Source: https://www.scribd.com/document/118473631/Report-on-SA-Mining
Timestamp: 2017-09-21 21:45:38
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Report on SA Mining | Mining | Apartheid
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The report provides an overview of the background and the current status of Mining Industry in the South Africa. Regulations and significance of the mining sector in South Africa are also discussed. It outlines Regulations, procedure for various permits and Licenses, key emerging issues in the mining sector in South Africa and progress made towards implementing mining‐related commitments in the above areas. Furthermore, it identifies implementation challenges and constraints and proposes recommendations, including policy measures needed to accelerate implementation.
Abstract ....................................................................................................................................................................................... 1 INTRODUCTION ....................................................................................................................................................................... 4 SOUTH AFRICA MINING: TREND AND OPPORTUNITIES ....................................................................................... 5 Political And Economic Transformation ................................................................................................................... 5 Royalties ................................................................................................................................................................................. 6 Positive Developments ..................................................................................................................................................... 6 POLICY AND INITIATIVES ................................................................................................................................................... 9 MINERAL AND ENVIRONMENTAL REGULATION ................................................................................................... 12 Transferability and encumbrance of prospecting rights and mining rights ............................................ 12 Application for reconnaissance permission .......................................................................................................... 12 Issuing and duration of reconnaissance permission ......................................................................................... 13 Rights and obligations of holder of reconnaissance permission .................................................................. 13 Application for prospecting right............................................................................................................................... 13 Granting and duration of prospecting right........................................................................................................... 14 Application for renewal of prospecting right ........................................................................................................ 15 Rights and obligations of holder of prospecting right ....................................................................................... 15 Permission to remove and dispose of minerals ................................................................................................... 16 Information and data in respect of reconnaissance and prospecting ......................................................... 16 Application for mining right ......................................................................................................................................... 16 Granting and duration of mining right..................................................................................................................... 17 Application for renewal of mining right .................................................................................................................. 17 Rights and obligations of holder of mining right ................................................................................................. 18 Mineral beneficiation ...................................................................................................................................................... 19 Application for, issuing and duration of mining permit ................................................................................... 19 Information and data in respect of mining or processing of minerals ....................................................... 20 Application for retention permit ................................................................................................................................ 20 Issuing and duration of retention permit ............................................................................................................... 20 Refusal of application for retention permit ........................................................................................................... 21 Application for renewal of retention permit ......................................................................................................... 21 Rights and obligations of holder of retention permit ........................................................................................ 21 Retention permit not transferable............................................................................................................................. 22 Environmental management principles .................................................................................................................. 22 Integrated environmental management and responsibility to remedy..................................................... 22 Environmental management programme and environmental management plan................................ 23
Financial provision for remediation of environmental damage ................................................................... 24 Management of residue stockpiles and residue deposits ................................................................................ 24 Issuing of a closure certificate ..................................................................................................................................... 25 Removal of buildings, structures and other objects ........................................................................................... 25 Restriction or prohibition of prospecting and mining on certain land ...................................................... 26 Minister's power to prohibit or restrict prospecting or mining ................................................................... 26 Minister may investigate occurrence, nature and extent of mineral resources ..................................... 26 Optimal mining of mineral resources....................................................................................................................... 27 Notice of profitability and curtailment of mining operations affecting employment .......................... 28 Use of land surface rights contrary to objects of Act ......................................................................................... 28 Compensation payable under certain circumstances........................................................................................ 29 Minister's power to expropriate property for purpose of prospecting or mining ................................ 30 Lapsing of right, permit, permission and licence ................................................................................................ 30 Water USE License ................................................................................................................................................................ 31
South Africa Mining Industry primarily covers the area of activities from extraction of minerals like gold, platinum, chromium, diamonds, vanadium, manganese, uranium, iron ore to trading with foreign countries. The rich abundance of mineral resources enable South Africa as one of the leading mineral exporters in the world. South Africa mining industry basically depends on gold and diamonds. Lots of companies are engaged with the production and supply of raw minerals and their finished products. With Citibank estimating in 2010 that South Africa had R2.5 trillion worth of mineral reserves, it is clear that the mining industry is crucial in the war against poverty and underdevelopment in South Africa. The Mineral Policy and Promotion Branch of the Department of Mineral Resources is responsible for formulating and promoting mineral‐related policies that will encourage investment in the mining and minerals industry, making South Africa attractive to investors. South African Government is trying to promote this mining industry through several incentive programmes. The government is also supporting the small mining companies and creating employment opportunities. Use of modern technologies and research work are also taking a major role in promoting South Africa mining industry. Some essential components of South Africa mining industry are water resources, mine workers, electricity and facility of transportation. For example, an average of 3 tons of gold ore, approx. 5000 litres of water and 600 KWH of electricity is required to produce one ounce of gold. Over the last few years, the price of gold has dropped continuously. The main reason is the reduced demand for gold on the world market, because fewer currencies are being backed up by gold reserves. Also, competition from Russia and Australia puts pressure on the gold price, because their gold mining is easier and cheaper. In this report current scenario of Mining Industry, various Permits and licenses those are required to commence mining activity along with the procedure for application regarding required permits and licenses are discussed.
SOUTH AFRICA MINING: TREND AND OPPORTUNITIES
It is universally acknowledged that South Africa is the world’s richest and most diverse repository of mineral commodities. Globally, it is the largest producer of gold, vermiculite, platinum and chromium. In addition, it has major deposits of antimony, coal, iron ore, manganese, nickel, phosphates, tin, uranium, diamonds, copper and vanadium. In South Africa, mining remains a key foundation industry. It accounts for: • 15% to 20% of GDP (directly and indirectly) • 50% of merchandise exports (primary and beneficiated mineral exports) • 12% of fixed investment (directly and indirectly) • 30% of the market value of the Johannesburg Securities Exchange • 20% of formal sector employment (directly and indirectly) • 50% of volume of the country’s rail and ports • 93% of electricity generation via coal powered plants • 16% of electricity demand.
Prior to country’s first truly democratic election in 1994, the majority of South Africans – on the basis of racial classification – were excluded from full participation in the mining industry. Clearly, this was a situation that could not be sustained and since 1994 constructive efforts to normalise SA’s mining environment, to lower barriers to entry, to encourage participation in the sector by previously disadvantaged South Africans and to promote investment in the sector have been made. These initiatives reversed the circumstances that prevailed during the apartheid era. The synchronized global commodities boom and the recently more competitive rand exchange rate have resulted in a recovery in mining investment in South Africa in 2006. Factors such as structurally higher demand in terms of the “Chindia effect”, the weakening US$ and consolidation in supply, etc, remain positive factors. Therefore, from an industrial and economic perspective the mining sector has been in the vanguard of the transformation process It was the first sector – in October 2002 – and without Government coercion, to produce its own empowerment Charter The Charter came into effect with the introduction of the Mineral and Petroleum Resources Development Act (MPRDA) in 2004 A primary requirement of the Mining Charter is 15% mining company ownership by historically disadvantaged South Africans in the first five years (2009); at 10 years the ownership target moves to 26% (2014) These criteria are assiduously applied by Government in considering applications by companies for mining and prospecting rights
Empowerment provisions, applied also to other industrial and commercial sectors by different legislative enactments, are fundamental to doing business in contemporary South Africa The natural consequence of the empowerment enactments over the last three years resulted in conclusion of over US$ 10 billion Black Economic Empowerment deals and the emergence of some big mining companies that are managed, run and substantially owned by black South Africans. These deals are concluded on a willing seller‐willing buyer basis at market determined prices and have helped unlock value and have been positive for the mining sector. Empowerment has also created investment opportunities which have led to joint ventures between local empowerment companies and both domestic and foreign‐owned organisations.
The proposed introduction of a mining industry system of royalties is an important development from an investment perspective. Clearly, the Chamber of Mines of South Africa would prefer to have no stateimposed royalty regime but it does recognize Government’s right to impose royalties on the exploitation of non‐renewable mineral resources. The mining industry, through the Chamber, has submitted detailed comments to Government on the new royalty proposals. In these comments the Chamber welcomes significant improvements that are contained in the second draft of the Royalties Bill. The proposed royalty on most commodities has been reduced. It stresses the industry’s conviction that a net based system, rather than a revenue‐based regime, will better serve the economic interests of the country. It opposes the proposed two‐tier system of royalties because: A higher penalty rate for primary exports would significantly undermine the competitiveness of certain commodities (iron ore, coal, manganese, with minimal downstream benefit) Rather than penalizing mining, the focus should be on creating a competitive environment that attracts manufacturing companies committed to downstream beneficiation. Engagements between the mining industry and Government on the proposed royalty legislation are ongoing and, at this time, there is no positive indication on when it is likely to be promulgated. It is believed that the royalty system that will emerge will not be unreasonably punitive. It must attract manufacturing companies to invest in South Africa’s downstream mining sector.
Focus on some positive developments that have taken place. (a) The most significant recent event and one that will encourage the critical elements of confidence and stability in South Africa’s mining industry, was Government’s agreement to a Chamber of Mines request to amend the MPRDA, and accompanying regulations, in a manner that has averted the very real possibility of mining companies lodging claims for compensation for rights that could have been expropriated by operation of the Act. (b) With the introduction of the Act on 1 May 2004, all mining rights previously owned by mining companies were transferred into the custodianship of the State.
(c) Mining companies are obliged to apply for the conversion of old rights into new order rights and were given a period of three years, which expired on 30 April 2007, to lodge claims for compensation for expropriated rights. (d) The amendment to the Act will extend to 2011 the deadline for companies to lodge compensation claims, a significantly improved option in the sense that by 2011 there will be far greater clarity for companies to determine whether or not they have incurred losses directly attributable to the introduction of the MPRDA. (e) Government’s decision to amend the Act is welcomed by the Chamber which has consistently held the view that the possible institution of large compensation claims by mining companies would negatively impact on investor confidence in the mining industry. (f) An additional positive step that has been taken includes a R415 billion Government investment programme that signifies a commitment to reduce bottlenecks in ports, rail, water, roads, etc over the 3‐year Medium Term Expenditure Framework. About R210 billion of this expenditure is earmarked for transport and electricity generation and distribution improvements – both critically important areas for the business of mining. (g) In co‐operation with platinum mining members of the Chamber, Government will proceed with the construction of the R5.4‐billion De Hoop Dam project on the Steelpoort River in the country’s North West Province – a traditionally water‐deprived region. (h) When completed, the De Hoop Dam will deliver an essential resource to exciting new platinum mining ventures along the Eastern limb of the world famous Bushveld Igneous Complex. (i) Already by a considerable margin the world’s biggest producer of PGMs, the South African platinum mining sector, with the development potential to be unleashed on completion of the De Hoop Dam project, will be well positioned to meet any increasing demands for PGMs from both the domestic and international markets and this constitutes a positive contribution to the secure supply of raw materials. (j) Additional encouraging developments include the establishment of a high level leadership forum, embracing all stakeholders, whose task is to put in place mechanisms necessary for the maintenance of the country’s comparative advantage and building of its competitive advantages. (k) Investment and mining production started recovering in the second half of 2006 (investment picked up by more than 7 per cent) (l) Agreements have been signed with transport authorities for upgrades of the dedicated coal export railway line to Richards Bay and the iron ore export rail link from the town of Sishen to Saldanah Bay (m) Capacity expansion of the Richards Bay Coal Terminal has been approved (n) In recent months around 2 500 new prospecting permits have been granted. (o) About 350 mining rights have also been granted (p) There is a new commitment to transparency by the Department of Minerals and Energy on progress with applications (q) The Chamber of Mines and the Department are constructively engaged on problems related to environmental licensing (r) Exploration expenditure in South Africa in 2006 increased to levels similar to those elsewhere in the world (s) Consideration is being given to the introduction of a flow‐through share system to increase the availability of venture capital for exploration purposes. Mining industry stakeholders in South Africa are acutely aware of the fact that a competitive, stable and predictable mining environment is critical to attracting investment into the business of mining.
So too is the existence of a transparent mining industry taxation regime – a system that South Africa enjoys and which compares favourably with those in other major mineral producing countries. For foreign companies involved in mining in South Africa there are no prohibitions or restrictions on the repatriation of profits. I addition, prudent macroeconomic management has improved the ability of the economy to handle exogenous shocks. With our country’s policy reform process substantially concluded and a clear willingness by all interested parties to confront and resolve all of the challenges, it is my categorical contention that the prospects for increased mining sector investment in South Africa are particularly encouraging
Mining and minerals policy is based on the principles of the Freedom Charter, according to which the mineral wealth beneath the soil will be transferred to the ownership of the people as a whole. The Mineral and Petroleum Resources Development Act (MPRDA), 2002 (Act 28 of 2002), has opened doors for the substantial and meaningful participation of historically disadvantaged South Africans (HDSAs) in the exploration and exploitation of mineral resources. The MPRDA, 2002 enshrines equal access to mineral resources, irrespective of race, gender or creed. Section 100 of the MPRDA, 2002 provides for the development of the Broad‐Based Socio‐Economic Empowerment Charter, which is popularly known as the Mining Charter. The Mining Charter, as promulgated in 2004, made provision to review the progress against agreed targets five years after its implementation. The introduction of the Mining Charter in South Africa was aimed at transforming the mining industry to redress historical imbalances engendered by apartheid so that the industry is consistent with the changes in South Africa’s overall transformation of its social, political and economic landscape. The Department of Mineral Resources concluded an assessment of the progress of the industry’s transformation against the Mining Charter objectives as adopted in 2002. The racial ownership pattern of the country’s mining assets has remained largely unchanged, with only 8,9% black ownership attained by 2009 against the target of 15%. The reviewed Mining Charter, launched in September 2010, seeks to correct this, putting emphasis on 26% of South Africa’s mining assets being black economic empowerment (BEE)‐compliant by 2014. It also provides for the complete elimination of hostels on South Africa’s mines by 2014, and introduces a sustainable element, premised on the understanding that the social licence to operate includes the en‐ vironment, health and safety performance. Under the new charter, companies found not complying could face penalties, which could include the revoking of a mining company’s licence. The Mining Industry Growth, Development and Employment Task Team (Migdett), a multistakeholder task team chaired by the Department of Mineral Resources, and comprising government and organised labour, was established in December 2008 to: • • help the industry manage the negative effects of the global economic crisis and to save jobs position the industry for growth and trans formation in the medium to long term.
The first mandate of Migdett was successfully concluded in September 2009, with job losses contained to less than 40 000, against original projections in excess of 100 000 job losses in the first year of the global economic crisis. During the course of its second mandate, which started during the latter part of 2009, Migdett identified two major attributes that will position South Africa’s mining industry along a sustainable growth path, promoting competitiveness and transformation. To this extent, Migdett established two working groups, chaired by the Chamber of Mines and South African Mining Development Association, respectively. This pro‐ cess recognised that the department had previously dealt with competitiveness and transformation of the mining industry as mutually exclusive and Migdett was specifically tasked to emphasise the symbiotic relationship and mutually reinforcing nature of these attributes.
The second phase of the Migdett process culminated in the signing of the declaration on the Strategy for Sustainable Growth and Meaningful Transformation of South Africa’s Mining Industry on 30 June 2010. All stakeholders represented in Migdett signed the declaration document. The relevant transformation aspects of the declaration document were effectively migrated to constitute the bulk of the mendments of the Mining Charter. In essence, the revised Mining Charter is located within the broader context of the Strategy for Sustainable Growth and Meaningful Transformation of South Africa’s Mining Industry. The Codes of Good Practice and the Housing and Living Conditions Standards for the Mineral Industry were gazetted in April 2009. The promulgation of the MPRDA, 2002 led to an increase in the number of new entrants in the mining space, seen by the increase in BEE companies mining coal, which were then unable to export their goods due to insufficient rail and port facilities. The Department of Mineral Resources established the Coal Industry Task Team to facilitate access to new coal‐export facilities for junior coal‐mining companies, and by August 2010 stakeholders had collectively secured four million tons (Mt) export capacity dedicated to these companies. The enabling environment has led to a further increase in the number of new entrants, requiring a significantly larger proportion of access to these facilities. The department continues to engage all stakeholders to seek supplementary solutions. The Geoscience Amendment Bill, which aims to align the Geoscience Act, 1993 (Act 100 of 1993), with the MPRDA, 2002 and expand the functions of the Council for Geoscience (CGS) has been gazetted and will be reintroduced to Parliament. The Bill seeks to: • Mandate the CGS to be the custodians and curators of geotechnical information, to be a national mandatory advisory authority in respect of geohazards related to infrastructure development, to undertake exploration and prospecting research in the mineral and petroleum sectors and to add to the functions of the council Put mechanisms in place to address problems associated with infrastructure development on dolomitic land Empower the CGS to be the custodian of all geotechnical data to compile a complete geotechnical risk profile of the country Enable the CGS to become the custodian of technical information relating to exploration and mining.
The Department of Mineral Resources, in conjunction with other key departments as well as relevant state‐owned enterprises, launched the Beneficiation Strategy in March 2009, after approval was granted by Cabinet for the strategy to be circulated for broader consultation. Once comments are incorporated into the strategy, it will be sent to Cabinet for approval as a policy position for the country. The Beneficiation Strategy provides for a framework within which South Africa is able to implement orderly development of the country’s mineral value chains to leverage benefit from inherent comparative and competitive advantage, transformation and diversification of the economy as well as incremental gross domestic product (GDP) growth. The strategy is intended to support national programmes such as the National Industrial Policy Framework. South African mining law requires the following of the holder of a reconnaissance permission, prospecting right, mining right, mining permit, or retention permit: Must consider, investigate, assess, and communicate the impact of prospecting and mining on the environment
Must manage all environmental impacts in accordance with the environmental management plan or approved environmental management programme Must, as far as it is reasonably practicable, rehabilitate the environment affected by the prospecting or mining operations to its natural or predetermined state or to a land use which conforms to the generally accepted principle of sustainable development Must be responsible for any environmental damage, pollution or ecological degradation as a result of the reconnaissance prospecting or mining operations and which may occur inside and outside the boundaries of the area to which such right, permit or permission relates Must have made prescribed financial provisions for the rehabilitation or management of negative environmental impacts before the Minister approves the environmental management plan The relevant permits relating to mining, water management, and ARD are as follows: A mining permit A water use authorisation An approved environmental impact assessment In terms of ARD, the studies in support of the applications for environmental and water‐related authorizations will include the following: The identification of all potential impacts from the mining operation The assessment of these potential impacts in terms of the source of the impact, potential pathways, and potential impact on the receiving water body The South African Department of Water Affairs and Forestry (DWAF) has published a series of best practice guidelines for water management at mines (DWAF, 2006, 2007). Most of these guidelines provide guidance on pollution prevention and minimization of impacts, and best management practice relating to general and specific mining activities that is directly applicable to ARD. A specific guideline on impact prediction which relates to ARD will be developed in 2009. These best practice guidelines offer valuable “how to” guidance on the management and prediction of ARD. Although these have been developed specifically for the South African mining environment, these guidelines may be useful to mining companies dealing with ARD elsewhere.
MINERAL AND ENVIRONMENTAL REGULATION
The Regulations regarding mining related activities are called as “Mineral and petroleum Resources Development Regulation”, one who wants to start mining activity has to follow a sequence of actions, getting certain permits and licenses from the Department of Mineral and Energy Resource. The list of Permits related to the Mining Activities is as follows: 1. 2. 3. 4. Reconnaissance Permission Prospecting Right Mining Right Retention Permit
Transferability and encumbrance of prospecting rights and mining rights
1. A prospecting right or mining right or an interest in any such right, or a controlling interest in a company or close corporation, may not be ceded, transferred, let, sublet, assigned, alienated or otherwise disposed of without the written consent of the Minister, except in the case of change of controlling interest in listed companies. 2. The consent referred to in subsection (1) must be granted if the cessionary, transferee, lessee, sublessee, assignee or the person to whom the right will be alienated or disposed of‐ a. is capable of carrying out and complying with the obligations and the terms and conditions of the right in question; and b. satisfies the requirements contemplated in section 17 or 23, as the case may be. 3. The consent contemplated in subsection (1) is not required in respect of the encumbrance by mortgage contemplated in subsection (1) of right or interest as security to obtain a loan or guarantee for the purpose of funding or financing a prospecting or mining project by‐ a. any bank, as defined in the Banks Act, 1990 (Act 94 of 1990); or
b. any other financial institution approved for that purpose by the Registrar of Banks referred to in the Banks Act, 1990 (Act 94 of 1990), on request by the Minister, if the bank or financial institution in question undertakes in writing that any sale in execution or any other disposal pursuant to the foreclosure of the mortgage will be subject to the consent in terms of subsection (1). 4. Any transfer, cession, letting, subletting, alienation, encumbrance by mortgage or variation of a prospecting right or mining right, as the case may be, contemplated in this section must be lodged for registration at the Mining Titles Office within 30 days of the relevant action.
Application for reconnaissance permission
Any person who wishes to apply to the Minister for a Reconnaissance Permission must lodge the application‐ 1. At the office of the Regional Manager in whose region the land is situated; 2. In the prescribed manner; and 3. Together with the prescribed non‐refundable fee.
The Regional Manager will accept an application for a reconnaissance permission if‐ 1. The requirements contemplated in subsection (1) are met; and 2. No person holds a prospecting right, mining right, mining permit or retention permit for the same mineral and land. If the application does not comply with the requirements of this section, the Regional Manager must notify the applicant in writing of that fact within 14 days of receipt of the application and return the application to the applicant.
Issuing and duration of reconnaissance permission
Subject to subsections (1) and (2), the Minister will issue the reconnaissance permission if‐ 1. The applicant has access to financial resources and has the technical ability to conduct the proposed reconnaissance operations in accordance with the reconnaissance work programme; 2. The estimated expenditure is compatible with the proposed reconnaissance operation and duration of the reconnaissance work programme; and 3. The applicant is not in contravention of any relevant provision of MPRDA Act. The Minister will refuse to issue a reconnaissance permission if the applicant does not meet all the requirements referred to in subsection (1). If it happen, the Minister will, within 30 days of the decision, in writing notify the applicant of the decision. The reconnaissance permission is valid for two years and is not renewable. A reconnaissance permission may not be transferred, ceded, let, sublet, alienated, disposed of or encumbered by mortgage.
Rights and obligations of holder of reconnaissance permission
A reconnaissance permission entitles the holder, on production of the reconnaissance permission and after consulting the land owner or lawful occupier thereof, to enter the land concerned for the purposes of conducting reconnaissance operations but reconnaissance permission does not entitle the holder to‐ 1. Conduct any prospecting or mining operations for any mineral in the land in question; or 2. Any exclusive right to apply for or be granted a prospecting right or mining right.
Application for prospecting right
Any person who wishes to apply to the Minister for a prospecting right must lodge the application at the office of the Regional Manager in whose region the land is situated, in the prescribed manner and together with the prescribed non‐refundable application fee. The Regional Manager must accept an application for a prospecting right if the requirements contemplated in subsection (1) are met and no other person holds a prospecting right, mining right, mining permit or retention permit for the same mineral and land.
If the application does not comply with the requirements of this section, the Regional Manager will notify the applicant in writing of that fact within 14 days of receipt of the application and return the application to the applicant. If the Regional Manager accepts the application, the Regional Manager must, within 14 days from the date of acceptance, notify the applicant in writing to submit an environmental management plan and to notify in writing and consult with the land owner or lawful occupier and any other affected party and submit the result of the consultation within 30 days from the date of the notice. Upon receipt of the information referred to in subsection (4) (a) and (b)(of MPRDA act ), the Regional Manager must forward the application to the Minister for consideration. The Minister may by notice in the Gazette invite applications for prospecting rights in respect of any land, and may specify in such notice the period within which any application may be lodged and the terms and conditions subject to which such rights may be granted.
Granting and duration of prospecting right
Subject to subsection (4), the Minister must grant a prospecting right if 1. The applicant has access to financial resources and has the technical ability to conduct the proposed prospecting operation optimally in accordance with the prospecting work programme; 2. The estimated expenditure is compatible with the proposed prospecting operation and duration of the prospecting work programme; 3. The prospecting will not result in unacceptable pollution, ecological degradation or damage to the environment; 4. The applicant has the ability to comply with the relevant provisions of the Mine Health and Safety Act, 1996 (Act 29 of 1996); and 5. The applicant is not in contravention of any relevant provision of this Act. The Minister must refuse to grant a prospecting right if the application does not meet all the requirements referred to in subsection (1) and the granting of such right will‐ i. ii. iii. Result in an exclusionary act; Prevent fair competition; or Result in the concentration of the mineral resources in question under the control of the applicant.
If the Minister refuses to grant a prospecting right, the Minister must, within 30 days of the decision, in writing notify the applicant of the decision with reasons. The Minister may, having regard to the type of mineral concerned and the extent of the proposed prospecting project, request the applicant to give effect to the object referred to in section 2 (d). The granting of a prospecting right in terms of subsection (1) becomes effective on the date on which the environmental management programme is approved in terms of section 39. A prospecting right is subject to this Act, any other relevant law and the terms and conditions stipulated in the right and is valid for the period specified in the right, which period may not exceed five years.
Application for renewal of prospecting right
1. Any holder of a prospecting right who wishes to apply to the Minister for the renewal of a prospecting right must lodge the application‐ (a) at the office of the Regional Manager in whose region the land is situated; (b) in the prescribed manner; and (c) together with the prescribed non‐refundable application fee. 2. An application for renewal of a prospecting right must‐ (a) state the reasons and period for which the renewal is required; (b) be accompanied by a detailed report reflecting the prospecting results, the interpretation thereof and the prospecting expenditure incurred; (c) be accompanied by a report reflecting the extent of compliance with the requirements of the approved environmental management programme, the rehabilitation to be completed and the estimated cost thereof;and (d) include a detailed prospecting work programme for the renewal period. 3. The Minister must grant the renewal of a prospecting right if the application complies with subsections (1) and (2) and the holder of the prospecting right has complied with the‐ (a) terms and conditions of the prospecting right and is not in contravention of any relevant provision of MPRDA Act; (b) prospecting work programme; and (c) requirements of the approved environmental management plan. A prospecting right may be renewed once for a period not exceeding three years. A prospecting right in respect of which an application for renewal has been lodged shall, despite its stated expiry date, remain in force until such time as such application has been granted or refused.
Rights and obligations of holder of prospecting right
In addition to the rights referred to in section 5, the holder of a prospecting right has the exclusive right to apply for and be granted a renewal of the prospecting right in respect of the mineral and prospecting area in question, the exclusive right to apply for and be granted a mining right in respect of the mineral and prospecting area in question and the exclusive right to remove and dispose of any mineral to which such right relates and which is found during the course of prospecting. The holder of a prospecting right must a) Lodge such right for registration at the Mining Titles Office within 30 days of the date on which the right‐ (i) becomes effective
b) Commence with prospecting activities within 120 days from the date on which the prospecting right becomes effective or such an extended period as the Minister may authorise; c) Continuously and actively conduct prospecting operations in accordance with the prospecting work programme; d) Comply with the terms and conditions of the prospecting right, relevant provisions of this Act and any other relevant law; e) Comply with the requirements of the approved environmental management programme; f) Pay the prescribed prospecting fees to the State; and g) Pay the State royalties in respect of any mineral removed and disposed of during the course of prospecting operations.
Permission to remove and dispose of minerals
The holder of a prospecting right may only remove and dispose for his or her own account any mineral found by such holder in the course of prospecting operations conducted pursuant to such prospecting right in such quantities as may be required to conduct tests on it or to identify or analyse it. The holder of a prospecting right must obtain the Minister's written permission to remove and dispose for such holder's own account of bulk samples of any minerals found by such holder in the course of prospecting operations conducted pursuant to such prospecting right.
Information and data in respect of reconnaissance and prospecting
The holder of a prospecting right or reconnaissance permission must‐ (a) keep proper records, at its registered office or place of business, of prospecting operations and the results and expenditure connected therewith, as well as borehole core data and core‐log data, where appropriate; and (b) submit progress reports and data, in the prescribed manner and at the prescribed intervals, to the Regional Manager regarding the prospecting operations. No person may dispose of or destroy any record, borehole core data or core‐log data contemplated in subsection (1) (a) except in accordance with the written directions of the relevant Regional Manager.
Any person who wishes to apply to the Minister for a mining right must lodge the application at the office of the Regional Manager in whose region the land is situated in the prescribed manner and together with the prescribed non‐refundable application fee. The Regional Manager must accept an application for a mining right if the requirements contemplated in subsection (1) are met and no other person holds a prospecting right, mining right, mining permit or retention permit for the same mineral and land. If the application does not comply with the requirements of this section, the Regional Manager must notify the applicant in writing of that fact within 14 days of the receipt of the application and return the application to the applicant. If the Regional Manager accepts the application, the Regional
Manager must, within 14 days from the date of acceptance, notify the applicant in writing to conduct an environmental impact assessment and submit an environmental management programme for approval and to notify and consult with interested and affected parties within 180 days from the date of the notice. The Minister may by notice in the Gazette invite applications for mining rights in respect of any land, and may specify in such notice the period within which any application may be lodged and the terms and conditions subject to which such rights may be granted.
Granting and duration of mining right
The Minister may grant a mining right if: a) The mineral can be mined optimally in accordance with the mining work programme; b) The applicant has access to financial resources and has the technical ability to conduct the proposed mining operation optimally; c) The financing plan is compatible with the intended mining operation and the duration thereof; d) The mining will not result in unacceptable pollution, ecological degradation or damage to the environment; e) The applicant has provided financially and otherwise for the prescribed social and labour plan; f) The applicant has the ability to comply with the relevant provisions of the Mine Health and Safety Act, 1996 (Act 29 of 1996); g) The applicant is not in contravention of any provision of this Act; and h) The granting of such right will further the objects referred to in section 2 (d) and (f) and in accordance with the charter contemplated in section 100 and the prescribed social and labour plan. The Minister may, having regard to the nature of the mineral in question, take into consideration the provisions of section 26. The Minister may refuse to grant a mining right if the application does not meet all the requirements referred to in subsection (1). If the Minister refuses to grant a mining right, the Minister must, within 30 days of the decision, in writing notify the applicant of the decision and the reasons. A mining right granted in terms of subsection (1) comes into effect on the date on which the environmental management programme is approved in terms of section 39 (4). A mining right is subject to the Act, any relevant law, the terms and conditions stated in the right and the prescribed terms and conditions and is valid for the period specified in the right, which period may not exceed 30 years.
Application for renewal of mining right
Any holder of a mining right who wishes to apply to the Minister for the renewal of a mining right must lodge the application at the office of the Regional Manager in whose region the land is situated, which should be in the prescribed manner and together with the prescribed non‐ refundable application fee.
An application for renewal of a mining right must state the reasons and the period for which the renewal is required be accompanied by a report reflecting the extent of compliance with the requirements of the approved environmental management programme, the rehabilitation to be completed and the estimated cost thereof and include a detailed mining work programme for the renewal period. The Minister must grant the renewal of a mining right if the application complies with subsections (1) and (2) and the holder of the mining right has complied with the‐ a) Terms and conditions of the mining right and is not in contravention of any relevant provision of the Act or any other law; b) The mining work programme; c) Requirements of the prescribed social and labour plan; and d) Requirements of the approved environmental management programme. A mining right may be renewed for further periods, each of which may not exceed 30 years at time. A mining right in respect of which an application for renewal has been lodged shall despite its expiry date remain in force until such time as such application has been granted or refused.
Rights and obligations of holder of mining right
In addition to the rights referred to in section 5, the holder of a mining right has, subject to section 24, the exclusive right to apply for and be granted a renewal of the mining right in respect of the mineral and mining area inquestion. The holder of a mining right must‐ a) Lodge such right for registration at the Mining Titles Office within 30 days of the date on which the right‐ a. .Becomes effective in terms of section 23 (5); or b. Is renewed in terms of section 24 (3); b) Commence with mining operations within one year from the date on which the mining right becomes effective in terms of section 23 (5) or such extended period as the Minister may authorise; c) Actively conduct mining in accordance with the mining work programme; d) Comply with the relevant provisions of this Act, any other relevant law and the terms and conditions of the mining right; e) Comply with the requirements of the approved environmental management programme; f) Comply with the requirements of the prescribed social and labour plan; g) Pay the State royalties; and h) Submit the prescribed annual report, detailing the extent of the holder's compliance, the charter contemplated in section 100 and the social and labour plan.
The Minister may initiate or prescribe incentives to promote the beneficiation of minerals in the Republic. If the Minister, acting on advice of the Board and after consultation with the Minister of Trade and Industry,finds that a particular mineral can be beneficiated economically in the Republic, the Minister may promote such beneficiation subject to such terms and conditions as the Minister may determine. Any person who intends to beneficiate any mineral mined in the Republic outside the Republic may only do so after written notice and in consultation with the Minister.
Application for, issuing and duration of mining permit
A mining permit may only be issued if‐ a. The mineral in question can be mined optimally within a period of two years; and b. The mining area in question does not exceed 1,5 hectares in extent. Any person who wishes to apply to the Minister for a mining permit must lodge the application at the office of the Regional Manager in whose region the land is situated in the prescribed manner and together with the prescribed non‐refundable application fee. The Regional Manager must accept an application for a mining permit if the requirements contemplated in subsection (2) are met and no other person holds a prospecting right, mining right, mining permit or retention permit for the same mineral and land. If the application does not comply with the requirements of this section, the Regional Manager will notify the applicant in writing of that fact within 14 days of the receipt of the application and return the application to the applicant but if the Regional Manager accepts the application, the Regional Manager must, within 14 days from the date of acceptance, notify the applicant in writing‐ a. To submit an environmental management plan; and b. To notify in writing and consult with the land owner and lawful occupier and any other affected parties and submit the result of the said consultation within 30 days from the date of the notice. The Minister must issue a mining permit if‐ a. The requirements contemplated in subsection (1) are satisfied; and b. The applicant has submitted the environmental management plan. The holder of a mining permit‐ a. May enter the land to which such permit relates together with his or her employees, and may bring onto that land any plant, machinery or equipment and build, construct or lay down any surface or underground infrastructure which may be required for purposes of mining; b. Subject to the National Water Act, 1998 (Act 36 of 1998), may use water from any natural spring, lake, river or stream situated on, or flowing through, such land or from any excavation previously made and used for prospecting or mining purposes, as the case may be, or sink a well or borehole required for use relating to prospecting or mining, as the case may be, on such land; and c. Must pay the State royalties;
d. May mine, for his or her own account on or under that mining area for the mineral for which such permit relates. A mining permit is valid for the period specified in the permit, which may not exceed a period of two years, and may be renewed for three periods each of which may not exceed one year, it may not be transferred, ceded, let, sublet, alienated or disposed of, in any way whatsoever, but may be encumbered or mortgaged only for the purpose of funding or financing of the mining project in question with the Minister's consent.
Information and data in respect of mining or processing of minerals
The holder of a mining right or mining permit must, at its registered office or place of business, keep proper records of mining activities and proper financial records in connection with the mining activities. The holder of a mining right or mining permit, or the manager of any processing plant operating separately from a mine, must submit to the Director‐General‐ a. Prescribed monthly returns with accurate and correct information and data; and b. An audited annual financial report or financial statements reflecting the balance sheet and profit and loss account; c. An annual report detailing the extent of the holder's compliance with the provisions of section 2 (2) No information or data may be disclosed to any person if it contains information or data supplied in confidence
Application for retention permit
Any holder of a prospecting right who wishes to apply to the Minister for a retention permit must lodge the application in the prescribed manner with the prescribed non‐refundable application fee at the office of the Regional Manager in whose region the land is situated, in the application the reasons and period for which the retention permit is requested must be stated and submit a report reflecting the extent of compliance with the section 32 (1). The Regional Manager must accept an application for a retention permit, if‐ a. The requirements contemplated in subsection (1) are met; and b. The applicant is the holder of the prospecting right in question.
Issuing and duration of retention permit
The Minister may issue a retention permit if the holder of the prospecting right has a. Prospected on the land to which the application relates; b. Completed the prospecting activities and a feasibility study; c. Established the existence of a mineral reserve which has mining potential; d. Studied the market and found that the mining of the mineral in question would be uneconomical due to prevailing market conditions; and e. Complied with the relevant provisions of this Act, any other relevant law and the terms and conditions stipulated in the prospecting right.
A retention permit issued under subsection (1) suspends the terms and conditions of the prospecting right held in respect of the land to which the retention permit relates and if the prospecting period has not expired, the duration of the prospecting right in question runs concurrently with that of the retention permit besides this the holder must also have the environmental management programme approved in respect of the prospecting right remains in force as if the prospecting right had not lapsed. A retention permit is valid for the period specified in the permit, which period may not exceed three years.
Refusal of application for retention permit
1. The Minister may refuse to issue a retention permit if, after having regard to the information submitted under section 32 (1) and research conducted by the Board at the request of the Minister, it is established that‐ 2. The mineral to which the application relates can be mined profitably; 3. The applicant has not completed the prospecting operations and feasibility study in relation thereto; or 4. The issuing of such permit will‐ a. Result in an exclusionary act; b. Prevent fair competition; or c. Result in the concentration of mineral in the hands of the applicant.
Application for renewal of retention permit
An application for the renewal of a retention permit must be lodged in the same manner as an application fo r a retention permit contemplated in section 31 (1) and must include‐ a. An updated report of the circumstances which prevailed at the time of issuing of the retention permit; and b. The period and reasons for the renewal being sought. A retention permit may only be renewed if‐ a. The holder has complied with the relevant provisions of this Act, any other relevant law and the terms and conditions of the retention permit; and b. The market conditions contemplated in section 32 (1) (d) still prevail. A retention permit may be renewed once for a period not exceeding two years.
Rights and obligations of holder of retention permit
Subject to subsection (2), the holder of a retention permit has the exclusive right to be granted a mining right in respect of the retention area and mineral in question. The holder of a retention permit must‐ 1. Give effect to the approved environmental management programme and pay the prescribed retention fees; and
2. submit a six monthly progress report to the Regional Manager indicating‐ a. The prevailing market conditions, the effect thereof and the need to hold such retention permit over the mineral and land in question; and b. Efforts undertaken by such holder to ensure that mining operations commence before the expiry period referred to in section 32 (4) or 34 (3), as the case may be.
Retention permit not transferable
A retention permit may not be transferred, ceded, let, sub‐let, alienated, disposed of, mortgaged or encumbered in any way whatsoever.
1. The principles set out in section 2 of the National Environmental Management Act, 1998 (Act 107 of 1998): a. Apply to all prospecting and mining operations, as the case may be, and any matter relating to such operation; and b. Serve as guidelines for the interpretation, administration and implementation of the environmental requirements of this Act. 2. Any prospecting or mining operation must be conducted in accordance with generally accepted principles of sustainable development by integrating social, economic and environmental factors into the planning and implementation of prospecting and mining projects in order to ensure that exploitation of mineral resources serves present and future generations.
Integrated environmental management and responsibility to remedy
The holder of a reconnaissance permission, prospecting right, mining right, mining permit or retention permit : 1. Must at all times give effect to the general objectives of integrated environmental management laid down in Chapter 5 of the National Environmental Management Act, 1998 (Act 107 of 1998); 2. Must consider, investigate, assess and communicate the impact of his or her prospecting or mining on the environment as contemplated in section 24 (7) of the National Environmental Management Act, 1998 (Act 107 of 1998); 3. Must manage all environmental impacts‐ a. In accordance with his or her environmental management plan or approved environmental management programme, where appropriate; and b. As an integral part of the reconnaissance, prospecting or mining operation, unless the Minister directs otherwise; 4. Must as far as it is reasonably practicable, rehabilitate the environment affected by the prospecting or mining operations to its natural or predetermined state or to a land use which conforms to the generally accepted principle of sustainable development; and
5. Is responsible for any environmental damage, pollution or ecological degradation as a result of his or her reconnaissance prospecting or mining operations and which may occur inside and outside the boundaries of the area to which such right, permit or permission relates. Notwithstanding the Companies Act, 1973 (Act 61 of 1973), or the Close Corporations Act, 1984 (Act 69 of 1984), the directors of a company or members of a close corporation are jointly and severally liable for any unacceptable negative impact on the environment, including damage, degradation or pollution advertently or inadvertently caused by the company or close corporation which they represent or represented.
Environmental management programme and environmental management plan
Every person who has applied for a mining right in terms of section 22 must conduct an environmental impact assessment and submit an environmental management programme within 180 days of the date on which he or she is notified by the Regional Manager to do so. Any person who applies for a reconnaissance permission, prospecting right or mining permit must submit an environmental management plan as prescribed. An applicant who prepares an environmental management programme or an environmental management plan must‐ a. Establish baseline information concerning the affected environment to determine protection, remedial measures and environmental management objectives; b. Investigate, assess and evaluate the impact of his or her proposed prospecting or mining operations on‐ i. ii. iii. The environment; The socio‐economic conditions of any person who might be directly affected by the prospecting or mining operation; and Any national estate referred to in section 3 (2) of the National Heritage Resources Act, 1999 (Act 25 of 1999), with the exception of the national estate contemplated in section 3 (2) (i) (vi) and (vii) of that Act;
c. Develop an environmental awareness plan describing the manner in which the applicant intends to inform his or her employees of any environmental risks which may result from their work and the manner in which the risks must be dealt with in order to avoid pollution or the degradation of the environment; and d. Describe the manner in which he or she intends to‐ i. ii. iii. Modify, remedy, control or stop any action, activity or process which causes pollution or environmental degradation; Contain or remedy the cause of pollution or degradation and migration of pollutants; and Comply with any prescribed waste standard or management standards or practices.
Subject to paragraph (b), the Minister must, within 120 days from the lodgement of the environmental management programme or the environmental management plan, approve the same, if‐ i. It complies with the requirements of subsection (3);
The applicant has complied with section 41 (1); and The applicant has the capacity, or has provided for the capacity, to rehabilitate and manage negative impacts on the environment.
The Minister may not approve the environmental management programme or the environmental management plan unless he or she has considered‐ i. ii. Any recommendation by the Regional Mining Development and Environmental Committee; and The comments of any State department charged with the administration of any law which relates to matters affecting the environment.
The Minister may call for additional information from the person contemplated in subsection (1) or (2) and may direct that the environmental management programme or environmental management plan in question be adjusted in such way as the Minister may require. The Minister may at any time after he or she has approved an environmental management programme or environmental management plan and after consultation with the holder of the reconnaissance permission, prospecting right, mining right or mining permit concerned, approve an amended environmental management plan or environmental management programme. For the purposes of paragraph (a), subsection (4) applies with the necessary changes. The provisions of subsection (3) (b) (ii) and the subsection (3) (c) do not apply to the applications for reconnaissance permissions, prospecting rights or mining permits.
Financial provision for remediation of environmental damage
An applicant for a prospecting right, mining right or mining permit must, before the Minister approves the environmental management plan or environmental management programme in terms of section 39 (4), make the prescribed financial provision for the rehabilitation or management of negative environmental impacts. If the holder of a prospecting right, mining right or mining permit fails to rehabilitate or manage, or is unable to undertake such rehabilitation or to manage any negative impact on the environment, the Minister may, upon written notice to such holder, use all or part of the financial provision contemplated in subsection (1) to rehabilitate or manage the negative environmental impact in question. The holder of a prospecting right, mining right or mining permit must annually assess his or her environmental liability and increase his or her financial provision to the satisfaction of the Minister. If the Minister is not satisfied with the assessment and financial provision contemplated in this section, the Minister may appoint an independent assessor to conduct the assessment and determine the financial provision. The requirement to maintain and retain the financial provision remains in force until the Minister issues a certificate in terms of section 43 to such holder, but the Minister may retain such portion of the financial provision as may be required to rehabilitate the closed mining or prospecting operation in respect of latent or residual environmental impacts.
Management of residue stockpiles and residue deposits
Residue stockpiles and residue deposits must be managed in the prescribed manner on any site demarcated for that purpose in the environmental management plan or environmental management programme in question. No person may temporarily or permanently deposit any residue stockpile or residue deposit on any site other than on a site contemplated in subsection (1).
Issuing of a closure certificate
The holder of a prospecting right, mining right, retention permit or mining permit remains responsible for any environmental liability, pollution or ecological degradation, and the management thereof, until the Minister has issued a closure certificate to the holder concerned. On written application by the holder of a prospecting right, mining right or mining permit in the prescribed manner, the Minister may transfer such environmental liabilities and responsibilities as may be identified in the environmental management plan or the environmental management programme and any prescribed closure plan to a person with such qualifications as may be prescribed. The holder of a prospecting right, mining right, retention permit or mining permit or the person contemplated in subsection (2), as the case may be, must apply for a closure certificate upon‐ i. ii. iii. iv. The lapsing, abandonment or cancellation of the right or permit in question; Cessation of the prospecting or mining operation; The relinquishment of any portion of the prospecting of the land to which a right, permit or permission relate; or Completion of the prescribed closing plan to which a right, permit or permission relate.
An application for an closure certificate must be made to the Regional Manager in whose region the land in question is situated within 180 days of the occurrence of the lapsing, abandonment, cancellation, cessation, relinquishment or completion contemplated in subsection (3) and must be accompanied by the prescribed environmental risk report. No closure certificate may be issued unless the Chief Inspector and the Department of Water Affairs and Forestry have confirmed in writing that the provisions pertaining to health and safety and management of potential pollution to water resources have been addressed. When the Minister issues a certificate he or she must return such portion of the financial provision contemplated in section 41 as the Minister may deem appropriate to the holder of the prospecting right, mining right, retention permit or mining permit in question, but may retain any portion of such financial provision for latent and or residual environmental impact which may become known in the future.
Removal of buildings, structures and other objects
When a prospecting right, mining right, retention permit or mining permit lapses, is cancelled or is abandoned or when any prospecting or mining operation comes to an end, the holder of any such right or permit may not demolish or remove any building, structure or object‐ i. ii. iii. Which may not be demolished or removed in terms of any other law; Which has been identified in writing by the Minister for purposes of this section; or Which is to be retained in terms of an agreement between the holder and the owner or occupier of the land, which agreement has been approved by the Minister in writing.
The provision of subsection (1) does not apply to bona fide mining equipment, which may be removed.
Restriction or prohibition of prospecting and mining on certain land
Subject to section 20 of the National Parks Act, 1976 (Act 57 of 1976), and subsection (2), no reconnaissance permission, prospecting right, mining right or mining permit may be issued in respect of‐ i. ii. iii. iv. Land comprising a residential area; Any public road, railway or cemetery; Any land being used for public or government purposes or reserved in terms of any other law; or Areas identified by the Minister by notice in the Gazette in terms of section 49.
A reconnaissance permission, prospecting right, mining right or mining permit may be issued in respect of the land contemplated in subsection (1) if the Minister is satisfied that‐ a. Having regard to the sustainable development of the mineral resources involved and the national interest, it is desirable to issue it; b. The reconnaissance, prospecting or mining will take place within the framework of national environmental management policies, norms and standards; and c. The granting of such rights or permits will not detrimentally affect the interests of any holder of a prospecting right or mining right.
Minister's power to prohibit or restrict prospecting or mining
Subject to subsection (2), the Minister may, after inviting representations from relevant stakeholders, from time to time by notice in the Gazette, having regard to the national interest and the need to promote the sustainable development of the nation's mineral resources, prohibit or restrict the granting of any reconnaissance permission, prospecting right, mining right or mining permit in respect of land identified by the Minister for such period and on such terms and conditions as the Minister may determine. A notice contemplated in subsection (1) does not affect prospecting or mining in, on or under land which, on the date of the notice, is the subject of a reconnaissance permission, prospecting right, a mining right, a retention permit or a mining permit. The Minister may from time to time by notice in the Gazette‐ a. Lift a prohibition or restriction made in terms of subsection (1) if the circumstances which caused the Minister so to prohibit or restrict no longer exist; or b. Amend the period, term or condition applicable to any prohibition or restriction made in terms of subsection (1) if the circumstances which caused the Minister so to prohibit or restrict have changed.
Minister may investigate occurrence, nature and extent of mineral resources
The Minister may cause an investigation to be conducted on any land to establish if any mineral or geological formation occurs in, on or under such land and, if so, to establish the nature and extent thereof. The Minister must compensate the owner of the land in question if any loss or damage is caused during an investigation contemplated in subsection (1). The Minister and the owner of the land may agree upon the compensation to be paid. If no agreement is reached, the amount of
compensation must be fixed by arbitration in terms of the Arbitration Act, 1965 (Act 42 of 1965), or by a competent court. No investigation may be conducted under subsection (1) unless‐ a. The Minister has published a notice in the Gazette‐ i. ii. Indicating an intention to conduct the investigation; Inviting written comments on the proposed investigation, specifying an address to which and the date before which comments must be submitted; and Calling on the owner, occupier or person in control of such land to furnish the Minister with his or her particulars, if such owner, occupier or person is not known to the Minister;
b. The Minister has considered any comments received; and c. A period of 30 days has lapsed after the Minister published the notice. No person may for the purposes of an investigation contemplated in subsection (1) enter upon land unless the owner, occupier or person in control of such land has been notified in writing of the intention to enter and to conduct the investigation. If the owner, occupier or person in control of the land in question cannot be traced, a copy of the notice contemplated in paragraph (a) must be affixed at a prominent place on the land before the investigation may be conducted. Any investigation in terms of this section must be conducted in a manner which limits or prevents any detrimental effect to the land and the environment.
Optimal mining of mineral resources
Subject to subsection (2), the Board may recommend to the Minister to direct the holder of a mining right to take corrective measures if the Board establishes that the minerals are not being mined optimally in accordance with the mining work programme or that a continuation of such practice will detrimentally affect the objects referred to in section 2(f). Before making the recommendation, the Board must consider whether the technical and financial resources of the holder of the mining right in question and the prevailing market conditions justify such recommendation. If the Minister agrees with the recommendation, he or she must, within 30 days from date of receipt of the recommendation of the Board, in writing notify the holder that he or she must take such corrective measures as may be set out in the notice and must remedy the position within the period mentioned in the notice. The Minister must afford the holder the opportunity to make representations in relation to the Board's findings within 60 days from the date of the notice and must point out that non‐compliance with the notice might result in suspension or cancellation of the mining right. The Minister may, on the recommendation of the Board, suspend or cancel a mining right if‐ a. The holder of that mining right fails to comply with a notice contemplated in subsection (3); or b. Having regard to any representations by the holder, the Minister is convinced that any act or omission by the holder justifies the suspension or cancellation of the right.
The Minister may, on the recommendation of the Board, lift the suspension of a mining right if the holder in question‐ a. complies with the notice contemplated in subsection (3); or b. furnishes compelling reasons for the lifting of the suspension.
Notice of profitability and curtailment of mining operations affecting employment
The holder of a mining right must, after consultation with any registered trade union or affected employees or their nominated representatives where there is no such trade union, notify the Board in the prescribed manner‐ (a) Where prevailing economic conditions cause the profit to revenue ratio of the relevant mine to be less than six per cent on average for a continuous period of 12 months; or (b) If any mining operation is to be scaled down or to cease with the possible effect that 10 per cent or more of the labour force or more than 500 employees, whichever is the lesser, are likely to be retrenched in any 12‐month period. The Board must, after consultation with the relevant holder, investigate‐ a. The circumstances referred to in subsection (1); and b. The socio‐economic and labour implications thereof and make recommendations to the Minister. The Minister may, on the recommendation of the Board and after consultation with the Minister of Labour and any registered trade union or affected persons or their nominated representatives where there is no such trade union, direct in writing that the holder of the mining right in question take such corrective measures subject to such terms and conditions as the Minister may determine. The holder of the mining right must comply with the directive and confirm in writing that the corrective measures have been taken. If the directives contemplated in paragraph (a) are not complied with, the Minister may provide assistance to or apply to a court for judicial management of the mining operation.
Use of land surface rights contrary to objects of Act
Subject to subsection (2), any person who intends to use the surface of any land in any way which may be contrary to any object of this Act or which is likely to impede any such object must apply to the Minister for approval in the prescribed manner. Subsection (1) does not apply to‐ (a) farming or any use incidental thereto; or (b) the use of any land which lies within an approved town‐planning scheme which has applied for and obtained approval in terms of subsection (1); or (c) any other use which the Minister may determine by notice in the Gazette. Despite subsection (1), the Minister may of his or her own volition cause an investigation to be conducted if it is alleged that a person intends to use the surface of any land in any way that could result in the mining of mineral resources being detrimentally affected. When an investigation is conducted in terms of subsection (3), the Regional Manager must‐
(a) by written notice served on the person concerned, notify the person of the allegation and of the Minister's intention to issue a directive to take corrective measures; (b) set out the measures to be taken in order to rectify the matter; and (c) offer that person the opportunity to respond within 30 days. After considering the results of the investigation contemplated in subsection (3), and any representations contemplated in subsection (4) (c), the Minister may direct the person concerned to take the necessary corrective measures within a period specified in the directive.
Compensation payable under certain circumstances
The holder of a reconnaissance permission, prospecting right, mining right or mining permit must notify the relevant Regional Manager if that holder is prevented from commencing or conducting any reconnaissance, prospecting or mining operations because the owner or the lawful occupier of the land in question‐ (a) Refuses to allow such holder to enter the land; (b) Places unreasonable demands in return for access to the land; or (c) Cannot be found in order to apply for access. The Regional Manager must, within 14 days from the date of the notice referred to in subsection (1)‐ (a) call upon the owner or lawful occupier of the land to make representations regarding the issues raised by the holder of the reconnaissance permission, prospecting right, mining right or mining permit; (b) inform that owner or occupier of the rights of the holder of a right, permit or permission in terms of this Act; (c) set out the provisions of this Act which such owner or occupier is contravening; and (d) inform that owner or occupier of the steps which may be taken, should he or she persist in contravening the provisions. If the Regional Manager, after having considered the issues raised by the holder under subsection (1) and any written representations by the owner or the lawful occupier of the land, concludes that the owner or occupier has suffered or is likely to suffer loss or damage as a result of the reconnaissance, prospecting or mining operations, he or she must request the parties concerned to endeavour to reach an agreement for the payment of compensation for such loss or damage. If the parties fail to reach an agreement, compensation must be determined by arbitration in accordance with the Arbitration Act, 1965 (Act 42 of 1965), or by a competent court. If the Regional Manager, having considered the issues raised by the holder under subsection (1) and any representations by the owner or occupier of land and any written recommendation by the Regional Mining Development and Environmental Committee, concludes that any further negotiation may detrimentally affect the objects of this Act referred to in section 2 (c), (d), (f) or (g), the Regional Manager may recommend to the Minister that such land be expropriated in terms of section 55. If the Regional Manager determines that the failure of the parties to reach an agreement
or to resolve the dispute is due to the fault of the holder of the reconnaissance permission, prospecting right, mining right or mining permit, the Regional Manager may in writing prohibit such holder from commencing or continuing with prospecting or mining operations on the land in question until such time as the dispute has been resolved by arbitration or by a competent court. The owner or lawful occupier of land on which reconnaissance, prospecting or mining operations will be conducted must notify the relevant Regional Manager if that owner or occupier has suffered or is likely to suffer any loss or damage as a result of the prospecting or mining operation, in which case this section applies with the changes required by the context.
Minister's power to expropriate property for purpose of prospecting or mining
If it is necessary for the achievement of the objects referred to in section 2 (d), (e), (f), (g) and (h) the Minister may, in accordance with section 25 (2) and (3) of the Constitution, expropriate any land or any right therein and pay compensation in respect thereof. Sections 6, 7 and 9 (1) of the Expropriation Act, 1975 (Act 63 of 1975), apply to any expropriation in terms of this Act. Any reference in the sections referred to in paragraph (a) to 'the Minister' must be construed as being a reference to the Minister defined in this Act.
Lapsing of right, permit, permission and licence
Any right, permit, permission or licence granted or issued in terms of this Act shall lapse, whenever‐ (a) it expires; (b) the holder thereof is deceased and there are no successors in title; (c) a company or close corporation is deregistered in terms of the relevant Acts and no application has been made or was made to the Minister for the consent in terms of section 11 or such permission has been refused; (d) save for cases referred to in section 11 (3), the holder is liquidated or sequestrated; (e) it is cancelled in terms of section 47; or (f) It is abandoned.
Registration of water use is required in terms of section 26 (1)(c) and 34(2) of the National Water Act (Act 36 of 1998). There are several reasons why water users are required to register their water use with the Department. Most important are: 1. To manage and control water resources for planning and development 2. To protect water resources against over‐use, damage and impacts 3. To ensure fair allocation of water among users. Registration is required in terms of a Notice issued under the Registration Regulations, or under a General Authorisation published in the Government Gazette. As per National water Act following must be registered to use water: 1. Individuals – such as farmers, small‐holders, land‐owners or lessees 2. Communities – such as communal enterprises, traditional farmers groups 3. National or Provincial Government 4. Companies and businesses – including partnerships, public companies, private companies, companies not for gain, guarantee companies, foreign companies, incorporated private companies, closed corporations etc. 5. Water User Associations. 6. Water Services Providers, including Water Boards and Local Government. So as per the subregulation (4) discussed above water use license is needed. Forms to register are obtainable from any office of the Department of Water Affairs and Forestry (Department). To register the water use, completed registration forms have to be submitted to the Department. Registration is free of charge if application is submitted to register within the time period stated in the Notice. If delayed unnecessarily, then applicant may have to pay for the processing of registration forms. Registration certificates are issued free of charge for the first certificate, and for valid amendments to registration details. Registration is not an entitlement to use water. Issuing of registration certificate is not a license to use water. Only a water use license authorizes to use water. Registration can be seen as the first step in establishing one as a water user with the Department. Definitions regarding various types of proposed water uses are given in the National Water Act. A General Authorisation is an authorization to use water without a license, provided that the water use is within the limits and conditions set out in the General Authorisation. General authorizations are reviewed every 5 years. General Authorisations apply only to NEW water use that took place after 1 October 1999 when the Act was fully promulgated. This means that General Authorisations are not retro‐active or “back‐dated” Registration forms consist of Part 1 and Part 2 as well Supplementary forms.
1. Part 1 forms – information on the water user and the property where the water use takes place. 2. Part 2 forms – information about the water use. 3. Supplementary forms – additional information that may be needed. One Part 1 form and one or more Part 2 forms must be completed to register a water use. The numbers of the various kinds of registration forms are provided below • • • DW 756 DW 757 DW 758 : : : Individual Water Service Provider Company, Business or Partnership; National or Provincial
Government • • • • • • • DW 759 DW 760 DW 761 DW 762 DW 763 DW 764 DW 765 : : : : : : : Water User Association Taking water from a water resource Storing water Storing water – Dam Safety Registration Impeding or diverting the flow of water in a watercourse Engaging in a Stream Flow Reduction Activity Engaging in a controlled activity: Irrigation of any land with waste
or water containing waste generated through any industrial activity or by a waterwork • DW 766 : Discharging waste or water containing waste into a water
resource through a pipe, canal, sewer, sea outfall or other conduit • DW 767 : Disposing of waste in a manner which may detrimentally impact
on a water resource • DW 780 : Disposing in any manner of water which contains waste from, or
which has been heated in, any industrial or power generation process • • DW 768 DW 805 : : Altering the bed, banks, course or characteristics of a watercourse Removing, discharging or disposing of water found underground if
it is necessary for the efficient continuation of an activity or for the safety of people • DW 806 : Using water for recreational purposes
Supplementary Form Numbers
DW 901 DW 902 DW 903
Property where water use occurs Details of property owner Compliance management information: Actual/Monitored Waste
Discharge Details applicable for sections 21 (f) and (h) • DW 904 : Compliance management information: Actual/Monitored Waste
Discharge Details applicable for sections 21 (e) and (g) • DW 905 : Supporting technical information for waste disposal facilities (21g
water uses) Both of the Forms will be analyzed by the Department of Water Affairs and Forestry and if they found them appropriate then will allot a license.
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