1. United Nations Framework Classification (UNFC) and its Application to Minerals Presented by Charlotte Griffiths (UNECE) and John Barry (Rathdowney Resources Ltd) International Conference EU 2020 Strategy in Mineral Commodities Management Warsaw 19-20 September 2011

2. Warsaw September 2011 Why is the UN involved? What is it? Brief history How it works Application to Minerals and Relationship with the CRIRSCO Template UNFC

3. United Nations Regions ECE ESCAP ECLAC ECA ESCWA

4. Warsaw September 2011  Five UN Regional Commissions  UNECE: EU, non-EU Western and Eastern Europe, South-East Europe, CIS, and North America  Based in Geneva, 56 Governments  Mission to foster sustained economic growth and cooperation among member countries  Policy analysis, development of norms, standards, regulations and conventions, and technical assistance  Key focus: economic cooperation & integration, environmental policy, housing & land management, statistics, sustainable energy, technical cooperation, forestry & timber, trade and transport United Nations Economic Commission for Europe

5. Warsaw September 2011  Sustainable energy development: effective and efficient resource management  Here to serve; respond to needs of Member States  Neutral platform, convening power  UN Regional Commissions can service global projects – UNFC is global (ECOSOC Decision 2004/233)  UNECE structured to ensure its activities are conducted through open and transparent process, with no formal limitations on participation  Expert Group on Resource Classification – multistakeholder dialogue, “unprecedented level of cooperation”  UNFC is a voluntary system Why is the UN involved?

6. Warsaw September 2011 6 UNFC 2009  United Nations Framework Classification for Fossil Energy and Mineral Reserves and Resources  Generic, principles-based system - Applicable to solid minerals and fluids (coal etc, uranium, oil, gas) - Language-independent numerical coding system - A key goal is to provide a tool to facilitate global communications  UNFC is a three dimensional system – quantities classified based on three criteria: E conomic and social viability F ield project status and feasibility G eological knowledge

7. Warsaw September 2011 UNFC 2009 – Three Criteria Field project status and feasibility (F axis) Economic and social viability (E axis) Geological knowledge (G axis) Combinations of criteria create 3-D system

8. Warsaw September 2011 8 UNFC 2009 – the System

9. Warsaw September 2011 UNFC History 1992 Started development of system 1997 UNFC for solid fuels and mineral commodities published 2004 UNFC extended to cover oil, natural gas and uranium

10. Warsaw September 2011 UNFC History (cont) 2007 Mapped UNFC-2004 to CRIRSCO Template and PRMS 2007 Proposed simplification and minor changes to ensure harmonization 2008 Published draft version for public comment 2009 – UNFC 2009 Approved

11. Warsaw September 2011 CategoryDefinition E1Extraction and sale has been confirmed to be economically viable. E2Extraction and sale is expected to become economically viable in the foreseeable future. E3Extraction and sale is not expected to become economically viable in the foreseeable future or evaluation is at too early a stage to determine economic viability. UNFC 2009 – How it Works E axis category definitions

12. Warsaw September 2011 CategoryDefinition F1 Feasibility of extraction by a defined development project or mining operation has been confirmed. F2 Feasibility of extraction by a defined development project or mining operation is subject to further evaluation. F3 Feasibility of extraction by a defined development project or mining operation cannot be evaluated due to limited technical data. F4 No development project or mining operation has been identified. F axis category definitions UNFC 2009 – How it Works

13. Warsaw September 2011 CategoryDefinition G1Quantities associated with a known deposit that can be estimated with a high level of confidence. G2Quantities associated with a known deposit that can be estimated with a moderate level of confidence. G3Quantities associated with a known deposit that can be estimated with a low level of confidence. G4Estimated quantities associated with a potential deposit, based primarily on indirect evidence. G axis category definitions UNFC 2009 – How it Works

14. Warsaw September 2011 CategoryDefinition E1Extraction and sale has been confirmed to be economically viable. CategoryDefinition F1Feasibility of extraction by a defined development project or mining operation has been confirmed. CategoryDefinition G1Quantities associated with a known deposit that can be estimated with a high level of confidence. UNFC Class: 111 UNFC 2009 – How it Works Definitions for E1, F1 and G1 satisfied

15. Warsaw September 2011 Total commodity initially in place Extracted Sales production Non-sales production Class Categories EFG Future recovery by commercial projects/operations Commercial Projects111,2,3 Potential future recovery by contingent projects/operations Potentially Commercial Projects 221,2,3 Non-Commercial Projects 321,2,3 Additional quantities associated with known deposits341,2,3 Potential future recovery by successful exploration activities Exploration Projects334 Additional quantities associated with known deposits344 UNFC 2009 – Based on categories only Each class is uniquely defined by its code

16. Warsaw September 2011 16 UNFC 2009

17. Warsaw September 2011 UNFC 2009 provides a tool to facilitate global communications Uses a numerical coding system Language independent reporting Independent of commodity type and extraction methodology Designed to meet, to the extent possible, the needs of applications pertaining to: Energy and mineral studies Government resources management functions Corporate business processes Financial reporting standards UNFC 2009

18. Warsaw September 2011 18 UNFC is not in competition with CRIRSCO Template (for minerals) or SPE-PRMS (for petroleum) Formal agreements with SPE and CRIRSCO to provide specifications for UNFC and work towards harmony of systems – MoU between SPE and Expert Group since 2006 Many stakeholders directly involved in the Expert Group on Resource Classification (EGRC) – Mining sector, including coal and uranium (e.g. IAEA) – Government organisations (USA, Russia, China, India, Norway, Ukraine, Kazakhstan, Australia, etc.) – Financial sector (IASB, ASC, etc) – International organizations eg IEA – Professional societies/associations – Operating mining and oil & gas companies Relationships

19. Warsaw September 2011 To find out more ….  Visit the UNECE website at: http://live.unece.org/energy/se/reserves.html http://live.unece.org/energy/se/reserves.html Workshops  Workshops - Ankara, Turkey, 29-30 September 2011 - Bangkok, Thailand, 10-11 November 2011  Next Expert Group session: Geneva, 2-4 May 2012  Contact Charlotte Griffiths: charlotte.griffiths@unece.org reserves.energy@unece.org