Environmental Compliance in the SA Mining Sector
As a mineral-rich country, the South African mining sector plays a pivotal role in the country's economy. However, due to the nature of mining and its potential negative impact on the environment, mining is subject to stringent environmental regulations. As from the 8th of December 2014 the statutory dispensation regarding environmental management on mines changed with the implementation of the “One Environmental System” and the transfer of environmental management rights and obligations in the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) to the National Environmental Management Ac 107 of 1998 (NEMA) and its associated regulations.
Compliance Considerations
Obtaining the necessary rights and licences: Before commencing with any prospecting and/or mining-related activity, a mining company must first obtain the required permission or right as provided for Chapter 4 of the MPRDA as well as environmental authorisation prescribed in section 24 of the NEMA. In addition to the above, a mining company may also, amongst others, require a water use licence which concerns the undertaking of various water uses as referred to in section 21 of the National Water Act 36 of 1998 (NWA) or proposed waste activities as provided for in section 20 of the National Environmental Management Waste Act 59 of 2008 (NEMWA). These processes require meticulous attention to detail and adherence to specific application procedures and time frames.
Undertaking Environmental Impact Assessments (EIAs): Conducting a thorough EIA is paramount to identifying and mitigating potential environmental impacts before commencing operations. These assessments consider various environmental aspects, including water, air quality, waste, heritage resources, and biodiversity. Mining companies' obligations and commitments towards the effective management of environmental impacts, so identified, are usually provided for in an Environmental Management Plan that is, once authorised, subject to periodic audits to ensure compliance. The audit results of certain required types of legal compliance audits must also be made available publicly.
Waste Management and Rehabilitation: The generation of residue stockpiles resulting from mining activities is deemed to have a significant impact on the environment; as such, effective waste management protocols are paramount. Mining companies are required to implement robust systems for the disposal of mining waste in such a manner as to prevent pollution and minimise environmental harm. Furthermore, comprehensive mine closure and rehabilitation plans are essential to ensure the restoration of affected land once mining activities are concluded.
Community Engagement: Meaningful engagement with local communities is another crucial element for successful environmental management. This involves transparent communication, addressing community concerns, and implementing social and labour plans to mitigate the social impacts associated with mining activities.
Consequences of Non-Compliance
Non-compliance with environmental laws can have severe consequences for mining companies. These may include:
Heavy fines and penalties: Environmental authorities have the legal authority to issue directives instructing a company to cease operations or to take specific actions to correct any non-compliance. Regulatory authorities may also impose substantial fines for non-compliance with environmental laws.
Suspension or revocation of licences: In serious cases, mining rights or environmental authorisations may be suspended or revoked, leading to significant operational disruptions and financial losses.
Reputational damage: Environmental incidents can severely damage a company's reputation, impacting its brand image and investor confidence.
Legal action: Non-compliance with environmental laws is a criminal offence and could result in criminal sanctions against the company and/or its directors. In addition, the company could also be held civilly liable for claims of damages to affected communities, resulting in costly litigation and further legal liabilities.
In recent years, we have seen a rise in enforcement action against mining companies for environmental violations, highlighting the increasing importance of compliance programs. These actions serve as a strong reminder of the potential consequences of non-compliance and the need for proactive and comprehensive environmental management strategies.
Adhering to environmental regulations is not merely a legal obligation but is essential for the long-term sustainability and success of the South African mining sector. By prioritising environmental compliance, implementing efficient environmental management systems, and fostering strong relationships with local communities, mining companies can mitigate risks, enhance their reputation, and contribute positively to the sustainable development of our country.