PERC. Niall Young John A Clifford ROVANIEMI, FINLAND DECEMBER 3 RD 2009

Transcription

1 THE PAN-EUROPEAN REPORTING CODE PERC 1 ROVANIEMI, FINLAND DECEMBER 3 RD 2009 Ruth Allington Ruth Allington Niall Young John A Clifford

2 PRESENTATION OUTLINE 2 Background CRIRSCO JORC, PERC, SAMREC, CIM (NI ) PERC CODE The Competent Person Role and Responsibility Common Problems Examples from the ASX

3 BACKGROUND 3

4 WHY WE NEED STANDARDS Feasibility + = 4

5 CRIRSCO 5

6 CRIRSCO FAMILY OF CODES 6 FIRST EDITIONS JORC (1989) SME Guidelines (1992) CIM (2000) SAMREC (2000) PERC (2001) Chile (2007) Philippines i (2007) INTERNATIONAL DEVELOPMENTS 1997: Denver Accord; 1998: Geneva Convention with UN-ECE

7 CRIRSCO s AIMS International consensus on Mineral Resource and Mineral Reserve definitions Consistent and high h quality reporting of Mineral Resources and Mineral Reserves International ti convergence of systems through h peer review and mapping Users of CRIRSCO style standards include Governments Stock Exchange Regulators Financial i Institutions i Mining Companies Shareholders 7

8 CRIRSCO 8 IASB - IFRS ICMM NRO JORC EXCHANGES ASX SPE - PRMS Task Force SAMREC JSE Template CRIRSCO CIM CSA UNFC PERC UKLA SME SEC Chinese Code Mongolia Chile Santiago Russian Code Peru Lima Philippines Manila

9 PERC CODE 9

10 PERC PAN EUROPEAN RESERVES-RESOURCES REPORTING COMMITTEE 10 Professional & Industry Statutory/Semi Government Regulatory Organizations Organizations Organizations Responsible Entities AMA Companie es Russia IGI SweMin PERC EFG ROPO IOM 3 GS LSE UKLA CESR AIM EU Exchanges Compliance & Guidance Standards PERC Code Competent Person Incorporated by reference. In common with: JORC, SAMREC, CIM, SME, Russian Codes Financial Services Directive AIM Guidance Listing Rules Notes Those Required To Comply Professionals Publicly listed companies NOMADS Relationship Key Compliance Responsible for Guidance May Act As Accountability or Oversight Communication Link

11 PERC CODE Transparency Materiality Clear unambiguous presentation All reasonable information f expected CODE Definitions and Guidelines Classification p Competence p y Impartiality 11

12 WHAT PERC DOES Sets minimum standards for public reporting of Exploration Results, Mineral Resources and Mineral Reserves Provides a mandatory system for classification of tonnage/grade estimates according to geological confidence and technical/economic considerations Provides definitions for mineral resource and ore reserve classes that are compatible with international agreements Requires Public Reports to be based on work undertaken by a Competent 12 Person; describes the qualifications and type of experience required to be a Competent Person Provides extensive guidelines on the criteria to be considered when preparing reports on Exploration Results, Mineral Resources and Mineral Reserves

13 WHAT PERC DOES NOT DO Regulate the procedures used by Competent t Persons to estimate t and classify Mineral Resources and Ore Reserves (methodology) Regulate companies internal classification or reporting systems Deal with breaches of the Code by companies (This is a function for the Stock Exchanges) 13 Deal with breaches by individuals, these are dealt with under code of ethics of the relevant professional association

14 RELATIONSHIP BETWEEN EXPLORATION RESULTS, MINERAL RESOURCES & MINERAL RESERVES 14 Exploration Results MINERAL RESOURCES MINERAL RESERVES Increasing level of geological knowledge and confidence Inferred Indicated Measured Probable Proved Consideration of mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the Modifying Factors").

15 THE COMPETENT PERSON 15

16 PERC CODE THE COMPETENT PERSON 16 Rules of Conduct and Guidelines Duty To: The Public and Society; The Profession, Employers and Clients; Professional o Bodies, Colleagues and Associates; The Environment, Health and Safety

17 THE COMPETENT PERSON 17 CRIRSCO-style standards require publicly reported reserve and resource information to be based on work undertaken by a Competent Person The Competent Person is named in the public report It is the Competent Person s responsibility to ensure that the estimates have been performed properly The Competent Person may be either an employee or a consultant STRONG DETERRENT

18 WHO IS A COMPETENT PERSON 18 A Competent Person must have at least five years relevant experience A Competent Person must be a member of a professional society that: requires compliance with professional and ethical standards has disciplinary powers, including the power to discipline or expel a member Because the Competent Person s experience is in relation to the deposit style and situation under consideration, most countries do not attempt to maintain i registers of Competent Persons

19 COMMON PROBLEMS EXAMPLES FROM THE ASX 19

20 ASX COMPLIANCE October 2008 March ,200 announcements checked. kd 333 instances of non-compliance (246 companies): 176: Deficient or Missing Competent Person Statement; 80: Combined or unspecified categories of Resources; 41: Exploration target statement reported incorrectly; 12: Insufficient information on Results; 11: Combined or unspecified categories of Reserves; 20 5: Use of in-ground values or sufficient information to explain equivalent calculations; 5: Reporting of Historic/Foreign estimates; 3: Miscellaneous

21 FOR FURTHER INFORMATION 21 PERC