‘Why strong financial provision regulations are essential for South Africa’s Just Transition’ 11 October 2022

Robust financial provision regulations can play an integral part in South Africa’s ability to move to a resilient low-carbon economy and provide meaningful post-extractive livelihoods for mining-affected communities. Nelly Nkosi is an environmental activist who lives near Ermelo in Mpumalanga province. One of the biggest challenges that she faces in her work for the Khuthala Environmental Care Group is the problem of an abandoned and unrehabilitated coal mine.

“In our community there are no recreation centres or public swimming pools, children often swim in mine pits that have filled with water. These places are dangerous, sometimes toxic and cause drownings to happen. Such places also threaten local livestock who stray into the pits and drown, or fall to their deaths.”

The problem of abandoned, derelict and unrehabilitated mines is a growing problem in many parts of South Africa. Even in areas where now defunct mines don’t present immediate dangers, the land is often so polluted that it cannot sustain post-mining livelihoods.

“Environmentally degraded areas make poverty and inequality worse. This goes against the objectives of the Mineral and Petroleum Resources Development Act (MPRDA), which includes the need to address historical social and economic inequality,” says CER attorney Tarisai Placedes Mugunyani

…Robust and enforceable financial provision regulations ensure that companies that profit from extractive operations are accountable for environmental damage they cause, and that such companies put aside sufficient funds to cover the cost of environmental rehabilitation…In the case of new mines, strong financial provision regulations can protect against communities experiencing environmental rights violations as well as ensuring that there is a plan in place to prevent economic devastation once the mine has closed down – if they are enforced by the Department of Mineral Resources and Energy. Importantly, robust regulations should also help to ensure that irresponsible projects are not approved in the first place. Planning for closure of the extractive activity must take place when the feasibility of the project is being assessed and before it has been licensed. That planning must take into account all stakeholders and it must include meaningful, informed consultation with them.