| (1) |
In this section, ‘review’ means a formal assessment of the financial provisioning with the intention of instituting change, if necessary. |
| (2) |
The Minister, or an MEC in concurrence with the Minister, may prescribe the instances for which financial provision must be set aside. |
| (3) |
Where prescribed, an applicant, must, before the competent authority issues an environmental authorisation, determine the financial provision which is required for undertaking progressive rehabilitation, decommissioning, closure and post-closure activities, including the pumping and treatment of extraneous and polluted water, where relevant. |
| (4) |
Where prescribed, the applicant, holder of an environmental authorisation, holder or holder of an old order right must provide financial provision for progressive rehabilitation, mitigation, decommissioning, closure and post-closure activities, including the pumping and treatment of extraneous and polluted water, where relevant, to ensure the mitigation and rehabilitation of adverse environmental impacts, including latent environ-mental impacts. |
| (5) |
A holder of an environmental authorisation, holder or holder of an old order right must annually undertake, as prescribed, the mitigation, remediation and rehabilitation measures. |
| (6) |
The financial provisioning vehicles which must be used when providing the financial provision include— |
| (b) |
insurance from an institution that is registered in terms of the applicable insurance sector legislation; |
| (c) |
a financial guarantee from an institution that is registered in terms of the applicable financial sector legislation; |
| (d) |
a trust fund established for the sole purposes of subsection (4); and |
| (e) |
any other vehicle, including any condition applicable to such a vehicle, identified by the Minister by notice in the Gazette in concurrence with the Minister of Finance and the Minister responsible for mineral resources, and including, but not limited to— |
| (i) |
a closure rehabilitation company; |
| (ii) |
a parent company guarantee; and |
| (iii) |
an affiliate company guarantee. |
| (7) |
The financial provisioning vehicles contemplated in subsection (6) may be used in combination as required. |
| (a) |
Where the Minister, the Minister for mineral resources or the MEC is not satisfied with the determination or review of the financial provision, the Minister, the Minister responsible for mineral resources or the MEC may appoint an independent party to conduct an assessment of the determination or review on their behalf. |
| (b) |
Any costs in respect of such assessment must be borne by the applicant, holder of the environmental authorisation, holder or holder of an old order right. |
| (9) |
If any holder of an environmental authorisation, holder or holder of an old order right fails to undertake such mitigation, remediation and rehabilitation of such impact, as prescribed, the Minister responsible for mineral resources, the Minister responsible for water affairs or MEC may, upon written notice to such holder, use all or part of the financial provision contemplated in this section to undertake mitigation, remediation and rehabilitation as the Minister, the Minister responsible for mineral resources or the MEC deems appropriate. |
| (10) |
The financial provision may only be used for the purposes of progressive rehabilitation, decommissioning, closure, post closure, as prescribed, to ensure mitigation, remediation and rehabilitation of adverse environmental impacts for which it was provided and shall not be used for any other purposes. |
| (11) |
The Insolvency Act, 1936 (Act No. 24 of 1936), does not apply to any form of financial provision contemplated in subsection (2) and all amounts arising from that provision. |
[Section 24P substituted by section 8 of the National Environmental Laws Amendment Act, 2022, GG46602, dated 24 June 2022: Commencement by Proclamation 125 of 2023, GG48869, dated 30 June 2023]
National Small Business Act, 1996 (Act 102 of 1996)
