Key players in shaping and developing Russia’s system for evaluating exploration results: NAEN, OERN, and important information about MOO “OERN”

ATTENTION
Information regarding unfair competition, deliberate public misrepresentation, and passing-off by the organisation MOO “OERN”

Shaping and developing the system for evaluating geological exploration: the role of NAEN and OERN

Thesaurus

National Reporting Organisation (NRO) – a unique structure designated in each country under CRIRSCO’s international rules to coordinate reporting in subsoil use. The number of NROs in each country is limited—only one organisation is possible. In Russia, this role is performed by the Association of Organisations in the Field of Subsoil Use “National Association for Subsoil Expertise” (NAEN).

Recognised Professional Organisation (RPO) – an organisation approved by the National Reporting Organisation under CRIRSCO’s international rules that supports the development of the professional community in subsoil use. The number of RPOs in each country is not limited.

NAEN and OERN: key organisations shaping the system for evaluation and audit of exploration results and mining projects for solid minerals in Russia

In an era of globalisation and growing competition in the minerals market, reliable evaluation of geological exploration results and mining projects for solid minerals is critically important. The Committee for Mineral Reserves International Reporting Standards (CRIRSCO) comprises National Reporting Organisations (NROs) that develop codes, standards, and guidelines. CRIRSCO actively collaborates with international organisations such as ICMM, UNECE, IASB, and ISA.

Based on the established reporting codes of its member countries, CRIRSCO developed an international reporting template (the Template) aimed at helping disseminate and promote effective, proven, leading practices for public reporting of exploration results, mineral resources, and mineral reserves, which are already widely accepted in national reporting codes and standards.

In line with the aims, objectives, and strategies of its members, CRIRSCO provides an international forum for NROs, including NAEN. The forum ensures consistency of reporting standards internationally and fosters the development of best practice in public reporting. CRIRSCO encourages NROs to establish and organise RPOs (professional communities) within their respective countries.

Two key Russian organisations, NAEN (NRO) and OERN (RPO), stand out for professionalism, experience, and commitment to improving methods and tools for evaluation and audit in exploration and mining projects for solid minerals. The status of these organisations and the competence of their experts are recognised by the following countries and organisations:

Countries:

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

Expected to join in the near term: China, the Philippines, and Kyrgyzstan.

Organisations:

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), United Kingdom;
8. Pan‑European Reserves and Resources Reporting Committee (PERC);
9. Chilean Mining Commission (Comisión Minera);
10. South African SAMREC/SAMVAL Committee;
11. Mining, Metallurgical and Geological Exploration Society.

NAEN: the National Reporting Organisation (NRO) for solid minerals in Russia

Owing to a lack of funding for research and development, and on the initiative of the Ministry of Natural Resources of the Russian Federation, on 25 November 2004 the “National Association for Subsoil Expertise” (NAEN) was founded. The main goal of NAEN is to develop norms, rules, standards, and methods, and to establish the “Society of Experts of Russia for Subsoil Use” (OERN) in order to:

1. Formalise expert activities.
2. Increase accountability for the results of geological expertise in a centralised manner and in alignment with Rosnedra.
3. Create a centre of competence and a body responsible for the continuing professional development of experts.

Participation in OERN envisaged free membership based on recommendations from several professional members, as well as free training for OERN members with “expert” status.

NAEN is the internationally recognised National Reporting Organisation (NRO) for Russia. Uniting major operating companies, design and expert institutions, it facilitates an effective, innovative, and internationally integrated system for studying the subsoil and developing Russia’s mineral resources by consolidating the efforts of professionals in subsoil expertise.

Thanks to its international recognition, NAEN represents Russia internationally and participates in CRIRSCO governance.

At the same time, the Association of Organisations in the Field of Subsoil Use “National Association for Subsoil Expertise” maintains the register of Recognised Professional Organisations (RPOs) and the accepted codes and standards for Russia, ensuring their alignment with CRIRSCO requirements, local markets, exchanges, and other regulators.

NAEN seeks to build a network of experts to consolidate advanced knowledge and scale innovation in geological research, development, and mineral processing, ensuring rational and comprehensive utilisation of mineral raw materials.

The Association is responsible for maintaining, reviewing, and revising its standard—the NAEN Code for public reporting on solid minerals within the Russian Federation—establishing uniform requirements for disclosure of reserves and resources as well as techno‑economic assessment of mining projects, in accordance with the International Reporting Template, defining the frequency and scope of revisions. This promotes transparency and comparability of company reports and strengthens trust among investors and market participants.

NAEN’s tasks:

1. Develop proposals to improve the state system of expertise and evaluation;
2. Develop and improve regulatory documents in subsoil use;
3. Create and optimise a unified Russian methodological base for evaluation and expertise in subsoil use;
4. Support the organisation and development of the Society of Experts of Russia for Subsoil Use;
5. Form industry standards and technological requirements for exploration, study, and evaluation of mineral resources;
6. Assist subsoil users in preparing materials for state expertise;
7. Provide consulting in audit and valuation of deposits, R&D, and other non‑state functions;
8. Aggregate and disseminate best practices in geological study, economic evaluation, resource/reserve estimation, industrial development, and technical solutions for field development;
9. Establish and regulate mutually beneficial relationships among subsoil‑use participants;
10. Develop a concept of rational subsoil use;
11. Participate in the harmonisation of Russian and international standards in subsoil use;
12. Build mutually beneficial relationships with foreign subsoil users and organisations;
13. Protect the interests of the Russian Federation internationally within its competence;
14. Organise and conduct training seminars, round tables, and conferences;
15. Inform subsoil users of results via the media;
16. Develop publishing activities.

Each National Reporting Organisation (NRO) includes Professional Organisations (RPOs), membership in which is required to obtain Competent Person status for reporting under the Code or Standard supported by the respective NRO. Membership must be in an organisation of the appropriate class or category. At present in Russia there is one RPO recognised by the Association of Organisations in the Field of Subsoil Use “National Association for Subsoil Expertise” — OERN.

OERN: the association of experts in subsoil use (RPO)

Since 2007, the Society of Experts for Subsoil Use (OERN) has been active in Russia, established by NAEN at the initiative of FGU GKZ (Link to the original source)

To date,  the “Society of Experts of Russia for Subsoil Use” (OERN) is the only Recognised Professional Organisation (RPO) and is included in the register of RPOs maintained by NAEN (the NRO). A Recognised Professional Organisation (RPO) is associated with an NRO and meets the requirements of the recognising NRO, whose members are recognised as Competent Persons for reporting under the code/standard supported by that NRO.

As a Recognised Professional Organisation (RPO),  OERN performs the following functions:

• Screening candidates for Expert status to confirm qualification;
• Organising the admissions committee;
• Maintaining the expert register;
• Ensuring continuing education and professional development;
• Investigating ethics complaints and imposing disciplinary sanctions;
• Right to expel a member from the organisation.

The core mission of OERN is to unite participants on the basis of shared interests to meet spiritual and non‑material needs and to foster the work of experts in subsoil use and improve professional practice in this field. OERN’s key goals also include establishing a unified base of norms and standards, expert certification, harmonising national and international standards, preparing young experts, developing institutions, and advancing qualifications through scientific and practical events.

OERN’s tasks:

1. Promote the development of the Russian Competent Persons institute: ensure conditions for independent professional evaluation of the resource base of explored and developed deposits of solid minerals, hydrocarbon resources, and groundwater.
2. Create a consultative and information infrastructure: enhance the effectiveness of members’ professional activities and provide practical assistance.
3. Provide consulting and legal support: support members in accordance with the legislation of the Russian Federation.
4. Protect members’ interests: provide protection as prescribed by the legislation of the Russian Federation.
5. Support continuing professional development: organise scientific‑practical seminars, conferences, training, and upskilling for specialists.
6. Support mining‑geological professions: compile and promote best domestic and international practices in geological study and natural resource evaluation.
7. Develop cooperation and exchange of experience: engage with international organisations to exchange experience and strengthen cooperation in the mining‑geological sphere.

Activities of the NAEN–OERN system: key achievements and development areas

Within the NAEN–OERN system, in pursuit of the organisations’ charter objectives:

• The Society of Experts of Russia for Subsoil Use has been created and is continuously developing: OERN counts 1,139 members, including sections for solid minerals, hydrocarbons, groundwater, and mineral economics. The organisation is recognised by the global community, and 26 top‑category experts are accredited as Competent Persons with signing rights. Experts registered with an RPO and included by an NRO are recognised in other jurisdictions, including CRIRSCO and its members.
• A guideline has been developed to harmonise the Russian classification of reserves and resources of solid minerals with the CRIRSCO international classification: the guideline is officially recognised internationally.
• The Public Reporting Code for Exploration Results, Mineral Resources and Reserves of Solid Minerals (the “NAEN Code”) has been developed: the Code is officially recognised by the global professional community and has permanently joined the CRIRSCO family. The NAEN Code is being updated and supplemented to reflect international reporting trends.
• Numerous educational events have been held and are planned, along with discussion of current industry issues: the NAEN–OERN system organises programmes, forums, conferences, seminars, webinars, and round tables to upskill experts and specialists in subsoil use and to discuss current issues and prospects for industry development.

These achievements and lines of activity underscore the importance and relevance of cooperation between NAEN and OERN in strengthening professionalism and advancing the mining industry at large.

The NAEN Code: a foundational component in the system for evaluating and auditing exploration results and mining projects for solid minerals

Russia’s mining sector faces a number of challenges, one of which is the low level of trust by foreign evaluators in the reports of mining and exploration companies.

However, in 2011, 57 leading Russian resource companies and major sectoral institutes represented by NAEN, together with the Society of Experts of Russia for 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 “Guideline for Harmonising the Reporting Standards of Russia and CRIRSCO” (2010), the NAEN Code sets minimum requirements for public reports by Russian mining and exploration companies. Taking into account the specifics of the state system of subsoil use, classification and accounting of reserves, as well as forecast resources of solid minerals, this document makes the Russian classification more understandable to international auditors and resource/reserve evaluators.

The NAEN Code is Russia’s unique national standard consistent with CRIRSCO principles and holding international status. This standard plays a key role in the development of the Russian stock market and banking system by ensuring transparency and reliability of information on exploration and mining projects.

As a result of Russia’s entry into CRIRSCO, the country’s investment attractiveness began to increase, and Russian innovative technologies in the evaluation of solid minerals received appropriate visibility on the world stage.

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

Implementing the NAEN Code in the reporting practice of Russian companies helps strengthen their reputation in the international market, increase confidence from foreign investors and partners, and improve the quality and standards of expertise in subsoil use.

It is important to note that using the NAEN Code enables Russian mining and exploration companies to align their reporting with international standards, facilitating more active engagement with the global community and successful attraction of foreign investment. Thus, the NAEN Code is a crucial instrument for the development of Russia’s mining sector and the strengthening of its position internationally.

Conclusion

In the context of continuous development and globalisation of the solid‑minerals market, NAEN and OERN occupy key positions in shaping the system for evaluating and auditing exploration results and mining projects in Russia.

Active cooperation with international organisations and leading experts in subsoil use enables NAEN and 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 NAEN and OERN in developing Russia’s system for evaluating and auditing exploration and mining projects for solid minerals is highly significant. Their activities increase transparency and reliability of information on reserves and resources, which helps attract investment to the sector and stabilise the solid‑minerals market, directly affecting the country’s economic well‑being and market resilience.

In addition, NAEN and OERN play an important role in training and upskilling personnel for the industry, ensuring a higher level of professionalism among specialists and experts engaged in evaluating and auditing exploration and mining projects.