Mineral and Petroleum Resources Development Amendment Bill

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• Mineral and Petroleum Resources Development
  Amendment Bill
• Presentation to the Select Committee on Economic
  and Foreign Affairs
• 22/08/2007

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The Team

• Mr A Mngomezulu, DDG Mineral Policy
• and Promotion
• Ms L Mekwe, D Mineral Policy Development
• Mrs E Swart, D Mine Environmental Policy
• Mr S Mackenzie, DD Environment
• Mr D Mailula, DD Mineral Policy
• Development
• Ms N Mnyikiso- SLA

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HISTORICAL BACKGROUND

• MPRDA
• Passed in 2002 Implemented in May 2004
• MPRDA MAIN OBJECTS
• Custodianship of all Mineral and Petroleum
  Resources
• Equitable access to the Nations Mineral and
  Petroleum Resources
• Expand opportunities for HDSAs
• Security of Tenure
• Holders of rights to contribute towards
  Socio-Economic Development

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RATIONALE FOR AMENDMENTS

• Technical errors
• Ambiguities in certain definitions
• Review mine closure requirements
• Introduction of new concepts
• Separation of powers of the Minister of M E
• and that of Finance

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RATIONALE FOR AMENDMENTS (cont.)

• Omissions on the existing old order rights
• BEE dilution and fronting
• Refining the appeal and review of
• administrative decisions
• Omissions for consideration

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AMENDMENTS EFFECTED

• Introduction of new concepts
• Beneficiation
• Council for Geoscience
• Separation of powers (Ministry of DME and the
  Finance
• Ministry)
• DME Minister no longer responsible for the
• determination of any fees e.g. Royalties
• Community has been redefined to protect the
  interests and rights of the HDSA
• The Bill ushers sound administrative practices

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AMENDMENTS EFFECTED(cont.)

• Prevents BEE dilution and fronting
• -For cession or sale of any prospecting or
  mining right,
• the Ministers prior written approval is
  required
• Refining the appeal and review of administrative
• decisions
• -Made provision for a period by which an
  appeal is
• to be lodged
• To rectify certain omissions of existing old
  order rights, such
• as mynpachten, old order mining rights, OP26
  mining lease,
• OP26 sublease, OP26 right.
• Sustains the small scale mining operation by
  extending the
• area of the mining operation to 5,0 hectors

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AMENDMENTS EFFECTED (cont.)

• Council for Geoscience empowered to be the
• custodian of prospecting information.
• -Section 21,30, 43 and 88
• Manner of consulting the landowner, lawful
• occupier and interested and affected parties
• is to be prescribed in the Regulation

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AMENDMENTS EFFECTED (cont.)

• To enable the Regional Mining Development and
• Environmental Committee to make
• recommendations to the Minister on objection
• received and on environmental issues within
• specific time frame.
• -Section 40

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AMENDMENTS EFFECTED (cont.)

• To provide for a mine closure procedure and
• development of strategies
• To facilitate mine closure where mines are
• interconnected, integrated or cumulative
• environmental impact
• To provide for the closure of abundant mines
  relating to the holders of old order rights

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CONSIDERATION OF OMMISSIONS

• Definition of Beneficiation
• Specification of time frames for granting or
  refusal of a right
• Item 12 in respect of prescription for
  determination and payment of compensation.
• Drafting errors

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CONCLUSION

• Technical improvement and effective
  implementation of the MPRDA
• Cooperative governance between organs of state
  enhanced
• No deviation from the objects of the Act and the
  principles enshrined in the Mining Charter
• Harmonisation of the MPRDA with other
  legislations
• Mining Titles Registration Act No16 of 1967 (as
  amended),
• Diamond Act No. 56 of 1986, as amended, and
• the Mine Health and Safety Act No. 29 of 1996

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• Thank You