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Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002)

Chapter 4 : Mineral and Environmental Regulation

52. Notice of profitability and curtailment of mining operations affecting employment

 

(1) The holder of a mining right must, after consultation with any registered trade union or affected employees or their nominated representatives where there is no such trade union, notify the Minister in the prescribed manner—

[Words preceding section 52(1)(a) substituted by section 41(a) of the Mineral and Petroleum Resources Development Amendment Act, 2008]

(a) where prevailing economic conditions cause the profit to revenue ratio of the relevant mine to be less than six per cent on average for a continuous period of 12 months; or
(b) if any mining operation is to be scaled down or to cease with the possible effect that 10 percent or more of the labour force or more than 500 employees, whichever is the lesser, are likely to be retrenched in any 12-month period.

 

(2) The Board must, after consultation with the relevant holder, investigate—
(a) the circumstances referred to in subsection (1); and
(b) the socio-economic and labour implications thereof and make recommendations

 

(3)
(a) The Minister may, on the recommendation of the Board and after consultation with the Minister of Labour and any registered trade union or affected persons or their nominated representatives where there is no such trade union, direct in writing that the holder of the mining right in question take such corrective measures subject to such terms and conditions as the Minister may determine.
(b) The holder of the mining right must comply with the directive and confirm in writing that the corrective measures have been taken.
(c) If the directives contemplated in paragraph (a) are not complied with, the Minister may provide assistance to or apply to a court for judicial management of the mining operation.

 

(4) The holder of a mining right remains responsible for the implementation of the processes provided for in the Labour Relations Act, 1995 (Act No. 66 of 1995), pertaining to the management of downscaling and retrenchment, until the Minister has issued a closure certificate to the holder concerned.

[Section 52(4) inserted by section 41(b) of the Mineral and Petroleum Resources Development Amendment Act, 2008]