Reports for Mining Projects in Africa

When a mining company asks the public for money, lists on a stock exchange, borrows from a bank or sells a project, the people on the other side of the table want an independent, trustworthy opinion on what the asset is worth technically. In the mining industry, that opinion is usually delivered in a Competent Person’s Report, often abbreviated to CPR. It is one of the most important documents in a mining transaction, and a weak or poorly prepared one can delay or derail a deal.

This article explains what a CPR is, the reporting codes behind it, who is qualified to write one, what it contains, and how to prepare for the process, with particular attention to African projects.

What Is a Competent Person’s Report?

A CPR is an independent technical report on a mining or exploration asset, prepared by a suitably qualified and experienced professional or team. It describes the geology, mineral resources and reserves, mining and processing plans, costs, permits, environmental and social aspects, and risks, and gives an independent view on whether the stated information is reasonable.

The term comes from the JORC Code, the reporting standard developed in Australasia, in which the person responsible for reporting exploration results, mineral resources or ore reserves is called a Competent Person. Several other jurisdictions use similar concepts under different names. In Canada, a technical report under National Instrument 43-101 must be prepared by or under the supervision of a Qualified Person. In South Africa, the SAMREC Code uses the term Competent Person. Many reports for listings on the London Stock Exchange’s AIM market or other venues are described as Competent Person’s Reports or Independent Technical Reports and typically follow one of these codes.

The International Reporting Framework

Most major codes are aligned through CRIRSCO, the Committee for Mineral Reserves International Reporting Standards, which publishes a template of common principles. The main codes used in Africa are:

• JORC Code, widely used for companies listed in Australia and by many African explorers.
• NI 43-101, used by companies listed on Canadian exchanges, which are very active in African mining.
• SAMREC Code, used in South Africa and for companies listed on the Johannesburg Stock Exchange.
• PERC Standard, used in parts of Europe and by some companies listing in London or Europe.
• CIM Definition Standards, which underpin NI 43-101 classifications.

The codes are built on three principles: transparency, materiality and competence. Reports must provide enough information for investors to understand the basis of the conclusions, must include all material information, and must be signed off by competent professionals who accept personal responsibility for their work.

Who Can Be a Competent Person?

Codes set minimum standards, which usually include:

• Relevant experience. Typically a minimum of five years of experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken, for example resource estimation or reserve estimation.
• Professional membership. Membership in good standing of a recognised professional organisation, with enforceable ethical rules and disciplinary processes. Examples include Australian Institute of Mining and Metallurgy, Australian Institute of Geoscientists, South African Council for Natural Scientific Professions, Engineering Council of South Africa, Geological Society of South Africa, and professional engineering or geoscience associations in Canada. The list of accepted organisations varies by code.
• Independence for independent reports. For a CPR prepared for a listing or transaction, the author normally must be independent of the issuer and the project, with no material financial interest in the outcome.

Different people can be responsible for different parts of the report, such as geological data, mineral resources, mining and ore reserves, metallurgy, environmental aspects and financial analysis. Each takes responsibility for their own section.

When Is a CPR Needed?

A CPR is commonly required in these situations.

• Stock exchange listings and capital raisings. Exchanges such as AIM in London, the Toronto Stock Exchange and Australian Securities Exchange have requirements for technical disclosure and may require an independent report for new listings of mining companies.
• Project financing. Lenders commission independent technical reviews, often called technical due diligence, before committing debt.
• Mergers, acquisitions and joint ventures. Buyers and partners want independent verification of resources, reserves and potential.
• Regulatory filings. In some cases, regulators require technical reports to support applications or disclosures.
• Internal governance. Companies and boards sometimes commission independent reviews to confirm the quality of their technical work.

Kenya’s Mining Act, 2016 does not itself mandate a specific international code for resource reporting, but mining licence applications require substantial technical information, and any company seeking to raise capital abroad, or to sell a project to international buyers, will meet one of the codes above.

What a CPR Typically Contains

Exact structure varies by code and purpose, but most reports follow a similar outline.

1. Executive summary. A concise statement of the asset, key conclusions, resource and reserve figures, and main risks.
2. Introduction and scope. Purpose of the report, the basis of preparation, the code used, the qualifications of the authors and statements of independence.
3. Project description and location. Access, infrastructure, climate, physiography, and tenure details such as licence numbers, areas, expiry dates and obligations.
4. History. Previous exploration and production, with comments on the reliability of historic data.
5. Geological setting and mineralisation. Regional and local geology, deposit type, and styles of mineralisation.
6. Exploration and drilling. Methods, quantities, results and interpretation, including sampling, drilling and survey procedures.
7. Sample preparation, analysis and security. Laboratories, methods, quality assurance and quality control, and chain of custody.
8. Data verification. Checks performed by the author, including site visits, audits of databases and independent sampling where appropriate.
9. Mineral resource estimates. Methodology, domain interpretation, statistical analysis, estimation parameters, classification and the basis for reasonable prospects of eventual economic extraction.
10. Ore reserve estimates, where applicable. Mining studies, modifying factors, cut-off grades, dilution and recovery assumptions.
11. Mining and processing. Planned methods, metallurgical testwork, process flowsheets and recoveries.
12. Infrastructure, environmental and social aspects. Power, water, tailings, permits, environmental baseline, community engagement and closure planning.
13. Capital and operating costs and economic analysis. Estimates, assumptions, financial results and sensitivity analysis.
14. Risks and opportunities. An independent assessment of geological, technical, permitting, social, fiscal and market risks.
15. Conclusions and recommendations. Including proposed work programmes and budgets for exploration projects.
16. References and certificates. Statements of qualifications, consents, and signatures of the responsible professionals.

Site Visits and Verification

Codes expect the Competent Person or Qualified Person to be reasonably familiar with the project. NI 43-101 requires a personal inspection of the property by the Qualified Person unless a specific exemption applies, and JORC requires the Competent Person to disclose whether a site visit has been done and, if not, why. In practice, a credible CPR for an African project involves a site visit to inspect outcrops, drill core, sampling facilities, logging and storage practices, laboratory arrangements and, where relevant, mining or processing operations.

During site visits, authors typically check whether drill collars exist at stated locations, review core and chip samples against logs, inspect security and storage, and may take independent samples to verify grades. These checks are central to the credibility of the report.

Special Considerations for African Projects

African projects have features that experienced Competent Persons look at closely.

• Tenure and legal status. Licence validity, overlapping claims, renewal obligations and conditions, local ownership requirements and state participation are important. The report must describe tenure accurately and flag risks, normally supported by legal opinions.
• Historic data quality. Many projects inherit data from artisanal workings, colonial-era exploration or earlier companies without QA/QC. Such data may be useful for targeting but cannot always support resource estimates.
• Sampling and security. Remote locations, community presence and artisanal activity affect sample security and contamination risk.
• Infrastructure and logistics. Access, power, water and transport can dominate project economics.
• Fiscal and regulatory terms. Royalties, taxes, local content, community development agreements and strategic mineral rules can change, and must be incorporated in economic analysis.
• Community and environmental risk. Social licence, resettlement, and environmental sensitivity, such as protected forests, are material risks that must be disclosed.
• Exchange-specific rules. Each stock exchange has its own disclosure rules, and the CPR must meet those that apply to the transaction.

How Long Does a CPR Take and What Does It Cost?

Timelines depend on the project’s size, the availability of data and the scope of work. A CPR on a well-documented exploration project can often be completed in several weeks to a few months, while more complex reports on development projects with several specialist contributors take longer. Costs vary widely, from tens of thousands of dollars for a focused exploration-stage report to substantially more for projects with large resources, extensive data and multiple disciplines. Site visits, specialist input such as metallurgy or environmental review, and legal opinions are the main variables.

How to Prepare

Companies can make the process faster and cheaper, and the result stronger, by preparing in advance.

1. Organise a data room. Assemble licence documents, geological maps, drill logs, assay certificates, QA/QC records, survey data, previous reports, metallurgical results, environmental studies and community agreements.
2. Clean and validate databases. Check drill hole locations, surveys, sample numbers and assay records. Fix errors before the author finds them.
3. Fix quality control gaps. If QA/QC is incomplete, consider re-assaying selected samples with certified standards and duplicates.
4. Confirm tenure. Obtain up-to-date cadastre extracts, evidence of payments and compliance, and legal advice.
5. Be transparent about weaknesses. Competent Persons will find them, and open disclosure builds trust.
6. Choose an independent, experienced author. Look for relevant commodity and regional experience, professional standing and a record of reports accepted by exchanges and lenders.
7. Agree scope and timeline early. Clarify which code applies, who will sign each section, which site visits are needed and what the report will be used for.

Conclusion

A Competent Person’s Report is a cornerstone of trust between mining companies and the people who finance them. It rests on recognised reporting codes, professional accountability and independent verification. For African projects, a good CPR combines sound geoscience with clear treatment of tenure, community, regulatory and logistical realities. Companies that prepare their data early, engage experienced independent professionals and accept honest assessments of risk will find that a strong CPR is not an obstacle to be overcome, but an asset that makes capital raising, partnerships and sales easier.