The Resource and Reserve Reporting Challenge for a Global Mining Company

There are significant Mineral Resource and Reserve reporting challenges facing a mining company operating in the global arena. This paper specifically examines the Mineral Resource and Reserve reporting challenge facing BHP Billiton. The changing regulatory environment creates a significant challenge for global mining companies when reporting Mineral Resources and Reserves. The development and implementation of internal policies and standards for collecting and collating resource and reserve information is required for corporate governance, however the challenge is then to report this information publicly in such a way as to comply with the various codes and requirements in the many jurisdictions in which the company is required to report. The move to an International Code is not only desirable but is an essential requirement in todayÆs global market. The agreement to report using a single code internationally is however only the first step. A truly practical international reporting system must have common definitions and guidelines for interpretation as well as an international approach to the definition of a Competent Person, and even more importantly a common acceptance of that code by the relevant investment regulatory bodies. Without the universal acceptance of the concept of an international reporting code by the major regulatory bodies, implementation of such a code will be limited. With the major global mining companies seeking to raise capital in the USA, the worldÆs largest capital market, the Securities and Exchange Commission (SEC) and its approach to reserve reporting is becoming increasingly important. The development and implementation of an International Code must gain the support and acceptance of the SEC if it is to be successful.