UNFC concept & teminology.ppt

UNFC concept & terminology

1. CONCEPT AND TERMINOLOGY AS
PER UNFC
(UNITED NATIONS FRAME WORK CLASSIFICATION)
OF RESOURCES
V.JAYA KRISHNA BABU,
Regional Controller of Mines,
INDIAN BUREAU OF MINES

2. 1.Introduction
2.Resourceclassificationsystems
3.EvolutionofUNFCconcept
4.ImplementationofUNFCconcept
5.AdvantagesofUNFC
6.TerminologyasperUNFC
7.Stages/Levelsofthreeaxes
8.CategoriesofUNFC&theircodes
9.Conclusion

3. INTRODUCTION
What is a classification?
Classificationisaarrangementofanumber
ofelementafterapredefinedcriteria.
Mineralresourceclassificationisthe
classificationofmineraldepositsbasedon
theirgeologiccertaintyandeconomicvalue.

4. INTRODUCTION
Mineral deposits can be classified as:
Mineraloccurrencesorprospectsofgeological
interestbutnotnecessarilyofeconomicinterest
Mineralresourcesthatarepotentiallyvaluable,
andforwhichreasonableprospectsexistfor
eventualeconomicextraction.
MineralreservesorOrereservesthatare
valuableandeconomicallyandtechnicallyfeasible
toextract.

5. INTRODUCTION
Resourceandreserveclassificationsystems
shouldreflecttherealityasmuchasthe
requirement.
Universally understandable.
Morethan150reserve/resourceclassification
systemswithdifferenttermsanddefinitions,
world-wide.

6. RESOURCES CLASSIFICATION SYSTEMS
In1975-GSIpublished‘Manualofmineral
exploration’inwhichfourfoldcategoriesof
resourcessuggested.
INDIAN SYSTEM USSR classification
Developed A
Proved B
Probable C1
Possible/potential C2

7. RESOURCES CLASSIFICATION SYSTEMS
In1979GovernmentofIndiaconstituteda
committeeforstandardizationofterminologyand
classificationofmineralreserves.Thecommittee
recommendedfivefoldclassifications.
Proved
Probable
Possible
Prospective
Conditional

8. RESOURCES CLASSIFICATION SYSTEMS
InIndiamineralresourceswere
classifiedintoinsituandrecoverableand
intoproved,probableandpossible
categoriesbasedondegreeof
confidenceofvariousgeological
parametersandalsointoreservesand
conditionalresourcesbasedongrade,
usability,etc.

9. RESOURCES CLASSIFICATION SYSTEMS
Priorto1981,therewasnonationally
acceptedsystem.
Differentagenciesfolloweddifferent
systems (e.g.USGS, Russian)
terminologicallyandtoalargeextent
definitively.
In1981,asystemwasstandardized&
adaptedtotheNationalMineral
InventorydatabaseofIBM.

10. Evolution of UNFC concept
Inthechangedscenarioofglobalizationand
liberalizationregimeofmarketeconomy,necessity
ofhavinguniversallyunderstandableand
acceptablesystemforclassificationofreservesis
felt.
Infactasearlyas1993,definitionofUNFCfound
acceptablebyJohannesburgandBrusselStock
Exchangesincasesrelatedtoinvestmentby
multinationalentrepreneurs indeveloping
countries.

11. Evolution of UNFC concept
Initiallyintheyear1992threedimensionalsystemof
classificationofresourceswereintroducedinGermanyfirst
forgroundwater,andlaterforsolidminerals.
In1997theEnergyDivision,UnitedNationsEconomic
CommissionforEurope(UNECE)Genevacirculatedadraft
UNFCformineralresourcesfortrialapplicationin57
depositsidentifiedindifferentcountries.
InNovember,1999,decisionwastakeninGenevaconference
ofUNECEonglobaladoptionandimplementationofUNFC
basedon3digitcode.

12. Evolution of UNFC concept
ThissystemknownasUnitedNationsFramework
Classification(UNFC)wasfinallyadoptedinthis
meeting.
Accordingly,theMinistryofMineson30thMay,
2000constitutedacommitteecomprisingmembers
fromvariousgovernmentorganizationsandmining
industrytoformulatefieldguidelinesfor
implementationofUNFCinexplorationandmineral
resourceestimationinIndia.

13. IMPLEMENTATION OF UNFC
To implement UNFC …
MinistryofMines,Govt.ofIndiaconstituteda
Committeetoformulatefieldguidelinesfor
mineral resource estimationinIndia.
Thecommitteehasidentifiedseventypesof
mineraldepositswithexplorationnorms.

14. SEVEN TYPE OF DEPOSITS
(i)Stratiform, Stratabound and Tabular Deposits of Regular
Habit.
(ii)Stratiform, Stratabound and Tabular Deposits of Irregular
Habit.
(iii)Lenticular Bodies of All Dimensions including Bodies
Occuring enchelon, Silicified Linear Zones of Composit
Veins.
(iv)Lenses, Veins and Pockets; Stock-works, Irregular
Shaped Modest to Small size Bodies.
Contd…

15. SEVEN TYPE OF DEPOSITS
(v)Gem-stones and Rare Metal Pegmatites, Reefs and Veins.
(vi)Placer and Residual Mineral Deposits of Hill and Valley
Wash.
(vii)Dimension stones.
Accordingly, field guidance was formulated for each type of deposit. Parameters/components
considered for formulation of field guidance /
to assign different level of codes for economic, feasibility and geological axis
are basic requirement for classifying reserves under UNFC.

16. UNFC CONCEPT IMPLEMENTATION
AfteradoptionofUNFCbyIndia,anamendmentin
MCDR,1988wasnotifiedon17/4/2003which
makesitstatutoryforallnoncoalmajormineral
lesseestofurnishreserveasperUNFCin
AnnualReturns,
MiningPlans/SchemeofMining
PLReports

17. Advantages of UNFC
It is an internationally uniform system
based on market economy criteria.
It enhances international communications.
It is simple and easy to use.
It is easily understandable across the globe
by all the countries.

18. Advantages of UNFC
Itprojectsthetrueworthofaresource.
Itisaflexiblesystemmeetingthe
requirementsforapplicationsonnational,
companyorinstitutionallevel.

19. TERMINOLOGY AS PER UNFC
United Nations Framework Classification (UNFC)
provides an internationally uniform system of
classification of reserves.
UNFC is three-digit code bases system
Economic axis (E) -the first digit from left to
right
Feasibility axis (F) the second digit and
Geological axis (G) is the third digit.

20. THREE AXES OF UNFC

21. TERMINOLOGY AS PER UNFC
In UNFC there are three levels for
economic and feasibility axis i.e. 1,2 and
3 (in decreasing order).
However, four levels for geological
axis i.e 1,2,3 and 4 (in decreasing
order).

22. LEVELS OF ECONOMIC, FEASIBILITY AND GEOLOGICAL
AXES

23. TERMINOLOGY AS PER UNFC
Code Economic
Axis
Feasibility
Axis
Geological Axis
1 Economic Feasibility
Study &
Mining Report
Detailed
Exploration
2 Potentially
Economic
Pre-
Feasibility
Study
General
Exploration
3 Intrinsically
Economic
Geological
Study
Prospecting
4 - - Reconnaissance

24. LEVELS OF ECONOMIC, FEASIBILITY AND
GEOLOGICAL AXES

25. STAGES OF GEOLOGICAL AXIS
Thesefourstagesofexplorationisnotnewonethe
sameispracticedintheexistingsystemof
classificationofreservesi.e.NationalClassification
BISNo.12595(1989).
For better understanding let us compare these four
stages of exploration of geological axis under UNFC
with National classification of reserves.

26. STAGES OF GEOLOGICAL AXIS
GEOLOGICAL AXIS OF
UNFC
NATIONAL
CLASSIFICATION FOR
RESVES ESTIMATION
LEVEL OF
PERMISSIBLE ERROR
G1 Detailed
exploration
Developed
(0 -10%) 0 to 10%
G2 General
exploration
Proved
(10–20%) 10 to 20%
G3Prospecting Probable
(20-30%) 20 to 30%
G4Reconnaissance
Possible
(30-50%)

27. •In the new system of classification of reserves
under UNFC, economic viabilityof the deposit
plays major role.
•Estimates of deposits, which are economically
viable, are classified as Reservesand remaining
are placed under Resources.
•Economicviabilityisassessedthrough
FeasibilityStudy.
TERMINOLOGY AS PER UNFC

28. F 3
GEOLOGICAL
STUDY STAGE
•A Geological Study is an initial evaluation of
Economic Viability.
F 2 -
PREFEASIBILITY
STUDY STAGE
•A Prefeasibility Study provides a preliminary
assessment of economic viability
•It summarizes all geological, engineering,
environmental, legal and economic information.
Prepared based on Detailed/General Exploration,
F 1
FEASIBILITY STUDY/
MINING REPORT
•A Feasibility Study assesses in detail the technical
soundness and Economic Viability
•The study constitutes an audit of all geological,
engineering, environmental, legal and economic
information
•Costdatamustbereasonablyaccurate(usually
within10%),andnofurtherinvestigationsshouldbe
necessarytomaketheinvestmentdecision.
To know the economic viability feasibility study is
essential, which comprises three stages:-
STAGES OF FEASIBILITY ASSESSMENT

29. •E 3 -INTRINSICALLY ECONOMIC STAGE
Nofeasibilitystudyorpre-feasibilitystudyconducted.Detailed
informationonadepositisavailablebasedonGeologicalStudy.
E 2POTENTIALLY ECONOMIC STAGE
•Feasibility or Pre-feasibility study results indicate the deposit or
part of it can be mined profitably at present and in near future.
•E 1 -ECONOMIC STAGE
FeasibilityandPre-feasibilitystudyresultsindicatethedeposit
canbeprofitablyminedunderthepresenteconomic,
technological,ecologicalandpoliticalconditions
STAGES OF ECONOMIC ASSESSMENT

30. •Incombinationoflevelofstudyconductedinthethree
axes,statusofclassificationofreserves/resourcesis
assigned.
•UnderUNFC,togetstatusofreserveseconomic
viabilityisessential,otherwiseitwillbeclassified
underresources.
(i.e economically minable part of resources is only reserves under UNFC)
TERMINOLOGY AS PER UNFC

31. Categories of UNFC and their codes
1.Reconnaissancemineralresource(334):
Itisbasedonregionalgeologicalstudiesandmapping.
Airborneandindirectmethods,preliminaryfieldinspection
andlimitedinformation.
2.Inferredmineralresource(333):
Itisbasedonestimationwithalowlevelofconfidenceand
ofintrinsiceconomicinterestbasedonprospecting,outcrop
identification,indirectmethodandlimitedsampling.

32. Categories of UNFC and their codes:
3.Indicatedmineralresource(332):
Itisbasedonwhichtonnage,shape,gradecanbeestimated
withreasonablelevelofconfidence.Itisgenerallybasedon
generalexploration.Itwillopenwayforpreliminarystudy
anddetailedexploration.
4. Measured mineral resource (331):
A mineral resource for which tonnage, grade, shape etc. are
estimated with a high level of confidence.

33. Categories of UNFC and their codes
5.Provedmineralreserve(111):
Itistheeconomicallymineablepartofameasuredmineral
resource.Itincludesdilutingmaterialsandallowancesforlosses.
Itmaybedemonstratedtobeeconomicallymineablebya
feasibilitystudyoractualminingactivity.
 6.Probablemineralreserve(121&122):
Itiseconomicallymineablepartofanindicatedandsometimes
measuredmineralresource.Itincludesdilutingmaterialsand
allowancesforlosses.Itmaybedemonstratedtobeeconomically
mineablebyapre-feasibilitystudycarriedoutatdetailed
explorationandgeneralexplorationstages.

34. Categories of UNFC and their codes
7. Pre-feasibility mineral resource (221 and 222):
Itisthatpartofanindicatedandsometimesmeasuredmineral
resourcethathasbeenshownafterapre-feasibilitystudyhasbeen
carriedouttobenoteconomicallymineableatthepresenttime.
Itmaybeduetolegal,environmental,socialandgovernment
factors.
8. Feasibility mineral resource (211):
Itisthatpartofmeasuredmineralresourcethathasbeenshown
afterafeasibilitystudyhasbeencarriedouttobenoteconomically
mineableatthepresenttime.Itmaybeduetolegal,
environmental,socialandgovernmentfactorsbutchancesof
becomingeconomicallyviablesubjecttochangesinabovementioned
factors.

35. UNFC CODES FOR VARIOUS CATEGORIES OF
RESERVES/ RESOURCES
1 Economically minable part
of Resources
Proved Mineral Reserves 111
Probable Mineral Reserves 121, 122
2Potentially Economic Feasibility Mineral Resource 211
Pre-Feasibility Mineral
Resource
221, 222
3Intrinsic economic interest,
reasonal prospect for
eventual economic
extraction
Measured Mineral Resources 331
Indicated Mineral Resources 332
Inferred Mineral Resources 333
4Reconnaissance Resource 334

36. CONCLUSIONS
Indiansystemofclassificationofmineralresourceswas
mainlybasedonthegeologicalexplorationandverylittle
considerationwasgiventothetechno-economiccriteria.
Asaresult,whiletheinventoryofmineralresources
classifiedunderIndiansystemgivessufficientideaaboutthe
studiesofgeologicalexplorationinadeposit,itdoesnot
projectthetruetechno-economicworthofresource
estimationeithertothepolicyplannersortotheinvestors.
TheUNFCsystemontheotherhandplaysequalandadequate
importancetotechno-economiccriteriaandgeological
exploration.Consequently,resourcesclassifiedunderUNFC
systemshouldprojectthetechno-economicworthofa
depositconsiderablybetterthantheearliersystem.