1 Meeting of Portfolio Committee for Minerals and Energy 25 March 2008, Cape Town Mineral and Petroleum Resources Development Amendment Bill

2Contents 1.Proposed further environmental amendments to the Mineral and Petroleum Resources Development Amendment Bill. 2.Updated Mineral and Petroleum Resources Development Amendment Bill for adoption and re- tabling into the Parliamentary process.

3 The MPRD Amendment Bill [B10B-2007] did not proceed further than NCOP, as agreement on the alignment of environmental requirements in MPRDA and NEMA could not be reached. Political leadership were tasked to do more work to inform a political decision in this regard. Following high-level meetings between the DP and the Ministers of M&E and of EA&T, 3 framework criteria were agreed to achieve the necessary alignment.  That one environmental management system be followed; 2. Proposed further environmental amendments to the Mineral and Petroleum Resources Development Amendment Bill.

4  That the Minister of Minerals and Energy be the responsible authority for the environment as it relates to prospecting, mining, exploration, production or related activities.  That the Minister of Environmental Affairs and Tourism be the responsible appeal authority on all environmental authorisations issued in terms of NEMA. 2. Proposed further environmental amendments to the Mineral and Petroleum Resources Development Amendment Bill (continue)

5 At a meeting held between the Directors-General of DME and DEAT on 7 February 2008, the DME proposed a solution in accordance with the framework criteria which was refined and adopted by DEAT and an Agreement was signed which contained the following:  In following one environmental system, it was agreed that the Minister of DEAT be responsible for drafting and promulgating all environmental policy and legislation in terms of NEMA;  That the Minister of DME be responsible for implementing environmental policy and legislation in terms of NEMA and specific environmental legislation as it relates to prospecting, mining, exploration, production and related activities on a prospecting, mining, exploration or production area. 2. Proposed further environmental amendments to the Mineral and Petroleum Resources Development Amendment Bill (continue)

6  This would result in both MPRDA and NEMA to be amended including the specific environmental legislation such as NEMA Air Quality Act, NEMA Waste Management Bill and the NEMA Coastal Management Bill.  Environmental requirements in terms of MPRDA and its supporting Regulations to be deleted and incorporated into NEMA (including environmental requirements MPRD Amendment Bill).  Timeframes for processing and approval of EIAs and EMPs in MPRDA be retained in NEMA. 2. Proposed further environmental amendments to the Mineral and Petroleum Resources Development Amendment Bill (continue)

7  Minister of DEAT be the appeal authority for all environmental authorisations. Minister of DME responsible for handling appeals on decisions leading up to the environmental authorisations (decisions on supporting reports).  It was decided that a transitional period for establishing one environmental system is 18 months from the date of the last Bill to be enacted.  Concern is expressed that the DME/DEAT Agreement is not formalised by a Cabinet decision or consistent with any existing environmental policy directive. 2. Proposed further environmental amendments to the Mineral and Petroleum Resources Development Amendment Bill (continue)

8 Summary of proposed further environmental amendments in MPRDA Amendment Bill Repeal MPRDA or delete MPRD Amendment Bill Incorporate in NEMA Bill/ contextualise in SEMA Add new definitions MPRD Amendment Bill and NEMA Amendment Bill/contextualise SEMA “environment”“Community” (MPRD Amendment Bill / NEMA Bill) Definition Minister of Minerals and Energy (MPRD Amendment Bill and NEMA Bill) “Environmental Management Plan” Exploration area (MPRDA / NEMA Bill) Definition of Minister of Environmental Affairs and Tourism (NEMA Bill) “Environmental Management Programme” Mining area (MPRD Amendment Bill / NEMA Bill) “Financial provision” (MPRD Amendment Bill and incorporate NEMA Bill) Prospecting area (MPRDA / NEMA Bill) “Top soil” (MPRDA and incorporate NEMA Bill)

9 Summary of proposed further environmental amendments in MPRDA Amendment Bill Repeal MPRDA or delete in MPRD Amendment Bill Incorporate in NEMA Amendment Bill/contextualise SEMA Add new definitions “Cumulative impact” (MPRD Amendment Bill) Production area (MPRDA/NEMA Bill) “Waste” (MPRD Amendment Bill) Environmental authorisation MPRD Amendment Bill Environmental reports defined MPRD Amendment Bill NEMA (MPRD Amendment Bill) “Competent person” (NEMA Bill/NEMA EIA Regs) Effective date (MPRD Amendment Bill/NEMA Bill) Add condition of issuing environmental authorisation prior to issuing permit or right in MPRDA. “Residue deposits and stockpiles” “Residue deposit” and “stockpile” (MPRD Amendment Bill / NEMA Bill)

10 Repeal MPRDA - NEMA Bill/contextualise SEMA Repeal MPRDA / delete MPRD Amendment Bill Incorporate NEMA Bill/contextualise SEMA Comments Section 37 – EM principlesAmend and Incorporate More than s 2 NEMA Section 38 – IEM and responsibility to remedy Amend and incorporate Holder’s liability Section 39 – EMPs timeframes Amend and incorporate Timeframes Section 40 – ConsultationAmend and incorporate Consultation State departments and timeframe (MPRD Amendment Bill) Section 41 – Financial provision Amend and incorporate Also include MPRD Amendment Bill. Section 42 – Management residue deposits and stockpiles and section 42A “Monitoring and performance assessments” Amend and incorporate Also include MPRD Amendment Bill Section 43 – ClosureAmend and incorporate Also include MPRD Amendment Bill

11 Repeal MPRDA – NEMA Bill/contextualise SEMA Repeal MPRDA / delete in MPRD Amendment Bill Incorporate NEMA Bill/contextualise SEMA Comments Section 45 Minister’s powers to recover costs in event of urgent remedial measures Amend and incorporate Section 46 Minister’s powers to remedy environmental damage (Rehab D&O mines) Amend and incorporateAlso new MPRD Amendment Bill (liabilities old order rights or previous owners works) Section 106 Exemptions organs of state Amend and incorporate Section 107 (1)(a) Regulations Environment Amend and incorporateAdd MPRD Amendment Bill

12 Challenges and implication regarding the proposed transfer of environmental function to DEAT within next 3 years  Impact the Minister of DME’s jurisdiction on decision-making in MPRDA as the issuing of environmental authorisation is a condition to commence with prospecting, mining, exploration, production.  One system does not fit all. Additional and stricter requirements followed by mines regarding EMP, financial provision, monitoring and auditing, mine closure.  Negative influence on processing applications and decision-making on matters mine health and safety, mine economics, mineral economics, social and labour plan, BEE in terms MPRDA – all synchronised and within same time frames.

13 MINE ECONOMICS MINE ECONOMICS ENVIRON MANAGEMENT ENVIRON MANAGEMENT SOCIAL PLAN MINE HEALTH & SAFETY MINE HEALTH & SAFETY OTHER RELEVANT DEPARTMENTS OTHER RELEVANT DEPARTMENTS MINERAL ECONOMICS MINERAL ECONOMICS PRIOR TO ISSUING OF PERMITS AND GRANTING OF RIGHTS MPRDA Obtain decision-making all other disciplines  Mine Economics  Environmental Management  Social and Labour Plan  Mine Health & Safety  Other relevant Departments  Mineral Economics PRIOR TO ISSUING OF PERMITS AND GRANTING OF RIGHTS MPRDA Obtain decision-making all other disciplines  Mine Economics  Environmental Management  Social and Labour Plan  Mine Health & Safety  Other relevant Departments  Mineral Economics Minister of Minerals and Energy

14 Challenges and implication regarding the proposed transfer of environmental function to DEAT within next 3 years  Decision-making on provincial level and possibility to follow 10 different set of norms and standards on environmental management.

15 3. MPRD Amendment Bill submitted for adoption and to re- table into Parliamentary process  Copy of Bill has been distributed for discussion by the Portfolio Committee for Minerals and Energy. THANK YOU