KCMI (Code Indonesian Mineral Reserve Committee) is the standard reporting used in Indonesia to communicate the results of exploration, mineral resources, and mineral reserves to the public transparently and accountable.

Simply put, KCMI answers one important question:

How can investors, project owners, banks, and regulators trust the number of resources or reserves published by a mining company?

Without clear standards, any company can claim a different amount of resources using different methods, resulting in the difficulty of assessing the quality of a project and the risk of error becoming extremely high.

To address the problem, KCMI sets out principles of reporting that must be obeyed by companies and professionals involved in the drafting of technical reports.

KCMI governs three major categories:

Exploration Results (Exploration Results)

Information obtained from exploration activities such as geological mapping, drilling, sample harvesting and laboratory analysis -- at this stage there is not necessarily any resource that can be mined economically.

Mineral Resources (Mineral Resources)

The number of mineral and quality estimate that has a reasonable economical prospects for economic exploitation. The resources are divided into Inferno, Indicated, and Measured based on the geologic level of belief.

Mineral Reserves (Ore Reserves)

Part of the mineral resources that have been through technical and economic studies that are considered worth mining, the reserves are divided into the Probable Reserve and the Proved Reserve.

KCMI also requires that a published report be reviewed or signed by a Competent Person (CPI), a professional with a recognized relevant and certified experience.

In practice, KCMI has the same goal as the JORC Code in Australia, which is to increase transparency, materiality and competence in mining industry reporting.

Therefore, when you look at the resources or reserves statements compiled according to KCMI and are signed by the Competent Person, you get a much higher level of confidence in the quality of information used in investment decisions and project development.