Up & Coming Geoscientists - a sample of our AIG Honours Bursary Recipients

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Valmin Code Changes VALMIN CODE 2015: What has changed and why? Jonathan Bell and Louis Rozman Disclaimer: The content of this article contains the personal views of two individuals and does not constitute advice nor represent the official view of the VALMIN Committee. For details on specific issues refer to the VALMIN Code 2015 or contact the VALMIN Committee. Members of the Australian Institute of Geoscientists (AIG) and Australasian Institute of Mining and Metallurgy (AusIMM) are bound to three codes, namely the Code of Ethics, JORC Code and VALMIN Code. On 13 January 2016, the VALMIN Code (2015 Edition) was officially released and on 30 January 2016, it became effective. The VALMIN Code (2005 Edition) remains in effect until 30 June 2016, and until 30 June 2016 either the VALMIN Code (2005 Edition) or the VALMIN Code (2015 Edition) can be used. From 1 July 2016 it will be mandatory to use the VALMIN Code (2015 Edition). This article outlines the extensive review process and highlights key changes to the new VALMIN Code (2015 Edition). The VALMIN Code is a companion to the JORC Code which addresses both the technical assessment and valuation of mineral assets. The VALMIN Code also provides guidance for assessment and valuation of petroleum assets. The VALMIN Code’s first incarnation was in July 1995, with updates released in April 1998, April 2005 and now, January 2016. The most notable changes in the latest version of the Code are that: 1 it no longer mandates the principle of Independence. This brings the Code into alignment with the three principles of the JORC Code, namely Competence, Materiality and Transparency; 2 the requirements of Technical Assessments are separated from the requirements of Valuation Reports; this allows for a more succinct document that reflects its dual purpose; 3 the terms and definitions are in greater alignment to those of the JORC Code, Australian Securities and Investments Commission (ASIC) and the International Valuation Standards (IVS); 4 it provides guidance on additional reporting requirements, such as the Peter Komyshan BSc (HonS), MAuSIMM, MAIG Consultant GeoloG ist ▲ Corporate Advice ▲ Project and Target Generation ▲ Project Management Omap Pty Ltd (ACN 154 607 977) Perth Western Australia Mobile (+61) 414 918 515 ▲ Telephone (+61) 8 9447 1142 Email: omap@iinet.net.au Corporations Act, ASIC’s regulatory guidelines, the Australian Securities Exchange (ASX) listing rules; and 5 petroleum technical assessments and valuations can use the VALMIN Code as guidance, but it is not mandatory. 38 AIG NEWS Issue 123 · February 2016
“ Arguably the biggest change to the VALMIN Code is the removal of the principle of Independence.” The changing Australian regulatory new committee member, with each working framework surrounding the VALMIN group focussed on a set section of the draft Code necessitated additional stakeholder code. The intent of this process was to share consultation and resulted in delays to the knowledge and provide fresh perspectives Valmin Code Changes © ingimage.com These changes are the result of a review process that began in 2010 with the VALMIN Committee undertaking an extensive stakeholder consultation process. Initially, this involved interviews with a cross-section of stakeholders to determine what were issues that needed to be addressed and improvements that could be made. Having gained an insight into stakeholder perceptions, seminars were run in Perth in October 2011 and a second seminar held in Brisbane in April 2012. These seminars served to raise the awareness of the VALMIN Code’s review process and gain additional feedback. The VALMIN review process coincided with a period when a number of significant changes in regulatory reporting had also come into effect, such as: • ASIC Regulatory Guide 111 (Content of Expert Reports) and 112 RG112 (Independence of Experts) which were released on 1 March 2011; and • Finalisation of the draft edition of the 2012 edition of the JORC Code and the corresponding ASX Listing Rules (Chapter 5). process. The initial draft was circulated in November 2013 to key stakeholders comprising of AIG, AusIMM, MCA , ASX, ASIC, PESA and key industry practitioners. Extensive suggestions and comments on this draft were received by April 2014, but unfortunately it took until late 2014 to get the necessary feedback from all the stakeholders. Having incorporated the comments from the regulators, a public exposure draft was released for comment in April 2015. To assist in putting the proposed changes to the VALMIN Code into context and to collate further feedback, an exposure draft webinar was held in June 2015 prior to the closure of the public consultation process on 17 July 2015. In recognition of the increasing workload due to the public submissions and subsequent marketing, the VALMIN Committee was expanded from seven to twelve members. In selecting the new members, an emphasis was placed on diversifying the skill and experience base of the committee. This expansion allowed the VALMIN Committee to benefit from insights from regulatory, legal, JORC Code and international perspectives. The public consultation submissions were allocated to small working groups comprised of at least one existing and one on the code. In December 2015 following engagement with the regulators on the penultimate draft, the AIG and AusIMM parent bodies of the VALMIN Code gave their approval and the finalised document was publicly released on 13 January 2016. A side-by-side comparison between the VALMIN Code (2005 Edition) and VALMIN Code (2015 Edition) is difficult due to the reorganisation of the document. The VALMIN Code now separates technical assessments and valuations into distinct sections. This structure makes the document more readable, easier to follow and more concise for practitioners only wanting to read the requirements of a technical assessment. Arguably the biggest change to the VALMIN Code is the removal of the principle of Independence. This former requirement resulted in the VALMIN Code becoming a code that was exclusively applied to consultants. The effect of removing the Independence principles is that it allows the author of a report to be an employee of the commissioning entity, as is the case with the JORC Code. The author(s) are still required to be reasonable and objective, and the Corporations Act, as discussed in ASIC RG111, outlines when there is a need to be independent. AIG NEWS Issue 123 · February 2016 39
Page 1 and 2: AIG News • No 123 • February 20
Page 3 and 4: Inside this AIG news... 4 From Your
Page 5 and 6: Queensland Minister for Natural Res
Page 7 and 8: 3 Institute News Snippets NORTHERN
Page 9 and 10: Making a Difference in Geoscience E
Page 11 and 12: “ SMEDG meetings are held on the
Page 13 and 14: EDU Education Report Kaylene Camuti
Page 15 and 16: Geoscientist Employment in Australi
Page 17 and 18: Latest Employment Survey Unemployed
Page 19 and 20: Latest Employment Survey “There a
Page 21 and 22: copper deposit in which small incre
Page 23 and 24: Keep up to date with AIG and other
Page 25 and 26: Detailed seismic mapping of the Eps
Page 27 and 28: The host rock and ladder dyke have
Page 29 and 30: NORTHERN TERRITORY GEOLOGICAL SURVE
Page 31 and 32: The Peoples Hydrogeological Wonder
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Page 37: Some Final Thoughts The topic of in
Page 41 and 42: ENJOY YOUR NEW MEMBER BENEFITS PROG
Page 43 and 44: “ Could geologists be this biased
Page 45 and 46: “ The bell curve indicates that 9
Page 47 and 48: The Fold Experiment - Geologists Bi
Page 49 and 50: Events calendar Keep up to date wit

Up & Coming Geoscientists - a sample of our AIG Honours Bursary Recipients

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