Mineral and Petroleum Resources Development Amendment Bill Presentation to the Select Committee on Economic and Foreign Affairs 22/08/2007 Presented by: Mr MA Mngomezulu Deputy Director-Genera: Mineral Policy and Promotion

Mr A Mngomezulu, DDG: Mineral Policy 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

HISTORICAL BACKGROUND MPRDA Passed in 2002 & Implemented in May 2004 MPRDA MAIN OBJECTS Custodianship of all Mineral and Petroleum Resources Equitable access to the Nation’s Mineral and Petroleum Resources Expand opportunities for HDSA’s Security of Tenure Holders of rights to contribute towards Socio-Economic Development

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

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

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

AMENDMENTS EFFECTED (cont.) Prevents BEE dilution and fronting -For cession or sale of any prospecting or mining right, the Minister’s 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

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

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

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

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 1111

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

Thank You