Understanding the SAMREC Code in the Context of Valuing Non-South African Mineral Reserves.

For South African companies investing in, acquiring, or raising capital for mineral assets outside of South Africa, particularly within the rest of Africa, understanding the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code) is essential. Although the Code is specifically South African, its international alignment and compulsory application for JSE-listed entities make it the de facto reporting standard for projects across the continent seeking South African capital. The purpose of SAMREC is to protect investors by providing a minimum, consistent standard for public reporting.

The CRIRSCO Standardisation

The SAMREC Code is not an isolated national standard. It is a member code of the Committee for Mineral Reserves International Reporting Standards (CRIRSCO). CRIRSCO’s objective is to develop a set of international standard definitions for the reporting of Mineral Resources and Mineral Reserves.

International Alignment: By adopting CRIRSCO’s standard definitions, SAMREC ensures its core concepts (Mineral Resource, Mineral Reserve, Competent Person) are aligned with other international codes like Australia’s JORC, Canada’s NI 43-101, and the Pan-European PERC Code. This interoperability allows investors to compare a copper project in Zambia reported under SAMREC with a copper project in Canada reported under NI 43-101 on a fundamentally similar basis.

Investor Trust: The adoption of these international standards adds credibility to declarations by project promoters, enhancing investor confidence and facilitating cross-border comparisons of mineral assets.

Application to Non-South African Assets

For any mining company listed on the Johannesburg Stock Exchange (JSE), reporting on mineral assets—whether located in South Africa, the Copperbelt, or West Africa—must comply with the SAMREC Code. This effectively mandates its use for many African projects seeking capital in Johannesburg.

Mandate for Public Reporting: SAMREC sets the minimum standards for Public Reporting of Exploration Results, Mineral Resources, and Mineral Reserves. If a South African mining house or JSE-listed entity acquires a lithium project in Zimbabwe, that project’s resource base must be formally reported to the market by a Competent Person (CP) in accordance with SAMREC guidelines.

The Competent Person (CP): The Code requires that resource and reserve reports be signed off by a CP—a qualified, experienced professional subject to an enforceable code of ethics. This CP must have relevant experience for the deposit type and jurisdiction, regardless of where the asset is physically located, guaranteeing a minimum standard of professional accountability.

The Valuation Link: SAMREC and SAMVAL

While SAMREC governs the technical definition of the reserves and resources, the related SAMVAL Code (South African Code for the Reporting of Mineral Asset Valuation) relies directly on SAMREC compliance when valuing mineral assets, including those outside South Africa.

Mineral Reserve Declaration: To declare a Mineral Reserve (the economically mineable portion), the CP must consider all relevant Modifying Factors, including mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social, and governmental aspects. For non-South African assets, the assessment of these factors must rigorously account for the local regulatory environment, political risk, and logistical challenges unique to that specific African country.

Valuation Assurance: SAMVAL requires that the Mineral Resources and Reserves relied upon in a Mineral Asset Valuation (MAV) comply with SAMREC or another CRIRSCO-affiliated code. This critical link ensures that the monetary valuation presented to JSE investors is based on technically sound, independently verified geological and engineering data, regardless of the asset’s geographic origin.

Glen Supply Chain provides the essential on-the-ground intelligence and logistical verification necessary for the Competent Person to accurately assess the Modifying Factors of non-South African assets, ensuring that technical reports and valuations are fully compliant with SAMREC standards and meet the rigorous due diligence required by JSE investors.