Presentation on theme: "PORTFOLIO COMMITTEE ON MINERAL RESOURCES"— Presentation transcript:
1PORTFOLIO COMMITTEE ON MINERAL RESOURCES DISCUSSION ON THEONE ENVIRONMENTAL SYSTEM12 NOVEMBER 2014
2PRESENTATION LAYOUTRATIONALE FOR THE NEW SYSTEM FOR MINING, ENVIRONMENTAL AND WATER AUTHORISATONSREFLECTION ON CHALLENGES BEFORE THE INITIATIVEPROCESS FOLLOWED TO STREAMLINE LICENCING PROCESSESGOVERNANCE STRUCTURES INVOLVED IN EFFECTING ALIGNMENTTHE BRIEFOUTLINE OF THE APPLICATION SYSTEMALIGNMENT OF PROSPECTING RIGHT PROCESSALIGNMENT OF MINING RIGHT PROCESSRESOURCE IMPLICATIONS OF THE ALIGNMENT PROCESSELEMENTS OF THE IMPLEMENTATION PLANCURRENT STATUS AND IMPLEMENTATION PROGRESS.CONCLUSION"Implication Process" should read "Implementation Process"There are two slides referring to invesment being "or even hundreds of billions" Not sure of that level - rather delete.Explanetory Slide on MR process refers to Prospecting rights. Please correct to mining rights.ADDITIONS
3RATIONALE FOR THE NEW SYSTEM FOR MINERAL , ENVIRONMENTAL AND WATER AUTHORISATONS The Strategy for sustainable growth and competitiveness of the mining industry, identified fragmented likening system as a constraint to attracting investment.Investments could not be unlocked, and some mines ended up operating illegally.Consequence – Uncertainty in the investment climateExcessive lead times for investment decisions.Perceptions of SA being a high risk investment destination.Investment into mines involves tens or even hundreds of BillionsNegative press portraying mining projects as being illegalInvestments in mining industry not seen as safe.
4Consequence – Uncertainty in the investment climate CHALLENGES BEFORE THE INITIATIVE 3 Departments regulating Environment of one industryEnvironmental Plan or Programme (DMR)Environmental Authorisation (DEA & Provincial Environmental Departments)Water Use License (Department of Water and Sanitation (DWS)The respective rights and authorisations were often processed consecutively rather than concurrentlyConsequence – Uncertainty in the investment climateExcessive lead times for investment decisions.Perceptions of SA being a high risk investment destination, leading to.Potential loss of investmentsNegative press portraying mining projects as being illegalInvestments in mining industry not seen as safe.
5PROCESS FOLLOWED TO STREAMLINE February DEA and DMR agreed on the principle of one system to regulate all environmental matters pertaining to mining.Agreement not implemented due to challengesNEMA amended in 2008 to effect agreementMPRDA amended in 2008, promulgated 7 June 2013March 2012, DG’s of DMR, and DEA met to recommend options to Ministers
6PROCESS FOLLOWED TO STREAMLINE Matrix of three policy options on how to handle the Mine Environment Function was developedOption 1 – Move environment function to DEAWould require legislative amendments of NWA, MPRDA, NEMAPosed constitutional challengesOption 2 – Keep the environment function at DMR, include listed activities, and move appeals to DEATime frame alignment with DWSOption 3 – Leave functions where they are in the three departmentsIntegrated licensing system across three departmentsLegislative amendmentsJoint decision making
7In principle Agreement by the Ministers: PROCESS FOLLOWED TO STREAMLINEIn principle Agreement by the Ministers:Environmental Authorisations in respect of mining, prospecting will be regulated under one system prescribed by NEMAMinister of Mineral Resources will be the designated competent Authority in terms of NEMA to implement the environmental system relating to mining /prospectingMinister of Environment will be the designated Authority to deal with appeals related to environmental authorisations in respect of mining/prospectingMPRDA and NEMA legislation to be amended accordingly to effect the agreement
9The mining and prospecting processes will follow the MPRDA process THE BRIEFThe mining and prospecting processes will follow the MPRDA process300 days for MR’s and180 days for PR’sThe Environmental Authorisation in terms of NEMA and Water Use licenses application in terms of NWA will be initiated directly after the acceptances of the application in terms of the MPRDAThe Process will run parallel and the decisions will be taken simultaneously
10OUTLINE OF AN APPLICATION PROCESS Applications lodged are processed in the following phases: First phase - Acceptance or rejection of applications(Section 16 & 22 of the Act- Rejections to take place within 14 days of receipt)Second phase - Adjudication (internal)180 days for EMP to be submitted and 120 days to approve EMP.Other adjudications aligned to EMP timeframesIn terms of NEMA, Environmental Authorisation timeframe is still aligned)Third phase - Granting or refusalGoverned by granting criteria in sect 17 and 23 of the Act.Timeframe aligned to Environmental Timeframes as per both MPRDA and NEMAFourth phase – Appeals ( no subsequent rights to be considered while there are appeals pending).
12or BA Process: Where DMR is Competent Authority + + MPRDA Application AcceptedBA Process: Where DMR is Competent AuthorityPre-application (Optional)WMLAEL10 daysWULMPRDAFollows NEMA EIA ProcessNotice of intent acknowledgedDMR Continues to process MPRDA applicationBEE ProposalMine Health and SafetyApplication+Consultation BAR & EMPR+Closure Plan90 daysPublic Participation including CA (30 days)Incorporate PP commentsSite inspection & permission to proceed197 DAYS (Non- substantive)Submit BAR, EMPr & Closure PlanorNotification of addition 50 days PPWULA submittedNon substantive 147 daysBAR and EMPr reviewPublic participation including CA (30 days)Incorporate PP comments50 days57 daysMEM RECOMMENDATIONWML RECOMMENDATIONAEL RECOMMENDATIONWUL A RECOMMENDATION TO DMRFINAL recommendation: MWPBEE, SLPMH&SEA Decision prerequisite for MPRDA DecisionSubmit BAR, EMPr & Closure PlanBAR and EMPr review157 days247 DAYS (Substantive)NON SUBSTANTIVE10 days MLA57 days50 days10 days RM & RLC – INCL DWS50 daysDecisionWML ISSUEDWULISSUED30 days MPRDADecisionSUBSTANTIVE60 daysAEL Decision(other)50 daysDecisionIn event of substantive S&EIr process all time-frames extended by 50 days90 daysENVIRONMENTAL AUTHORISATION APPEAL FINALISEDEA APPEAL DECISION PREREQUISITE FOR MPRDA DECISION BECOMING EFFECTIVE
13ALIGNMENT OF PROSPECTING RIGHT PROCESS The timeframe kicks in when the application for an Environmental Authorization is received.The left hand column represents timeframes for all environmental Authorisations in the country regardless of the sector or who the Competent Authority is.DMR is the Competent Authority for Environmental Management related to the impacts of prospecting sitesWaste Management Licences related to prospecting sites will also be issued by DMR
14ALIGNMENT OF PROSPECTING RIGHT PROCESS Air Quality Licences related to Prospecting will be migrated to DMR once constitutional issues are resolved.The timeframe will in total be 180 days for Prospecting rights until the date of issuing an environmental Authorisation.DW&S will run their process in parallel. Depending on catchments they will not always achieve 180 days, but will achieve 300 days to a decision. i.e. there will be cases where a WUL will take 4 months longer than DMR
15ALIGNMENT OF MINING RIGHT PROCESS "Implication Process" should read "Implementation Process"There are two slides referring to invesment being "or even hundreds of billions" Not sure of that level - rather delete.Explanetory Slide on MR process refers to Prospecting rights. Please correct to mining rights.ADDITIONS
16or S&EIr Process: Where DMR is Competent Authority 44 days 43 days MPRDA Application AcceptedS&EIr Process: Where DMR is Competent AuthorityPre-application (Optional)WMLAEL10 daysWULMPRDAApplicationConsultation Scoping reportFollows NEMA EIA ProcessNotice of intent acknowledged(10 days)DMR Continues to process MPRDA applicationBEE ProposalSLPMine Health and Safety44 dayspublic participation including CA (30 days)incorporate PP comments43 daysScoping Report SubmittedSite inspection & permission to proceed(30 days)43 days accept orReject & Refuse application300 DAYS (Non- substantive)develop EIR & EMPrConsultation EIR & EMPrWULA submitted(100 days)Non substantive 250 days106 daysSubmit EIR & EMProrNotification of addition 50 days PPEIR & EMPr review & Final recommendationConsultation EIR & EMPr57 daysPP incl CA (30 days) & Include comments (20 days)WML RECOMMENDATIONAEL RECOMMENDATION110 DAYSWUL A RECOMMENDATION TO DMRFINAL recommendation: MWPBEE, SLPMH&SMEM RECOMMENDATION50 daysEA Decision prerequisite for MPRDA DecisionSubmit EIR & EMPrEIR & EMPr review & Final recommendation350 DAYS (Substantive)NON SUBSTANTIVE157 days10 days MLA50 days57 days10 days RM & RLC – INCL DWS50 daysDMR / NEMAEA ISSUEDWML ISSUEDWULISSUED30 days MPRDADecisionSUBSTANTIVE60 daysAEL Decision(other)DMR / NEMAEA ISSUED50 days90 daysIn event of substantive S&EIr process all time-frames extended by 50 days90 daysENVIRONMENTAL AUTHORISATION APPEAL FINALISEDEA APPEAL DECISION PREREQUISITE FOR MPRDA DECISION BECOMING EFFECTIVE
17ALIGNMENT OF MINING RIGHT PROCESS The timeframe kicks in when the application for an Environmental Authorization is received.The left hand column represents timeframes for all Environmental Authorisations in the country regardless of the sector or who the Competent Authority is.DMR is the Competent Authority for Environmental Management related to the impacts of prospecting sitesWaste Management Licences related to prospecting sites will also be issued by DMRAir Quality Licences related to Mining will be migrated to DMR once constitutional issues are resolved.The timeframe will in total be 300 days for mining rights until the date of issuing an Environmental Authorisation.DW&S will run their process in parallel and will achieve 300 days to a decision.
18NEMA SCENARIO MPRDA SCENARIO MPRDA Application AcceptedMPRDA SCENARIOMPRDA Application AcceptedApply Immediately(2008 Acts NEMA & MPRDA)180 days to submit EMPEnvironmentalApplicationEMP SubmittedConsult Competent Authorities60 daysPublic ParticipationANDPublic Participation44 daysConsult Competent AuthoritiesScoping Report Submitted43 daysScoping Report Submitted43 days to accept or reject300 daysDevelop EIR & EMPr300 days43 days to accept or reject250daysDevelop EIR & EMPr10 days106 daysSubmit EIR & EMPrSubmit EIR & EMPrEIR & EMPr review & Final recommendationEIR & EMPr review & Final recommendation57 daysMEM RECOMMENDATIONMEM RECOMMENDATION10 days MLA10 days RM & Regional Licensing50 days50days30 daysMPRDA DECISION
19RESOURCE IMPLICATIONS OF THE ALIGNMENT PROCESS Additional officials required at DMR, to effectively implement NEMA. These resources requirements were based on:longer iterative process not previously required in terms of the MPRDAAdditional functions not previously required such as listed activities, waste management,the review of documents not previously required in terms of the MPRDA process.
20RESOURCE IMPLICATIONS OF THE ALIGNMENT PROCESS National Treasury made funds available for goods and services which had to be reclassified for compensation of employees.Funds used to create additional 35 Assistant Director positions and filledBased on an implementation plan the DMR:-Embarked on a recruitment processProvided for IT equipment for the additional personnelProvided for accommodation and furniture.
23CURRENT STATUS AND IMPLEMENTATION PROGRESS Work completed Agreement and mapping on timeframes alignmentAmendment of legislationAppointment and placement of additional 35 personnel in regions,Provision of office space, IT equipment, furniture etc.Adjustment to business processesChange Management workshops have been conducted for all environmental personnel.Training on Air Quality and Waste Management Licensing completed for all Environmental officials.Guidelines Templates Checklists completed to process applications (Requires adjustments once DEA finalised revision of EIA Regulations)
24CURRENT STATUS AND IMPLEMENTATION PROGRESS - Ongoing Enforcement Task Team engaged in Joint Inspections with DEA and DWS and support from NPA.DMR Regions actively participating in enforcement activities of DEA and DWS.All Regional Environmental Managers engaged in Experiential Training (Currently engaged in process prosecuting illegal mining cases on a case study basis in conjunction with DEA.Pretoria University has been appointed to train Environmental Mineral Resource Inspectors. (EMRI training). 31 people attending this course, and will it be held at the University of Pretoria.Course commences 24 November 2014.Final Exam End January 2015.One of the Existing Chief Directorates in Mineral Regulation being dedicated to Environmental Enforcement.
25CONCLUSIONSThis project represent a best model on coordinated government effort in improving the investment climate.The one system of mining, environment and water use authorisation aims at implementation of the mining sector strategy