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Department of Minerals and Energy

Department of Minerals and Energy Joint Briefing PC :Minerals and Energy and Environmental Affairs and Tourism 13 May 2008 Minerals and Petroleum Resources Amendment Bill [ B10B-2007]. The Team. Ms N Zikalala: Deputy Director-General: Mineral Policy and Promotion

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Department of Minerals and Energy

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  1. Department of Minerals and Energy Joint Briefing PC :Minerals and Energy and Environmental Affairs and Tourism 13 May 2008 Minerals and Petroleum Resources Amendment Bill [B10B-2007].

  2. The Team • Ms N Zikalala: Deputy Director-General: Mineral Policy and Promotion • Ms L Mekwe: Acting Chief Director: Mineral and Mining Policy • Ms S Mudau: Deputy Director: Environment • Ms S Machinini: Deputy Director: Mineral Policy Development • Mr L Labuschagne: Acting Deputy Director: Environment

  3. Status of the MPRD Amendment Bill • 1.The Mineral and Petroleum Resources Development Amendment Bill [B10B-2007], was adopted by the Portfolio Committee for Minerals and Energy on 20th June 2007 and presented at the NCOP on the 22 July 2007. • 2. The amendments in the Bill provided for the following: • - Separation of powers between the Minister of Minerals and Energy, who is authorised to levy certain fees and the Minister of Finance, who must determine state royalties in terms of another Act of Parliament (the Mining Royalty Bill). • aligns with the definition and the level of beneficiation required for royalty and it offsets ownership in terms of the targets in the Mining Charter

  4. Status of the MPRD Amendment Bill, Cont… • The amendments in the Bill provided for the following: • Active participation of Historical Disadvantage South African in the mining industry in order to prevent the occurrence of fronting, share manipulation, dilution and exploitation of BEE. • Harmonisation of the MPRDA with the Mining Titles Registration Act, 1967 (Act No. 16 of 1967) as amended. • To increase the hectares for artisanal and small-scale miners from 1, 5 ha to 5 ha in order to make their mining operation economically viable.

  5. Status of the MPRD Amendment Bill, Cont… The amendments in the Bill provided for the following: - Promotion of foreign and local investments in the country by empowering the Council of Geoscience to be the custodian of all geological data and mining information in respect of the country’s mineral resources... - Strengthen themanner of consulting the landowner, lawful occupier and interested and affected parties through making a provision in the Regulation

  6. Status of the MPRD Amendment Bill, Cont… • The amendments in the Bill provided for the following: • Encourage beneficiation of minerals, by empowering the Minister to set the levels of beneficiation by regulation. • Ensuring that the holder of a mining right informs the Minister about possible retrenchments of employees and that the Minister through the Minerals and Mining Development Board, takes immediate corrective measures to mitigate the impact of such retrenchments. • Providing for the alignment of national norms and standards regarding environmental management with national environmental management policy.

  7. Status of the MPRD Amendment Bill, Cont… • The amendments in the Bill provided for the following: • Promoting co-operative governance in that the Regional Mining Development and Environmental Committee will be able to consider recommendations to the Minister on environmental objections received from other state departments and not only upon the application stage. • To facilitate mine closure where mines are • interconnected, integrated or pose cumulative • environmental impact. • To rectify certain omissions in the Transitional Chapter of the principal Act of existing old order rights, such as “mynpachten” and tributing agreements, old order mining rights, OP26 mining leases, sub-leases and rights.

  8. Status of the MPRD Amendment Bill, Cont… • 3. The Bill [B10B-2007] did not proceed further than the NCOP, as it was referred back to the Parliamentary Portfolio Committee on Minerals and Energy to afford the Department of Environmental Affairs and Tourism an opportunity to make submission on the Bill pertaining to the regulation of environmental management system. The matter was then referred to the Deputy President for consideration.. • 4. Following high-level meetings between the Deputy President and the Ministers of Minerals and Energy and of Environmental Affairs and Tourism, the three (3) framework criteria were agreed to achieve alignment of environmental management requirements in the MPRDA, 2002 and NEMA, 1998:

  9. Framework of the agreement between DEAT and DME • 1. One environmental management system be followed in South Africa. • The Minister of Minerals and Energy be the responsible authority implementing environmental matters in terms of NEMA, 1998, as it relates to prospecting, mining, exploration, production and related activities on a prospecting, mining, exploration and production area; and • 3. The Minister of Environmental Affairs and Tourism be the appeal authority on all environmental authorisations issued in terms of NEMA, 1998, by the Minister of Minerals and Energy

  10. Implementation of the agreement between DEAT and DME • It was agreed that the Minister of Environmental Affairs and Tourism be responsible for drafting and promulgating all environmental policy and legislation in terms of NEMA (and its Amendment Bill), and • 2. that the Minister of Minerals and Energy be responsible for implementing environmental policy and legislative requirements in terms of NEMA, 1998 and related specific environmental management legislation such as the NEMA Air Quality Act, NEMA Waste Management Bill and the NEMA Coastal Management Bill

  11. Implementation of the agreement between DEAT and DME, Cont… 3. Both DEAT and DME agreed to amend the NEMA, the National Environmental Management Amendment Bill and specific environmental Acts such as the NEMA Air Quality Act, the NEMA Waste Management Bill, the NEMA Coastal Management Bill and the MPRDA and its Amendment Bill. 4. All the environmental provisions in the MPRDA, 2002, its supporting Regulations and the MPRD Amendment Bill be repealed and be included in National Environmental Management Amendment Bill and that such amendments be contextualised in terms of the NEMA specific Acts or Bills.

  12. Implementation of the agreement between DEAT and DME, cont… • The timeframes in MPRDA, 2002 for the processing and approval of EIAs and EMPs be provided for in terms of the National Environmental Management Amendment Bill. • The transitional period for establishing the one environmental system is 18 months from the date of the last Bill to be enacted.

  13. Implementation of the agreement between DEAT and DME, cont… • In summary, the environmental amendments in the MPRD Amendment Bill include the following: • Inclusion of definitions of “environmental authorisation”, “environmental reports”, as defined and required in terms of NEMA, 1998. • Deletion of definitions of environmental management plans, programmes, financial provision. • A person who wishes to apply for any right or permit in MPRDA, 2002 must simultaneously apply for an environmental authorisation in terms of NEMA, 1998.

  14. Implementation of the agreement between DEAT and DME, cont… • In summary, the environmental amendments in the MPRD Amendment Bill include the following: • The existing timeframes for the submission and processing of environmental reports in the MPRDA, 2002 were adopted in MPRD Amendment Bill and this timeframes need to be adopted in the NEMA Amendment Bill. • The “environmental criteria” for the Minister in granting a right or issuing a permit in the MPRDA, 2002 “is when an environmental authorisation is issued”.

  15. Implementation of the agreement between DEAT and DME, cont… • In summary, the environmental amendments in the MPRD Amendment Bill include the following, cont…: • Specific sections regulating environmental management in MPRDA, 2002, i.e. • sections 38 (Integrated environmental management and responsibility to remedy), • 39 (Environmental management plans and programmes, • section 40 (consultation with State departments), • 41 (financial provision for remediation of environmental damage), • section 42 (management of residue stockpiles and deposits) were deleted from MPRDA and adopted in the NEMA Amendment Bill.

  16. Implementation of the agreement between DEAT and DME, cont… • In summary, the environmental amendments in the MPRD Amendment Bill include the following: • The following sections 38A and 38B were included as general provision on “environmental authorisations” providing clarity on the Minister of Minerals and Energy’s role and responsibilities in terms of NEMA, 1998 • The following sections have been retained in MPRD Amendment Bill with some amendment as these sections also include matters such as health and safety, social and labour issues etc. • - Sections 43 (Issuing of a closure certificate); • 45 (Minister’s power to recover costs in event of urgent remedial measures); and • 46 (Minister’s power to remedy environmental damage in certain areas)

  17. Way Forward • The MPRD Amendment Bill, including the above environmental amendments, was scrutinised by the office of the Chief State Law Advisors. • Recommended that Public hearing be conducted to allow • the Public to make presentation on both NEMA Amendment • Bill and MPRD Amendment Bill

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