Regulatory Engagement in Business Rescue
Various government departments interact with mining companies during a Business Rescue process. These Departments must seek consent from the Business Rescue Practitioners (BRPs) to enforce any actions concerning regulatory provisions during business rescue. This requirement ensures that the BRPs’ plans and actions are not disrupted by regulatory enforcement, fostering a collaborative environment aimed at rescuing the company.
By pro-actively working with the Business Rescue Practitioners, the Departments can ensure that the best outcome is achieved for all stakeholders involved, particularly local communities which may be affected the most.
The Department of Mineral Resources and Energy (DMRE)
Compliance Management: The DMRE is responsible for ensuring that mining companies comply with various regulatory requirements, including environmental rehabilitation. During business rescue, the DMRE monitors compliance with financial provisions for mine rehabilitation and can initiate compliance management processes if deficiencies are identified.
Financial Provisions: Mining companies are required to contribute to a Mine Rehabilitation Fund. The DMRE reviews these financial provisions annually, and can utilise these funds for rehabilitation if a company fails to do so. However, during business rescue proceedings, the DMRE cannot enforce this regulation without a court order, which underscores the need for cooperation with the BRP.
Database Management: The DMRE maintains a database of licensed mines and their owners, including details on their financial provisions. This information is crucial for monitoring compliance and ensuring that mining companies fulfil their obligations during and after business rescue proceedings.
The Department of Water and Sanitation (DWS)
Water Use Licenses: Mining companies must obtain water use licenses from the DWS before utilising water for their operations, and are required to maintain compliance with these licensing requirements during business rescue.
Monitoring and Reporting: Companies in business rescue must continue to monitor their water usage and quality, reporting this data to the DWS. This is essential to maintain compliance with environmental standards and mitigate potential impacts on water resources.
Acid Mine Drainage (AMD): During business rescue, DWS may engage with mining companies to ensure that adequate measures are in place to mitigate AMD risks and protect surrounding water bodies.
Pollution Control Measures: DWS must balance regulatory enforcement in these areas with the need to allow companies time to restructure and recover financially.
The Department of Forestry, Fisheries and the Environment (DFFE)
Environmental Authorisations: During business rescue, companies are required to maintain compliance with these environmental regulations, which ensures that their operations do not negatively impact the environment.
Monitoring and Reporting: Companies in business rescue must monitor their environmental impact and report this data to the DFFE, maintaining their compliance with environmental standards, especially for issues like pollution and resource management.