The Need for Accurate and Credible Reports
The basis for external investors or internal mining companies to provide funds is the status of resources and reserves that reflect investors’ expectations and confidence in the possible return on investment and asset growth. In order for investors to make balanced and balanced decisions in the context of provision of funds or investment, the status of resources and reserves must be based on accurate and credible reporting.
The public reporting guidelines for mineral exploration, resources, and reserves (hereinafter referred to as Guides) have been implemented successfully in Australia, Indonesian, South Africa and the USA for a long time.
Stock exchanges in these countries have long since enforced the Guidelines as part of the mine’s share listing regulation, as it is believed to be able to guarantee an accurate and credible report to protect the interests of investors and stakeholders. The guidelines have also become a reference for finance and banking.
The JORC and KCMI Codes set out minimum standards, recommendations and Guidelines for Public Reporting of Exploration Results, Resource and Reserve Assessments.
KCMI Reports are used by stakeholders, investors and financial institutions to gain various levels of confidence in mineral deposit reporting.
This new code issuance is to coincide with KCMI’s reception as the eleventh member of the CRIRSCO (Committee for Mineral Reserves International Reporting Standards)
– KCMI 2017 (Kode Komite Cadangan Mineral Indeonesia)
– SNI 4726:2011 / SNI 5051:2011 (Standar Nasional Indonesia)
– JORC (Joint Ore Reserve Commite)
– USGS (United State Geological Survey)
is a professional code used as a guideline for Public Reporting on Results, Resources and Reserves for mineral and coal exploration
The principle of Materiality Competency Transparency
Reporting referring to KCMI/JORC Code and other Guides that have been successfully implemented in that world are based on the Transparency – Materiality – Competence Platform, which can be explained as follows:
1.Transparency Principle Requires that in order to understand the report, the reader of the Public Report is treated with sufficient information with a clear presentation and does not provide a confusing understanding, and the report reader is not misled.
2. Materiality Requiring the Public Report contains all relevant information reasonably required by the investor and his professional advisor; as well as the information is expected to be in the reporting; in order to make the right and balanced decision related to the Exploration Results, Mineral Resources or Ore Reserve reported.
3. Competent Requires that the preparation of a Public Report based on the work that can be accounted for by someone who has the right expertise and experience, and is bound by the code of ethics and organizational rules that overshadow it.
With the application of the Transparency – Materiality – Competent Platform, it is expected that an accurate and credible report on the Exploration Results, Mineral Resources or ‘KCMI/JORC’ ore reserves can be realized.