Professional Documents
Culture Documents
AGENDA Introduction
ResourceReportingCodes anIntroduction ExplorationStages Exploration Stages ExplorationReporting p p g Conclusion
Discussion
MGEI IAGI SEMINAR, BANDUNG 2
EXPLORATIONSTAGES
JORC STAGE:
STAGE RESEARCH
EXPLORATION RESULTS
RECONNAISSANCE FIELD MAPPING INITIAL DRILLING
Reconnaissance mapping
Typically 2 to 4 km spacing
Drilling typically Drilling typically 1 km spacing 500m spacing Initial geotechnical studies Reliable topographic maps Estimate Indicated Resources Geotechnical drilling Bulk Sample; or p ; large diameter core Estimate Measured Resources
TASKS
Outcrop Logging
Field Mapping
Preliminary Coal rank / quality depositional model assessment Check environmental issues / land status
Scout Drilling
Probable
Proved
ThreePrinciplesoftheReportingCodes
The Codes like CRIRSCO and JORC for reporting coal resources and quality and also for exploration p q y p planning. g These codes have 3 principles, which give investors more certainty on the results: Transparency - clear and unambiguous presentation of information. M t i lit Materiality - all the information reasonably required and expected Competence p - public reports based on work undertaken by Competent Persons
Relationship ExplorationResults,Resources,Reserves
CoalResourcesandCoalReserves
A CoalResourceisthatpartofadepositwithreasonableprospects foreventualeconomicextraction.Thelocation,quantity,quality, ,q y, q y, geologicalcharacteristicsandcontinuityofaCoalResourceare known,estimatedorinterpreted,fromPointsofObservation. ACoalReserveistheeconomicallymineablepartofaMeasuredor IndicatedCoalResource.
MineralResource/ReserveEstimations&associatedreports
Reports PublicorInternal?
PUBLIC REPORTS (for share market investors etc) It is intended that the Public Reporting provides all the information that investors and their professional advisors would need, and reasonably expect to find, for the purpose of making a reasoned and balanced judgement regarding the Exploration Results, Mineral Resources or Ore Reserves being E l ti R lt Mi lR O R b i reported. In some countries, Public Reports to the sharemarket are regulated by a Reporting Code. INTERNAL REPORTS If the reporting is an internal report for Company management, it has a similar purpose Company management needs an purpose. impartial review of the results; and what these results mean for the resource potential. They also need to understand the work p g program and likely costs of future programs, and whether the y p g , resource is likely to be economic.
MGEI IAGI SEMINAR, BANDUNG 8
AGENDA Introduction
ResourceReportingCodes anIntroduction
Discussion
MGEI IAGI SEMINAR, BANDUNG 9
StagedCoalExploration
Explorationproceedsinstages.Thereisadecisionpointbetween eachstage:resultsareevaluatedandadecisionmadewhetheror g nottocontinue.Forexampleearlyreconnaissancemayshowthe areaistoofolded,withverysteepdips;orthattherankofthecoal istoolow. Theearlystageislowcost,coveringlargeareas Ifexplorationresultsaregood,thetargetareabecomesmore focussed andmoreexpensiveexplorationmethodsareused. Advancedcoalexplorationiscostly,usingdrilling;butatthisstage thechancesofsuccessshouldbehigh,sorisksarelow.
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RESEARCHSTAGE
JORC STAGE:
STAGE RESEARCH
EXPLORATION RESULTS
RECONNAISSANCE FIELD MAPPING INITIAL DRILLING
Reconnaissance mapping
Typically 2 to 4 km spacing
Drilling typically Drilling typically 1 km spacing 500m spacing Initial geotechnical studies Reliable topographic maps Estimate Indicated Resources Geotechnical drilling Bulk Sample; or p ; large diameter core Estimate Measured Resources
TASKS
Outcrop Logging
Field Mapping
Preliminary Coal rank / quality depositional model assessment Check environmental issues / land status
Scout Drilling
Probable
Proved
11
Research GISModel
Base map of digital regional geology (1:250,000) Petroleumexplorationwells Locationofcoaloutcrops Locationofpreviouscoalboreholesifany;withdrillingresults Topographicdata;digitalterrainmodelifavailable p g p g Remotesensingimagery Regionalgeophysics Infrastructure(roads;ports) Infrastructure (roads; ports) Nationalparksornaturereserves; CoalTenements(KP,CoalCOW)
CoalLocation Data
Digital Geology
Regional Structure
Research GISModel
Lookfortrendsofcoalqualityor thickness Lookforerrorsinregionalmapping Lookforareasthatareopen(not heldbyothercompanies)forthe held by other companies) for the wrongreasons;eg becausethere hasbeenanerrorintheregional mapping. mapping Therewillthenbealistofquestions tobesolvedbyfieldwork
GIS model of part of the Sydney Basin Source: SRK website
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Research GISModel
Lookfortrendsofcoal qualityorthickness g Lookforerrorsinregional mapping Lookforareasthatareopen (notheldbyother companies)forthewrong companies) for the wrong reasons;eg becausethere hasbeenanerrorinthe regionalmapping. Therewillthenbealistof There will then be a list of questionstobesolvedby fieldwork
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EXPLORATIONSTAGES
JORC STAGE:
STAGE RESEARCH
EXPLORATION RESULTS
RECONNAISSANCE FIELD MAPPING INITIAL DRILLING
Reconnaissance mapping
Typically 2 to 4 km spacing
Drilling typically Drilling typically 1 km spacing 500m spacing Initial geotechnical studies Reliable topographic maps Estimate Indicated Resources Geotechnical drilling Bulk Sample; or p ; large diameter core Estimate Measured Resources
TASKS
Outcrop Logging
Field Mapping
Preliminary Coal rank / quality depositional model assessment Check environmental issues / land status
Scout Drilling
Probable
Proved
15
ReconnaissanceandMappingStages
Reconnaissance level work is done to confirm the regional geology; to locate and sample known coal outcrops to determine the coal rank and some aspects of the quality; in some cases coal thickness may be assessed. The dips can be measured, so for example if the area is too strongly folded, that can be determined immediately, without y going into a more detailed program.
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REMOTESENSINGbeforethemapping
Remote sensing interpretation is done by specialised consultants Results are used to guide the location and focus of field mapping The interpretation will usually p y give more focussed detail in the areas of interest, than the regional geological maps.
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FieldMapping
In Indonesia, with heavy rainfall and the typical coal measure topography, reconnaissance & field mapping will provide a lot of detail on the local geology and coal outcrops may be located & geology, sampled. In drier areas, outcrop may be limited to occasional road cuttings. In these situations, regional oil & gas drilling, or stratigraphic boreholes, may be initial regional sources of data
Indonesia
Sampling
Systematic channel sampling is done on good outcrops The channel should be cut back into fresh coal Ply by ply sampling
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DetailedFieldMapping
Detailedmappingisdoneoverthemaintargetarea;eg at1:10,000 or1:5000 This mapping may use a remote sensing interpretation as a guide Thismappingmayusearemotesensinginterpretationasaguide. LocationsdeterminedusingGPS. Coaloutcropsshouldberecordedindetail.Attemptsshouldbe madetofollowcoalalongstrikeifpossibletocheckcontinuity. made to follow coal along strike if possible to check continuity Measurecoalthickness;strike;dip;takesamples Recordcoallithotypes;partings; Mapping gives an initial estimate of seam thickness; seam Mappinggivesaninitialestimateofseamthickness;seam correlation;andapreliminaryestimateofthecoalquality.However cokingpropertiesmaybeunreliable.Calorificvaluemaybetoolow andmoisturetoohigh.Vitrinitereflectanceisreliable. Theremayberecognisable markerbedssuchaslimestone;basalt; oreventhetopofbasement,thatwillbeusefulinassessingthe overallcorrelation. GEOLOGICAL REPORT ith ll GEOLOGICALREPORTwithallresultsandmaps. lt d
MGEI IAGI SEMINAR, BANDUNG 20
TestPits
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RankChangesacrossabasin
Rankchangeslikethistypicallyshowuswhere thecentreofthebasinwas.Theareainthe eastwasmoredeeplyburied. east was more deeply buried. Dataonrankchangescanbeacquiredatan earlystageduringexplorationandcanbean indicatorofwherethebestcoalwillbe. Outcropsamplescanbeacquiredforvitrinite reflectancetesting,whichwillindicatethe approximatecoalrank
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Trenching
In some areas trenching may be done, where the topography and depth of weathering are suitable.
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EndoftheMappingPhase ScoutDrilling
Themappingphaseoftenendswithascout drillingprogram.Therigistypicallylightweight gp g g yp y g g andportable,asaccessisdifficultatthisstage, andthedrillingistypicallyshallowdrillingnear outcrops. Severalwidelyspacedboreholesaredrilled.They will: Confirmthecoalquality C fi Confirmseamthicknessandthedip thi k d th di Providegoodinformationondrillingconditions andcosts,tohelpplanthenextphase,drilling.
MGEI IAGI SEMINAR, BANDUNG
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TheReport
MAPSarepreparedshowingalltheexplorationresults outcrops,strikes,dips,coal samplepoints;coalthickness;etc,andanyrevisedinterpretationsontheregional geology.Adatabaseisneeded,inGISformat.Alogicalscaleshouldbeused.Themap geology A database is needed in GIS format A logical scale should be used The map shouldincludetheKPboundaries. AREPORTisprepared.Achecklistshouldbeused,toensureallpointsarecovered.A suitablechecklistisprovidedlaterinthisreport.Itstartswithpreviousworkand suitable check list is provided later in this report It starts with previous work and regionalgeology,andendswiththerecommendationsandworkprogramforthenext phase. Managementneedstobeawareofthemostlikelysizeandqualityoftheresource Management needs to be aware of the most likely size and quality of the resource targetortheBaseCase.Howeverapotentialrangeshouldalsobeprovided aWorst CaseandBestCase,forthepotentialtonnesofcoalandforthecoalquality.Thingslike distancetoabargeportarealsoimportant. Explorationresultsincludingcoalthickness,dipsandquality,shouldbepresentedin tables.Alldataandrangesshouldbeprovided notjustthegoodresults,thiswillbea biasedreport. ManagementalsoneedstobeawareofthelikelyWorkProgramandBudgetforthe nextphase,sothataninformedYES/NOdecisioncanbemadeatthispoint.
MGEI IAGI SEMINAR, BANDUNG 25
EXPLORATIONSTAGES
JORC STAGE:
STAGE RESEARCH
EXPLORATION RESULTS
RECONNAISSANCE FIELD MAPPING INITIAL DRILLING
Reconnaissance mapping
Typically 2 to 4 km spacing
Drilling typically Drilling typically 1 km spacing 500m spacing Initial geotechnical studies Reliable topographic maps Estimate Indicated Resources Geotechnical drilling Bulk Sample; or p ; large diameter core Estimate Measured Resources
TASKS
Outcrop Logging
Field Mapping
Preliminary Coal rank / quality depositional model assessment Check environmental issues / land status
Scout Drilling
Probable
Proved
26
DrillingPhase
Plantheprogram.Itshouldcontinuetobestaged,withinitialwide spaceddrilling;followedbyaYES/NOdecisionpoint;Surveyingand topographicmapping;forlargescalesurfacemining,reliable t hi i f l l f i i li bl topographicmapsareneededforestimatesofoverburden volumes. Drilling,onagridortraversepattern. Goodcorerecoveryincoalisveryimportant. Determine coal thickness and depth; core the coal seam which will Determinecoalthicknessanddepth;corethecoalseam,whichwill besampledforanalysis. Downholegeophysicalloggingofallboreholes Determinethelocationofthecoalsubcropbyoxidationlinedrilling GEOLOGICALREPORTwithallresultsandmaps.
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CoreRecovery
Good core recovery is essential for reliable quality data Use downhole geophysical logs to determine the location & amount of core loss. The Australian Guidelines to the JORC Code advise normally > 95% core recovery It starts with the selection of the drilling contractor; and with the drilling contract itself. Consistent high core recovery can be difficult in higher rank coals, which can be more friable. Consider moving to PQ core if recovery is poor with HQ / HMLC. This size may be needed anyway for the volume and size needed for float / sink testing of higher ash coa s coals. Triple tube core barrel for better undisturbed core
MGEI IAGI SEMINAR, BANDUNG
CoreLogging
Lithologiesarelogged;standardise betweengeologists; Loggingisbestdoneusingachecklist,andtransferringresultstoa spreadsheetforcomputerdatabasestorage. Recordatleast:
Coalbrightness; Anynon coalpartingswithinacoalseam;(colour;composition;hardness;) Any noncoal partings within a coal seam; (colour; composition; hardness;) Lithologiesofroofandfloor;againwithcolor,composition,dip,etc) Hardnessandothergeotechnicalproperties; Dip;appearanceofdipplanediscontinuities Presenceandorientationofstructures;cleat(incoal);joints; Presence and orientation of structures; cleat (in coal); joints; Presenceoflatermineralisation eg pyrite;carbonates
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CoreDrillingLargeDiameterCore
AtthestageofFeasibilityorPre feasibility,thereisaneedtotake y, bulksamplesforcoketesting (cokingcoal)orcombustion testing(thermalcoal). g( ) Insomesituationsthesesamples areeasiesttakenbyexcavators. Howeverinothersituations,they However in other situations they arebesttakenbydrillingmany largediametercoresamples. Specialcorebarrelswillbe l b l ll b needed.
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CorePhotography
Sampling Precautions
Coal should be sampled as soon as possible after logging the coal. For low rank coals, great care must be taken to avoid the coal drying at all coals before it gets to the laboratory. The coal must be stored in double sealed plastic as soon as possible, and kept out of direct sunlight. If the coal is allowed to dry, the as-received moisture will be too low; and the asas received as received heating values will be too high. This can result in major errors when estimating quality and therefore the likely sales price of the coal. Coking coals can lose some coking properties quickly (especially fluidity). Again coal with likely coking properties should be sampled as soon as possible, and if there is a delay in transport to a laboratory for analysis, should be stored on site in a freezer. The Report on the drilling program should mention precautions taken to ensure ens re that the anal sis is reliable incl ding the treatment of samples analysis reliable, including and precautions taken to ensure against coal drying.
MGEI IAGI SEMINAR, BANDUNG
Plysampling
Coalpropertiestendtofollowlaterally alongstrike. Therewilltypicallybesignificant Th ill t i ll b i ifi t qualitydifferenceswithintheseam. Aftertheinitialdrillingphase,the projectgeologistwilltypicallycorrelate project geologist will typically correlate andnametheseams;andwilldecidea typicalplynamingsystemalso. Latersamplingwillthenfollowthese plies. Thisdependsonaccuratecorrelation oftheplies. Ifpliesarethickthensubplysamples f canalsobetaken;buttheseshould alsofollowstratigraphicboundariesso thattheyareconsistent. that they are consistent.
Ply Geologicalroof 1 2 MiningBenchRoof
MiningBenc ch
Hypothetical vertical section through a seam showing the sub-division into separate plies, which are sampled separately; and the Mining Bench 33
Reconciliationwithdownholegeophysicallogs
Thecoalsampleintervalsmustbereconciledwiththedownhole geophysicallogs.Beforedoingthis,wemustbesurethatthe geophysicaldepthsarecorrectandthatthereisnosystematic deptherror. Thegeologistslogisadjustedsothattheroof,floorandinternal g g g j , stonebands,matchthegeophysicalloganomalies. Theamountofcorerecoveryisthendetermined;andthelocation ofthecorelosscanbedecided. of the core loss can be decided Corerecoveryshouldbeestimatedassoonaspossible.Most drillingcontractsrequirearedrillifthecorerecoveryislessthan 95%withinthemajorcoalseams. h h l
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Database
Datamustbeenteredintoareliabledatabase. p j g , , Astheprojectadvancesandbecomeslarger,withmoredata,itwill benecessarytoassignresponsibilitiesfordatabasemanagement eg therighttoenterdata;therighttomakechanges. As noted original data is kept This includes original paper data Asnoted,originaldataiskept.Thisincludesoriginalpaperdata entrysheets,asthesecanbeusedtocheckfordataentryerrors later.Originalsurveydataandsurveyorsnotesmustalsobe retained,andmaybeneededforanauditofthesurvey. retained and may be needed for an audit of the survey Databasevalidationwillbeneeded
35
GeologicalModelling
Geologicalmodellingisdonewithinacomputerised modelling systemsuchastheStratmodel systemwithintheMinescape software(Mincom). Thesoftwareallowstheusertodefinetheseamnamesandseam relationships(eg splitting);minimumpartingthickness;location p ( g p g); p g ; andorientationoffaults;depthofweathering. Themodelcanthenbeusedasinputtoamineablereserveand qualityestimation. quality estimation
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AGENDA Introduction
ResourceReportingCodes anIntroduction ExplorationStages Exploration Stages ExplorationReporting p p g Conclusion
Discussion
MGEI IAGI SEMINAR, BANDUNG 37
Reporting
After each stage of a staged Exploration Program, a Report is needed. The E l ti Management will require reporting t understand th Th Exploration M t ill i ti to d t d the results and recommendations / budgets for the next step. In some cases the Geologists report will become part of a larger Feasibility Study or an economic scoping study so Company management can make informed study, decisions and to inform potential sources of finance for the project. If the company is listed on a Share Market investors need to be fully Market, informed of exploration results. In some countries, the sharemarket regulators require that resource reporting follows the standards set by a Mineral Code eg JORC. g Some companies require that internal reporting for company management also follows the same standards. This gives a solid framework for reporting.
MGEI IAGI SEMINAR, BANDUNG 38
Reporting
The report content will depend on the stage. All will share th f ll i as a minimum: ill h the following i i All results will be in tables, either as a backup database or in an Appendix to the report report. The report will have a Location Map and a clear definition of the title (eg KP or PKB2B boundaries) and other Land Status eg Kabupaten boundaries; National Parks etc. Geological results will be shown clearly in maps at appropriate scales and g y p pp p in cross sections. The report will end with recommendations for the next stage; if the recommendation is to continue, then there will be a Work Program; and a budget; and a target in terms of the planned Resource Classification and the potential resource and quality that may be proved by the program. 39
Reporting EarlyStage
If the report is for early stage results, before the declaration f th d l ti of a Resource, then the following is a suitable Check List to consider consider.
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TenementData
41
Geology explainthecoalstratigraphy
42
Reporting LaterStage
43
Maps.
Topography
44
ReportingChecklist
SamplingTechniques
Typeofsampling;techniquesusedtoensure samplesarerepresentative Drillingtype;details;corerecovery;whether ll d l h h biasmayhaveoccurred Loggingtechniquesanddetail;photography L i t h i d d t il h t h Laboratoryprocedures;QC(qualityControl)
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ReportingChecklist(Continued)
SamplingTechniques(Contd)
Boreholespacing;relevancetotheCoal Resourceclassification Topographicmapping;techniques;accuracy h h Topographicsurveyofboreholes;accuracy; projectionsystemused; j ti t d Resultsofanyauditsorreviewsofsampling techniquesanddata; techniques and data;
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ReportingChecklist(Continued)
DatabaseIntegrity
Measurestakentoensuredatahasnotbeen corrupted Datavalidationprocedures ld d
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ReportingChecklist(Continued)
GeologicalInterpretation
Confidenceinoruncertaintyaboutthe geologicalinterpretation Typeofdataused;assumptionsmade fd d d theimpactofalternateassumptionsonthe Coalresourceestimate(eg alternate C l ti t ( lt t locationoffaultsetc) Thefactorsaffectingcontinuityofcoalseams The factors affecting continuity of coal seams andofcoalquality
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ReportingChecklist(Continued)
Estimationandmodellingtechniques
Thetypeandsuitabilityofthetechniques usedandkeyassumptions. Thevalidationprocess;comparisonofmodel h ld f d l datatoboreholedata
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ReportingChecklist(Continued)
Moisture
Themethodofdeterminationofthemoisture The method of determination of the moisture content themoisturebasis ifalowrankcoal,stepstakentoensurethatthe if a low rank coal steps taken to ensure that the samplesdidnotlosemoisturebeforetesting
ResourceReporting
TheResourcesshouldbereportedforindividualseamsorseamgroups;and shouldbedividedandreportedusingkeyvariablessuchasthickness,depth range,stripratio,andgeologicalortechnicalconsiderations.Thekeyvariables range strip ratio and geological or technical considerations The key variables andassumptionsforeachdepositshouldbeclearlystatedinordertoensure
clarityandtransparencyofthereport.
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ReportingChecklist(Continued)
RelativeAccuracyofResourceEstimate
Whereappropriateastatementoftherelative h i f h l i accuracyand/orconfidenceintheCoalResource forexampletheuseofgeostatstodeterminethe for example the use of geostats to determine the relativeaccuracywithinstatedconfidencelimits; oralternatively,aqualitativediscussionofthe factorsthatcouldaffecttheaccuracy.Consider f t th t ld ff t th C id providingaRangeofresourcesize,fromworstcase tobestcase,withaBaseCase,whichemphasises , , p thatthisisanestimatenotacalculation
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ResourceChecklist(Continued)
Classification
Thebasisfortheclassificationintoresource The basis for the classification into resource categories; Discussiononhowtheclassificationconsidered allrelevantfactorseg confidenceintheestimate all relevant factors eg confidence in the estimate ofthetonnes;confidenceincontinuityofthecoal seams;confidenceinthedepthofweathering andtopographicmapping;confidenceinthe and topographic mapping; confidence in the continuityofthecoalquality
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ReportingChecklist(Continued)
AuditsorReviews
Theresultsofanyauditsorreviewsofthe CoalResource
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JORCWorkshop
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AGENDA Introduction
ResourceReportingCodes anIntroduction ExplorationStages Exploration Stages ExplorationReporting p p g Conclusion
Discussion
MGEI IAGI SEMINAR, BANDUNG 56
BACKUP
57
Precision
Iwouldratherbevaguelyrightthanpreciselywrong
JohnMaynardKeynes Economist
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Precision whydoesitmatter?
Itisascientificprinciplethatprecisioninreportingshould correspondtothelevelofaccuracy. Anyestimateofwhatisthepopulationofacountrywouldnormally betothenearestonemillion.Theestimateisapproximate. Whenaskedwhendoesthemeetingstart,wesay10amwhen actuallyweknowitmaystart5or10minuteslater.Ifwereallywant themeetingtostartEXACTLYontimewewillsay10SHARPwhich th ti t t t EXACTLY ti ill 10 SHARP hi h doesimplytothenearestminute. Iftheorderofaccuracyofaresourceestimateisforexamplearound If th d f f ti t i f l d 10%or20%,itcanbemisleadingandinaccuratetoreportavery preciseresourcenumber.Investorswhomakedecisionsbasedonthe reportmaybelievethataccuracyandprecisionarerelated. report may believe that accuracy and precision are related.
MGEI IAGI SEMINAR, BANDUNG 59
EstimatingRelativeDensityforTonnageCalculations
THE PROBLEM
The relative density of coal is of course used in the estimation of coal tonnes. Density is related to the mass and the volume of a material. Relative Density is compared to water (=1). The volume and mass of a substance is determined by measuring it in air; then in water water. However coal is porous with many cracks, cleats etc; these contain water. The problem then is to take the material to be tested; then determine mass and volume, while keeping the original pore space and moisture content content.
Source: Preston 2007 MGEI IAGI SEMINAR, BANDUNG 60
LABORATORY RD
The coal is crushed; removing all the voids & cracks. Partial drying removes much of the in situ moisture. The results are then used to estimate the coal tonnes. The test is cheap; it is repeatable; and it is precise. precise However the coal samples are in a very different condition from the in situ state. Grinding and part air drying reduces both volume and mass, but volume is reduced at a greater rate rate. The tests can be used as a starting point but only if the results are corrected; if they are not corrected, the RD (and coal tonnes) is corrected TOO HIGH typically by 2 to 5%
EstimatingRelativeDensityforTonnageCalculations
ADJUSTMENT METHODS
There are several methods for estimating the In Situ relative density; these are described in more detail by Preston, 2005. One of these is Apparent Relative Density. This is a direct testing method using lump coal in water, and g p , follows an Australian Standard, AS 1038.21.2. This has problems; only lump coal can be tested; and the coal is air dried so some of the natural moisture is removed. Also the coal probably does not contain as many voids and cracks as originally.
RELEVANCE TO ESTIMATES
The errors obviously become more significant for low rank coals and also for high accuracy estimations; at the level of inferred resources, for example, the impact of this error i minor compared t i t f thi is i d to the level of uncertainty in general
EstimatingRelativeDensityforTonnageCalculations
PRESTON SANDERS METHOD
The Preston & Sanders method has now become the industry y benchmark in Australia. This uses RD as the starting point. Air dried moisture is determined. In Situ moisture is then estimated by the geologist, using other moisture test results eg as received; equilibrium moisture. g q
Whywerethesecodesdeveloped?
Source: The JORC Code (presentation by Peter Stoker, 2006) MGEI IAGI SEMINAR, BANDUNG
63 63
TheCompetentPerson
TheCompetentPersonDefinition
TheCompetentPerson
TheCompetentPerson
ACompetentPersonasdefinedundertheJORCCodemustbea MemberorFellowofarecognised professionalorganisation (ROPO) Member or Fellow of a recognised professional organisation (ROPO) withappropriateexperience. Clause10providesthat: ACompetentPersonmusthaveaminimumoffiveyearsexperience whichisrelevanttothestyleofmineralisation andtypeofdeposit underconsiderationandtothetypeofactivitywhichthatpersonis undertaking. Thehurdleofrequiredexperienceisinaccordancewiththethirdof thethreeprinciplesoftheJORCCode,iecompetence. . p p , p
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TheCompetentPerson Experience
TheJORCCodeprovidesthat If the Competent Person is preparing a report on Exploration IftheCompetentPersonispreparingareportonExploration Results,therelevantexperiencemustbeinexploration.Ifthe CompetentPersonisestimating,orsupervisingtheestimationof MineralResources,therelevantexperiencemustbeinthe , p estimation,assessmentandevaluationofMineralResources.Ifthe CompetentPersonisestimating,orsupervising,theestimationof OreReserves,therelevantexperiencemustbeintheestimation, assessment,evaluationandeconomicextractionofOreReserves Specifically,thismeansthatageologistwithmorethan5years experienceincoalresourceestimationMUSTNOTbetheCompetent Personforreserveestimation;inpractice,thatisanareafor f h f experiencedminingengineerswithskillsinmineplanningand economicevaluations.
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TheCompetentPerson Resource&ReserveReporting
Inpractice,atleasttwoCompetentPersonsareneeded 1. ThecompetentPersonwhoisresponsiblefortheResource Statement(theGeologist) 2. TheCompetentPersonwhoisresponsiblefortheReserve Statement(theMiningEngineer).
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ConsentoftheCompetentPerson
WhenacompanyissuesareportcontainingmaterialfromtheCompetent Person,theCompanymustobtaintheconsentoftheCompetentPersonas totheformandcontextinwhichtheinformationappears.Thisisrequiredby to the form and context in which the information appears This is required by Clause8. g p y p p Ifadisclosingcompanyissuesapublicreportordisclosuredocument withouthavingobtainedthewrittenconsentfromtheCompetentPerson, andthereportispotentiallymisleadinganddeceptive,theCompanymaybe suedbythosewhosuffereconomicloss.Thiscanbeusedasadefence by p theCompetentPersoninvolved. IfaCompetentPersonisusinginformationprovidedbyaCompany,hemust notacceptthatinformationblindly.Heshouldmentionthathehasnot testedtheinformationorcannotindependentlyconfirmitsaccuracy. tested the information or cannot independently confirm its accuracy
Source: Livesley, 2008: Liability of Competent Persons for JORC reports MGEI IAGI SEMINAR, BANDUNG 70
ConsentoftheCompetentPerson
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HowdoIbecomeaCompetentPerson?
TheJORCCodestatesthattheCompetentPersonmustbeamemberofa recognised ProfessionalAssociationandhave5yearsrelevantexperience.To betheCompetentPersonforresourceestimates thismustbe5years be the Competent Person for resource estimates this must be 5 years experienceinestimatingresources.Forcoal thisexperiencemustbein estimatingcoalresources. OnemethodistojointheAustralianInstituteofMining&Metallurgy.The applicationmustbesponsoredbytwocurrentmembersoftheAusIMMwho canguaranteethattheyhaveknowntheapplicantforacertaintimeperiod. Inthelongerterm,perhapsanIndonesianprofessionalassociationwill becomearecognised professionalorganisation underJORC.This organisation needsapprovalbytheAusIMM,andakeypartofthisapproval isconfirmingthattheorganisation inpracticehasamechanismandhistory is confirming that the organisation in practice has a mechanism and history ofensuringprofessionalconductofitsmembersandfordisciplining memberswhotheorganisation hasconfirmed,viaaninternalreview process,havebeenunethical.Thisisrequiredbystakeholders.TheAusIMM annuallyrequestsdocumentationfromtheROPOofanybreachesofthe annually requests documentation from the ROPO of any breaches of the JORCCodebyitsmembers.
MGEI IAGI SEMINAR, BANDUNG 72
HowdoIbecomeaCompetentPerson?
Mostcompanieshaveastrictprocessofinternalapprovalofa CompetentPersonforcompanyresourcesandreserves.Thisis Competent Person for company resources and reserves This is understandableastheroleinvolvescompanyreputationissues.An exampleoftheinternalapprovalprocess: M b hi f th A IMM MembershipoftheAusIMMorarecognised P f i i d Professional l Organisation; AcertificateconfirmingthatthepersonhasattendedaCompany approvedcourseontheJORCCode TheCandidatesigningadocumentconfirmingthatheorshehas therequiredqualificationsundertheJORCCode,andattachingaCV q q , g listingtherelevantexperience Approvalbyaseniorexecutiveofthecompany.
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