Selati Game Reserve

History

The Selati Game Reserve comprises 30500 hectares of privately owned Lowveld Bushveld situated north of the Olifants River between Mica, Gravelotte and Phalaborwa (see locality map). It was formally constituted in September 1993 when the seven founder members signed agreements committing their properties to a single managed unit governed by a constitution and set of rules and regulations aimed at

"Conserving and enhancing the bio-diversity of the Eco-system in order to realise its full economic potential on a sustainable, basis ".

The formation of the Reserve which involved the dropping of fences and the pooling and management of the veld and game resource under a single organization put in motion a process which has resulted in value creation beyond the wildest dreams of the founders at outset.

The Reserve membership has grown from the initial seven owners with 21,000 Hectares to fifteen owners and 30,500 hectares. Since September 1993, land values have risen by over 600% and the value of the game on the Reserve has escalated from R7m to over R40m. During that period, modest capital injections were required, mainly to cover the costs of introducing new species such as elephant. For the past two years members have not needed to pay in at all as the Reserve has generated surpluses and this is expected to continue.

Structure

At this stage, the Selati Game Reserve Association and the Big Five Game Company (Pty) Limited are the two legal vehicles used to run the Reserve. The Association through its Constitution governs the membership of the Reserve i.e., provisions for joining and leaving and members rights and obligations while The Big Five Game Company (Pty) Ltd is responsible for the practical day-to-day management of the Reserve. It concentrates on the effective management of the game and veld resource for the benefit of the shareholders who are all members. It is a requirement that members of the Association (the "Reserve") are shareholders in Big Five. Big Five has a shareholders agreement and is run as a formal company with a Board of Directors elected by the members and a General Manager appointed by the Board. The board meets regularly (at least four times a year), minutes are circulated to the members and audited accounts are presented annually at an Annual General Meeting of shareholders of Big Five and members of the Reserve.

Members must cede rights in all the game and the rights to manage the veld resource on their properties to Big Five. In return members receive shares in Big Five pro rata to their contribution of veld and game. Practically speaking, this means all game is pooled and is "owned" and managed by Big Five.

Key aspects of the Association’s Constitution are:

Members obligations to pool their game and veld by surrendering their rights to the exploitation of their veld and game resource in favour of the Company in return for shares in the Company.

Limitation on subdivision to 1,000 ha. Each owner retains title to his or her property and is free to trade the property subject to the provisions of the Association which include the right of first refusal for the Association or its members to purchase the property and the right of the Association to exclude membership to a new owner.

Limitation on development whereby each owner (or minimum subdivision) is restricted to one 20 bed lodge/camp with one traversing vehicle and one servant’s accommodation structure.

The right of owners to traverse over the whole reserve. (Individual owner’s privacy is secured through a two-tier road system whereby each owner is obliged to make a minimum length of road available for traversing by all members).

On joining the Reserve, each member/owner receives shares in the Big Five Game Company, pro-rata to their contribution of veld and game according to an agreed formula. Management has been appointed to run the day to day operation on the reserve and it reports to a board of directors elected by the shareholders. Management operates in accordance with formal plans and an approved budget. The Board and Shareholders meet regularly to review operations and management accounts and all decisions are formally minuted.

Game Management

The Selati Reserve is a limited conservation area enclosed by a perimeter fence. Consequently the game must be managed proactively to ensure the long-term health of the population and the veld.

Big Five's mission is to increase shareholder value by managing the mix and numbers of animals on the Reserve and, in limited cases such as the Sable Antelope, by running breeding programmes. Live game sales; trophy hunting and occasional culling are employed to achieve this. So far Big Five has been extremely successful in fulfilling this mission. The value of the game on the Reserve has increased dramatically and revenues from live game sales and hunting is generating surpluses over operating costs.

Members are permitted to hunt on their properties but only under direct control of Big Five and they must pay for game shot.

Topography

The Selati lies to the north of the Olifants River between the Drakensberg Escarpment and the eastern boundary of the Kruger National Park (see maps)

The varied topography of the area encompasses 6 different veld types and is home to 22 different species of large mammals. The veld types and mammals are listed in Table 1.

Table 1 - Veld types and large mammals of the Selati

Veld Types

Combretum

Mopani

Mixed Combretum and Marula on quartz

Mixed Mopani, Combretum and Cedarwood

Mixed Mopani and Combretum

Terminalia

Large Mammals

White Rhino Reedbuck Sable

Eland Warthog Steenbok

Kudu Cheetah Zebra

Blesbok Tsessebe Impala

Bushbuck Klipspringer Giraffe

Blue Wildebeest Mount Reedbuck Hartebeest

Nyala Duiker Sharp's Grysbok

Leopard Elephant

The area within which the Reserve lies is perhaps best known for its indigenous Sable Antelope herds. It is close to the Murchison range and the mineral ore deposits of Phalaborwa, which are amongst the largest in the world. This gives rise to a unique topography with varied and interesting geological formations manifesting themselves throughout the area. The Reserve is also home to the cycad, Encephalartos Dyerianos, which does not occur naturally anywhere else in the world.

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