Mineral Reserves and Resources

Classification of Ukraine

(adaptation to UNFC-2009)

Georgii Rudko, Vitalii Lovyniukov, Oleksii Netskyi

The State Commission of Ukraine

on Mineral Resources

UNECE Resource Management Week 2018

«UNFC for Sustainable Development»Palais Des Nations, Geneva, Switzerland, 23-27 April 2018

REPORT FROM UKRAINE

MINERAL RESERVES AND RESOURCES CLASSIFICATION OF UKRAINE

(ADAPTATION TO UNFC-2009)

2

NAME

Mineral Reserves and Resources

Classification of the State Subsoil Fund

DEVELOPMENT

UN ECOSOC Resolution No. 227/1997:

Recommendation for UNFC-1997 Practical Use

by the United Nations member states

ADOPTIONCabinet of Ministers of Ukraine, Regulation No.

432 dated 05.05.1997

TAXA10 class codes: 111, 121, 122, 211, 221, 222,

331, 332, 333, 334

APPLICATION all types of minerals

APPROBATIONMore than 4,5 thousand fields with the

different level of geological knowledge

CURRENT MINERAL RESERVES

AND RESOURCES CLASSIFICATION OF UKRAINE

Level of

Commercial

Significance

Category of Feasibility

Study

Category of

Geological

Knowledge

Class Code Project

1. Balance reserves

(1..)

EGE-1 (.1.)

on production

and approved for

development

Explored

reserves

(..1)

111

(proved)

Commercial

EGE-2 (.2.)

approved for development

Preliminary

explored reserves

(..2)

121

(probable)

122

(probable)

2. Potentially

balance and off-

balance

reserves (2..)

develo

pm

en

t

pen

din

g

EGE-1 (.1.) Explored

reserves (..1)

211

Potentially

commercialEGE-2 (.2.)

221

Preliminary

explored reserves

(..2)

222

3. Commercial

significance

unclarified (3..)

develo

pm

en

t

un

cla

rifi

ed

EGE-3 (.3.)

Explored

reserves (..1)331

Non-commercialPreliminary

explored reserves

(..2)

332

Prospective

resources (..3)333

ExplorationPrognostic

resources (..4)334

3

4

UNFC-2009 CATEGORIES AND SAMPLES OF CLASSES USED IN UKRAINE

5

DYNAMICS AND THE STRUCTURE OF MATERIALS ON

ECONOMIC-GEOLOGICAL EVALUATIONS OF FIELDS

CONSIDERED AT THE SCMR OF UKRAINE

QUANTITY

43

37 52

45 52 7

4 93 1

19

138

156

217 2

52

206

269

347

312

255

214

214

285

454

0

50

100

150

200

250

300

350

400

450

500

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

Hydrocarbons

9%

Solid fuels

9%

Metallic

8%

Non-metallic

50%

Groundwater

24%

STRUCTURE

6

HARMONIZATION BETWEEN MINERAL RESERVES AND RESOURCES

CLASSIFICATION OF UKRAINE, CRIRSCO TEMPLATE AND PRMS

Six classes of mineral reserves and resources

determined by CRIRSCO Template find their

analogs in the Ukrainian Classification and are

comparable.

Off-balance and potentially balance reserves of

211, 221 and 222 classes in the Ukrainian

Classification do not find analogs in CRIRSCO

Template, but they are relatively covered with the

classes of measured and indicated mineral

resources in CRIRSCO Template.

Tota

lP

etro

leu

mIn

itia

lly

inP

lace

Заг

альн

ий

по

чат

ко

ви

й о

б’є

м в

угл

ево

дн

ів у

рез

ервуар

і

Dis

cover

ed

Від

кри

тий

по

чат

ко

ви

й о

б’є

м в

угл

ево

дн

ів у

рез

ервуар

і

Com

mer

cial

Ко

мер

цій

ні

Production/ Розробляються

Incr

easi

ng

Ch

an

ceof

Com

mer

ciali

ty

Збіл

ьш

енн

я в

іро

гідн

ост

і до

сягн

енн

я с

тадії п

ро

ми

сло

вого

знач

енн

я п

ро

екту

=

Compliance

of the

Ukrainian

Classification

Reserves

Запаси

EGE-1

(1Р)1P 2P 3P

Proved

Достовірні

Probable

Вірогідні

Possible

Можливі

Su

b-C

om

mer

cial

Ум

овн

о К

ом

ерц

ійн

і

Contingent Resources

Умовні ресурсиEGE-2

(1С)1С 2С 3С

Unrecoverable/ Невидобувні Unrecoverable

Un

dis

cover

ed

Нев

ідкри

тий

по

чат

ко

ви

й о

б’є

м

вугл

ево

дн

ів у

рез

ервуар

і Prospective Resources

Перспективні ресурси

EGE-3

(Best Estimate)Low Estimate

Мінімальна

оцінка

Best

Estimate

Оптимальн

а

оцінка

High Estimate

Максимальна

оцінка

Unrecoverable / Невидобувні Unrecoverable

Range of Uncertainty / Діапазон вірогідності

Recoverable reserves (111, 121, 122 classes) under

the Ukrainian Classification and recoverable

reserves (1Р proved) under PRMS classification are

similar in view of a unified deposit model,

petrophysical characteristics, development

technologies and identical prices for hydrocarbons

with the relevant tax obligations. These reserves are

the basis for mining operations at a deposit with

their 90% confidence. Other quantities of

hydrocarbons represent resource potential.

7

ECONOMIC-GEOLOGICAL EVALUATION (EGE) OF A SUBSOIL PLOT is a

periodic analysis of the results of geological and feasibility study of mineral

deposits of a subsoil plot to establish and/or to change commercial

significance of their reserves on the basis of available information on

prognostic or actual flow charts, technical and economic indices and

financial results of mineral production on a plot.

DETAILED (EGE-1) is determination of economic efficiency of

production activity of a mining enterprise and feasibility of investment in

works on its design and construction.

PRELIMINARY (EGE-2) is justification of feasibility of investment in and

performance of exploration works in the field and preparation for its

exploitation.

INITIAL (EGE-3) is justification of feasibility of investment in geological

exploration works.

TERMS AND DEFINITIONS USED IN THE CLASSIFICATION

8

BALANCE RESERVES (Е1 code):

1) recoverable (Е1.1 code);

2) subsidized (Е1.2 code).

POTENTIALLY BALANCE RESERVES (Е2 code)

OFF-BALANCE RESERVES (Е2 code)

RESERVES AND RESOURCES WITH UNCLARIFIED COMMERCIAL

SIGNIFICANCE (Е3 code):

1) quantities that are forecast to be extracted, but which will not be

available for sale (Е3.1 code);

2) economic viability of extraction and sale cannot yet be determined due

to insufficient information (Е3.2 code);

3) recognized as unsuitable for economic extraction and sale at present

and in the foreseeable future (Е3.3 code).

THE LEVEL OF ECONOMIC, SOCIAL AND COMMERCIAL SIGNIFICANCE

(CATEGORIES AND SUB-CATEGORIES)

Е

9

THE FIRST CATEGORY (F1 code):

1) reserves in production; extraction is currently taking place (F1.1 code);

2) reserves for which a commercial development project has beenapproved, capital funds have been committed, issues connected with thepermitting documentation and product sale have been solved (F1.2 code);

3) reserves approved for commercial development (F1.3 code).

THE SECOND CATEGORY(F2 code):

1) reserves justified for development (F2.1 code);

2) reserves for which the development is on hold or performance ofexploration works on preparation for commercial development is subject tosignificant delay (F2.2 code);

3) reserves for which the current plans to develop or to acquire additionaldata due to uneconomic development or limited potential have not beendetermined (F2.3 code).

THE THIRD CATEGORY(F3 code)

THE FOURTH CATEGORY(F4 code)

THE LEVEL OF FEASIBILITY STUDY AND PREPAREDNES FOR COMMERCIAL

DEVELOPMENT (CATEGORIES AND SUB-CATEGORIES)

F

10

EXPLORED RESERVES (G1 code) are the basis for projecting of further

commercial development of a field (deposit).

PRELIMINARY EXPLORED RESERVES (G2 code) are the basis for

justification of further prospecting and detailed economic-geological evaluation

of mineral fields (deposits).

PROSPECTIVE RESOURCES (G3 code) are the basis for economic-

geological evaluation of feasibility of further searches and exploration works.

PROGNOSTIC RESOURCES (G4 code) are the basis for justification of

regional and prognostic and geological works.

THE LEVEL OF GEOLOGICAL KNOWLEDGE AND CONFIDENCE OF RESERVES

AND RESOURCES (CATEGORIES)

G

MINERAL RESERVES AND RESOURCES CLASSIFICATION OF UKRAINE

BASED ON UNFC-2009

Category by a level of

economic,

social

and commercial

significance (Е axis)

Category by a level of feasibility study

and preparedness for

commercial development (F axis)

Category by a level of geological

knowledge

and confidence of reserves

and resources (G axis)

Class code

of the

Ukrainian

Classification

UNFC-2009 class

Balance reserves (1..)

Е1

Е1.1; Е1.2

Reserves in production (F1.1)

approved for development

(F1.2) or for commercial

development (F1.3)

EGE-1 (.1.)

F1Explored reserves (..1); G1

111

(proved)

Commercial

Reserves justified for

development

F2.1; F2.2

EGE-2 (.2.)

F2

Explored reserves (..1); G1121

(probable)

Preliminary explored reserves (..2);

G2

122

(probable)

Conditionally

balance

and off-balance

reserves (2..)

Е2

Development of reserves

is on hold,

substantially pending

or uneconomic

EGE-1 (.1.)

F1 (F1.3) Explored reserves (..1); G1211

Potentially

commercialEGE-2 (.2.)

F2

(F2.1; F2.2)

221

Preliminary explored reserves (..2);

G2222

Mineral reserves and

resources with

unclarified commercial

significance (3..)

Е3;

Е3.1; Е3.2; Е3.3

Development of reserves

and resources unclarified

EGE-3 (.3.)

F3

Explored reserves (..1); G1 331

Non-commercialPreliminary explored reserves (..2);

G2332

Prospective resources (..3); G3 333

ExplorationPrognostic resources (..4); G4 334

Unrecoverable remaining in-place

(additional)

reserves in subsoilF4

Explored reserves (..1); G1 341

Аdditional

quantities in place

Preliminary explored reserves (..2);

G2342

Unrecoverable remaining in-place

(additional)

resources in subsoil

Prospective resources (..3); G3 343

Prognostic resources (..4); G4 344

11

MINERAL RESERVES AND RESOURCES CLASSIFICATION OF UKRAINE

ADAPTED TO UNFC-2009

12

NAME

Mineral Reserves and Resources

Classification of the State Subsoil Funds

DEVELOPMENT 2018

ADOPTION Cabinet of Ministers of Ukraine, 2018.

TAXA

11 categories: Е1, Е2, Е3, F1, F2, F3, F4, G1,

G2, G3, G4

10 sub-categories: Е1.1, Е1.2, Е3.1, Е3.2, Е3.3,

F1.1, F1.2, F1.3, F2.1, F2.2

14 class codes: 111, 121, 122, 211, 221, 222,

331, 332, 333, 334, 341, 342, 343, 344

APPLICATION all types of minerals

13

CURRENT UKRAINIAN CLASSIFICATION – DRAFT UKRAINIAN CLASSIFICATION

10 class codes: 111, 121, 122, 211,

221, 222, 331, 332, 333, 334

11 categories: Е1, Е2, Е3, F1, F2, F3,

F4, G1, G2, G3, G4

10 sub-categories: Е1.1, Е1.2, Е3.1,

Е3.2, Е3.3, F1.1, F1.2, F1.3, F2.1, F2.2

14 class codes: 111, 121, 122, 211,

221, 222, 331, 332, 333, 334, 341, 342,

343, 344

14

The Mineral Reserves and Resources Classification of

Ukraine adapted to UNFC-2009 provides an increase in

number of classes of mineral reserves and resources from

10 to 14, a possibility of their calculation and accounting at

a state level and by subsoil users.

The Mineral Reserves and Resources Classification of

Ukraine adapted to UNFC-2009 is pending approval by the

Cabinet of Ministers of Ukraine.

CONCLUSIONS

THANK YOU

FOR ATTENTION!

The State Commission of Ukraine

on Mineral Resources

18/7, Kutuzova Str., Office 816, Kyiv 01133

http://dkz.gov.ua; office@dkz.gov.ua

+38 (044) 284 93 57

REPORT FROM UKRAINE