GlobalMineralResourceandValuationReportingStandards
TheirEvolution,ConvergenceandEffectivenessMattMullins
Chairperson–SAMCODESStandardsCommittee
THE SAMCODES FAMILY OF CODES AND GUIDELINES
• SAMREC–ReportingofExplorationResults,MineralResources/Reserves(SolidMineralsonly)
• SAMVAL–ReportingofValuationofMineralAssets(SolidMineralsonly)
• SAMOG–ReportingandValuationofOil&Gas
CODES
• SAMESG–Environmental,Social&Governance• Diamond/Gemstonespecificrequirements
GUIDELINES
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q ThepurposeoftheSAMCODESStandardsCommittee(SSC)istodevelop,maintain,administerandpromotetheSouthAfricanReportingCodescollectivelyknownasSAMCODES.TheSSCisresponsiblefor:§ Promotingtheawareness(anduse)ofSAMCODES
§ Undertakingeducationandtraining§ UndertakingperiodicreviewsoftheSAMCODESasmaybenecessary• InputfromCRIRSCO• Resultsfromcomplaints• Feedbackfromtrainingprogrammes• Commentsfrombroaderindustryplayers
q ComplaintsProcedureinassociationwithProfessional/Statutory/RPObodies
q ReadersPanel(inassociationwithJSE)
q RPOStatusforCompetentPersonscompilingreportsforotherjurisdictions(international/local)
q InternationalAlignment§ SSCisrepresentedontheCRIRSCO
committeebytwomembersfromSAMREC§ (SAMREC’sKenLombergisincomingChair)§ SSCisrepresentedonIMVALbytwo
membersfromSAMVALandoneobserverfromSAMOG
§ TiestoUN-ECE(UNFC)• AfricanMineralsDevelopmentCentre(AMDC)• AMEREC/PARC
SAMCODES STANDARDS COMMITTEE (SSC)
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ChamberofMinesofSouthAfrica(COM)
CouncilforGeoscience(COG)
DepartmentofMineralResources(DMR)
EngineeringCouncilofSouthAfrica(ECSA)
FinancialServicesBoard(FSB)
GeologicalSocietyofSouthAfrica(GSSA)
GeostatisticalSocietyofSouthAfrica(GASA)
GeneralCounciloftheBar(GCB)
InvestmentAnalystsSocietyofSouthAfrica(IASSA)
InstituteofMineSurveyorsofSouthAfrica(IMSSA)
JSELimited(includingtheChairsoftheReadersPanels)
LawSocietyofSouthAfrica(LSSA)
SouthAfricanGeomaticsCouncil(SAGC)
SouthAfricanCouncilforNaturalScientificProfessions(SACNASP)
SouthAfricanInstituteofCharteredAccountants(SAICA)
SouthernAfricanInstituteofMiningandMetallurgy(SAIMM)
SouthAfricanOil&GasAgency(SAOGA)
ChairpersonsofallCommittees
SAMCODES STANDARDS COMMITTEE (SSC)
SAMCODESStandardsCommittee
SAMRECCommittee
DiamondsWorkingGroup
CoalWorkingGroup
SAMVALCommittee
SAMOGCommittee
SAMESGCommittee
q Operatesunderjointauspicesof/financingfromSAIMMandGSSA§ Annualoversightmeetingsandquarterlyreports§ Rotatingchair,withatwoyeartenure§ SSChasfourformalmeetingsperyear§ Codecommitteesmeettwiceayear,orasnecessary
q TermsofReference§ Varioussupportingdocuments
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JORCCommittee
SAMRECWGFormed
Poseidon
Nickel
1971
1989 JORCCodePublished
CMMIinitiative(CRIRSCO)
1994
1997 DenverAccord
1992
2000SAMRECCode
Bre-XScandal
Adoptedby:TheJSETheProfessionalBodies–GSSAandSAIMMAndbytheStatutoryBodies-SACNASP,
ECSA,SAGC
SAMCODES HISTORY OF DEVELOPMENT
1992 SMEGuidePublished
1999 CRIRSCO/UNECEAgreement
IMMCodePublished1991
(Australia,Canada,SouthAfrica,UK,USA)
CIMCodepublished2001
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CRIRSCOformed2002
SAMVALCode
Published2008
SAMVALWGFormed2002
SAMCODES HISTORY OF DEVELOPMENT
SAMRECUpdate*2007
SSCEstablished2008
SAMOGCodePublished2015
SAMESGWGFormed2015
SAMOGWGFormed2014
SAMCODESUpdate&
Consolidation2016
SAMREC/SAMVALCodeupdate2009
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SAMCODESLaunchattheJSE,2016
SAMREC/SAMVALLaunch,2007
SAMCODES GOVERNANCE
SAMCODEShasmultipletiersofGovernance
q ComplianceisaconditionofMembershipoftheSAIMMandtheGSSA
q TheRecognisedProfessionalOrganisation(RPO)systemrequirescompliancefromparticipatingorganisations
q TheStatutorybodiesrequirecompliance
q TheJSEReadersPanel(SolidMineralsandOil&Gas):§ The…ReadersPanel(“thePanel”)isanindependentpanelofexpertsestablishedintermsofsection12oftheJSELimited(“JSE”)ListingsRequirements.
§ MembersofthePanelareremuneratedbytheJSEasperagreementwiththePanel
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q SAMCODESawardstwoannualSQUIRRELAWARDSthroughtheInvestmentAnalystsSociety
q PreviouswinnersoftheSAMREC/IASSAawardare:
2016AngloGoldAshanti2015AngloGoldAshanti2014GoldFieldsandSibanyeGold(jointly)2013GoldFields2012SibanyeGold2011GoldFields2010HarmonyGoldMiningCompany
SAMCODES/ INVESTMENT ANALYSTS SOCIETY OF SA
The2017SAMREC/IASSASquirrelawardwaspresentedtoImpalaPlatinumHoldingsLimitedatthe32ndAnnualAwardsCeremonyTheawardisgivenfortheAnnualIntegratedReport(“AIR”)adjudicatedbestintermsofcompliancewiththeJSEListingRequirementsandtheSAMRECCode.
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SAMCODES/JSE INTERNATIONAL RECIPROCITY
TheSSCadvisestheJSEwhethertograntreciprocitytoProfessionalBodiesinorderthattheirmembersmaysubmitreportstotheJSEincompliancewiththeJSElistingrequirements.ThecriteriaforaRPOarethattheorganisationmust:
q Beaself-regulatoryorganisationcoveringprofessionalsintheminingand/orexplorationindustry;
q Admitmembersprimarilyonthebasisoftheiracademicqualificationsandexperience;
q Requirecompliancewiththeprofessionalstandardsofcompetenceandethicsestablishedbytheorganisation;and
q Haveacodeofethicsandadisciplinarycode,whichincludesthepowertosuspendorexpelamember.
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q AmericanInstituteofProfessionalGeologists
q AssociationofProfessionalEngineersandGeoscientistsofBritishColumbia
q AustralianInstituteofGeoscientists
q CanadianCouncilofProfessionalGeoscientists
q ComisiónCalificadoradeCompetenciasenRecursosyReservasMineras(ChileanMiningCommission)
q EuropeanFederationofGeologists
q EngineeringCouncilofSouthAfrica
q GeologicalSocietyofLondon
q AustralasianInstituteofMiningandMetallurgy
q GeologicalSocietyofSouthAfrica
q InstituteofGeologistofIreland
q InstituteofMaterials,MineralsandMining
q MiningandMetallurgicalSocietyofAmerica
q ProfessionalSocietyofIndependentExpertsinSubsoilUseoftheRepublicofKazakhstan
q RussianSocietyofSubsoilUseExperts(OERN)
q SocietyofMining,MetallurgyandExploration
q SouthAfricanCouncilforNaturalScientificProfessions
q SouthAfricanCouncilforProfessionalandTechnicalSurveyors
q SocietyofPetroleumandEvaluationEngineers(SPEE)
q Thisisasubsetofthetotallistof31RPO’s
SAMCODES/JSE INTERNATIONAL RECIPROCITY
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q CRIRSCOformedin1994undertheauspicesoftheCouncilofMiningandMetallurgicalInstitutes(CMMI)
q Formallyestablishedin2002withthepurposeofestablishingfundamentalstandarddefinitionstobeusedasthebasisforthereportingcodesofallmembernations.
§ CRIRSCOtemplatehas15definitionsand3guidingprinciples
§ Meetannuallytodiscusson-goingrequirements
q Mineralreportingcodesandguidelines(PublicReporting):
§ Australasia(JORC),Canada(CIM),Europe(PERC),SouthAfrica(SAMREC)andtheUSA(SME).
§ Othercountriesaddedcontinually
q Thecombinedvalueofminingcompanieslistedonthestockexchangesofthesecountriesaccountsformorethan80%ofthelistedcapitaloftheminingindustry
§ Anyforeign-listedcompanyinAfricawillbereportingaccordingtooneoftheseCRIRSCOCodes(dependingonwheretheyarelisted),somelocally-listedcompanieswillalsodosobychoice.
§ AnyAfricancompanylistedinternationallywillalsolikelybereportingaccordingtooneoftheseCodes.
§ Almostallinternationalinvestmenthouses,financialinstitutionsalsorequirecompliancewhensupplyingsignificantcapital
INTERNATIONAL RELATIONSHIPS
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INTERNATIONAL CONVERGENCE
q ThroughtheCRIRSCOandtheIMVALtemplatesweareachievingconvergenceinwhatareintheCodes
q TheCRIRSCOTemplateiscurrentlybeingupdated
q TheInternationalMineralValuationCommittee(IMVAL)wasformedin2012inAustralia,primarilytodevelopagloballyacceptablemineralassetvaluation(MAV)templatebyharmonisingthevaluationcodes
q IMVALincludesMineralsandOil&Gas
q Thereisflexibilityforthetemplatetoevolveovertimetoincludeaspectsnotinitiallyaddressed,suchasvaluationofmineralcorporationsandtheirrespectivesecurities,andvaluationofoilandgasassets.
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EFFECTIVENESS OF THE CODES
q Thereislimitedco-brandingofthethreemainReportingareas:MineralsReporting,MineralsValuation,andOil&GasReportingandValuation
q ThereislimitedacceptanceinsomejurisdictionsoftheCodesontherelevantSecuritiesExchanges(e.g.VALMINisnotacceptedontheASX)
q GlobalacceptanceofValuationreportingisstillsubjecttoconsiderablevariation
q Governanceisvariablyapplied,andisstilltooreliantonthe“complaint”procedure
q InternationalReciprocityisnotalwaysclear(e.g.OSConlyrecognisingFellowsoftheAusIMM)
q InternationalconformityinO&GisverydependentonresolvingthedifferencesbetweenPRMSandCOGEH
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Matt Mullins | 12 April 2018 Slide 14