The SAIMM is a professional institute with local and international links aimed at assisting members source information about technological developments in the mining, metallurgical and related sectors.
twitter1 facebook1 linkedin logo
 

News

                        Update of the South African Mineral Asset Valuation Code
                                                                   (SAMVAL)

The Institute has reconvened the SAMVAL Working Group, in order to conduct a review and update of the SAMVAL Code.

This work has been initiated as a result of certain inconsistencies in the current Code, but also as a result of a number of external activities and events that have created the need for the update.

Mineral Asset Valuation Codes also exist in Canada (CIMVAL Code) and Australia (VALMIN Code), as well as the International Valuation Standards (IVS), promulgated by the International Valuations Standards Board in London. Both the VALMIN Code and the IVS Extractive Industries section are currently under review, and there is intent that CIMVAL will also be reviewed. A number of developments and discussions have also been undertaken by the Society of Mining Engineers (SME) in the United States, in consultation with the Securities Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB). Furthermore, assistance has been given by the CIMVAL Committee to develop a similar Code for the Chinese Authorities, for possible use by the Hong Kong Stock Exchange.

The SAMVAL Committee has taken cognisance of all of these developments, and is actively participating in some of them, through engagement with the VALMIN Committee and its conferences, and through representation on the IVSB Committee in particular.

The SAMVAL Committee has convened a working group that is liaising with all International Bodies that have an interest in Mineral Asset valuation, to establish a common forum where harmonisation of definitions and principles of Mineral Asset valuation can be established, similar to the CRIRSCO process for Mineral Resource and Mineral Reserve definitions. Such harmonisation is particularly relevant at this time, given the review processes that are underway.

Considerable discussion is happening in Australia with regard not only to VALMIN, but also with regard to JORC and the ASX, both of whom have released Issues Papers for comments, on matters that are under discussion there with regard to Mineral Resource and Mineral Reserve reporting.

In particular, discussion around the recognition, disclosure, use and valuation of Inferred Resources, and the disclosure of production forecasts, has relevance to valuation. Both the SSC (SAMREC/SAMVAL Committee) and the SAMVAL Working Group are making submission on these various issues, as well as interrogating them from a Southern African perspective, for inclusion in the SAMVAL review.

The SAMVAL Working Group also recently held a Mineral Asset valuation event, where wide participation was invited, in order to raise and prioritise issues relevant to Mineral Asset valuation both locally and internationally, for inclusion in the SAMVAL review process. This event was an outstanding success, especially in terms of the level of participation and the materiality of the issues raised.

The SAMVAL Committee will continue to develop and participate in these processes, and to keep the members of the Institute informed, through the membership of the Working group, the Council and the Journal.

Any comments and suggestions are always welcomed, and should be addressed through the Working Group or the Secretariat.

Alastair Macfarlane, Chair: SAMVAL Working Group.

SAIMM Advert button072017inner

SAIMM on twitter

Other mining news

Mining Weekly | Africa

The latest mining world news and project information from Africa.
  • Ivanhoe concludes Kipushi PFS, embarks on DFS
    TSX-listed Ivanhoe Mines has outlined the “outstanding” findings of a prefeasibility study (PFS) to revive the historic Kipushi zinc-copper-silver-germanium mine, in the Democratic Republic of Congo. The PFS, undertaken to refine the findings of the 2016 preliminary economic assessment (PEA) and optimise the mine’s redevelopment schedule, highlights a redevelopment plan to bring Kipushi’s Big Zinc Zone into production in less than two years. The mine will have an estimated average production rate of 381 000 t/y zinc concentrate over an 11-year initial mine life at a total cash cost of $0.48/lb of zinc.
  • Ortac increases stake in Casa to 84.7%
    Aim-listed Ortac Resources has increased its interest in African gold developer Casa Mining from 45% to 84.7%. The company in November offered to acquire 100% of Casa through the issue of 100-million new ordinary shares.
  • Moody’s sees stable year ahead for base metals, but also expects some risk factors
    Ratings agency Moody’s believes 2018 will be a year of relative stability for the global base metals industry after some recovery was experienced this year. In a 2018 outlook analysis, released on Wednesday, the agency noted that these improved supply/demand fundamentals would hold on the back of increased economic activity, supply disruptions, Chinese stimulus and curtailments in aluminum contributing to an improved supply/demand balance.