1. PORTFOLIO COMMITTEE ON MINERAL RESOURCES
DISCUSSION ON THE
ONE ENVIRONMENTAL SYSTEM
12 NOVEMBER 2014

2. PRESENTATION LAYOUT
RATIONALE FOR THE NEW SYSTEM FOR MINING, ENVIRONMENTAL AND WATER AUTHORISATONS
REFLECTION ON CHALLENGES BEFORE THE INITIATIVE
PROCESS FOLLOWED TO STREAMLINE LICENCING PROCESSES
GOVERNANCE STRUCTURES INVOLVED IN EFFECTING ALIGNMENT
THE BRIEF
OUTLINE OF THE APPLICATION SYSTEM
ALIGNMENT OF PROSPECTING RIGHT PROCESS
ALIGNMENT OF MINING RIGHT PROCESS
RESOURCE IMPLICATIONS OF THE ALIGNMENT PROCESS
ELEMENTS OF THE IMPLEMENTATION PLAN
CURRENT STATUS AND IMPLEMENTATION PROGRESS.
CONCLUSION
"Implication Process" should read "Implementation Process"
There are two slides referring to invesment being "or even hundreds of billions" Not sure of that level - rather delete.
Explanetory Slide on MR process refers to Prospecting rights. Please correct to mining rights.
ADDITIONS

3. RATIONALE FOR THE NEW SYSTEM FOR MINERAL , ENVIRONMENTAL AND WATER AUTHORISATONS The Strategy for sustainable growth and competitiveness of the mining industry, identified fragmented likening system as a constraint to attracting investment.
Investments could not be unlocked, and some mines ended up operating illegally.
Consequence – Uncertainty in the investment climate
Excessive lead times for investment decisions.
Perceptions of SA being a high risk investment destination.
Investment into mines involves tens or even hundreds of Billions
Negative press portraying mining projects as being illegal
Investments in mining industry not seen as safe.

4. Consequence – Uncertainty in the investment climate
CHALLENGES BEFORE THE INITIATIVE 3 Departments regulating Environment of one industry
Environmental Plan or Programme (DMR)
Environmental Authorisation (DEA & Provincial Environmental Departments)
Water Use License (Department of Water and Sanitation (DWS)
The respective rights and authorisations were often processed consecutively rather than concurrently
Consequence – Uncertainty in the investment climate
Excessive lead times for investment decisions.
Perceptions of SA being a high risk investment destination, leading to.
Potential loss of investments
Negative press portraying mining projects as being illegal
Investments in mining industry not seen as safe.

5. PROCESS FOLLOWED TO STREAMLINE
February DEA and DMR agreed on the principle of one system to regulate all environmental matters pertaining to mining.
Agreement not implemented due to challenges
NEMA amended in 2008 to effect agreement
MPRDA amended in 2008, promulgated 7 June 2013
March 2012, DG’s of DMR, and DEA met to recommend options to Ministers

6. PROCESS FOLLOWED TO STREAMLINE
Matrix of three policy options on how to handle the Mine Environment Function was developed
Option 1 – Move environment function to DEA
Would require legislative amendments of NWA, MPRDA, NEMA
Posed constitutional challenges
Option 2 – Keep the environment function at DMR, include listed activities, and move appeals to DEA
Time frame alignment with DWS
Option 3 – Leave functions where they are in the three departments
Integrated licensing system across three departments
Legislative amendments
Joint decision making

7. In principle Agreement by the Ministers:
PROCESS FOLLOWED TO STREAMLINE
In principle Agreement by the Ministers:
Environmental Authorisations in respect of mining, prospecting will be regulated under one system prescribed by NEMA
Minister of Mineral Resources will be the designated competent Authority in terms of NEMA to implement the environmental system relating to mining /prospecting
Minister of Environment will be the designated Authority to deal with appeals related to environmental authorisations in respect of mining/prospecting
MPRDA and NEMA legislation to be amended accordingly to effect the agreement

8. GOVERNANCE STRUCTURES INVOLVED
MINISTER
Mineral Resources
MINISTER
Environmental Affairs
INTER DEPARTMENTAL PROJECT IMPLEMENTATION COMMITTEE
ROTATING CHAIR DG
Mineral Resources DG
Environmental Affairs DG
Water Affair and Sanitation
Task Team
Joint Planning
Task Team
Capacity
Task Team
Co Ordinated Timeframes
Task Team
Legislative
Amendments
Task Team
Enforcement
Task Team
Communications

9. The mining and prospecting processes will follow the MPRDA process
THE BRIEF
The mining and prospecting processes will follow the MPRDA process
300 days for MR’s and
180 days for PR’s
The Environmental Authorisation in terms of NEMA and Water Use licenses application in terms of NWA will be initiated directly after the acceptances of the application in terms of the MPRDA
The Process will run parallel and the decisions will be taken simultaneously

10. OUTLINE OF AN APPLICATION PROCESS Applications lodged are processed in the following phases:
First phase - Acceptance or rejection of applications
(Section 16 & 22 of the Act- Rejections to take place within 14 days of receipt)
Second phase - Adjudication (internal)
180 days for EMP to be submitted and 120 days to approve EMP.
Other adjudications aligned to EMP timeframes
In terms of NEMA, Environmental Authorisation timeframe is still aligned)
Third phase - Granting or refusal
Governed by granting criteria in sect 17 and 23 of the Act.
Timeframe aligned to Environmental Timeframes as per both MPRDA and NEMA
Fourth phase – Appeals ( no subsequent rights to be considered while there are appeals pending).

11. ALIGNMENT OF PROSPECTING RIGHT PROCESS

12. or BA Process: Where DMR is Competent Authority + +
MPRDA Application Accepted
BA Process: Where DMR is Competent Authority
Pre-application (Optional)
WML
AEL
10 days
WUL
MPRDA
Follows NEMA EIA Process
Notice of intent acknowledged
DMR Continues to process MPRDA application
BEE Proposal
Mine Health and Safety
Application +
Consultation BAR & EMPR +
Closure Plan
90 days
Public Participation including CA (30 days)
Incorporate PP comments
Site inspection & permission to proceed
197 DAYS (Non- substantive)
Submit BAR, EMPr & Closure Plan or
Notification of addition 50 days PP
WULA submitted
Non substantive 147 days
BAR and EMPr review
Public participation including CA (30 days)
Incorporate PP comments
50 days
57 days
MEM RECOMMENDATION
WML RECOMMENDATION
AEL RECOMMENDATION
WUL A RECOMMENDATION TO DMR
FINAL recommendation: MWP
BEE, SLP
MH&S
EA Decision prerequisite for MPRDA Decision
Submit BAR, EMPr & Closure Plan
BAR and EMPr review
157 days
247 DAYS (Substantive)
NON SUBSTANTIVE
10 days MLA
57 days
50 days
10 days RM & RLC – INCL DWS
50 days
Decision
WML ISSUED
WUL
ISSUED
30 days MPRDA
Decision
SUBSTANTIVE
60 days
AEL Decision
(other)
50 days
Decision
In event of substantive S&EIr process all time-frames extended by 50 days
90 days
ENVIRONMENTAL AUTHORISATION APPEAL FINALISED
EA APPEAL DECISION PREREQUISITE FOR MPRDA DECISION BECOMING EFFECTIVE

13. ALIGNMENT OF PROSPECTING RIGHT PROCESS
The timeframe kicks in when the application for an Environmental Authorization is received.
The left hand column represents timeframes for all environmental Authorisations in the country regardless of the sector or who the Competent Authority is.
DMR is the Competent Authority for Environmental Management related to the impacts of prospecting sites
Waste Management Licences related to prospecting sites will also be issued by DMR

14. ALIGNMENT OF PROSPECTING RIGHT PROCESS
Air Quality Licences related to Prospecting will be migrated to DMR once constitutional issues are resolved.
The timeframe will in total be 180 days for Prospecting rights until the date of issuing an environmental Authorisation.
DW&S will run their process in parallel. Depending on catchments they will not always achieve 180 days, but will achieve 300 days to a decision. i.e. there will be cases where a WUL will take 4 months longer than DMR

15. ALIGNMENT OF MINING RIGHT PROCESS
"Implication Process" should read "Implementation Process"
There are two slides referring to invesment being "or even hundreds of billions" Not sure of that level - rather delete.
Explanetory Slide on MR process refers to Prospecting rights. Please correct to mining rights.
ADDITIONS

16. or S&EIr Process: Where DMR is Competent Authority 44 days 43 days
MPRDA Application Accepted
S&EIr Process: Where DMR is Competent Authority
Pre-application (Optional)
WML
AEL
10 days
WUL
MPRDA
Application
Consultation Scoping report
Follows NEMA EIA Process
Notice of intent acknowledged
(10 days)
DMR Continues to process MPRDA application
BEE Proposal
SLP
Mine Health and Safety
44 days
public participation including CA (30 days)
incorporate PP comments
43 days
Scoping Report Submitted
Site inspection & permission to proceed
(30 days)
43 days accept or
Reject & Refuse application
300 DAYS (Non- substantive)
develop EIR & EMPr
Consultation EIR & EMPr
WULA submitted
(100 days)
Non substantive 250 days
106 days
Submit EIR & EMPr or
Notification of addition 50 days PP
EIR & EMPr review & Final recommendation
Consultation EIR & EMPr
57 days
PP incl CA (30 days) & Include comments (20 days)
WML RECOMMENDATION
AEL RECOMMENDATION
110 DAYS
WUL A RECOMMENDATION TO DMR
FINAL recommendation: MWP
BEE, SLP
MH&S
MEM RECOMMENDATION
50 days
EA Decision prerequisite for MPRDA Decision
Submit EIR & EMPr
EIR & EMPr review & Final recommendation
350 DAYS (Substantive)
NON SUBSTANTIVE
157 days
10 days MLA
50 days
57 days
10 days RM & RLC – INCL DWS
50 days
DMR / NEMA
EA ISSUED
WML ISSUED
WUL
ISSUED
30 days MPRDA
Decision
SUBSTANTIVE
60 days
AEL Decision
(other)
DMR / NEMA
EA ISSUED
50 days
90 days
In event of substantive S&EIr process all time-frames extended by 50 days
90 days
ENVIRONMENTAL AUTHORISATION APPEAL FINALISED
EA APPEAL DECISION PREREQUISITE FOR MPRDA DECISION BECOMING EFFECTIVE

17. ALIGNMENT OF MINING RIGHT PROCESS
The timeframe kicks in when the application for an Environmental Authorization is received.
The left hand column represents timeframes for all Environmental Authorisations in the country regardless of the sector or who the Competent Authority is.
DMR is the Competent Authority for Environmental Management related to the impacts of prospecting sites
Waste Management Licences related to prospecting sites will also be issued by DMR
Air Quality Licences related to Mining will be migrated to DMR once constitutional issues are resolved.
The timeframe will in total be 300 days for mining rights until the date of issuing an Environmental Authorisation.
DW&S will run their process in parallel and will achieve 300 days to a decision.

18. NEMA SCENARIO MPRDA SCENARIO
MPRDA Application Accepted
MPRDA SCENARIO
MPRDA Application Accepted
Apply Immediately
(2008 Acts NEMA & MPRDA)
180 days to submit EMP
Environmental
Application
EMP Submitted
Consult Competent Authorities
60 days
Public Participation
AND
Public Participation
44 days
Consult Competent Authorities
Scoping Report Submitted
43 days
Scoping Report Submitted
43 days to accept or reject
300 days
Develop EIR & EMPr
300 days
43 days to accept or reject
250
days
Develop EIR & EMPr
10 days
106 days
Submit EIR & EMPr
Submit EIR & EMPr
EIR & EMPr review & Final recommendation
EIR & EMPr review & Final recommendation
57 days
MEM RECOMMENDATION
MEM RECOMMENDATION
10 days MLA
10 days RM & Regional Licensing
50 days 50
days
30 days
MPRDA DECISION

19. RESOURCE IMPLICATIONS OF THE ALIGNMENT PROCESS
Additional officials required at DMR, to effectively implement NEMA. These resources requirements were based on:
longer iterative process not previously required in terms of the MPRDA
Additional functions not previously required such as listed activities, waste management,
the review of documents not previously required in terms of the MPRDA process.

20. RESOURCE IMPLICATIONS OF THE ALIGNMENT PROCESS
National Treasury made funds available for goods and services which had to be reclassified for compensation of employees.
Funds used to create additional 35 Assistant Director positions and filled
Based on an implementation plan the DMR:-
Embarked on a recruitment process
Provided for IT equipment for the additional personnel
Provided for accommodation and furniture.

21. ELEMENTS OF THE IMPLEMENTATION PLAN

22. ELEMENTS OF THE IMPLEMENTATION PLAN

23. CURRENT STATUS AND IMPLEMENTATION PROGRESS Work completed
Agreement and mapping on timeframes alignment
Amendment of legislation
Appointment and placement of additional 35 personnel in regions,
Provision of office space, IT equipment, furniture etc.
Adjustment to business processes
Change Management workshops have been conducted for all environmental personnel.
Training on Air Quality and Waste Management Licensing completed for all Environmental officials.
Guidelines Templates Checklists completed to process applications (Requires adjustments once DEA finalised revision of EIA Regulations)

24. CURRENT STATUS AND IMPLEMENTATION PROGRESS - Ongoing
Enforcement Task Team engaged in Joint Inspections with DEA and DWS and support from NPA.
DMR Regions actively participating in enforcement activities of DEA and DWS.
All Regional Environmental Managers engaged in Experiential Training (Currently engaged in process prosecuting illegal mining cases on a case study basis in conjunction with DEA.
Pretoria University has been appointed to train Environmental Mineral Resource Inspectors. (EMRI training). 31 people attending this course, and will it be held at the University of Pretoria.
Course commences 24 November 2014.
Final Exam End January 2015.
One of the Existing Chief Directorates in Mineral Regulation being dedicated to Environmental Enforcement.

25. CONCLUSIONS
This project represent a best model on coordinated government effort in improving the investment climate.
The one system of mining, environment and water use authorisation aims at implementation of the mining sector strategy

26. Thank You