Mineral and Petroleum Resources Development Act: Regulations: Amendments

4 No. 50623 GOVERNMENT GAZETTE, 7 MAY 2024 GENERAL EXPLANATORY NOTE: | | Words in bold type in square brackets indicate omissions from existing enactments. Words underlined with a solid line mdicate insertions in existing enactments. ARRANGEMENT (These amendments are only in respect of petroleum applications) CHAPTER 4 GENERAL AND MISCELLANEOUS REGULATIONS Application fees for permission, permits, rights and appeals Amendment of regulation 75 of Act 28 of 2002 Regulation 75 is hereby amendec-: (a) by the substitution of subregulation (2) of the following subregulation: 1. Application fees for onshore and offshore permits and rights listed on the table below are as per base year 2023 and will increase by the annual average headline South African Rand (ZAR) Consumer Price Index (CPI), year on year. The applicable adjusted rates will be from the 1st of April every year and will be published on the Designated Agency's website. DESCRIPTION _ONSHORE (R) _OFFSHORE (USD) _ 1. (a) Reconnaissance permit [100,00] 20 000,00 | [500,00] 3500 or rand — | equivalent 2. (b) Technical co-operation _ [100,00] 10 000,00 | [500,00] 7400 or rand permit | _ equivalent This gazette is also available free online at www.gpwonline.co.za <!-- page 3 --> STAATSKOERANT, 7 MEI 2024 No. 50623 5 3. Exploration right or renewal —_| [500,00] 30 000,00 | [1000.00] 4000 or rand thereof | equivalent _ . 4. Production right or renewal | [1000,00] 50 [5000.00] 4500 or rand thereof | 000,00 | equivalent a Amendment of regulation 76 2. Regulation 76 is hereby amended (b) by the substitution for sub regulation (1) of the following subregulation: “(1) The prospecting fees for exploration fees] payable as contemplated in section (19}(2)(f) [and section 82(2)(e)} of the Act, shall be as foliows: (c) by the substitution of paragraphs (a) and (c) of the following paragraphs: {a) A prospecting right [or an exploration right] granted in terms of section 17 {or section 80] of the Act [, on land other than offshore areas], the scheduled rates shall apply as categorized below: ‘CATEGORY _——s—sdLA ee B | Area in hectares 00-1000, | 1001 and greater | | Year —_ | Fixed annual {R) | Rate R/Hectare | | iM | 1000,00 1,00 i_t 1100.00 [4,50 2 a 13 1200,00 2,00 4 1300,00 2,50 5 —____ | 1400,00 3,00 7 All hectares will be rounded to the nearest hectare; by rounding up if the fraction is 0,5 hectare or more, or otherwise by rounding down. a oe (c) A renewal of a prospecting right [or an exploration right] granted in terms of section 18 [or section 81] of the Act, the following scheduled rates apply as categorized below: CATEGORY A 'B Area inhectares | 0-1000 1001 and greater _Year _Fixed annual (R) _| Rate R/hectare 1 | 2800.00 -_ 5.00 This gazette is also available free online at www.gpwonline.co.za <!-- page 4 -->

6 No. 50623 GOVERNMENT GAZETTE, 7 MAY 2024 2900.00 | 6,00 | "3000.00 £7.00 jes bro (i) All hectares will be rounded to the nearest hectare; by rounding up if the fraction is 0,5 or more, by otherwise rounding down. [ {ii) In the case of an exploration right renewed for more than one period of two years as provided for in section 81 (4), the renewed exploration fees will escalate at R1,0 per annum for each subsequent renewal] (a) by the deletion of paragraph (f) and (g). (e) by the substitution of subregulations (2)(3)(4)(5) for the following sub regulations: “(2) The prospecting fees [or exploration fees] must be paid by the holder of such right annually in advance and not later than 30 days from the commencement date of such right and thereafter not later than 30 days following the anniversary of each respective year of the prospecting right for the duration thereof.” (3) If the prospecting fees [or exploration fees] referred to in sub regulation (2) are not paid punctually on the due dates of payment, the holder shall be in mora debitoris and shall pay interest thereon at the rate prescribed in terms of section 80 of the Public Finance Management Act, 1999 (Act No.1 of 1999) reckoned from the day following the last day allowed for payment up to and including the day of payment.” (4) Upon the relinquishment of areas already prospected [or explored], in respect of the applicable prospecting [or exploration] right, excluding a right granted, over a diamond concession area, the prospecting [or exploration] fees payable may be reduced accordingly: Provided that- (a) written notification with details of the relinquishment is submitted by the holder of the prospecting [or exploration] right to the regional Manager [or Designated Agency, whichever is applicable,] at least 90 days before payment of the annual prospecting [or exploration] fees becomes due: and (b) the holder is not in mora debitoris due to late payments on any amount in respect of prospecting [or exploration] fees, or where any debt in respect of prospecting [or exploration] fees are outstanding.” This gazette is also available free online at www.gpwonline.co.za <!-- page 5 --> STAATSKOERANT, 7 MEI 2024 No. 50623 7 (5) Where advance payments have been made and the prospecting [or exploration] right is abandoned, suspended or cancelled before the lapsing of such right, no refunds of prospecting [or exptoration] fees paid will be allowed.” Insertion of regulation 76(A) (1) 1. The following regulation is hereby inserted in the regulations after regulation 76: “Onshore and Offshore exploration fees 76(A)(1) The exploration fees payable as contemplated in section 82(2)(e) of the Act, shall be as follows: Onshore 1. The exploration fees for onshore rights listed on the tables below are as per base year 2023 and will increase by the annual average headline South African Rand (ZAR) Consumer Price Index (CPI), year on year. The applicable adjusted rates will be from the 15! of April every year and will be published on the Designated Agency’s website. The increase will be effective on the anniversary date of the exploration right and subsequent renewal. initial Period: CATEGORY A B Areas in hectares 0-1000 1007- greater Year Minimum annual amount Rate R/hectares {R) 1. 2000 2.00 2. 2600 3.00 3 2900 4,00” 2. The onshore exploration renewal fees payable as contemplated in section 81 of the Act, shall be as follows: First Renewal Period: CATEGORY A B Areas in hectares 0-1000 1001 - greater Year Minimum annual amount Rate R/hectares (R) 7. 6000 6,00 2. 6900 7.00 This gazette is also available free online at www.gpwonline.co.za <!-- page 6 -->

8 No. 50623 GOVERNMENT GAZETTE, 7 MAY 2024 Second Renewal Period: CATEGORY - JA [B | _Areas in hectares 0-1000 1001- greater — | Year Minimum annual amount Rate R/hectares | 1. {8000 | 8.00 : 2. 9000 9 00 Third Renewal Period: CATEGORY [A |B Areas in hectares 0-1000 1001- greater | Year Minimum annual amount Rate R/hectares — ee (RE) 1. 10000 10,00 pee ; L2. 11000 |} 17,00 7 a (3) All hectares will be rounded to the nearest hectare: by rounding up if the fraction is 0,5 hectare or more, or otherwise by rounding down. Offshore: 1. The exploration fees for offshore rights listed on the tables below are as per base year 2023 and will increase by the annuai average headline United State Dollars (USD) consumer price index (CPI), year on year. The applicable adjusted rates will be from the 1° of April every year and will be published on the Designated Agency's website. The increase will be effective on the anniversary date of the exploration right and subsequent renewal period. Initial Period: Initial ER period (First Minimum annual amount Annual Rate Per km? _Term) (USD) | (USD) 7, $50 000,00 or rand $10 or rand equivalent equivalent (base year (base year 2023) 2023) This gazette is also available free online at www.gpwonline.co.za <!-- page 7 --> STAATSKOERANT, 7 MEI 2024 No. 50623 9 (2) The offshore exploration renewal fees payable as contemplated in section 81 of the Act, shall be as follows: Renewal Periods; | Renewal term Minimum annual amount Annual Rate Per km? 1. $70 000,00 or rand | £15 or rand equivalent 2. $90 000,00 or rand | $20 or rand equivalent I 8 Quivaationt — | 3. $250 000,00 or rand $25 or rand equivalent | - equivalent” —_ | (3) All square kilometer will be rounded to the nearest square kilometer: by rounding up if the fraction is 0,5 square kilometer or more, or otherwise by rounding down. Payment of exploration fees (1) The exploration fees must be paid by the holder of such right annually in advance and not later than 30 days from the commencement date of such right and thereafter not later than 30 days following the anniversary of each respective year of the exploration right for the duration thereof. (2) If the exploration fees referred to in sub regulation (1) are not paid on the due date, the hoider shall be in mora debitoris and shall pay interest thereon at the rate prescribed in terms of section 80 of the Public Finance Management Act, 1999 (Act No.1 of 1999) and shall be reckoned from the day following the last day allowed for payment up to and including the day of payment. (3) Upon the relinguishment of areas already explored, in respect of the applicable exploration right, excluding a right granted over a, the exploration fees payable may be reduced: Provided that- (a) written notification with details of the relinguishment is submitted by the holder of the exploration right to the Designated Agency at least 90 days before payment of the annual exploration fees becomes due; and (b) the holder is not in mora debitoris due to late payments on any amount in respect of exploration fees, or where any debi in respect of exploration fees is outstanding. This gazette is also available free online at www.gpwonline.co.za <!-- page 8 -->

10 No. 50623 GOVERNMENT GAZETTE, 7 MAY 2024 (4) Where advance payments have been made and the exploration right is abandoned, suspended or cancelled before the lapsing of such right, no refunds of exploration fees paid will be allowed.” This gazette is also available free online at www.gpwonline.co.za