Part I: Regulatory control in respect of prospecting rights, mining rights and retention permits
Subject to section 20 of the National Parks Act, 1976 (Act No. 57 of 1976), no person shall be granted a prospecting right or mining right -
- on land comprising a township or an urban area;
- in respect of a public road, a railway or a cemetery;
- on any land being used for public or government purposes or reserved in terms of any other law;
- on any land encumbered by a prospecting right or mining right or retention permit; and
- on those areas identified by the Minister from time to time by notice in the Government Gazette in terms of section 14,
unless the Minister is satisfied that -
- it is desirable, with regard to the sustainable development of the mineral resources involved and in the national interest;
- the development of the mineral resources will take place within the framework of the national environmental management policies, norms and standards; and
- the granting of such prospecting right or mining right will not detrimentally affect the interests of any holder of a prospecting right or mining right.
(1) Subject to the provisions of this Act, the Minister must approve the granting o f a prospecting right on such terms and conditions as he or she may determine.
(2) An application for a prospecting right must be lodged on the prescribed form together with the payment of a non refundable prescribed application fee at the office of the Director: Mineral Development and must contain -
- full particulars of the applicant;
- a plan indicating the co-ordinates and boundaries of the area applied for;
- an indication of the mineral, associated minerals or group of minerals for which the right is required;
- the period for which the right is required;
- a detailed prospecting work programme;
- details with documentary evidence to prove the applicant’s technical ability and financial resources that are readily available or how it will be provided for, to enable the applicant to carry out the prospecting activities and to mitigate and rehabilitate relevant environmental impacts satisfactorily;
- details of any mineral or group of minerals and the quantity thereof, which t he applicant intends to remove and dispose of during prospecting operations;
- a scoping report reflecting the expected environmental impacts;
- identification of interested and affected parties;
- details of consultation with affected and interested parties and the results thereof; and
- any other information, data or documentation that the Minister and the Director: Mineral Development may require in connection with the information required under paragraphs (a) to (k).
(3) Subject to the provisions of section 62(1) and (2), the Director: Mineral Development shall not consider any application for a prospecting right if -
- such application does not comply with the provisions of subsection (2);
- another person holds a prospecting or mining right or retention permit for the same mineral or group of minerals and area;
- an application for a prospecting right or mining right for the same mineral and area has already been approved in terms of sections 30 and 42; or
- in the opinion of the Chief Inspector, the applicant does not have the ability or cannot make the necessary provision to prospect in a healthy and safe manner.
(4) The opinion contemplated in subsection 3(d) must be provided to the Director: Mineral Development within 7 days from the date on which the request for such an opinion has been received by the Chief Inspector.
(5) If an application is not accepted or considered for the reasons referred to in subsection (3), the Director: Mineral Development must inform the applicant accordingly in writing.
(1) After accepting of an application for a prospecting right and with due regard to section 26(3) the Director: Mineral Development must cause to be display ed at the office of the said Director: Mineral Development and in a public building in the district in which the land concerned is situated, a notice in the prescribed manner -
- making it known that an application for prospecting right was lodged in respect of the land concerned; and
- calling upon any person who wishes to object, to furnish his or her objections and the grounds thereof, supported by a sworn or solemnly affirmed declaration in writing and such documents as he or she may be able to submit, to the said Director: Mineral Development within a period of fourteen (14) days after the expiry of the period referred to in the said notice.
(2) Any objection lodged in terms of subsection 1(b) must be in writing and must set out clearly and concisely the facts upon which the objection is based.
(3) If, the Director: Mineral Development, with due regard to the information submitted in terms of section 26(2), is of the opinion that any further notice will be necessary to ensure that interested an d affected parties will receive adequate notice, he or she must give such further notice as may be appropriate in the circumstance, and which may include -
- a notice in the Provincial Gazette;
- a notice in a newspaper or any other news medium cove ring the district in which the land concerned is situated; or
- the sending of a copy of the notice referred to in subsection (1) to any specific interested and affected party.
(4) Upon receipt of an objection, lodged as a result of any notice given in terms of this section, the Director: Mineral Development must convene a hearing in terms of section 28.
(1) If the Director: Mineral Development has decided to convene a hearing in terms of section 27(4 ), he or she must constitute a forum where such objection is to be heard in order to -
- hear the objection; and
- address the issues raised.
(2) The Director: Mineral Development must determine the place, date, time and duration of the hearing contemplated in subsection (1).
(1) The Director: Mineral Development must after considering an application for prospecting rights, forward to the Director-General for his or her consideration a submission containing the outcome of any hearing, if any, held in terms of section 28 and the Director: Mineral Development’s recommendation for approval or refusal of the prospecting right.
(2) The Director-General must after considering a submission in term s of subsection (1) forward to the Minister his or her recommendation for the approval or refusal of the prospecting right.
(3) Subject to subsection (4), any recommendation for approval in terms of subsection (1) and (2) must contain the particulars of the terms and conditions under which the prospecting right is to be granted in terms of section 32(1).
(4) The approval by the Minister in terms of subsection (3) must be subject to the approval of the relevant environmental management programme in term s of section 67(3)(b).
(5) Should any environmental management programme not be approved, such a decision together with the reasons therefore must be conveyed to the Minister to enable him or her to withdraw the approval of the prospecting right.
The Minister must, subject to the provisions of this Act, approve the granting of a prospecting right provided that he or she is satisfied -
- with the prospecting method in which the applicant intends to search for such mineral or group of minerals;
- that such applicant has, or has sufficiently provided for, the necessary technical ability and financial resources to conduct the prospecting activities and to mitigate or rehabilitate any environmental impacts which will be generated by the intended prospecting activities satisfactorily; and
- that the estimated expenditure for such prospecting activities are compatible with the submitted work programme.
(1) The Minister must refuse to approve the granting of prospecting right if in his or her opinion -
- an applicant does not comply with the provisions of this Act;
- the intended operation will cause unacceptable environmental impacts;
- an applicant or any director or member of any applicant who, with respect to a previous or existing prospecting or mining right in respect of which such applicant, director or member is or was involved, has been advised in writing of a contravention of the provisions of this Act or any other legislation repealed by this Act and he or she has failed to remedy such contravention; or
- the granting of the prospecting right will not be in the national interest.
(1) Upon receipt of the Minister’s approval in terms of section 30 to grant a prospecting right and after approval of the Environmental Management Programme, the Director: Mineral Development must grant the prospecting right.
(2) If the Minister refuses to approve the granting of a prospecting right in terms of section 31, the Director: Mineral Development must inform the applicant in writing accordingly.
(1) Subject to t he provisions of this Act, a prospecting right is valid for the period as may be stipulated therein and such period may not exceed 5 years.
(2) Notwithstanding the provisions of subsection (1) and subject to section 34 the Director: Mineral Development ma y approve the renewal of a prospecting right for a further period not exceeding 3 years.
(3) Notwithstanding the provisions of subsection (1) and (2) and subject to section 34, the Minister may approve the granting of a prospecting right or the renewal thereof for longer periods.
(1) Subject to the provisions of this Act, the holder of a prospecting right may at any time but not later than ninety days before the expiry of such right, apply for the renewal of a prospecting right.
(2) Any application for renewal of a prospecting right must-
- be lodged with the Director: Mineral Development on a prescribed form together with the payment of a non-refundable prescribed fee;
- state the period for which a renewal is needed;
- give reasons as to why a renewal is required;
- be accompanied by a report reflecting the results and interpretation of completed prospecting activities and the costs thereof;
- be accompanied by a report reflecting the extent of environmental rehabilitation conducted and completed thus far and the costs thereof; and
- include a detailed prospecting work programme for the renewal period.
(1) An application for the renewal of a prospecting right must be refused by the Director: Mineral Development if the holder thereof -
- has not complied with the terms and conditions of the prospecting right granted in terms of section 32;
- has not complied with the prospecting work programme in respect of which such right was granted;
- has not complied with the requirement s of the approved environmental management programme;
- is in contravention of any provision of this Act; and
- does not comply with the requirements of section 34;
(2) The renewal of a prospecting right must be refused by the Minister if -
- in his or her opinion, the renewal thereof will result in the hoarding or lock-up of mineral resources; or
- he or she is not satisfied with the reasons given in terms of section 34(2)(c).
(1) The holder of a prospecting right must, subject to the provisions of this Act-
- commence with the prospecting activities within thirty (30) days from the date on which the right was granted;
- continuously and actively conduct prospecting operations in accordance with the prospecting work programme;
- comply with the terms and conditions of the prospecting right;
- comply with the requirements of the approved environmental management programme;
- pay the prescribed prospecting fees to the State; and
- pay the prescribed royalties to the State in respect of any mineral or group of minerals removed and disposed of in terms of section 37(b).
(2) Subject to the approval of the Director: Mineral Development, the holder of a prospecting right may relinquish any portion or portions of the prospecting area in respect of such right, provided the prospecting right is amended accordingly by the Director: Mineral Development.
(3) Upon relinquishment of such portion, all the provisions and requirements of this Act must be complied with, in so far as they relate to the termination of a prospecting right in any manner whatsoever.
The holder of a prospecting right has, subject to the provisions of this Act-
- the exclusive right to apply for a mining right over a portion or portions of the area which forms the subject of such prospecting right and for the same mineral or group of minerals in respect of which the prospecting right is held: Provided that such application is lodged in accordance with section 38 of this Act and not later than ninety days before the expiry of the prospecting right; and
- the right to remove and dispose of any mineral or group of minerals in respect of which the prospecting right is held and which are found during prospecting operations: Provided that the extent of such removal and disposal is in accordance with the terms and conditions of the prospecting right.
(1) Subject to the provisions of this Act, the Minister must, approve the granting of a mining right, on such terms and conditions as he or she may determine.
(2) An application for a mining right must be lodged on the prescribed form together with the payment of a non refundable prescribed application fee at the office of the Director: Mineral Development and must contain -
- full particulars of the applicant;
- a plan indicating the co-ordinates and boundaries of the area applied for;
- an indication of the mineral, associated minerals or group of minerals for which the right is required;
- the period for which the right is required;
- a business plan comprising of –
- a comprehensive geological report with details of the mineral resources, and reserves as determined by the geological study and feasibility study in respect of the area applied for;
- a comprehensive technical and feasibility report with details of the mining method, capacity of production and scale of operations, mineral extraction, processing and treating, mineral beneficiation, infrastructure requirements as well as details of marketing arrangements for the sale of such minerals;
- a detailed forecast of capital requirements, sales revenues, operating costs, environmental management and remediation costs, environmental management programme financial guarantees, mine safety and health costs and other costs presented in a cashflow format in respect of the period required for mining operations; and
- details with documentary evidence to prove the applicant’s technical ability and financial resources, or the scheme for obtaining such ability and resources and capital requirements, that will enable the applicant to conduct the mining operations effectively;
- a social plan containing details of the socio-economic impact of the proposed mining project, as well as the measures to remedy any negative socio-economic impacts during the life of the mine and after closure.
- a scoping report reflecting the expected environmental impacts;
- identification of interested and affected parties;
- details of consultation with affected and interested parties and the results thereof; and
- any other information or documentation which the Director: Mineral Development may require in connection with the information required in terms of this subsection.
(3) Subject to the provisions of section 62(1) and (2), the Director: Mineral Development shall not consider any application for a mining right if -
- such application does not comply with the provisions of subsection (2);
- another person holds a prospecting right or mining right or retention permit for the same mineral or group of minerals and area;
- an application for a prospecting right or mining right for the same mineral and area has already been approved in terms of sections 30 and 42; or
- in the opinion of the Chief Inspector, the applicant does not have the ability or cannot make the necessary provision to mine in a healthy and safe manner.
(4) The opinion contemplated in subsection (3)(d) must be provided to the Director: Mineral Development within 7 days from the date on which the request for such an opinion was received by the Chief Inspector, the Director: Mineral Development must inform the applicant accordingly in writing.
(5) If an application is not accepted or considered for the reasons referred to in subsection (3), the Director: Mineral Development must inform the applicant accordingly in writing.
(1) After the acceptance of an application for a mining right with due regard to section 38(3) the Director: Mineral Development must cause to be displayed at his or her office and in a public building in the district in which the land concerned is situated, a notice in the prescribed manner -
- making it known that an application for a mining right was lodged in respect of the land concerned; and
- calling upon any person who wishes to object, to furnish his or her objections and the grounds thereof, supported by a sworn or solemnly affirmed declaration in writing and such documents as he or she may be able to submit, to the said Director: Mineral Development within a period of fourteen (14) days after the expiry of the period referred to i n the said notice.
(2) Any objection lodged in terms of subsection (1)(b) must be in writing and must set out clearly and concisely the facts upon which the objection is based.
(3) If, with due regard to the information submitted in terms of section 38(2 ), the Director: Mineral Development is of the opinion that any further notice will be necessary to ensure that interested and affected parties will receive adequate notice, he or she must give such further notice as may be appropriate in the circumstance, and which may include -
- a notice in the Provincial Gazette;
- a notice in a newspaper or any other news medium covering the district in which the land concerned is situated; or
- the sending of a copy of the notice referred to in subsection (1) to any specific interested and affected party.
(4) Upon receipt of a properly substantiated objection, lodged as result of any notice given in terms of this section, the Director: Mineral Development must convene a hearing in terms of section 40.
(1) If the Director: Mineral Development, decides to convene a hearing in terms of section 39(4), he or she must constitute a forum where such objection is to be heard in order to -
- hear the objection; and
- address the issues raised.
(2) The Director: Mineral Development must determine the place, date, time and duration of the hearing contemplated in subsection (1).
(1) The Director: Mineral Development must forward to the Director-General for his or her consideration a submission containing the Director: Mineral Development’s recommendation for approval or refusal of the mining right, and the outcome of any hearing held in terms of section 40.
(2) The Director-General must, after considering a submission in terms of subsection (1), forward to the Minister his or her recommendation for the approval or refusal o f the mining right.
(3) Subject to subsection (4), any recommendation for approval in terms of subsection (1) and (2) must contain the particulars of the terms and conditions under which the mining right is to be granted in terms of section 38(1).
(4) T he approval by the Minister in terms of subsection (3) must be subject to the approval of the relevant Environmental Management Programme in terms of 67(3)(b).
(5) Should any Environmental Management Programme not be approved, such a decision must be conveyed to the Minister to enable him or her to review the approval of the mining right.
(1) The Minister must, subject to the provisions of this Act, approve the granting of a mining right provided that he or she is satisfied -
- with the manner and scale in which the applicant intends to mine for mineral or group of minerals applied for;
- the applicant has, or has sufficiently provided for, the necessary technical abilities and financial resources to conduct the mining activities on a sustainable basis and mitigate or rehabilitate the environmental impacts generated by the mining activities satisfactorily; and
- with the scheme or arrangements whereby the applicant proposes to obtain capital requirements for mining.
(1) The Minister must refuse to approve the granting of a mining right if in his or her opinion-
- the application does not comply with the requirements and provisions of this Act;
- the intended mining operation will cause unacceptable environmental impacts;
- an applicant or director or member of the applicant who, with respect to a previous or existing prospecting right or mining right in respect of which such applicant, director or member is or was involved, has been informed in writing of a contravention of the provisions of this Act or any other legislation repealed by this Act and he or she has failed to remedy such contravention;
- the manner and scale in which the applicant intends to mine for such mineral or group of minerals or the provisions for the necessary technical ability and financial resources are not satisfactory;
- the proposed operations will detrimentally affect any existing prospecting or mining operations on t he same land;
- the intended mining operation will not be in the national interest; or
- the mineral or group of minerals applied for is unlikely to occur in mineable quantities in or on the land concerned.
(1) Upon receipt of the Minister’s approval to grant a mining right in terms of section 42 and after approval of the environmental management programme the Director: Mineral Development must grant the mining right.
(2) If the Minister refuses to approve the granting of a mining right in terms of section 43, the Director: Mineral Development must inform the applicant in writing accordingly.
(1) Subject to the provisions of this Act, a mining right is valid for the period as may be stipulated therein and such period may not exceed twenty five years.
(2) Notwithstanding the provisions of subsection (1) and subject to section 46, the Minister may, upon recommendation by the Director-General, approve the renewal of a mining right for a further period or periods not exceeding twenty five years.
(1) Subject to the provisions of this Act, the holder of a mining right may at any time but not later than 90 days before the expiry of such right, apply for the renewal thereof.
(2) Any application for renewal of a mining right must-
- be lodged with the Director: Mineral Development on the prescribed form and together with the payment of a non-refundable prescribed fee;
- state the period for which the renewal is required;
- give reasons as to why a renewal is required;
- be supported by a revised business plan;
- be accompanied by a report reflecting the extent of the environmental rehabilitation conducted and completed thus far and the costs thereof; and
- any other information or documentation the Director: Mineral Development may require.
(1) An application for the renewal of a mining right must be refused by the Director: Mineral Development if -
- the holder thereof-
- has not complied with the terms and conditions of the mining right granted in terms of section 44(1);
- has not complied with the mining plan in respect of which such right was granted;
- has not complied with the requirements of the approved environmental management programme;
- is in contravention of any provision of this Act; or
- the application does not comply with the requirements of section 46.
(2) The renewal of a mining right must be refused by the Minister if -
- in his or her the opinion, the renewal thereof will result in the hoarding or lock-up of mineral resources; or
- he or she is not satisfied with the reasons given in terms of section 46(2)(c).
The holder of a mining right must, subject to the provisions of this Act-
- commence with mining operations on or before the date stipulated in the mining right unless the Director: Mineral Development grants extension of such commencement date, upon acceptable reasons explaining why such operations cannot be commenced with;
- continuously and actively conduct mining operations in accordance with the business plan;
- comply with the terms and conditions of the mining right;
- comply with the requirements of the environmental management programme;
- comply with the provisions of this Act or any other law in respect of mining operations;
- in accordance with the social plan referred to in section 38(2)(f), contribute towards the local economic development of the area within which it is operating; and
- pay the prescribed royalties to the State
(1) Subject to the provisions of this Act, the Minister may, approve the granting of a retention permit, on such terms and conditions as he or she may determine.
(2) An application for a retention permit must be lodged on the prescribed form and together with the payment of a non refundable prescribed fee with the Director: Mineral Development and must contain -
- (a) full particulars of the applicant;
- the period for which the retention permit is required;
- particulars of the prospecting right in terms of which prospecting operations were conducted on the area concerned;
- a plan indicating the co-ordinates and boundaries of the area applied for;
- a detailed geological description of the area of land to which the application relates;
- an identification of the mineral or group of mineral s for which a retention permit is required;
- documentary evidence to prove the existence of the mineral reserves occurring within the area under application;
- a description supported by a plan, of any existing pollution or damage to the environment in the area to which the application relates;
- particulars, substantiated by documentary proof, of the technical ability and financial resources of, or available to the applicant;
- the reasons why no further prospecting or mining operations can be carried out on the area concerned;
- an indication of the circumstances in which and the earliest date on which, such mineral or group of minerals can in the opinion of the applicant, be mined or won on a profitable basis; and
- any other information, data or documentary evidence that t he Director: Mineral Development may require.
The Director: Mineral Development must not accept an application for a retention permit if–
- the application does not comply with the provisions of section 49(2);
- the applicant is not the holder of a prospecting right in respect of the area to which the application relates; or
- the mineral or group of minerals for which the applicant wishes to apply for a retention permit is not included in the prospecting right concerned.
A retention permit may only be issued in cases where the holder of the prospecting right has –
- prospected the land to which the application relates;
- completed the prospecting programme and a feasibility study;
- established the existence of a potentially minable mineral reserve; and
- researched the matter and found that mining of the mineral or group of minerals concerned would be uneconomical due to prevailing market conditions.
The Minister must refuse to approve the issuing of a retention permit if at the time of the application such applicant is in contravention of the terms and conditions of the prospecting right or any provisions of this Act or if the Minister with due consideration of the information submitted in terms of section 49(2) is of the opinion that -
- the deposit of mineral or group of minerals in the area to which the application relates -
- can be mined on a profitable basis at the time of the application; and
- is likely to be mined profitably at the end of the period indicated in the application;
- the applicant has not satisfactorily completed the required prospecting work programme and the necessary feasibility study;
- the unprofitable and uneconomic nature of the deposit is due to reasons other than temporary market conditions;
- it is not desirable, having regard to the sustainable development of the mineral resources of South Africa and in the national interest, to issue such permit; or
- the issuing of such permit will result in -
- an exclusionary act;
- the promotion of uncompetitive behaviour by the applicant;
- the hoarding or lockup of the nation’s mineral resources; or
- protecting the applicant against competition.
(1) Upon receipt of the Minister’s approval, in respect of an application for a retention permit, the Director: Mineral Development must issue the permit.
(2) A retention permit will be issued for a specified mineral or group of minerals and for a specified area.
(3) If the Minister refuses to approve the issuing of a retention permit, the Director: Mineral Development must inform the applicant in writing accordingly.
(1) Subject to the provisions of this Act, a retention permit is valid for the period as may be stipulated therein and such period may not exceed three years.
(2) Notwithstanding the provisions of subsection (1) and subject to section 55 and 56, the Minister may approve the renewal of a retention permit for a further final period not exceeding two (2) years and the Director: Mineral Development must renew the retention permit accordingly.
(1) The holder of a retention permit may at any time but not later than three (3) months before the expiry of such permit, apply for the renewal thereof.
(2) Any application for renewal of a retention permit must –
- be lodged with the Director: Mineral Development, in writing on the prescribed form together with the payment of a non-refundable prescribed fee;
- reflect updated information required in terms of sections 49(2); and
- any other information or data that the Director: Mineral Development may require.
The holder of a retention permit must, subject to the provisions of this Act –
- ensure the continued relevance and execution o f the environmental management programme approved in respect of the prospecting operations, until such time as an exoneration certificate has been issued in terms of 73(1);
- pay the prescribed retention fees;
- submit progress reports on a six (6) monthly basis to the Director: Mineral Development indicating -
- prevailing market conditions and the effect thereof on the necessity to hold a retention permit over the land concerned;
- efforts undertaken by the holder to ensure that mining operations commence before the expiry of the retention period; and
- any other information or documentary evidence that the Director: Mineral Development may require.
When a retention permit is issued –
- the prospecting right concerned lapses;
- no prospecting right or mining right may be granted to any third party in respect of the area and mineral to which the retention permit relates; and
- the holder of such permit, shall during the period of validity of the permit, have the sole and exclusive right to acquire a mining right;
(1) Subject to the provisions of this Act, the Minister may, if the Minister has reason to believe –
- that any mineral or group of minerals to which a retention permit relates may be mined on a profitable basis;
- that it is in the national interest that such mineral or group of minerals be mined;
instruct such holder to apply within a specified period -
- for a mining right to carry out mining operations in respect of such mineral or group of minerals; or
- for a prospecting right to conduct further prospecting in respect of such mineral or group of minerals.
(2) If the holder of a retention permit fails to comply with any instructions given in terms of subsection (1), the Minister must cancel such permit.
A retention permit shall not be transferred, ceded, let, sub-le t, alienated, disposed of or encumbered by mortgage.
(1) The holder of a prospecting right or mining right must before commencement of any prospecting or mining operation, notify the Director: Mineral Development in writing of such intended commencement, and provide particulars in connection with location, nature and extent of such operation.
(2) The holder of or applicant for a prospecting right or mining right must, at least fourteen (14) days pr ior to the commencement of any prospecting or mining operation, notify the occupant or owner of the land in writing of his or her intention to commence with such operation.
(1) Subject to the provisions of subsection (2), no person shall transfer, cede, assign, let, sub-let, alienate, dispose of or encumber by mortgage any prospecting right or mining right, or any part thereof or interest therein without the written approval of the Minister.
(2) Any person who wishes to apply for approval in terms of subsection (1) must lodge an application to that effect with the Director: Mineral Development, giving detailed reasons why such holder wishes to transfer the said prospecting right or mining right.
(3) Any prospecting right or mining right transferred, ceded, assigned, let, sub-let, alienated, disposed of or encumbered by mortgage without the written approval of the Minister shall be of no force or effect.
(1) The Minister may by notice in the Government Gazette, in order to promote-
exempt such category of person or prospecting or mining activities from any provisions of sections 26(2) or 38(2).
- the participation of certain category of persons in prospecting and mining activities; or
- any category of prospecting or mining activities,
(2) The Minister may by notice in the Government Gazette, exempt any organ of State from the provisions of section 26(2) or 38(2) in respect of any specific prospecting or mining activity carried out for public purposes.
(3) Notwithstanding the provision of subsection (1) and (2), the category or persons or the organ of state so exempted must submit an environmental management programme for approval in terms of section 67(3)(b).
The holder of any prospecting or mining right or retention permit may at any time abandon it as a whole or in respect of a particular mineral or group of minerals or in respect of any portion of the area concerned by written notice to the Director: Mineral Development and thereupon such right or permit must be cancelled or amended accordingly by the Director: Mineral Development: provided t hat the holder will only be relieved of its obligations under this Act, after the issuing of an exoneration certificate in terms of 73(1).
(1) The principles set out in this section shall –
- apply to all matters and actions relating to prospecting and mining operations regulated in terms of this Act; and
- serve as a general framework and guide for the interpretation, administration and implementation of the regulatory requirements for environmental management and remediation of environmental damage required by this Act.
(2) The development of mineral resources will take place within the framework of sustainable development and environmental management and will be regulated in accordance with national environmental management policy, norms and standards.
(3) (a) Sustainable development requires the consideration of all relevant factors including the following -
- The social, economic and environmental impacts of activities, including disadvantages and benefits, must be considered, assessed and evaluated, and decisions must be appropriate in the light of such consideration and assessment;
- that the use and exploitation of non-renewable natural resources is responsible and equitable and takes into account the consequences of the depletion of the resource;
- that the development, use and exploitation of renewable resources and the ecosystems of which they are part do not exceed the level beyond which their integrity is jeopardised;
- that the disturbance of ecosystems and loss of biological diversity are avoided, or, where they cannot be avoided, are minimised and remedied;
- that pollution and degradation of the environment are avoided, or, where they cannot be avoided, are minimised and remedied;
- that the disturbance of landscapes and sites that constitute the nation's cultural heritage is avoided, or where it cannot be avoided, is minimised and remedied;
- that the generation of waste is avoided, or where it cannot be avoided, is minimised, re-used or recycled where possible and disposed of in a responsible manner;
- that a risk-averse and cautious approach is applied, which takes into account the limits of current knowledge about the consequences of decisions and actions; and
- that negative impacts on the environment and on people's environmental rights be anticipated and prevented and where they cannot be prevented, are minimised and remedied.
- Environmental management must be integrated, acknowledging that all elements of the environment are linked and interrelated, and must take into account the effects of decisions on all aspects of the environment and all people in the environment by pursuing the selection of the best practicable environmental option.
- Environmental justice must be pursued so that adverse environmental impacts shall not be distributed in such a manner as to discriminate unfairly against any person, particularly vulnerable and disadvantaged persons.
- Responsibility for the environmental health and safety consequences of a project, product, process, service or activity must exist throughout its life cycle.
- Decisions must take into account the interests, needs and values of all interested and affected parties;
- The right of workers to refuse work that is harmful to human health or the environment and to be informed of dangers must be respected and protected.
- Decisions must be taken in an open and transparent manner, and access to information must be provided in accordance with the law.
- The costs of remedying pollution, environmental degradation and consequent adverse health effects and of preventing, controlling or minimising further pollution, environmental damage or adverse health effects must be paid for by those responsible for harming the relevant environment.
- Sensitive, vulnerable, highly dynamic or stressed ecosystems, such as coastal shores, estuaries, wetlands, and similar systems must receive special attention in management and planning procedures, especially where they are subject to significant human resource usage and development pressure.
- Effective monitoring, control and reporting to ensure the attainment and maintenance of the principles.
(1) The holder of a prospecting right or a mining right, the owner of a mine or an employee or any other person, including a contractor or any employee of a contractor, who, within or outside the boundaries of the mining area, causes, has caused, prior to or after the promulgation of this Act, or may cause pollution or degradation of the environment as a result of prospecting or mining activities conducted on such mining area, must take reasonable measures to prevent such pollution or degradation from occurring, continuing, or recurring. If harm to the environment cannot be avoided or stopped, such holder, owner, employee or person shall minimise and rectify such pollution or degradation of the environment in accordance with relevant legislative requirements to the satisfaction of the Director: Mineral Development.
(2) The holder of a prospecting right or a mining right must appoint –
- a responsible person who shall report to such holder; or
- him or herself,
to be in charge of environmental management at such mine or prospecting operation. Such appointment does not derogate from the holder’s responsibilities in terms of this Act.(3) The Director: Mineral Development may require that any or all of the measures required to be taken in terms of subsection (1) shall include measures to -
- establish baseline information concerning the affected environment to determine protection, remediation and management objectives;
- investigate, assess and evaluate the impact on the environment;
- inform and educate employees about the environmental risks of their work and the manner in which their tasks must be performed in order to avoid causing significant pollution or degradation of the environment;
- modify, remedy or control any action, activity or process causing the pollution or degradation;
- contain or remedy the cause of pollution or degradation and migration of pollutants;
- eliminate or prevent any source of pollution or degradation;
- remedy the effects of the pollution or degradation;
- comply with any prescribed waste standard or management practice; and
- monitor and report on compliance or non-compliance with or deviation from standards and environmental management programme objectives;
(4) (a) The Director: Mineral Development may, if no other authority has already taken similar action in terms of the National Environmental Management Act, 1998, or the National Water Act, 1998, direct any person referred to in subsection (1), who fails to take the measures required under subsection (1) to –
- commence taking specific measures before a given date;
- diligently continue with those measures; and
- complete such measures before a given date.
- The Director: Mineral Development must on issuing of the directive in terms of paragraph (a), inform the authorities referred to in section 28(4) of the National Environmental Management Act, 1998, and section 19(3) of the National Water Act, 1998.
(5) Should a person fail to comply, or comply inadequately with a directive given under subsection (4) –
- such person shall be guilty of an offence and over and above the penalties that may be imposed on conviction, such person shall continue to be required to comply with the said directive; and
- the Director: Mineral Development may subject to the provisions of section 64(3)(h) take the necessary measures to remedy the situation and such measures may be funded from money -
- demanded from any person referred to in subsection (6); or
- appropriated by Parliament in the budget of the Department.
(6) Subject to subsection (8), the Director: Mineral Development may recover all costs incurred as a result of acting under subsection (5) jointly or severally fro m the following persons:-
- Any person who is or was responsible for, or who directly or indirectly contributed to the pollution or degradation or the potential pollution or degradation.
- Any such person who failed to prevent –
- the activity or the process being performed or undertaken; or
- the situation from coming about.
(7) The Director: Mineral Development may in respect of the demand for payment or the recovery of costs under subsection (6), demand or claim proportionally from any other person who, in the opinion of the Director: Mineral Development, benefited from the measures undertaken under subsection (5), to the extent of such benefit.
(8) The costs demanded or claimed under subsections (6) and (7), must be the actual costs incurred and will include, without being limited thereto, consultancy costs, labour, administrative and overhead costs.
(9) If more than one person is liable in terms of subsections (6) and (7), the Director: Mineral Development must, at the request of any of those persons, and after giving the others an opportunity to be heard, apportion the liability, but such apportionment does not relieve any of them of their joint and several liability for the full amount of the costs.
(10) If in the opinion of the Minister it is necessary that measures be taken to prevent pollution or degradation of the environment or to rehabilitate dangerous occurrences and it is found that the responsible person is deceased or has (in the case of a corporate body) ceased to exist or cannot be traced, the Minister may instruct that t he Department takes the necessary measures to prevent further pollution or degradation or to make the area safe. The cost of such measures may be apportioned between the State from monies voted by Parliament and any person, including the owner of the land concerned, who will directly benefit from the measures being taken. The Minister may, if he or she is of the opinion that it would be unreasonable, impractical or inequitable or unfair to require such person or persons to contribute to the taking of the said measures, exempt such person or persons from contributing.
(11) The Director-General, may if an exoneration certificate has been issued in terms of section 73, require the registrar of deeds concerned to make entries in the appropriate registers and to endorse the title deed to any land on which rehabilitated occurrences, structures, including residue deposits, are situated to reflect the presence of such occurrences or structures and to describe the measures that must be observed and undertaken by the owner thereof or the owner of the land to protect the integrity of the rehabilitation measures that have been undertaken in respect of such occurrences or structures.
(12) For the purposes of subsection (11) the owner of the land or any mortgagee shall within a period of one month from the date of notification, submit the title deed in respect of the land concerned to the Director-General for submission to the registrar of deeds concerned. If such owner or mortgagee fails to submit the said title deed within such period, the registrar concerned shall, nevertheless, make such entries at the written request of the Director-General and make such endorsement if the title deed is at any time lodged with the registrar for any reason.
(1) The philosophy of integrated environmental management must be pursued during the process of environmental impact assessment and the management of all environmental impacts resultant from prospecting and mining activities. The general objectives of integrated environmental management are to -
- promote the integration of the principles of environmental management set out in section 64 into decision-making which may have a significant effect on the environment;
- identify, predict and evaluate the actual and potential impact on the environment, socio-economic conditions and cultural heritage, the risks and consequences and alternatives and option s for mitigation of activities, with a view to minimising negative impacts, maximising benefits, and promoting compliance with the principles of environmental management set out in section 64;
- ensure that the effects of activities on the environment receive adequate consideration before actions are taken in connection therewith;
- ensure adequate and appropriate opportunity for input from interested and affected parties prior to taking any decision which may affect the environment;
- ensure the consideration of environmental characteristics in management and decision-making which may have a significant effect on the environment; and
- identify and employ the modes of environmental management best suited to ensuring that a particular activity is pursued in accordance with the principles of environmental management set out in section 64.
(2) In order to give effect to the objectives of integrated environmental management referred to in subsection (1), the potential impact on –
- the environment;
- socio-economic conditions; and
- the cultural heritage,
of prospecting or mining operations and which may significantly affect the environment, must be considered, investigated and assessed prior to their implementation and communicated to the Director: Mineral Development through the process involved in the development of an environmental management programme referred to in section 67.
(3) (a) The investigation, assessment and communication of the potential impact of activities contemplated in subsection (2) must take place in accordance with the procedures and requirements contemplated in subsection (4).
- The Minister may, in consultation with the Committee for Environmental Co-ordination, make regulations laying down the procedure s to be followed and the report to be prepared for the purpose of compliance with subsection (a).
- Any regulations made in terms of this subsection must comply with subsection (4).
- This section does not affect the validity of any approved environmental management programme that is in force at the commencement of this Act.
(4) Procedures and requirements for the investigation, assessment and communication of the potential impact of activities must, as a minimum, ensure the following -
- investigation of the environment likely to be affected by the proposed prospecting or mining activities in order to compile a pre-prospecting or pre-mining environmental database;
- investigation of the potential impact, including cumulative and synergistic effects, of the proposed activities on the environment, socio-economic conditions and cultural heritage, and assessment of the significance of the potential impact;
- investigation of alternative methods and mitigation measures to keep adverse impacts to a minimum, a s well as the option of not implementing the activity;
- public information and participation, independent review if required and conflict resolution in all phases of the investigation and assessment of impacts;
- reporting on gaps in knowledge, the adequacy of predictive methods and underlying assumptions, and uncertainties encountered in compiling the required information; and
- investigation and formulation of arrangements for the monitoring and management of impacts, and the assessment of the effectiveness of such arrangements after their implementation.
(5) The applicant for a prospecting right or mining right or any organ of State referred to in section 62(2) must consult with all affected parties and, furthermore, with interested affected persons who have identified themselves as having a substantial and material interest in the matter.
(1) Subject to the provisions of this Act, no person shall prospect or mine unless he or she has complied with the provisions of section 66(1), (2), (3)(a) and (4) and is in possession of an approved environmental management programme, based on an environmental impact assessment contemplated in the said provisions and drawn up in accordance with the requirements of this A ct and with the directives and guidelines published by the Department.
(2) (a) The management of all environmental impacts generated by or resultant from prospecting or mining shall be carried out –
- in accordance with the environmental management programme approved in terms of subsection (3);
- as an integral part of the prospecting or mining operations concerned;
- simultaneously with such operations unless determined otherwise in writing b y the Director: Mineral Development; and
- to the satisfaction of the Director: Mineral Development.
- The environment affected by the prospecting or mining shall be rehabilitated by the holder of a prospecting right or mining right to, as far as is practicable, its natural state or to a predetermined and agreed to standard or land use which conforms with the concept of sustainable development. The affected environment must maintain a stable condition that will not be detrimental to the safety and health of humans and animals and that will not pollute the environment or lead to the degradation thereof.
(3) (a) The applicant for a prospecting right or mining right or an organ of State referred to in section 62(2), shall submit to the Director: Mineral Development for consideration an environmental management programme in respect of the environment that has been or will be affected by the prospecting or mining on the area concerned.
- If the Director: Mineral Development is satisfied with the content thereof, the said Director: Mineral Development may subject to subsection (5); approve such environmental management programme after which the requirements of the environmental management programme shall be legally binding on the applicant or organ of State referred to in paragraph (b).
- No applicant or organ of State referred to in paragraph (a) shall commence with any prospecting or mining or operations incidental thereto or in preparation thereof, on the intended prospecting area or mining area before obtaining the approval referred to in paragraph (b)
- A prospecting right or a mining right shall not be granted prior to the approval of the environmental management programme.
(4) The Director: Mineral Development may -
- (i) within a period of one hundred and twenty (120) days from the date of acceptance of an environmental management programme for consideration, or amended environmental management programme as result of any requirements in terms of subsection (6), approve or refuse to approve an environmental management programme; or
(ii) approve an environmental management programme subject to the requirement that supplementary information that is not immediately available be furnished and incorporated into the environmental management programme within a period stipulated by the Director: Mineral Development. This arrangement shall not apply in cases where the absence of the said information will invalidate the effectiveness of the environmental management programme to acceptably manage, in the meantime, pollution or the degradation of the environment;
- from time to time, on application from the holder of an environment management programme, approve amendments to an environmental management programme, subject to conditions determined by the Director: Mineral Development.
- without application being made therefore, but after consultation with such holder, amend any approved environmental management programme.
(5) Before the Director: Mineral Development –
- approves any environmental management programme referred to in subsection (3);
- grants any approval under subsection (4)(a)(ii); or
- effects an amendment under subsections (4)(b) or (c);
the Director: Mineral Development shall consult with the Chief Inspector, each department charged with the administration of any law which relates to any matter affecting the environment, with affected parties and with persons who have identified themselves as having a material interest in the matter. The Chief Inspector, department, parties or persons who have identified themselves as having a material interest in the matter, must provide their comments on the environmental management programme to the Director: Mineral Development within sixty days from the date of the request from the Director: Mineral Development to comment on the environmental management programme.
(6) The Director: Mineral Development may, after consultation with the applicant and pending the approval of an environmental management programme require that-
- the completed environmental impact assessment referred to in section 67(1) be reviewed, or that another, or an amplifying environmental impact assessment be carried out in respect of the intended prospecting or mining operations by the applicant or by a professional body designated by the Director: Mineral Development; and
- any costs in respect of an environmental impact assessment referred to in paragraph (a) shall be borne by the applicant.
Before the Director: Mineral Development approves any environmental management programme, the applicant for a prospecting right or a mining right must satisfy the Director: Mineral Development that he or she -
- has the financial means to execute the environmental management programme; and
- has demonstrated in the environmental management programme that adequate financial provision, as prescribed, has been made which may be called up and the funds utilised by the Director: Mineral Development for rehabilitation or management of negative environmental impacts, should the holder, i n the opinion of the Director: Mineral Development fail or be unable to undertake uncompleted rehabilitation obligations or the required management.
In order to ensure compliance with the environmental management programme and the continued appropriateness and effectiveness of the environmental management programme, the holder of the prospecting right or the mining right or the owner of a mine shall, in the prescribed manner, monitor operations against the requirements of the approved environmental management programme, conduct performance assessments and report the results t o the Director: Mineral Development.
The Director: Mineral Development may at any time issue directives to the holder of a prospecting right or a mining right or the owner of the mine or to any contract or operating on the mining area and may determine conditions in order to limit or prevent any detrimental effect, including pollution or degradation or disturbance of the earth, any water body, fauna and flora, the atmosphere or any part of the affected environment or to human health or well-being.
(1) No person shall temporarily or permanently deposit mine residue elsewhere than on the site or sites demarcated for that purpose by the Director: Mineral Development. Every such site shall be limited to a minimum and the residue shall be managed in the prescribed manner to prevent environmental pollution and degradation and to ensure safety.
(2) Notwithstanding the provisions of any other law the Minister may in consultation with the Minister of Environmental Affairs and Tourism and with the Minister of Water Affairs and Forestry, prescribe measures to ensure the integrity of mine residue deposits and to prevent pollution of the environment arising from such mine residue de posits.
Whenever a prospecting right or a mining right is cancelled, relinquished, abandoned or if it lapses in terms of this Act, or if any portion of the mining area or the surface of such mining area, comprising the subject of such right is abandoned, the person who is or was the holder of such right is or was the owner of the mine immediately prior to such lapsing, cancellation, relinquishment, abandonment or other termination as the case may be, shall demolish all buildings, structures or any other object which the concerned may require and as far as is practicable, restore any such surface to its natural state to the satisfaction of and within a period determined by the Director: Mineral Development: Provided that such demolition or removal shall not be applicable in respect of buildings, structures or objects –
- which shall, in terms of any other law, not be demolished or removed;
- which have been identified by the Director: Mineral Development , or in respect of which the Director: Mineral Development has granted exemption subject to such conditions as may be determined by him or her; or
- which the owner of the land wishes to retain and which has been agreed upon accordingly in writing wit h such former holder of such right or owner of the mine and with the Director: Mineral Development , who may grant exemption subject to such conditions as may be determined by the Director: Mineral Development.
(1) If a prospecting right or mining right or retention permit is suspended, cancelled, relinquished, abandoned or if it lapses in terms of this Act, or if any portion of the area comprising the subject of such right or permit, is abandoned, the person who is or was the holder of such right or permit immediately prior to such suspension, cancellation, abandonment, relinquishment or lapsing shall be deemed to have applied for an exoneration certificate as from that date and shall remain liable and responsible for complying with the relevant provisions of this Act, which includes the requirements of the environmental management programme, until the Director: Mineral Development issues an exoneration certificate in respect of the area or portion thereof to the effect that the said provisions have been complied with.
(2) The Director: Mineral Development may on written application by a competent person referred to in subsection (6),with agreement of the holder referred to in subsection (1), transfer such liability and responsibility to the applicant.
(3) (a) On application for exoneration the holder referred to in subsection (1), shall conduct an assessment acceptable to the Director: Mineral Development to identify and quantify all residual environmental impacts and the risks associated with such impacts and to identify and quantify the probability of latent environmental impacts occurring and the potential risks associated with such impacts.
(4) Before issuing an exoneration certificate, the Director: Mineral Development must consult with the Chief Inspector, departments, parties and persons contemplated in section 67(5) and no exoneration certificate shall be issued unless the Chief Inspector and the Department of Water Affairs and Forestry have indicated in writing that the provisions pertaining to health and safety and arrangements referred to in paragraph (3)(b) pertaining to the management of water resources have adequately been address ed.
- Adequate arrangements, including financial arrangements, to the satisfaction of the Director: Mineral Development shall be made by the holder referred to in subsection (1) or the competent person referred to in subsection (2), prior to the granting of exoneration to provide for the management, including monitoring and remediation of any identified residual or latent impacts while they have the potential to affect the environment negatively.
- The said holder or competent person referred to in subsection (2) shall remain liable and responsible for complying with the arrangements referred to in paragraph (b) until the Director: Mineral Development issues an exoneration certificate to the effect that the said arrangements have been complied with and are no longer required.
- Any liability and responsibility of a competent person or holder referred to in subsection (7) shall not be transferred without the written consent of the Director: Mineral Development which consent shall only be granted in respect of another competent person or owner referred to in subsection (7).
(5) When the application for an exoneration certificate is lodged and conveyed to the Department of Water Affairs and Forestry, that department must indicate in writing the extent to which the arrangements referred to in paragraph (3)(b) relating to the management of water resources still have to be complied with.
(6) For the purposes of this section, a competent person shall be a person who–
- has the expertise, resources and organisational abilities to integrate risk assessment, risk management and risk financing to ascertain the cost of environmental management;
- has expertise, financial and other resources to meet its obligations to carry out its obligations to carry out actions necessary to fulfil the environmental obligations as set out in the environmental management programme concerned;
- has appropriate experience in environmental management specific to mining;
- has direct access to insurance products and alternative risk financing services appropriate to financing of exposure to risks;
- can manage trusts set up in terms of section 10(1)(cH) of the Income Tax Act, 1962 (Act No 58 of 1962); and
- has in-house expertise and experience to interpret and manage the findings of an environmental risk assessment.
(7) In the even t that the risk assessment referred to in subsection (3)(a) does not identify the possibility of latent impacts occurring and the rehabilitation measures in respect of residual impacts require only monitoring and maintenance, the Director: Mineral Development may, in consultation with the land owner, consider that the land owner be identified as a competent person for the purposes of subsection (2) and in such a case, the provisions of subsection (3)(c) shall mutatis mutandis apply.
If the holder or the owner of the mine or the competent person referred to in section 73(3)(c) or the competent person referred to in section 73(2) or 73(7) is liquidated or is deceased or is sequestrated the Department shall have a preferential claim against the estate of such holder, or competent person for the amount determined in terms of section 68(b) and section 73(3)(b).
- “incident" means an occurrence occurring within the boundaries of a mining area, leading to serious danger to the public or potential serious pollution of or detriment to the environment, whether immediate or delayed; and
- responsible person" means the holder of prospecting right or mining right or retention permit or the owner of a mine.
(2) Notwithstanding the provisions of the Mine Health and Safety Act, 1996 the responsible person must forthwith after becoming aware of the incident, report through the most effective means reasonably available -
- the nature of the incident;
- any risk posed by the incident to public health, safety and property or the environment;
- the toxicity of substances or by-products released by the incident; and
- any steps that should be taken in order to avoid or minimise the effects of the incident on public health safety and property or the environment to -
- the Director: Mineral Development;
- the South African Police Service and the relevant fire prevention services;
- the relevant provincial government;
- the relevant municipality; and
- all persons whose health, safety or property may be affected by the incident.
(3) The responsible person must, as soon a reasonably practicable after becoming aware of the incident –
- take all measures to contain and minimise the effects of the incident, including its effect on the environment and any risks posed by the incident to the health, safety and property of persons;
- undertake clean-up operations;
- remedy the cause of the incident; and
- assess the immediate and long-term effects of the incident on public health, safety and property or the environment.
(4) The responsible person must within fourteen days of the incident, report in writing to the Director: Mineral Development such information as is available to enable an initial evaluation of the incident, including –
- the nature of the incident;
- the substances involved and the estimation of the quantity released and their possible effect on humans and the environment and the data needed to assess these effects;
- initial measures taken to minimise the impacts;
- causes of the incident, whether direct or indirect, including equipment, technology, system or management failure; and
- measures taken and to be taken to avoid a recurrence of such incident
(5) The Director: Mineral Development may direct the responsible person to undertake specific measures within a specific time to fulfil its obligations under subsections (3) and (4) and must, when considering any such measure or time period, have regard to the following –
- the necessity of consultation with the authorities referred to in section 30 of the National Environmental Management Act, 1998;
- the severity of any impact on the environment as a result of the incident and the costs of the measures being considered;
- any measures already taken or proposed by the person on whom measures are to be imposed, if applicable;
- any measures already taken or proposed or imposed by any other authority; and
- any other relevant factors.
(6) A verbal directive given in terms of subsection (5) must be confirmed in writing within seven days.
(7) Should –
- the responsible person fail to comply or inadequately comply with a directive under subsection (5), such person shall be guilty of an offence and over and above the penalties that may be imposed on conviction, such person shall continue to be required to comply with the said directive; and
- there be an immediate risk of serious danger to the public o r potentially serious detriment to the environment, the Director: Mineral Development may in consultation with the authorities referred to in subsection 5(a) and with funds appropriated by Parliament, take the measures necessary to –
- contain and minimise the effects of the incident;
- undertake clean-up operations; and
- remedy the cause of the incident.
(8) The Director: Mineral Development may claim reimbursement of all costs incurred by the State under subsection (7) from the responsible person.
(9) If the Director: Mineral Development takes steps under subsection ( 5) or (7) he or she must, as soon as reasonable practicable, prepare a report on the incident, which report must be made available to –
- the Director-General;
- the Chief Inspector;
- the Directors-General of the Department of Environmental Affairs and Tourism and of the Department of Water Affairs and Forestry;
- the South African Police Service and the relevant fire prevention service;
- the relevant provincial government;
- the relevant municipality; and
- all persons whose health, safety or property have been detrimentally affected by the incident.