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

The mining industry is a vital contributor to national and global economies; never more so than at present with soaring
demand for the commodities that it produces. It is a truly international business that depends on the trust and confidence
of investors 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. (CRIRSCO website)



The SAMREC Code, which sets out minimum standards, recommendations, and guidelines for Public Reporting of
Exploration Results, Mineral Resources and Mineral Reserves in South Africa, is being reviewed and improved to ensure that it
remains relevant to the minerals industry and keeps abreast with recent developments. This revision is considered necessary
because as the guidelines of the Code are used, various issues and practical realities have become apparent that require further
guidance from the Code. This rewrite is designed to improve the Code and eliminate possible contradictory reporting practices,
and align SAMREC with recent changes to international codes in keeping with international best practice.

The SAMREC Code is one of seven codes that are affiliated under the CRIRSCO family of reporting codes. As a result of the
CRIRSCO/CMMI initiative, considerable progress has been made towards widespread adoption of globally consistent reporting
standards. These are embodied in similar Codes, guidelines, and standards published and adopted by the relevant professional
bodies around the world. The definitions in this edition of the SAMREC Code are either identical to, or not materially different
from, existing international definitions. In recent years the Russian Code (NAEN) (2011) was added to the original Codes.
Various Codes have been revised and reissued – CIM of Canada (2010), PERC representing Europe (2013), JORC representing
Australia and New Zealand (2012), and SME representing the USA (under review for issuing in 2014).

Various aspects of the Code remain unchanged. Because SAMREC is part of the CRIRSCO family, there are 15 core
definitions e.g. Mineral Resource, Mineral Reserve etc. that are common between the international codes. These are not being
changed. Rather, the guidance and interpretation is being improved so that the Code is relevant. The Code remains a guideline
for minimum public reporting of Exploration Results, Mineral Resources, and Mineral Reserves. The desire of the SAMREC
Working Group is that the Code is used for all forms of reporting of Exploration Results, Mineral Resources, and Mineral
Reserves, both public and private. The principles that underpin the code remain Transparency, Materiality, and Competence.
The Code requires that anyone who uses the Code and asserts themselves as a Competent Person (CP) in accordance with the
Code needs to have five years’ relevant experience and be registered with SACNASP or ECSA or be a member of GSSA, SAIMM,
or PLATO or a recognized professional organization (RPO).

A body whose members put themselves forward as CPs is required to have a code of ethics and a disciplinary code.
Scientists working in South Africa are required to comply with the Natural Scientific Professions Act of 2003. However, where
the SAMREC Code is used as the basis for a mineral resource or reserve declaration that falls outside of the jurisdiction of South
Africa laws and the CP declares his/her membership of GSSA or SAIMM in support of the declaration, then these organizations
require the CP to follow the newly instituted procedure.

Because the GSSA and SAIMM are not statutory bodies and represent broader interests than just minerals reporting, the
GSSA and SAIMM have introduced by-laws that require individuals who utilize their membership as a credential for reporting
purposes to notify the societies and subject themselves to a peer review prior to the publication of the work. This peer review
entails confirming that they are members of the societies in the category they claim and have the necessary qualification and
experience to undertake this assignment as a CP. However, this does not militate against the individual producing work that is
substandard. Should the individual complete substandard work and a complaint is laid, they will be subject to the disciplinary
process.

Issues regarding the rewrite are discussed at a monthly meeting of the SAMREC Working Group (WG) chaired by Ken
Lomberg (ken.lomberg@coffey.com) and held on the last Thursday of each month at the Military Museum in Saxonwold. All
interested parties are invited to participate. These meetings also provide an opportunity for industry to highlight aspects that
may need to be reviewed or improved. We would like to encourage all interested parties to submit any issues relevant to the
rewrite of the SAMREC Code via the SAIMM (sam@saimm.co.za) by 30 June 2014. The intention is to complete a draft for public
comment by the end of Q3 2014.

Once a draft has been finalized it will be issued for comment prior to being ratified by the SAMREC/SAMVAL Committee
(SSC). It is also the intention of the SAMREC WG to prepare a companion volume that would include the practical application of
the Code and assist in providing a benchmark for all industry practices. This volume is likely to be produced after the launch of
the Code as the proceedings of a SAMREC conference.

SAIMM Advert button072017inner

SAIMM on twitter

Other mining news

Mining Weekly | Africa

The latest mining world news and project information from Africa.
  • Sibanye CEO confident of Lonmin takeover despite cash burn
    Sibanye-Stillwater is confident its planned purchase of Lonmin will go ahead, but the struggling platinum producer must slow its cash burn, the South African firm's chief executive said. Sibanye's £285-million all-share bid to create the world's second largest platinum miner faces hurdles including Lonmin's weak cash position, competition authority approval and the effects of a stronger rand.
  • Talaxis to acquire up to 75% of Mkango’s Songwe project
    Noble Group subsidiary Talaxis has entered into definitive agreements with Mkango Resources to acquire up to a 75% interest in Mkango’s Lancaster Exploration subsidiary, as well as a 49% stake in its downstream metals division Maginito Investments. In January, Talaxis paid Mkango £5-million in return for a 20% stake in Lancaster, which holds the licence for the Songwe Hill rare earths project, in Malawi.
  • Goldstone renews Ghana prospecting licences
    The prospecting licences for Goldstone Resources’ Homase-Akrokeri project, in Ghana, have been extended to April 2020. Goldstone CEO Emma Priestley noted that the company was pleased to have received these renewals, and especially for an extended period.