Joint Venture (PSJV) will be
formed between Alexkor and the RVC. The State will capitalise Alexkor for it
to contribute R200 million to this PSJV in order to constitute a viable mining
venture;
 Transfer of Alexkor’s agricultural and mariculture assets to the RVC in order
to empower the RVC and to create a basis for future development and wealth
creation [Alexkor ordered to give effect to];
 R190 million as extraordinary reparation to be paid to the RVC’s Investment
Holding Company in three equal instalments over three years [The State
(DLA) ordered to give effect to];
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Richtersveld Land Claim Settlement…
 R50 million lump sum development grant to the RVC’s Investment Holding
Company to be used for the recapitalisation of the agricultural and
maricultural enterprises [State (DLA) ordered to give effect to];
 R45 million to the RVC’s Property Holding Company as compensation to
secure Alexkor’s right of occupation of the transferred residential properties
for a period of ten years [Alexkor ordered to give effect to on transfer of erven
to RVC];
 Establishment of a formal township in terms of the Northern Cape Planning
and Development Act, 1998 at Alexander Bay [The State & Alexkor ordered to
give effect to];
 Environmental rehabilitation and revision of the mine’s Environmental
Management Programme [Alexkor ordered to give effect to financial
obligation with the State providing a guarantee for the financial obligation];
and
 Costs in connection with the implementation of the Settlement.
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Pooling & Sharing Joint Venture
ALEXKOR
Land mining rights
transferred to RMC
Alexkor retains sea
mining rights & mining
assets
PSJV
Alexkor 51%
RMC 49%
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Pooling & Sharing Joint Venture…
 Alexkor will remain the holder of its marine mining rights
 Richtersveld Mining Company will remain the holder of its land mining rights
 Alexkor & RMC will respectively put their marine & land mining rights under
full control of Joint Board of PSJV
 Alexkor will put its land & marines mining assets under control of Joint Board
 Alexkor will have 51% interest (with 3 members on Joint Board) in PSJV &
RMC a 49% interest (also with 3 members on Joint Board)
 Joint Board will appoint Executive Committee
 EXCO shall oversee the conduct of day-to-day operations
 EXCO will put in place a development plan for viable mining venture
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Pooling & Sharing Joint Venture……
 Unanimous Resolution provides for a preliminary establishment phase of the
PSJV
 During this period, the PSJV Joint Board shall be a committee of the Board of
Alexkor with Alexkor effecting the necessary delegations of powers &
functions to the extent necessary for Joint Board to carry out its activities
during the various stages of the preliminary establishment of the PSJV
independently
 EXCO will:
• Identify Alexkor land and marine assets to be pooled
• Identify personnel for the mining activities
• Draft a prospecting plan and work programme
• Draft an interim mining plan
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Alexander Bay Township Establishment
 The DPE undertook to establish a formal township in respect of the
existing Alexander Bay village
 The Deed of Settlement and the Court Order relating to the settlement of
the land claim obligates Alexkor & the State to give effect to this.
 To enable such township establishment, the municipal engineering
services have to be upgraded to municipal standards.
 Richtersveld Municipality will take over such services and fulfil all
functions which a local authority has to fulfil in respect of the provision of
engineering services and other public services in the formally established
township of Alexander Bay.
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Work undertaken….
In preparation for the township application, an engineering services
assessment was conducted & this identified the infrastructure
that would require upgrading. A draft layout of the township was
also designed.
Phase 1
 Preliminary Investigation of Services
 Cost of Upgrading Services
 Pre-application Work with Respect to Application for Township
Establishment
 Draft Township Plan
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Work undertaken….
Phase 2
 Finalisation of Township Plan: negotiation with Richtersveld
Community & coordination between town planners & engineers
 Negotiation of Services Agreement with Richtersveld Local
Municipality
 Design of Civil & Electrical Services
 Approval of Design
 Survey & Pegging of the Plan
 Environmental Impact Assessment
 Submission of Township Application through Statutory
Procedures
 Environmental impact assessments
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MOU between DPE & DBSA
 MOU signed between DPE & DBSA for the DBSA to take over the
implementation of the project under its Sustainable Communities
programme
 MOU sets out framework for DBSA to act as implementing agent for
development of Alexander Bay Township
 MOU provides that development needs of Alexander Bay will be
addressed with due consideration to spatial issues such as Alexander Bay
being a regional node in the Richtersveld & sustainable infrastructure
technologies around energy, sanitation & water provision that are
appropriate to its location, climate, needs & economy.
 MOU provides for Steering Committee constituted by representatives of
DPE, DBSA, Alexkor, Richtersveld Community, Richtersveld Municipality,
Namakwa Municipality & NC Dept of Local Government & Housing & other
stakeholders.
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Functions of Steering Committee
 Determining the scope of work through:
 Review the Spatial Development Framework and Town Plan for
Alexander Bay to align more closely with the current Integrated
Development Plan, the Provincial Spatial Development Framework &
the National Spatial Development Perspective.
 Review the work already undertaken and align existing project plans to
the DBSA approach to sustainable township development.
 Determining required resources;
 Development of a roll-out and implementation plan for adoption by the
respective parties;
 Management and facilitation, cooperation and consultation in respect of
the development of Alexander Bay;
 Monitoring and evaluation of performance and project progress.
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Way forward
 A township application, with a general plan based on existing civil
engineering, mechanical and electrical designs has been
submitted.
 Existing designs expected to cost R80 million to construct, over
18 month period
 Steering Committee would like to determine whether it is possible
to revise these designs at this stage, whether proposed
sustainable approach principles can be incorporated into the
work already undertaken and the cost of such revisions
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Way forward…..
 Alexkor to prepare a comprehensive report on all work that has been
undertaken to date including infrastructure designs and costs, surveys
and status of the township application.
 Namakwa District Municipality to provide statutory requirements for
township establishment.
 DBSA to provide suggestions of infrastructure options for sanitation,
energy and water provision after the decision of the Project Steering
Committee of the favourable option and appointment of the project
Manager with relevant competencies relevant to the desired option.
 Above reports will be used to determine whether it is possible to revise
the existing designs at this stage, whether proposed sustainable
approach principles can be incorporated into the work already
undertaken and the cost of such revisions.
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Thank You
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