Advance in Global Classification Standards For Minerals and Petroleum

The following is extracted from a report by the author to the International Valuation Standards Committee (IVSC), with minor modifications for the purpose of publication. The author represented the IVSC at the annual session of the Ad Hoc Group of Experts on Harmonization of Fossil Energy and Mineral Resources Terminology. This is a body organized by the United Nations Economic Commission for Europe (UNECE). This second session, held in Geneva, Switzerland, achieved an important agreement for advancement toward uniform global standards for the classification of minerals and petroleum reserves and resources. Attendees discussed the possibility of enhancing the United Nations Framework Classification for Energy and Mineral Resources (UNFC) for implementation globally as the classification standard for use in financial reports under the International Financial Reporting Standards (IFRS). Presently, there are between 100 and 200 mineral and petroleum resource classification (or definition) systems throughout the world — a similar number to what there are countries.