Mining Industry Standards – How Bre-X Changed the International Reporting Standards for Mineral Resources

In the mid-1990s, the biggest scandal of all time in the mining industry shook public confidence and negatively impacted the industry’s capacity to raise capital. Bre-X reported a mineral resource of 70,000,000 troy ounces of gold which was subsequently found to be a fraudulent claim. (Detailed information about the Bre-X scandal can be found on: http://en.wikipedia.org/wiki/Bre-X.) Suddenly there was an urgent need for determining specific international mining industry standards in order to minimize the risk of a future scandal.

In response, the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) developed the CIM Definition Standards on mineral resources & mineral reserves by reference in National Instrument 43-101 (NI 43-101), so that all estimates of mineral resources and reserves that are publicly disclosed in Canada must use these CIM Definition Standards.

The Committee for Mineral Reserves International Reporting Standards (CRIRSCO) aims to promote high standards for international public reporting of exploration results like the NI 43-101 of Canada. The members are:

Members of The Committee for Mineral Reserves International Reporting Standards
(CRIRSCO)

Country  Institute  International Reporting Standards 
Canada  Canadian Institute of Mining, Metallurgy and Petroleum  National Instrument 43-101 (NI 43-101) 
Australia  Joint Ore Reserves Committee  JORC 
United States  Society for Mining, Metallurgy and Exploration  SME 
South Africa  South Africa Mineral Resource Committee  SAMREC 
Chile  Institute of Mining Engineers of Chile  IMEC 
Western Europe  Pan-European Reserves Reporting Committee  PERC 
United Kingdom  Institute of Materials, Minerals & Mining  IMMM 

The most frequently used international reporting standard for mineral reserves is Canada’s NI 43-101. The complete report: National Instrument 43-101: Standards of Disclosure for Mineral Projects can be found by clicking here.


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