Meeting of Portfolio Committee for Minerals and Energy 25 March 2008, Cape Town

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

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

3. 2. Proposed further environmental amendments to the Mineral and Petroleum Resources Development Amendment Bill. 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;

4. 2. Proposed further environmental amendments to the Mineral and Petroleum Resources Development Amendment Bill (continue) • 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.

5. 2. Proposed further environmental amendments to the Mineral and Petroleum Resources Development Amendment Bill (continue) 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.

6. 2. Proposed further environmental amendments to the Mineral and Petroleum Resources Development Amendment Bill (continue) • 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.

7. 2. Proposed further environmental amendments to the Mineral and Petroleum Resources Development Amendment Bill (continue) • 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.

8. Summary of proposed further environmental amendments in MPRDA Amendment Bill

9. Summary of proposed further environmental amendments in MPRDA Amendment Bill

10. Repeal MPRDA - NEMA Bill/contextualise SEMA

11. Repeal MPRDA – NEMA Bill/contextualise SEMA

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. Minister of Minerals and Energy 5 MINE ECONOMICS ENVIRON MANAGEMENT SOCIAL 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

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