Maden İşleri Genel Müdürlüğü

Cevat GENÇ
Chairman

Accurate determination of reserves and quality of mineral resources and ore deposits requires provision of sufficient data. In other words, classification and determination of mineral resources depends heavily on the quality and quantity of relevant data.

Exploration and field studies on mineral deposits and the evaluation process relies on not only the volume and tonnage, but also physical, chemical, geological, mineralogical, technical, technological, economical, legal, environmental and social characteristics of the deposits and the combination of all data provided in an effort to accurately determine the reserves of mineral deposits. Mining Industry poses major economical risks caused by the difficulties in estimation of the quality and quantity of mineral deposits. Despite the risks involved, it has great potential for investment. Reduction of the risks involved depends mostly on scientific and technological work in every stages of the exploration.

The reporting and documentation process of all the data provided during every stages of exploration should be carried out in the accredited labs in accordance with international standards by qualified technical staff, which is or great importance, in a global world and free market economy, for engineers, planners, miners, investors and finance organizations.

Due to an increase in international trade and mining investments, an urgent need arises for the international standard classification of reserve/resource. There are currently a wide variety of classifications of reserve/resource used throughout the world (JORC, PERC etc.)

Projections and development plans based on reliable mining inventory data will give rise to sustainable development in economy and mining. Investors and enterpreneurs will have to determine their investment risks through classifications based on reliable resources. Therefore, determination and the classification of naturally occured mineral deposits are of great importance. The minimum standards for reporting and publicity of production of mineral deposits and exploration process are determined by UMREK system which has the following benefits:

  • The reliability of the data collected during mining activities and its monitoring will be provided.
  • Opportunities for domestic and foreign investors based on reliable data will be provided.
  • The evaluation, management and planning of our natural resources will be provided.
  • Accurate reporting of mining activities, development, classification of technical qualities of the staff and their training will be provided.

National Resources and Reserves Reporting Committee (Turkish Abbreviation: UMREK) was founded by amendment of Article 14 to the Mining Law 3213 by passing of the Law 6745 on the date of 20.08.2016. The working principles and procedures of the Committee was regulated by the “By-Law of the National Resources and Reserves Reporting Committee” which became effective on the date of 26.07.2017. As specified in the By-Law, the Committee consists of members from the General Directorate of Mining Affairs (MIGEM), General Directorate of Mineral Research And Exploration (MTA), Banking Regulation and Supervision Agency of Turkey (BDDK), The Banks Association of Turkey (TBB), Capital Markets Board of Turkey (SPK), Istanbul Stock Exchange (BIST), The Union of Chambers and Commodity Exchanges of Turkey (TOBB) and representatives drawn from the Turkish minerals industry and related Non-Governmental Organizations.

UMREK represents Turkey at CRIRSCO. Joining CRIRSCO (Committee for Mineral Reserves International Reporting Standards) as its latest member meant that Turkey could use the internationally recognized UMREK Code.

To have an internationally recognized code for public reporting of mineral reserves and resources for Turkey was big achievement for Turkish geology and mining sector.

The UMREK Code reporting seeks to reduce risks both for companies that plan to raise money for a project and for potential investors in the project or company. The UMREK Code had 66 clauses, one diagram, two tables, and four appendices, all based on the CRIRSCO Template. It was officially approved on April, 2018 by the 22 representatives of CRIRSCO’s 11 members. In addition to that, in accordance with the Resolution of Capital Markets Board of Turkey (SPK) dated 17.07.2003 and numbered 37/875, in the valuation services to be made in capital market the reports signed by Competent Persons, suggested by YERMAM (The Association of Geosciences, Mining and Metallurgy Professionals and certified by UMREK, will be taken as basis in the reporting and valuation of the mineral exploration results, mineral resource and mineral reserve. Besides, Banking Regulation and Supervision Agency (BDDK) establishes that without prejudice to the paragraph 3 of Article 4 of Regulation on Authorization and Activities of Institutions which will provide valuation services to banks and the provisions of other applicable law, in the assessment of loan process made by the member banks of your association, it would be useful to consider reports prepared by the ones who will be authorized by National Resources and Reserves Reportıng Commıttee (UMREK) that established for reporting of search and operation functions in mine sites in accordance with international standards and making these reports accurate, reliable and transparent. In short, the resolutions demonstrates the broad support of the stock exchange, banking community and the mining sector.

CRIRSCO (Committee For Mineral Reserves International Reporting Standards) is the umbrella organisation for the promotion of the best practice in reporting Exploration Results, Mineral Resources and Mineral Reserves on a global basis. The current members of CRIRSCO are JORC (Australia), CIM (Canada), SME (USA), SAMREC (South Africa), Comison Minera (Chile), PERC (Europe), NAEN (Russia), Indonesia (KOMBERS), CBRR (Brazil), KAZRC (Kazakhstan) and MPIGM (Mongolia). The current chairperson of CRIRSCO is Neil WELLS. CRIRSCO membership growth continues, and as of May 2018, Turkey has been accepted as an official member to CRIRSCO.

The aim of CRIRSCO (Committee for Mineral Reserves International Reporting Standards) is to contribute to earning and maintaining trust by promoting high standards of reporting of mineral deposit estimates (Mineral Resources and Mineral Reserves) and of exploration progress (Exploration Results).