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Paper Number: 154
The
Importance of the International Reporting Codes in the Mining
Industry
Lomberg, K.G.1
1S1South
African Representative on CRIRSCO. ken.lomberg@coffey.com
___________________________________________________________________________
The mining industry is a vital contributor to national and global
economies. However, its role in contributing to the different national
economies varies greatly. Foreign exchange earnings from mining can
create positive developmental effects. In many countries, the mining and
metals industry is gaining recognition as an important contributor to
job creation and poverty reduction.
However the mining industry depends on the trust and confidence of
investors, governments, local communities and other stakeholders for its
financial and operational well-being. Unlike many other industries, it
is based on depleting mineral assets, the knowledge of which is
imperfect prior to the commencement of extraction. It is therefore
essential that the industry communicates the risks associated with
investment effectively and transparently in order to earn the level of
trust necessary to underpin its activities.
Mining projects and mines are capital-intensive and are also
characterized by high technical and economic risks. These factors pose
challenges to mining entrepreneurs when they seek to raise seed capital
for mine development and operating. There are limited sources of mining
investment funds internationally. The development of a mining project
relies on the interrelation of financial institutions and governments
and the basic requirement is to attract investments and produce wealth.
The development must also consider commodity needs which change due to
rapidly advancing technologies and the globalization of markets and
consumerism.
The reporting of Mineral Resources and Mineral Reserves to investors
and financiers, a critical step in the cycle of a mine or project, is
essential in the development and well-being of the global mining
industry. It is necessary to report Mineral Resources and Mineral
Reserves that can be extracted economically whether in a relatively
short period or as potential long-term resources or occurrences.
Companies are not interested in deposit or mineralisation that has no
reasonable prospect for economic extraction under expected market
conditions.
The CRIRSCO family of international reporting Codes is based on
scientific and engineering principles, together with environmental and
social guidelines within economic constraints. The Public Reports must
be based on and fairly reflect the view of the Competent Person(s) who
is required to take responsibility for the Public Report or declaration.
CRIRSCO strives to promote International Best Practice in the Reporting
of Mineral Exploration Results, Mineral Resources and Mineral
Reserves
This paper will discuss the various Reporting Codes and provide
guidance on their application.
