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Deadline for Financial Provisioning Regulations Extended

January 22, 2020

Department of Environment, Forestry and Fisheries

22 January 2020

An amendment to the Financial Provisioning Regulations is in place.

The environment, forestry and fisheries department published the amendment in Government Gazette 42956.

It was drawn up in terms of the National Environmental Management Act.

The regulations, published in 2015, 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 on extension of the transitional period is inserted.

Holders of a right or permit who made application prior to 20 November 2015 need to comply with the regulations by no later than 19 June 2021.

They shall also, until 19 June 2021, be regarded as having complied with the provisions of the regulations if financial provisioning was put in place as outlined in the issued right or permit.