MININGmining preventing unacceptable damage while avoiding stiflingsustainable development. Compliance with these regulations,along with innovations in greener mining technologies andwaste management, is critical to striking a balance betweeneconomic growth and environmental protection. In addition tolegal compliance, advancements in mining technology – suchas the use of renewable energy in operations and innovativewaste management practices – are becoming crucial toreducing the environmental impact of CRM extraction. Theseinnovations help mining companies meet global sustainabilitygoals while minimising their carbon footprints.For mining operations, environmental compliance is notjust a regulatory obligation but a cornerstone in the ethical andsustainable extraction of CRMs. Adherence to environmentalstandards ensures that extraction processes are conductedresponsibly, minimising environmental disruption and mitigatingthe potential for long-term damage while also encouragingforeign investment and investor confidence.Legislative framework and compliance requirementsSouth Africa’s environmental legal framework is governed by arange of laws designed to protect both the environment andthe rights of people, while also promoting sustainabledevelopment. Key legislation includes:• Constitution of the Republic of South Africa, 1996: Guaranteesthe right of all people to an environment that is protected,for the benefit of present and future generations, throughlegislative measures aimed at preventing pollution, promotingconservation and ensuring sustainable development.• Mineral and Petroleum Resources Development Act, 2002(MPRDA): Regulates mining rights, prospecting rights andmining permits, all of which must be obtained before anymining activity can commence.• National Environmental Management Act, 1998 (NEMA):Along with specific environmental management acts (SEMA)published thereunder, including the National EnvironmentalManagement: Biodiversity Act, 2004; the NationalEnvironmental Management: Protected Areas Act, 2003; theNational Environmental Management: Air Quality Act, 2004(NEMAQA); and the National Environmental Management:Integrated Coastal Management Act, 2008. Under NEMA,an environmental authorisation (EA) is required before anymining or prospecting activities can begin.• National Water Act, 1998 (NWA): Governs water use in SouthAfrica. If a mining or prospecting activity involves wateruse listed under section 21 of the NWA, a water-use licence(WUL) must be obtained from the Department of Waterand Sanitation (DWS), which assesses the environmentalimpacts of the proposed activity.Before mining or prospecting, it is necessary to obtain variousrights or permits under the MPRDA, NEMA and other applicableenvironmental statutes, depending on the environmentalimpact of the specific operation under consideration.From an environmental perspective, the key authorisation isan EA under NEMA. A WUL under the NWA may also be required,depending on the water uses associated with an activity.Securing an EA involves the applicant conducting a BasicAssessment (BA) or a full Scoping and Environmental ImpactAssessment (EIA), depending on the specific listed activitiestriggered by the proposed development, which is determinedby the size of a prospecting or mining project.Both the BA and EIA processes include requirements forpublic consultation. Compliance with these obligations is criticalto ensure that communities and stakeholders are properlyinformed and engaged. Failure to conduct meaningful andadequate consultation can lead to legal challenges and projectdelays. Recent high-profile cases, including the interdictproceedings which prevented Shell/Impact Africa fromconducting seismic exploration along the Wild Coast and theinterdict proceedings and subsequent appeals against seismicsurveys off the West Coast have shown that communities andenvironmental NGOs are increasingly vocal in their objections toprojects that pose significant environmental risks. In these cases,the adequacy of public consultation was spotlighted, and inthe Shell/Impact Africa case, these objections were successfullyupheld by the High Court and the Supreme Court of Appeal.This emphasises the importance of transparent, effectiveengagement with affected communities, as failure to do socan result in legal setbacks, reputational damage and evenproject cancellation.The way forward: promoting sustainability in the CRM sectorAs the world transitions towards greener-energy solutions,South Africa’s ability to incorporate sustainability into itsCRM mining sector will be crucial. In addition to adhering toexisting regulations, South Africa can adopt international bestpractices to further promote sustainability. For example, theInternational Council on Mining and Metals (ICMM) has developedMining Principles that encourage responsible environmentalstewardship, ethical business practices and transparentcommunity engagement. Similarly, the International FinanceCorporation (IFC) has outlined Environmental and SocialPerformance Standards that apply to mining projects, includingthose involving CRMs.By promoting the use of these guidelines in its nationalframework, South Africa can position itself as a global leaderin sustainable mining. This could involve encouraging the useof renewable energy in mining operations, improving wastemanagement practices and fostering stronger communityrelations through transparent consultation processes. Bypromoting innovation and sustainable practices, South Africacan ensure the long-term viability of its CRM sector whilecontributing to the global transition towards cleaner energy.As the world transitions towards greener energy solutions,South Africa’s ability to extract CRMs responsibly will not onlybolster its own economy but also set a global standard forenvironmentally conscious mining practices. By adhering tostringent regulations and prioritising sustainability, the countrycan ensure long-term benefits both for its people and theglobal supply chain.46 | www.opportunityonline.co.za
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