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

A joint submission by seven civil society organisations, led by the Centre for Environmental Rights, providing detailed comments and proposed amendments to the 2021 draft regulations on financial provision for the mitigation and rehabilitation of environmental damage caused by mining and energy operations in South Africa.

• The signatories argue that 'sustainable end state' and 'closure objectives' should be approved by the regulator following public participation, rather than being 'agreed' between the applicant and the regulator.
• The document advocates for the concept of 'sustainable end use' over 'sustainable end state' to incorporate socio-economic considerations, land reform, and the prioritisation of land access for women and marginalised groups.
• There is a significant concern regarding the 'pass-the-parcel' approach, where mining companies transfer rights to less well-resourced entities near the end of a mine's life to avoid closure liabilities.
• The submission strongly opposes the draft regulation's allowance for specialists in the oil and gas sector to be employees of a parent or affiliate company, arguing this compromises independence.
• The organisations highlight a regulatory gap regarding the financial provision for environmental rehabilitation during business rescue and liquidation, citing the Mintails Group of Companies as a case where the state inherited liabilities due to a shortfall of R460-million.
• The document challenges the classification of certain minerals as 'low risk commodities', specifically arguing that sand mining can cause devastating impacts on river beds and water courses.
• The signatories propose that the annual reassessment of financial provision be changed to a triennial (three-yearly) review to avoid an 'endless' and 'fruitless' cycle of yearly procurement and analysis.
• The submission expresses concern over the use of 'parent or affiliate company guarantees', suggesting they are high-risk mechanisms that often fail to accurately reflect company health and create enforcement problems.
• The document argues that seismic surveys, both onshore and offshore, pose significant environmental risks to wildlife and marine mammals that must be assessed and provisioned for, despite proposed exclusions in the draft regulations.

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} }