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PERC Reporting Code 2008. Launch of the “Exposure Draft” 17 June 2008 www.percreserves.com. Why have a reporting code ?. Consistency – for investment decisions Reliability – “competent persons” Regulation of companies and markets (especially after Bre-X) Protection against litigation
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PERC Reporting Code 2008 Launch of the “Exposure Draft” 17 June 2008 www.percreserves.com PERC 2008
Why have a reporting code ? • Consistency – for investment decisions • Reliability – “competent persons” • Regulation of companies and markets (especially after Bre-X) • Protection against litigation • Ease of communication: a common language PERC 2008
Reserves Reporting Codes in UK and western Europe • 1991: the IMM code, defined: • Proven & probable reserves • Measured & indicated resources • The Competent Person • 2001: “The Reporting Code” • Update for international convergence • Under the aegis of IMM, but co-sponsored by EFG, the Geological Society, and IGI PERC 2008
Why update the Code ? • In response to increased globalisation • In support of regulatory requirements, regionally and worldwide • To meet needs of particular industry sectors • To maintain a European reporting code for use in European markets PERC 2008
PERC:the Pan-European Reserves & Resources Reporting Committee • Committee convened in 2006 as the successor to the former IMM Reserves Committee • Continued formal involvement of IOM3, EFG, IGI, and GSL • IOM3 now involved through IMMa • Scope explicitly broadened to cover Europe, not just UK • Principal tasks: to maintain and update minerals reporting code for European markets PERC 2008
PERC Membership • Representatives of • (1) the four sponsoring organisations • (2) CRIRSCO • (3) key mining industry sectors • (4) consultants • (5) the financial community PERC 2008
Structure of PERC • Sub-committees: • London Financial sub-committee (as a model for further similar sub-committees elsewhere) • Industrial Minerals sub-committee • Diamonds/Gemstones sub-committee • Working group: • PERC manages the CRIRSCO-GKZ working group on harmonisation of international and Russian reporting systems PERC 2008
The PERC Code 2008 • An update of the 2001 Reporting Code • Progressive convergence with international standards as defined in the CRIRSCO code “template” • Incorporating regional industry interests and requirements PERC 2008
Solid minerals: resources and reserves PERC 2008
PERC Code 2008: key changes • Competent Person definition. A tighter definition but without using a ROPO list • New section for historical estimates • Revised and expanded industrial minerals / dimension stone / aggregates section • Expanded diamonds section • New section for coloured gemstones • Appendix 4 competent person consent form added PERC 2008
Relationships among PERC, the professions, and regulatory organisations PERC 2008
What happens next ? • Launch of Exposure Draft – 17 June 2008 • Consultation among other CRIRSCO members, and the mining and financial communities • Consultation stage: ends 17 Oct 2008 • Finalisation of Code with agreed amendments • Code release: 17 Dec 2008 • Recognition by UK LSE / Listing Authority (UKLA) and by AIM, and progressively by other European stock exchanges • MORE INFO FROM www.PERCreserves.com PERC 2008
RESOURCE – RESERVE REPORTINGThe International Dimension Launch of the “PERC Exposure Draft” 17 June 2008 PERC 2008
CRIRSCO FAMILY OF CODES FIRST EDITIONS JORC (1989) – UK (1991) - SME Guidelines (1992) – CIM (2000) – SAMREC (2000) – PERC (2001) – Peru (2006) - Chile (2007) – Philippines (2007) INTERNATIONAL DEVELOPMENTS 1997: Denver Accord; 1998: Geneva Convention with UN-ECE; 2007: Mapping with SPE PRMS; 2008: Mapping to UNFC (revised)
National Reporting Organisations Australia USA S Africa UK W Europe Chile Canada 2 Nominees per NRO CRIRSCO Chair elected within CRIRSCO Sub Committees http://www.crirsco.com CRIRSCO Organisation ICMM International Council On Mining and Metals
The Linkage in Australia & Canada Source: AMC Mining Consultants (Canada) Ltd
Western Europe, including United Kingdom and Ireland Professional & Industry Organizations Statutory/Semi-Government Organizations Regulatory Organizations EU IGI EFG IOM3 GS UKLA EU Exchanges LSE AIM PERC ROPO Financial Services Directive PERC Code Competent Person AIM Guidance Notes Incorporated by reference. In common with: JORC, SAMREC, CIM, SME, Russian Codes Listing Rules Publicly listed companies Professionals NOMADS Compliance Responsible for Guidance May Act As Accountability or Oversight Communication Link
National Reporting Organisations Australia USA S Africa UK W Europe Chile Canada 2 Nominees per NRO CRIRSCO Chair elected within CRIRSCO Sub Committees http://www.crirsco.com CRIRSCO Organisation Template UNFC Mapping SPE Mapping Russian Code Mapping IASB IFRS Chinese Code Mapping ICMM International Council On Mining and Metals