Arrests follow Venetia protests

Date: 09 May 2016 By: Andries van Zyl

Twenty people were arrested after violent protests, said to flow from the recent protest action at Venetia Mine, erupted in and around the small town of Alldays the past weekend.

Provincial police spokesperson Lt Col Malesela Ledwaba confirmed on Tuesday that the protestors were arrested and charged with public violence after incidents of, among others, stone throwing. The violence erupted on Sunday, much to the frustration of local residents and the farming community. Roads were blocked off and farm workers were prohibited from going to work. Ledwaba stated that the 20 people arrested appeared in the Alldays Periodical Court on Tuesday. They were all granted bail and their case was postponed until 7 May.

Ledwaba said that the unrest was linked to the recent protest action at De Beers’ Venetia Mine. A group calling themselves the Ponahalo Concerned Group, representing former employees of Venetia Mine from the Musina and Blouberg communities, protested outside the mine last Monday, blocking access roads to the mine and prohibiting mine workers from going to work.

Mr Tom Tweedy, senior external communications manager corporate affairs of De Beers Consolidated Mines (DBCM), said on Tuesday that they were aware of the arrests, but added that they did not know if the unrest had anything to do with the Ponahalo Concerned Group’s protest action last week. “In order to assist in defusing what had become a potentially volatile situation in Alldays, the company [De Beers] facilitated the provision of legal services to the individuals arrested and bail was granted,” Tweedy said.

As for the stoppages at the mine last week, as well as the current situation, Tweedy said that the company had met and discussed issues raised by the Ponahalo Concerned Group, which represents some employees who are members of the De Beers Equal Allocation Trust (EAT) who were issued units (similar to shares) in 2006. “The recipients included then employees and retirees. The De Beers EAT is the employee shareholder scheme which was established as a part of the Ponahalo empowerment transaction when the BEE Company acquired 26% of DBCM in 2006,” Tweedy said. The protest action followed unhappiness by these EAT beneficiaries who argue that neither they nor their communities are receiving any benefit from these shares.

In short, the EAT beneficiaries (who are only those people in the employ of the DBCM in the month of May 2006) were promised dividends on their “shares” by 2014. However, the worldwide economic crisis in 2008 that had impacted negatively on the diamond market could not be foreseen at that stage. In the meantime, the DBCM is also self-funding a R20 billion project to extend the life of Venetia mine beyond 2040. All of this brought about a situation where dividends could not readily be paid out. Tweedy explained that the EAT scheme works through profit flow, which means that if there is no profit, no dividends can be paid. The debt incurred in the 26% BEE deal also still needs to be repaid.

Tweedy said, however, that they were able resolve the situation at the mine by meeting with representatives of the concerned group. “The concerns raised by the group representatives were discussed in the meeting and a memorandum of understanding was agreed to, wherein the EAT and community-related projects would be addressed by and between the parties. Following the meeting, the company has stated that it appreciates the societal challenges facing the province and wishes to build on the excellent record Venetia Mine has established of assisting in developing the local economy by sourcing supplies and services from the region, working with the provincial education department in building better school facilities, including those for children with special needs who are often in a more challenging position and therefore requiring specialised educational facilities, and in providing business advice and loans for qualifying small-business operators within the De Beers Zimele programme with its Business Hubs situated in the various De Beers mining regions. The meeting and information sharing and discussions about the areas associated with Venetia Mine have contributed to improving the understanding of all parties about the realities facing neighbouring communities and facing mining companies as well as the EAT employee shareholder scheme,” Tweedy said.

He added that the agreement reached last week was being honoured by both parties. “The bus blockade was lifted and employees affected were able to commute by bus to the mine. Full operations and production resumed last Thursday and continue normally,” Tweedy said. He said the parties to the agreement would remain engaged in addressing the issues raised. “We look forward to another meeting with the ‘Concerned Group’ in the near future. We are encouraged that normal operations have returned to the mine, which is important if there is to be more sustainable development, not only in the immediate months ahead but also for the mine and the wider community for the many years that lie ahead as Venetia is not a short-term resource but a long-term operation whose life is being extended by investment in building an underground mine,” he concluded.

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Andries van Zyl

Andries joined the Zoutpansberger and Limpopo Mirror in April 1993 as a darkroom assistant. Within a couple of months he moved over to the production side of the newspaper and eventually doubled as a reporter. In 1995 he left the newspaper group and travelled overseas for a couple of months. In 1996, Andries rejoined the Zoutpansberger as a reporter. In August 2002, he was appointed as News Editor of the Zoutpansberger, a position he holds until today.

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