Mining and Petrol Rehabilitation
When any company applies for mining rights, it is now required, by law, to rehabilitate the area once the mining/prospecting operations have closed.
The Department of Minerals and Resources (DMR) requires that each mine/prospector makes financial provision for such rehabilitation before the mine begins operation (see s39(4) of the Mineral and Petroleum Resources Development Act, 2002). Such financial provision will be set out in the Environmental Management Plan (EMP) and consists of an initial upfront guarantee and ongoing financial provision. Financial provision can only be in the name of a Company, Trust or CC.
The Department of Minerals and Energy (DME) requires that owners of petroleum pipelines, petroleum storage facilities and petroleum loading facilities must comply with the following acts:
Petroleum Product Act, 1977 (DOE)
Petroleum Pipeline Act, 2003 (NERSA)
We offer a solution for proof of financial provision. In order to assist and speed up the process we will require the following documents respectively for each section.
- FICA documentation of the Mining Company
- Registered name and registration number (Form CM1)
- Registered address (Form CM22)
- Income tax and/or VAT registration number
- Related Parties (all related parties must provide contact details and certified copies of IDs)
- Shareholder 25% or more of the voting rights
- Authorised signatories (reason for authority must be explained)
- Principal Executive Officer
- Persons who act on behalf of the unlisted company (written confirmation that the person has authority to act on behalf of the unlisted company must be obtained)
- DMR letter of approval
- DMR approved EMP
- Social and Labour Plan
- Financial requirements around the mining rehabilitation:
- Capital amount required
- Most recent financial statement
- Certified copy of IDs (all partners if applicable)
- Proof of physical and postal address (all the partners if applicable)
- Proof of physical and postal address of Filling Station(PTY)LTD
- Proof of Income tax number
- Company registration documentation CK1, CK2
- Approval of site license application
- Quantum (required in order to do the necessary quotations)
- The EMP
- Proof of banking details
Our Service Providers include:
- Centriq Insurance Company Limited
- Guardrisk Insurance Company Limited
- Lombard Insurance Company Limited
- Santam Beperk
- G.I. Guarantee Acceptances (Pty) Limited
- Zurich Insurance Company South Africa Limited
- Old Mutual
Click here to download the Client Authority Advisor Appointment form.
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