This is the version of this Act as it was from 10 October 2002 to 29 April 2004. Read the latest available version.
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- Subject areas > Business, Trade and Industry
- Subject areas > Energy and Natural Resources
- Subject areas > Environment, Climate and Wildlife
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South Africa
Mineral and Petroleum Resources Development Act, 2002
Act 28 of 2002
- Published in Government Gazette 23922 on 10 October 2002
- Assented to on 3 October 2002
- Commenced on 1 May 2004 by Mineral and Petroleum Resources Development Act, 2002: Commencement
- [This is the version of this document as it was from 10 October 2002 to 29 April 2004.]
Chapter 1
Definitions
1. Definitions
In this Act, unless the context indicates otherwise—“block” means any area of land or sea, including the sea bed, identified as a block by co-ordinates on a map prepared by the designated agency and situated wholly or partly in the Republic or its exclusive economic zone and includes any part of such block;“Board” means the Minerals and Mining Development Board established by section 57;“broad based economic empowerment” means a social or economic strategy, plan, principle, approach or act which is aimed at—(a)redressing the results of past or present discrimination based on race, gender or other disability of historically disadvantaged persons in the minerals and petroleum industry, related industries and in the value chain of such industries; and(b)transforming such industries so as to assist in, provide for, initiate or facilitate—(i)the ownership, participation in or the benefiting from existing or future mining, prospecting, exploration or production operations;(ii)the participation in or control of management of such operations;(iii)the development of management, scientific, engineering or other skills of historically disadvantaged persons;(iv)the involvement of or participation in the procurement chains of operations;(v)the ownership of and participation in the beneficiation of the proceeds of the operations or other upstream or downstream value chains in such industries;(vi)the socio-economic development of communities immediately hosting, affected by the of supplying labour to the operations; and(vii)the socio-economic development of all historically disadvantaged South Africans from the proceeds or activities of such operations;“Chief Inspector” means the Chief Inspector of Mines appointed in terms of section 48(1) of the Mine Health and Safety Act, 1996 (Act No. 29 of 1996);“community” means a coherent, social group of persons with interests or rights in a particular area of land which the members have or exercise communally in terms of an agreement, custom or law;“contractual royalties” means any royalties or payment agreed to between parties in a mining or production operation;“day” means a calendar day and when any particular number of days are prescribed for the performance of any act, those days must be reckoned by excluding the first and including the last day, unless the last day falls on a Saturday, a Sunday or any public holiday, in which case the number of days must be reckoned by excluding the first day and also any such Saturday, Sunday or public holiday; “Department” means the Department of Minerals and Energy;“designated agency” means the organ, agency or company designated in terms of section 70;“development programme” means the development programme approved under the terms and conditions of the production right;“Director-General” means the Director-General of the Department;“employee” means any person who works for the holder of a reconnaissance permission, prospecting right, mining right, mining permit, retention permit, technical corporation permit, reconnaissance permit, exploration right and production right, and who is entitled to receive any remuneration, and includes any employee working at or in a mine, including any person working for an independent contractor;“environment” means the environment as defined in the National Environmental Management Act, 1998 (Act No. 107 of 1998);“environmental management plan” means a plan to manage and rehabilitate the environmental impact as a result of prospecting, reconnaissance, exploration or mining operations conducted under the authority of a reconnaissance permission, prospecting right, reconnaissance permit, exploration right or mining permit, as the case may be;“environmental management programme” means an approved environmental management programme contemplated in section 39;“exclusionary act” means any act or practice which impedes or prevents any person from entering the mineral and mining industry, or from entering any market connected with that industry, or from making progress within such industry or market;“exploration area” means the area comprising the block or blocks depicted in an exploration or production right;“exploration operation” means the re-processing of existing seismic data, acquisition and processing of new seismic data or any other related activity to define a trap to be tested by drilling, logging and testing, including extended well testing, of a well with the intention of locating a discovery;“exploration right” means the right granted in terms of section 80;“exploration work programme” means the approved exploration work programme indicating the petroleum operations to be conducted on the exploration area during the validity of the exploration right, including the details regarding the exploration activities, phases, equipment to be used and estimated expenditures for the different exploration activities and phases;“financial provision” means the insurance, bank guarantee, trust fund or cash that applicants for or holders of a right or permit must provide in terms of sections 41 and 89 guaranteeing the availability of sufficient funds to undertake the agreed work programmes and to rehabilitate the prospecting, mining, reconnaissance, exploration or production areas, as the case may be;“historically disadvantaged person” means—(a)any person, category of persons or community, disadvantaged by unfair discrimination before the Constitution took effect;(b)any association, a majority of whose members are persons contemplated in paragraph (a);(c)any juristic person other than an association, in which persons contemplated in paragraph (a) own and control a majority of the issued capital or members’ interest and are able to control a majority of the members’ votes;“holder”, in relation to a prospecting right, mining right, mining permit, retention permit, exploration right, production right, reconnaissance permit or technical co-operation permit, means the person to whom such right or permit has been granted or such person’s successor in title;“land” includes the surface of the land and the sea, where appropriate;“mine”, when used as a verb, means any operation or activity for the purposes of winning any mineral on, in or under the earth, water or any residue deposit, whether by underground or open working or otherwise and includes any operation or activity incidental thereto;“mineral” means any substance, whether in solid, liquid or gaseous form, occurring naturally in or on the earth or in or under water and which was formed by or subjected to a geological process, and includes sand, stone, rock, gravel, clay, soil and any mineral occurring in residue stockpiles or in residue deposits, but excludes—(a)water, other than water taken from land or sea for the extraction of any mineral from such water;(b)petroleum; or(c)peat;“mining area”—(i)in relation to a mining right or a mining permit, means the area for which that right or permit is granted;(ii)in relation to any environmental, health, social and labour matter and any latent or other impact thereto, includes—(a)any adjacent or non-adjacent surface of land on which the extraction of any mineral and petroleum has not been authorised in terms of this Act but upon which related or incidental operations are being undertaken and, including—(i)any area connected to such an area by means of any road, railway line, power line, pipeline, cable way or conveyor belt; and(ii)any surface of land on which such road, railway line, power line, pipeline or cable way is located; and(b)all buildings, structures, machinery, mine dumps or objects situated on or in that area which are used for the purpose of mining on the land in question;“mining operation” means any operation relating to the act of mining and matters directly incidental thereto;“mining permit” means a permit issued in terms of section 27(6);“mining right” means a right to mine granted in terms of section 23(1);“Mining Titles Office” means the Mining Titles Office contemplated in section 2 of the Mining Titles Registration Act, 1967 (Act No. 16 of 1967);“mining work programme” means the planned mining work programme to be followed in order to mine a mineral resource optimally;“Minister” means the Minister of Minerals and Energy;“officer” means any officer of the Department appointed under the Public Service Act, 1994 (Proclamation No. 103 of 1994);“owner”, in relation to—(a)land—(i)means the person in whose name the land is registered; or(ii)if it is land owned by the State, means the State together with the occupant thereof; or(b)the sea, means the State;“petroleum” means any liquid, solid hydrocarbon or combustible gas existing in a natural condition in the earth’s crust and includes any such liquid or solid hydrocarbon or combustible gas, which gas has in any manner been returned to such natural condition, but does not include coal, bituminous shale or other stratified deposits from which oil can be obtained by destructive distillation or gas arising from a marsh or other surface deposit;“petroleum reservoir” means a geological formation containing petroleum;“prescribed” means prescribed by regulation;“processing”, in relation to any mineral, means the winning, extracting, concentrating, refining, calcining, classifying, crushing, screening, washing, reduction, smelting or gasification thereof;“production area” means any area which is subject to a production right;“production operation” means any operation, activity or matter that relates to the exploration, appraisal, development and production of petroleum;“production right” means a right granted in terms of section 84;“prospecting” means intentionally searching for any mineral by means of any method—(a)which disturbs the surface or subsurface of the earth, including any portion of the earth that is under the sea or under other water; or(b)in or on any residue stockpile or residue deposit, in order to establish the existence of any mineral and to determine the extent and economic value thereof or;(c)in the sea or other water on land;“prospecting area” means the area of land which is the subject of any prospecting right;“prospecting operations” mean any activity earned on in connection with prospecting;“prospecting right” means the right to prospect granted in terms of section 17(1);“prospecting work programme” means the planned prospecting work programme to be followed in order to establish the occurrence of any mineral resource in the prospecting area during the period applied for;“reconnaissance operation” means any operation carried out for or in connection with the search for a mineral or petroleum by geological, geophysical and photogeological surveys and includes any remote sensing techniques, but does not include any prospecting or exploration operation;“reconnaissance permit” means a permit issued in terms of section 75(1);“record” means recorded information regardless of form or medium;“regulation” means any regulation made under section 107;“Regional Manager” means the officer designated by the Director-General in terms of section 8 as regional manager for a specified region;“Regional Mining Development and Environmental Committee” means a Regional Mining Development and Environmental Committee established in terms of section 64(1);“residue deposit” means any residue stockpile remaining at the termination, cancellation or expiry of a prospecting right, mining right, mining permit, exploration right or production right;“residue stockpile” means any debris, discard, tailings, slimes, screening, slurry, waste rock, foundry sand, beneficiation plant waste, ash or any other product derived from or incidental to a mining operation and which is stockpiled, stored or accumulated for potential re-use, or which is disposed of, by the holder of a mining right, mining permit or production right;“retention area” means the area of land which comprises the subject of a retention permit;“retention permit” means a permit issued in terms of section 32;“State royalties” means any royalty payable to the State in terms of an Act of Parliament;“sustainable development” means the integration of social, economic and environmental factors into planning, implementation and decision making so as to ensure that mineral and petroleum resources development serves present and future generations;“technical co-operation permit” means the technical co-operation permit issued in terms of section 77(1);“the sea” means the water of the sea, as well as the bed of the sea and the subsoil thereof below the low-water mark as defined in the Seashore Act, 1935 (Act No. 21 of 1935), and within—(a)the territorial waters as contemplated in section 4 of the Maritime Zones Act, 1994 (Act No. 15 of 1994), of the Republic, including the water and the bed of any tidal river and of any tidal lagoon;(b)the exclusive economic zone as contemplated in section 7 of the Maritime Zones Act, 1994 (Act No. 15 of 1994); and(c)the continental shelf as contemplated in section 8 of the Maritime Zones Act 1994 (Act No. 15 of 1994);“this Act” includes the regulations and any term or condition to which any permit, permission, licence right, consent, exemption, approval, notice, closure certificate, environmental management plan, environmental management programme or directive issued, given, granted or approved in terms of this Act, is subject;“topsoil” means the layer of soil covering the earth which—(a)provides a suitable environment for the germination of seed;(b)allows the penetration of water;(c)is a source of micro-organisms, plant nutrients and in some cases seed; and(d)is not of a depth of more than 0,5 metres or such other depth as the Minister may prescribe for a specific prospecting or exploration area or a mining area.Chapter 2
Fundamental principles
2. Objects of Act
The objects of this Act are to—3. Custodianship of nation’s mineral and petroleum resources
4. Interpretation of Act
5. Legal nature of prospecting right, mining right, exploration right or production right, and rights of holders thereof
6. Principles of administrative justice
Chapter 3
Administration
7. Division of Republic, territorial waters, continental shelf and exclusive economic zone into regions
For the purposes of this Act the Minister must, by notice in the Gazette, divide the Republic, the sea as defined in section 1 of the Sea-shore Act, 1935 (Act No. 21 of 1935), and the exclusive economic zone and continental shelf referred to in sections 7 and 8 respectively, of the Maritime Zones Act, 1994 (Act No. 15 of 1994), into regions.8. Designation and functions of officer
The Director-General must, subject to the laws governing the public service, designate an officer in the service of the Department as regional manager for each region contemplated in section 7 who must perform the functions delegated or assigned to him or her in terms of this Act or any other law.Chapter 4
Mineral and environmental regulation
9. Order of processing of applications
10. Consultation with interested and affected parties
11. Transferability and encumbrance of prospecting rights and mining rights
12. Assistance to historically disadvantaged persons
13. Application for reconnaissance permission
14. Issuing and duration of reconnaissance permission
15. Rights and obligations of holder of reconnaissance permission
16. Application for prospecting right
17. Granting and duration of prospecting right
18. Application for renewal of prospecting right
19. Rights and obligations of holder of prospecting right
20. Permission to remove and dispose of minerals
21. Information and data in respect of reconnaissance and prospecting
22. Application for mining right
23. Granting and duration of mining right
24. Application for renewal of mining right
25. Rights and obligations of holder of mining right
26. Mineral beneficiation
27. Application for, issuing and duration of mining permit
28. Information and data in respect of mining or processing of minerals
29. Minister’s power to direct submission of specified information or data
The Minister may, in order to achieve the objects of this Act and to fulfil any of the functions in terms of this Act, direct in writing that specified information or data be submitted by—30. Disclosure of information
31. Application for retention permit
32. Issuing and duration of retention permit
33. Refusal of application for retention permit
The Minister may refuse to issue a retention permit if, after having regard to the information submitted under section 32(1) and research conducted by the Board at the request of the Minister, it is established that—34. Application for renewal of retention permit
35. Rights and obligations of holder of retention permit
36. Retention permit not transferable
A retention permit may not be transferred, ceded, let, sub-let, alienated, disposed of, mortgaged or encumbered in any way whatsoever.37. Environmental management principles
38. Integrated environmental management and responsibility to remedy
39. Environmental management programme and environmental management plan
40. Consultation with State departments
41. Financial provision for remediation of environmental damage
42. Management of residue stockpiles and residue deposits
43. Issuing of a closure certificate
44. Removal of buildings, structures and other objects
45. Minister’s power to recover costs in event of urgent remedial measures
46. Minister’s power to remedy environmental damage in certain instances
47. Minister’s power to suspend or cancel rights, permits or permissions
48. Restriction or prohibition of prospecting and mining on certain land
49. Minister’s power to prohibit or restrict prospecting or mining
50. Minister may investigate occurrence, nature and extent of mineral resources
51. Optimal mining of mineral resources
52. Notice of profitability and curtailment of mining operations affecting employment
53. Use of land surface rights contrary to objects of Act
54. Compensation payable under certain circumstances
55. Minister’s power to expropriate property for purpose of prospecting or mining
56. Lapsing of right, permit, permission and licence
Any right, permit, permission or licence granted or issued in terms of this Act shall lapse, whenever—Chapter 5
Minerals and Mining Development Board
57. Establishment of Minerals and Mining Development Board
The Minerals and Mining Development Board is hereby established.58. Functions of Board
59. Composition of Board
60. Disqualification of members
61. Vacation of office
62. Term of office and filling of vacancies
63. Meetings of Board
64. Committees of Board
65. Funding of Board
The expenses of the Board must be defrayed from money appropriated by Parliament to the Department for that purpose.66. Remuneration of members of Board, committees and working groups
A member of the Board, a committee or working group, except a member who is a full-time employee of the State, must be appointed on such conditions, including conditions relating to the payment of remuneration and allowances, as the Minister may determine with the concurrence of the Minister of Finance.67. Reports of Board
In addition to any specific report which the Minister may request from the Board from time to time, the Board must before 31 March of each year submit a report to the Minister setting out the activities of the Board during the year preceding that date and must include a business plan for the ensuing year.68. Administrative functions
The administrative functions of the Board must be performed by officers of the Department who are designated by the Director-General for that purpose.Chapter 6
Petroleum exploration and production
69. Application of Chapter
70. Designated agency
The Minister may designate an organ of State or a wholly owned and controlled agency or company belonging to the State to perform the functions referred to in this Chapter.71. Functions of designated agency
The designated agency must—72. Funding of designated agency
73. Invitation for applications
74. Application for reconnaissance permit
75. Issuing and duration of reconnaissance permit
76. Application for technical co-operation permit
77. Issuing and duration of technical co-operation permit
78. Rights and obligations of holder of technical co-operation permit
79. Application for exploration right
80. Granting and duration of exploration right
81. Application for renewal of exploration right
82. Rights and obligations of holder of exploration right
83. Application for production right
84. Granting and duration of production right
85. Application for renewal of production right
86. Rights and obligations of holder of production right
87. Development of petroleum reservoir as unit
If an exploration right or a production right has been granted over an area which geologically forms part of the same petroleum reservoir to which any other exploration or production rights exist, the holders of such rights must prepare a scheme for the development of the petroleum reservoir as a unit and must submit such scheme to the designated agency for approval by the Minister in accordance with the terms and conditions of their respective exploration or production rights.88. Information and data
89. Financial guarantee
In addition to section 5(4), no exploration operation or production operation may commence unless the holder of the rights concerned has provided for a financial provision acceptable to the designated agency guaranteeing the availability of sufficient funds for the due fulfilment of all exploration and production work programmes by the holder.90. Minister’s power to suspend or cancel permits or rights
The Minister may cancel or suspend any reconnaissance permit, technical co-operation permit, exploration right or production right in accordance with the procedure contemplated in section 47.Chapter 7
General and miscellaneous provisions
91. Power to enter prospecting area, mining area or retention area
92. Routine inspections
Any authorised person may during office hours, without a warrant—93. Orders, suspensions and instructions
94. Prohibition of obstruction, hindering or opposing of authorised person
No person may obstruct, hinder or oppose any authorised person or any other person in the performance of his or her duties or the exercise of his or her powers and functions in terms of this Act.95. Prohibition of occupational detriment against employee
96. Internal appeal process and access to courts
97. Serving of documents
98. Offences
Any person is guilty of an offence if he or she—99. Penalties
100. Transformation of minerals industry
101. Appointment of contractor
If the holder of a right or permission appoints any person or employs a contractor to perform any work within the boundaries of the reconnaissance, mining, prospecting, exploration, production or retention area, as the case may be, such holder remains responsible for compliance with this Act.102. Amendment of rights, permits, programmes and plans
A reconnaisance permission, prospecting right, mining right, mining permit, retention permit, technical corporation permit, reconnaissance permit, exploration right and production right work programme; mining work programme, environmental management programme, and environmental management plan may not be amended or varied (including by extension of the area covered by it or by the addition of minerals or a share or shares or seams, mineralised bodies, or strata, which are not at the time the subject thereof) without the written consent of the Minister.103. Delegation and assignment
104. Preferent prospecting or mining right in respect of communities
105. Landowner or lawful occupier of land cannot be traced
106. Exemptions from certain provisions of Act
107. Regulations
108. Proof of facts
In any legal proceedings in terms of this Act any statement, entry or information in or on any book, plan, record or other document is admissible as prima facie evidence of the facts in or on it by the person who made, entered, recorded or stored it.109. Act binds State
This Act binds the State save in so far as criminal liability is concerned.110. Repeal and amendment of laws, and transitional provisions
Subject to Schedule 2, the laws mentioned in Schedule 1 are hereby repealed or amended to the extent set out in the third column of Schedule 1.111. Short title and commencement
History of this document
08 December 2014
07 June 2013
01 May 2004
30 April 2004
10 October 2002 this version
03 October 2002
Assented to