The mineral industry research association P754 Metal ...

1 The mineral industry research associationP754 Metal accounting & ReconciliationAugust 2003 Project Details Mining companies world wide are under pressure to improve corporate governance with respect to Metal accounting from mine to product and to improve the credibility and transparency of the reporting process. This project will build on existing measurement technology to attack this problem. Modelling and database technology will be used to transform the Metal accounting process from a costly and time consuming corporate encumbrance into a profit centre. The development of the Guidelines/Code has been accelerated at the wish of current Sponsors and a draft is scheduled for the end of 2004.

2 Companies are invited to join the project for the final 2 years to gain access to these guidelines. By having their own guidelines incorporated into this work, future recognition of these by industry and the financial/auditing sector will be achieved. Key Project Objectives Development leading to an agreed industry standard at corporate governance level; Significantly improve the credibility of Metal accounting from deposit to saleable product; Development of guidelines for data collection, data analysis, reporting and audit; A data analysis toolbox which provides go/no go testing for Metal balance data; Encourage industry to adopt these guidelines which will improve transparency and financial credibility.

3 Over time, these guidelines will evolve into a code and eventually into a standard; Develop and train engineers to become expert in Metal balancing and reporting. The Project Status This challenging project has started with the selection of 5 students at the Universities of Cape Town and Stellenbosch. The academic supervisors for the project are Rob Morrison (University of Queensland), Dave Deglon (University of Cape Town), Jacques Eksteen and (University of Stellenbosch) The technical programme, including the assessment of enabling technologies assessment of current practice is under the supervision of Dr Hugh Bartlett (Hugh Bartlett Consulting) and Dr Geoff Lyman (University of Queensland).

4 The project is still open to new sponsors and will require support from a substantial proportion of industry leaders to gain sufficient leverage to attack entrenched historical attitudes. A spin off will be improved communication with the financial sector, which provides investment capital for the industry . Project Leader Dr Rob Morrison research Institutions Julius Kruttschnitt mineral research Centre with the Universities of Cape Town and Stellenbosch. Project Duration 3 years Project Status Project officially started in March 2003. Site work is in progress at Ferrometals (BHPB illiton), Namakwa Sands (Anglo American), Waterval Smelter (Anglo Platinum), Zincor (Kumba Resources). Sponsorship Site Sponsor A$50,000 pa, Minor Sponsor A$35,000 pa, Financial and Consulting Sponsor A$25,000 pa To join now for input and access to the guidelines and all project outcomes A$52,500 pa for 2 Years.

5 Confidentiality A standard AMIRA project confidentiality agreement will be executed. Sponsors retain a royalty free, perpetual, non-exclusive license to use research project technology in their own operations. Further Information Richard Beck AMIRA International Africa Office research Co-ordinator Building 88, Studio Office Park, 5 Concourse Crescent, Lonehill Johannesburg, South Africa Phone: + 27 11 745 1522 Cell pone 08 654 6818 Email.