Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002)

Notices

Artisanal and Small-Scale Mining Policy, 2022

Chapter IX

12. Reporting and Accountability
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(a)Reporting obligations
(b)Differentiated reporting for ASM miners

 

The current MPRDA framework has sufficient provisions for reporting. Section 28 of the Act places an obligation on a holder of a mining permit to keep proper records of mining activities and proper financial records in connection with the mining activities. This section further requires a holder of a mining permit to submit to the Director-General prescribed monthly returns with accurate and correct information and data, audited annual financial report or financial statements reflecting the balance sheet and profit and loss account.

 

The section 28 requirement regarding record keeping and submission of information and data was intended to enable Government to have sufficient knowledge about the extent of Small-Scale mining activities in the Country. A challenge with the implementation this provision with respect to mining permits issued as the information required is not collected and captured. This would provide Government with accurate data regarding the number of Artisanal and Small-Scale Miners, employment levels and the industries' level of contribution to the economy and royalty payments. However, the extent of compliance by holders of mining permits with the record keeping and reporting obligations as required by this provision is questionable.

 

This is primarily due to the informality of the ASM sector, increase in incidences of illegal mining, level of education of the Artisanal and Small-Scale Miners, accessibility of reporting systems and mechanisms and the capacity, on the part of the Department to monitor implementation and enforce compliance.

 

Government policy proposal:

 

•The ASM policy and dedicated legal framework should have stringent reporting requirements.
•The Department should enforce the monthly, quarterly and annual reporting requirements by the ASM industry in terms of production, employment statistics and payment of area charges. taxes and royalties. This will assist Government to have readily available and reliable data about the sector and be in a position to assess progress.
•The Department should develop reporting systems that are tailored for the ASM industry and improve on internal capacity to analyse these reports.
•Explore differentiated reporting mechanisms (ASM to report separately from the LSM industry) in terms of production and related aspects.
•Introduce periodic industry-wide assessment of the impact of issued mining permits. Similar to the Mining Charter periodic assessment reports (5 years intervals).
•Government should introduce programmes to train Artisanal and Small-Scale miners on record keeping, reporting, information management, business management (extension services).
•Government should develop simple and implementable reporting tools and templates.