DUE DILIGENCE AUDITS
The signiﬁcant cost of environmental clean-up/rehabilitation, regulatory compliance with statutory provisions and best practise standards are paramount to, inter alia, business transactions. Companies are often exposed to hidden liabilities in a target company’s assets, as a result of their past and present operating practices. Environmental liabilities, especially those caused through long-term gradual contamination can remain for extended periods of time and can result in signiﬁcant costs.
An environmental due diligence audit is a procedure for investigation, evaluating and making conclusions on actual or potential environmental liabilities in a transactional setting. It entails a type of site and organisational assessment.
A due diligence allows for the following:
- Identifying, at an early stage, environmental issues;
- Evaluating the likely costs and determining whether to proceed with the transaction, and to identify the grounds upon which to do so;
- Revealing how, from an environmental perspective, the target was managed;
- It is an invaluable tool, as the information obtained can be used in the on-going management of the target; and
- Identifying, not only current environmental issues, but also those that will cause future responsibilities.
OBJECTIVES OF DUE DILIGENCE AUDITS
The objectives of a due diligence audit is to investigate all matters or issues, which have the potential to impact on a decision to purchase the target company’s assets. The objectives include:
- Assess and allocate risks associated with environmental aspects;
- To quantify the identified environmental risks; and
- To establish a baseline environmental condition of the area in question.
DUE DILIGENCE AUDITS – GCS PROJECT DATA
|2014||The Marvik Group||ERPM Due Diligence||ERPM Gold Mine and adjacent|
|2014||AMEC||Due Diligence Peer Review||Industry|
|2013||Monterey Sands||Monterey Sands Due Diligence||Benoni|
|2013||RSV GEM (a Read, Swatman & Voigt (Pty) Ltd||Mooihoek Due Diligence||Mooihoek Chrome Mine|
|2012||Linked Enterprise||Environmental Due Diligence||Kwa-Zulu Natal|
|2009||Shanduka Kangra Coal/Union Fenosa||Environmental Due Diligence and Compliance for the Kangra Group||All|
Due Diligence Audits (411.3 KB)