Regulatory and other measures have been put in place to address the serious environmental consequences of acid mine drainage.

To complement current efforts and ensure that the mining sector makes its fair contribution towards continuing acid mine drainage (AMD) expenses, consultations will be initiated on an appropriate funding mechanism, such as an environmental levy or equivalent instrument. According to the National Budget Review, the benefit in addressing this harmful negative environmental consequence will accrue to society at large and mining companies operating in affected regions.

This follows a court ruling declaring that land owners are now responsible for AMD after the land has been sold. In a case involving Harmony Gold, the Supreme Court of Appeal held that a directive issued under the National Water Act regarding the pumping and treatment of AMD remained binding on the owner of land after it had sold the land, notwithstanding the fact that a new entity now mines that area but does not contribute to the costs of pumping and treating.

Carbon tax

With the planned implementation of an AMD levy, the carbon tax is postponed to 2016. According to the Budget Review, the National Treasury and the Department of Environmental Affairs have agreed that the carbon tax needs to be aligned with the proposed desired emission-reduction outcomes. The deferral has been made to allow for this process and ensure adequate time for consultation on draft legislation.