National reporting of identified mineral resources in Australia: How it draws on, but differs from, company reporting

Transcription

1 National reporting of identified mineral resources in Australia: How it draws on, but differs from, company reporting Ian Lambert, Yanis Miezitis, Leesa Carson and Aden McKay Geoscience Australia

2 Outline of presentation Describes Australian national minerals resources reporting system Based on company reports, but reported differently Maps Australia s national system to CRIRSCO Template and UNFC Discusses national reporting under the UNFC Information on resources likely to be available for mining in short, medium and long time scales

3 Introductory remarks Countries with significant mining sectors should regularly evaluate their national mineral stocks To inform policies and decision by providing information on what is likely to be available for mining Most governments have difficulty conducting resource assessments for all known mineral deposits Staffing/expertise limitations and lack of access to sensitive data on economic viability of deposits Effective national reporting requires access to company reports on individual deposits Most companies do not use the UNFC 3

4 Introductory remarks Geoscience Australia (and predecessor organisations) has conducted an annual nationwide assessment of Australia s identified resources for all major and selected minor mineral commodities since 1975 Published as Australia s Identified Mineral Resources (available online) Draws on reports by companies listed on the Australian Securities Exchange Companies are required to report publicly, using the Joint Ores Reserves Committee (JORC) Code 4

5 Estimating and reporting national mineral inventories: Australia s s system Economic Demonstrated Resources (EDR) 5 Based on McKelvey system (minus undiscovered resources)

6 What is available from company reports? Quantitative figures for Exploration Results and Sub economic resources not published by companies and not Included in national reporting JORC Inferred to National Inferred EDR = JORC Probable + Proved Reserves + Indicated + Measured Resources 6

7 7 National minerals inventories: Not a precise science Estimating the total amount of each commodity likely to be available for mining in the longer term is not a precise science JORC Reserves, will in general all be mined Most current JORC Measured and Indicated Resources are likely to be mined Some current JORC Inferred Resources will also be mined Some subeconomic resources will become commercial New discoveries (including extensions to known deposits) will add to the resource inventory

8 Company reports to national inventory 8 CRIRSCO Template provides standards for public reporting by mining companies JORC is CRIRSCO Template reporting code for Australasia All resources must have reasonable prospects for economic extraction Several JORC categories are aggregated into the key national reporting category: = Economic demonstrated Resources (EDR) To provide long-term perspectives of what is likely to be available for mining Aggregation must take into account whether Resources are inclusive or exclusive of Reserves

9 Company reports to national inventory Economic Demonstrated Resources (EDR) 9 = Proved Reserves + Probable Reserves + Measured Resources + Indicated Resources Subeconomic Resources mainly from old reports but include some from current company reports assessed to be promotional

10 How are national resources reported? National resources are reported as tonnes of individual commodities Many mineral deposits have more than one commodity Commodity mixes and grades vary Meaningless to report national grades + tonnages National resources are derived from company reports, but are presented differently

11 A case study: Copper Copper occurs in different types of deposits with a range of different metals. For example: Project 1: Reserves = 1.2% Cu; 3g/t Au Measured and Indicated Resources = 1.0%Cu; 2g/t Au (Exclusive of Reserves) Project 2: Reserves = 0.9% Cu; 0.05% U; 1g/t Au Resources = 0.8% Cu; 0.04% U; 0.8g/t Au (Inclusive of Reserves) Project 3: Reserves = Cu Resources = 2.0% Cu (Inclusive of Reserves)

12 What is reported in the national inventory? Includes JORC Reserves 12

13 Mapping to a universal template It is useful to map the various classification and reporting systems for mineral and energy resources to a common base to Check harmony between the systems Enable valid comparisons between countries inventories and better estimates of total world stocks The UNFC-2009 is a universal template Covers more resource categories than CRIRSCO Template particularly along the E axis Includes non-commercial and undiscovered 13

14 14 UNFC as universal template UNFC development has focussed on reporting at the scale of individual deposits Important to get this agreed Now focusing on harmony with national reporting Industry, financial, national and international resource reporting systems are being/should be mapped to UNFC-2009 To clarify the similarities and differences between systems in use around the world Many countries already have mandated commercial reporting systems These countries need not adopt the UNFC Other countries may choose to use the UNFC

15 Mapping: CRIRSCO has less categories than UNFC

16 Mapping: CRIRSCO has less categories than UNFC = Proved Reserves 112 = Probable Reserves 221 = Measured Resources 222 = Indicated Resources 223 = Inferred Resources EDR = (111, 112, 221, 222) 334 = Exploration Results (Notional mapping)

17 Sub-class level mapping showing greater granularity of UNFC

18 UNFC & national reporting of mineral resources The national total for a commodity in a particular national category (eg EDR) is derived by: Summing the tonnages of that commodity in selected resource categories as estimated at deposit level Aggregating commercial reporting categories into broader national categories (eg. JORC Reserves + Measured and Indicated Resources = EDR)

19 Mapping UNFC, CRISCO and national reporting systems for mineral resources UNFC Class CRIRSCO category National category Increasing time frame Commercial Projects Potentially Commercial Projects Proved + Probable Reserves Measured and Indicated Resources EDR

20 A different nationa/international system: Uranium Group System (UGS) Unique in classifying uranium resources by cost category and geological certainty Mapping to UNFC and other systems varies with long term U price trends National totals are aggregated to give global total uranium resources Important to note that UGS is designed for reporting at national/international level Rather than individual deposit level 20

21 Mapping UNFC, CRISCO Australian national and U Group reporting systems UNFC Class CRIRSCO category National category U Group category Increasing time frame Commercial Projects Potentially Commercial Projects Proved + Probable Reserves Measured and Indicated Resources EDR RAR< $40/kg U until 2005 RAR<$80/kg U until 2010 RAR<$130/kg U from 2011

22 Current mapping of Uranium Group system to UNFC RAR US$130/ kg U Inferred 130/kg U Inferred > $130/kg U, RAR >$130/kg U

23 Australia s U resources under different classification systems Australia National U Group System( UGS) UNFC Class Commercial UGS (Indicative cost categories) RAR<$ mt UNFC Sub-class On production Approved for production UGS (Indicative cost categories) RAR <$ mt 0.15 mt EDR 1 mt 23 RAR <$130 1 mt Potentially commercial RAR $80- $ mt Justified for development Development pending Development on hold 0.1 mt RAR $80- $ mt 0.1 mt

24 What do some other countries report? USGS publishes Reserves 24 Comparable with EDR USGS Reserves do not equate with JORC Reserves Canada publishes Reserves (JORC equivalent) in operating mines Except for U (equivalent to EDR) Shorter term perspective on national resources Global inventories not well known Comparisons of inventories of different countries can be unreliable

25 Greater granularity of national reporting Australia s EDR can sub-divided to: Distinguish what is likely to be available in short, intermediate and longer time frames Based on different levels of assurance of production These can readily be mapped to the UNFC

26 Greater granularity of national reporting Economic Resources ( EDR 1 ) = Proven and Probable Ore Reserves (as defined under the JORC Code) [Note this category already published in Australia s Identified Mineral Resources as JORC Reserves] Potential Medium Term Economic Resources ( EDR 2 ) = Measured and Indicated Mineral Resources in existing mines and undeveloped deposits which have had a positive feasibility study/development has been announced Potential Long Term Economic Resources ( EDR 3 ) = Measured and Indicated Mineral Resources in deposits where their grade and tonnage characteristics are similar to deposits being mined elsewhere, but not subjected to a feasibility study/current consideration of mining Total EDR = sum of EDR1 + EDR2 + EDR3

27 EDR subdivisions mapped to UNFC-2009 Short, intermediate and long term national perspectives Decreasing degree of assurance of production

28 Granularity of commercial reporting CRIRSCO Resources encompass deposits of varying commercial attractiveness Some deposits likely to be developed in the short to medium term Others may only be considered for development in the long term UNFC sub-classes Development Pending and Development on Hold provide a useful subdivision Indicate general time frame for development

29 Summary It is up to each country to decide what categories it reports Should map reporting categories to UNFC To facilitate meaningful comparisons and estimation of global inventories For major mining nations it is most informative to report categories which provide short, medium and long term views on what is likely to be available for mining

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