Why is it so difficult? Why are there differences throughout the resources industry in how reconciliation factors are reported and calculated? Why is there no standard formula to use? These are common questions asked when mining companies try to compare reconciliation results across operations or attempt to undertake internal or corporate governance reporting processes._x000D_
For many mining companies the calculation of reconciliation factors is often a very time and resource intensive part of mandatory reconciliation reporting._x000D_
Some major mining companies, that move millions of tonnes of material per annum, dedicate full time resources to the calculation of reconciliation factors. The willingness of these companies to set aside resources demonstrates the value that operations place on good reconciliation reporting._x000D_
Reconciliation is about measuring the variance between two like measures at different points along the mining sequence. It can be undertaken between predictive models, forecast plans and actual measured performance. Calculations are used to derive a variance between two sections within the mining sequence, with the result being commonly known in the resources industry as a factor'._x000D_
Mining companies use the calculation of reconciliation factors as key performance indices (KPIs) to provide a health check' of their operation, with variances often pointing to issues either with the accuracy of the original estimate or the quality of the measurement being used in the comparison._x000D_
There are many reconciliation factors that can be calculated and reported._x000D_
This paper will set out, clarify and provide a recommended standard means of calculating each specific factor that, where adopted by a company, will ensure compliance with the international reporting codes, such as JORC. Using case studies from Rio Tinto Group (Rio Tinto) and BHP Billiton Mitsubishi Alliance (BMA'), and the authors experience across a wide range of mine sites, the outline of a generic solution for tracking a parcel of material from the pit through to the port along with appropriate reconciliation factors is provided._x000D_
The intention of proposing standardised reconciliation factor terminology and methodology is to provide the foundations of a system to enable communication and comparison across different commodities, companies and mines sites._x000D_
FORMAL CITATION:Fouet, T, Riske, R, Morley, C, Cook, A, Conti, D and Centofanti, J, 2009. Standardising the reconciliation factors required in governance reporting, in Proceedings Seventh International Mining Geology Conference 2009, pp 127-140 (The Australasian Institute of Mining and Metallurgy: Melbourne).