NEWS & SNIPPETS
NEW MINING GUIDELINES In March 2022, the DMRE published the Artisanal and Small-Scale Mining (ASM) Policy and the Mine Community Resettlement Guidelines. Both policy documents illustrate the desired integration of ESG standards in the mining sector. The regulator provides guidelines on ASM and resettlement of mine communities to assist them to fulfil their ESG obligations.
THE ASM POLICY Currently, mining laws in South Africa do not regulate ASM as a discrete form of mining. Instead, a mining permit which is less onerous than a mining right can be obtained, but ASM miners still struggle to meet its requirements. The ASM Policy aims to create a formal ASM industry that can operate in a sustainable manner and contribute to the economy. It introduces formal definitions for artisanal and small-scale mining, setting out monetary thresholds to differentiate between artisanal (maximum R1-million) and small-scale (maximum R10-million) miners. It also distinguishes between illegal mining, which is a criminal activity, and ASM, for which an ASM permit is required.
The ASM Policy provides structure to the ASM industry and, as it becomes formalised and pays taxes, the ASM industry will be able to contribute to poverty alleviation and economic growth. The ASM may mostly be limited to surface and opencast mining.
THE RESETTLEMENT GUIDELINES
Resettlement for mining is not a new phenomenon. It is a global issue which has attracted the attention of international bodies such as the International Labour Organisation and the International Council on Mining and Metals, both of which have published guidance documents. The Resettlement Guidelines outline the process for applicants and holders of prospecting and mining rights or mining permits to follow when their operations require the physical resettlement of landowners, lawful occupiers, holders of informal land rights and mine and host communities. It also applies to both new operations and existing mines that are expanding and is intended to apply throughout the lifecycle of the operation, whenever resettlement is necessary.
IFC TO EXPAND GREEN BUILDING FINANCING IN SA
To support the construction of green buildings in South Africa, IFC is providing a R600-million ($42-million equivalent) loan package to Business Partners, a South African non-banking financing entity specialised in providing finance, mentorship and support programmes to SMEs.
Business Partners will use IFC’s loan to finance the construction of certified green commercial buildings in South Africa and/or to renovate existing commercial buildings to make them more environmentally friendly, making them at least 20% more energy efficient. Eligible green building certifications will include EDGE, LEED, BREEAM and Green Star. IFC will also provide financial incentives to Business Partners to partially offset the costs involved in greening and certifying buildings, based on the company meeting certain green building targets in their portfolio. Conventional buildings account for almost 40% of energyrelated greenhouse emissions worldwide due to a growing urban population and outdated construction practices. An IFC study estimates that South Africa’s green building demand presents a $7-billion investment opportunity between 2016 and 2030. Although the supply of green buildings in the country is growing, the green building market is still at a nascent stage.
WIND AND SOLAR
Global electricity generation. (Terawatt hours)
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Ember's Global Electricity Review
The Global Electricity Review 2022 reports that wind and solar generated over a tenth (10.3%) of global electricity for the first time in 2021, rising from 9.3% in 2020, and twice the share compared to 2015 when the Paris Climate Agreement was signed (4.6%). Combined, clean electricity sources generated 38% of the world’s electricity in 2021, more than coal (36%).
