Chairperson, there can be no better way of celebrating 26 June, Freedom Charter Day, than by amending the Mineral and Petroleum Resources Development Act, MPRDA, to ensure that the mineral heritage of the country is equitably shared. The MPRDA is a piece of legislation that has been a significant tool in facilitating a process of redistribution of the wealth of our country, as envisaged by the Freedom Charter.
Today we proudly stand on the shoulders of the giants of our struggle who crafted the Freedom Charter, which is as relevant today as it was 53 years ago when it was conceived. We are in awe of their foresight and wisdom.
Although we are not yet where we should be in terms of changing patterns of ownership, we have made significant strides in creating an enabling environment for the participation of the previously excluded majority of our people in the mainstream of the growing economy. The amendment of this Bill and therefore the review of the Mining Charter scheduled for next year will further enhance the capacity of this ANC-led government to increase the pace of transformation in this very important sector. It is only then that we can truly say that "The people shall share in the country's wealth".
It has taken a long time to get to this point in terms of the Bill, but it was all to ensure a strong, clear and streamlined regulatory process. We believe that to a great extent we have managed to do just that. This will further enhance the economic development drive, but most importantly, it will economically empower our people.
Since the promulgation of the Act and the four years of implementation to date, the Department identified a number of provisions that required amendments in order to facilitate the smooth regulation of the industry and enhance the process of transformation in the sector.
The Bill thus had, as its main objective, the technical improvement of the principal Act to allow for a more efficient and effective management of the country's mineral resources. As a result, a number of definitions have either been brought in or clarified, for example, the definition of "beneficiation", which indicates the levels of beneficiation currently possible with our mineral commodities. This clarification is important in order to guide the industry and all of us on this important step that South Africa has taken to develop its minerals further and thereby create new jobs and develop new skills.
The Department of Minerals and Energy, DME, sees this as a major way of reducing the high levels of poverty and proposes that we create sustainable beneficiation industries, and as the DME we are leading in this process.
Section 2 of the principal Act has been improved upon to include communities and their active participation in the mineral and petroleum industries. The latter is being reinforced in the Bill by a new provision relating to a proactive administrative action where an application for a mining right covers an area occupied by a community.
Further, the separation of powers between the Minister of Finance and the Minister of Minerals and Energy has been catered for in the Bill, and the Minister of Finance will thus determine and levy state royalties in terms of an Act of Parliament, hence the Mineral and Petroleum Resources Royalty Bill that is currently going through the parliamentary process. The Minister of Minerals and Energy will prescribe levies and fees in consultation with the Minister of Finance.
The need for co-operative governance was re-emphasised through the parliamentary process, when the DME and the Department of Environmental Affairs and Tourism, DEAT, were tasked to find a solution regarding the environmental provisions in both the principal Act and the Bill. The location of such provisions in the principal Act and the Bill was an issue.
After much debate and constructive arguments, and most importantly, with the guidance of and the interaction with the Deputy President, we finally agreed on a resolution thereof and tabled the agreement before the two portfolio committees. I must thank both the chairpersons, but most importantly, both study groups of the DME and DEAT for their contribution and leadership in this regard. The agreement includes the three main broad areas that follow. Firstly, we are saying there should be one environmental impact assessment system that should be used and that is the one that is prescribed in the National Environmental Management Act, NEMA, under the Department of Environmental Affairs and Tourism.
The second one is that the Minister of Minerals and Energy is the authority responsible for implementing environmental management legislation and regulations, as set out by the Minister of Environmental Affairs and Tourism, in all prospecting, exploration, mining and production areas, and so on. Thirdly, the Minister of Environmental Affairs and Tourism is the responsible authority for appeals relating to environmental matters.
Those are the three main broad areas that constitute the agreement between the two departments; and that agreement now forms the basis of the two committees' decision to remove the environmental provisions from the Act and the Bill and place them within the ambit of the NEMA amendment process. This is a negotiated settlement between state departments and has taught us a lot in terms of co-operative governance.
This was not an easy task, but here we are. It is to a very great extent a win-win solution. The challenge now is to ensure that all those who are impacted upon, such as the mining industry, are not negatively affected by the transition, which is set to take place over 18 months. I am therefore happy to introduce new definitions, environmental authorisations, and so on.
The Bill also seeks to improve the handling of residue stock piles and residue deposits. This area of the Bill has also been contested by our stakeholders, some holding the view that the clarification of these definitions as done as a response to a court decision. I must then try to clarify that we did this only to provide clarity, the same clarity that the court should have given.
Table 3 of Schedule 2 to the principal Act already covers any common law right that either had or did not have a prospecting or mining authorisation during the repealed Minerals Act era. Therefore, the addition of "or old order right" to the two definitions seeks to clarify once and for all the legal position on mine dumps.
Again I want to assure the stakeholders that the Bill has no intention of expropriating any dump. The state is paying enough for mining legacies already as it is now paying for the rehabilitation of derelict and ownerless mines. What I want to clarify with them is that even though the provisions of the Mine Health and Safety Act are used in "works" areas, as defined in that Act, using the same provisions pertaining to operations winning minerals from dumps is more of an exception, and is merely to ensure that some authority will look after the health and safety of employees in such operations.