State of codes and standards for the reporting of mineral resources and reserves

The reporting and valuation of commodities (agricultural, mineral and energy) is as old as humanity. Concerns over resource scarcity and the accuracy of mineral reporting were described as early as 1798 by Thomas Maltus. In the more recent history of the late 20th and early 21st centuries within the space of mineral commodity valuation, there has been a drive to standardize this in various ways and by various organizations — governments at national and local levels, industry groups, international and regional nongovernmental organizations (NGOs), and research organizations. Figure 1: The United Nations Framework Classification for Resources (UNFC) focuses on socioeconomic viability, project feasibility and degree of confidence. As the governance on extraction and value definition changes and increases to ensure compliance, competing interests are coming more to the fore due to recent geopolitical shifts, as well as the ever-growing human population and its needs. These competing interests can be described in some general, larger themes, such as human or social (primarily health and safety, but also increasingly cultural) and environmental versus economic and geopolitical. This article aims to provide an overview and some introductory insights, as well as guidance, on the various definitions of mineral resources and reserves.Environmental, social and governance (ESG) considerations are touched on as well. Mineral valuation The valuation of minerals is generally done in two ways: as resources, and as reserves. A resource is mineral deposit of economic value, and a reserve is mineral deposit that is extractable. It is important to note that a reserve generally needs to be profitably extractable (as most listed entities aim to be profitable). Therefore, most codes mentioned in this paper have more specific definitions than previously described. The terms economic, economically, mineable, extractable and profitable have certain implications that will not be discussed in this article, as it does not align with the article’s intent. Cutoff grade, ore and waste Another important concept of mineral valuation is cutoff grade (CoG). For this article, the following statement best defines CoG: “Cutoff grade is the minimum grade required in order for a mineral or metal to be economically mined (or processed). Material found to be above this grade is considered to be ore, while material below this grade is considered to be waste” (Wikipedia, 2023). For further understanding, Lane (1997), Hall (2014) and Poniewierski (2016) provide deeper insights. Committee for Mineral Reserves International Reporting Standards The global peak body for this is the Committee for Mineral Reserves International Reporting Standards (CRIRSCO). CRIRSCO was formed in 1994 and initially was an informal alliance of national reporting organizations (NROs) in participating countries. In recent years, with the increase in international activity associated with the mining industry, CRIRSCO has become a more rigorously constituted committee, which is governed by its terms of reference and organizational statutes.CRIRSCO represents membership organizations from countries and regions as detailed in Table 1. There is the prospect of other regions and countries joining in the future. United Nations Framework Classification for Resources The United Nations Framework Classification for Resources (UNFC) aims to provide countries, companies, financial institutions and other stakeholders with a futuristic tool for the sustainable development of energy and mineral resource endowments. UNFC applies to energy resources, including oil and natural gas, renewable energy and nuclear energy; minerals; injection projects for the geological storage of carbon dioxide (CO2); groundwater; and anthropogenic resources, such as secondary resources recycled from residues and wastes. The UNFC focuses on socioeconomic viability, project feasibility and degree of confidence (Fig. 1). It has direct justification links to the U.N. Sustainable Development Goal # 7 on access to clean and affordable energy. The UNFC aims for the direct comparison of projects that extract primary energy fuels, such as oil, natural gas, coal and uranium, with renewable energy projects as well as metalliferous projects. International Energy Agency and International Atomic Energy Agency The International Energy Agency (IEA) does not currently have a framework for the classification or valuation of mineral resources; however, it does have policies that can influence these. The IEA has focused predominantly on fossil fuels; however, with renewable energy sources becoming more prevalent, there could be a shift in focus, and the IEA is cooperating with the International Atomic Energy Agency (IAEA) on nuclear power for the clean energy transition. Valuation codes It is important to note that there is a difference between valuation codes such as the VALMIN, CIMVal and SAMVal codes of Australia, Canada and South Africa, respectively, and the reporting codes of mineral resources and reserves. A summary (Table 2) shows the key differences between the VALMIN and JORC codes. The International Mineral Valuation Committee (IMVAL) is the global overarching entity that governs this process. It provides a template code. Members of IMVAL are: Canadian Institute of Mining, Metallurgy and Petroleum (CIM) of Canada. Society for Mining, Metallurgy & Exploration (SME) of the United States. The VALMIN Committee of Australia. SAMCODES Standards Committee of South Africa. International Institute of Minerals Appraisers of the United States. Mining and Metallurgical Society of America of the United States. Country insights The following are insights into the reporting requirements and specifics of several countries. Australia. In Australia, the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the Joint Ore Reserves Committee (JORC) Code) is a professional code of practice that sets minimum standards for public reporting. It provides a mandatory system for the classification of exploration results, mineral resources and ore reserves according to the levels of confidence in geological knowledge, and technical and economic considerations in public reports. The JORC Code was first published in 1989, with major updates in 1992, 2004 and 2012. A new version was released in July 2024 for review and commentary before being finalized in late 2024 or early 2025. It is expected to have some significant additional details, particularly around ESG issues. Figure 2 shows an overview of the general relationship of exploration results, mineral resources and ore reserves as per the JORC Code.Further relevant documentation in Australia are Chapter 5 of ASX Listing Rules and the ASX Guidance Notes, as well as the aforementioned VALMIN Code. Brazil. Brazil’s Comissão Brasileira de Recursos e Reservas (CBRR) is an institution created in 2015 with the goal to establish, sponsor and manage initiatives to promote and develop the mining sector in Brazil. These initiatives aim at the best practices of engineering, geology and exploration, and giving orientation for reporting mineral resources and reserves. The first CBRR guide was published in 2016, after the CBRR became the ninth CRIRSCO member in late 2015. The CBRR code is based on the CRIRSCO’s international reporting template (IRT), which sets out the minimum standards, additional guidelines and recommendations for the public reporting of exploration results, mineral resources and mineral reserves. Canada. The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) has an extensive website outlining the requirements in Canada for the reporting of mineral resources and reserves. It gives details on the standards and best practices, and provides additional guidance. The key regulatory document is National Instrument 43-101, developed by the Canadian Securities Administrators (CSA) and published in 2011. Additionally, TSX Appendix B sets out requirements for companies when providing information. The Mining Technical Advisory and Monitoring Committee provides advice to the CSA and serves as a forum for continuing communication between the CSA and the mining industry. Chile. Chile’s Comisión Calificadora de Competencias en Recursos y Reservas Mineras is the institution that oversees the documentation and practices around the reporting of mineral resources and reserves. Its code has been developed since 2002 and was formalized in 2008. It is legislated under the Ley No 20235 act. Figure 2: General relationship between exploration results, mineral resources and ore reserves in Australia – JORC Code. China. Within China, the responsibility to outline definitions for mineral resources and reserves lies with the Ministry of Natural Resources of the People’s Republic of China, according to Zuo et al. (2021). Chen (2023) and Sun et al. (2020) have confirmed this and elaborated on the differences between the JORC Code end China’s National Standard (GB/T 17766-2020). Separately, they have assessed that, by and large, the code and the standard are the same, and have the same intent; however, as they are driven by different organizations within their countries of origin, they have some minor differences. Also, applications for the National Standard are broader than for the JORC Code. The 2020 edition of National Standard GB/T 17766 was updated from the 1999 edition. The China Association of Mineral Resources Appraisers is a subsidiary of the Ministry of Natural Resources and governs the oversight of mineral appraisal requirements. It states it is a voluntary organization and aims to ensure individuals who conduct mineral appraisals are competent. According to Chen (2023), China’s stock markets are based in Shanghai and Shenzhen on the mainland, and in the Hong Kong special administrative region. The Shanghai Stock Exchange requires three sectors to publish mineral resources of coal, steel and nonferrous metals. For overseas deposits, particularly in the nonferrous metal space, international codes are accepted. Europe. The Pan European Reserves and Resources Reporting Committee (PERC) Standard for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (PERC Reporting Standard) sets out the minimum standards, additional guidelines and recommendations for the public reporting of exploration results (including exploration targets), mineral resources and mineral reserves. Participating organizations are the Institute of Materials, Minerals and Mining (IOM3), Institute of Geologists of Ireland (IGI), Geological Society of London (GSL), Fennoscandian Association for Metals and Minerals Professionals (FAMMP), European Federation of Geologists (EFG) and Iberian Mining Engineers Board (IMEB). The EFG has a diverse membership of countries that are not involved in the other organizations, but also includes some of these organizations. The standard is the most recent and also has definitions for study types (accuracies) and ESG considerations. India. India joined CRIRSCO in 2019 as a member. The National Committee for Reporting Mineral Resources and Reserves in India (NACRI) was formed as an independent body in 2015 under the guidance of the Mining Engineers’ Association of India (MEAI). It is responsible for publishing the Indian Mineral Industry Code (IMIC) for Reporting Exploration Results, Mineral Resources and Mineral Reserves. The code is very similar to the Australia JORC Code. The IMIC also states it has drawn on South Africa’s SAMREC Code (2016) and the 3rd edition of the SME Mining Engineering Handbook (2011) to provide standards to be used by the Competent Person in preparing technical studies. Although the IMIC is relatively recent, Meshram et al. (2013) detail a long history of a national mineral classification system being in place. Russia. According to Ilieva (2016), the NAEN Code was developed by the Society of Experts on Mineral Resources in close cooperation with the Russian State Commission of Reserves (GKZ) and with members of CRIRSCO in 2011. The NAEN Code is based on the CRIRSCO public reporting template. It currently provides the guidelines on the alignment of Russian minerals reporting standards and a mapping of the Russian and the CRIRSCO categorization of mineral resources and mineral reserves (Fig. 3).According to Ilieva (2016), there is some difference between the Competent Person (CP) for the project using the proposed alignment guidelines to report exploration and mining results in public disclosures. The proposed “mapping” facilitates the conversion of the Russian classification categories of resources and reserves, used for state and corporate reporting in the GKZ (categories A, B, C1, C2) to CRIRSCO categories (Fig. 3), commonly used for public disclosure, which is simple and easy to understand for the investor community. Figure 3: Recommended conversion of the Russian GKZ system to CRIRSCO exploration results, mineral resources and mineral reserves (Ilieva, 2016). South Africa. The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code) sets out minimum standards, recommendations and guidelines for the public reporting of exploration results, mineral resources and mineral reserves in South Africa. It is drawn up by the SAMREC Committee of the SAMCODES Standards Committee (SSC) under the joint auspices of the Southern African Institute of Mining and Metallurgy (SAIMM) and the Geological Society of South Africa (GSSA). There is specific detailed focus on coal, diamond and industrial minerals declarations, and it also has guidance on “aspects relating to metal equivalents declarations.” The current edition was updated in 2016. United States. S-K 1300 is the new regulation for the public disclosure of mining properties by registrants in the United States, replacing the Industry Guide 7. It was adopted by the Securities and Exchange Commission (SEC) in 2018 and came into effect on Jan. 1, 2021. S-K 1300 is based on the CRIRSCO’s IRT. S-K 1300 requires registrants to disclose a summary of their mining operations, a technical report summary (TRS) for each material property, and a summary of their mineral resources and reserves in their annual reports and other filings. The TRS must be prepared by a Qualified Person (QP), who should be a member of a recognized professional organization (RPO) and must have a university degree and relevant experience in the type of mineralization, deposit and activity. The QP is allowed to divide responsibility for different sections of a TRS. S-K 1300 requires mineral reserves estimates to be supported by at least a preliminary feasibility study (PFS). Figure 4: Overview of Indonesia’s Kode KCMI. Others. Indonesia has had a reporting code and a committee called Komite Cadangan Mineral Indonesia (KCMI) since 2011. The KCMI also provides pathways and accreditation for Competent Persons. An overview of the Kode KCMI is shown in Fig. 4. As of July 2021, Kazakhstan has developed the Kazakhstan public reporting code for explorations results, mineral resources and mineral reserves (KAZRC). Turkey’s Ulusal Maden Kaynak ve Rezerv Raporlama Komisyonu delivered the second edition of its reporting code in May 2023. Japan has significant investments in resources and reserves overseas through its large corporations, and also its government agency Japan Organization for Metals and Energy Security (JOGMEC), established in 2004. JOGMEC integrates the functions of the former Japan National Oil Corp. and the former Metal Mining Agency of Japan. The Japan Mineral Resources Association (JMRA) published a standard for reporting mineral resources and reserves in 2018. JMRA is overseen by the Japan Mining Industry Association (JMIA), which is an industry organization representing mining, smelting and refining companies producing and recycling nonferrous metals such as gold, silver, copper, lead, zinc and nickel in Japan. A significant number of Asian, African and South American countries are updating or working toward requirements for the reporting of mineral resources and reserves. This shows the changing needs and demand for minerals and metals globally. Securing supply chains The scramble to secure critical raw materials or critical minerals supply chains is currently in full swing. The United States, European Union, Australia and Canada have all passed legislation with a specific focus on this in the past two years. China’s current dominance began in the 1970s and continues to be set by various policies. Its Development Plan for the Rare Earths Industry, which is now in its second version, was first released in 2009 and then updated in 2016 (Zhou et al., 2023). Additionally, its Development Plan for the Raw Materials Industry was released in 2021 (Zhou et al., 2023). India released a report called “Critical Minerals for India” in 2023, which outlines some of the needs to secure supply chains for these minerals for its future development. ESG commentary Over the last 10 years, a significant focus has developed on a global scale across various industries to improve social and environmental outcomes. The mining industry is no different; however, it has suffered from a run of recent significant incidents. These have happened at major global companies such as BHP and Vale, for example, with dam breaks in Brazil, as well as destruction of cultural heritage in Australia by Rio Tinto. At the other end of the scale, significant environmental damage or social unrest has occurred with artisanal mining, as well as notable incidents in Congo, Burma, Papua New Guinea, Mali and Brazil, among many others. Also, the high variability of standards within the industry makes it difficult to ensure ESG requirements can be sufficiently captured by persons generating mineral resources and reserves statements. Guidance notes — the importance of getting it right, and some examples to investigate The following provides some guidance notes, along with some events and documents for further discussion: It is recommended that those involved in the reporting of mineral resources and reserves ensure they have a good understanding of what code or standard is relevant to them, and the mineral resources and/or reserves they are reporting on. Additionally, investigating further relevant legislation, best practice and other frameworks is worthwhile. The Competent Person (CP) or Qualified Person (QP) definitions are often of importance to the various organizations and companies mentioned in mineral resources and reserves statements. They can be different from country to country, and also legislated. Note that one CP may not be the same as another CP. A Chartered Professional is not equivalent to a Competent Person. Note how the reporting of mineral resources and reserves is generally not legislated, but driven by codes and/or standards; however, this also varies in jurisdictions. Dominy et al. (2002) succinctly outlines the importance of getting it right when doing mineral resources and reserves estimation. Errors and uncertainty decrease the accuracy of the estimation; thus, the fewer errors, the better. McCarthy’s presentation on “Why Feasibility Studies Fail” to the Melbourne Mining Club (2013) is a reminder of why dealing with uncertainty and not getting it right is costly. The 2016 movie Gold, with Matt McConaughey, is loosely based on the Bre-X scandal, which reached its peak in 1997. It is an example of a well-documented and researched event in which mineral resources reporting went horribly wrong. Google the following terms for more insights into mineral valuation: wildcatting, fossicking, prospecting, King Solomon’s Mines, Atlantis, Muribeca and Grasberg. Finally, with ESG requirements becoming more important, specifically in terms of governance, ensure a strong understanding of how to best capture transparency as well as materiality. The ability to display high levels of competency and integrity is key to delivering the best possible outcomes, as well as protecting oneself from possible prosecution, unwanted scrutiny, or loss of credibility (thus income). References Chen, Y, 2023. Personal communication.Dominy, SC, Noppe, MA, Annels, AE, 2002, Errors and Uncertainty in Mineral Resource and Ore Reserve Estimation: The Importance of Getting it Right in Explor. Mining Geol., Vol. 11, Nos. 1-4, pp. 77–98Canadian Institute of Mining, Metallurgy and Petroleum, Standards, Best Practices and Guidance for Mineral Resources and Reserves, https://mrmr.cim.org/en/standards/canadian-securities-regulatory-standards-for-mineral-projectsComissão Brasileira de Recursos e Reservas, https://cbrr.org.brSME Guide for Reporting, https://www.smenet.org/Professional-Development/SME-Guide-for-ReportingSEC, 2018, Modernization of Property Disclosures for Mining Registrants: A Small Entity Compliance Guide, https://www.sec.gov/corpfin/secg-modernization-property-disclosures-mining-registrantsDeloitte, 2015, Mineral Resource and Reserve Reporting Codes, https://www2.deloitte.com/content/dam/Deloitte/za/Documents/energy-resources/ZA_MineralResource&ReserveReportingCodes_Energy&Resources_19012015.pdfHallB, 2014. Cut-off Grades and Optimising the Strategic Mine Plan, 311pp. The Australasian Institute of Mining and Metallurgy: Melbourne.Ilieva, T, 2016, Mineral Resource Reporting – Differences between CIM, JORC, and Others, https://www.micon-international.com/mineral-resource-reporting-differences-between-cim-jorc-and-others/Joint Ore Reserves Committee, https://www.jorc.org/index.aspLane, KF, 1997. The Economic Deﬁnition of Ore, second edition. Mining Journal Books: LondonMaltus, TR, 1798. An Essay on the Principle of PopulationMcCarthy, PL, 2013, Why Feasibility Studies Fail, presented to AusIMM Melbourne BranchMeshram, RN, Bhake, SS, Patel, JN, 2013. Indian National Mineral Resource Classification System, Its Evolution and Mapping with UNFC 1997/2004. Indian Bureau of Mines.Poniewierski, J, 2016, Negatively Geared Ore Reserves – A Major Peril of the Break-even Cut-off Grade in Proceedings Project Evaluation 2016, pp236-247. The Australasian Institute of Mining and Metallurgy: Melbourne, https://www.ausimm.com/globalassets/pdf-files/publications/1-16_project-evaluation/1-16_poniewierski.pdfStephenson, P, Rendu, J-M, Stoker, P, 2008. Comparison of reporting environments. CIM Magazine, https://mrmr.cim.org/en/library/magazine-articles/comparison-of-reporting-environments/Ontario Securities Commission, Mining Technical Advisory and Monitoring Committee, https://www.osc.ca/en/about-us/role-osc/advisory-committees#mtamcThe South African Mineral Reporting Codes, https://www.samcode.co.za/samcode-ssc/samrecUnited Nations Framework Classification for Resources, https://unece.org/sustainable-energy/sustainable-resource-management/united-nations-framework-classificationWikipedia, 2023, Cutoff Grade, https://en.wikipedia.org/wiki/Cutoff_gradeZuo, M, Wang, T, 2021 Research on Reserve Classification of Solid Mineral Resources in China and Western Countries in IOP Conf. Ser.: Earth Environ. Sci. 631 01204, https://iopscience.iop.org/article/10.1088/1755-1315/631/1/012044/pdfZhou W, Crochet V, and Wang H, 2023, Demystifying China’s Critical Minerals Strategies: Rethinking “De-risking” Supply Chains in UNSW Law & Justice Research Series, https://www.austlii.edu.au/au/journals/UNSWLRS/2023/23.pdf

State of codes and standards for the reporting of mineral resources and reserves

Authored by: Stanley Slagmolen and Phillipe Innecco

To view the past issues of the UCA magazine you must be a member of SME/UCA.

Gold retains key reserve status despite surging bond yields, central bankers say

China demands copper supply commitments for Anglo Teck merger approval, sources say

Leaders in mining excellence honored by NMA, federal agencies

Gold retains key reserve status despite surging bond yields, central bankers say

China demands copper supply commitments for Anglo Teck merger approval, sources say

Leaders in mining excellence honored by NMA, federal agencies

To view the past issues of the UCA magazine you must be a member of SME/UCA.

Ethics reporting systems to create safer mining sites

Reagent supply challenges to realizing US critical minerals production goals

Related Articles

How GeologicAI uses high-resolution data to reduce uncertainty in mining

AI-ready digital twin for mineral processing plants: Maximizing copper production with dynamic water management

Roundtable discussion on mine finance

Bubbles and particles for fun and profit

Gold retains key reserve status despite surging bond yields, central bankers say

China demands copper supply commitments for Anglo Teck merger approval, sources say

Leaders in mining excellence honored by NMA, federal agencies

Gold retains key reserve status despite surging bond yields, central bankers say

China demands copper supply commitments for Anglo Teck merger approval, sources say

Leaders in mining excellence honored by NMA, federal agencies

Use Single Sign On