The Mineral and Petroleum Resources Development Act or the MPRDA is legislation administered by the Department of Mineral Resources and Energy regulating South Africa’s mineral and petroleum resources.

The MPRDA defines

mineral as any substance, whether in solid, liquid or gaseous form, occurring naturally in or on the earth or in or under water and which was formed by or subjected to a geological process, and includes sand, stone, rock, gravel, clay, soil and any mineral occurring in residue stockpiles or in residue deposits, but excludes water, other than water taken from land or sea for the extraction of any mineral from such water; petroleum; or peat.

petroleum as any liquid, solid hydrocarbon or combustible gas existing in a natural condition in the earth’s crust and includes any such liquid or solid hydrocarbon or combustible gas, which gas has in any manner been returned to such natural condition, but does not include coal, bituminous shale or other stratified deposits from which oil can be obtained by destructive distillation or gas arising from a marsh or other surface deposit.

Did you know?

• In terms of the one environmental system, the Minister of Mineral Resources and Energy will issue environmental authorisations in terms of the National Environmental Management Act for mining and mining related activities and the Minister of Forestry, Fisheries and the Environment will be the appeal authority for these authorisations.
• The MPRDA confirms that mineral and petroleum resources are the common heritage of all the people of South Africa and the State is the custodian thereof for the benefit of all South Africans.
• The MPRDA creates the following limited real rights:
  • prospecting right (see sections 16-19)
  • mining right (see sections 22-27)
  • exploration right (see sections 79-82)
  • production right (see sections 83-86)
• The MPRDA creates a number of permits and permissions too, including but not limited to:
  • Reconnaissance permission (see sections 13-15)
  • Reconnaissance permit (see sections 74-75)
  • Retention permit (section 31-36)
  • Mining permit (section 27)
• The above rights, permits and permissions do not exist for ever, it’s important to look at the period of validity (including when certain actions need to take place).
• The MPRDA allows the Minister for Minerals and Energy to cancel above rights, permits and permissions in certain circumstances, see section 47.
• The MPRDA creates a number of offences with corresponding penalties, see section 98 and 99.