An overview of the CRIRSCO International Reporting Template and its
relationship with UNFC 2009	

Roger Dixon	

South Afri...
Acknowledgements	


Ministry of Mines Government of India	

Ministry of Coal Government of India	

Federation of Indian Mi...
Presentation Agenda	


•  Overview of CRIRSCO	

•  CRIRSCO Members	

•  Potential Members	

•  International Reporting Tem...
CRIRSCO - Principle Objective	


To promote best practice in the international public
reporting of Mineral Exploration Res...
CRIRSCO Members	


Australasia:

	


	


	

JORC 	


Canada:

	


CIM

	


	

Comisión Minera de Chile

	


Chile:

	


Eu...
Securities Exchange Recognition	

ASX, NZX, PMSX Australasia:
	

CSA Toronto Canada:

	


	

JORC Code

	


	


	

	


	

...
Securities Exchange Recognition	


•  Hong Kong Exchanges (HKE)

	

 JORC, SAMREC NI 43-101 	

	


•  NYSE and NASDAQ

	

...
Potential Members	


Argentina

Turkey

China

Scandinavia

Indonesia

Colombia

Mongolia

Spain

Peru
Philippines
The Template	


INTERNATIONAL	

REPORTING	

TEMPLATE	

for the public reporting of	

	

EXPLORATION RESULTS, MINERAL RESOU...
Purpose	


•  Advisory only	

•  National Standards/Codes take precedence	

•  Model for development of new codes
• 
• 
• 
• 
• 
• 
• 

	


	


	


	


	


	

Public Report	


Reports prepared for investors or potential investors
Annual...
• Materiality	

• Transparency	

• Competency	


	


	


	


	


	

Principles
Competent Person	


•  Member or Fellow of professional body with enforceable
code of ethics	


•  Five (5) years experien...
Competent Person	


Team approach allowed but leader signs off.	

	

NB. Satisfied in own mind able to face peers and
demon...
Disciplinary Procedure	


•  Responsibility of National Reporting Organization (NRO)	

•  International agreements through...
RPOs
Fundamental Framework
• 
• 
• 
• 
• 
• 
• 
• 

	


	


Mining	

Processing	

Metallurgical	

Economic	

Marketing	

Legal	

Environmental	

Soci...
Mineral Resource	


	

Concentration or occurrence of material of economic
interest in or on the earths crust in such form...
Mineral Reserve	


•  The economically mineable part of Measured and/or
Indicated Mineral Resource	


•  Includes dilution...
Coal Terminology	


	

The terms Mineral Resource(s) and Mineral Reserve(s) ,
and the subdivisions of these as defined abov...
• 

	


	


	


	


	

Coal terminology	


Marketable Coal Reserves , representing beneficiated or
otherwise enhanced coal ...
Proved Mineral Reserve	


	

	


Socio-­‐Economic	
  Viability	
  

E2	
  

E3	
  
F1	
  
F2	
  

Project	
  
Feasibility	...
CRIRSCO Template-UNFC 2009	


CRIRSCO	
  Template

Mineral
Reserve

Proved
Probable

UNFC-­‐2009	
  
“minimum”	
  
Categor...
UNFC 2004 - UNFC 2009	


G Axis	

2004 - Stage of Exploration plus level of confidence	

2009 – level of confidence in the e...
2011 Draft Guidelines Aug 26 2011	


	


	


•  Reconnaissance
•  Inferred 	

 	

•  Indicated 	

•  Measured 	


	


	


...
Coal Resource Classification
• 

All Coal Resources must be classified into Inferred, Indicated and
Measured Resources cate...
UNFC 2009	


•  Generic system - solid minerals and fossil energy	

•  Framework classification not a reporting standard 	
...
Acknowledgements	


	

	


	


	


	

	


	

	


	


	


	

ALL SLIDES	


	

	


	


	

WWW.CRIRSCO.COM
CRIRSCO - UNFC	


•  1999 Geneva accord solid minerals only	

•  2004 UNFC common definitions modified -oil and gas
added	

...
Exploration Results	


	

Exploration Results include data and information
generated by exploration programmes that may be...
History	


•  CMMI 1994	

•  Denver Accord 1997	

•  UNECE agreement November 1999	

•  CRIRSCO formed in Cairns, Australi...
Mineral Resources/Reserves	


•  Must be clearly stated Mineral Resources are inclusive
or exclusive of Mineral Reserves	
...
CRIRSCO - UNFC	


•  1999 Geneva accord solid minerals only;	

•  2004 UNFC common definitions modified to include oil
and g...
CRIRSCO Template re oriented
UNFC – 2009	


Generic, Principle based	

3 Axis	

Economic, 	

Feasibility, 	

Geological	

Numerical code	

	


	

Appli...
UNFC 2009 – CRIRSCO TEMPLATE
Compliance Issues	


•  Gross Tonnes In Situ is the only tonnage reported 	

•  Mineability is not discussed, in terms of ...
• 
• 
• 
• 
• 
• 

	


	


	

Compliance Issues	


Appropriate Modifying Factors have not been applied;	

Appropriate Coal...
Presentation at: National Conference on Sustainable Mining and the United Nations Framework Classification (UNFC)  - Chall...
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Presentation at: National Conference on Sustainable Mining and the United Nations Framework Classification (UNFC) - Challenges and Opportunities in India.

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By Roger Dixon: Presentation at National Conference on Sustainable Mining and the United Nations Framework Classification (UNFC) - Challenges and Opportunities in India. October 31,2013 in New Delhi, India.

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Presentation at: National Conference on Sustainable Mining and the United Nations Framework Classification (UNFC) - Challenges and Opportunities in India.

  1. 1. An overview of the CRIRSCO International Reporting Template and its relationship with UNFC 2009 Roger Dixon South Africa Representative, CRIRSCO New Delhi Oct 30, 2013
  2. 2. Acknowledgements Ministry of Mines Government of India Ministry of Coal Government of India Federation of Indian Mineral Industries (FIMI) Jointly in association with; United Nations Economic Commission for Europe United Economic and Social Commission for Asia and the Pacific World Bank
  3. 3. Presentation Agenda •  Overview of CRIRSCO •  CRIRSCO Members •  Potential Members •  International Reporting Template •  UNFC 2009 •  Coal Reporting Specifics
  4. 4. CRIRSCO - Principle Objective To promote best practice in the international public reporting of Mineral Exploration Results, Mineral Resources and Mineral Reserves. CRIRSCO is an international advisory body without legal authority, relying on its constituent members to ensure regulatory and disciplinary oversight at a national level. It recognises the truly global nature of the minerals industry and the agreed need for international consensus on reporting standards
  5. 5. CRIRSCO Members Australasia: JORC Canada: CIM Comisión Minera de Chile Chile: Europe and UK: Russia PERC NAEN South Africa: SAMREC United States: SME
  6. 6. Securities Exchange Recognition ASX, NZX, PMSX Australasia: CSA Toronto Canada: JORC Code NI-43101, CIM Standards The Code for the certification of Exploration Prospects, Mineral Resources and Ore Reserves ESMA W Europe and UK: All CRIRSCO aligned incl. (PERC) CIM,IMMM, JORC, NAEN, SAMREC, SME Santiago SX Chile: AIM
  7. 7. Securities Exchange Recognition •  Hong Kong Exchanges (HKE) JORC, SAMREC NI 43-101 •  NYSE and NASDAQ SEC Industry Guide 7 •  JORC,NI 43-101,PERC SGX Singapore •  JSE South Africa: •  Moscow, Russia SAMREC Code NAEN Code
  8. 8. Potential Members Argentina Turkey China Scandinavia Indonesia Colombia Mongolia Spain Peru Philippines
  9. 9. The Template INTERNATIONAL REPORTING TEMPLATE for the public reporting of EXPLORATION RESULTS, MINERAL RESOURCES AND MINERAL RESERVES JULY 2006
  10. 10. Purpose •  Advisory only •  National Standards/Codes take precedence •  Model for development of new codes
  11. 11. •  •  •  •  •  •  •  Public Report Reports prepared for investors or potential investors Annual Reports Quarterly Reports Information Memoranda Websites Public Presentations Stock Exchange Information Systems
  12. 12. • Materiality • Transparency • Competency Principles
  13. 13. Competent Person •  Member or Fellow of professional body with enforceable code of ethics •  Five (5) years experience relevant to type of mineralization and deposit and the activity being undertaken
  14. 14. Competent Person Team approach allowed but leader signs off. NB. Satisfied in own mind able to face peers and demonstrate competence in the commodity, type of deposit and situation.
  15. 15. Disciplinary Procedure •  Responsibility of National Reporting Organization (NRO) •  International agreements through Recognised Professional Organizations (RPO)
  16. 16. RPOs
  17. 17. Fundamental Framework
  18. 18. •  •  •  •  •  •  •  •  Mining Processing Metallurgical Economic Marketing Legal Environmental Social Modifying Factors •  Infrastructure •  Governmental
  19. 19. Mineral Resource Concentration or occurrence of material of economic interest in or on the earths crust in such form quality and quantity that there are reasonable prospects for eventual economic extraction Not an inventory of all mineralization!
  20. 20. Mineral Reserve •  The economically mineable part of Measured and/or Indicated Mineral Resource •  Includes dilution and losses •  Appropriate assessments have been carried out and modifying factors have been considered •  Demonstrated at time of reporting extraction is reasonably justified •  Proven and Probable
  21. 21. Coal Terminology The terms Mineral Resource(s) and Mineral Reserve(s) , and the subdivisions of these as defined above, apply also to coal reporting, but if preferred by the reporting company, the terms Coal Resource(s) and Coal Reserve(s) and the appropriate subdivisions may be substituted
  22. 22. •  Coal terminology Marketable Coal Reserves , representing beneficiated or otherwise enhanced coal product where modifications due to processing have been considered in addition to mining factors such as dilution, may be publicly reported in conjunction with, but not instead of, Coal Reserves. •  The basis of the predicted yield to achieve Marketable Coal Reserves should be stated.
  23. 23. Proved Mineral Reserve Socio-­‐Economic  Viability   E2   E3   F1   F2   Project   Feasibility   F3   F4   G1   G2   G3   Geological  Knowledge   G4   E1; F1; G1   UNFC E1   (2009) (111)
  24. 24. CRIRSCO Template-UNFC 2009 CRIRSCO  Template Mineral Reserve Proved Probable UNFC-­‐2009   “minimum”   Categories E1 F1 Measured Mineral Resource Indicated G2 Commercial Projects G1 E2 F2 Inferred Exploration  Results G1 UNFC-­‐2009  Class G2 Potentially  Commercial   Projects G3 E3 F3 G4 Exploration Projects
  25. 25. UNFC 2004 - UNFC 2009 G Axis 2004 - Stage of Exploration plus level of confidence 2009 – level of confidence in the estimate only F Axis 2004 - Reserves F1 or F2 2009 - Reserves F1 Feasibility or pre-feasibility definitions dropped in 2009
  26. 26. 2011 Draft Guidelines Aug 26 2011 •  Reconnaissance •  Inferred •  Indicated •  Measured UNFC 2009 (STD 334) 334 (STD 333) 223 (STD 332) 222 (STD 331) 221
  27. 27. Coal Resource Classification •  All Coal Resources must be classified into Inferred, Indicated and Measured Resources categories. •  Classification based solely on borehole spacing, and in particular the translation of a best practice borehole spacing from one coalfield to another coalfield is not competent. For instance the use of “JORC classification” (as per Aus. Guidelines), just to “up the Measured and Indicated tonnages”, in Southern African coal deposits is misleading. The continuity and confidence in typical Australian Coalfields like the Bowen Basin, is an “order of magnitude” better than the coalfields in Southern Africa.
  28. 28. UNFC 2009 •  Generic system - solid minerals and fossil energy •  Framework classification not a reporting standard •  Allows for non economic mineralization •  No competency requirement •  No Securities Exchange recognition Important tool for harmonized generic terminology at a level suitable for global communication
  29. 29. Acknowledgements ALL SLIDES WWW.CRIRSCO.COM
  30. 30. CRIRSCO - UNFC •  1999 Geneva accord solid minerals only •  2004 UNFC common definitions modified -oil and gas added •  2004 CRIRSCO re-engaged •  Member ad hoc group of experts - Mapping UNFC 2004, PRMS •  Member EGRC - UNFC 2009 and Specifications task force II
  31. 31. Exploration Results Exploration Results include data and information generated by exploration programmes that may be of use to investors but is not part of a formal declaration of Mineral Resources or Reserves Tonnage and grade not to be reported!
  32. 32. History •  CMMI 1994 •  Denver Accord 1997 •  UNECE agreement November 1999 •  CRIRSCO formed in Cairns, Australia 2002 •  Template initiated Reston VA 2003, published 2006
  33. 33. Mineral Resources/Reserves •  Must be clearly stated Mineral Resources are inclusive or exclusive of Mineral Reserves •  Two should never be added together •  If inclusive relevant details of unmodified resources should be reported
  34. 34. CRIRSCO - UNFC •  1999 Geneva accord solid minerals only; •  2004 UNFC common definitions modified to include oil and gas; •  2004 CRIRSCO re-engaged; •  Member ad hoc group of experts - Mapping UNFC 2004, PRMS •  Member EGRC - UNFC 2009 and Specifications task force II
  35. 35. CRIRSCO Template re oriented
  36. 36. UNFC – 2009 Generic, Principle based 3 Axis Economic, Feasibility, Geological Numerical code Applied directly or as harmonizing tool
  37. 37. UNFC 2009 – CRIRSCO TEMPLATE
  38. 38. Compliance Issues •  Gross Tonnes In Situ is the only tonnage reported •  Mineability is not discussed, in terms of expected mining method and selectivity; •  the cut-offs are not applied and are not presented; •  Raw Coal Quality is not reported •  Theoretical Yield and Target Quality are not reported; •  Target Products and Markets are not discussed. •  Reasonable and realistic prospects of eventual economic extraction are not adequately motivated;
  39. 39. •  •  •  •  •  •  Compliance Issues Appropriate Modifying Factors have not been applied; Appropriate Coal Processing Modifying Factor discounts have not been applied to the Saleable Product; Infrastructure Constraints are not addressed; Coal Reserves are not based on a scheduled Life of Mine Plan; Economic Model has not been applied to the Life of Mine Plan; Coal Reserves must contain both ROM and Saleable tonnage estimates as well as the expected Product Qualities; Coal Resource is in fact not a Coal Reserve

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