Mineral resources, by constitutional principle, are the property of the Union. For a material in the ground to become an economic asset, a journey of exploration and technical validation is necessary. This journey is regulated by the National Mining Agency (ANM) and begins with the identification of a mineral resource, an occurrence that has potential for economic development, but has not yet been evaluated in detail. It is in the prospecting phase that techniques such as exploratory drilling are used to collect data, seeking to prove the presence of these resources.
The feasibility of a mining project depends on the ability to transform a mineral resource into a minable reserve. A minable reserve is the portion of the mineral deposit whose technical and economic feasibility has been demonstrated, which means it can be extracted profitably. The classification of a resource as a reserve is not arbitrary; it follows international standards and requires the application of various modifying factors, which go beyond geological aspects. These factors include considerations about the mining method, ore processing, infrastructure, economics, and the legal, environmental, and social aspects of the project.
The management of the Brazilian System for the Certification of Mineral Resources and Reserves is the responsibility of the ANM. The agency, although not a certifying entity, standardizes the system for monitoring purposes and to subsidize national mining policy. The correct classification of resources and reserves is the decisive step for obtaining the development consent. Based on this information, the titleholder can decide whether to continue the exploration work or interrupt it, as well as whether to exploit the mineral asset.
The Essential Difference between Mineral Resource and Minable Reserve
- Mineral Resource: It is the material with potential. It exists in a sufficient quantity and quality for industrial use, but its economic feasibility has not yet been proven. The initial exploration focuses on identifying these resources.
- Minable Reserve: It is the material with proven feasibility. It is the resource that, after detailed studies and the application of modifying factors (economic, technical, and legal), is shown to be profitable for extraction. A minable reserve is what can actually be extracted successfully.
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