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

The Artisanal and Small-Scale Mining industry (ASM) received official recognition following the ushering in of the democratic Government in 1994. Government introduced several interventions and support structures to drive the development of the ASM industry particularly to encourage the participation of Historically Disadvantaged Persons (HDP's) and to address challenges facing the sector. These interventions included the development of the White Paper: "A Minerals and Mining Policy for South Africa, 1998" (White Paper, 1998). This policy document has a dedicated chapter on the ASM industry. The policy propositions in the White Paper were later translated into legislation in the form of section 27 of the Mineral and Petroleum Resources Development Act, 2002 (MPRDA).

Despite these policy and legislative interventions and support structures post 1994, the ASM industry continues to experience challenges. The industry remains largely informal, despite an increase in the number of section 27 mining permits that have been issued by the Department. The extent of the industry in terms of the players involved, number of people employed, its socio-economic impact, investments, and contribution to the Gross Domestic Product (GDP), in the form of taxes and royalties is not properly documented.

Section 27 of the MPRDA which deals with the licensing regime for the ASM industry, has been seen largely as prohibitive to the development and growth of the sector. This is mainly because the Act does not define concepts. It does not cater for the Artisanal Mining industry. Small Scale Miners are virtually treated the same as Large Scale Miners in terms requirement for environmental management, water use, land use, health and safety and financial provisioning requirements.

Furthermore, the Act has restrictions on the transferability and encumbrance of a mining permit, the area in extent is limited to 5 hectares and this impacts on the permit holder's ability to obtain funding and overall sustainability of the operation. The mining permit applications are open for all and even some large players operate in this space. These factors. coupled with poor support mechanism from Government, in the form of funding and provision of extension services to the ASM industry, have contributed to the informality of the sector and constrained development. This has resulted in calls over the years for policy and legislative interventions by industry stakeholders and interested and affected parties.

The calls for Government to introduce policy and legislative reforms to formalise the ASM industry have intensified. Stakeholders want Government to have special focus on the ASM industry due to the potential of this industry to contribute to socio-economic development and improve the livelihoods of South Africans, in particular rural communities. Further to this there has been a call for alignment of the South African regulatory framework with regional and international mining jurisdiction on the formalisation and development of ASM industry.These calls are, in part, informed by the growth in incidences of illegal mining which is reportedly on the rise in the Country.

Illegal mining has a range of negative social and financial impacts on employees, companies, the mining sector and the country due to loss of revenue, taxes, employment opportunities, capital expenditure, exports, foreign exchange earnings and procurement, among others. It also presents a serious risk to the sustainability of the industry and its ability to contribute to a meaningful future for all South Africans.

The review of the ASM Policy framework as captured in the White Pater, 1998 is intended to address the above-mentioned challenges. The purpose of this policy review is to outline government's policy interventions to address these challenges and to support the sustainable development of the ASM industry. These policy interventions will create an enabling environment for the industry to meaningfully contribute to the mainstream economy, job creation and poverty alleviation.

This document is arranged in 10 chapters which address the following thematic issues:

Under each chapter and theme, the Government's policy proposals are clearly outlined. The intention is ultimately to translate these policy interventions into dedicated enforceable legislation.

In terms of process, the policy review will be undertaken in a consultative manner and consider input from all industry stakeholders and social partners. There will be prior consultations on the objects and intention of the policy review before a draft ASM Policy document is submitted for Cabinet approval. Cabinet will approve draft policy proposals for public comments. After the public comment period, stakeholders and social partners will be further consulted on their substantive submissions and a final draft ASM Policy document will be resubmitted to Cabinet for approval to implement. The draft ASM Policy will also be subjected to a Socio-Economic Impact Assessment (SEIAS) process, in consultation with the Planning, Monitoring and Evaluation Unit in the Presidency.