HARRADYNAMICS Mining Asset Due Diligence Checklist
INDEPENDENT & OBJECTIVE ADVICEMINING DUE DILIGENCE CHECKLISTRevision: 0Released: January 2019Revision: 1Released: January 2016
SUMMARYHarradynamics due diligence checklist for mining projects coverseleven major risk categories that are typical of an advanced stagemining due diligence process. Whilst these categories are oftenreflected in mineral resource & reserve estimates they are not asubstitute for a JORC, NI43-101, or other public reporting code.The amount of detail required to be reported for any particularcategory depends on the stage of the projects development, themagnitude of investment, source of financing, and the perceivedrisks involved.Due diligence processes are typically staged or ‘gated’ withincreasing effort and level of knowledge required as the processmoves forward. This staged process allows for the elimination ofsome unattractive mining assets early, and at a lower cost, whilstprogressing other more attractive assets under greater scrutiny, andtherefore at a larger cost.A well conducted due diligence goes beyond searching and findingflaws in a mining project or operating asset. It also looks at ways tomanage or mitigate any problems that are discovered. By thismeans the due diligence process can and should discoverunrealised value and potential in the hands of a new owner.INDEPENDENT & OBJECTIVE ADVICEGPO Box 10012, Brisbane QLD 4000Tel: 61 7 3162 9384Mob: 61 (0) 403 823 713 Web: www.harradynamics.com.au
MINING DUE DILIGENCE CHECKLISTMining Due Diligence is a risk management process that uses independent multi-disciplinaryengineers, geologists, and other qualified professionals to collect, analyse, review, evaluate,and report on a mining project. It seeks to better understand, define and manage risk.Mineral and Property Rights Adequacy of mining rights & titlesSufficiency of surface rightsRoyalties, agreements, & encumbrances Overlapping tenements and titlesOther significant factors and risksInfrastructure and Supply Chain Water access, quality, reliabilityPower access, quality, reliabilityRoads and physical accessCommunicationsLabour availability, skills, costsMaterial shipping & transport logistics Local and regional health & safetyOnsite buildings, structures, facilities & amenitiesTailings, waste, leach, & contaminantsOther enabling infrastructureOffsite road, rail, conveyor, pipeline servicesGeology, Exploration, & Mineral Resources Regional, local, property geologyGeological modelMineral deposit typeSignificant mineralised zonesRelevant exploration & quality work Collar & down-the-hole surveysDrilling, cores, bulk samplesSampling methods, QC, & securityResource cut-off gradeMineral resources & economicsMetallurgy & Mineral Processing Recovery estimate assumptionsSample representativesContaminates & ore variabilityMetal or mineral balanceTests and other operational results Crushing, grinding, milling process flowPlant design & equipment sizingPlant layouts, elevations, GA’sStockpiles, tailings, & wasteConsumables, reagents, other suppliesMining & Mineral Reserves Mining methodsMining fleet requirementsProduction, scheduling & mine life Dilution & cut-off gradeMineral reserves4Capital & Operating Costs Capital cost estimatesBasis for capital cost estimatesI n d e p e n d e n t Operating cost estimatesBasis for operating cost estimates&O b j e c t i v eA d v i c e
MINING DUE DILIGENCE CHECKLISTMining Due Diligence is a risk management process that uses independent multi-disciplinaryengineers, geologists, and other qualified professionals to collect, analyse, review, evaluate,and report on a mining project. It seeks to better understand, define and manage risk.Environment, Permitting, & Social Impact Environmental studiesEnvironmental issuesRequired permits & status of permittingOperating requirements & plansReclamation, rehabilitation & other bondsPonds, tailings, dams, other civil structures Emissions, dust, light & noiseWaste rock and Dumps managementMine closure planningSocial & communityEngineering, Construction, & Start-Up Project managementEngineering & designCost control & contract management Procurement, tendering, contractsConstruction & commissioningOperational readinessOperational & Maintenance Management & supervisionLabour availability, skills, trainingHealth, safety, securityPersonnel accommodation & transportGeology, mine planning, ore control Production and quality targets & schedulesCost control & administrationMaintenance planning, critical spares & skillsMechanical plant availabilityWeather and climate factorsEconomics & Financial Analysis Marketing studies & offtake agreementsLong term labour planningLong term water, power, fuel agreementsExchange rates & FOREX exposureHedging, funding or financing costs Cash flow and production forecasts or actualsEscalation, inflation, discounting assumptionsTaxes, royalties, interests, other variablesSensitivity and risk analysisSovereign, Regional & Local Risks Political, social, economic stabilitySupply chainIndustrial relationsI n d e p e n d e n t Insurances & bondsRegulations, Acts, legalNGOs, community, social licence&O b j e c t i v eA d v i c e
CONTACTHARRADYNAMICS Pty LtdUnit 5, 88 Macquarie Street,St. Lucia QLD 4067PO Box 10012Brisbane Adelaide StreetBrisbane QLD 4000T: 61 7 3162 9384M: 61 (0) 403 823 713 (Managing Director - Gary Harradine)M: 61 (0) 488 060 577 (Project Administration services - Kristen namics.com.auINDEPENDENT & OBJECTIVE ADVICE
MINING DUE DILIGENCE CHECKLIST Mining Due Diligence is a risk management process that uses independent multi-disciplinary engineers, geologists, and other qualified professionals to collect, analyse, review, evaluate, and report on a mining project. It seeks to better understand, define and manage risk. Independent & Objective Advice
RGF Due Diligence Engagement Template Terms . 1 Introduction The [Applicant] is required to submit to BIS a Due Diligence report prepared by the Due Diligence Service Provider which covers the scope of the Due Diligence work set out in Appendix 7 of the Conditional Grant Offer Letter (the "Due Diligence report"). These termsof engagement set
Section 01 - Legal Due Diligence 04 1.1 Purpose of Legal Due Diligence 05 1.2 Conclusion 1 4 Section 02 - Finance Due Diligence 1 5 2.1 Purpose of Finance Due Diligence 1 6 2.2 Conclusion 2 8 Annexure 2 9 Annexure 01 - Statement of Comprehensive Income 30 Annexure 02 - Statement of Financial Position 31
Phase 1 is concerned with the basics of due diligence with a focus on tools and techniques of due diligence analysis. Day One: The basics of due diligence in the oil and gas business The changing dynamics of the global oil and gas business The strategic relevance of due diligence in market analysis
finalizes the due diligence report - The due diligence report must seek to prov ide the most pertinent information at a gi i i i i h il b bd f ibliven point in time in the most easily absorbed form possible - It is particularly critical to relate the due diligence report to the strategic objectives of the due diligence process.
§ 1.03[1] DUE DILIGENCE 1-8 § 1.03 Benefits of the Due Diligence Investigation If not carefully conceived and managed, due diligence investiga-tions can become expensive boondoggles that never end and never lead anywhere. It should be kept in mind that process without results is useless. The due diligence investigation is all about producing .
5. Anti-bribery due diligence starts sufficiently early in the due diligence process to allow adequate due diligence to be carried out and for the findings to influence the outcome of the negotiations or stimulate further review if necessary. 6. The partners or board provide commitment and oversight to the due diligence reviews.
for due diligence. In simple terms, due diligence is a type of investiga-tion. In the context of an oil and gas asset transaction, the process of due diligence is an investigation by which the buyer's initial assumptions regarding the condition and value of the assets are verified. If the buyer's
An expert meeting was held to review the impact of animal nutrition on animal welfare. During the meeting, three major tasks were undertaken for both ruminant and monogastric species: 1) Identify feeding options for different livestock production systems (extensive, mixed crop-livestock, and intensive) that improve animal welfare while increas - ing profitability of the livestock producers and .
