Presentation to Environment Portfolio Committee Department of Planning, Monitoring and Evaluation Department of Environmental Affairs Implementation Evaluation of the Effectiveness of Environmental Governance in the Mining Sector Presentation to Environment Portfolio Committee Rudi Dicks 7 March 2017

Overview of the Environmental Governance Framework The National Environmental Management Act, 1998 (NEMA) is the legislative environmental ‘framework’ in South Africa, which defines the environmental management approach that should be integrated across all sectors, including the mining sector. The objective of the environmental governance framework for South Africa’s mining sector is to ensure that the environmental impacts of mining activities are effectively mitigated or managed.

The evaluation The purpose of the evaluation was to assess the relevance and effectiveness of the legislation and the implementation thereof in achieving this objective Data sources - a literature review; key informant interviews (KIIs); and four case studies (Gauteng gold mining, Northern Cape asbestos mining, Mpumalanga coal mining and North West platinum mining).

Key Findings Inadequacies of current guidelines to ensure adequate rehabilitation. Inadequacies of the guideline present some risk to the State from mining-related long term liability, but mitigated by provisions of the MPRDA and the Regulations. Means or mechanisms for determining the most suitable use of land. MPRDA does not accurately define sustainable use of land, nor require identification of most sustainable land use. Identified land use alternatives may not necessarily be the most sustainable uses.

Key Findings Appropriateness & effectiveness of current institutional mechanisms for environmental performance. The institutional mechanisms used for environmental performance are the promulgated statutes and regulations relating to environmental management. In theory the framework described in the regulations is appropriate for promoting good governance in the mining sector. However, it is poorly enforced in practice. Effect of the Minerals Act and MPRDA on the environmental performance of mining. While regulated changes in legislation have potentially enhanced environmental governance of mining, implementation remains a concern. Without adequate enforcement, the legislation loses its effectiveness.

Key Findings Extent to which mining-related environmental liabilities are covered by the state. State liable for mining-related environmental liabilities for historical mines but has limited liabilities for new mines given limited number of closure certificates. Costs of mining-related environmental liabilities for the State could have been reduced if legislation at the time required mines to make financial provision for rehabilitation and closure.

Key Findings Appropriateness of the implementation and enforcement of mining related environmental governance being from within DMR. This evaluation accepts the DMR’s current responsibility, particularly as another change to the regime would be too disruptive to the mining industry. However to be effective competent authority requires improving capacity, systems and cross-deptment coordination.

Recommendations of the evaluation To avoid confusion, legislation, particularly NEMA, should provide definitions across environmental regulations, including defining the term ‘sustainability’. Concurrent rehabilitation should be encouraged or enforced. ‘Sustainability’ should be clearly defined, method should be defined for conducting sustainability assessments, with clear demarcation of responsibility between mine and authorities.

Recommendations of the evaluation (2) Mining companies should be responsible for all foreseeable environmental impacts as approved in EMP, including unforeseen environmental impacts during operation. State should be liable for all other unforeseen environmental impacts. Communication channels within & between departments should be reviewed and improved. DMR should develop the capacity, skills, technical expertise & systems for an effective competent authority.

Recommendations of the evaluation (3) Guideline for calculating the cost of financial provision for rehabilitation and closure of mines should be updated and training provided to mines and consultants on its implementation. DMR should move to automated reporting system with data stored in central database.

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