SAMCODES have launched an App that allows one to access and search the SAMREC, SAMVAL and SAMOG Codes, the JSE Section 12 listing rules as well as SAMESG and the Diamond Guidelines for reporting.
It is now possible to have the SAMREC, SAMVAL and SAMOG Codes in your pocket so that it can be available at any time and you don’t have to search through a PDF to find the detail you need.
Go to the Google Play store and download it now.
You are now able to download the app via the Android Store or you can follow the below URL from your Android device.
The IOS/Apple version will be available soon.
CRIRSCO (Committee for Mineral Reserves Internal Reporting Standards) recently held its 2019 Annual Meeting In Washington DC, USA (9 -11 September 2019). The meeting was successful and included the opportunity for the various NROs (SAMREC is one of the14 National Reporting Organisations) to report back on their activities during the past year. Opportunity was given to a number of countries seeking to become members of CRIRSCO . These include Argentina, China, Peru, Philippines.
The CRIRSCO Template was finalised and will be released soon.
The meeting held a strategy session in which the path CRIRSCO will be taking in the next few years was discussed. The meeting ended with a workshop with the SME and SEC as well as an opportunity to meet with the SEC to foster relationships going into the future.
Ken Lomberg was confirmed as the Chairperson of CRIRSCO for 2020.
Thank you to the National Mining Association for hosting our meeting. The Meeting in 2020 will be held in Johannesburg, South Africa.
PRESS RELEASE –
The National Committee for Reporting Exploration Results, Mineral Resources and Reserves in India (NACRI) has become the latest member of the Committee for Mineral Reserves International Reporting Standards CRIRSCO India, further strengthening the adoption of internationally recognized and accepted reporting standards for solid mineral reserves and resources.
The Annual Meeting of CRIRSCO was recently held in London (17 – 19 September 2018) and attended by representatives of the 13 National Reporting Organisations (NROs). It was attended by Messrs. Roger Dixon and Ken Lomberg on behalf of the SSC. The meeting was held at The Institute of Materials, Minerals and Mining (IOM3)
Andrew holds a B Eng (Chemical) and M Com (Financial Economics) and worked in production and project roles up to 2006, when his focus shifted to strategy, business development and valuation. He has spent several years as technical advisor to government committees overseeing the negotiation of mining conventions and rail and mineral terminal concessions. He has experience in valuing metals and minerals assets, including iron ore, manganese, chrome, copper, coal, gold and the platinum group metals. Andrew is on the council of the Southern African Institute of Mining and Metallurgy (SAIMM) and is a member of the Institute of Directors.
The SAMESG Committee drives the environmental, social and governance aspects of public reporting that is becoming increasingly more important in the minerals industry. Since 2014, the SAMESG Committee has been ably led by Mrs Sarah Magnus. During Q2/2018, the Chair has moved to Ms Teresa Steele-Schober.
Teresa has worked extensively in the mining industry as an environmental and sustainability professional. She started her working life as a geologist in the gold mining sector, after which she moved into the environmental field. She has worked at various mine sites and corporate functions in a range of commodities including gold, base metals, heavy mineral sands and coal. Her experience includes on-site management of environmental and sustainability issues including design, implementation and management of ISO14001 compliant environmental management systems. Teresa has worked in corporate advisory and reporting roles. She has significant experience managing sustainability issues on large capital projects, including the completion of project feasibility studies; risk assessment and management; and permitting processes. Teresa worked for a large multinational mining company before opening her boutique environmental and sustainability consultancy.
The SAMCODES Standards Committee (SSC) develops, promotes and ensures compliance with the South African Mineral and Oil & Gas Reporting Codes. These Codes comprise the SAMREC, SAMVAL and SAMOG Codes, and associated Guidelines. Governance of the Codes is affected through membership of Professional Bodies, through Statutory Registration of Earth and Geological Scientists and Engineers, and through the Johannesburg Securities Exchange (the JSE) Reader’s Panel.
The Securities and Exchange Commission (Washington DC October 31, 2018) announced that it has voted to adopt amendments to modernize the property disclosure requirements for mining registrants, and related guidance, under the Securities Act of 1933 and the Securities Exchange Act of 1934. The amendments will provide investors with a more comprehensive understanding of a registrant’s mining properties, which should help them make more informed investment decisions. The amendments also will more closely align the Commission’s disclosure requirements and policies for mining properties with current industry and global regulatory practices and standards.
With the MRREC delegation training program hosted by the SSC in South Africa now concluded, we can reflect on the many positives that their visit has brought. It has further strengthened ties between South Africa and China, creating friendships and contacts across the two countries. It has also engendered a greater respect for South Africa’s mineral wealth and the role that the local industry has played in creating strong mineral reporting standards globally. As a showcase for the country’s consulting companies and software providers, it has proven a great succes
Datamine Africa successfully hosted a high-ranking delegation from Beijing, China on the 30th of October 2018.
Datamine sponsored the full day event, which was one of several, hosted in partnership with South Africa’s Samcodes Standards Committee (SCC).
While the focus of the event was to give an understanding of the role of the code in assessing capital markets, the delegation also got an introduction to how Datamine’s Software can be used during the entire mine planning process.
An important Chinese mining sector delegation visiting South Africa was this week able to gain valuable insights from specialist engineers and scientists from SRK Consulting (SA), focusing on the range of factors that affect mineral resource and mineral reserve reporting and valuation. The delegation comprised members of the Mineral Resources and Reserves Evaluation Centre (MRREC) of the Ministry of Natural Resources in Beijing, who were hosted by South Africa’s Samcodes Standards Committee (SSC).
Monday 22nd October saw the MRREC Chinese Delegation visit Impala Platinum and it’s towering No. 16 Shaft in Rustenburg (apparently taller than the Statue of Liberty). Outgoing Implats Lead Competent Person, Seef Vermaak, accompanied the delegation on the tour, which included a visit to the processing and smelting plants, as well as to the core yard where many a discussion was had on platinum mineralisation in the Merensky and UG2 reefs.
On Friday 19th October the JSE hosted the MRREC delegation for a morning presentation on the JSE’s role within the SAMCODES, including the JSE Readers Panel and its Mandate. Senior members of the delegation had the opportunity of opening the market (on the podium, from right: Mr. Gao Limin - Deputy Director General, Ms. Pan Xinru - Division Chief, Mr. Zhang Huichang - Principle Section Member).
On Wednesday 17th October the MRREC delegation from the Ministry of Natural Resources of P.R. of China underwent their first day of training at the Wanderers Club in Johannesburg. This 3-week training forms part of the requirements for China to become a member of CRIRSCO.
Day one saw the SSC Chair Matt Mullins, accompanied by SSC Vice-Chair Tania Marshall, SAMREC Chair Ken Lomberg, and Roger Dixon from SRK, give an introductory presentation to the 18-strong delegation.
The training is provided by key members of the SSC, as well as its associated organisations, South African mining parastatals, professional organisations, educational institutions, and mining, consulting and software companies. This event has been sponsored by SRK Consulting, TECT Geological Consulting, Ukwazi, and Datamine.
The head of the delegation, Mr. Gao Limin (Deputy Director General of the Mineral Resources and Reserves Evaluation Center (MRREC) of the Ministry of Natural Resources of the P.R. of China), can be seen below presenting gifts to speakers.
Effective 1 October 2018 (based on SAMVAL Guidance Note 4.4), clause 4.4 of the SAMVAL Code has been modified from:
“The results from the valuation approaches and methods employed should be weighted and reconciled into a concluding opinion of value in accordance with Figure 1. The reasons for giving a higher weighting to one method or approach over another should also be stated and justified.”
“The results from the valuation approaches and methods employed should be weighed and reconciled into a concluding opinion of value in accordance with Figure 1. The reasons for giving a higher weighting to one method or approach over another should also be stated and justified.”
This is a typo error – it should be “weighed” as used in clause 25 of the 2009 edition of SAMVAL Code.
Valuators should be aware that the use of the words “weighed” and “weighted” did not intend for a subjective weighting factors to be applied to the individual value ranges determined by the Cash Flow, Market and Cost Approaches to arrive at a final weighted average value.
The purpose of comparing (“weighing”) the results from the various Valuation approaches and methods is to provide corroborative evidence for the value ascribed to a mineral asset. In evaluating (“weighing”) the various results, the determination of the final value (the relative “weighting” of the different values) is dependent on the Competent Valuator’s experience and judgement. The Competent Valuator has to determine which of the valuation techniques used is the most appropriate for the asset being valued.
The use of subjective weightings applied to two or more valuation approaches and aggregating such weighted values in arriving at a final value is therefore not considered compliant with the SAMVAL Code.
19 June 2018
JOHANNESBURG (miningweekly.com) – South Africa’s meticulous set of mineral reporting codes has succeeded in attracting a high-ranking Chinese delegation from the Mineral Resources and Reserves Evaluation Centre of the Ministry of Land and Natural Resources (MRREC) in Beijing.
Mining professionals from around the country, with all levels of experience, took part in the 4th Annual SAMREC/SAMVAL Compliance and JSE Reporting Workshop hosted by the GSSA and the SSC at the Glenhove Conference Centre in Johannesburg from 28th-29th June.
SAMCODES Standards Committee (SSC) Vice-Chairperson Tania Marshall chaired the workshop, with presentations by industry stalwarts and SSC members including SAMREC Chair Ken Lomberg and SAMVAL Chair Kelly Redman. The workshop is aimed at those interested in becoming Competent Persons (CPs) and Competent Valuators (CVs), with respect to the public reporting of solid minerals.
SAMREC and SAMVAL fall under the SAMCODES; codified sets of standards and principles that are meant to guide CPs and CVs when they compile a public report, such as a Competent Person’s Report (CPR). The Codes provide for a common language that CPs and CVs can use, and that can be understood by readers of public reports.
The main purpose of the Codes is to protect investors. For example, a CPR is a type of risk assessment of a mining project and is required by the JSE before a mining venture can be listed on the exchange. To ensure that the report adheres to the Codes, the JSE maintains a Reader’s Panel to review all reports. Panel members are appointed by the JSE and are experts in the commodity under consideration; they remain anonymous, except to the chairperson of the panel. One important aspect to note is that a CP or CV must be an actual person rather than a corporate entity, and that this must be indicated as such on the report as it is this person who is responsible for the report and eventually signs off on it. Rob Ingram, Chair of the Solid Minerals section of the panel, claimed that in recent years there has been improvement in public reporting. Excellence in public reporting is recognised annually by the Investment Analysts Society of South Africa and the SSC with the awarding of the SAMREC/IASSA Squirrel Awards.
Being a CP or CV not only requires at least 5 years actual experience in the specific commodity that the report deals with, it also requires membership to a professional body such as the GSSA or the SAIMM and registration with a statutory body like the South African Council for Natural Scientific Professions (SACNASP). The organisation accounts for over 13000 members, with Geology being by far the biggest field of practice amongst its members.
Both days of the workshop concluded with panel discussions. On Thursday, Roger Dixon was invited to share his thoughts on International Developments and intimated that the SAMCODES are in a good position when compared internationally – not as hindered by government control as the Russian Codes (NAEN) and at least recognised by the country’s Financial Sector Conduct Authority, unlike with the American Codes, which are not recognised by the SEC. However, one concerning insight was the distrust of SA by the rest of the African mining community given the country’s history of xenophobia. Thus the African Union would prefer rather to develop their own Pan-African Reporting Codes than to adopt the SAMCODES. This is a situation that certainly needs to be addressed if South Africa wants to be at the forefront of capital investment in the mining industry on the continent. Nonetheless SA is aiming to assist the AU in the drafting of its Codes.
Vaughn Duke was a guest on the second panel discussion on Friday, on the Governance and Effectiveness of the Codes. When asked if the Codes were deemed useful, one attendee quipped it was not clear to whom they were useful. It also appears junior mining companies have tarnished industry perceptions with their gung-ho investing. The key in the use of the Codes in good reporting practice is to prevent errors beforehand rather than to correct mistakes after the fact. Vaughn indicated that the SAMVAL Committee planned to start examining disaster cases in public reporting and investing so as to better inform the industry on how not to go wrong.
Attendees were approached for their opinions on the SAMCODES and the SSC. There were compliments for the co-branding of the Codes, in that it makes all the codes recognisable and allows for easier interaction and administration. Training, such as with this workshop, was also highlighted as an invaluable means of spreading exposure to the Codes, and more would be welcome. However, reservations about the lack of diversity involved in building the codes were expressed too: “More involvement of players within the industry would be much more helpful. It’s quite a select few who are really contributing. A more diverse number of contributors might actually improve SAMREC.” There was also a suggestion that more specific reporting guidelines for other minerals could be introduced, just like SAMREC has done for Coal and for Diamonds. Yearly feedback from the SSC such as a summary of issues encountered in CPRs and ways to improve would also be appreciated.
An interesting aside to the rest of the workshop was a talk given by Ryan Gibson of IFXBG, on Venture Capital and Crowdfunding in Junior Mining. Gibson touched on tapping into social media for potential investors and how the crowdfunding platform spreads risk across a larger, but probably smaller-incomed base of investors. Asset-backed cryptocurrencies (e.g. backed against gold reserves) are also now being introduced as a means of buying shares into a mining company.
SAMCODES Chairperson Matt Mullins was recently at the Junior Indaba, speaking to Creamer Media’s Mining Weekly.
SAMCODES Standards Committee (SSC) Chair Matt Mullins is currently attending the Minex Central Asia Forum taking place in Astana, Kazakhstan. On Wednesday 18th April he delivered a presentation on Global Mineral Resource and Valuation Reporting Standards.
With Kazakhstan being the newest member of the Committee for Mineral Reserves International Reporting Standards (CRIRSCO), Matt discussed the Evolution, Convergence, and Effectiveness of reporting codes both in South Africa and globally. There was particular focus on the current organisation and effectiveness of the SSC.
SAMCODES comprises the Minerals Reporting Code (SAMREC), the Mineral Valuation Code (SAMVAL) and the Oil and Gas Reporting Code, and these, together with the SSC relationship with the Johannesburg Securities Exchange, were critically described.
As SSC Chair, Matt oversees this broad-based industry committee, which is tasked to develop, maintain, administer, ensure compliance with and promote the South African Codes.
To further strengthen the Kazakhstan reporting codes and their relationship with the South African and international versions, Matt will be meeting with key representatives from CRIRSCO, the Kazakhstan Reporting Code (KAZRC) Association, the Kazakhstan Stock Exchange (KASE), and the South African Ambassador to Kazakhstan.
Update from Matt:
The meeting with the South African Ambassador to Kazakhstan, Keitumetsi Seipelo Thandeka Matthews, went extremely well. Although the weather has been particularly bad of late, I was warmly received at the SA Embassy, located at the Kaskad Business Centre in Astana – Kazakhstan’s capital. The Ambassador and her counsellor, Mr Theo Malherbe, showed a keen interest in my SAMCODES presentation and understood the need to change perceptions about SA Mining.
At the same time, there is also a need to broaden SA knowledge and perceptions about Kazakhstan. The Central Asian nation is an economic force – with only 18 million people, it attracts 70% of the FDI in the region. This has lead to the formation of a national company, Kazakh Invest, which is tasked to be the sole negotiator between government and International businesses. The company already has 145 projects, totalling $45.7billion capital investment, many of which are in Minerals and Oil & Gas.
Kazakhstani citizens are favoured in business dealings and there is a real thirst to learn English (an SA exchange has been mooted), which runs parallel to the desire for the country’s economic activities to attract a more global audience.
It was recommended that I attend the World Mining Congress, also to take place in Astana in June, as a way to gather further momentum. I am truly grateful to the Ambassador for offering her assistance going forward.
Last updated: 22/01/2019