A Tale of Two Realities

 
“I was an armed robber” he tells me without a hint of bravado or exaggeration. “But after I was released from prison I wanted to work and provide for my family. But there were no jobs for a convict and so I ended up mining as a Zama-Zama.”

Today, after years of panning the dry and dusty floors of the diamond rich floors  outside Kimberly, this zama-zama, together with over a thousand other desperate individuals, have managed to avoid a life of crime, maintained their dignity, and have peacefully eked out a living from the wealthy abundance of the South African land. Their humble hope is to keep their family’s fed and clothed, even if this means working for weeks and months without any income, living in harsh conditions with only a shack as protection, with no access to water or to ablution facilities, while having to defend their meagre possessions from being stolen by the mining company or being harassed by police and Department of Mineral Resources (DMR) officials.

This is one side of the South African reality that is often lost in the media`s obsession with their preference for “achievement and success” and the protection of special interests.

On the other side of the South African reality sits Marcel Golding, a director of Ekapa Minerals who has formed a joint venture with London listed Petra Diamonds to buy out the De Beers Kimberly diamond mining operations.

Marcel Golding, the ex-Chief Executive Officer of Etv, also sits on the boards and has shares in over 40 companies including Tsogo Sun, Rex Trueform and Ekapa Mining. As the former Deputy Secretary General of the National Union of Mineworkers (NUM), Marcel Golding has used the BEE provisions to accumulate over R100 million in public assets according to one investment website.
Ekapa Mining and Petra Diamonds bought the De Beers Kimberly operations for R102 million in Cash in 2015. The mine is expected to yield 7.2-million carats from its tailing resources alone. The mines also have 93.2-million tonnes of ore deposits at a grade of 4.4 carats per hundred tonnes on a total area spread over 3 981 ha.

According to Mining Weekly, Ekapa Minerals expects to produce at a rate of 700 000 carats a year in the first three years, generating revenue of R920-million a year at a diamond price of $95/ct.
The acquired assets are poised to be cash flow positive in the first year, with initial working capital of R200-million financed 100% by Ekapa Minerals on a standalone basis.

These two separate realities, one in which desperately poor unemployed people try to survive in the harsh economically depressed outback of the South African rural landscape and who have not enjoyed the economic benefits of our new democracy, and the other reality, of exorbitantly rich, multi shareholding, powerful individuals, who have abundantly benefited from the dawn of a new South Africa, seldom come into contact yet are always in tension.

In what can only be described as an example of the worst excesses of greed, inspired by the current legislative framework and an apparent governmental preference for economic solutions that benefit only the few, Ekapa Mining and Petra Diamonds, has lodged an urgent interdict in the Kimberly High Court to evict hundreds of zama-zama informal miners who have been eking out a living from unused land in and around the Kimberly mines.

Not only does the Ekapa Mining interdict seek to prevent hard working, poverty stricken, miners from accessing some of Ekapa`s properties where they eke out a living from the discarded scraps of their mining operation, it also seeks to prevent the informal miners from accessing properties that do not belong to it. Over 90% of the properties that Ekapa wishes to interdict the informal miners from entering do not belong to Ekapa.

Besides being an attempt to abuse the law, it is an egregious example of spite and greed. This attempt at legal terrorism would have succeeded had the miners not been able to access legal representation from Richard Spoor Attorneys who, without any financial support, have unearthed a range of questionable, if not outright untrue claims by the Mine.

Thus Ekapa Mining, an immensely wealthy company, that will derive enormous benefit and wealth from its operations over the lifetime of the mine, and whose shareholders and Directors are themselves obscenely wealthy in the face of systemic poverty, have determined that their interests of accumulating obscene amounts of wealth are threatened by the informal miners who extract an infinitesimal fraction of the millions of carats that Ekapa will benefit from, must be protected by hook or by crook. We hope that the Kimberly High Court will deal decisively with such attempts by the rich and wealthy to deny the unemployed their right to work and dignity.

Such greed and lack of concern about the well-being and best interests of the country and its people, despite the daily confirmation and affirmation of  greed by our political and business leaders, should have no place in any country, and even less so in a country that bares the shame of being the most unequal society in the world.

But it is indeed this type of greed and skewed legislative and institutional priority that has led to the inequality that we so often decry as a general part of cleansing our consciences.  Our disturbingly unequal society did not come about merely by an invisible hand, but is instead engineered and allowed to develop in the policies and legislation that we pass and acquiesce to.

Despite our mining legislation making an extensive song and dance about redressing the injustices of the past, here is an example where our mining legislation and its institutions seek to provide a preference to and actively collude with large scale mining, whose historically skewed ownership patterns provides a significant and conclusive preference to patterns of ownership derived from the past and which benefits a handful of well-placed politically connected individuals.

This is particularly significant considering the history of land dispossession and specifically the colonial dispossession of this land. According to noted historian Emilia Potenza in her book “All that Glitters”, she describes how initially, diggers of all races were able to stake claims but that after some time white diggers lobbied to prevent people of colour from owning claims: “White claim-holders from Europe, America and Australia ganged up against a small number of Griquas, Tlhaping, Malay, Indian and Chinese claimholders. African claim-holders were suspected of IDB (Illicit Diamond buying), because they spoke the same language and had similar backgrounds to many of the workers. This led to riots in 1875 in which whites attacked African or Asian claim-holders. The British authorities responded by cancelling all claims owned by blacks.”

As wealthier investors became involved, claims were consolidated as smaller diggers sold their claims. By the late 1880s, De Beers, which was controlled by Cecil Rhodes, came to control most of the industry and to monopolise most of the world’s diamond market.

With this history in mind, the then Minister of Minerals, Ngoako Ramatlhodi, in July 2015 at a Small Scale Mining Conference in Kimberly, promised the informal miners,  that the DMR would assist them to formalise their operations. But despite this promise, the DMR has consistently failed to deliver on this promise. It would appear that, instead of assisting the miners, that the DMR in Kimberly has rather acted in collaboration with Ekapa mines to bring the interdict against the informal miners. More than one and a half years after the promise was made, DMR has failed to formalise the informal mining operation and has now washed its hands of any responsibility for the possibility that thousands of informal miners might lose their livelihoods, their homes and will most certainly fail to meet its legislative obligation to ensure redress of past inequalities.

The DMR has actively acted in a threatening way to the numerous requests by the informal miners to formalise their operation by calling in the Hawks who threatened to arrest leaders. The Police have failed to open cases where miners have alleged that the Mine security stole and damaged their equipment and have instead threatened to arrest those informal miners who dared to complain.

The reality of South Africa today, is that, where its constituent parts meet in a clash of interests, the special interests of the rich and politically connected always enjoys the institutional and violent support of the state. While it’s most vulnerable citizens are ignored and discarded as yet more disposable labour.

But reality is a strange thing. It refuses to be ignored and will eventually manifest itself, and history shows that its manifestation is often indiscriminate.


It is thus up to us, the willing and able citizenry to ensure that injustices such as the one unfolding in Kimberly, are not allowed to go by unchallenged, less the indiscriminate nature of reality comes back to bite us.

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