Department of Minerals Department of Minerals and Energyand Energy

Briefing to NCOP :Briefing to NCOP :Finance Finance

07 August 200807 August 2008

Minerals and Petroleum Minerals and Petroleum Resources Amendment Resources Amendment

Bill Bill [[ B10D-2007]. B10D-2007].

Team

1. Ms N Zikalala: Deputy Director- General: Mineral Policy and Promotion

2. Ms L Mekwe: Chief Director: Mineral and Mining Policy

3. Ms Ntombi Mnyikiso: State Law Advisor

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

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)

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

Amendment of section 1

• Introduced the definition of Beneficiation, Council for Geoscience, environmental authorisation, effective date

•Substituted the definition of community, Mining Titles Office

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

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

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.

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

Amendment of section 40

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

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).

Amendment to Section 59(20)(i)

•Provision for the representation of designated agency in the Board

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.

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.

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.

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.

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.".

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

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”.

Chairperson’s 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.”

Propose Amendmentsto B10D Bill 2007

Refer to word document.

ConclusionAmendment will bring about

• technical improvement to the MPRDA

• Efficient and effective administration of the state’s 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)

Thank You