AMENDMENTS TO THE FINANCIAL PROVISIONING REGULATIONS, 2015
The Minister of Environmental Affairs has published amendments to the Financial Provisioning Regulations, 2015 (“the Regulations”) in GN R 1314 of 26 October 2016.
The amendments only relate to the transitional provisions and not to any of the amendments that were proposed in GN R1006 published on Friday 9 September 2016. Please click here for our previous environmental newsletter on the proposed amendments.
The transitional period for the review, assessment and adjustment of financial provision in regulation 17(5) has been deleted. The transitional period has been extended to 39 months from the date of commencement of the Regulations (20 February 2019).
So what for my operation?
Any person who held a right or permit when the Regulations came into force on 20 November 2015, or who had applied for the right or permit before the Regulations came into force must review, assess and adjust its financial provisions in accordance with regulation 11 of the Regulations by 20 February 2019 and submit it together with the required plans and reports, a copy of the independent auditor’s reports and proof of arrangements to provide the financial provision for approval by the Minister of Mineral Resources. In the meantime, compliance to the MPRDA, as well as the regulations thereunder, must be ensured with regards to financial provisioning.
Persons who submitted an application for a mining right or permit and obtained such right or permit after 20 November 2015 are, however, obliged to ensure compliance to the Regulations.
What is Shangoni’s approach?
During the transitional period annual financial provisioning assessments should be done in compliance with the requirements of the MPRDA and the MPRDA guideline document.
Companies that have commenced with the process of reviewing and aligning its financial provisions in compliance with the Regulations should not stop the process and leave everything until the last minute. It will still be beneficial for operations to have a closure and rehabilitation plan in place that is aligned with mine planning.
Shangoni will continue to monitor proposed future changes to the Regulations and keep our clients informed.
For assistance or queries please contact Jan Nel 082 379 5935 or email@example.com from our Closure and Rehabilitation department.