WRITTEN COMMENTS ON THE DRAFT REGULATIONS PERTAINING TO THE FINANCIAL PROVISION FOR THE REHABILITATION, CLOSURE AND POST CLOSURE OF PROSPECTING, EXPLORATION, MINING AND PRODUCTION OPERATIONS

The Centre for Environmental Rights (CER) submitted written comments on December 1, 2014, regarding the Draft Regulations for financial provision for the rehabilitation, closure, and post-closure of mining operations in South Africa. While the CER views the draft as a "welcome improvement" over previous systems, it argues that the regulations are too narrow in scope, lack sufficient definitions for 'rehabilitation' and 'specialist', and contain loopholes regarding trust deeds and the duration of 'care and maintenance' periods.

• The CER argues that the Draft Regulations focus too narrowly on rehabilitation and closure, failing to cover the full 'Mitigation Hierarchy' which includes avoidance, prevention, and minimisation of impacts. They recommend extending the scope to include financial provision for all negative impacts with material cost implications, including compensation for environmental impacts.
• The document highlights a critical weakness in the use of trust deeds for financial provision, noting that the draft lacks a direct right for the Minister to access funds. The CER warns that without this, trustees may face conflicting fiduciary duties between the rights holder and the Minister's instructions under section 24P(2) of NEMA.
• The CER criticizes the lack of a formal definition for 'rehabilitation' in the draft regulations, NEMA, or the MPRDA. They propose that rehabilitation should be defined by its outcome—specifically a 'useful purpose'—and should strive to restore damaged ecosystems rather than just 'greening' or 'revegetation'.
• The CER recommends that the definition of a 'specialist' be strengthened to require professional registration with a relevant association, such as SACNASP, to prevent unqualified persons from determining financial provision.
• The CER suggests that the current draft allows for an excessively long 'care and maintenance' period of five years, which they argue is impractical and unlikely to be resolved in that timeframe. They recommend reducing this maximum period to 12 months.
• The CER expresses concern that the Minister of Mineral Resources is given only 30 days to approve or reject complex financial plans and audit reports, arguing this is insufficient for proper analysis and recommending an extension to at least 60 days.
• The CER emphasizes that the success of the regulations should be measured by actual environmental outcomes rather than mere industry compliance, ensuring the full cost of mining is internalised into the economy.

APA

Centre for Environmental Rights (2014). WRITTEN COMMENTS ON THE DRAFT REGULATIONS PERTAINING TO THE FINANCIAL PROVISION FOR THE REHABILITATION, CLOSURE AND POST CLOSURE OF PROSPECTING, EXPLORATION, MINING AND PRODUCTION OPERATIONS. https://cer.org.za/wp-content/uploads/2020/11/CER-Comments-on-Draft-Financial-Provision-Closure-Regulations-1-December-2014.pdf?x21779

Chicago

Centre for Environmental Rights. WRITTEN COMMENTS ON THE DRAFT REGULATIONS PERTAINING TO THE FINANCIAL PROVISION FOR THE REHABILITATION, CLOSURE AND POST CLOSURE OF PROSPECTING, EXPLORATION, MINING AND PRODUCTION OPERATIONS. 2014. https://cer.org.za/wp-content/uploads/2020/11/CER-Comments-on-Draft-Financial-Provision-Closure-Regulations-1-December-2014.pdf?x21779.

Wikipedia

{{cite press release |author=Centre for Environmental Rights |title=WRITTEN COMMENTS ON THE DRAFT REGULATIONS PERTAINING TO THE FINANCIAL PROVISION FOR THE REHABILITATION, CLOSURE AND POST CLOSURE OF PROSPECTING, EXPLORATION, MINING AND PRODUCTION OPERATIONS |date=1 December 2014 |url=https://cer.org.za/wp-content/uploads/2020/11/CER-Comments-on-Draft-Financial-Provision-Closure-Regulations-1-December-2014.pdf?x21779 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{centreforenvironmentalrights2014written, author = {{Centre for Environmental Rights}}, title = {{WRITTEN COMMENTS ON THE DRAFT REGULATIONS PERTAINING TO THE FINANCIAL PROVISION FOR THE REHABILITATION, CLOSURE AND POST CLOSURE OF PROSPECTING, EXPLORATION, MINING AND PRODUCTION OPERATIONS}}, publisher = {Centre for Environmental Rights}, year = {2014}, month = dec, url = {https://cer.org.za/wp-content/uploads/2020/11/CER-Comments-on-Draft-Financial-Provision-Closure-Regulations-1-December-2014.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }