Circular No. 60/2017/TT-BTNMT on the classification of reserves and solid mineral resources

CIRCULAR

Regulations on Classification of Reserves and Solid Mineral Resources

Pursuant to the Law on Minerals dated November 17, 2010;

Pursuant to Decree No. 158/2016/NĐ-CP dated November 29, 2016 of the Government detailing the implementation of certain articles of the Law on Minerals;

Pursuant to Decree No. 36/2017/NĐ-CP dated April 4, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Natural Resources and Environment;

Based on the proposal of the Director of the National Reserve Evaluation Council, the General Director of the Vietnam Geological and Mineral Resources Administration, and the Head of the Legal Department;

The Minister of Natural Resources and Environment issues this Circular stipulating the classification of reserves and solid mineral resources.

Article 1. Scope of Regulation

This Circular stipulates the classification of reserves and solid mineral resources in basic geological surveys on minerals and mineral activities.

Article 2. Applicability

This Circular applies to state management agencies for minerals; organizations and individuals conducting basic geological surveys on minerals and mineral activities.

Article 3. Explanation of Terms

In this Circular, the following terms are understood as follows:

1. Solid mineral resources are a collection of useful solid minerals accumulated inside or on the surface of the Earth's crust, having forms, quantities, and qualities that meet the minimum requirements for exploitation and utilization of all or some types of minerals from these accumulations at present or in the future. Solid mineral resources include defined solid mineral resources and forecasted solid mineral resources.

2. Defined solid mineral resources are solid mineral resources that have been evaluated and explored to determine their location, distribution area, form, quantity, quality, and characteristic geological signs with geological reliability ranging from certain to probable.

3. Forecasted solid mineral resources are solid mineral resources predicted in basic geological surveys on minerals based on favorable geological premises and signs for mineral formation, or from individual works discovering minerals with geological reliability ranging from inferred to indicated.

4. Solid mineral reserves are a part of defined solid mineral resources that have been explored and are expected to be economically exploitable and processed under practical conditions at the time of reserve calculation.

Article 4. Requirements for Calculating Reserves and Solid Mineral Resources

1. Reserves and solid mineral resources are calculated separately for each type of mineral, according to the presence of the mineral underground, excluding losses due to exploitation and processing. For composite mineral deposits, reserves and resources of the main mineral, accompanying minerals, and the main valuable components and accompanying valuable components must be calculated.

2. Reserves and solid mineral resources are calculated in units of volume or mass depending on usage requirements.

3. The quality of solid mineral resources is determined in their natural state, without considering enrichment losses due to exploitation; according to usage purposes and processing technology, taking into account the maximum recoverability and utilization of valuable components.

Article 5. Criteria for Classifying Reserves and Solid Mineral Resources

1. The classification of reserves and solid mineral resources is carried out based on the combination of three criteria (economic efficiency level, technical feasibility evaluation level, geological reliability level), specifically:

a) Economic efficiency level is divided into three grades: economically viable (indicated by digit 1), potentially economically viable (indicated by digit 2), and unclear economic viability (indicated by digit 3);

b) Technical feasibility evaluation level is divided into three grades: feasible (indicated by digit 1), preliminary feasible (indicated by digit 2), and general assessment (indicated by digit 3);

c) Geological reliability level is divided into four grades: certain (indicated by digit 1), reliable (indicated by digit 2), probable (indicated by digit 3), and predictive (indicated by digit 4). For the predictive grade (indicated by digit 4), it is further divided into two sub-levels: inferred (indicated by digit 4a) and indicated (indicated by digit 4b).

2. The name of the reserve and resource grade of solid minerals is determined according to the sequential numerical symbols for each level (economic efficiency level, technical feasibility evaluation level, geological reliability level) as specified in Clause 1 of this Article.

Article 6. Classification of Reserves and Solid Mineral Resources

1. Reserve classification includes three levels:

a) Level 111 reserves;

b) Level 121 reserves;

c) Level 122 reserves.

2. Determined solid mineral resource classification includes six levels:

a) Level 211 resources;

b) Level 221 resources;

c) Level 222 resources;

d) Level 331 resources;

đ) Level 332 resources;

e) Level 333 resources.

3. Predicted solid mineral resource classification includes two levels:

a) Level 334a resources;

b) Level 334b resources.

Article 7. Requirements for Evaluation Levels of Reserves and Solid Mineral Resources

1. Level 111 Reserves

Level 111 reserves are delineated within the control range of exploration and mining works. Level 111 reserves must meet the following requirements:

a) Geological evaluation level

Level 111 reserves are blocks of reserves that have been explored to detail the shape, size, position, and geological structure of the ore body. The economically valuable mineral parts, layers, lenses, and non-compliant internal parts of the ore body are delineated and defined. The quality and technological properties of the minerals are clearly determined. Geological hydrogeological conditions, engineering geology conditions, and other mining conditions are thoroughly studied, ensuring sufficient basis for mine design.

The geological reliability of the reserves guarantees a minimum of 80%.

b) Technical and technological feasibility evaluation level

A mining investment project has been established to demonstrate that mining, beneficiation, and processing of minerals according to the selected technical and technological solution is reasonable, ensuring comprehensive, thorough, economical use of mineral resources, environmental protection, and legality. For mines already being mined, there must be a mining report.

c) Economic efficiency

The mining results report or the mining investment project report confirms that the investment in mining and processing of minerals from the mine will yield economic benefits for the enterprise and the national economy at the time of assessment.

2. Level 121 Reserves

Level 121 reserves are delineated within the control range of exploration works. Level 121 reserves must meet the following requirements:

a) Geological evaluation level

Level 121 reserves have a geological evaluation level similar to level 111 reserves.

The geological reliability of the reserves guarantees a minimum of 80%.

b) Technical and technological feasibility evaluation level

A preliminary feasibility study report on the mining investment project or a technology research result report has been established to determine that mining and processing of minerals according to the selected technical and technological solution is reasonable, ensuring comprehensive, thorough, economical use of mineral resources, environmental protection, and further feasibility investment in the mining project is necessary.

c) Economic efficiency

The preliminary feasibility study report on the mining investment project, or based on comparison with similar operating mines, demonstrates that continuing to invest in feasibility studies of the mining project ensures economic benefits at the time of assessment.

3. Level 122 Reserves

Level 122 reserves are delineated within the control range of exploration works and limited extrapolation based on geological, geophysical, and geochemical data. Level 122 reserves must meet the following requirements:

a) Geological evaluation level

Geological exploration results ensure clarity about the basic characteristics of the mine's geological structure, knowing the quantity, position, and shape of ore bodies in the mine (beds, lenses, veins, vein networks, deposits...), delineating and preliminarily determining the basic parameters of the ore bodies such as: size, shape, position, average thickness, and variation in thickness of the ore bodies. The number and average size of layers, lenses, intercalations, and non-compliant internal parts of the ore bodies;

Basic characteristics of mineral quality and beneficiation, processing, and recovery of mineral raw material products have been clarified. Basic characteristics of geological hydrogeological and engineering geological conditions and other technical mining conditions have been clarified. To prove or affirm the industrial value prospect of the mineral deposit, data from similar operating mines can be cited.

The geological reliability of the reserves guarantees a minimum of 50%.

b) Technical and technological feasibility evaluation level

The technical and technological feasibility evaluation level requirement for level 122 reserves is similar to level 121 reserves. Due to lower geological reliability of level 122 reserves compared to level 121 reserves, it may affect the risk level of the mining investment project.

c) Economic efficiency

The preliminary feasibility study report on the mining investment project determines that continuing to invest in exploration and mining is economically beneficial at the time of assessment.

In the absence of a feasibility or preliminary feasibility study report on the mining investment project, level 121 and 122 reserves are determined based on the reserve calculation criteria explained in the mineral exploration results report.

4. Level 211, 221, and 331 Resources

Level 211, 221, and 331 resources are delineated within the control range of exploration works.

a) Geological evaluation level

Level 211, 221, and 331 resources have a geological evaluation level similar to level 111 reserves.

The geological reliability of the resources guarantees a minimum of 80%.

b) Feasibility and economic efficiency evaluation level

Level 211 resources: are parts of resources that have been studied through feasibility projects for mining investment, demonstrating that under current technological, economic, environmental, and other conditions, mining and processing of minerals from these resources are not economically viable. However, in the future, they may become economically viable due to technological innovation, reduced production costs, increased prices of mineral raw materials, and changes in economic, environmental, and related legal conditions;

Level 221 resources: are parts of resources that have been studied through preliminary feasibility projects for mining investment, demonstrating that mining and processing of minerals from these resources are not economically viable at the time of assessment. However, in the future, along with scientific and technological progress, scarcity and rising prices of mineral raw materials, and other socio-economic changes, mining could become economically viable;

Resource Class 331: This is a portion of resources that have been generally studied for exploitation purposes, but at the time of evaluation, it is unclear whether mining and processing minerals from this resource source will be economically viable or potentially economically viable.

5. Resource Class 222 and 332

Resources of Class 222 and 332 are delineated within the scope controlled by exploration works and extrapolations with limited boundaries based on geological, geophysical, and geochemical data.

a) Geological evaluation level

It is a portion of resources that have been explored and have a geological assessment level similar to Reserve Class 122.

The geological reliability of the resources ensures a minimum of 50%.

b) Regarding the feasibility assessment level concerning technical and economic efficiency

Resource Class 222: This is a portion of resources that have undergone preliminary project feasibility studies for mining investment, proving that mining and processing minerals from this resource source at the time of evaluation is not economically viable, but may become economically viable in the future;

Resource Class 332: This is a portion of resources that have been generally assessed for mining purposes, and at the time of evaluation, it is unclear whether mining and processing minerals from this resource source will be economically viable or potentially economically viable.

6. Resource Class 333

Resource Class 333 is delineated within the favorable geological structure for mineral formation based on the processing and synthesis of geophysical, geochemical-mineralogical research results combined with some individual drilling and excavation works.

a) Geological evaluation level

Resource Class 333 is a portion of resources that have been roughly evaluated and determined regarding shape, position, and distribution of ore bodies. Mineral quality is determined based on samples taken from natural outcrops, geological works, or extrapolated from adjacent areas with more detailed geological research.

The geological reliability of Resource Class 333 must reach a minimum of 20%.

b) Regarding the feasibility assessment level concerning technical and economic efficiency

Resource Class 333 is a portion of resources that have been generally assessed for mining purposes, and it is unclear whether mining and processing minerals from this resource source will be economically viable or potentially economically viable.

7. Predicted Solid Mineral Resources

Predicted solid mineral resources are inferred or estimated from favorable geological premises and signs for mineral formation based on regional basic geological investigation data about mineral resources. Predicted resources are delineated within the area of ore basins, ore zones, ore nodes, and ore fields from geophysical, geochemical-mineralogical, natural outcrop, and excavation work results. The quantity of predicted resources is calculated using quantitative ore genesis prediction methods that utilize data from industrial value mines distributed in ore zones, ore nodes, etc.

Depending on the level of basic geological investigation of mineral resources, predicted resources are divided into:

a) Resource Class 334a: This is a portion of solid mineral resources mainly inferred based on regional basic geological investigation data about mineral resources at a scale of 1/50,000 to 1/25,000 (or larger). It has favorable geological premises and signs for ore formation. Additionally, Resource Class 334a can also be inferred through comparison with surveyed and explored mines with similar geological settings or extrapolation from adjacent areas with more detailed geological assessments.

b) Resource Class 334b: This is a portion of solid mineral resources mainly estimated during regional geological investigations at a scale of 1/200,000 to 1/50,000, or estimated through similar comparisons of geological settings with places where mineral resources have already been discovered.

Article 8. Classification of reserves and mineral resources at combined mines

For combined mineral mines, the main minerals and valuable components are classified at the same reserve level or the same resource level, while accompanying minerals and valuable components are classified at the same level or lower levels depending on the degree of study, distribution characteristics, and recovery capacity.

Article 9. Relationship between reserves and solid mineral resources

Between reserve classes 111, 121, 122 and resource classes 211, 221, 222, 331, and 332 can be converted to each other when there are changes in economic factors, market conditions, technical and technological aspects of mining, mineral processing, environmental considerations, and laws, according to Appendix I issued with this Circular.

Article 10. Effectiveness and Responsibility for Implementation

1. This Circular takes effect from January 26, 2018.

2. This Circular replaces Decision No. 06/2006/QĐ-BTNMT dated June 7, 2006 of the Ministry of Natural Resources and Environment promulgating regulations on classification of reserves and solid mineral resources.

3. For minerals without exploration, reserve, and resource classification regulations, this Circular shall be applied for classification of reserves and resources; the exploration network should follow Appendix II issued with this Circular.

4. The National Mineral Reserve Evaluation Council Office and the Vietnam General Department of Geology and Minerals are responsible for guiding and supervising the implementation of the provisions of this Circular.

5. During the implementation process, if there are difficulties, organizations and individuals shall promptly reflect difficulties and issues to the Ministry of Natural Resources and Environment for consideration and resolution./.