The restriction on the use of Rehabilitation Trusts for Mine Closure in terms of the Financial Provision Regulations, 2015

By Lia Bolz and Lili Nupen

Section 41 of the Mineral and Petroleum Resources Development Act, 28 of 2002, as amended (“MPRD Act”) read with regulations 53 and 54 of the regulations published under the MPRD Act (“MPRD Regulations”), previously regulated the obligation of a Holder of, inter alia, a Mining Right to make the prescribed financial provision for the rehabilitation or management of negative environmental impacts (“Financial Provision”) associated with mining operations (“Environmental Rehabilitation”).

As part of the introduction of the so-called ‘One Environmental System’, section 41 of the MPRD Act was repealed with effect from 7 June 2014 and financial provision for Environmental Rehabilitation is now regulated by the National Environmental Management Act, 107 of 1998, as amended (“NEMA”).

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