Intellectual Property Rights from Publicly Financed Research and
R 385
Mineral and Petroleum Resources Royalty Act, 2008 (Act No. 28 of 2008)13. Conclusion of fiscal stability agreements |
| (1) | The Minister of Finance may conclude a binding agreement with an extractor— |
| (a) | in respect of the extractor's mineral resource right; or |
| (b) | in anticipation of the extractor acquiring a mineral resource right, |
that guarantees that the terms and conditions contemplated in section 14 apply in respect of the right for as long as the extractor holds the right (and for all participating interests subsequently held by the extractor in respect of the right).
| (2) | A binding agreement relating to the anticipated acquisition of a mineral resource right contemplated in subsection (1)(b) has no force and effect unless the mineral resource right is granted within one year after the date on which the Minister of Finance concludes the binding agreement. |
| (3) | If an extractor disposes of a prospecting right or an exploration right granted under the Mineral and Petroleum Resources Development Act to another person, and the right is subject to a binding agreement mentioned in subsection (1) on the date of the disposal, the extractor may assign all the rights held by the extractor under the agreement to the other person. |
| (4) | If an extractor disposes of a mining right or a production right granted under the Mineral and Petroleum Resources Development Act to another person, and the right is subject to a binding agreement mentioned in subsection (1) on the date of the disposal, the extractor may assign all the rights held by the extractor under the agreement to the other person, if both the extractor and the other person form part of the same group of companies (as defined in section I of the Income Tax Act) on the date of the disposal. |
| (5) | An extractor that concludes a binding agreement mentioned in subsection (1) may unilaterally terminate the agreement at any time with effect from the day after the last day of the year of assessment during which the extractor terminated the agreement. |
| (6) | For purposes of this section— |
| (a) | a prospecting right, a renewal of the prospecting right and an initial mining right converted from a prospecting right or renewal thereof held by an extractor; and |
| (b) | an exploration right, a renewal of the exploration right and an initial production right converted from an exploration right or renewal thereof held by an extractor, |
are, to the extent that those rights relate to the same geographical area, all deemed to be one and the same mineral resource right in the hands of the extractor.
| (7) | The powers conferred and the duties imposed upon the Minister of Finance by the provisions of this section may be exercised or performed by the Minister personally or delegated by the Minister to the Director-General of the National Treasury and the Director-General may in turn delegate the powers and duties so delegated to him or her to any officer or person under his or her control, direction or supervision. |
| (8) | For purposes of this section "mineral resource right" means a prospecting right, exploration right, mining right or production right granted pursuant to the Mineral and Petroleum Resources Development Act, and includes any lease or sublease mentioned in section 11 of that Act in respect of such right. |
