Key Players in Shaping and Developing the Geological Exploration Assessment System in Russia: AOON "NAEN" and MOO "OERN"

Thesaurus

National Reporting Organisation (NRO) - a unique structure, established in each country according to the international CRIRSCO rules for coordinating reporting in the field of mineral resource use. The number of NROs in each country is limited – only one organization is possible. In Russia, its role is performed by the Association of Mineral Resource Organizations "National Association for Mineral Resource Expertise" (AOON «NAEN»).

Recognised Professional Organisation (RPO) - an organization approved by the National Reporting Organisation within the international CRIRSCO rules, promoting the development of a professional community in the field of mineral resource use. The number of RPOs in each country is not limited. Currently, there is one professional RPO organization in Russia - the Society of Experts in Subsoil Use (MOO "OERN").

AOON «NAEN» and MOO "OERN": key organizations in shaping the assessment and audit system for geological exploration results and mining projects for solid minerals in Russia

In the era of globalization and increasing competition in the mineral market, reliable assessment of geological exploration results and mining projects for solid minerals becomes critically important. The Committee for Mineral Reserves International Reporting Standards (CRIRSCO) includes National Reporting Organisations (NROs) that develop codes, standards, and guidelines. CRIRSCO actively collaborates with international organizations such as ICMM, UNECE, IASB, and ISA.

Based on the established reporting codes of its member countries, CRIRSCO has developed an international reporting template (Template) aimed at assisting in the dissemination and promotion of effective, verified, advanced methods of public reporting on exploration results, mineral resources, and mineral reserves that are already widely accepted in national codes and reporting standards.

In line with the goals, objectives, and strategies of its members, CRIRSCO provides an international forum for NROs, including AOON «NAEN». The forum ensures consistency of reporting standards in the international environment and promotes the development of advanced international reporting practice. CRIRSCO encourages NROs to create and organize RPOs (professional communities) in the countries they are assigned to.

Two key Russian organizations, AOON «NAEN» (NRO) and MOO "OERN" (RPO), stand out for their professionalism, experience, and commitment to improving assessment and audit methods and tools in geological exploration and mining projects for solid minerals. The status of these organizations and the competence level of their experts are recognized by the following countries and organizations:

Countries:

1. Brazil;
2. India;
3. Turkey;
4. Colombia;
5. Australia (Australasia);
6. USA;
7. Canada;
8. United Europe;
9. Chile;
10. South Africa;
11. Russia;
12. Kazakhstan;
13. Mongolia;
14. Indonesia;

In the near future, China, the Philippines, and Kyrgyzstan will join.

Organizations:

1. European Federation of Geologists (EFG);
2. Geological Society of London;
3. Institute of Materials, Minerals, and Mining;
4. Institute of Geologists of Ireland;
5. Fennoscandian Association for Metals and Minerals Professionals;
6. Iberian Mining Engineers Board;
7. Financial Conduct Authority (FCA) of the United Kingdom;
8. Pan-European Reserves and Resources Reporting Committee (PERC);
9. Chilean Mining Commission (Commission Minera);
10. South African SAMREC/SAMVAL Committee;
11. Mining, Metallurgical and Geological Exploration Society.

AOON «NAEN»: National Reporting Organisation (NRO) for solid minerals in Russia

In connection with the lack of funding for scientific research, at the initiative of the Ministry of Natural Resources of the Russian Federation, on November 25, 2004, the "National Association for Subsoil Expertise" (NAEN) was founded. The main goal of NAEN is to develop norms, rules, standards, and methodologies, as well as to create the "Society of Russian Experts in Subsoil Use" (OERN) with the aim of:

1. Formalizing the activities of experts.
2. Centralizing and coordinating with Rosnedra to increase responsibility for the results of geological expertise.
3. Creating a center of competence and an authority responsible for the continuous professional development of experts.

Participation in OERN provided free membership based on recommendations from several professional members, as well as free training for OERN members with the "expert" status.

AOON «NAEN» is an internationally recognized National Reporting Organization (NRO) from Russia. Bringing together leading production companies, design, and expert institutions, it contributes to the creation of an efficient, innovative, and internationally integrated system for studying Russia's subsoil and developing its mineral resources through the collaboration of professionals in the field of subsoil expertise.

Thanks to international recognition, AOON «NAEN» represents the interests of Russia at the international level and participates in the management of CRIRSCO.

At the same time, the Association of Subsoil Use Organizations "National Association for Subsoil Expertise" maintains a list of recognized professional organizations (RPO) and adopted codes and standards for Russia, ensuring their compliance with CRIRSCO requirements, local markets, exchanges, or other regulatory authorities.

AOON «NAEN» aims to create a network of experts to consolidate advanced knowledge and expand innovations in geological research, development, and processing of minerals, ensuring the rational and integrated use of mineral raw materials.

The Association is responsible for maintaining, reviewing, and revising the standard it has created - the "NAEN" Code for reporting solid minerals in the territory of the Russian Federation, establishing unified requirements for disclosing information about reserves and resources, as well as geological and economic evaluation of mining projects, in accordance with the International Reporting Template, determining the frequency and scope of review. This promotes transparency and comparability of companies' reporting, strengthening trust between investors and market participants.

NAEN's tasks:

1. Developing proposals for improving the state expertise and evaluation system;
2. Developing and improving regulatory documents in the field of subsoil use;
3. Creating and optimizing a unified methodological base in Russia for assessment and expertise in the field of subsoil use;
4. Support in organizing work and developing the Society of Russian Experts in Subsoil Use;
5. Forming industry standards and technological requirements in the field of exploration, study, and evaluation of mineral resources;
6. Assisting subsoil users in preparing materials for state expertise;
7. Providing consultations in the field of audit and valuation of deposits, R&D, and other non-state functions;
8. Summarizing and disseminating best practices in geological study, economic evaluation, reserve calculation, industrial development, and technical solutions for deposit development;
9. Establishing and regulating mutually beneficial relationships between subsoil users;
10. Developing a concept for rational subsoil use;
11. Participating in the process of harmonizing Russian and international standards in the field of subsoil use;
12. Establishing mutually beneficial relationships with foreign subsoil users and organizations;
13. Protecting the interests of the Russian Federation at the international level within its competence;
14. Organizing and conducting training seminars, round tables, and conferences;
15. Informing subsoil users about the results of work through the media;
16. Developing publishing activities.

Each National Reporting Organization (NRO) includes Professional Organizations (RPO), membership in which is necessary to obtain the qualification of a Competent Person for preparing reports according to the Code or Standard supported by the respective NRO. Membership must be in an organization of the corresponding class or category. Currently, there is one professional RPO organization in Russia recognized by the Association of Subsoil Use Organizations "National Association for Subsoil Expertise" – the MOO "OERN".

MOO "OERN": Association of Experts in the Field of Subsoil Use (RPO)

Since 2007, the Society of Experts in Subsoil Use (OERN) has been actively operating in Russia, created by AOON «NAEN» on the initiative of the Federal State Unitary Enterprise State Commission on Reserves (Link to the original source)

As of today, the International Public Association "Society of Russian Experts in Subsoil Use" (MOO"OERN") is the only recognized professional organization (RPO) and is included in the registry of recognized professional organizations maintained by AOON «NAEN» (NRO). A recognized professional organization (RPO) is associated with another NRO and meets the requirements of the recognizing NRO, whose members are recognized as competent persons for preparing reports according to the code/standard supported by the recognizing NRO.

As a recognized professional organization (RPO), MOO "OERN" performs the following functions:

• Checking candidates for Expert status to determine the compliance of their qualifications;
• Organizing the admission committee;
• Maintaining a register of experts;
• Ensuring continuous education and professional development;
• Investigating complaints on ethical issues and imposing disciplinary sanctions;
• The right to expel a member from the organization.

The main mission of OERN is to unite participants based on shared interests to satisfy spiritual and intangible needs, as well as to promote the development of experts' work in the field of subsoil use and improve professional activities in this area. The main goals of OERN also include creating a unified base of regulations and standards, accrediting experts, harmonizing national and international standards, preparing young experts, developing institutions, and enhancing qualifications through scientific and practical events.

Tasks of OERN:

1. Facilitating the development of the Russian Competent Persons Institute: Ensuring conditions for independent professional assessment of the resource base of explored and developed deposits of solid minerals, hydrocarbon resources, and underground waters.
2. Creating a consultative and informational infrastructure: Enhancing the efficiency of professional activities of society members and providing practical assistance.
3. Providing consultation and legal support: Ensuring support for society members in accordance with the legislation of the Russian Federation.
4. Protecting the interests of society members: Implementing protection in the manner prescribed by the legislation of the Russian Federation.
5. Facilitating continuous professional development: Organizing scientific and practical seminars, conferences, training courses, and professional development for specialists.
6. Supporting the efforts of mining and geological professions: Summarizing and promoting the best domestic and international practices in geological exploration and natural resource assessment.
7. Developing cooperation and exchanging experience: Interacting with international organizations to exchange experiences and strengthen cooperation in the mining and geological sphere.

NAEN-OERN System Activities: Main Achievements and Development Directions

Within the scope of NAEN-OERN system activities, in fulfillment of the organizations' charter goals:

• The Society of Russian Experts in Subsoil Use has been created and continuously developed: OERN has 1139 members, including sections for solid minerals, hydrocarbon resources, underground waters, and mineral resource economics. The organization is recognized by the global community, and 26 top-category experts are accredited as Competent Persons with the right to sign reports. Experts registered in RPO and included in NRO are recognized in other jurisdictions, including CRIRSCO and its members.
• A guide for harmonizing the Russian classification of solid mineral reserves and resources with the international CRIRSCO classification has been developed: The guide is officially recognized at the international level.

Developed is the Code of Public Reporting on Geological Exploration Results, Resources, and Reserves of Solid Minerals (NAEN Code): The Code is officially recognized by the global professional community and has become a permanent part of the CRIRSCO family. The "NAEN Code" is being updated and supplemented to comply with international reporting development trends.

Many educational events have been conducted and planned for discussion of current industry issues: The NAEN-OERN system organizes programs, forums, conferences, seminars, webinars, and roundtables to improve the qualifications of experts and specialists in the field of subsoil use, as well as to discuss current issues and prospects for the development of the industry.

These achievements and activities highlight the importance and relevance of interaction between the AOON «NAEN» and the MOO «OERN» in strengthening professionalism and developing the mining industry as a whole.

NAEN Code: A Fundamental Component in the System of Evaluation and Audit of Geological Exploration Results and Mining Projects for Solid Minerals

The Russian mining industry faces a number of problems, one of which is the low level of trust foreign evaluators have in reports from mining and exploration companies.

However, in 2011, 57 leading Russian raw material companies and major industry institutes, represented by AOON «NAEN», in collaboration with the Society of Russian Experts in Subsoil Use (OERN) and with the participation of CRIRSCO and the Pan-European Reserves and Resources Reporting Committee (PERC), developed the NAEN Code. Based on the CRIRSCO Public Reporting Template and the "Guide for Harmonizing Russian and CRIRSCO Reporting Standards" (2010), the NAEN Code establishes minimum requirements for public reports of Russian mining and exploration companies. Taking into account the peculiarities of the state subsoil use system, classification, and accounting of reserves, as well as forecast resources of solid minerals, this document makes the Russian classification more comprehensible to international auditors and resource and reserve evaluators.

The NAEN Code is a unique Russian national standard that complies with CRIRSCO principles and has international status. This standard plays a crucial role in the development of the Russian stock market and banking system, ensuring transparency and reliability of information on geological exploration and mining projects.

As a result of Russia's accession to CRIRSCO, the country's investment attractiveness has been increasing, and Russian innovative technologies in the field of solid mineral assessment have gained proper exposure on the world stage.

International regulators such as the European Securities and Markets Authority (ESMA) - European Union, British Columbia Securities Commission (BCSC) - Canada, Financial Conduct Authority (FCA) – United Kingdom, and Ontario Securities Commission (OSC) – Canada have already recognized the NAEN Code. It is intended for use by mining and exploration companies, project organizations, experts, and consulting firms.

The implementation of the NAEN Code in the reporting practices of Russian companies contributes to strengthening their reputation in the international market, increasing trust from foreign investors and partners, and improving the quality and standards of expertise in the field of subsoil use.

It is important to note that using the NAEN Code allows Russian mining and exploration companies to adapt their reporting to international standards, which promotes their more active interaction with the global community and successful attraction of foreign investments. Thus, the NAEN Code serves as an essential tool for the development of the Russian mining industry and strengthening its positions in the international arena.

Conclusion

In the context of the constant development and globalization of the solid mineral market, AOON «NAEN» and MOO «OERN» hold key positions in shaping the system of evaluation and audit of geological exploration results and mining projects in Russia.

Active collaboration with international organizations and leading experts in the field of subsoil use allows AOON «NAEN» and MOO «OERN» to improve methods and approaches to evaluation and audit, as well as to implement advanced international standards in their work. 

Overall, the role of AOON «NAEN» and MOO «OERN» in the development of the Russian system for evaluating and auditing Geological Exploration Results and mining projects for solid minerals is quite significant. Thanks to their activities, the transparency and reliability of information on reserves and resources are increased, which contributes to attracting investments in the industry and the stability of the solid mineral market, directly affecting the economic well-being of the country and the stability of its market.

Furthermore, AOON «NAEN» and MOO «OERN» play an important role in the training and professional development of personnel for the industry, ensuring a higher level of professionalism of specialists and experts involved in the evaluation and audit of Geological Exploration Results and mining projects.