COMMENTS ON THE PROPOSED REGULATIONS PERTAINING TO FINANCIAL PROVISION FOR THE MITIGATION AND REHABILITATION OF ENVIRONMENTAL DAMAGE CAUSED BY RECONNAISSANCE, PROSPECTING, EXPLORATION OR PRODUCTION OPERATIONS, 2021

The document argues that the draft regulations fail to sufficiently protect the state and affected communities from the costs of mine abandonment. It calls for a shift from 'agreed' to 'approved' closure objectives, the inclusion of 'sustainable end use' to address socio-economic inequality and land reform, and the removal of high-risk financial vehicles like parent company guarantees. It specifically highlights regulatory gaps in tailings reprocessing and the environmental risks of seismic surveys in the oil and gas sector.

• The signatories argue that closure objectives and the sustainable end state should be approved by the regulator rather than 'agreed' between the applicant and the regulator, to ensure enforceable obligations following public participation.
• The document advocates for replacing 'sustainable end state' with 'sustainable end use' to prioritise land reform, livelihoods, and the rights of women and marginalised groups, noting that mining often aggravates poverty and inequality.
• There is a significant regulatory gap regarding the financial provision for environmental rehabilitation during business rescue and liquidation, as seen in the case of Mintails Mining SA (Pty) Ltd, where a shortfall of R460-million was identified.
• The submission identifies a legal anomaly where the reprocessing of tailings dumps may not be subject to the Mineral and Petroleum Resources Development Act (MPRDA) and thus may bypass the proposed financial regulations.
• The organisations strongly oppose the use of parent or affiliate company guarantees, particularly in the oil and gas sector, arguing they are high-risk 'self-insurance mechanisms' that lack adequate monitoring and control.
• The document warns that seismic surveys in the oil and gas industry cause significant noise pollution that can lead to behavioral changes, habitat abandonment, and mortality in marine mammals and fish, yet are excluded from the draft regulations.
• The signatories propose changing the frequency of financial provision reviews from annual to triennial (every three years) to avoid an impractical and potentially ineffective cycle of constant reassessment.
• The submission criticises the 'low risk commodity' list, arguing that risk is determined by factors such as depth and location rather than just mineral type; for example, sand mining can cause devastating river bed destruction.
• The document highlights a 'pass-the-parcel' approach where mining companies sell sites near closure to under-resourced entities to avoid rehabilitation liabilities, urging the regulator to close these gaps.

APA

Centre for Environmental Rights (2021). COMMENTS ON THE PROPOSED REGULATIONS PERTAINING TO FINANCIAL PROVISION FOR THE MITIGATION AND REHABILITATION OF ENVIRONMENTAL DAMAGE CAUSED BY RECONNAISSANCE, PROSPECTING, EXPLORATION OR PRODUCTION OPERATIONS, 2021. https://cer.org.za/wp-content/uploads/2021/10/CER-and-Others-Financial-Provisioning-Comments-6-October-2021.pdf?x21779

Chicago

Centre for Environmental Rights. COMMENTS ON THE PROPOSED REGULATIONS PERTAINING TO FINANCIAL PROVISION FOR THE MITIGATION AND REHABILITATION OF ENVIRONMENTAL DAMAGE CAUSED BY RECONNAISSANCE, PROSPECTING, EXPLORATION OR PRODUCTION OPERATIONS, 2021. 2021. https://cer.org.za/wp-content/uploads/2021/10/CER-and-Others-Financial-Provisioning-Comments-6-October-2021.pdf?x21779.

Wikipedia

{{cite press release |author=Centre for Environmental Rights |title=COMMENTS ON THE PROPOSED REGULATIONS PERTAINING TO FINANCIAL PROVISION FOR THE MITIGATION AND REHABILITATION OF ENVIRONMENTAL DAMAGE CAUSED BY RECONNAISSANCE, PROSPECTING, EXPLORATION OR PRODUCTION OPERATIONS, 2021 |date=6 October 2021 |url=https://cer.org.za/wp-content/uploads/2021/10/CER-and-Others-Financial-Provisioning-Comments-6-October-2021.pdf?x21779 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{centreforenvironmentalrights2021comments, author = {{Centre for Environmental Rights}}, title = {{COMMENTS ON THE PROPOSED REGULATIONS PERTAINING TO FINANCIAL PROVISION FOR THE MITIGATION AND REHABILITATION OF ENVIRONMENTAL DAMAGE CAUSED BY RECONNAISSANCE, PROSPECTING, EXPLORATION OR PRODUCTION OPERATIONS, 2021}}, publisher = {Centre for Environmental Rights}, year = {2021}, month = oct, url = {https://cer.org.za/wp-content/uploads/2021/10/CER-and-Others-Financial-Provisioning-Comments-6-October-2021.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }