Mineral Resources form the foundation of exploration and mining company value with risk management serving as a critical function of business decision making. Mineral Resources are converted to Reserves, Reserves are the basis for the mine plan, while the mine plan is the centerpiece of the business plan. A central responsibility of mining company Boards and Executive management teams is managing the inherent risky nature of Mineral Resources. Due to the dynamic nature of the business and the varying levels of technical staff experience, assurance can be challenging.
Through effective internal validation, reviews, and systems, coupled with external auditing, Mineral Resource risk can be understood and managed. Documented programs and a transparent assurance program are key for company Boards to communicate adequate risk management of Mineral Resources to investors and stakeholders.
