La Importancia de los reportes internacionales en el negocio minero Paul Bright Bright Consulting Ltda 1

www.brightcolombia.com 1

La Importancia de los reportes internacionales en

el negocio mineroPaul Bright

Bright Consulting Ltda

2

The Importance of International Reporting

Codes in the Mining Business

La Importancia de los reportes internacionales en el negocio minero

Paul Bright

www.brightcolombia.com


Paul Bright - SRK

>40 years worldwide experience in resource and reserve estimation with a focus on coal:

Australia

UK

South Africa

Kazakhstan

Pakistan

Indonesia

Colombia

Russia

Mozambique


Paul Bright’s SRKColombian Coal Experience

JORC and CIM (NI 43-101 – * SRK public domain reports available on SEDAR web site)

• La Caypa-Acquisition*• La Francia-Acquisition*• Cerro Largo – Acquisition*• Drummond ( Due Diligence)• Vale (Due Diligence)


Our Personnel & AssociatesTonkolili Fe – Sierra Leone

Hinda Phosphate – Republic of Congo

Mkuju Uranium U - Tanzania


GME4 Fe – Brazil

Minera Alumbrera Cu-Au – Argentina

Mazamorras Cu-Au - Colombia


Paraburdoo Fe - Australia

Coyote Au – Australia

Phu Bhia Cu-Au – Laos PDR


Why are there International Codes?

Standards for public reporting of mineral resources and ore reserves are being widely adopted around the world, partly as a response to scandals such as the Bre–X gold mining scandal.


Why Report to International Codes?

Although originally primarily designed to protect investors, the practices and standards discussed in

Reporting Codes and supporting documents can significantly reduce risk for owner operators not

seeking external finance.

Reporting Codes are used as a basis for raising Finance both on a debt or equity basis, as a mutually acceptable standard for mergers and acquisitions and

for potential joint venture partners


Mining is a capital intensive and high risk

business“Consistency between Financial Markets

- transparency can only be achieved if information is reported on a consistent basis in all financial

markets, only then can the information supplied to all investors be identical, clear and unambiguous” –

SME

potential JV partners, vendors and purchasers deserve the same or better standards


CRIRSCO

Committee for Mineral Reserves International Reporting Standards - set up with the primary objective of developing a set of international

standard definitions for the reporting of mineral resources and mineral reserves.

CRIRSCO has developed a Template


CRIRSCO members

Australasia – JORCChile - National Committee

Canada – CIMEurope – PERC

Russia – NAENSouth Africa – SAMREC

USA – SME

The combined value of mining companies listed on the stock exchanges of these

countries accounts for a significant proportion of the listed capital of the mining industry

worldwide



Colombia is conspicuously absent!

Why?• Colombia is a rich in mineral potential

with a long mining history

• Colombia is the 4th largest Coal exporter in the world


• Colombian Exploration and Mining projects are listed on CRIRSCO stock exchanges

• Colombia has well-trained, well-educated, experienced and capable mining professionals


CRIRSCObased on principles of:

TRANSPARENCY

MATERIALITY

COMPETENCE


Transparency

Transparency requires that the reader of a Public Report is provided with sufficient

information, the presentation of which is clear and unambiguous, to understand the report

and is not misled

enforceable professional code of ethics


MaterialityMateriality requires that a Public Report

contains all the relevant information which investors and their professional advisers

would reasonably require, and reasonably expect to find in the report, for the purpose of making a reasoned and balanced judgement

regarding the Exploration Results, Mineral Resources or Ore Reserves being reported

19

CompetenceCompetence requires that the Public Report be based on work that is the responsibility of

suitably qualified and experienced persons who are subject to an enforceable

professional code of ethics.



Recognised OverseasProfessional Organisation

• be a self-regulatory organisation covering professionals in the mining and/or exploration industry• admit members primarily on the basis of their

academic qualifications and experience• require compliance with the professional

standards of competence and ethics established by the organisation• have disciplinary powers, including the power

to suspend or expel a member


State Registered organisations

Independent Professional organisations

Membership of a ROPO allows a CP to report to the Mining Codes of any country where the

ROPO is recognised


Collaborative work!

GeologistsMining Engineers

Metallurgists/Processing EngineersMineral Economists

Mechanical EngineersElectrical Engineers

Civil or Infrastructure Engineers Environmental scientists

Social scientists


In practice:A Geologist will usually be responsible for

Mineral Resource estimatesA Mining Engineer will usually be responsible for

Ore Reserve estimatesBut the contribution of other professionals is

necessary


And now - Colombia?

The Comisión Colombiana Calificadora de Competencias en Reservas y

Recursos Mineros (CCCCRRM) and the Universidad Nacional de Colombia

Grupo IGNEA are joining forces and have asked Bright Consulting Ltda to be

involved


The Path:• develop a reporting code using the

CRIRSCO template tailored to the nature of its own mineral deposits and drawing on the best features of other codes

• develop a Professional Organisation

• achieve ROPO status

• report to their own code and other international reporting codes


Now:

Colombian mining professionals should seek to join established ROPOs to allow them to

report to international standards

Implementing the above programme is going to take a little time but the prospect is exciting


Muchas Gracias!

[email protected]

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La Importancia de los reportes internacionales en el negocio minero Paul Bright Bright Consulting Ltda 1