| Thu 16 Oct 2008, 8:00 | | MND/MNP - Mondi Limited/Mondi plc - First Corporate Forestry Land Deal Signed |
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MND MNP
MND MNP
MND/MNP - Mondi Limited/Mondi plc - First Corporate Forestry Land Deal Signed
Mondi Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND ISIN: ZAE000097051
Mondi plc
(Incorporated in England and Wales)
(Registration number: 6209386)
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI
As part of the dual listed company structure, Mondi Limited and Mondi plc
(together `Mondi Group`) notify both the JSE Limited and the London Stock
Exchange of matters required to be disclosed under the JSE Listings Requirements
and/or the Disclosure and Transparency and Listing Rules of the United Kingdom
Listing Authority.
16 October 2008
FIRST CORPORATE FORESTRY LAND DEAL SIGNED
Mondi, the Regional Land Claims Commission (RLCC) and the Kranskop communities
of AmaHlongwa and AmaBomvu have signed a land restitution settlement relating to
Mondi forestry land. The agreement provides for the transfer of over 4000
hectares of Mondi land to the two communities. The communities will get title
to the land, which will be leased back to Mondi. Mondi has entered into a 20
year lease agreement with the communities to enable the continued supply of
timber to Mondi`s mills. This is South Africa`s first forestry related land
restitution settlement agreement involving a corporate land owner.
This agreement sets an industry precedent by:
- creating a sustainable working model of Community Trusts;
- ensuring the communities receive an ongoing annual income;
- introducing the communities into Mondi`s supply chain by transforming them
into approved suppliers;
- ensuring a transfer of skills and the increased involvement of community
members in the forestry business.
The South African Government welcomes the settlement, which establishes an
industry template that can be used by other companies as a framework for
settling future forestry land claims.
"This is very good news for South Africa and for all parties involved in these
settlements. Mondi is convinced that the land restitution process is necessary
and we will continue to engage with government and communities to find
sustainable solutions", David Hathorn, Group CEO of Mondi.
"We are very pleased that a settlement has been reached with the community on
terms which ensure real empowerment of new farmers and a continued fibre supply
for our business," said Viv McMenamin, Mondi South Africa`s Forestry and
Transformation Director. "This model and approach set the standard for
equitable land restitution agreements that are commercially sustainable and
beneficial for all parties."
Notes to the editor
About the agreements:
1. The key elements of the agreements signed today are:
- A sale agreement stating that the land, and some immovable properties
on it, will be bought from Mondi by the RLCC for the communities at a
value of approximately R20,5m.
- Two similar lease agreements were signed between Mondi and the two
Community Trusts.
- A settlement agreement was signed by all three parties which spell out
the terms and governance of the relationship.
- The land will be owned by the two communities through the Siyathokoza
and Eyethu 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 two community members per claim to study forestry
at tertiary institutions.
- With Mondi`s assistance, the Community Trusts have set up community
owned businesses, currently engaged as contractors in the forestry
operations. Some 50 people are employed to develop opportunities in
the forestry value chain. Development, mentoring and coaching support
is included for these businesses as part of the agreement.
- Mondi has made an ongoing financial commitment to training, coaching,
mentoring and start-up costs for the Community companies, including
vehicles and equipment.
- FIETA (Forestry Industry Education and Training Authority) has also
partly funded training of Trustees, company directors and employees.
About Mondi:
Mondi is an international paper and packaging group and in 2007 had revenues of
Euro6.3 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 manufacturer of pulp and paper (including recycled material) to the
converting of packaging papers into corrugated packaging and industrial bags.
Mondi has production operations across 35 countries and had an average of 35 000
employees in 2007.
Contact:
Kerry Crandon
Group Communications Manager
Mondi
Tel: +27 11 994 5425
E-mail: kerry.crandon@mondigroup.com
www.mondigroup.com
Louise Brugman
PR Representative for Mondi
Financial Dynamics
Tel: +27 11 214 2415
Email: louise.brugman@fd.com
www.fd.com
Sponsor
UBS South Africa (Pty) Ltd
Date: 16/10/2008 08:00:03 Produced by the JSE SENS Department.
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