The South African Financial Provisioning Regulations, 2014, which will commence on June 18 2021, mean that many mining companies will need to make up for shortfalls created by new calculations for financial provision for the rehabilitation, remediation and closure of mines.
With the compliance deadline closing in, one way that mines could make up for the shortfall is by obtaining sustainable finance and environmental social governance (ESG) investment.
Sustainable finance has been defined by the National Treasury as comprising "financial models, services, products, markets and ethical practices to deliver resilience and long-term value in each of the economic, environmental and social aspects and thereby contributing to the sustainable development goals and climate resilience".
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Originally published by Business Day (Final), Business Law & Tax, February 01, 2021.
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