MINERAL RESOURCES AND RESERVES

Transcription

1 crirsco COMMITTEE FOR MINERAL RESERVES CHILE ICMM Edmundo Tulcanaza VP Chilean Commission for the Qualification of Competencies in Mineral Resources & Reserves 1307

2 AGENDA COMMITTEE FOR MINERAL RESERVES WHY TO REPORT MINERAL ASSETS UNFC CRIRSCO UNFC AND CRIRSCO THE CHILEAN COMMISSION

3 WHY TO REPORT MINERAL ASSETS Through time, metals and mineral resources have been increasing their role in the growth and development of emergent and global economies. Because of their role and their economic, social, environmental, and community importance, metals and mineral resources are today much more than before of concern of regulators, governments, community groups, workers, and investors. To satisfy these various interests, benefits, potential, challenges, vulnerabilities, and risks merit to be reported with transparency, materiality, and competence.

4 WHY TO REPORT MINERAL ASSETS COMMITTEE MINERAL Despite these intentions in properfor reporting, the RESERVES intrinsic uncertainties associated with the mineral INTERNATIONAL assets avoid a reliable and complete information such as that REPORTING STANDARDS required by all stakeholders. The required information has to deal with the weakness, flaw, goodness, and merits of geological, metallurgical, operational, environmental, and other data which at the preliminary stage is the fragmentary and insufficient nature. As information grows along the various sequential phases of studies and engineering, confidence in the reporting data increases as well as the reporting quality.

5 WHY TO REPORT MINERAL ASSETS COMMITTEE FOR MINERAL RESERVES CONVERSION OF MINERAL RESOURCES TO MINE RESERVES INTERNATIONAL REPORTING STANDARDS RESOURCES RESERVES FRAGMENTARY INFORMATION NUMERICAL MODELS LOW RISK HIGH RISK ENGINEERING STUDIES TO REDUCE UNCERTAINTIES EXPLORATION ORDER OF MAGNITUD PREFEASIBILITY FEASIBILITY CONVERSION USING MODIFIED FACTORS

6 TWO INTERNATIONAL SYSTEMS TO REPORT AND CLASSIFY COMMITTEE FOR MINERAL RESERVES MINERAL RESOURCES RESERVES INTERNATIONAL REPORTINGAND STANDARDS THE UNITED NATIONS FRAMEWORK CLASSIFICATION FOR FOSSIL ENERGY AND MINERAL RESERVES AND RESOURCES (UNFC) COMMITTEE FOR MINERAL RESERVES (CRIRSCO)

7 UNFC UNITED NATIONS FRAMEWORK CLASSIFICATION FOR FOSSIL ENERGY & MINERAL RESOURCES It is a framework ; it is not a standard Applies to solid minerals and oil and gas Based on a relative assessment of geological knowledge, project feasibility, and socio-economic viability Can include all possible mineralized material including uneconomic and undiscovered resources

8 UNFC UNITED NATIONS FRAMEWORK CLASSIFICATION FOR FOSSIL ENERGY & MINERAL RESOURCES

9 UNFC In 2004, the UNFC was complete offering a general framework to account for all resources, reserves, and fossil energy minerals. However, some specific codes for minerals (CRIRSCO) and petroleum resources (SPE-PRMS) emerge in such a way that UNFC did a broad exercise to see how to correlate with CRIRSCO and SPEPRMS. In 2009, all recommendations done by the UNFC expert team were considered. These recommendations call for defining the UNFC as a general classification framework with specific codes for resource and reserve minerals (CRIRSCO) and for fossil energy minerals (SPE-PRMS). A complete mapping correlation system also exist between CRIRSCO and SPE-PRMS.

10 USE OF UNFC Provides a framework for setting up broader statistical summaries of a country or regional mineral resource endowment. Support government strategic mineral resource policies. Provides a mechanism for companies to use as an internal mineral resource management system.

11 CRIRSCO COMMITTEE FOR MINERAL RESERVE CRIRSCO-style standards require that publicly reported resourceand reserve information is based on work undertaken by a Competent Person, a mining professional with at least five years of experience and relevant qualifications in some areas of the mineral resources industry. It is the Competent Person s responsibility to ensure that estimates and their level of confidence have been performed properly. CRIRSCO has seven associated National Organizations (Australia, Canada, ). Chile, Europe, Russia, South Africa, USA-SME) and a strategic partnership with the International Council on Mining and Metales (ICMM).

12 CRIRSCO EXPLORATION RESULTS Increasing level of geological knowledge and confidence Geoscientists with appropriate experience and professional credentials are responsible for progression down this axis mineral mineral resources Inferred reserves Indicated Measured Probable Proved Inclusion of mining, metallurgical, economic, marketing, legal,environmental, infrastructure, social and governmental factors (the Modifying Factors"). Many professionals (including geologists and other mine-metallurgical-environmental professionals) may be responsible for progression along this axis 12

13 CRIRSCO MORE INFORMATION REQUIRED PRELIMINARY COMMITTEE FOR MINERAL RESERVES EXPLORATION INFORMATION, INTERNATIONAL REPORTING STANDARDS DATA & RESULTS ORDER OF MAGNITUD INFERRED ABANDONMENT RESOURCES PRE RESERVES M P I L N A E N MODIFYING FACTORS FEASIBILITY INDICATED RESOURCES FEASIBILITY MEASURED RESOURCES

14 USE OF CRIRSCO STANDARDS Accepted standards among financial entities: Stock Exchanges, Investment Mineral Funds, Mine Project Analysis & Investment Approvals, International Financial Reporting Standards International consensus on reporting standards: Australia(JORC), Canada (CIM), Chile (COMMiN), Europe (PERC), Russia (NAEN), South Africa (SAMREC), USA (SME) CRIRSCO provides an international forum that enables countries to ensure consistency of their reporting standards in an international setting and to contribute to the development of best practice international reporting.

15 CRIRSCO AND UNFC 1997 agreement between CRIRSCO and UNECE re common definitions 2005 CRIRSCO and SPE re-engage with UNECE 2007 mapping CRIRSCO Template, PRMS (Petroleum Resources Management System), UNFC 2009 mapping was completed Template/PRMS officially recognised as commodity-specific codes of the UNFC-2009

16 CRIRSCO AND UNFC 111 = Proved Reserves 112 = Probable Reserves 221 = Measured Resources 222 = Indicated Resources 223 = Inferred Resources 334 = Exploration Results

17 CRIRSCO AND UNFC In accordance with the existing agreements with CRIRSCO and the SPE (Society of Petroleum Engineering), they have provided the commodity-specific specifications for minerals and petroleum via the CRIRSCO Template and SPE-PRMS. Along with the Generic Specifications, these provide the foundation and keystones for consistent application of UNFC UNECE report ECE/ENERGY/GE.3/2011/2,10th June 2011

18 CRIRSCO AND UNFC CRIRSCO standards require resource reporting based directly upon geometallurgical data and Competent Person qualifications. There are three categories for mineral resources and two categories for mineral reserves. Their attributes must be clearly established, CRIRSCO standards is recognized and accepted by financial institutions and stock exchange houses. UNFC combines in a 3D classification framework forty-eight different categories of mineral resources including from non-commercial and non-viable projects up to commercial projects UNFC framework allows management and classification of mineral endowment and the setting of mineral strategy policies.

19 THE CHILEAN COMMISSION COMMITTEE FOR MINERAL RESERVES In Chile, publicinternational reporting of mineral resources and reserves is supported REPORTING STANDARDS by Law approved by the Chilean Congress and promulgated by the Chilean Government in the The National Organization in charge of the National Registry of Competent Persons is the Comision Calificadora de Competencias en Recursos y Reservas Mineras. Chile is a member of the CRIRSCOfamily. The Chilean Commission is a self-governing entity with five partners: The Institute of Mining Engineers, the Professional College of Engineers, the Professional College of Geologists, the Society of National Mining, and the Mining Council.

20 THE CHILEAN COMMISSION The Chilean Commission has more than 200 members today and will reach its first five years of activities next November. The Chilean Commission is recognized by the Chilean Financial Regulator (SVS), the Santiago Stock Exchange, the Toronto Stock Exchange, the Equity Securities & Markets Authority (ESMA, the financial authority of the European Community), and the Russian Stock Exchange. The Chilean Commission is also recognized by the International Accounting Standards Board (IASB).

21 THE CHILEAN COMMISSION COMMITTEE FOR MINERAL RESERVES The role of the Chilean Commission, in addition to manage the National Registry of Competent Persons, is to promote the International Reporting Standards in Latin America and Spain, encourage continuing education on mineral resources /reserves among the members, and look after all national matters relative to mineral resources and reserves. The Chilean Commission, in addition to manage the National Registry of Competent Persons, is dedicated to promote the International Reporting Standards in Latin America and Spain, encourage continuing education on mineral resources /reserves among the members, and look after all national matters relative to mineral resources and reserves.

22 COMMITTEE FOR MINERAL RESERVES From exploration through mine closure standards for transparent, material, and reliable information will help the mining industry to become better supported, more efficient, less risky.