What laws apply to the mineral and petroleum industry in South Africa? What potential pitfalls must a person look out for when they consider entering into these industries in South Africa?
Unfortunately this isn’t an easy or quick question to answer because the applicable laws and regulations will depend on the projects scope and characteristics – the intended mining or production activities, infrastructure requirements and the project location. But there are two acts that can serve as a starting point. The principle act regulating the mineral and petroleum sector is the Mineral and Petroleum Resources Development Act (MPRDA), and the principle act regulating environmental management is the National Environmental Management Act (NEMA).
In any project it may, however, be necessary to consider various other laws and regulations. The purpose of this note is to give a starting point for a more in depth exploration of the laws applicable to the mineral and petroleum industry.
The following list has links to discussions on some of the acts and regulations in South Africa that may be considered. This list is unfortunately incomplete and non-exhaustive.
Mineral and petroleum licensing and permitting
- Mineral and Petroleum Resources Development Act, No 28 of 2002 (MPRDA)
- Provincial and Local Land Use and Zoning Restrictions
- National Environmental Management Act, No 107 of 1998 (NEMA);
- National Environmental Management: Protected Areas Act, No 57 of 2003 (Protected Areas Act);
- National Environmental Management: Biodiversity Act, No 10 of 2004 (Biodiversity Act);
- National Environmental Management: Air Quality Act, No 39 of 2004 (Air Quality Act);
- National Environmental Management: Waste Act, No 59 of 2008 (Waste Act);
- National Water Act, No 36 of 1998 (NWA);
- Income Tax Act, No 58 of 1962 (Income Tax Act);
- Mineral and Petroleum Resources Royalty Act, No 28 of 2008 (Royalty Act);
- Mineral and Petroleum Resources Royalty (Administration) Act, No 29 of 2008 (Royalty Admin Act).
Industry specific legislation:
- Diamonds Act, No 56 of 1986 (Diamonds Act);
- Petroleum Products Act, No 120 of 1977 (Petroleum Products Act);
- Precious Metals Act, No 37 of 2005 (Precious Metals Act).