Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002)NoticesArtisanal and Small-Scale Mining Policy, 2022Chapter lll6. Differentiation of Concepts |
(a) Artisanal mining and small-scale mining
The MPRDA does not expressly define the terms "Artisanal" and "Small Scale" mining. In terms of the Act a mining permit may be issued for a period of 2 years covering an area of 5 hectares renewable for 3 periods each of which may not exceed 1year. This provision has been interpreted to refer exclusively to small scale mining. The Act therefore does not provide for artisanal mining. This lack of definition of concepts has created regulatory gap and uncertainty in respect of artisanal operations.As a result, there has been a variety of definitions that have been used by the industry to try and close this regulatory loophole. These range from definition of ASM with reference to the Small Business Act, 2003, references to "emerging mining" or "junior mining" and also the conflation of artisanal mining with small scale mining as we all as illegal mining.
Government policy proposal:
To close the loophole with regards to the definition of terms, the following is proposed:
| (a) | A definition of "Artisanal Mining" to mean traditional and customary mining operations using traditional or customary ways and means. This includes the activities of individuals or groups using mostly rudimentary mining methods, manual and rudimentary tools to access mineral ore, usually available on surface, or at shallow depths. |
| (b) | A definition of "Small Scale Mining" to mean a prospecting activities or mining operation which does not employ specialised prospecting, mechanised mining technologies, chemicals including mercury and cyanide or explosives; or the proposed prospecting or mining operations do not involve an investment or expenditure which exceed an amount as may be prescribed. |
| (c) | Thresholds in respect of amount of investments involved may be prescribed, a maximum of 1 Million Rands investments for Artisanal Miners and a Maximum of 10 Million Rands investments for Small Scale Miners is proposed. |
| (d) | Graduation provision: consideration will be made to allow an artisanal miner an opportunity to graduate to small scale mining, and for a small-scale miner to graduate to medium,junior or emerging miner considering production and investment thresholds. |
In this manner Artisanal Mining is clearly distinguishable from Small Scale Mining and related concepts. The policy and legal framework will provide for an Artisanal Mining Permit and a Small-Scale Mining Permit each with its own unique requirements and obligations.