Mondi gives land, skills to communities
20 April 2009
Paper producer Mondi settled its second set of land claims on Friday, transferring over 13 700 hectares of forestry land worth R38.7-million into the hands of seven communities in KwaZulu-Natal province.
Mondi signed its first land restitution agreement in October, when 4 000 hectares of land were transferred to the Kranskop communities of AmaHlongwa and AmaBomvu.
Mondi Group joint chairperson Cyril Ramaphosa signed the agreement at a ceremony in Misty Valley, Vryheid on Friday.
Structured around the initial Mondi land claims model, the agreement provides seven communities in KwaZulu-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, while ensuring a continued supply of timber to Mondi's mills," the company said in a statement.
Over the first 10-year period of the lease, Mondi's Forestry Partners Program (FPP) would work closely with the communities to introduce them into Mondi's supply chain and transfer the skills required for the business of forestry farming, the company added.
Over the second 10-year period, communities would have the opportunity to take more direct control of the forestry land and process.
"The programme has a menu of support available to new farmers," said FPP head Jim Matsho. "This includes business planning, environmental and fire support and access to seedlings."
He added that in each case, Mondi would work with communities to match the required support to their needs and aspirations.
Ramaphosa said it was "a tribute to the constructive working relationship between Mondi and the Land Claims Commission that these sustainable solutions have been reached on seven settlements."
Sapa
