Global Mineral Resource and Valuation Reporting Standards Their Evolution, Convergence and Effectiveness Matt Mullins Chairperson SAMCODES Standards

Transcription

1 Global Mineral Resource and Valuation Reporting Standards Their Evolution, Convergence and Effectiveness Matt Mullins Chairperson SAMCODES Standards Committee

2 THE SAMCODES FAMILY OF CODES AND GUIDELINES CODES SAMREC Reporting of Exploration Results, Mineral Resources/Reserves (Solid Minerals only) SAMVAL Reporting of Valuation of Mineral Assets (Solid Minerals only) SAMOG Reporting and Valuation of Oil & Gas GUIDELINES SAMESG Environmental, Social & Governance Diamond/Gemstone specific requirements Matt Mullins 12 April 2018 Slide 2

3 SAMCODES STANDARDS COMMITTEE (SSC) q The purpose of the SAMCODES Standards Committee (SSC) is to develop, maintain, administer and promote the South African Reporting Codes collectively known as SAMCODES. The SSC is responsible for: Promoting the awareness (and use) of SAMCODES Undertaking education and training Undertaking periodic reviews of the SAMCODES as may be necessary Input from CRIRSCO Results from complaints Feedback from training programmes Comments from broader industry players q Complaints Procedure in association with Professional/Statutory/RPO bodies q Readers Panel (in association with JSE) q RPO Status for Competent Persons compiling reports for other jurisdictions (international/local) q International Alignment SSC is represented on the CRIRSCO committee by two members from SAMREC (SAMREC s Ken Lomberg is incoming Chair) SSC is represented on IMVAL by two members from SAMVAL and one observer from SAMOG Ties to UN-ECE (UNFC) African Minerals Development Centre (AMDC) AMEREC / PARC Matt Mullins 12 April 2018 Slide 3

4 SAMCODES STANDARDS COMMITTEE (SSC) Chamber of Mines of South Africa (COM) Council for Geoscience (COG) Department of Mineral Resources (DMR) Engineering Council of South Africa (ECSA) Financial Services Board (FSB) SAMCODES Standards Committee Geological Society of South Africa (GSSA) Geostatistical Society of South Africa (GASA) General Council of the Bar (GCB) SAMREC Committee SAMVAL Committee SAMOG Committee SAMESG Committee Investment Analysts Society of South Africa (IASSA) Institute of Mine Surveyors of South Africa (IMSSA) JSE Limited (including the Chairs of the Readers Panels) Law Society of South Africa (LSSA) Diamonds Working Group Coal Working Group South African Geomatics Council (SAGC) South African Council for Natural Scientific Professions (SACNASP) South African Institute of Chartered Accountants (SAICA) Southern African Institute of Mining and Metallurgy (SAIMM) South African Oil & Gas Agency (SAOGA) Chairpersons of all Committees q Operates under joint auspices of /financing from SAIMM and GSSA Annual oversight meetings and quarterly reports Rotating chair, with a two year tenure SSC has four formal meetings per year Code committees meet twice a year, or as necessary q Terms of Reference Various supporting documents Matt Mullins 12 April 2018 Slide 4

5 SAMCODES HISTORY OF DEVELOPMENT 1971 JORC Committee 1989 JORC Code Published 1991 IMM Code Published Poseidon Nickel 1992 SAMREC WG Formed 1992 SME Guide Published 1994 CMMI initiative (CRIRSCO) 1997 Denver Accord (Australia, Canada, South Africa, UK, USA ) 1999 CRIRSCO/UNECE Agreement Adopted by: The JSE The Professional Bodies GSSA and SAIMM And by the Statutory Bodies - SACNASP, ECSA, SAGC Bre-X Scandal 2000 SAMREC Code 2001 CIM Code published Matt Mullins 12 April 2018 Slide 5

6 SAMCODES HISTORY OF DEVELOPMENT 2002 SAMVAL WG Formed SAMREC Update * 2008 CRIRSCO formed 2008 SSC Established SAMVAL Code Published 2009 SAMREC/SAMVAL Code update 2014 SAMREC/ SAMVAL Launch, 2007 Matt Mullins 12 April 2018 SAMCODES Launch at the JSE, 2016 SAMOG WG Formed 2015 SAMOG Code Published 2015 SAMESG WG Formed 2016 SAMCODES Update & Consolidation Slide 6

7 SAMCODES GOVERNANCE SAMCODES has multiple tiers of Governance q Compliance is a condition of Membership of the SAIMM and the GSSA q The Recognised Professional Organisation (RPO) system requires compliance from participating organisations q The Statutory bodies require compliance q The JSE Readers Panel (Solid Minerals and Oil & Gas): The Readers Panel ( the Panel ) is an independent panel of experts established in terms of section 12 of the JSE Limited ( JSE ) Listings Requirements. Members of the Panel are remunerated by the JSE as per agreement with the Panel Matt Mullins 12 April 2018 Slide 7

8 q SAMCODES awards two annual SQUIRREL AWARDS through the Investment Analysts Society q Previous winners of the SAMREC/IASSA award are: SAMCODES/ INVESTMENT ANALYSTS SOCIETY OF SA 2016 AngloGold Ashanti 2015 AngloGold Ashanti 2014 Gold Fields and Sibanye Gold (jointly) 2013 Gold Fields 2012 Sibanye Gold 2011 Gold Fields 2010 Harmony Gold Mining Company The 2017 SAMREC/IASSA Squirrel award was presented to Impala Platinum Holdings Limited at the 32 nd Annual Awards Ceremony The award is given for the Annual Integrated Report ( AIR ) adjudicated best in terms of compliance with the JSE Listing Requirements and the SAMREC Code. Matt Mullins 12 April 2018 Slide 8

9 SAMCODES/JSE INTERNATIONAL RECIPROCITY The SSC advises the JSE whether to grant reciprocity to Professional Bodies in order that their members may submit reports to the JSE in compliance with the JSE listing requirements. The criteria for a RPO are that the organisation must: q Be a self-regulatory organisation covering professionals in the mining and/or exploration industry; q Admit members primarily on the basis of their academic qualifications and experience; q Require compliance with the professional standards of competence and ethics established by the organisation; and q Have a code of ethics and a disciplinary code, which includes the power to suspend or expel a member. Matt Mullins 12 April 2018 Slide 9

10 SAMCODES/JSE INTERNATIONAL RECIPROCITY q American Institute of Professional Geologists q Association of Professional Engineers and Geoscientists of British Columbia q Australian Institute of Geoscientists q Canadian Council of Professional Geoscientists q Comisión Calificadora de Competencias en Recursos y Reservas Mineras (Chilean Mining Commission) q European Federation of Geologists q Engineering Council of South Africa q Geological Society of London q Australasian Institute of Mining and Metallurgy q Geological Society of South Africa q Institute of Geologist of Ireland q Institute of Materials, Minerals and Mining q Mining and Metallurgical Society of America q Professional Society of Independent Experts in Subsoil Use of the Republic of Kazakhstan q Russian Society of Subsoil Use Experts (OERN) q Society of Mining, Metallurgy and Exploration q South African Council for Natural Scientific Professions q South African Council for Professional and Technical Surveyors q Society of Petroleum and Evaluation Engineers (SPEE) q This is a subset of the total list of 31 RPO s Matt Mullins 12 April 2018 Slide 10

11 INTERNATIONAL RELATIONSHIPS q CRIRSCO formed in 1994 under the auspices of the Council of Mining and Metallurgical Institutes (CMMI) q Formally established in 2002 with the purpose of establishing fundamental standard definitions to be used as the basis for the reporting codes of all member nations. CRIRSCO template has 15 definitions and 3 guiding principles Meet annually to discuss on-going requirements q Mineral reporting codes and guidelines (Public Reporting): Australasia (JORC), Canada (CIM), Europe (PERC), South Africa (SAMREC) and the USA (SME). Other countries added continually q The combined value of mining companies listed on the stock exchanges of these countries accounts for more than 80% of the listed capital of the mining industry Any foreign-listed company in Africa will be reporting according to one of these CRIRSCO Codes (depending on where they are listed), some locally-listed companies will also do so by choice. Any African company listed internationally will also likely be reporting according to one of these Codes. Almost all international investment houses, financial institutions also require compliance when supplying significant capital Matt Mullins 12 April 2018 Slide 11

12 INTERNATIONAL CONVERGENCE q Through the CRIRSCO and the IMVAL templates we are achieving convergence in what are in the Codes q The CRIRSCO Template is currently being updated q The International Mineral Valuation Committee (IMVAL) was formed in 2012 in Australia, primarily to develop a globally acceptable mineral asset valuation (MAV) template by harmonising the valuation codes q IMVAL includes Minerals and Oil & Gas q There is flexibility for the template to evolve over time to include aspects not initially addressed, such as valuation of mineral corporations and their respective securities, and valuation of oil and gas assets. Matt Mullins 12 April 2018 Slide 12

13 EFFECTIVENESS OF THE CODES q There is limited co-branding of the three main Reporting areas: Minerals Reporting, Minerals Valuation, and Oil & Gas Reporting and Valuation q There is limited acceptance in some jurisdictions of the Codes on the relevant Securities Exchanges (e.g. VALMIN is not accepted on the ASX) q Global acceptance of Valuation reporting is still subject to considerable variation q Governance is variably applied, and is still too reliant on the complaint procedure q International Reciprocity is not always clear (e.g. OSC only recognising Fellows of the AusIMM) q International conformity in O&G is very dependent on resolving the differences between PRMS and COGEH Matt Mullins 12 April 2018 Slide 13

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