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Amendments Proposed to Financial Provisioning Regulations

April 23, 2021

Department of Environment, Forestry and Fisheries

Amendments are proposed to Financial Provisioning Regulations in terms of the National Environmental Management Act.

The environment, forestry and fisheries department published the draft amendments to the transitional arrangements in Government Gazette 44477 for comment.

The Regulations deal with financial provision for prospecting, exploration and mining operations.

In particular, they seek to ensure that sufficient financial provisioning is in place to cover the costs of rehabilitation and remediation of environmental impacts due to mining activities.

Applicants or holders of a right or permit need to make financial provision to guarantee the availability of sufficient funds to undertake rehabilitation and remediation of the adverse environmental impacts of prospecting, exploration, mining or production operations.

Financial provision is also needed for decommissioning and closure activities at the end of prospecting, exploration, mining or production operations.

A new Regulation 17B is proposed.

A holder, or holder of a right or permit who applied for such right or permit prior to 20 November 2015, irrespective of when the right or permit was obtained, needs to comply with the regulations by no later than 19 June 2022.

Holders will also, until 19 June 2022, be regarded as having complied with the regulations if such holder has complied with the provisions and arrangements regarding financial provisioning as outlined in the issued right or permit.

Comment is invited within 30 days of the date of publication.