Initial exploration activities until infrastructure development, production expansion and mine acquisitions need sources of funds. The basis for external investors or internal shareholders of mining companies to provide funds is the status of resources and reserves that reflect investors’ expectations and confidence in the possible return on investment and asset growth. For investors to make balanced and balanced decisions in the context of provision of funds or investment, the status of resources and reserves must be based on accurate and credible reporting.
The birth of the Guidelines was basically triggered by a scandal of resource reporting and reserve maneuvers that caused tremendous losses for investors. The birth of the JORC Code (Australia) prevailing since the late 60s, triggered by the Posseidon and Cappendance Scandal CIM / NI 43-101 (Canada), which was in effect since the late 90s, was sparked by the Busang Scandal.
In September 2011 the Joint Committee of KCMI whose members are PERHAPI and IAGI, through the National Convention gave birth to the Indonesian Mineral Reserve Committee Code (KCMI): 2011. It is expected that the Code adopted from the JORC Code 2004 can serve as a public reporting guide for exploration, resource and mineral reserves in Indonesia; and able to protect the interests of investors and stakeholders.
Since its introduction at the end of 2011, the recognition and acceptance of the KCMI Code: 2011 is widespread and encouraging, as can be seen from: