Professional Documents
Culture Documents
2003 EDITION
PREPARED BY THE COALFIELDS GEOLOGY COUNCIL OF NEW SOUTH WALES AND THE
QUEENSLAND MINING COUNCIL
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AUSTRALIAN visit
GUIDELINES FOR http://www.jorc.org/library.asp
THE ESTIMATING AND REPORTING OF
INVENTORY COAL, COAL RESOURCES AND COAL RESERVES
1.Preface 3
2.Scope 3
3.Definitions 3
4.Estimation and Documentation of Inventory Coal and Coal Resources 5
5.Estimation and Documentation of Coal Reserves 6
6.Future Reviews 7
7.Diagram 1 : Relationship Between Inventory Coal, Coal Resources and Coal Reserves 8
2
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1 1.1 Prior to September 1999 the estimating and experience in the relevant coal industry activity. If the
reporting of Coal Resources and Coal Reserves in Estimator is estimating or supervising the estimation of
Australia were prescribed by the "Australian Code Inventory Coal and/or Coal Resources, the relevant
for Reporting Identified Coal Resources and experience must be in the estimation, assessment and
Reserves (February 1986)". This code was ratified evaluation of Inventory Coal and/or Coal Resources.
by the Government Geologists Conference in April If the Estimator is estimating or supervising the
1986 and appended to the "Australasian Code for estimation of Coal Reserves, the relevant experience
Reporting of Identified Mineral Resources and Ore must be in the estimation, assessment, evaluation and
Reserves" (the Joint Ore Reserve Committee or economic extraction of Coal Reserves. In reporting for
JORC Code) in February 1989; and subsequently in statutory purposes, it is the Estimators responsibility
the revised JORC Code (July 1996). The JORC to comply with any special conditions or requirements
Code was further revised and reissued in of relevant State Government.
September 1999 under the title of the "Australasian To sign off on Public Reports in accordance with the
Code for Reporting of Mineral Resources and Ore Code (i.e. reports prepared for the purpose of informing
Reserves". The 1999 JORC Code, herein referred investors or potential investors and their advisers), an
to as the Code, provides minimum standards for Estimator must qualify as a Competent Person under
public reporting to the investment community. the Code and ensure that all requirements of the Code
1.2 The Code is currently being reviewed. The new are satisfied.
version of the Code is expected to be ratified and 3.2 Points of Observation are intersections of coal-
issued in 2003. The Australian Guidelines for the bearing strata, at known locations, which provide
Estimating and Reporting of Inventory Coal, Coal information, to varying degrees of confidence, about the
Resources and Coal Reserves, herein referred to coal by observation, measurement and/or testing of the
as the Guidelines, will be referred to in the new following: surface or underground exposures, bore
Code, and will be reviewed and re-issued when the cores, downhole geophysical logs and/or drill cuttings in
new Code is released, to ensure consistency non-cored boreholes. Points of Observation shall
between the two documents. allow the presence of coal to be unambiguously
1.3 Adherence to the processes and procedures determined. Points of Observation for coal quantity
outlined in the Guidelines is not considered estimation may not necessarily be used for coal quality
compulsory, but is strongly recommended. Some of evaluation. A Point of Observation for coal quality
the wording in the Guidelines has been copied from evaluation is normally obtained by testing samples
the Code and the reader should note that obtained from surface or underground exposures, or
requirements of the Code are mandatory if an from bore core samples having an acceptable level of
estimate is to be compliant with the Code. recovery (normally >95 per cent linear recovery).
3.3 Interpretive Data are observations supporting the
existence of coal, gathered by interpretive or indirect
Scope 2 The Guidelines are broad in nature to accommodate methods. Interpretive Data may include results from
the wide variation of Australian coal deposits, in mapping, seismic, magnetic, gravity and other
terms of rank, quality and geological environment. geophysical and geological surveys, but should not be
The scope of this document is to: - used to estimate coal quantity or quality. A company,
when reporting Interpretive Data, shall state the
n Outline the methodology, reflecting best technical basis of the interpretation. Interpretive Data
industrypractice, that should be followed when may be used in conjunction with Points of
estimating the quantity and quality of Inventory Observation to improve confidence levels.
Coal, Coal Resources and Coal Reserves
3.4 Exploration Results are reports of coal
n Provide guidelines for reporting to government occurrences that, due to insufficient information, cannot
and other non-public organisations; and be assigned specific tonnages or quality.
n Provide guidelines for preparing supporting 3.5 Inventory Coal is any occurrence of coal in the
technical documents. ground that can be estimated and reported without
Italicised explanatory notes are provided in the necessarily being constrained by economic potential,
Guidelines to provide a clearer understanding of geological or other modifying factors. By definition, it
their intent. Where these notes occur they are includes all Coal Resources. The location, quantity,
indented and written in a slightly smaller italicised quality, geological characteristics and continuity of
font, as illustrated in this example. Inventory Coal are known, estimated or interpreted
from specific geological evidence and knowledge.
Definitions 3 3.1 An Estimator is a person responsible for the
estimation of Inventory Coal, Coal Resources
2 and/or Coal Reserves. The Estimator should have
tertiary qualifications in geology or mining
engineering and must have a minimum of five years
3
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of increasing as: mining methods, beneficiation, and economic,
geological confidence into Inferred, Indicated and marketing, legal, environmental, social and
Measured categories. governmental factors. These assessments should
demonstrate that at the time of reporting, economic
Inventory Coal is a new term that enables a more
extraction could reasonably be justified. Coal
complete estimate of coal in ground to be reported
Reserves are subdivided in order of increasing
for Government or internal company purposes.
confidence into Probable Coal Reserves and Proved
Inventory Coal is a category of coal not recognised
Coal Reserves.
by the Code.
3.8 Marketable Coal Reserves are the tonnages of
Inventory Coal falls outside the ambit of the Code
coal, at specified moisture and quality, available for sale
as it is not constrained by the phrase reasonable
after beneficiation of Coal Reserves. Marketable
prospects for eventual economic extraction. used in
Coal Reserves may be reported in conjunction with,
the Code to define the term Coal Resource. The
but not instead of, reports of Coal Reserves. If the
category of Inventory Coal enables the
coal is to be marketed without any beneficiation,
quantification and reporting of coal which, in the
Marketable Coal Reserves may be the same as the
opinion of the Estimator (at the time the estimate
Coal Reserves. The basis of the predicted yield to
was made), has potential significance, but may not
achieve Marketable Coal Reserves should be stated,
have potential for economic development in the
particularly whether the yields and ash values are from
foreseeable future.
laboratory float/sink results, or if they are practical
The category also serves another important function results that take the planned beneficiation process into
by enabling the reporting of coal tonnage and grade consideration, or if they are reconciled historical data
estimates in non-public reports to government from an operating mine. Marketable Coal Reserves
departments and other statutory authorities where should be reported in terms of Probable Marketable
the primary focus of the estimation and reporting is Coal Reserves or Proved Marketable Coal
not only for statutory compliance purposes but also Reserves.
to provide the basis for establishing an inventory
3.9 Confidence Categories for Inventory Coal and
that may be used for land use or strategic planning
Coal Resources
purposes.
3.9.1 Inferred Inventory Coal or an Inferred Coal
While the Estimator has ultimate discretion
Resource is that part of the total Inventory Coal or
regarding the coal included in this category, minor
Coal Resource estimate for which quantity and quality
coal occurrences should be excluded. Examples of
can only be estimated with low levels of confidence.
Inventory Coal estimates may include coal: that is
The quantity and quality are inferred using Points of
not accessible for mining because of land access
Observation that may be supported by Interpretive
restrictions (e.g. proposed or gazetted national
Data. Estimates for this confidence category are likely
parks); that is alienated because of infrastructure or
to change significantly with further exploration.
urbanisation; that is compromised because of
technical feasibility issues (e.g. too deep, too steeply 3.9.2 Indicated Inventory Coal or an Indicated Coal
dipping, too thin etc.); or perhaps that is in an Resource is that part of the total Inventory Coal or
extremely remote area devoid of any infrastructure Coal Resource for which quantity and quality can be
and where potential development in a reasonable estimated with reasonable levels of confidence, based
timeframe may be difficult to justify. on information gathered from Points of Observation
that may be supported by Interpretive Data. The
3.6 A Coal Resource is that portion of a deposit in
Points of Observation are sufficient for continuity to
such form and quantity that there are reasonable
be assumed; but are too widely or inappropriately
prospects for eventual economic extraction. The
spaced to confirm geological and/or quality continuity.
location, quantity, quality, geological characteristics
and continuity of a Coal Resource are known, 3.9.3 Measured Inventory Coal or a Measured
estimated or interpreted from specific geological Coal Resource is that part of the total Inventory Coal
evidence and knowledge. Coal Resources are or Coal Resource for which quantity and quality can be
subdivided, in order of increasing geological estimated with a high level of confidence, based on
confidence, into Inferred, Indicated and Measured information gathered from Points of Observation that
categories. may be supported by Interpretive Data. The Points
of Observation are spaced closely enough to confirm
3.7 A Coal Reserve is the economically mineable
geological and/or quality continuity.
part of a Measured or Indicated Coal Resource.
Coal Reserve estimates include diluting materials 3.10 Confidence Categories for Coal Reserves
and are adjusted for losses that may occur when the
3.10.1 A Probable Coal Reserve is the economically
coal is mined. Appropriate assessments, which may
mineable part of an Indicated Coal Resource. It can
include feasibility studies, have been carried out.
also be the economically mineable part of a Measured
These assessments should include proper
Coal Resource if the modifying factors (referred to in
consideration of all relevant modifying factors such
5
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edition whether the(2014),
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is resource report is JORC compliant
inclusive of, or additional to the Coal Resources. A
n The name, qualifications and experience of the
resource report including Inventory Coal would not be
Estimator and the relationship of the
JORC compliant for public reporting.
Estimator with the tenure holder(s) and/or
4.8 Notwithstanding all of the above, it is the operators
responsibility of the Estimator to determine and justify
n The date of the estimate.
the Inventory Coal and/or Coal Resource categories
for any given deposit. The Estimator should prepare a Estimation and Documentation 5
technical document that fully describes the estimation
process and assumptions used. The document should of Coal Reserves
include: 5.1 Coal Reserves can only be derived from Indicated
n Project/deposit name and/or Measured Resources contained within a mine
plan. They represent the tonnages of coal, at specified
n Status of tenure over the Inventory Coal or moisture, expected to be mined and delivered as run of
Coal Resources being reported mine (ROM) coal.
n Tenure holder(s) and/or operators 5.2 In estimating Coal Reserves, mining recovery and
n Outline of the geology of the area mining dilution must be applied to the Coal Resources.
Adjustments for changes in moisture are also strongly
n Summary of the status of the database and the recommended. Mining recovery and dilution may be
geological model used and the steps taken by expressed in terms of specific coal losses and/or
the Estimator to validate them dilution for each seam or, alternatively, as a percentage
n Outline of the estimation methodology including mining recovery. Unless a specific factor has been
the criteria used to differentiate between determined from conceptual studies, the historically
Inventory Coal and Coal Resources proven mining recovery and dilution for the proposed
mining method in the particular area should be used.
n An explanation of how the confidence The Estimator should report and justify the mining
categories were defined recovery and dilution factors used.
n Plans and cross-sections for each seam or 5.3 Coal Reserves must be reported separately for
seam grouping at appropriate scales, those parts of deposits mineable by surface and
showing: underground methods.
tenures, the location and areal extent of each 5.4 Marketable Coal Reserves are estimated by
confidence category, including the boundary applying the predicted yield and product moisture
between open cut and underground (if factors to the Coal Reserves. They should be reported
applicable), the factors used to limit the by broad product type; for example, coking, PCI or
estimates, the Points of Observation (with thermal.
thecoal quality holes for that seam clearly
differentiated) and any Interpretive Data on 5.5 Estimates of Coal Reserves must clearly state all
which the resource estimates for that seam factors used in the estimation, including: the Coal
were based. Resource estimates, proposed mining methods, the
modifying factors limiting mining, allowances for mining
n Tables of the estimates displaying: loss and dilution, and moisture adjustment factors (if
tenures, confidence categories, areas used in applied). For Marketable Coal Reserves, if reported,
the estimates, seam thickness ranges, in situ the predicted quality, yield and basis for predicting the
densities, depth ranges and coal quality yield should be stated. Tonnage estimates of Coal
ranges relevant to the estimate for each seam Reserves should be rounded, commensurate with the
or seam grouping. Reference should also be precision of the estimate.
made to the probable mining method.
5.6 Where estimates of Coal Resources and Coal
n The moisture basis of the estimate(s) and the Reserves are presented together, a clarifying
moisture adjustment factor (if applied) statement must be included in the report that clearly
n A description of all factors used to limit the states whether the Coal Resources are inclusive of, or
estimate(s) additional to, the Coal Reserves.
n A comparison of the estimate(s) with previous 5.7 The choice of the appropriate category of Coal
estimates prepared for the deposit Reserve is determined primarily by the confidence level
of the corresponding Coal Resource and must be
n A comparison of the estimate(s) with current made by the Estimator. In the case of a Measured
estimates prepared by alternative methods or Resource the uncertainties in any modifying factor(s)
during the process of peer review may result in a Probable confidence level being
n A declaration as to whether or not the applied to the Coal Reserve. The Estimator should
7
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