A GUIDELINE FOR A MINING WORK PROGRAMME TO BE SUBMITTED FOR APPLICATIONS FOR A MINING RIGHT IN TERMS OF THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT, 2002, (ACT NO. 28 OF 2002)
Summary
This guideline provides detailed instructions for applicants seeking a mining right under the Mineral and Petroleum Resources Development Act, 2002. It specifies the required components of a mining work programme, emphasizing that the document must be a consolidated record rather than a series of references to other annexures. The primary purpose of the programme is to provide a technically and financially justified basis for a 10-year cash flow forecast, which the Minister uses to determine if a mineral can be mined optimally and if the applicant possesses the necessary financial and technical capabilities.
Key insights
- The Minister grants a mining right based on several criteria, including whether the mineral can be mined optimally according to the mining work programme, the applicant's access to financial resources and technical ability, the compatibility of the financing plan, and the assurance that mining will not cause unacceptable pollution or ecological degradation.
- Applicants must provide a detailed description of the mineral deposit, including its type, locality, extent, depth, geological structure, mineral content, and distribution. This must be supported by a tabulated categorization of proven and probable reserves and a mineral resource map to verify production rates in the cash flow forecast.
- The mining work programme must include a market analysis to determine price assumptions for the cash flow forecast. This includes listing products, consumers, and whether the market is local, regional, or international, as well as detailing infrastructure requirements like roads, rail, electricity, and water.
- Technical requirements for the programme include a basic mine design map, a description of extraction sequences and techniques (such as opencast or underground mining), a forecast of annual production rates, and a description of engineering constraints and their planned solutions.
- The guideline requires a detailed 10-year cash flow forecast and valuation that excludes financing. This forecast must be justified by specific data across several line items, including production, price, mining costs, technology costs, technical skills/wages, regulatory requirements (including environmental costs), Social and Labour Plan costs, and capital expenditure.
- Applicants must demonstrate how the mining operation will be financed by identifying start-up costs and any negative cash flow amounts. They must provide conclusive documentary evidence that the required funding—whether through assets, loans, equity, or underwriting—is secured.
- Regulatory costs that must be integrated into the cash flow forecast include environmental management and rehabilitation costs, royalty payments, Mine Health and Safety Regulations compliance, occupational health, rates and taxes, and the National Skills Fund.
Cite the original document
- APA
- Centre for Environmental Rights (n.d.). A GUIDELINE FOR A MINING WORK PROGRAMME TO BE SUBMITTED FOR APPLICATIONS FOR A MINING RIGHT IN TERMS OF THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT, 2002, (ACT NO. 28 OF 2002). https://cer.org.za/wp-content/uploads/2013/03/Mining-Work-Programme-Guideline.pdf?x21779
- Chicago
- Centre for Environmental Rights. A GUIDELINE FOR A MINING WORK PROGRAMME TO BE SUBMITTED FOR APPLICATIONS FOR A MINING RIGHT IN TERMS OF THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT, 2002, (ACT NO. 28 OF 2002). n.d. https://cer.org.za/wp-content/uploads/2013/03/Mining-Work-Programme-Guideline.pdf?x21779.
- Wikipedia
- {{cite report |author=Centre for Environmental Rights |title=A GUIDELINE FOR A MINING WORK PROGRAMME TO BE SUBMITTED FOR APPLICATIONS FOR A MINING RIGHT IN TERMS OF THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT, 2002, (ACT NO. 28 OF 2002) |url=https://cer.org.za/wp-content/uploads/2013/03/Mining-Work-Programme-Guideline.pdf?x21779 |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{centreforenvironmentalrightsndguideline, author = {{Centre for Environmental Rights}}, title = {{A GUIDELINE FOR A MINING WORK PROGRAMME TO BE SUBMITTED FOR APPLICATIONS FOR A MINING RIGHT IN TERMS OF THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT, 2002, (ACT NO. 28 OF 2002)}}, institution = {Centre for Environmental Rights}, url = {https://cer.org.za/wp-content/uploads/2013/03/Mining-Work-Programme-Guideline.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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