February Newsletter

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The opinions expressed in this issue are those of the persons concerned and are not those of Mica Inc., its Directors or Associates


Best wishes to all of our members for 2014. We hope the New Year will bring more promise and optimism than the last!

For us, 2013 was in many ways a lost year, spent unsuccessfully trying to reach some form of cooperation agreement with the AusIMM. Eventually, it was not to be. That is why we held off issuing Registration fees during the last two years.

For those members who missed the AGM in Sydney on 20th November last, the Chairman’s address is attached to this Newsletter. That address stated our position and immediate plans, and clarified the final arrangements surrounding our long running negotiations with the AusIMM. Briefly re- stated, our immediate plans for 2014 are as follows:

  • Announcement of cooperative arrangements with AIMVA ( Australasian Institute of Minerals Valuers & Appraisers)
  • Re-vamping of the website;
  • Updating our membership and Issuing of 2013 and 2014 Register fees;
  • Finalisation of the Consultant’s Handbook;
  • Event planning; and
  • 2014 calendar planning.

Underpinning these plans is a desire to offer a meaningful association for senior minerals consultants and hopefully an additional pathway for consulting CP’s who reach the 10 year experience requirement in order to join MICA.

For 2014, the Board is unchanged, with the addition of the 2012 MICA medallist, Carlos Sorentino, who has re-joined us.

Following the return of our original funds from the AusIMM, and as at 20th December 2014, our funds in hand stood at $18,879.49 after settlement of all accounts outstanding. From this starting point, Registration fees for 2013 provide our initial financial foundation, which we intend to grow from other income-bearing activities, such as events and publications.

In the paragraphs which follow, each of the above plans will be expanded on, in the hope that you will see value in continuing your MICA membership and/or Registration.


The MICA Board has negotiated a reciprocity agreement with the Australasian Institute of Minerals Valuers & Appraisers, AIMVA.AIMVA objectives are:

  • To advance the profession of Valuing and Appraising Minerals and Minerals Assets;
  • To establish qualifications for Mineral Valuers and Appraisers;
  • To certify the qualifications and experience of Minerals Valuers and Appraisers to the public;
  • To promote high standards of ethical conduct amongst the Members and within the profession of Minerals Valuers and/or Appraisers;
  • To provide a service to those persons requiring competent, reputable, reliable and unbiased Minerals Valuers or Appraisers;
  • To adopt such measures and to take such steps and do all such things as may be conducive to the promotion of the interests of the Members.

AIMVA issues two types of accreditation: Certified Professional Appraisers and Certified Minerals Valuers. These accreditations are recognised for the purposes of signing valuations and technical reports of valuation in Australia, Canada, Hong Kong and Singapore. Other jurisdictions are been added as AIMVA establishes reciprocal agreements in other countries.AIMVA aims for its Members to provide to market participants, regulators, kindred societies and the public with the highest standards of expertise and probity availed by qualified professionals with a minimum of 10 years’ experience, offering credible and reliable opinions – independent & objective.AIMVA’s objectives are that its Members will provide reliable, rational, realistic & reasonable reports from reputable, competent and uncompromised Minerals Appraisers and Valuers.AIMVA Membership will provide access to the following benefits:

  • Entry on a detailed Internet-searchable AIMVA Register
  • To be referred work when potential clients contact AIMVA
  • Bibliography access
  • Mineral Valuation Handbook
  • Access to a Mentor Panel
  • AIMVA Newsletter: to allow members to keep abreast of global technical assessment and mineral asset valuation developments, including updates on relevant legal cases & legislation and CPD opportunities.
  • AIMVA Lobbying & Advocacy benefits
  • Mineral Property Transactions Database
  • Client Documentation Templates
  • Assistance with fee-setting, debt recovery, confidentiality clauses, disclaimers, etc. The agreement of collaboration between AIMVA and MICA establishes that:
    • The Boards of AIMVA and MICA will seek to collaborate with each other, to develop joint initiatives of benefit to the members of both institutions.
    • AIMVA is offering to grandfather MICA members as AIMVA Certified Professional Appraisers (those involved in the preparation of due diligence and technical assessment reports, VALMIN Code Cl. 11) with the postnominal MAIMVA(CPA).
    • MICA members opting to avail themselves of this opportunity will do it at no extra cost. They will need to submit only an AIMVA Membership Application Form for the Register, but will not require sponsors, or to undergo the acceptance procedures required for membership.
    • Those MICA members wishing to be accredited as Certified Minerals Valuers will be required to submit a Membership Application Form and to undergo the acceptance procedures required for membership.
    • In reverse, AIMVA members will be able to join MICA and be in the MICA Register at no extra cost to them.
    • This offer is available until the 1 July 2014.
    • This Agreement will be reviewed by MICA and AIMVA within one year of its implementation.

THE MICA WEBSITE:   Not much happened with the site in 2013, other than the AusIMM editing themselves out of it! With the way now clear, we have assumed control of the management and hosting of the site and will begin its refreshment immediately. We plan to add a host of new features, as well as a member’s blog, whilst retaining the site’s basic functionality. John Dunlop will assume responsibility for this project.

MICA MEMBERSHIP:  We have assumed that all of the “old” MICA members are automatically members of the “new” MICA. The MICA Register has been returned to us and we have recently “cleaned” it and updated our member address list as well.We are therefore in a position to issue Register fee notices.  In the wake of our problems with The AusIMM we are offering a combined 2013/14 registration fee of $200; no fee for members not on the Register. Together with this, is the option to become part of AIMVA as a Mineral Valuer or Appraiser, as outlined earlier in this newsletter. Renewal notices will be sent out in the near future.There are several options available to pay any fees due: you can simply wait for your fee notice; or make an EFT payment of $200 to the MICA bank account, adding your name to the reference line. The bank account details are as follows:
Bank:  ANZ 388 George St, Sydney, NSW, 2000
Branch No. (BSB):           012-006
Account No:                    2841 25867

Help us to re-establish ourselves with your support… we have the enthusiasm, commitment and energy to make the new MICA more relevant than ever!


 Publication of the MCH was held over last year due to the then prevailing events. None the less, we hope to get it out this year, as long as the publishing costs are not excessive and we can attract some sponsorship from the larger consulting houses.

Not surprisingly, the delay in going to print has prompted revision of some chapters where, for example, social media developments have further evolved. This work can be completed fairly quickly.The handbook has been written more or less as a primer for younger mineral consultants who may be interested in establishing their own consultancy, or for more experienced consultants who might be interested in the odd specific topic, such as warranties and indemnities.We have yet to address the handling of sales, but you can be sure that the handbook will be available, following its launch, through the re-vamped website which will feature an on-line shop of sorts.


Your board is unanimous in the view that MICA must hold regular technical events which are of relevance to the membership. However, the aim will be to concentrate on narrower technical issues (with a necessarily smaller attendance) as opposed to more general themes (which usually typify larger conferences). It is also likely that these events will be held in conjunction with various kindred bodies.

The following technical issues are under consideration for this year:

  • The role of Inferred Resources in the new JORC Code and their relationship to aspects of the VALMIN Code;
  • Inferred Resources and International Accounting Standards: When do Inferred Resources have a value?

Other topics are also being gathered for consideration so feel free to email us with any ideas you may have to mica.consultants@gmail.com


The new MICA logo appears at the top of this newsletter. How did this come about? The answer lies in the claim by the AusIMM that it owned the old logo – and under the terms of our settlement agreement, we were to agree to surrender it to the Institute and ask our members not to use it.

We quickly put together a (rushed and rather crude) replacement, which will have to serve us until we can arrive at something better. It is not our key priority for now, but members should be aware that the old logo is no longer MICA’s and avoid its use.

Once the logo is finalised, we will need to issue a new electronic seal to all members on the Register (and any non-Register members who would like one). An example of the old seal is shown below:

Old MICA Seal


The 2012 Medallist, as most of you now know, was Dr Carlos Sorentino. His citation is reproduced below and will eventually join the earlier medallists in a gallery within the new website.The Medal’s Citation reads:

The fifth MICA Medal is awarded to Dr. Carlos Sorentino In recognition of the quarter of a century’s service that Carlos has given to MICA,playing a leading role in promoting professionalism amongst consultants as well as championing a wide range of issues of significance to consultants, amongst them environmental economics in the mining industry, mineral valuation and professional indemnity insurance.He has served MICA as Chairman and hasrepresented the Association on a range of committees including the VALMIN Committee, The AusIMM Ethics Committee, as foundation Chair of the Board of Chartered Professionals, the Emerging Issues Committee, the Joint Engineers Australia/AusIMM Committee, a number of conference committees and as a Councillor of The Institute.

The previous medallists in chronological order are:

2008       Dr Kevin Rosengren

2009       Dr Brian White

2010       Mike Lawrence

2011       George Edwards

2012       Carlos Sorentino

No award was made in 2013. Details concerning this prestigious award will be included in the website update, together with instructions on how to make a nomination.


The general email address for MICA mica.consultants@gmail.com is still operational, but may change with the new website hosting. We will advise you if this happens.  Other email addresses are as follows:

Chairman John Dunlop jsdunlop@bigpond.com
Secretary Peter Stitt peterhstitt@aol.com
Directors Darren Herdman dherdman@slrconsulting.com
Tony Osman minconindo@iinet.net.au
Carlos Sorentino cmrs26@gmail.com
Des White deswhite2@bigpond.com


Welcome to the 2013 AGM of MICA.As most of you will now know, 2013 saw the end of a drawn out affair with the AusIMM, in which we wrestled with their model for the new ConSoc in an attempt to find a best fit solution for all. After some 5 years attempting to get a sensible merger to work, the parties parted company, thus returning MICA to its independent status as MICA Inc.Last month, MICA’s original fund balance was returned to us, so we are now officially back in business!Our immediate steps will now include the following:

  • A member flier or newsletter to update the membership;
  • Announcement of cooperative arrangements with AIMVA;
    • Re-vamping of the website;
    • Updating our membership and Issuing of 2013 Register fees;
    • Finalisation of the Consultant’s Handbook;
    • Event planning; and
    • 2014 calendar planning.

I take this opportunity to thank the 2013 Board of Directors for staying the course through a difficult period. The way is now clear for us to develop a worthwhile continuing development model for our experienced consulting base, something we were unable to guarantee in the previously recommended merger with the AusIMMConSoc.Finally, congratulations to Carlos Sorentino, our fifth MICA Medallist on joining the “MICA Hall of Fame”.The board looks forward to your continued support in 2014 and wishes you all a safe and enjoyable end of year break.


 Many MICA members will be involved in mineral asset valuation from time to time. Often, such valuations are intended for internal purposes, in which instance the valuations need not necessarily be compliant with the VALMIN Code (though it is advisable that they are). However, when the valuations are to be relied upon in the public domain, such as in mergers, acquisitions, asset sales, IPO’s or the like, a VALMIN Code compliant valuation is mandatory.
Whilst all of this is not news to our members, what is the case when you are required by your client to provide a valuation under a foreign jurisdiction? We know, for example, that the Toronto exchange (the TSX) has rules similar to our own, but what is the situation in the emerging major Asian exchanges in Singapore1 and Hong Kong? This short article will set out the author’s experience and understanding, as regards reference to and use of the VALMIN Code within the realms of these two exchanges.  As a starting point, it may be useful to offer an opinion as to the reasons for the “rise and rise” of these exchanges in comparison to our local exchange. The reasons, in this author’s view are funding sources and the People’s Republic of China. We all recognize that the Asian exchanges have links to far greater pools of finance than here, but what is the relevance of China? The answer seems to be linked to China’s voracious appetite for minerals and a related mineral asset acquisition strategy that has put them at the behest of the exchanges every time they wish to acquire a “publicly owned” asset. Given this situation, and the relationship between the “mainland” and the Special  Autonomous Region (Hong Kong Island), it is little wonder that the HKX has become a focus (but not the only one) for Chinese mineral asset activity.
Following on from the above, the author’s experience with these two Asian exchanges is that their listing rules (promulgated fairly recently – 2012 in the case of the SGX) broadly speaking are aligned with those of the ASX. The SGX rules2 and the HGX rules3 may be found on the internet and may easily be compared in this regard. The main point of difference, perhaps, is the differing competency requirements – not so much the experiential requisites (which are broadly similar) – but rather how they are presented to the exchanges concerned.  Sounds familiar? Many of us will recall instances where, despite being a “ROPO” country, the exchange concerned demanded additional clarification of the Valuers’ competency and certification. Often, all that is needed is that the information required be presented in a particular format, or in satisfaction of a particular form or listing rule, which must be quoted. 1www.sgx.com  2http://rulebook.sgx.com/en/display/display_main.html?rbid=3271&element_id=4830   3http://www.hkex.com.hk/eng/rulesreg/listrules/rulesandguidelines.htm

At this point, readers will be relieved to read that, if you are currently accepted by the ASX or the TSX as competent mineral asset valuer (valuator in Canada), you are unlikely to encounter any major difficulties with the SGX or HKX after carefully following their relevant competency requirements  and complying with them in the exact manner as set out in the relevant listing rules. It is therefore recommended that the competency issue be established with the exchange at the outset, as opposed to post-submission of the public documents concerned with the transaction.

As a final observation, the recently formed Australasian Institute of Mineral Valuers and Appraisers (AIMVA4) has a formal process for accrediting mineral valuers in this country as “Certified Mineral Valuers”. Such members of AIMVA are entitled to use the post-nominals MAIMVA(CMV). MICA members are also entitled to become “appraisers” simply by making application as outlined elsewhere in this newsletter. This author’s experience with presentation of the “AIMVA CMV” to the two Asian exchanges referred to in this article, as well as the TSX, has been that these exchanges have accepted that certification (though in all cases, a copy of the certification certificate was required to be submitted). Whether such competency would have been accepted by the Asian exchanges on the declaration of being a Fellow of the AusIMM alone (as does the TSX) is uncertain. If any members have any experiences which might throw further light on this issue – or any other matter related to this topic, they are welcome to contact the writer.

Similar topics of interest will be posted on the new website blog.


Articles of general interest to MICA members are called for. Please send to the Editor MICA Newsletter at minconindo@iinet.net.au


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