Conceptualising the need for an African Minerals Classification Standard in relation to global best, Gbenga Okunlola, President, Geological Society of Africa (GSAf)

1. Prof Gbenga Okunlola
President Geological Society of Africa

2.  Approximately 30 projects are expected to come on
line from 2015 to 2018.
 New mining projects coming into full production by
the end of 2018 across various commodities include:
 • Nine copper mines
 • Four gold mines
 • Four diamond mines
 • Three coal mines
 • Three platinum mines
 • Two uranium mines
 • One iron ore mine
 • One nickel mine
 • One zinc mine
 • One potash mine

4.  These new mines make up a total of US$18
billion in investment across the continent.
 Estimate of the total forward spend on these
projects from 2015 to 2018 to be
approximately US$10.5 billion,
 With South Africa taking 29%,
 DRC 23%,
 Mauritania 8%,
 Namibia 8%,
 Zimbabwe 8%
 and Zambia 7%. (Delloite study2014

5.  Not exactly too accurate
 We expect new investments in
 Tanzania,
 Mali,
 Burkina Faso
 Nigeria
 mostly in Gold ,iron ore, coal/lignite

6.  Public reporting of exploration results,
resources and reserves
 -purposes
 Disclosure for companies quoted on stock
exchanges. –
 Objectives: Reliable, transparent information
for investors and potential investors
 •Governmental, inter-governmental, or NGO
reporting of mineral resource estimates and
forecasts. :

7.  –Objectives
 Reliable mineral inventory to underpin
minerals policies (especially cross border e.g.
Europe/Africa /Asia etc), available to
exploration and mining companies to attract
inward investment and exploration activities

8.  Two international systems for classifying and reporting
solid mineral reserves and resources •
 Standards and Codes developed by members of the
Committee for Mineral Reserves International Reporting
Standards (CRIRSCO) and •
 The United Nations Framework Classification for Fossil
Energy and Mineral Reserves and Resources (UNFC

 Others, including …
 •Russian (‘GKZ’) system used for licensing, administrative,
and national inventory –and similar systems in other FSU
republics.
 –GKZ-CRIRSCO mapping published in 2010. •
 Chinese system, adapted from an old UNFC version
 •USA –SEC system

9.  USGS Bulletin Was The Precursor to Modern
Codes
 USGS Bulletin 1450-A and USS Circular 831
 McKelvey diagram: geologic confidence and
economic feasibility axes
 SEC IG7 –Proven and Probable Reserves as
reportable, Measured, Indicated, and Inferred
Resources not reportable

10.  CRIRSCO Members
 National Reporting Organisations (NROs)
 Bodies which develop and are responsible for mineral
reporting codes, standards and guidelines for a country or
a group of countries
 NROs
 •AUSTRALASIA(JORC)
 •CANADA(CIM)
 •CHILE(ComisiÓnMinera)
 •EUROPE(PERC)
 •RUSSIA(NAEN)
 •SOUTH AFRICA(SAMREC)
 •USA(SME)

11.  AIM: Promoting International Best Practice in the
Reporting of Mineral Exploration Results, Mineral
Resources and Mineral Reserves
 –International consensus on reporting standards
 –Encourages consistent and high quality
reporting
 –through maintenance of Competent Person
standards
 •Users of standards include –Mining Companies
–Financial Institutions –Stock Exchange
Regulators –Governments –Shareholders

12.  •Transparency, Materiality, Competence are
central principles

 Materiality
 A Public Report must contain all the relevant
information which investors and their
professional advisers would reasonably require,
and reasonably expect to find, for the purpose of
making a reasoned and balanced judgement
regarding the Exploration Results, Mineral
Resources or Mineral Reserves being Reported.

13.  Competence
 A Public Report must be based on work that is the
responsibility of suitably qualified and
experienced persons who are subject to an
enforceable professional code of ethics and rules
of conduct.
 •Reports are signed off by a Competent Person
(Qualified Person in Canada) who takes personal
responsibility
 •CPs/QPs must have minimum relevant
experience and hold professional qualifications.
 Acceptable qualifications (titles) are listed in all
the codes and standards; for some jurisdictions
 registration may also be required

14.  •Recognition between NROs of suitable
qualifications (RPO agreements) – periodic
auditing of listed RPOs and membership
classes by other NROs and by regulatory
bodies
 •Discipline of professionals is by professional
bodies.
 •Discipline of companies listing and relying
on the report is through the stock exchange

15.  International Reciprocity of Competent
Persons
 In 2003 The Australian Securities Exchange
(ASX) introduced a procedure for identifying
‘Recognised Professional Organisations’ as
accredited organisations to which Competent
Persons must belong for the purpose of
preparing reports on Exploration Results,
Mineral Resources and Ore Reserves for
submission to the ASX (if they are not
members of the AusIMM or AIG).

16. Professional Organisation Minimum membership class required
Institute of Materials, Minerals and Mining Member (MIMMM) or Fellow (FIMMM)
Geological Society of London
Chartered Geologist (CGeol), Chartered Scientist (CSci) or
European Geologist (EurGeol)
Institute of Geologists of Ireland Professional Geologist (PGeo)
European Federation of Geologists European Geologist (EurGeol)
Mining and Metallurgical Society of America Qualified Professional (QP)
American Institute of Professional Geologists Certified Professional Geologist (CPG)
Society for Mining, Metallurgy & Exploration SME Registered Member
Engineering Council of South Africa Professional Engineer (Pr Eng)
:

17. South African Council for Natural Scientific Professions Professional Natural Scientist (Pr.Sci.Nat.)
Geological Society of South Africa Member or Fellow
The Southern African Institute of Mining and Metallurgy Member or Fellow
South African Council for Professional and Technical
Surveyors
Mine Surveyors and Professional Mine Surveyors
Professional Engineers Ontario P.Eng.
Association of Professional Engineers and Geoscientists
of British Columbia
P.Geo, or P.Eng,
Association of Professional Engineers and Geoscientists
of Manitoba
P.Geo, or P.Eng,
Association of Professional Geoscientists of Ontario P.Geo., P.Geo.(limited), P.Geo.(Temporary)
Association of Professional Engineers and Geoscientists
of Newfoundland and Labrador
P.Eng., P.Geo.
Association of Professional Engineers, Geologists and
Geophysicists of the Northwest Territories
P.Eng, P.Geo (or P.Geol., P.Geoph.)

18. Association of Professional Engineers, Geologists and
Geophysicists of the Northwest Territories
P.Eng, P.Geo (or P.Geol., P.Geoph.)
Association of Professional Geoscientists of Nova Scotia P.Geo.
Association of Professional Engineers and Geoscientists
of New Brunswick
P.Geo., P.Eng.
Association of Professional Engineers, Geologists and
Geophysicists of Alberta.
P.Eng., P.Geo., P.Geoph.
Association of Professional Engineers and Geoscientists
of Saskatchewan
P.Geo. or P.Eng.
Ordre des Geologues du Québec P.Geo., géo.
Ordre des Ingénieurs du Québec P. Eng. or ing.
Comisión Calificadora de Competencias en Recursos y
Reservas Mineras (Chilean Mining Commission or
Comisión Minera)
Registered Member
Russian Society of Subsoil Use Experts (OERN) Expert

19.  A Recognised Professional Organisation must:
 be a self-regulatory organisation covering professionals in
the mining and/or exploration industry;
 admit members primarily on the basis of their academic
qualifications and professional experience;
 require compliance with the professional standards of
competence and ethics established by the organisation
anywhere in the World (not just within the home
jurisdiction of the organisation); and
 have disciplinary powers, including the power to suspend or
expel a member for breaches of professional standards of
competence or ethics anywhere in the World

20.  Thus there is the need to evolve an
accommodation of competent
professionalism taking into consideration the
African peculiarity without necessarily
lowering standards
 Broadly sensitise the African
geoscientists/mining engineer /
mettallurgists of the need for competency
within a Pan African framework

21.  Overcome the challenge of sensitising the
global mining community and the funding
stock exchanges of the need and hence
acceptability of a Pan African mining Standard
 Develop acceptable continuous training
modules for potential competent persons
 Define and modulate acceptable professional
organisations/Societies within Africa that will
be acceptable to the proposed AMREC

22. 
 Thank you for Listening