Welcome to CRIRSCO website

Dear Visitor,

Welcome to the CRIRSCO web site.

The mining industry is a vital contributor to national and global economies. It is a truly international business that depends on the trust and confidence of investors and other stakeholders for its financial and operational wellbeing. Unlike many other industries, it is based on assets - mineral deposits - the knowledge of which is imperfect prior to the commencement of extraction. It is therefore essential that the industry communicates the risks associated with investment effectively and transparently in order to earn the level of trust necessary to underpin its activities.

The aim of CRIRSCO (Committee for Mineral Reserves International Reporting Standards) is to contribute to earning and maintaining that trust by promoting high standards of reporting of mineral deposit estimates (Mineral Resources and Mineral Reserves) and of exploration progress (Exploration Results).

CRIRSCO was formed in 1994 and for much of its life was an informal alliance of National Reporting Organisations (NROs) in participating countries (see “Background to CRIRSCO”). With the rapid increase in international activity associated with the mining industry in recent years, CRIRSCO has evolved to become a more rigorously constituted committee. It is recognised by global organisations such as the International Accounting Standards Board  (IASB) , the United Nations Economic Commission for Europe  (UNECE)  and the International Council on Mining and Metals  (ICMM) , as the key international organisation representing the mining industry on issues relating to the classification and reporting of mineral assets.

CRIRSCO is currently involved in a number of initiatives which will impact on the future of the mining industry (see “Current CRIRSCO Activities”). It has also published on this web site the first edition of the CRIRSCO International Reporting Template (see “Template”). This is a document that represents the best of the CRIRSCO-style codes, reporting standards that are recognised and adopted world-wide for market-related reporting and financial investment. It is available free of charge for any country wishing to develop its own CRIRSCO-type reporting standard, and will be kept up to date to reflect new national or international developments .  The CRIRSCO Template is also the basis for discussions with organisations including the IASB on standardising the approach of the extractive industries (oil, gas and solid minerals) to resource and reserve definition for financial accounting purposes. 

CRIRSCO exists because of the dedication of hard-working volunteers in NROs and the organisations that support the NROs. These are listed in “Useful Links” and we take this opportunity to express our deep gratitude for their support. We would encourage anyone interested in the important field of classification and reporting of mineral assets to support, and participate through, these organisations.

Thank you.

Niall Weatherstone
Chairman
CRIRSCO

Background to CRIRSCO

CRIRSCO, which was formed in 1994 under the auspices of the Council of Mining and Metallurgical Institutes (CMMI), is a grouping of representatives of organisations that are responsible for developing mineral reporting codes and guidelines in Australia (JORC), Chile (National Committee), Canada (CIM), South Africa (SAMREC), the USA (SME), UK (National Committee) and Western Europe (IGI and EFG). The combined value of mining companies listed on the stock exchanges of these countries accounts for more than 80% of the listed capital of the mining industry.

The international initiative to standardise market-related reporting definitions for mineral resources and mineral reserves had its start at the 15th CMMI Congress at Sun City, South Africa in 1994. The mineral definitions working group (later called CRIRSCO) was formed after a meeting at that Congress, and was made up of representatives from the countries listed above (except for Chile, which joined later), with the primary objective of developing a set of international standard definitions for the reporting of mineral resources and mineral reserves.

In 1997, the five participants reached agreement (the Denver Accord) for the definitions of the two major categories, Mineral Resources and Mineral Reserves, and their respective sub-categories Measured, Indicated and Inferred Mineral Resources, and Proved and Probable Mineral Reserves.

In 1999, agreement was reached with the United Nations Economic Commission for Europe (UN-ECE), which had, since 1992, been developing an International Framework Classification for Mineral Reserves and Resources (UNFC), to incorporate into the UNFC the CMMI-CRIRSCO resource / reserve definitions for those categories that were common to both systems. This agreement gave true international status to the CMMI-CRIRSCO definitions.

Following these agreements, an updated version of the JORC Code was released in Australia in 1999 (and more recently, in 2005), followed by similar codes and guidelines in South Africa, USA, Canada, UK / Ireland / W Europe, Chile and Peru. The JORC Code (Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists, and Minerals Council of Australia) has played a crucial role in initiating the development of standards definitions for these codes and guidelines.

The similarity of the various national reporting codes and guidelines has enabled CRIRSCO to develop an International Minerals Reporting Code Template, which is available on this web site. This can act as a "core code and guidelines" for any country wishing to adopt its own CRIRSCO-style reporting standard, after including provisions for country-specific requirements such as those of a legal and investment regulatory nature.

Current CRIRSCO Activities

The International Reporting Template

The CRIRSCO Template, now published on this web site, is intended to be a guideline for countries newly developing their own reporting standards, and a benchmark for comparison with other international reporting systems, including the UNFC and the Society of Petroleum Engineers (SPE) Guidelines. It is not intended as a replacement for existing well-established national reporting standards.

As each new or updated national reporting standard is developed, it is reviewed by the other members of CRIRSCO in cooperation with the particular national reporting committee, to ensure that it continues to maintain compatibility with other standards. Just as importantly, improvements introduced by the most recent standard can be captured and built into the Template. This rolling process of comparison with previous standards and upgrading by international consensus is highly effective and ensures that changes are kept to a sensible minimum and that the most recent standard is generally seen as ‘best practice’.

Alignment with the United Nations Framework Classification

Although agreement was reached with the UN-ECE in 1999 to incorporate CRIRSCO definitions into the UNFC for those categories of resources and reserves used for market-related reporting, an updated UNFC produced in 2003 with input from the hydrocarbon industry failed to recognise the differences between the hydrocarbon and solid mineral industries in the way they report resources and reserves. As a result the updated UNFC does not serve the minerals industry well. In response, CRIRSCO has re-engaged with the UNECE, and has committed to lead efforts to produce definitions and guidelines based on the CRIRSCO Template that are compatible with the needs of the users of the UNFC. The main effort of this exercise is scheduled to be concluded by October 2006.

While few individual companies report their resources and reserves using the UNFC, the system is accepted as a basis for reporting by some governments, including those of Russia, China and India. The relevance of these countries to future mining developments including stock exchange listings is clear and CRIRSCO is working to promote the use of consistent and readily understood definitions and guidelines in these countries.

International Financial Reporting Standards for the Extractive Industries

During 2005, CRIRSCO was involved in discussions with the International Accounting Standards Board (IASB), which is developing a new Accounting Standard for the Extractive Industries as part of its International Financial Reporting Standards (IFRS). The current phase of the development involves a review by the IASB of existing resource and reserve definitions for hydrocarbons and solid minerals. The hydrocarbon industry, through the Society of Petroleum Engineers (SPE), has been similarly involved.

The ‘rules’ whereby the major assets of an exploration or mining company, its mineral resources and reserves, are used for example in depreciation and impairment are obviously highly relevant to the companies concerned. With the general global acceptance of IFRS, CRIRSCO believes it is increasingly important to engage with regulators such as the IASB to ensure that the eventual standards do not disadvantage mining companies or render ineffective the various current national reporting standards.

Convergence of Definitions between the Hydrocarbon and Solid Minerals Industries

Arising from discussions with the UNECE and IASB it is clear that there is a perception outside the extractive industries that the hydrocarbon and solid minerals sectors are essentially the same and that resource and reserve definitions should be compatible.

CRIRSCO is participating in discussions with each organisation to demonstrate the similarities, and considerable differences, between reporting systems in the two industries. Contact has been established with the SPE Oil and Gas Reserves Committee with a view to examining the extent to which convergence of definitions might be possible. While no guarantees have been offered, this exercise, which has started with the ‘mapping’ of the SPE Guidelines to the CRIRSCO Template, is commended by both the UNECE and IASB and is similarly timed to be completed around October 2006 .

Future Structure of CRIRSCO

In recent years, CRIRSCO’s activities have taken on a broader dimension than was envisaged when it was formed, involving discussions with regulators and other authorities outside the mining industry, such as the United Nations, the International Accounting Standards Board and the Society of Petroleum Engineers. CRIRSCO currently consists of a small group of highly experienced and dedicated volunteers and it has been possible, until now, to manage CRIRSCO affairs with this limited number of committee members and some financial assistance from its sponsoring organisations, which have primarily been professional bodies. With the increasing breadth and intensity of its activities, this is no longer the case.

CRIRSCO is taking steps to establish itself on a firmer footing with respect to human and financial resources, sponsoring organisations and a revised mandate. This involves production of Terms of Reference, a work plan and budget, identifying stakeholder groups and developing appropriate mechanisms for providing funding to Committee members. This reorganisation will ensure that CRIRSCO is structured, and has the resources and mandate needed, to meet future challenges.

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