MINERAL AND PETROLEUM RESOURCES DEVELOPMENT BILL: AN OVERVIEW PRESENTATION TO THE PORTFOLIOCOMMITTEE ON MINERALS AND ENERGY
16 March 2005
Structure
Preamble
Definitions
Fundamental Principles
Administration
Mineral and Environmental Regulation
Minerals and Mining Development Board
Petroleum Exploration and Production
General and miscellaneous
Laws repealed (Schedule 1)
Transitional Arrangements (Schedule II)
Preamble
- Recognises that minerals are non-renewable;
- National patrimony;
- Environmental protection and sustainable development
- Promotion of local and rural development
- Affirms state's commitement to tranformation
- Commits state to eradication of all forms discrimination
- Constitutional obligation to redress;
- Reaffirrms state commitment to security of tenure; and
- Emphasises the need for a competitive and efficient
Fundamental Principles
(Chapter 2)
- Recognise right of state to exercise sovereignty of mineral resources;
- Give effect to principle of state custodianship of mineral resources;
- Promote equitable access to mineral resources; (new)
- Mineral Resources belongs to South Africa;
- Expand opportunities for HDP to enter industry;
- Promote economic growth and development
- Promote employment and advance welfare of all SA citizens
- Guarantee security of tenure iro prospecting and mining operations
- Ensure sustainable development of mineral resources
- Ensure social responsibility
- Custodianship
of mineral resources (cl 3)
- Mineral resources common heritage of all SA and state is custodian thereof;
- State to control and manage access to mineral resources
- Minister responsible for ensuring the sustainable development of nation's mineral resources
Interpretation (cl 4)
- To be interpreted with law the object of the Bill;
- Supersedes common law principles contrary to those of the Bill';
- Subject to the Constitution;
Fundamental Principles (C15)
- Legal nature of PRs, E(Rs, MRs, and PRs
- Limited real right iro the mineral and land ;
- Access and use of property to which right relates;
- Prospect or mine for mineral or explore or produce petroleum;
- Remove and dipose of minerals
- No prospecting or mining without
- Environmental management programme
Fundamental Principles
- Administrative Justice (cl 6)
- Decision or administrative action must be conducted
- Within reasonable time
- According to the principles of lawfulness, reasonableness and procedural fairness
- Decision must be in writing and accompanied by written reasons
- First-come-first-serve applies (cl 9)
Administration (Chapter 3)
- Original powers vest with Minister
- Empowers Ministers to divide RSA into regions (cl 7)
- Empowers DG to designate regional managers - promote efficiency (cl 8)
Mineral and Environmental Regulation (4)
- Order processing applications (cl 9)
- Competition preference to BEE
- RM to make know applications received;
- If objection, RM sends objections to REMDEC
- All
rights are transferable provided (11)-
- Proposed holder can comply with the obligation of the right concerned;
- Can comply with social plan;
- A competent applicant; and
- Can carry out environmental obligations
- No consent required to mortgage rights
Mineral and Environmental Regulation
- Prospecting right, mining right, mining permit and retention permit (els 13, 19, 24, & 28)
- Types of petroleum titles
- Reconnaissance permit, technical co-operation permit Exploration right and production right (69,71,74, 78)
- All mineral titles applications lodged at regional offices
- RMs assesses applications for compliance;
- Notifies public about application;
- Liaises with interested and affected parties;
- All applications for petroleum titles lodged with PASA
- The Minister must grant a mining right if (cl 14)-
- Mineral resources can be mined optimally;
- Applicant has access to finance and technical ability
- Estimated expenditure compatible with prospecting work programme
- Prospecting will not have serious negative impact on the environment;
- Applicant can comply with requirement of MHSA;
- Applicant is not in contravention of provision of the Act; and
- Granting of right will further BEE and jobs
- Holder of PR has exclusive right to apply and be granted
- Renewal of PR (16 (1) (a)) ;and
- Mining right (16(1)(b)
- The Minister must grant a mining right if (cl 20)-
- Mineral resources can be mined optimally
- Applicant has access to financial resources;
- Financial plan compatible with intended mining operation;
- Mining will not have severe negative impact on the environment
- Applicant has provided for social plan
- Applicant is not contravention of porvision of the Act; and
- Granting of right will further BEE and jobs
- Minister must refuse if application does not comply with requirement (20(2);
- Holder of MR has exclusive right to apply and be granted renewal of mining right (22(1)
- grants and issues all mineral and petroleum titles
- Approves environmental management programme (36)
- Promotes mineral beneficitiation (23) ; and
- Promotes job retention where approperiate (45)
Minerals and Mining Development Board (Chp 5)
- Appointed by Minister
- Composition (between 14 and 18 members) -
- Government;
- Civil society representatives (NGOs and CBOs);
- Organised labour
- Organised business
- To advise the Minister on:
- any matter referred to the Board;
- Sustainable development of minerals;
- Transformation and downscaling of the industry; and
- Dispute resolution
- Promote HRD in the industry
- Report to Minister any matter relating application of the Act;
- Enquire and report on any matter relating to the object of the Act
Petroleum exploration and production
- Caters for petroleum specific legislative framework;;
- The main body of Bill applies to this chapter;
- Applications are lodged with PASA
- Function of PASA, in the main, promotional (same as RMs)
- Funded by money appropriated by Parliament
General and Miscellaneous (Chapter 7)
- Inspections;
- Access to the courts;
- Offences and penalties;
- Transformation of the industry
Transitional Arrangements (Schedule II)
- Ensure security of tenure to existing prospecting and mining;
- Give holder of old order prospecting right opportunity to comply with provisions of the
- Act; and
- Promote equitable access to nation's mineral resources, operations.
Transitional Arrangements (Schedule II)
- Pending applications will be treated ito the new Act;
- Old order rights grouped into three tables:
- Old order prospecting right - linked to existing prospecting operations- 2years to convert;
- Old order mining right -linked to existing ruining operation – 5 years to convert;
- Unused old order right - not linked to any operation - 1year to apply for PR or MR.
- Old order prospecting and mining rights will be converted on submission of required documents/information (items 4, 5 and 6)
- Unused old order rights, will be subjected to an application process i.t.o section 13 or 19 (item 7)
- All old order right will cease to exist:
- at the expiry of the relevant transition period;
- upon the conversion into or granting of a prospecting or mining right
- Certain reservations i.t.o of section 48 of the Minerals Act, 1991 will continue in force
- Approved EMPs will continue in force
DMDs to continue functioning as such until an official is designated i.t.o section 8
Conclusion
- The Bill is in line with Government policy;
- An attempt was made to address the concerns raised by most stakeholders;
- This document is now in the hands of the elected representatives of the people.