Dec '11/Jan '12

Russia adopts international reporting standards

Common code designed to boost investor confidence

By V. Heffernan


Russia has adopted international reporting standards that will smooth the way for its mining companies to list on international stock exchanges. The country joins Canada, the United States, South Africa, Australasia, Europe and Chile as a member of the Committee for Mineral Reserves International Reporting Standards (CRIRSCO), the international authority for reporting exploration results and mineral resources and reserves.

Use of the Russian code (or NAEN code) will allow Russian professional geologists to integrate with the international geological community. “Russian specialists will be able to act as Competent Persons and prepare reports on exploration results and mineral resources and reserves for raising capital and listing on major trading floors both in Russia and worldwide,” said Grigoriy Malukhin, the Russian representative for CRIRSCO.

“If you’re classifying a resource according to the Russian code, then that would be similar if not identical to a resource that is prepared under National Instrument 43-101,” said Toronto-based Deborah McCombe, CRIRSCO’s chairperson, who added that the new code will likely encourage Russian listings on the London and perhaps Toronto stock exchanges. “It gives investors confidence in Russian technical reports because the reports are prepared to a standard they are familiar with.”

CRIRSCO was established in 1994 as an informal group that evolved into a more rigorous organization as mineral exploration increasingly crossed borders. The committee’s international reporting template, which forms the basis of the Russian code, was first published in 2006. The template provides a way for countries to adopt standards that are recognized worldwide for market-related reporting and financial investment, while allowing room for country-specific regulations.

Current CRIRSCO members represent about 80 per cent of the listed capital of the global mining industry. Prospective new members include Mongolia, the Philippines and Turkey.

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