Enhesa Flash November 2014 Issue | Page 10

AFRICA: WHAT’S DRIVING EHS REGULATORY CHANGE? According to the International Labor Organization, ‘‘the industrialization of developing countries is often accompanied by a rapid increase in numbers of fatal and non-fatal accident rates, with the growth of new factories and the development of the infrastructure, the construction of new buildings and roads, all of which may employ untrained (and migrant) workers in new environments, exposed to risks hitherto unknown to them”. Due to increased concerns about the negative impacts MNC operations have on the environment and workplaces, many African governments have been aggressively introducing stringent EHS regulatory frameworks aimed at preventing the harmful effects of these operations from taking a toll on human life and the environment. With numerous policy and legislative instruments being continuously developed and strengthened, enforcement and harsh penalties have also been increasing. Recent developments in South Africa and Nigeria South Africa with the second biggest economy on the continent has by far introduced the most EHS regulations of any other country in the continent. These regulations cover many aspects including construction, waste management, carbon emissions, mining and ozone-depleting substances. In order to improve health and safety of all persons and companies involved in construction work, in February 2014 the Department of Labour adopted the Construction Regulations, 2014. Under these Regulations, as of 7 August 2015, any company that intends to Enhesa Flash October/November 2014 | www.enhesa.com have construction work carried out must apply for a construction work permit from the provincial director of the Department of Labour. The permit application must be lodged at least 30 days before any construction work is carried out. Additionally, the company will be responsible for applying for the permit even if the construction work is going to be carried out by a third party. South Africa’s mining industry with its vast mineral resources has also been subject to increased regulatory changes. Mining companies operating there should be aware that as of 8 December 2014, all environmental related mining activities will now be regulated under One Environmental System. Under the amendments introduced by the One Environmental System, company directors of any mining company or members of a close corporation will be jointly and individually liable for any negative impacts, including damage, degradation or pollution, advertently or inadvertently caused by the company or close corporation which they represent. Additionally, amendments made to the Mineral and Petroleum Resources Development Bill, 2013 were passed by Parliament in March 2014 and the Bill has since been sent to President Jacob Zuma for assent. The main objective of the Bill is to strengthen existing provisions relating to among other things environmental authorizations, mine closures, the management of residue stockpiles, penalties and the implementation of Social and Labour Plans which are aimed at increasing socio-economic developments through mining. The Bill proposes to make penalties more stringent and tougher with an intention to deter non-compliance. Penalties for non-compliance would for the first time be linked to a percentage of the mining company’s annual turnover and exports during the preceding financial year. If, for instance, the mining company prospects, mines, removes, conducts operations, explores for or even produce any minerals without a mining permit, right or environmental authorization, it would be fined 10% of its annual turnover and exports during the preceding financial year or face imprisonment for a period not exceeding four years or both such fine and imprisonment. Among other things once the Bill is adopted, mining companies would only be issued with mining permits if the proposed mining is not going to result in unacceptable pollution, ecological degradation or damage to the env \