Spotless accounting reports are essential when presenting results to the public which is why a group of global mining companies gave AMIRA International the mandate of developing a set of rigorous yet practical metal accounting guidelines for the mining and metallurgical industry.
Meeting these 10 guidelines, known as the AMIRA P754 Metal Accounting Project, should be the aim of the metal accounting industry when selecting an accounting solution. In this three-part post we’re going to show you how Microsoft AX PAM fulfils these guidelines making it the best choice for your mining operation.
The system must generate sufficient data to allow for verifications, transfers and balances and measurement and computational procedures must be free of a defined critical level of bias
Once sufficient automation of input data is attained it is easy to justify and implement routine bias tracking or statistical analysis of the data.
xMMP (exploration, Mining & Minerals Processing) is a mining “ERP” solution that covers the Total Life of Mine (‘LOM’). Managing mineral rights (tenements) claims, exploration, drilling, EPCM for the development phase, actual mining, stockpiles, plant, shipping and dispatching all the way to mine rehabilitation.
Target accuracies for the mass measurements and the sampling and analyses must be identified for each input and output stream used for accounting purposes. Should these show a bias that the Company considers material to its results, the fact must be reported to shareholders.
These tolerances are set at field level. With regard to the financial impact of production stock changes: AX can be configured with various costing options, which can feed directly off real-time stock values.
In-process inventory figures to be verified by physical stock-takes at prescribed annual intervals, procedures and authority levels for stock adjustments and the treatment of unaccounted losses or gains to be clearly defined.
Periodic stock takes should be performed with reduced stocks if possible, and estimates of stockpiles corrected to zero as and when the material is exhausted. AX User rights ensure only authorised people can modify calculations.
The metal accounting system must ensure that every effort is made to identify any
bias that may occur, as rapidly as possible.
Just as with point 7, bias tracking or statistical analysis of the data can be performed either on custom reports or Excel extracts.
Choosing an integrated mine enterprise resource planning solution over best-of-breed technologies doesn’t have to mean sacrificing on quality or functionality. Dynamics xMMP, with PAM, gives integrated best-of-breed mine functionality. Contact Resolve Immix for more.