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Upstream Petroleum (Oil and Gas) Bill Under Development

February 4, 2019

Department of Mineral Resources

The mineral resources minister, Gwede Mantashe, has reiterated that a Draft Upstream Petroleum (Oil and Gas) Bill is in the process of being developed.

The minister was speaking at the 2019 Annual Investing in African Mining Indaba in Cape Town.

He added that the Mineral and Petroleum Resources Development Amendment Bill has been withdrawn from parliament in order to separate oil and gas from mining legislation.

The proposed bill will provide “certainty to the upstream petroleum industry and stimulate growth and development in this sector”.

As regards mining, the Mineral and Petroleum Resources Development Act will continue to apply.

The minister declared that his department remained committed to “addressing challenges in our internal processes, which include allegations of double-granting of licenses, improper application of Section 54 of the Mine Health and Safety Act and backlogs in the issuing of licenses”.

The investigative team that was set up to look into these matters will conclude its work soon after which a way forward will be mapped out.

The minister indicated that the online application system- SAMRAD- will be improved to “ensure its transparency and efficiency are enhanced, and that it provides world-class service to investors”.

He also confirmed that government condemned illegal mining in South Africa and measures were being taken to combat the illicit activities.
In terms of the relationship between mining and the adjacent communities, government is developing Community Resettlement Guidelines.

“These Guidelines are consistent with section 54 of the MPRDA which provides for engagement and compensation of communities for loss or damage as a result of mining development. They are intended to safeguard the rights and interest of communities where resettlement takes place and will be finalised in this financial year in consultation with communities and interested and affected parties.”