DEADLINE FOR COMPLIANCE WITH FINANCIAL PROVISIONING REGULATIONS, 2015 EXTENDED
Notice Title: National Environmental Management Act 107 of 1998: Amendments to Financial Provision Regulations, 2015
Government Gazette Notice: GN 991 in GG 41921 of 21 September 2018
Commencing date: 21 September 2018
The Acting Minister of Environmental Affairs published amendments to the Financial Provision Regulations, 2015 on 21 September 2018. The amendments include, inter alia, the insertion of regulation 17B and the repeal of Notice No. 1314 of Government Gazette 40371 of 26 October 2016.
The newly inserted Regulation 17B read as follows:
“17B. Extension of the transitional period
Unless regulation 17A applies, a holder, or holder of a right or permit who applied for such right or permit prior to 20 November 2015, regardless of when the right was obtained-
(a) must by no later than 19 February 2020 comply with these Regulations; and
(b) shall, until 19 February 2020, be regarded as having complied with the provisions of these Regulations if such holder has complied with the provisions and arrangements regarding financial provisioning, approved as part of the right issued in terms of the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002)”
Consequently, the deadline for compliance with the Regulations has been extended to 19 February 2020.
How to ensure compliance at my operation?
Operations that applied for a prospecting right, mining permit, mining right, exploration right or production right (“right or permit”) before 20 November 2015 must review, assess and adjust its financial provisions in accordance with regulation 11 of the Regulations by 19 February 2020 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 responsible for mineral resources.
In the interim, the requirements of the Mineral and Petroleum Resources Development Act 28 of 2002 and the Mineral and Petroleum Resources Development Regulations, 2014 relating to financial provisioning must be complied with.
Operations that applied for a right or permit after 20 November 2015 must, however, immediately after obtaining the right or permit ensure compliance to the Regulations.
What is Shangoni’s approach?
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.
Please contact Emma Fourie at 012 807 7036 or email@example.com from our Closure and Rehabilitation department for assistance or queries.