NATIONAL ENVIRONMENTAL MANAGEMENT ACT: AMENDMENT TO THE FINANCIAL PROVISIONING REGULATIONS

Title: National Environmental Management Act, Act 107 of 1998: Amendment to the Transitional Arrangements in the Financial Provisioning Regulation, 2015

Gazette reference: GN 3841 in GG 49220 on 1 September 2023.

Commencement date: 1 September 2023

The Minister of Forestry, Fisheries and the Environment extended, by 5 months, the date of compliance for holders of rights and permits obtained under the Mineral and Petroleum Resources Development Act, 28 of 2002 (“MRPDA”).

The Regulations pertaining to the Financial Provision for Prospecting, Exploration, Mining or Production Operations (GNR.1147 of 20 November 2015, as amended) made under the National Environmental Management Act (“the Financial Provisioning Regulations, 2015”) contain transitional provisions that specify when these regulations must be complied with. Regulation 17A deals with when holders of offshore oil and gas exploration or production rights must comply with those Regulations, and regulation 17B deals with compliance by holders of other rights under the MPRDA (e.g. holders of prospecting or mining rights). The Minister has again extended the deadline by which such rights holders must comply with the Financial Provisioning Regulations, 2015 by amending Regulation 17B to read:

“Unless regulation 17A applies, a holder, or holder of a right or permit who applied for such right or permit prior to 20 November 2015, regardless of when the right or permit was obtained –

(a) must by no later than 19 February 2024 comply with these Regulations; and

(b) shall, until 18 February 2024, be regarded as having complied with the provisions of these Regulations, if such holder has complied with the provisions and arrangements regarding financial provisioning, approved as part of the right or permit issued in terms of the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002).”