ATC140311: Report of the Portfolio Committee on Mineral Resources on the Mineral and Petroleum Resources Development Amendment Bill [B15-2013], (National Assembly– section 76), dated 11 March 2014
Mineral Resources and Energy
Report of the
Portfolio Committee on Mineral Resources on the
Mineral and Petroleum Resources Development Amendment Bill [B15-2013],
(National
Assembly section 76), dated 11 March 2014
The
Portfolio Committee on Mineral Resources, having considered the
Mineral and Petroleum Resources Development
Amendment Bill
(National Assembly section 76, referred to it and
classified by the Joint Tagging Mechanism as a section 76 bill), reports the
Bill with amendments [B15A-2013].
The
Bill was amended as follows:
CLAUSE 1
1.
On page 3, in line 23, to omit "
and
petroleum resource
".
2.
On
page 3, in
line 23, after "mineral" to insert "
or mineral product
".
3.
On
page 3, in line 35, after "
persons
" to
insert:
"
within
a
district municipality as defined in the
Local Government: Municipal Structures
Act, 1998 (Act No. 117 of 1998)
".
4.
On
page 3, from line 44, to omit the definition of
"concentration of rights".
5.
On
page 3, after line 48, to insert the following
definition:
Council
means the Ministerial Advisory Council established in section 56A
;
6.
On
page 3, in
line 60, to omit paragraph
(g).
7.
On
page 4, from line 5, to omit the definition of
designated minerals and
substitute with the following
definition:
designated
minerals
means such minerals
as declared by the Minister in the
Gazette,
which constitute input into local beneficiation programmes in line with
national development imperatives;
.
8.
On
page 4, from line 8, to omit the definition of
"developmental pricing
conditions".
9.
On
page 4, from line 17, to omit the definition of
"free carried interest" and substitute with the following definition:
free
carried interest
means interest allocated to the State in
exploration or production operations without any financial obligation on the
State;
10.
On
page 4, after line
46, to insert the following definition:
"
'
historic residue stockpiles'
means any debris, discard, tailings, slimes, screening, slurry, waste rock,
foundry sand, beneficiation plant waste, ash or any other product derived from
or incidental to a mining operation and which is or was stockpiled, stored or
accumulated for potential re-use, or which is or was disposed of, by the holder
of any right or title (including common law ownership) other than a prospecting
right, mining right, mining permit, exploration right or production right
issued in terms of this Act;
".
11.
On
page 5,
after line 11, to insert the following definition:
mine gate price
means
the price (excluding VAT) of the mineral or mineral product at the time that
the mineral or mineral product leaves the area of the mine or the mine
processing site, and excludes transport and delivery charges from the mine area
or the mine processing site to the local
beneficiator
;
12.
On
page 5, in line 15, to omit "
, reclamation permit
".
13.
On
page, 5 in
line 18, after health to insert
and safety
.
14.
On
page 5, in line 28, to omit "
, reclamation permit
".
15.
On
page 5,
after line 43, to insert the following:
(u)
by
the insertion after the definition
of production right
of the following
definition:
production
sharing
agreement
means an agreement between the State and the petroleum company on how the
extracted resource will be shared between the State and the petroleum company
.
16.
On page 5, in line 50, after
health
to insert
and safety,
.
17.
On
page 5, in
line 53, to omit "
subsection
" and to substitute "
paragraph
".
18.
On
page 5, from
line 59, to omit the definitions of "reclamation operation" and
"reclamation permit":
19.
On
page 6, after line 15, to insert the following:
(y)
by
the insertion after the
definition of
Registrar of the
following definition:
security
of supply
means orderly supply
of designated minerals or mineral products for local beneficiation in order to
support and sustain national development imperatives;
.
20.
On
page 6,
after line 17, to insert the following definition:
State participation
means the right of
the State to participate in petroleum development at exploration and production
operations, including, inter alia:
(a)
free carried interest and may include production sharing
agreements in production operations; and
(b)
representation
at the joint project
committee of the exploration or production operation;.
CLAUSE 2
1.
On
page 6, in
line 56, after "promote" and to insert "
optimal
".
CLAUSE 3
1.
On
page
7, from line 9, to omit paragraph
(b)
.
CLAUSE 5
1.
Clause rejected.
NEW CLAUSE
1.
That the following be a new Clause:
Amendment of section 9 Act 28 of 2002, as amended by
section 6 of Act 49 of 2008
5.
The following section is hereby substituted
for section 9 of the principal Act:
[Order
of processing of applications
9.
(1)
If a Regional Manager receives more than
one application for prospecting right, a mining right or a mining permit, as
the case may be, in respect of the same mineral and land, applications received
on
(a)
the same day must be regarded as having been received at the same time and must
be dealt with in accordance with subsection (2);
(b)
different
da
ys
must be dealt with in order of receipt.
(2)
When
the Minister considers applications received on the same da
y
he or she must give preference to applications from historically disadvantaged
persons]
"
Invitation for applications
9.
(1)
The
Minister must by notice in the
Gazette
,
invite applications (including in respect of land relinquished or abandoned or
which was previously subject to any right, permit or permission in terms of
this Act, which has been cancelled or relinquished or which has been abandoned,
or which has lapsed) for reconnaissance permissions, reconnaissance permit,
prospecting rights, exploration rights, mining rights, technical co-operation
permit, production rights and mining permits, in respect of any area of land,
block or blocks, and may prescribe in such notice the period within which any
application may be lodged with the Regional Manager and the procedures which
must apply in respect of such lodgment.
(2)
Any person may, after identifying an
area of land, block or blocks and the type of mineral, mineral product or form
of petroleum in or on such area or land, request the Minister to invite
applications in such area of land, block or blocks in terms of subsection (1).
(3)
Applications received in terms of
subsection (1) must be processed in accordance with the provisions of the Act,
including the terms and conditions upon which applications may be accepted,
rejected, granted or refused.
(4)
Any invitation referred to in subsection
(1) must not include any mineral, mineral product or form of petroleum and land
in respect of which another person holds a right or permit (excluding a
reconnaissance permit or reconnaissance permission and an application made in
terms of section 11 (2A)), or an application for a right or permit which has
already been lodged prior to such invitation, and which remains to be granted
or refused.
(5)
The Minister shall, when processing
applications, give preference to an application lodged by a person referred to
in subsection (2).
"
CLAUSE
6
1.
On page 8, in line 5, to omit "14
days and substitute with
[14 days]
the
prescribed period
.
2.
On page 8, from line 12, to omit
"within 30 days from the date of the notice"
and to substitute "
[within
30 days from the date of the notice]
to the Regional Manager within the
prescribed period
".
3.
On
page 8, in
line 19, after "
objection
" to insert "
and comments
".
4.
On
page 8,
from line 20, to omit "
within 30 days from date of such referral
"
and to substitute "
within the prescribed period
".
CLAUSE
8
1.
On
page 10,
from line 14, to omit "
and subject to such conditions as the Minister
may determine
" and to substitute "
as prescribed
".
2.
On
page 10,
from line 36, to omit
bank or
financial institution
and to substitute
bank or financial institution
.
CLAUSE
11
1.
On
page 11,
from line 21, to omit paragraph
(b)
.
2.
On page 11, from line 37, to omit
"60 days of the date of the notice"
and to substitute "
[60
days of the date of the notice]
the prescribed period
".
3.
On page 11, in line 42, after "
apply
",
to insert "
,where
necessary,
".
CLAUSE 12
1.
On
page 11,
after line 51, to insert the following:
(b)
by the substitution in subsection (1)
for paragraph
(c)
of
the
following paragraph:
(c)
the
prospecting will not result in unacceptable pollution,
ecological degradation or damage to the environment and an environmental
authorisation
[is]
has been
issued;;
2.
On
page 12,
from line 9, to omit paragraph
(g)
and
to substitute with the following paragraph:
"
(g)
the
applicant has, where necessary, submitted proof of
application for a licence for use of water in terms of the applicable
legislation.
".
3.
On
page 12, from line 16, to omit paragraph
(e).
4.
On
page 12, after line 26, to insert the following:
(g)
by the substitution for subsection (5)
of
the
following subsection:
(5)
A
[prospecting]
right granted in terms of subsection (1)
[
comes
into effect on the effective date]
shall
(a)
come
into effect on the
effective date; and
(b)
where an appeal
against the granting of the right or the approval of the environmental
authorisation has been lodged within the prescribed period, the
notarial
deed of granting shall not be executed until such
appeal has been finalised.
;
CLAUSE 13
1.
On
page 12, in line 36, to omit paragraph
(
c
A
)
and to
substitute:
(
c
A
)
where necessary include proof of
application for an amended environmental authorisation; and
"
2.
On
page 12, after line 44, to insert the following:
(e)
by
the substitution
in subsection (3) for paragraph
(c)
of the following paragraph:
(c)
compliance with the conditions of the
environmental
authorisation
[
.]
;
and
;
(f)
by
the insertion in
subsection (3) after paragraph
(c)
of
the following paragraph:
(
cA
)
the amended
environmental authorisation has, where necessary, been approved.
;
CLAUSE 14
1.
On
page 13, after line 3, to insert the following:
(a)
by
the substitution in subsection (1) for paragraphs
(a)
and
(b)
of the following paragraphs:
"(a)
subject
to section 18, the exclusive right to apply for
[and be granted]
a
renewal of the prospecting right in respect of the mineral and prospecting area
in question;
(b)
subject
to section (2),
the exclusive right to apply for
[and be granted]
a mining right in
respect of the mineral and prospecting area in question; and";
CLAUSE 15
1.
On page 13, from line 26, to omit
"
subject to such conditions as the Minister may determine
" and
to substitute "
as prescribed
".
2.
On page 13, in line 31, to omit "
section
16(4
)
(
c)
"
and to substitute "
section 16(4)
(a)
"
.
CLAUSE 17
1.
On
page 13,
from line 53, to omit paragraph
(c).
2.
On
page 14, in
line 15, to omit "
180 days of the notice
"
and to substitute "
the prescribed period
".
3.
On page 14, in line 17, after "
(d)
" to insert "
where
necessary,
".
CLAUSE 18
1.
On
page 14, in line 28, after paragraph to insert
(d)
,
.
2.
On
page 14, after line 29, to insert the following:
(d)
the
mining will
not result in unacceptable pollution, ecological degradation or damage to the
environment and an environmental authorisation
[is]
has been
issued;.
3.
On
page 14,
from line 42, to omit paragraph
(i)
and
to substitute with the following paragraph:
"
(
i
)
the
applicant has, where necessary, submitted proof of application for a licence
for use of water in terms of the applicable legislation
.
"
4.
On page 14, in line 47, to omit ";
and
" and to substitute with a full stop.
5.
On
page 14, from line 48, to omit paragraph
(b).
6.
On page 14, in line 61, to omit "
;
and
" and to substitute with a full stop.
7.
On
page 15, from line 1, to omit paragraph
(b).
8.
On
page 15,
after line 7, to insert the following:
(g)
by the substitution for
subsection (5) of
the
following subsection:
(5)
A
[mining]
right granted in terms of subsection (1)
[comes
into effect on the effective date]
shall
(a)
come
into effect on the effective date; and
(b)
where an appeal against the granting of
the right or the approval of the environmental authorisation has been lodged
within the prescribed period, the
notarial
deed of
granting shall not be executed until such appeal has been finalised.
;
CLAUSE 19
1.
On page 15, in line
18, to omit
include
and to substitute
where necessary include
proof of application for
".
2.
On
page 15,
after line 27, to insert the following:
(e)
by
the substitution in subsection (3) for paragraph
(d)
of the following paragraph:
(
[
c
]
d
)
compliance with the
conditions of the environmental
authorisation
[
.]
;
and;
(f)
by
the insertion in subsection (3) after paragraph
(d)
of the following paragraph:
(
d
A
)
the amended environmental authorisation has,
where necessary, been approved.
;
CLAUSE 21
Clause rejected.
1.
That the following be a new
Clause:
Amendment of section 26 of Act 28 of 2002, as amended
by section 22 of Act 49 of 2008
21.
Section 26 of the principal Act is
hereby amended
(a)
by
the
substitution for subsection (1) of the following subsection:
"(1)
The Minister
[may]
must in order to regulate the mining industry to meet
national development imperatives and to bring optimal benefit for the Republic
initiate
or promote the beneficiation of
[minerals]
mineral
resources
in the Republic
(a)
to ensure
transformation of the mining and other sectors involved in the beneficiation of
minerals or mineral products;
(b)
to ensure sustainability for the supply of minerals in the national
interest; and
(c)
to
develop local capacity
.";
(b)
by
the substitution for
subsection (2) of the following subsection:
"(2)
The Minister must
(a)
in
consultation with a
Minister of the relevant national departments designate any mineral or mineral
product for local beneficiation;
(b)
after
taking into
consideration the national developmental imperatives such as macro-economic
stability, energy security, industrialisation, food security and infrastructure
development; and
(c)
after
considering the
advice of the Council as contemplated in section 56B; and
publish
such conditions
required to ensure security of supply for local beneficiation in the prescribed
manner.
(c)
by
the insertion after subsection (2A) of the
following subsection:
"
(
2B)
Every
producer
of designated minerals
must
offer
to
local
beneficiators
a
prescribed percentage
of
its
production of
minerals
or
mineral
products
in prescribed quantities, qualities and timelines
at the mine gate price or agreed
price.
";
and
(d)
by
the substitution for
subsection (3) of the following subsection:
"
(3)
No person, other than a producer
(or an associated company of such
producer) in respect of its own production and who has complied with subsection
(2B), may export designated minerals or mineral products without the Ministers
prior written approval.
CLAUSE 22
1.
On
page 16,
from line 54, to omit paragraph
(c).
2.
On page 17, in line 4, omit the first
the and to substitute
[the]
.
3
.
On page 17, in line
12, after
apply
to insert ,
where necessary
,
.
4.
On
page 17, in line 18,
after "apply" to insert "where necessary".
5.
On
page 17, in line 26, after
environment
to insert
and an
environmental authorisation has, where necessary, been issued
.
.
6.
On
page 17, from line 29, to omit paragraph
(f)
and to substitute
:
"
(f)
the
applicant has, where necessary, provided proof of
application for a licence for use of water in terms of the applicable
legislation.
".
7.
On
page 17,
after line 30, to insert the following:
(j)
by
the
insertion after subsection (6) of the following subsection:
(6A)
The Minister must, within the prescribed
period of receipt of an application from the Regional Manager, refuse to issue
a mining permit if the applicant does not meet the requirements referred to in
subsection (6).;
8.
On page 17,
in
line
39, after renewed to insert
for
.
9.
On
page 17, in
line 41, to omit subsection and substitute with subsections.
10.
On
page 17,
after line 41, to insert the following:
"(9)
A right granted in terms of subsection
(6) shall
(a)
come
into
effect on the effective date; and
(b)
where an appeal against the granting of the
right or the approval of the environmental authorisation has been lodged within
the prescribed period, the
notarial
deed of granting
shall not be executed until such appeal has been finalised.;
11.
On
page 17, in line 42, to omit 9 and substitute with
10.
12.
On page 17, from line 44, to omit
granted
and a
notarial
deed of renewal has been executed
and to substitute with
issued
.
13.
On page 17, in line 50, to omit
granted
and to substitute
issued
.
14.
On
page
17, in line 52, to omit
execution
and to substitute
issuing
.
CLAUSE 23
1.
On
page 17, in line 57, to omit
[or]
,
and to substitute or.
2.
On
page 18, from line 11, to omit paragraph
(c)
and to substitute:
(c)
[an]
the prescribed
annual report detailing
[extent of the holders compliance with the
provisions of section 2
(d)
and
(f)
, the charter contemplated in section
100 and the approved social and labour plan]
accurate information and
data in respect of mineral reserves and resources within the mining areas.
;
2.
On
page 18, after
line 18, to insert the following:
(3)
The holder of a mining right must submit
to the Regional Manager the prescribed annual report detailing the holders
compliance with provisions of section 2
(d)
and
(f)
, the Amended Broad Based
Socio-Economic Empowerment Charter for the South African Mining and Minerals
Industry provided for in section 100 and the approved social and labour plan.
;
CLAUSE 27
1.
On page 19, after
line 15, to insert the following paragraph:
by
the deletion in subsection (2)
(a)
of the word and;
2.
On page 19, from line
16, to omit paragraph
(b)
and to
substitute with the
following paragraph:
by
the
substitution at the end of subsection (2)
(b)
(ii)
for a full stop of a semicolon and by the addition of the following
paragraphs:
3.
On page 19, in line
18, to omit
(iii)
and substitute
(c)
.
4.
On page 19, in line
18, after "
submit
" to insert "
the prescribed
".
5.
On page 19, in line
21, to omit
(iv)
and substitute
(d)
.
NEW CLAUSE
1.
That the following be a new clause:
Amendment of section 38B of Act 28 of 2002, as amended by section 32 of
Act 49 of 2008
28.
Section 38B of
the principal
Act is hereby amended
(a)
by
the substitution in subsection (1) of the
following subsection:
"(1)
An environmental management plan or
environmental management programme approved in terms of this Act before and at
the time of the coming into effect of the
National Environmental Management
Amendment
Act,
[1998]
2014
, shall be deemed to
have been approved and an environmental authorisation been issued in terms of
the National Environmental Management Act, 1998.";
(b)
by
the insertion
after subsection (3) of the following subsection:
"(4)
All pending applications lodged in terms of this Act prior to
the coming into operation of the National Environmental Management Amendment
Act, 2014, shall be processed in terms of this Act as if the National
Environmental Management Amendment Act, 2014, is not in operation
.".
CLAUSE 29
1.
Clause rejected.
NEW CLAUSE
1.
That the following be a
new clause to follow clause 28.
Insertion of section 42A in Act 28 of 2002
29.
The following section is hereby inserted after clause 28 of the
principal Act:
"
Management of historic residue stockpiles
and residue deposits
42A.
(1)
In
order to promote orderly and optimal development of mineral resources and
guarantee security of tenure, all
historic residue stockpiles and residue deposits currently not regulated
under this Act
belong
to the owners thereof
and shall continue
in force for a period of two years from the date on which the Mineral and
Petroleum Resources Development Amendment Act, 2014 is promulgated.
(2)
The holder of a mining right or mining
permit who owns historic residue deposits or residue stockpiles which are
located within the mining area has an exclusive right to apply for an amendment
of the mining works programme in terms of section 102 to include such deposits
and stockpiles into the right.
(3)
The holder referred to in subsection (2)
must process the residue deposits and residue stockpiles in terms of the
amended mining works programme.
(4)
The owner of any historic residue
deposit and residue stockpile located outside the mining area has an exclusive
right to apply in the prescribed manner, at the office of the Regional Manager
in whose region the residue deposit or residue stockpile is situated, for a
mining right or mining permit, as the case may be, within a period of two years
from the date of commencement of
Mineral and Petroleum Resources Development Amendment Act, 2014
.
(5)
The mining right or mining permit, as
the case may be, is valid for a period specified in such a right or permit,
which period may not exceed 30 years depending on the circumstances of each
case taking into account the nature and extent of the residue deposit and
residue stockpile.
(6)
The Minister must grant such a mining
right or mining permit in terms of subsection (4) if the applicant satisfies
the requirements contemplated in section 23 or 27, as the case may be.
(7)
The holder must lodge the mining right
or mining permit within the prescribed period from the date of execution at the
Mineral and Petroleum Titles Registration Office for recording or registration,
as the case may be.
(8)
Upon execution, recording or
registration of the mining right or mining permit, as the case may be, the
historic residue deposit or residue stockpile shall be deemed to be regulated
in terms of this Act.
(9)
In cases of historic residue deposits
and residue stockpiles located outside the mining area and where the owner
fails to apply for a mining right or mining permit within the period referred
to in subsection (4), the custodianship of the minerals in such historic
residues and stockpiles shall revert back to the State and the State shall be
entitled to invite applications thereon in terms of section 9.
CLAUSE 30
1.
On
page 20, from line 47 to omit "
notwithstanding the issuing of a
closure
certificate
by the Minister
and to substitute "until the Minister
has issued a closure certificate".
2.
On
page 20,
after line 49, to insert the following subsection;
by
the insertion after subsection (1) of the following
subsection:
"(1A)
Despite
the issuing of the closure certificate the holder or owner referred to
subsection (1) remains liable for any latent or residual environmental liability,
pollution, ecological degradation, the pumping and treatment of extraneous
water which may become known in the future
.".
3.
On
page 21,
from line 9, to omit "60 days" and to substitute "
[60 days]
the
prescribed period
".
4.
On page 21, from line 21, to omit
"safety, health or" and to substitute
[safety, health or]
.
5.
On
page 21, from line 22 to omit:
"
for
a period
of 20 years after issuing a closure certificate
"
and to substitute
"
for such period, as the Minister may determine
having regard to the circumstances relating to the relevant operation, which
portion and period must be determined in the prescribed manner
".
CLAUSE 34
1.
On
page 22, in line 40, after "
[or
cancelled; and]
", to insert "or cancelled, and".
CLAUSE 35
1.
On
page 23, in line 6, after "
scheme
" to
insert "
and zoned for residential purposes
".
CLAUSE 36
1.
On
page 23, in line 15, to omit
nature of the mineral
and substitute
mineral
or petroleum
.
2.
On
page 23, in line 16, after mineral to insert
and petroleum
3.
On
page 23, in line 17, after reconnaissance permission to
insert
technical co-operation permit, reconnaissance permit, exploration
right, production right
.
4.
On
page 23, in line 22, after the first permit, to insert
technical
co-operation permit, exploration right, production right,
.
5.
On
page 23, in line 24, after of minerals to insert
,
petroleum or form of petroleum
.
6.
On
page 23, in line 30, after the first permit to insert
technical
co-operation permit, exploration right, production right
.
CLAUSE 43
1.
On
page 25, in line 46, to omit
and.
2.
On
page 25, in line 37, to omit the full stop and to substitute
; and
3.
On
page 25, after line 37, to insert the following
paragraph:
(g)
at
least two other persons with
appropriate experience, expertise or skill to enhance the
Councils capabilities of performing its
functions more effectively.
4.
On
page 25, after line 37, to insert the following
subsection:
(3)
The
members of the Council must elect one of its members as deputy chairperson at
their first meeting;
5.
On
page 25, in line 40, after
mineral
to insert
and
petroleum
.
6.
On
page 25, in line 41, to omit
mining
and
substitute it with
petroleum
.
7.
On
page 25, from line 43, to omit
(c)
and substitute with the following:
(c)
the
terms and conditions
applicable to beneficiation as contemplated in section 26; and
(d)
any
other matter which the Minister refers to the Council.
.
8
On page
25, after line 43, to insert the following:
Subcommittees of Council
56C
.
(1)
The
Council may appoint subcommittees to assist with its functions as it may
determine.
(2)
The Council must determine the composition of a subcommittee,
(3)
The
Council may at any time dissolve or reconstitute a subcommittee.
(4)
The Council must designate a member of a subcommittee as
chairperson of that subcommittee.
(5)
The Council is not absolved from the performance of any
function
entrusted to a subcommittee.
(6)
The Council may make rules regarding the manner in which
meetings of a subcommittee are to be convened, the procedure at, the functions
of, and the quorums for such meetings and the manner in which minutes of such
meetings must be kept.
.
CLAUSE 45
1.
On
page 27, in line 4, to omit
,26
and to substitute
[26]
.
CLAUSE 49
1.
On
page 28,
after line 45, to insert the following:
(a)
by
the substitution in subsection (1) for paragraph
(c)
of the following paragraph:
"(c)
the
reconnaissance will not result in unacceptable pollution, ecological
degradation or damage to the environment and that the environmental
authorization
[is]
, where
necessary, has been
issued;".
2.
On
page 28, from line 53, to omit paragraph
(b)
.
3.
On
page 28, in line 55, to omit "
reconnaissance permits
" and
substitute "data produced under the reconnaissance permit"
4.
On
page 28, in line 61, to omit "
within the first
year of the permit being issued
".
5.
On
page 29, after line 2, to insert the following:
(d)
by
the addition of the following subsections after
subsection (5):
"(6)
The holder of the reconnaissance permit has an exclusive right
to market the data collected under the reconnaissance permit for six years.
(7)
Notwithstanding the
provisions of subsection (6) above, the Minister may grant a reconnaissance
permit over an area with an existing reconnaissance permit, if the applicant
applies different methods and technologies for petroleum data acquisition that
will advance petroleum exploration.
".
CLAUSE 50
1.
On page 29, from line 17 to omit paragraph
(c)
.
CLAUSE 53
1.
On page 30, from line
8 to omit paragraph
(c).
2.
On
page 30, in line 24, after "
apply
", to insert"
, where necessary,
".
3.
On
page 30, in line 30, to omit "a period of 120 days" and to substitute
[a period of 120 days]
the
prescribed period
".
CLAUSE 54
1.
On
page 30, from line 37,
to omit paragraph
(g)
and to substitute:
"
(g)
the
applicant has, where necessary, provided proof of
application for a licence for use of water in terms of the applicable
legislation
.
"
2.
On
page 30, in line 51, to omit";
and
" and to substitute with a full
stop.
3.
On page 30, from line 52 to omit paragraph
(b)
.
4.
On
page 30,
after line 61, to insert the following:
(g)
by the substitution in subsection (6)
of
the
following subsection:
"(6)
A
[exploration]
right granted in terms of subsection (1)
[
comes
into effect on the effective date]
shall
(a)
come
into effect on the effective date; and
(b)
where an appeal against the granting of
the right or the approval of the environmental authorisation has been lodged
within the prescribed period, the
notarial
deed of
granting shall not be executed until such appeal has been finalised.
;
6.
On page 31, from line
1 to omit paragraph
(f)
.
CLAUSE 55
1.
On page 31, in line 13, to omit light
and to substitute
[light]
right
.
2.
On
page 31, in line 24, after "
included
" to
insert "
proof of application for
".
CLAUSE 58
1.
On page 32, from line 34, to omit
"14 days from the receipt of the application" and to substitute
"
[14 days from the receipt of the
application]
the prescribed period
".
2.
On
page 32, from line 42, to omit paragraph
(c).
3.
On page 33, from line 5, to omit
"180 days from the date of the notice" and to substitute "
[180 days from the date of the notice]
the
prescribed period
".
4.
On
page 33, in line 9, after "
apply
" to
insert "
where necessary
".
CLAUSE 59
1.
On
page 33, after line 13, to insert the following:
(a)
by
the
substitution in subsection (1) for paragraph
(c)
of the following paragraph:
(c)
the
production will not result in unacceptable pollution,
ecological degradation or damage to the environment
and an environmental
authorisation has been issued
;.
2.
On
page 33, from line 16, to omit paragraph
(j)
and to substitute:
"
(j)
the
applicant has, where necessary, provided proof of
application for a licence for use of water in terms of the applicable
legislation
.
"
3.
On
page 33,
after line 28, to insert the following:
(e)
by
the insertion
after subsection (5) of the following subsection:
(5A)
A
right granted in
terms of subsection (1) shall
(a)
come
into
effect on the effective date; and
(b)
where an appeal against the granting of
the right or the approval of the environmental authorisation has been lodged
within the prescribed period, the
notarial
deed of
granting shall not be executed until such appeal has been finalised.
;
4.
On
page 33, from line 28, to omit paragraph
(d)
.
NEW CLAUSE
1.
That the following be a new Clause:
Insertion of section 86A to Act 28 of 2002
62.
The following section is hereby
inserted after section 86 of the principal Act:
"State participation on exploration and production
rights
86A.
(1)
The
State has, through the designated organ of state, a right to a 20% free carried
interest in all new exploration and production rights, from the effective date
of such rights.
(2)
In addition to the free carried interest contemplated in
subsection (1), the State is, in the prescribed manner, entitled to a further
participation interest in the form of
(a)
acquisition
at
an agreed price; or
(b)
production
sharing agreements.
(3)
The
State shall upon acquiring interest in terms of subsections (1) and (2) enter
into a joint operating agreement with the operating petroleum company.
(4)
The State is entitled to a corresponding
percentage of voting rights to the interest held in such joint operating
agreements.
(5)
The Minister must, acting on behalf of
the State, appoint two representatives to the joint project committee of the
exploration or production operation to represent the interest of the State.
".
CLAUSE 65
1.
On
page 35, in line 17, to omit or and substitute
[or]
,
.
2.
On
page 35, in line 17, after officer to omit the comma.
3.
On
page 35, in line 17, after officer to insert
or any person with
appropriate expertise,
.
CLAUSE 66
1.
On
page 35, in line 34, after
[or]
to
insert
and
.
2.
On page
35, in line 35, to omit "
must
" and to substitute "
may
".
3.
On page 35, in line 36, to omit
"or a part thereof" and to substitute
[or part thereof]
.
CLAUSE 67
1.
Clause rejected.
CLAUSE 68
1.
On
page
36, in line 7, to omit "in terms of this Act" and to substitute
[in terms of this Act]
.
2.
On page
36, in line 13, after "
Minister
" to insert"
, if the
decision was taken in terms of this Act
".
3.
On page 36, in line 18, to omit
"
Water and
"
4.
On page 36, in line 24, to omit An
and substitute with
[An]
Subject
to subsections (2A) and (2B), an
.
5.
On
page 36, in
line 27, to omit subsection and to substitute subsections.
6.
On
page 36,
after line 31, to insert the following:
(2B)
Any right granted in terms of this Act and
any decision related to environmental matters shall, notwithstanding any other
provision in this Act not be effective and shall not be executed unless the
prescribed period for the lodgment of an appeal has expired, and if such appeal
is lodged, until such appeal has been finalised.
CLAUSE 69
1.
On
page 36, in line 46, to omit "
18, 24 and 34
" and to substitute
"
11(4), 21(1A), 28(1) and 28(2
)
(
d)
".
CLAUSE 70
1.
On
page 36,
from line 57, to omit "
as reflected in the last available annual
financial statements"
.
2.
On
page 37,
from line 8, to omit "
as reflected in the last available annual
financial statements
".
3.
On
page 37, in
line 19, to omit "
as reflected in the last available annual financial
statements
".
4.
On
page
37, from line 25, to omit subsections (1A) and (1B) and to substitute with the
following subsection:
"(1A)
(a)
(i)
An authorised person in terms of
section
91
may
make a
recommendation
in writing to the Director-General that a fine be imposed on the holder which
has failed to comply with any provision contemplated in section 98(iv).
(ii)
The
authorised person must serve a copy of the recommendation on the Holder
concerned.
(iii)
The holder may make written
representations to the Director-General within 30 days of receipt of a copy of
the recommendation;
(iv)
A
representation made in terms of paragraph (iii) may not be used against the
holder in any criminal or civil proceedings in respect of the same set of
facts.
(b)
(i)
The Director-General, after considering
the recommendation and any representation made
in terms paragraph
(a)
(iii),
must within the prescribed period from the date of receipt of the holders
representations in terms of paragraph
(a)
(iii)
or after expiry of the 30 day period in paragraph
(a)
(iii) without such representations having been made, whichever
is the earlier:
(
aa
)
disregard the recommendation;
(
bb
)
impose a fine not exceeding
R800, 000; or
(cc)
refer
the matter to the National Prosecuting Authority for a decision as to whether
the holder should be charged with an offence.
(ii)
The Director-General must in writing
notify the holder of his decision made in terms of paragraph
(b)
and (i) within the prescribed
period.
(iii)
The holder may appeal the decision of
the Director-General to the Minister in terms of section 96.
(iv)
Save if the holder has lodged an appeal
in terms of paragraph
(b)
(iii), the
holder must pay any fine imposed in terms of paragraph
(b)
(i)
(bb)
within 30 days
of receipt of the Director-Generals notification therefore in terms of
paragraph
(b)
(ii).
(v)
If the right holder fails to pay the
fine within the period referred to in paragraph
(b
)
(
iv)
and an appeal has not been lodged within the required period, the
Director-General may forthwith file with the clerk or registrar of a competent
court a certified copy of the notice contemplated in paragraph
(a)
(ii), and the notice thereupon has
the effect of a civil judgment lawfully given in that court in favour of the
Department.
(c)
Money received by the
Department
in payment of administrative fines impo
sed in terms of paragraph
(a)
must be paid
to a fund
established and controlled by the
Council
for Geoscience in terms of this Act
.
(d)
The Council for Geoscience must in
consultation with the Minister
use the money in the fund for the promotion
of exploration and prospecting activities in the mining and petroleum industry
and matters incidental thereto
."
CLAUSE 72
1.
On
page 38, from line 33, after
for,
to insert
except
where the extension is to consolidate existing adjacent rights,
CLAUSE 74
1.
On page 39, from line 16, to omit
paragraph (
jA
) and to substitute
"
determination
of terms and conditions applicable to beneficiation
of mineral resources as contemplated in section 26
".
2.
On
page 39,
after line 18, to insert the following:
"
(
jB
)
procedures applicable in respect of
invitation for applications in terms of section 9
;
(
jC
)
the determination of the terms and
conditions of the State participation as
contemplated
in section 86A
;
(
jD
)
(i)
the
manner and form in which interested and affected persons
must
be
informed of an
application for a right in terms of this Act; and
(ii)
the
manner and form of
consultation required with such interested and affected persons
..
(d)
by
the addition after
subsection (1) of the following subsection:
"
(1A)
The Minister must, when making regulations
as provided for in terms of regulations
jA
and
jC
, consult with affected stakeholders
.
".
NEW CLAUSE
1.
That the following be
a new Clause:
Amendment of item 9
of Schedule II to Act 28 of 2002, as amended by section 85 of Act 49 of 2008
80.
Item 9 of
schedule II of the
principal Act is hereby amended
by the
substitution for
subitem
(2) of the following
subitem
:
(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 Mineral and Petroleum
Titles Registration Office within six years from the date on which
[this Act]
the Mineral and Petroleum
Resources Development Amendment Act, 2014,
took effect and if such holder,
user or
[occupier]
acquirer
fails to register such reservation, permission or right, the reservation,
permission or right shall cease to exist.
LONG TITLE
1.
On
page 2, in
the fifth line of the long title, after relating to to insert:
the
regulation of
the mining industry through
2.
On
page 2, in the fifth line of the long title, after "beneficiation of
minerals" to
insert:
,
or mineral products
The Committee further
reports that the Democratic Alliance (DA) objected to the following clauses:
Clause 1, definitions of beneficiation, free
carried interest, mine gate price, production sharing agreement, security
supply,
state
participation.
Clause 5, on the
basis that the proposed process is flawed and they propose a fair and just
process.
Clause 6, Clause 8
and Clause 9, on the basis of
unbribery
Ministers
discretion.
Clause 10, on the basis of power granted to
the Minister.
Clause 11, on the basis of power granted to
the Minister.
Clause12
,
on
the basis that discretion granted
to the Minister.
Clause 14, on the basis that discretion
granted to the Minister
Clause 15, on the basis that discretion
granted to the Minister
Clause 17, on the basis of power granted to
the Minister.
Clause 18, on the basis of power granted to
the Minister.
Clause 21, on the
basis that the process determining beneficiation is flawed.
Clause 22, on the
basis that the process determining beneficiation is flawed.
Clause 27
Clause 30
Clause 36
,
proposing
legislation split, in the
mineral and petroleum.
Clause 40, on the basis of
unbribery
Minister
discretion
.
Clause 41, on the basis of
unbribery
Minister
discretion
.
Clause 46, on the basis of dilution of
Designated Agency and broad discretion of powers granted to the Minister.
Clause 47 (first as reflected in the
amendment bill)
Clause 48 (second as reflected in the
amendment bill)
Clause 49, Clause 50,
Clause 51, Clause 53, Clause 54, Clause 55, Clause 56, Clause 57, Clause 59 and
Clause 60 on the basis of
delution
of designated
agency and
unbribery
Ministerial discretion.
Clause 61, (New
clause) on the basis of state participation on exploration and production
rights.
Clause 62
,
Clause
63, Clause 64, on the basis of
dilution of designated agency and state interference of state participation
Clause 66, Clause 68,
Clause 70, Clause 71 on the basis on
unbribery
Ministerial discretion.
The DA objected to the report on the basis
that it is not a true reflection of the proceedings.
The ANC raised their objection to the
Democratic Alliances refusal to submit their objections in writing despite a
request by the Committee to do so. The request was based on the fact that the
objections should be reflected in the report as accurately as possible.
Report to be considered.
Documents
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