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


                        Update of the South African Mineral Asset Valuation Code

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.
  • Mining sector unloved as investors find it hard to trust
    Investors are shunning the mining sector, data from Thomson Reuters shows, as they struggle to forget the string of multi-billion dollar takeovers and expensive development projects that left them empty handed. A decade-long commodity boom coincided with years of economic growth when China took off, but when the global economy slowed, so did the market for commodities from oil to copper.
  • Acacia Mining says valuing Tanzania mines for possible sale
    Gold miner Acacia Mining confirmed on Friday it had begun to value its Tanzanian operations for a potential sale after expressions of interest from Chinese buyers. "The company is engaging with a small number of potential investors, the process remains at a very early stage and there can be no certainty that an agreement will be reached," the London-listed miner said in a statement.
  • Jobs summit announced as Ramaphosa delivers message of ‘hope and renewal’
    President Cyril Ramaphosa, who sought to align his nascent presidency as closely as possible with that of President Nelson Mandela in his inaugural State of the Nation (SoNa) address on Friday night, announced that a jobs summit would be convened in the coming months to allow social partners to come up with "practical solutions" to the country’s high unemployment rate. Framed under the theme of "hope and renewal", the address was not characterised by the disruptions to which South Africans had become accustomed in recent times. Instead, the mood was joyous and collegial, with a number of Ramaphosa’s points being warmly applauded.