Development of KCMI Code

History of KCMI Code

• Discourse created a reporting code started before 1998
• The Busang case (Bre-X / 1993-1997), starting at a stock price of less than CAD $ 1.00 peaked at CAD $ 286.50 in May 1996 (The Biggest Mining Scandal of All Time)
• There is a desire from professionals to have a code of high quality reporting of mineral resources and reserves and some code choices as a reference (South Africa, Canada, Australia), Decided to adopt JORC from Australia because the JORC Code is considered the most comprehensive
• MoU with AusIMM (July 1998)
• MoU with MICA (April 2004)
• The 2011 KCMI Code Convention 2011

Progress of KCMI Code Implementation: 2011

• Recognition of reporting of mineral and coal reserves by CPI in BEI Regulation no. 1-A.1 (effective December 1, 2014)
• BEI Cooperation with IAGI / PERHAPI, effective December 11, 2014, 5 year period, a.l. elements of IAGI / PERHAPI in the IDX Working Team who evaluate potential mining issuers
• Director General of Minerals and Coal Regulation no. 569 / DJB / 2015, effective April 2017 requires the reporting of HE, Resource and Reserve referring to KCMI and SNI Codes (Furthermore Minister Reporting Regulations)
• CP Implementation Committee of each IAGI and PERHAPI each have 196 CPI and 191 CPI
• The KCMI Code socialization program has been conducted since 2012
• The KCMI Code has been introduced in the CRIRSCO forum and Indonesia has been indicated as a potential member of CRIRSCO
• The KCMI code has been used by some by some mining companies.

Contents of KCMI Handbook

• Description of the Competent Person
• 'why, who, how'
• bonds: doing work, professional development, etc
• Ethics and discipline
• Ethics, Code of Ethics PERHAPI, Code of Conduct, Sanctions & Rehabilitation
• KCMI Code: 2011
• Code, definitions, instructions
• Table 1: check list of reporting criteria
• Appendix - attachment
• (a.l.) Common terms and equations

Systematics Code of KCMI: 2011

• Introduction, Scope
• Competence and Responsibility
• Term of Reporting and Preparation of General Reports
• Reporting for Exploration Results
• Reporting for Resource Estimation
• Reporting for Reserve Estimation
• Reporting for Resource and Reserves Estimation of Coal
• Reporting for Exploration Results, Resource and Reserves Estimation of Precious Stone
• Reporting for Exploration Results, Resource and Reserves Estimation of Industrial Mineral
• Table 1: 'Check list' for Criteria for Assessment and Reporting
• General Terms and Equations

Main Code-KCMI Principle: 2011

• Report reader (Investor & Adviser)
• To understand the report; sufficient information, clear presentation & not confusing (not manipulated) and not misled
• Transparency
• The report contains all relevant information that is reasonably and appropriately needed by investors and their professional advisors
• For appropriate and balanced investment decision-making
• Competent
• The work of 'Competent Person'
• Relevant relevant experience
• Responsible and accountable
• Bound code of ethics and organizational rules, catt. : Competent Person Indonesia (CPI) IAGI / PERHAPI

Characteristics of KCMI Code: Principles based code

The meaning is a Guideline consisting of principles (Code - Definition - Directive). KCMI Code: 2011 does not regulate the following:

• Schemes and procedures (detailed steps) used by CPI reporting Estimation Results, as well as in estimation-classification-reporting of Mineral and Coal Resources and Reserves Estimation
• Systematic of reporting content of Estimated Results, Mineral and Coal Resources and Reserves. CPI self-determines schemes & procedures for reporting of Mineral and Coal Estimation Results, or estimates-classification- reporting of Mineral and Coal Resources and Reserves Estimation, as well as systematic reporting with reference to:
1. KCMI Code Content and Table 1: Check list of reporting criteria
2. Best practices

Framework

Reporting of Exploration Results - Resource Estimation - Reserves Estimation