Archive - 2007

The decision to relocate was made subject to the community's consent and the feasibility of the relocation. In making this decision the boards were mindful of Kumba' commitment to the residents of Dingleton Township to notify them before the end of 2007 regarding whether or not the company will propose that they be moved. The community will now be requested to formally constitute itself so that the consultation process may get underway.

The Township of Dingleton was constructed to serve Sishen Mine in the Northern Cape at the time of mine development in the 1950s. The town was built by the state-owned mining company, Iscor. The mine is now owned by Kumba Iron Ore, a subsidiary of the Anglo American plc group. The town is now, by modern standards, located too close to the current mine. This has been compounded by rising environmental awareness and the expansion of mining activities at both Sishen Mine and a new, neighbouring mine.

Although independent tests have demonstrated that noise, dust and vibration impacts from mining are within legal limits, recent public consultations by Kumba with the Dingleton residents indicated a strong desire by the residents to relocating. While Kumba will pay for the resettlement, the resettlement will only proceed if:

• The resettlement can be planned collaboratively by the residents, Kumba and the appropriate public authorities; and
• The overwhelming majority of residents support both the principle of resettlement and the detailed proposals for rehousing residents; and
• International best practice requirements, as set out in the World Bank's resettlement guidelines and the International Finance Corporation's Performance Standards, can be met; and
• All relevant South African legislation is adhered to; and
• The resettlement leads to an improvement in both the standard of living and the sustainability of the affected communities; and
• The viability of the resettlement can be accommodated.

In addition to rehousing affected residents, Kumba is willing to provide through SIOC, in consultation with the community and relevant authorities but at SIOC's own cost, replacement community infrastructure. Any existing businesses or livelihoods directly affected by the resettlement will also be addressed as a part of the resettlement process.

Process:

• The community will now elect representatives from its midst and formally constitute itself. This constituted entity representing the community will make important decisions relating to issues such as; whether or not the relocation should take place, and if so, the terms of the relocation. The legal entity will also be consulted relating to the technical, legal and other consultants to be appointed and the process to be followed. It is the forum through which all major discussions and negotiations will take place between the community and Kumba. The community should also consider, in consultation with Kumba, how the representative body should be refreshed from time to time to ensure that it has continuing legitimacy in the community.
• To facilitate this process of forming a legal entity, Kumba, through SIOC, is willing to pay for the services of an appropriate lawyer of their choice, from the region, that will assist with the setting up of a section 21 company or similar entity.
• Kumba and the community will also appoint an independent ombudsman which will implement an agreed complaints and grievance procedure that any resident can address complaints too in the event that they feel that any of their complaints, grievances or other concerns have not been adequately addressed.
• Once the community is constituted, discussions will commence in early 2008.