1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. Thank You