Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002)SchedulesSchedule II : Transitional Arrangements11. Consideration or royalty payable |
| (1) | Notwithstanding the provisions of item 7(7) and 7(8), any existing consideration, contractual royalty or future consideration, including any compensation contemplated in section 46(3) of the Minerals Act, which accrued to any community immediately before this Act took effect, continues to accrue to such community. |
| (2) | The community contemplated in subitem(1) must annually, and at such other time as required to do so by the Minister, furnish the Minister with such particulars regarding the usage and disbursement of the consideration or royalty as the Minister may require. |
| (3) | If the consideration or royalties contemplated in subitem (1) accrued to a natural person, it may continue to accrue to the person subject to such tents and conditions as the Minister may determine, if— |
| (a) | the discontinuation of such consideration or royalty will cause undue hardship to the person; or |
| (b) | the person uses such consideration or royalty for social upliftment. |
| (4) | If it is determined that the consideration or royalties referred to in subitem (3) continues then the provision of subitem (2) apply to such a recipient. |
| (5) | The recipients contemplated in subitems (1) and (3) must within five years from the date on which this Act took effect inform the Minister of their need to continue to receive such consideration or royalties and the reasons therefor, and furnish the Minister with the prescribed information. |
| (6) | Any person who or community which receives any consideration or royalty by virtue of this item must— |
| (a) | keep prescribed records at an address in the Republic where they may be inspected by the Director-General; and |
| (b) | submit annual audited financial statements. |
| (7) | The preservation contained in subitem (1) and continuation contemplated in subitem (4) when applied in respect of communities is subject to such terms and conditions as may be determined by the Minister which terms and conditions must, among others, include— |
| (a) | the manner in which such royalty will be used for purposes of promoting rural, regional and local economic development and the social upliftment of a community; |
| (b) | proper financial control is in respect of such consideration or royalty; |
| (c) | a development plan, indicating the manner in which the consideration or royalty is being used and any projects sponsored therewith; |
| (d) | an undertaking that the consideration or royalty is being or will he used for the benefit of all the members of the community in question; |
| (e) | the right of the Minister to intervene, in the event that it is alleged that, the said consideration royalties is not being utilised for the purposes agreed to between, the Minister and the community concerned; and |
| (f) | the establishment of a trust, section 21 Company, Agency or other structure to administer the funds, on whose Board of Directors or trustees or Executive Committee there is representation by members of the community affected. |