Code Innovation

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Development of KCMI Code

History

Discourse created a reporting code started before 1998
The Busang case (Bre-X / 1993-1997), starting at a stock price of less than CAD $ 1.00 peaked at CAD $ 286.50 in May 1996 (The Biggest Mining Scandal of All Time)
There is a desire from professionals to have a code of high quality reporting of mineral resources and reserves and some code choices as a reference (South Africa, Canada, Australia), Decided to adopt JORC from Australia because the JORC Code is considered the most comprehensive
MoU with AusIMM (July 1998)
MoU with MICA (April 2004)
The 2011 KCMI Code Convention 2011

Recognition of reporting of mineral and coal reserves by CPI in BEI Regulation no. 1-A.1 (effective December 1, 2014)
BEI Cooperation with CPI IAGI-MGEI, effective December 11, 2014, 5 year period, a.l. elements of CPI IAGI-MGEI in the IDX Working Team who evaluate potential mining issuers
Director General of Minerals and Coal Regulation no. 569 / DJB / 2015, effective April 2017 requires the reporting of HE, Resource and Reserve referring to KCMI and SNI Codes (Furthermore Minister Reporting Regulations)
CP Implementation Committee of each CPI IAGI-MGEI each have 196 CPI and 191 CPI
The KCMI Code socialization program has been conducted since 2012
The KCMI Code has been introduced in the CRIRSCO forum and Indonesia has been indicated as a potential member of CRIRSCO
The KCMI code has been used by some by some mining companies.

Description of the Competent Person
- ‘why, who, how’
- bonds: doing work, professional development, etc
Ethics and discipline
- Ethics, Code of Ethics CPI IAGI-MGEI, Code of Conduct, Sanctions & Rehabilitation
KCMI Code: 2011
- Code, definitions, instructions
- Table 1: check list of reporting criteria
Appendix – attachment
- (a.l.) Common terms and equation

Introduction, Scope
Competence and Responsibility
Term of Reporting and Preparation of General Reports
Reporting for Exploration Results
Reporting for Resource Estimation
Reporting for Reserve Estimation
Reporting for Resource and Reserves Estimation of Coal
Reporting for Exploration Results, Resource and Reserves Estimation of Precious Stone
Reporting for Exploration Results, Resource and Reserves Estimation of Industrial Mineral
Table 1: ‘Check list’ for Criteria for Assessment and Reporting
General Terms and Equations

Report reader (Investor & Adviser)
- To understand the report; sufficient information, clear presentation & not confusing (not manipulated) and not misled
Transparency
- The report contains all relevant information that is reasonably and appropriately needed by investors and their professional advisors
- For appropriate and balanced investment decision-making
Competent
- The work of ‘Competent Person’
- Relevant relevant experience
- Responsible and accountable
- Bound code of ethics and organizational rules, catt. : Competent Person Indonesia (CPI) IAGI-MGEI

The meaning is a Guideline consisting of principles (Code – Definition – Directive). KCMI Code: 2011 does not regulate the following:

Schemes and procedures (detailed steps) used by CPI reporting Estimation Results, as well as in estimation-classification-reporting of Mineral and Coal Resources and Reserves Estimation
Systematic of reporting content of Estimated Results, Mineral and Coal Resources and Reserves. CPI self-determines schemes & procedures for reporting of Mineral and Coal Estimation Results, or estimates-classification- reporting of Mineral and Coal Resources and Reserves Estimation, as well as systematic reporting with reference to:
1. KCMI Code Content and Table 1: Check list of reporting criteria
2. Best practices

Reporting of Exploration Results – Resource Estimation – Reserves Estimation