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International Resource and Reserve Codes and the CBRR

November 7, 2022

Mineração a céu aberto em uma paisagem montanhosa

After the Bre-X case, considered the biggest fraud in the history of mining, it has become even more necessary to use good practices during mineral research, as well as to guarantee the reliability of the data. In order to prevent fraud from occurring, the International Codes of Resource and Reserve Codes were created. The aim of these norms is to determine standards and procedures for the mineral industry.

In this context, Brazil established the Brazilian Commission on Resources and Reserves (CBRR). CBRR as the body responsible for disseminating and regulating the best global engineering and geological practices for mining companies. Want to know more about the subject? Check out the full content below.

Mina a céu aberto fotografada de cima.

International Codes

The Codes of Regulation for the Classification of Resources and Reserves are drawn up by technical mining organisations and are fundamental for the listing of mining companies on the stock exchange and for other forms of attracting investment, in order to protect investors and guarantee the best application of good practices in the estimation of Mineral Resources and Reserves. Two of the main codes are:

  • JORC - Joint Ore Reserves Committeethe The Australasian CodeThe JORC standards were first published in 1989. The code was drawn up by the Joint Ore Reserves Committee (JORC), formed by The Australasian Institute of Mining and Metallurgy, and regulates the fundamental requirements, guidelines and recommendations for the production of Public Reports with mineral exploration results and estimates of mineral Resources and Reserves in Australia (JORC, 1999). The rules are based on three principles:
    • Transparency: requires that the information contained in the report be clear, concise, unambiguous and always available for audit.
    • Materiality: requires that the Public Report contains information that is relevant and necessary for investors and their respective advisors so that they can make an informed judgement about the results of Exploration, Resources and Mineral Reserves that have been reported. It is important to use real and appropriate information for each type of project, ensuring more accurate results.
    • Competence: the Report should be based on the work of a competent and experienced person.
  • NI 43-101: Canada's National Instrument, published by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), determines the standards for publishing technical reports on mining projects and requires a qualified person to be responsible.

In addition to these, other codes such as SAMREC in South Africa and Industry Guide 7 in the United States are also used. Against this backdrop, with the aim of unifying standards, the Committee for Mineral Reserves International Reporting Standards (CRIRSCO) was set up in 1994. Today it is made up of the following committees/commissions: Australia (JORC), Brazil (CBRR), Canada (CIM), Chile (National Committee), Colombia (CCRR), Europe (PERC), India (NACRI), Indonesia (KOMBERS _ KCMI), Kazakhstan (KAZRC), Mongolia (MPIGM), Russia (NAEN), South Africa (SAMREC), Turkey (UMREK) and the USA (SME).

CRIRSCO then made it possible to develop an international reporting template(The International Reporting Template - IRT) for the Classification of Resources and Reserves, similar to existing standards.

Brazilian Resources and Reserves Commission - CBRR

And in Brazil? Do you know how the regulations for declaring Exploration Results, Mineral Resources and Reserves work? Find out more about the CBRR!

About the Commission

A CBRR was founded in 2015 by the alliance of three associations representing the mining sector: Brazilian Association of Mineral Research Companies - "ABPM", Brazilian Agency for Technological Development of the Mineral Industry - "ADIMB" and the Brazilian Mining Institute - "IBRAM".

That same year, the CBRR became CRIRSCO's Representative Organisation with Brazil, making it the ninth country to join the Committee.

The committee is private and not-for-profit and defines guidelines for declaring the results of Exploration, Resources and Mineral Reserves in accordance with the standards established by CRIRSCO.

From the initial phase of mineral exploration to multinational mining companies, the CBRR is highly relevant to mining, covering 90 per cent of the sector's GDP through the committee's founders and associates.

Membership criteria

Another focus of the CBRR is the management of the certification process and registration database of Qualified Registered Professionals in Brazil, which is extremely important for the publication of technical reports. To this end, the committee provides a regulation which sets out the requirements for professional registration. Some of the requirements are:

  1. Professionals applying for registration with the CBRR must be geologists, engineers, biologists, economists or occupy another profession in the mining area at university level, with a degree in Brazil and regularised registration with the Professional Council.
  2. This professional must also have 10 (ten) years' experience in the mining sector, with 5 (five) years' relevant experience in the type of mineralisation or deposit under consideration and in the area of competence for which they are applying for registration, of which at least 3 (three) years in a Position of Responsibility.
  3. In addition, the professional must have full knowledge of the rules established by the CBRR Guide to the Declaration of Exploration Results, Mineral Resources and Reserves.

After approval by the registration committee, the qualified professional is obliged to adhere to, observe and respect the Commission's code of ethics, the Guide to the Declaration of Exploration Results, Mineral Resources and Reserves and the registration regulations. To see the full text, simply visit: <https://www.cbrr.org.br/Regulamento_do_Comite_de_Registro_da_CBRR/Regulamento_do_Comite_de_Registro_CBRR_Jul2021.pdf.>

The Guide to Reporting Resources and Reserves

The CBRR has prepared and made available a Guide to Reporting Exploration Results, Mineral Resources and Reserves which follows the International Reporting Model for the Declaration of Exploration Results, Mineral Resources and Reserves published by CRIRSCO. The document contemplates the same fundamental principles mentioned above, which are Transparency, Materiality and Competence.

Guia CBRR para Declaração de Resultados de Exploração, Recursos e Reservas Minerais.
Guia CBRR para Declaração de Resultados de Exploração, Recursos e Reservas Minerais.

The Guide applies to Public Statement documents, including annual or quarterly reports from organisations, press releases, information memoranda, technical documents, website publications and public presentations.

With regard to the principle of competence, the Guide establishes that a Public Statement regarding Exploration Results, Mineral Resources and/or Mineral Reserves must be prepared/supervised and signed by a Qualified Professional.

The guide also specifies modifying factors for converting Mineral Resources into Mineral Reserves, including considerations on: mining, processing, metallurgy, infrastructure, economics, the market, legal, environmental, social and governmental aspects.

As for the declaration of Mineral Resources and Reserves, the CBRR Guide states that the Inferred Mineral Resource, which has a lower degree of reliability, should not be converted into a Mineral Reserve. In this case, it is expected that, as studies continue, it will be converted into an Indicated Resource and subsequently into a Mineral Reserve.

The Indicated Mineral Resource, on the other hand, could be converted into a Probable Mineral Reserve. Finally, the Measured Mineral Resource, with a higher degree of confidence in the estimation data, can be converted into a Probable and Proven Mineral Reserve. The following image illustrates these relationships.

Relação geral entre resultados de exploração, recursos minerais e reservas minerais mostrada em um diagrama.
Relação Geral entre Resultados de Exploração, Recursos Minerais e Reservas Minerais. Fonte: Guia CBRR.

This is just an overview of the Guide published by the Brazilian Commission. You can read the full guide at:http://cbrr.org.br/docs/guia_declaracao.pdf.

 

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