New system streamlines granting of licences, slashing lead times

17th April 2015 By: Ilan Solomons - Creamer Media Staff Writer

New system streamlines granting of licences,  slashing lead times

CLEAR TIMEFRAMES The issuing of permits, licences and authorisations must be completed within 300 days for mining rights and within 197 days for prospecting rights

The One Environmental Management System for granting prospecting and mining rights materialised as a result of the Department of Mineral Resources’ (DMR’s) strategy to ensure sustainable growth and competitiveness in the local mining industry, says DMR mine environmental management deputy director Meshack Mudau.

He was speaking at black-owned training and conferencing company Intelligence Transfer Centre’s fifth yearly EnviroMining conference, held in Johannesburg last month.

The DMR had identified that the fragmented licensing system hindered investment in the local mining sector, Mudau said.

He explained that this was in addition to the uncertainty regarding the investment climate in the country, the excessive lead times for investment decisions, international and local perceptions of South Africa being a high-risk investment destination and negative press that portrayed mining projects as being illegal.

The mining industry required the authorisation of three government departments for similar matters, such as a mine’s environmental plan, which required authorisation by the DMR; the environmental authorisation, which had to be authorised by the Department of Environmental Affairs; and the mine water-use licence, which required authorisation by the Department of Water and Sanitation.

“These respective rights and authorisations were often processed consecutively rather than concurrently,” Mudau pointed out.

He explained that, as a result, there were excessive lead times when unlocking investment in projects, different decisions among departments in terms of authorisations and, in several instances, companies starting to mine without all the authorisations from the relevant departments.

Under the new environmental system, the Minister of Mineral Resources will issue environmental authorisations and waste management licences in accordance with the provisions of the National Environmental Management Act (Nema) and the National Environmental Management Waste Act for mining and related activities.

The Environmental Affairs Minister will be the appeals authority for these authorisations.

Mudau noted that the Environmental Affairs, Mineral Resources, and Water and Sanitation Ministers had agreed on fixed timeframes for the consideration and issuing of permits, licences and authorisations falling under their purview.

He highlighted that, according to Nema, the issuing of permits, licences and authorisations had to be completed within 300 days for mining rights and within 197 days for prospecting rights.

Should a decision to issue a licence be appealed, an additional maximum period of 90 days is provided for to finalise the process.

“Until all the requisite legislative amendments have been effected to formalise these timeframes, those stipulated in Nema will apply,” he stated.

Mudau also highlighted that the environmental authorisation in terms of Nema and water use licence applications in terms of the National Water Act’s processes had to be aligned to the same timeframes, adding that all these processes would now be undertaken simultaneously.

He also noted that the Mineral Resources Minister was, in terms of the new system, authorised to appoint environmental mineral resource inspectors who would have the same powers as environmental management inspectors to enforce the provisions and regulations of Nema regarding mining and related activities.

The finalisation of the regulations governing the development of residue stockpiles and residue deposits, as well as the financial provision for rehabilitation regulations in terms of Nema, is still pending.

“Until these regulations have been finalised, the Mineral and Petroleum Resources Development Act (MPRDA) regulations will remain in force,” said Mudau.

He added that all environmental management plans or programmes approved in terms of the MPRDA prior to December 8, 2014, would remain effective in terms of Nema.