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National Environmental Management Act, 1998 (Act No. 107 of 1998)

Regulations

Financial Provisioning Regulations, 2015

Chapter 2 : Financial Provision

8. Financial vehicles used for financial provision

 

(1) An applicant or holder of a right or permit must make financial provision by one or a combination of a—
(a) financial guarantee from a bank registered in terms of the Banks Act, 1990 (Act No. 94 of 1990) or from a financial institution registered by the Financial Services Board as an insurer or underwriter;
(b) deposit into an account administered by the Minister responsible for mineral resources; or
(c) contribution to a trust fund established in terms of applicable legislation, on condition that—
(i) this may not be used for the financial provision required in terms of regulations 6(a) or (b) or regulation 11(1)(a) or (b); and
(ii) this may not be used by an applicant for, or holder of, a mining permit in terms of the Mineral and Petroleum Resources Development Act, 2002.

 

(2) The financial guarantee contemplated in sub-regulation (1)(a) must be in the format set out in Appendix 1 to these Regulations.

 

(3) In the event that the bank or the financial institution intends to withdraw the financial guarantee to support an approved financial provision—
(a) the bank or financial institution must communicate its intention to withdraw to the holder of a right or permit, the Minister responsible for mineral resources and the Minister, by registered mail, at least four months in advance, and
(b) the holder of a right or permit must notify the Minister responsible for mineral resources and the Minister within seven days of receipt of notification from the bank or financial institution contemplated in paragraph (a).

 

(4) Where a notice of withdrawal contemplated in subregulation (3) is communicated to the Minister responsible for mineral resources and the Minister, the Minister responsible for mineral resources must, within 10 days of receipt of the notice contemplated in subregulation (3)(b), request the holder of a right or permit, in writing, to provide an alternative arrangement for the financial provision within 60 days of receipt of the request.

 

(5) Should the holder of a right or permit fail to provide the Minister responsible for mineral resources with alternative arrangements within the 60 days contemplated in sub-regulation (4), the Minister responsible for mineral resources must call on the financial guarantee and deposit it into a bank account administered by the Minister responsible for mineral resources until an alternative arrangement can be made by the holder of a right or permit to the satisfaction of the Minister responsible for mineral resources.

 

(6) The Minister responsible for mineral resources must release the financial guarantee to the bank or the financial institution within seven days of receipt of the confirmation that the bank or the financial institution has disbursed the funds into the bank account contemplated in sub-regulation (6), or within seven days of the receipt of an alternative financial provision arrangement made to the satisfaction of the Minister.

 

(7) The trust fund contemplated in sub-regulation (1)(c) must be established by a deed of trust in the format set out in Appendix 2 to these Regulations.