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United Nations Framework Classification (UNFC) and its Application to Minerals Presented by Charlotte Griffiths (UNECE) and John Barry (Rathdowney Resources Ltd) International Conference EU 2020 Strategy in Mineral Commodities Management Warsaw 19-20 September 2011 Warsaw September 2011 UNFC Why is the UN involved? What is it? Brief history How it works Application to Minerals and Relationship with the CRIRSCO Template United Nations Regions ECE ESCWA ECA ECLAC ESCAP Warsaw September 2011 United Nations Economic Commission for Europe Five UN Regional Commissions UNECE: EU, non-EU Western and Eastern Europe, South-East Europe, CIS, and North America Based in Geneva, 56 Governments Mission to foster sustained economic growth and cooperation among member countries Policy analysis, development of norms, standards, regulations and conventions, and technical assistance Key focus: economic cooperation & integration, environmental policy, housing & land management, statistics, sustainable energy, technical cooperation, forestry & timber, trade and transport Warsaw September 2011 Why is the UN involved? Sustainable energy development: effective and efficient resource management Here to serve; respond to needs of Member States Neutral platform, convening power UN Regional Commissions can service global projects – UNFC is global (ECOSOC Decision 2004/233) UNECE structured to ensure its activities are conducted through open and transparent process, with no formal limitations on participation Expert Group on Resource Classification – multistakeholder dialogue, “unprecedented level of cooperation” UNFC is a voluntary system Warsaw September 2011 UNFC 2009 United Nations Framework Classification for Fossil Energy and Mineral Reserves and Resources Generic, principles-based system - Applicable to solid minerals and fluids (coal etc, uranium, oil, gas) - Language-independent numerical coding system - A key goal is to provide a tool to facilitate global communications UNFC is a three dimensional system – quantities classified based on three criteria: Economic and social viability Field project status and feasibility Geological knowledge 6 Warsaw September 2011 UNFC 2009 – Three Criteria Economic and social viability (E axis) Field project status and feasibility (F axis) Geological knowledge (G axis) Combinations of criteria create 3-D system Warsaw September 2011 UNFC 2009 – the System 8 Warsaw September 2011 UNFC History 1992 • Started development of system 1997 • UNFC for solid fuels and mineral commodities published 2004 • UNFC extended to cover oil, natural gas and uranium Warsaw September 2011 UNFC History (cont) 2007 • Mapped UNFC-2004 to CRIRSCO Template and PRMS 2007 • Proposed simplification and minor changes to ensure harmonization 2008 • Published draft version for public comment 2009 – UNFC 2009 Approved Warsaw September 2011 UNFC 2009 – How it Works E axis category definitions Category Definition E1 Extraction and sale has been confirmed to be economically viable. E2 Extraction and sale is expected to become economically viable in the foreseeable future. E3 Extraction and sale is not expected to become economically viable in the foreseeable future or evaluation is at too early a stage to determine economic viability. Warsaw September 2011 UNFC 2009 – How it Works F axis category definitions Category Definition F1 Feasibility of extraction by a defined development project or mining operation has been confirmed. F2 Feasibility of extraction by a defined development project or mining operation is subject to further evaluation. F3 Feasibility of extraction by a defined development project or mining operation cannot be evaluated due to limited technical data. F4 No development project or mining operation has been identified. Warsaw September 2011 UNFC 2009 – How it Works G axis category definitions Category Definition G1 Quantities associated with a known deposit that can be estimated with a high level of confidence. G2 Quantities associated with a known deposit that can be estimated with a moderate level of confidence. G3 Quantities associated with a known deposit that can be estimated with a low level of confidence. G4 Estimated quantities associated with a potential deposit, based primarily on indirect evidence. Warsaw September 2011 UNFC 2009 – How it Works Category Definition E1 Extraction and sale has been confirmed to be economically viable. Category F1 Definition Feasibility of extraction by a defined development project or mining operation has been confirmed. Category UNFC Class: 111 Definitions for E1, F1 and G1 satisfied G1 Definition Quantities associated with a known deposit that can be estimated with a high level of confidence. Warsaw September 2011 UNFC 2009 – Based on categories only Extracted Sales production Non-sales production Total commodity initially in place Class Categories E F G Commercial Projects 1 1 1,2,3 Potentially Commercial Projects 2 2 1,2,3 Non-Commercial Projects 3 2 1,2,3 Additional quantities associated with known deposits 3 4 1,2,3 3 3 4 3 4 4 Future recovery by commercial projects/operations Potential future recovery by contingent projects/operations Potential future recovery by successful exploration activities Exploration Projects Additional quantities associated with known deposits Each class is uniquely defined by its Warsaw September 2011 UNFC 2009 16 Warsaw September 2011 UNFC 2009 UNFC 2009 provides a tool to facilitate global communications • Uses a numerical coding system • Language independent reporting • Independent of commodity type and extraction methodology Designed to meet, to the extent possible, the needs of applications pertaining to: • Energy and mineral studies • Government resources management functions • Corporate business processes • Financial reporting standards Warsaw September 2011 Relationships UNFC is not in competition with CRIRSCO Template (for minerals) or SPE-PRMS (for petroleum) Formal agreements with SPE and CRIRSCO to provide specifications for UNFC and work towards harmony of systems – Many stakeholders directly involved in the Expert Group on Resource Classification (EGRC) – – – – – 18 MoU between SPE and Expert Group since 2006 – Mining sector, including coal and uranium (e.g. IAEA) Government organisations (USA, Russia, China, India, Norway, Ukraine, Kazakhstan, Australia, etc.) Financial sector (IASB, ASC, etc) International organizations eg IEA Professional societies/associations Operating mining and oil & gas companies Warsaw September 2011 To find out more …. Visit the UNECE website at: http://live.unece.org/energy/se/reserves.html Workshops - Ankara, Turkey, 29-30 September 2011 - Bangkok, Thailand, 10-11 November 2011 Next Expert Group session: Geneva, 2-4 May 2012 Contact Charlotte Griffiths: [email protected] [email protected]