Department of Minerals and Energy

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Department of Minerals and Energy Briefing to
NCOP Finance 07 August 2008 Minerals and
Petroleum Resources Amendment Bill B10D-2007.

2
Team

• Ms N Zikalala Deputy Director- General Mineral
  Policy and Promotion
• Ms L Mekwe Chief Director Mineral and Mining
  Policy
• Ms Ntombi Mnyikiso State Law Advisor

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Status of the Bill

• PPC on Minerals and Energy adopted the Bill
  B10B-2007 on the 20th June 2007
• On the 22nd July 2007 the Bill was presented to
  the NCOP
• NCOP referred the Bill back to the PPC to allow
  DEAT LRC to make their submission
• MPRDA has been amended to reflect the agreement
  entered and concluded by both Ministers
• The Bill B10D-2007 has been further adopted by
  the PPC on 24 June 2008
• The National Assembly adopted the said Bill on
  the 26 June 2008

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Rationale for the Amendment

• Technical errors in the MPRDA
• Ambiguities in certain definitions and the need
  to define certain concepts
• Separation of powers (Ministry of DME and the
  Finance Ministry)

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Rationale for the Amendment

• The need to align the MPRDA with environmental
  principles in terms of NEMA (National
  Environmental Management Act, 1998 (Act 107 of
  1998)
• The need to rectify certain omissions of the
  existing old order rights
• Problems with appeal and review of administrative
  decisions taken in terms of the MPRDA

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Amendment of section 1

• Introduced the definition of Beneficiation,
  Council for Geoscience, environmental
  authorisation, effective date
• Substituted the definition of community, Mining
  Titles Office

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• Amendment of Sections 16, 22, 27, 74, 76,79 and 83

• the order of processing an application for a
  prospecting right, mining right, mining permit,
  reconnaissance permit, exploration right,
  production right or technical co-operation permit
  while there is an appeal pending in respect of
  the same mineral and land

8

• Amendment of Sections 17 and 23

• If the application relates to land occupied by a
  community, the Minister may impose such
  conditions as are necessary to promote the rights
  and interests of the community, including
  conditions requiring the participation of the
  community

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Amendment of section 18,19,21,30 and 43

• Empowered Council for Geoscience to be the
  custodian of all progress reports and data of
  prospecting operations gathered by the holder of
  a prospecting right.

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Amendment of sections 16,18,19, 22, 23, 24, 25,
32, 35, 38, 39, 40, 41, 42, 43, 46, 47, 71, 74,
79, 80, 84, 93, 102, and 106

• to align the MPRDA with environmental principles
  in terms of the NEMA

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Amendment of section 40

• to enable the Regional Mining Development and
  Environmental Committee to make recommendations
  to the Minister on environmental issues.

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Amendment of sections 5,11,17,19,23,25,35,78,80,82
, 84,and 86

• harmonises the MPRDA with the Mining Titles
  Registration Act, 1967(Act 16 of 1967) as amended
  and compels holders of rights granted in terms of
  the MPRDA to register their rights (section 5).

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Amendment to Section 59(20)(i)

• Provision for the representation of designated
  agency in the Board

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Amendments (cont.)

• Change in the composition of the Mineral and
  Petroleum Board from the minimum of 14 members to
  the minimum of 17 members and from the maximum of
  18 to the maximum of 20 members.

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Schedule II of the Transitional Chapter in the
Act is amended

• to rectify certain omissions of existing old
  order rights, such as mynpachten, tributing
  agreements, old order mining rights, OP26 mining
  lease, OP26 sublease, OP26 right and to rectify
  certain technical errors in the MPRDA.

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Amendment of Item 7Insertion of 3A-3B

• 3A. If the applicant does not comply with the
  requirements of the sub-item (2) and (3), the
  Regional Manager must in writing request the
  applicant to comply within 60 days of such
  request.
• 3B. If the applicant does not comply with subitem
  3A, the Minister must refuse to convert the right
  and must notify the applicant in writing of the
  decision within 30 days with reasons.

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Amendment of Item 7Insertion of 3C

• 3C. If the application relates to land occupied
  by the community, the Minister may impose such
  conditions as are necessary to promote the rights
  and interests of the community, including
  conditions requiring the participation of the
  community.

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Amendment of Item 9

• 2. The holder, user or acquirer of any
  reservation, permission or right to use the
  surface of land contemplated in subitem (1) must
  register such reservation, permission or right in
  the Mining Titles Office Mineral and Petroleum
  Titles Registration Office within one six years
  from the date on which this Act took effect and
  if such holder, user or occupier fails to
  register such reservation, permission or right,
  the reservation, permission or right shall cease
  to exist.".

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Amendment of Item 12addition 5

• 5. Despite the provisions of the Prescription
  Act, 1969 (Act No. 68 of 1969), prescription in
  respect of a claim for compensation shall only
  commence to run
• (a) when the claimant has been informed in
  writing by the Director -General that he or she
  has denied the validity of the claim and the
  claimant has not appealed against such denial in
  terms of section 96 or
• (b) where a claimant decides to appeal the denial
  of the Director- General in terms of section 96,
  when the claimant has been informed in writing by
  the Minister of the confirmation of the said
  denial or

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Amendment of Item 12addition 5

• 5. Despite the provisions of the Prescription
  Act, 1969 (Act No. 68 of 1969), prescription in
  respect of a claim for compensation shall only
  commence to run
• (c) 180 days after the claimant has been
  informed in writing that the Director-General has
  refused a determination and payment of
  compensation.

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Chairpersons Amendment at the National Assembly

• Sec 107 The principal Act as amended by this Act
  is amended with effect from a date 18 months
  after the date on which the provisions relating
  to prospecting mining exploration and production
  and related activities come into operation in
  terms of section 14(2) of the National
  Environmental Management Amendment Act, 2007, in
  order to revert the powers of the Minister,
  insofar as the issuing of environmental
  authorisations, the submissions of application
  for such authorisation and the submission of
  environmental reports are concerned to the
  Minister of Environmental Affairs and Tourism.

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Propose Amendmentsto B10D Bill 2007

• Refer to word document.

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Conclusion

• Amendment will bring about
• technical improvement to the MPRDA
• Efficient and effective administration of the
  states mineral resources
• Enhancement of cooperative governance between
  organs of state ( Minister of DME and the
  Regional Mining Development and Environmental
  Committee)
• Confirmation of one environmental system
• Harmonisation of the MPRDA with other legislation
  ( NEMA, Mining Titles Registration Act No16 of
  1967 (as amended), Diamond Amendment Act No. 30
  of 2005, and the Mine Health and Safety Act No.
  29 of 1996)

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Thank You