European Reporting of Mineral Assets · 2018. 10. 16. · Imerys is one of the few industrial minerals companies to report its mineral assets using the PERC Reporting Standard Originally

European Reporting of Mineral Assets

Experiences of a global diversified industrial minerals company

Owen HEROD

Imerys Group Geologist

Introduction

Imerys is a French Industrial Minerals Group with worldwide operations:

More than 245 industrial sites in 50 countries – including 104 operating mine sites

48 mine sites in Europe over 9 countries – of which 33 are in France

Mineral Asset reporting

At a mining site level – reporting is to local, regional or national authorities and varies

between country

At a Group level – reporting is to the Paris stock market (NYSE Euronext Paris) and

reported in accordance to the PERC Reporting Standard

Imerys Min Win-Win 2014 2

Information source – but perhaps not what one would expect….

What is an ‘Industrial Mineral’ and who are Imerys?

Industrial Mineral:

“Non metallic minerals and rocks finding application in crude or processed form as functional

additives, raw materials or process enablers in a wide range of manufacturing and other

industries.”


FUNCTIONAL ADDITIVES Ingredient added to product composition to enhance its

properties

Kaolin, mica, talc, feldspar

for paints or plastic parts

SHOCK ABSORPTION

AND LIGHTNESS

RAW MATERIALS Important constituent of a

mineral formula

Clay, kaolin, feldspar for

sanitaryware & tableware

WHITENESS, STRENGTH

PROCESS ENABLERS Product used in industrial

processes but not present in the finished product

Monolithic refractories for

industrial equipment

HIGH-TEMPERATURE,

HIGH WEAR RESISTANCE


Imerys

Roots dating back to 1880s nickel mining and latterly other base metals

Diversification into Industrial minerals in 1980s which became principle interest in 1999

World leader in mineral-based specialties “Imerys transforms a unique range of minerals to deliver essential functions

that are essential to its customers' products and manufacturing processes.”

18 different rocks and minerals mined

Listed on NYSE Euronext Paris

‒ ~4.5 B€ Market Capitalisation (October 2014)

‒ 3,698 M€ Sales (2013)

‒ 477 M€ Current operating income (2013)

‒ 15,805 Employees (2013)




3,698 M€ Sales

(2013)

Imerys – Diverse end markets:

Imerys – Mining – Global Distribution


Imerys is one of the few industrial minerals companies to report its mineral assets

using the PERC Reporting Standard

Originally started in 2002 using ‘The Reporting Code 2001’

Reports mineral assets annually in its annual report….

Group level reporting – using the PERC Reporting Standard


Individual sites

are not listed!

Only “Final

product” is listed!

(i.e. no grade)

Extract from the 2013 Imerys annual report (page 45)

Two principle reasons:

Materiality

Confidentiality

Why are individual sites not reported?


Materiality

Total book value of Mineral assets is ~10% of

the balance sheet

With so many operations, at a group level

specific details of each site are not material


Materiality

Confidentiality



Confidentiality

All Imerys sales are through negotiation – the

concept of a spot market does not exist

Detailed site information can reduce

competitive advantage in negotiations with

suppliers as well as with competitors



Materiality

Confidentiality

Result: Consolidation of mineral assets

Mineral Type

Advantages:

Similar minerals and markets are grouped together


Geographic

Why are only ‘final products’ reported?

Two reasons:

Confidentiality

Consistent basis of reporting across the group


Confidentiality

Product recovery is highly process dependant

which can be commercially sensitive, especially

in price negotiations

Consistent Basis

Trying to compare apples and oranges…..

Done using ‘dry final product’ – i.e. needs an

understanding of the entire process chain

Refractory clays ‒Sedimentary, fine grained (

Multiple quarrys

Refractory clays

Comparing Apples & Oranges – on a single site


Central processing

Shredding, milling, calcination

Shredded (20% moisture)

Shredded & milled

(~0% moisture)

Calcined (remove LOI)

Calcined & milled

Comparing Apples & Oranges – Between sites

UK Kaolin Mine

Hydrothermal + meteoric alteration of in-situ

granite

Coarse + stacked forms of kaolin – variable applications

10% to 15% kaolin

Hydraulic + truck and shovel mining

Brazilian Kaolin mine

Sedimentary clay deposits – amazon river

system

Post depositional enrichment in kaolin

Fine, white products for paper industry

Typically 30% kaolin content

Strip mining operation


Why are only ‘final products’ reported?

Two reasons:

Confidentiality

Consistent basis of reporting across the group

By using ‘dry final product’ a consistent picture is presented

Application of mining and processing factors

This vision is consistent with customer requirements

It allows for some consolidation of within the different mineral groups


The PERC Reporting Standard

PERC clauses 48 and 51 specifically refer to “industrial minerals,

cement feed material and construction raw materials”

Specifically:

Clause 50 – permits aggregation of sites by market and geography (combined

with Clause 60 - Guideline on Materiality)

Clause 51 – recognises the need for commercial sensitivity

These specific clauses allow Imerys the flexibility to report its Mineral

Assets without compromising commercial sensitivities

Internally ore tonnages, recoveries, ‘conversion factors’ etc. are reported by site

Consolidation only occurs at Group level


To Conclude…

Imerys is a source of Mineral Deposit data in Europe, both;

Locally to the authorities as required by local regulations

At a group level via the annual report in accordance with the PERC reporting Standard

The Group level data is consolidated by mineral and global region

To ensure confidentiality and protect commercially sensitive information

To meet materiality requirements of annual reporting

The PERC Reporting Standard allows Industrial Minerals companies to do this


Imerys

154 rue de l’Université

F-75007 Paris

+ 33 (0) 1 49 55 63 00

www.imerys.com

Thank you for your attention

Documents

European Reporting of Mineral Assets · 2018. 10. 16. · Imerys is one of the few industrial minerals companies to report its mineral assets using the PERC Reporting Standard Originally