In mining industry, transparancy, materiality and competence are

obviously needed. It can be understood easily as in this industry, a lot of

money is invested, therefore we need a system that can give protection and
certainty to the investors. The need of system can be met by the presence of
reporting standard for the exploration results, mineral resources and ore
reserves, which is known as code.
In Indonesia, Perhapi and IAGI has made reporting code for exploration
results, mineral resources and ore reserve, which is known as KCMI 2011.
This code refers to JORC Code, which is the reporting standard for
Austalasian. In this chance, we will discuss about the differences between
JORC (2012) and KCMI (2011).
JORC (The Joint Ore Reserves Committee) Code sets out minimum
standards, recommendations and guidelines for public reporting of
exploration results, mineral resources and ore reserve which is applicable to
all solid minerals, including diamonds, other gemstones, industrial minerals
and coal in Australasia. While KCMI, that is adopted from JORC Code (2004)
sets out minimum standards, recommendations and guidelines for public
reporting of exploration results, mineral resources and ore reserve which is
applicable to all solid minerals, including diamonds, other gemstones,
industrial minerals and coal in Indonesia.
Overall, JORC and KCMI are similar as KCMI was adopted from JORC.
Both systems state about the principles needed in this case, which are
transparency, materiality and competence. Both also can be appliced to all
solid minerals, including diamonds, other gemstones, industrial minerals and
coal. Both also set about minimum standard for public reporting of
exploration results, mineral resources and ore reserve; provide ethic code
and instruction for tonnage estimation classification base on geological,
technical and economical consideration; explain qualification that is needed
for competent person; also provide data and general criteria which have to

be considered in preparing report for exploration results, mineral resources

and ore reserve. However, as KCMI refers to JORC 2004, so after JORC 2012 is
applied, there are some differences between KCMI 2011 (JORC 2004) and
JORC 2012. So what has changed in JORC 2012 from the prior, JORC 2004
(KCMI 2011)?

In JORC 2012, Table 1 reporting on an if not, why not? basis which

means that each item listed in the relevant section of Table 1 must be
discussed and if it is not discussed then the Competent Person must
explain why it has been omitted from the documentation. It can be seen
in Clauses 2, 5, 19, 27, 35 and the introduction of Table 1.

Competent Person Attributions (Clause 9)

Exploration Targets is defined in Clause 17 of the 2012 JORC Code

which also explains how that terminology may be used within a Public
Report. The clause emphasises the importance of ensuring that a
reported Exploration Target cannot be misconstrued or misrepresented as
a Mineral Resource or Ore Reserve, and that all disclosures of an
Exploration Target must clarify whether the target is based on actual
results or a proposed exploration programme.

Pre-Feasibility required for Ore Reserves (Clause 29)

Technical Studies definitions (Clause 37-40). In JORC 2012, it describes

what technical and economic studies are, and their application under the
JORC Code (clause 37), scoping study (clause 38), Pre-Feasibility Study
(Clause 39) and Feasibility Study (Clause 40). This was in response to the
requirement for a Pre-Feasibility Study to be conducted as part of
estimating an Ore Reserve for inclusion in a Public Report. These
definitions are identical to those in the CRIRSCO standard definitions,
and will eventually be included in all the CRIRSCO standards and codes.

Annual Reporting (Clause 15)

Metal Equivalents (Clause 50)

In situ values (Clause 51)

Additional guidance on reporting in Table 1 which now includes

additional criteria and amended and/or additional explanation of Table 1
reporting to assist Competent Persons Guidance changes are primarily
for reporting of Mineral Resources and Ore Reserves, although there are
also additional information requirements related to sampling techniques
and the reporting of Exploration Results.

Examples of mining scandals related to ethic code in reporting exploration

results, mineral resources and ore reserve:

(1997) Bre-X / Busang Saga - salting

Naxos (May 1996) proprietary assaying

Cartaway (May 1996) visual estimates

Timbuktu (June 1996) salting.

Delgratia (March 1997) salting

Golden Rule/ Hixon Gold (May 1997) salting

Southwestern (July 2007) assay data manipulation/ sample contamination

References
http://perhapi.or.id/doc/majalah-pertambangan/majalah-pertambangan-1.pdf
https://pemeriksaanpajak.com/2015/08/21/modal-janji-perlu-diwaspadai/
http://www.tambang.co.id/kasus-phe-raja-tempirai-hakim-pn-jakpus-langgarprofesionalisme-dan-kode-etik-4864/
http://www.asx.com.au/documents/asx-compliance/01-asx-resourcesreporting-jorc-presentation.pdf