New Financial Provisioning Regulations released for the Mining Industry
On 20 November 2015, Bomo Edith Edna Molewa, Minister of Environmental Affairs for South Africa, promulgated the regulations for financial provision for prospecting, exploration and mining operations (the Financial Provisioning Regulations).
The requirements of these regulations will need to be addressed by mining companies from March 2016 onwards.
Most notably, the regulations require that an additional category of impacts - latent and residual impacts – must be determined by mining companies. Accordingly, there are now three categories of impacts which a right holder must make financial provision for:-
1. rehabilitation and remediation;
2. decommissioning and closure activities at the end of prospecting, exploration, mining or production operations; and
3. remediation and management of latent or residual environmental impacts which may become known in future, including the pumping and treatment of polluted or extraneous water.
A summary of the regulations can be downloaded alongside.