Authoritative glossary of 1247 terms across 58 categories: metals exchanges, mining, processing, warehousing, trading, RWA tokenization, regulation, ESG, battery & critical minerals. Definitions based on official documentation from USGS, LME, LBMA, SHFE, BIS, IOSCO, FSB, HKMA, SFC, EU (MiCA), and ICE Futures.
Precambrian chemical sedimentary rock consisting of alternating millimetre-to-centimetre-scale bands of iron-rich minerals (hematite, magnetite, siderite) and siliceous chert, deposited in stable shallow-marine environments mostly during the Early Proterozoic (~2.0 Ga). Superior-type BIFs are the primary source of the world's iron ore; individual deposits exceed one billion tonnes (median ~170 Mt) at around 30% Fe, with high-grade supergene ores formed by lateritic weathering.
USGS Bulletin 1693, 'Descriptive Model of Superior Fe' (Model 34a, Cannon)
USGS Open-File Report 1995-0831, Chapter 32
A qualified mining professional with at least five years' relevant experience who accepts professional and legal responsibility for resource and reserve estimates reported under the JORC Code or SAMREC Code in Australia/New Zealand and South Africa respectively.
The minimum grade (metal content per unit of ore) at which ore is economic to mine and process at the prevailing commodity price, operating cost and recovery assumptions; material below cutoff grade is classified as waste.
JORC Code 2012 Table 1 (Modifying Factors)
Greenfield exploration targets areas with no known mineral deposits, requiring extensive geological, geochemical, and geophysical surveys to identify new mineralised systems. Brownfield exploration is conducted in proximity to known deposits or existing mine infrastructure, leveraging established geological models and existing data to extend resources or discover satellite deposits; both concepts underpin the confidence categories (Inferred, Indicated, Measured) and the Exploration Target disclosure requirements of the JORC Code 2012.
Greenfield vs Brownfield Mineral Exploration
JORC Code 2012, 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (Joint Ore Reserves Committee, 2012), Clauses 17, 20, 29
The CRIRSCO-member reporting standard for Australian and New Zealand mining companies; classifies mineral inventory into Exploration Results, Mineral Resources (Inferred, Indicated, Measured) and Ore Reserves (Probable, Proven); JORC Code 2012 is current.
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves
Supergene ore deposit formed by intense chemical weathering of ultramafic parent rocks (peridotite, dunite) in tropical to subtropical climates, producing a layered regolith profile of limonite (Ni-bearing goethite) over saprolite (Ni-bearing hydrous Mg-silicates). Typical deposits range from 2.5 to 400 million tonnes at 0.66–2.4% Ni and form within 26° of the equator, requiring as little as one million years to develop.
USGS Scientific Investigations Report 2010–5070–H, 'Nickel-Cobalt Laterites—A Deposit Model' (Marsh, Anderson & Gray)
Hard-rock gold deposit consisting of quartz veins, stockworks, and disseminations hosted along major crustal fault zones in granite-greenstone terranes, formed from low-salinity, CO₂-rich hydrothermal fluids at 300–400°C and 4–12 km depth. Also termed orogenic gold deposits, they are the dominant lode source of gold and silver globally, with mineralisation controlled by second-order extensional structures and ductile shear zones along regional transcurrent faults.
Lode Gold / Low-Sulfide Quartz-Gold Vein Deposit
USGS Open-File Report 2021–1041, 'GIS-Based Identification of Areas that have Resource Potential for Lode Gold in Alaska' (Karl et al., 2021)
USGS Open-File Report 2003–077, 'Low-Sulfide Quartz Gold Model' (Drew, 2003)
A metallogenic belt is a geologic unit (area) that either contains or is favourable for a group of coeval and genetically related, significant lode and placer deposit models, typically 150–1,000 × 10³ km² in extent. This spatial and genetic association with a specific geodynamic event (collision, arc, rifting) gives each belt predictive power for undiscovered deposits; a planetary metallogenic province encompasses multiple belts across ≥1,000 × 10³ km².
Metallogenic Province / Metallogenic Belt
USGS Open-File Report 2004–1252, 'Descriptions of Metallogenic Belts, Methodology, and Definitions' (Nokleberg et al., 2004)
USGS SIM 3022, 'Metallogenic Belt and Mineral Deposit Maps of Northeast Asia'
A formal document required by Canadian securities commissions for material changes or events related to mineral properties, prepared and certified by a Qualified Person (QP) under NI 43-101; must follow CIM Definition Standards for resource and reserve classification.
National Instrument 43-101 Technical Report
CSA National Instrument 43-101, sedarplus.ca
Extremely coarse-grained granitic igneous body—characterised by anomalous enrichment in Li, Cs, and Ta—formed by extreme fractional crystallisation of peraluminous S-type granites in orogenic hinterlands. LCT pegmatites account for roughly one-quarter of world lithium production, most of the tantalum, and all of the cesium; giant examples include Greenbushes (Australia, 70 Mt at 2.6% Li₂O) and Tanco (Canada, 2.1 Mt at 0.215% Ta₂O₅).
Lithium-Cesium-Tantalum (LCT) Rare-Element Pegmatite
USGS Scientific Investigations Report 2010–5070–O, 'Mineral-Deposit Model for Lithium-Cesium-Tantalum Pegmatites' (Bradley, McCauley & Stillings, 2017)
Concentration of dense, chemically resistant minerals—principally native gold and platinum-group element alloys—accumulated in gravels, sands, and silts by mechanical sorting in alluvial, beach, eolian, or glacial environments. Economic grades concentrate at natural traps such as river bends, bedrock riffles, and structures transverse to flow, with source material typically derived from lode deposits (gold-bearing quartz veins) or porphyry copper systems.
USGS Bulletin 1693, 'Descriptive Model of Placer Au-PGE' (Model 39a)
Large, low-grade magmatic-hydrothermal deposit genetically associated with porphyritic intrusions, typically containing 0.3–1% Cu with by-product molybdenum, gold, and silver. They are the world's largest source of copper (~60% of global production) and molybdenum, with individual deposits commonly containing hundreds of millions to billions of metric tonnes of ore and mine lives measured in decades.
USGS Scientific Investigations Report 2010–5070–B, 'Porphyry Copper Deposit Model' (John et al., 2010)
An individual with a professional designation, at least five years of relevant experience, and who accepts professional liability under Canadian securities regulation NI 43-101 for technical reports on mineral properties.
National Instrument 43-101, CSA, sedarplus.ca
The CRIRSCO-member reporting code for JSE-listed mining companies; aligns with JORC Code and NI 43-101 classification framework; SAMREC Code 2016 is current.
South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves
The second most important class of copper deposits globally (~20% of world Cu production), comprising stratiform to stratabound Cu±Co±Ag mineralisation hosted in continental rift-related sedimentary sequences such as the Kupferschiefer of Poland and the Central African Copperbelt of the DRC and Zambia. SSC deposits form by basin-brine migration through reduced sedimentary host rocks and are the world's most important source of cobalt.
Sediment-Hosted Stratabound Copper (SSC) Deposit
USGS Scientific Investigations Report 2010–5070–M, 'Sediment-Hosted Stratabound Copper Deposit Model' (Hayes et al., 2015)
Scientific agency of the US Department of the Interior, established 1879. Provides authoritative earth-science research and data covering geology, hydrology, biology, and geography of the United States and (through its National Minerals Information Center) global mineral commodities. Publishes the annual Mineral Commodity Summaries (MCS) and Minerals Yearbook, the principal open-access primary sources for global reserves, production, and trade data used throughout the TSM Hub.
Seafloor polymetallic deposit formed where circulating hydrothermal fluids driven by magmatic heat are quenched through mixing with bottom waters, precipitating massive sulphide lenses (>40% sulphide minerals) rich in Cu, Zn, Pb, Au, and Ag. Deposits are generally stratiform and range in age from 3.55 billion years to actively forming on modern mid-ocean ridges and island arc back-arcs; they include supergiant accumulations such as the 1.5-billion-tonne Rio Tinto deposit in Spain.
USGS Scientific Investigations Report 2010–5070–C, 'Volcanogenic Massive Sulfide Occurrence Model' (Shanks & Thurston, 2012)
A grinding mill that uses no added steel grinding media — the ore acts as its own media. Coarse run-of-mine rock is charged directly; impact, attrition, and abrasion between rock particles reduce size as the mill rotates. AG mills suit competent, abrasive, and brittle ores where steel-media contamination is undesirable (iron-ore concentrate downgrading, magnetite, kimberlite-diamond ores). Lower operating cost than SAG (no ball wear) but more sensitive to feed competency, with throughput penalties on softer or finer ores.
Based on: SME Mineral Processing & Extractive Metallurgy Handbook —
A rotating cylindrical drum (typically 3-8 m diameter, L/D 1.0-1.5) charged with 25-40% steel balls (25-90 mm) plus ore slurry, which cascades and cataracts to grind ore by impact and attrition. Standard secondary grinding equipment downstream of SAG or rod mills; grind size typically 75-300 μm. Wet ball mills dominate metals processing; dry mills serve cement and coal. Ball consumption 0.5-1.5 kg/tonne ore is a major consumable cost.
SME Mineral Processing Handbook 'Grinding Circuits'
Metso Outotec 'Grinding Mill Handbook' (mogroup.com)
A bulk, low-cost underground mining method suited to large, low-grade, massive orebodies (porphyry copper, kimberlite diamond, low-grade molybdenum). A horizontal undercut is mined beneath the orebody, removing support so the rock above caves under gravity; broken ore is drawn down through drawpoints and a network of extraction levels to surface haulage. Capital-intensive and slow to ramp up, but very low operating cost per tonne. Major projects include Codelco's El Teniente and Chuquicamata Underground, Newcrest's Cadia East, Rio Tinto/Turquoise Hill's Oyu Tolgoi Underground, and Resolution Copper.
Based on: D. H. Laubscher, A Practical Manual on Block Caving (2000)
SME Mining Engineering Handbook (3rd ed., 2011) —
Under the JORC Code 2012, a Competent Person is a minerals-industry professional who takes responsibility for Public Reports on Exploration Results, Mineral Resources or Ore Reserves. Must be a member of a Recognised Professional Organisation (RPO) recognised by JORC (e.g., AusIMM, AIG), have at least five years of relevant experience in the style of mineralisation and type of deposit and is liable for the technical content signed. SAMREC and the Pan-European PERC Code use the same title. NI 43-101 (Canada) and SK-1300 (US) use the equivalent title "Qualified Person".
The Committee for Mineral Reserves International Reporting Standards (CRIRSCO) publishes the International Reporting Template — the umbrella framework on which all major national reporting codes are aligned, including JORC (Australasia), NI 43-101 (Canada, via CIM Definition Standards), SK-1300 (US), SAMREC (South Africa), PERC (Europe), CBRR (Brazil) and others. Provides common definitions for Exploration Result, Mineral Resource (Inferred / Indicated / Measured) and Mineral Reserve / Ore Reserve (Probable / Proved). Recognised by IFRS and the World Bank.
First stage of comminution in which run-of-mine ore is reduced from up to 1-2 m boulders down to 5-25 mm feed for grinding. Primary crushers: jaw (for hard/abrasive, high-capacity), gyratory (largest, continuous), impact (softer ores). Secondary and tertiary: cone crushers and short-head cones. High-Pressure Grinding Rolls (HPGR) can substitute for tertiary + fine crushing. Typical circuit reduction ratio 4:1 to 8:1 per stage. Precedes SAG/ball milling.
Crushing (Primary/Secondary/Tertiary Crushing)
SME Mineral Processing Handbook (SME.org)
Wills & Finch 'Mineral Processing Technology' 8th ed.
ISO 4867 'Wear-resistant steel castings for crushing and grinding'
The minimum grade at which mineralised material is classified as economically mineable under prevailing conditions. The JORC Code 2012 (Appendix 1) defines it as 'the lowest grade, or quality, of mineralised material that qualifies as economically mineable and available in a given deposit,' which may be set on the basis of economic evaluation or on physical/chemical attributes that define an acceptable product specification. SEC Regulation S-K Item 1300 requires qualified persons to take cut-off grade into account when estimating mineral resources.
Based on: JORC Code 2012 (Appendix 1, Generic Terms and Equivalents)
SEC Regulation S-K Item 1300 (17 CFR §229.1300), as reproduced by Mine Technical Services (Searston & Gosson, 2020)
The concentration of a target metal or mineral within a sample or ore body, expressed as a percentage (e.g., % Cu), grams per tonne (g/t Au), or other appropriate units. The JORC Code 2012 (Appendix 1) defines grade as 'any physical or chemical measurement of the characteristics of the material of interest in samples or product,' noting that the units of measurement must be stated when figures are reported. The term is interchangeable with 'quality' in the context of non-metallic commodities.
Second comminution stage in which crushed ore is further reduced to typically 40-300 μm to liberate mineral grains from gangue for flotation or leaching. Wet grinding dominates (60-75% solids). Equipment families: rod mills, ball mills, autogenous (AG) mills, semi-autogenous (SAG) mills, tower/vertimill (fine grinding), IsaMill/SMD (ultra-fine to 5-10 μm). Grinding is the single largest energy consumer at most mines — often 30-50% of site power and 20-40% of total operating cost.
Bond 'Third theory of comminution' Trans. AIME 1952
Napier-Munn 'Comminution Handbook' AusIMM
A comminution device in which two counter-rotating rolls press ore between them at very high pressure (50–250 MPa) — orders of magnitude higher than a conventional roll crusher — fracturing the rock by inter-particle compression rather than impact. HPGR consumes 20–50% less energy per tonne than equivalent SAG mills and pre-conditions the ore with micro-cracks that improve downstream grinding and leaching kinetics. Originally commercialised in cement (Schönert, 1979), HPGR has been adopted by major copper, gold, iron-ore, and diamond operations (Cerro Verde, Boddington, KSL, Newmont Karali).
Metso Outotec HPGR technical reference —
An extraction method in which a lixiviant solution is injected via wells into a permeable, ore-bearing aquifer underground; the dissolved metal-bearing solution is pumped to surface via recovery wells and processed by ion exchange, solvent extraction, or precipitation. ISL is the dominant uranium mining method globally — the World Nuclear Association reports it supplied ~57% of world uranium output in 2022 (Kazatomprom in Kazakhstan, Cameco/Orano in the US and Niger). Variants are also applied to copper (alkaline ISR in oxide caps) and lithium-from-brine (Salar de Atacama, Argentine triangle).
Based on: World Nuclear Association, Uranium Mining Overview —
IAEA Nuclear Energy Series NF-T-1.4, In Situ Leach Uranium Mining —
A ground geophysical technique that measures the chargeability of rocks in response to an injected electrical current; it is the primary exploration method for porphyry copper and epithermal gold systems because sulphide disseminations (pyrite, chalcopyrite) produce high chargeability anomalies even at low grades.
Induced Polarisation (IP) Geophysical Survey
Telford, Geldart & Sheriff, 'Applied Geophysics', 2nd ed., Cambridge UP, 1990
SJ Geophysics, 'Introduction to Induced Polarization', sjgeophysics.com.
The JORC Code is the Australasian professional standard for public reporting of exploration results, Mineral Resources, and Ore Reserves. It requires that all public reports be based on work by a Competent Person and that Mineral Resource and Ore Reserve classifications follow defined confidence levels (Inferred, Indicated, Measured; Probable, Proved). The 2012 edition requires Table 1 disclosure of the criteria used in each report. It is mandatory for ASX- and NZX-listed companies and widely referenced in Asia-Pacific jurisdictions.
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code)
Based on: JORC Code 2012 Edition (The Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia)
Highly mechanised underground coal (and some potash/trona) mining method in which a long face (150-450 m) of ore is extracted in a single continuous pass by a shearer moving back and forth, while hydraulic roof supports advance behind it and the roof collapses (caves) into the void. Extraction ratio 80-95%, output up to 8-15 Mtpa from a single face. Dominant coal-mining method in Germany, Poland, China, Australia, and much of the U.S. Requires long panels of relatively undisturbed geology.
SME Mining Engineering Handbook 3rd ed. ch. 'Longwall Mining'
International Energy Agency (IEA) 'Coal 2024'
Engineered airflow system that supplies fresh air to underground workings and removes heat, dust, diesel particulate matter, blasting fumes, and toxic/flammable gases (methane, CO, H₂S, radon). Typically 3-10 m³/s per kW of installed diesel power. Includes main fans (up to MW-scale), booster fans, air doors, regulators, ducting, refrigeration for deep mines, and monitoring for CO/CH₄/O₂/radon. Governed by MSHA, ICMM Fatality Prevention, and country regulators. Ventilation on Demand (VoD) systems increasingly common for energy reduction.
McPherson 'Subsurface Ventilation and Environmental Engineering' 2nd ed.
ICMM 'Health and Safety Critical Control Management'
NI 43-101 is the Canadian securities regulation governing public disclosure of scientific and technical information about mineral projects by companies listed on Canadian exchanges. It requires that all material technical information be based on work by or supervised by a Qualified Person, and mandates a Technical Report for material properties. Mineral Resource and Mineral Reserve classifications under NI 43-101 must follow the CIM Definition Standards (2014), which align with the JORC Code framework of Inferred, Indicated, Measured resources and Probable, Proven reserves.
National Instrument 43-101 — Standards of Disclosure for Mineral Projects
Based on: CIM Definition Standards for Mineral Resources and Mineral Reserves, 2014 Edition (adopted under NI 43-101)
Ontario Securities Commission NI 43-101 instrument page
A document required under Canadian securities law (CSA NI 43-101) whenever a public company discloses scientific and technical information about a mineral project; it must be prepared or supervised by a Qualified Person (QP) and, for resource/reserve estimates, filed with the relevant exchange within 45 days of the trigger disclosure.
Canadian Securities Administrators, 'National Instrument 43-101 Standards of Disclosure for Mineral Projects' (2011, amended 2016), securities-administrators.ca.
A surface mining method in which ore is extracted from an open excavation by progressively removing overlying waste rock (overburden). The JORC Code 2012 (Table 1, Section 4) references the 'pit configuration, in the case of an open pit' as a key parameter for Modifying Factors in resource-to-reserve conversion. Open-pit methods are typically applied where ore bodies are broad, shallow, and of relatively lower grade, allowing bulk mining and mechanised loading. The economics are governed principally by the stripping ratio of waste to ore.
Based on: JORC Code 2012 (Table 1, Section 4 — Mining factors or assumptions)
SEC Regulation S-K Item 1300 guidance on modifying factors
Rock or material that contains an economically valuable concentration of a target mineral or metal. Under the JORC Code 2012, the term 'ore' implies that technical feasibility and economic viability have been established; it must not be applied to Mineral Resource estimates where Modifying Factors have not yet been assessed. The LBMA Responsible Gold Guidance describes 'gold ore' as rock or gravel containing an economically recoverable concentration, which may be as low as 1 gram of gold per tonne.
LBMA Responsible Gold Guidance v9, Definitions
A continuous geological mass or concentration of mineralisation of sufficient size, grade, and continuity to warrant detailed evaluation. The JORC Code 2012 (Appendix 1) treats an 'orebody' as synonymous with a mineral deposit, referring to 'type of deposit, orebody, style of mineralisation.' Under CIM Definition Standards (2014), a Mineral Resource is defined as 'a concentration or occurrence of solid material of economic interest in or on the earth's crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction.'
Based on: JORC Code 2012 (Appendix 1, Generic Terms)
CIM Definition Standards for Mineral Resources and Mineral Reserves, 2014 Edition
An Ore Reserve, as defined under the JORC Code 2012 (Australasia) and equivalents in CIM and SAMREC reporting, is the economically mineable part of a Measured or Indicated Mineral Resource for which appropriate technical, economic, marketing, legal, environmental, social and governmental factors (the "Modifying Factors") have been assessed and applied. Categorised as Proved (from Measured Resource) or Probable (from Indicated Resource). Distinct from the wider Mineral Resource and used as the basis for life-of-mine planning. Under NI 43-101 the equivalent term is "Mineral Reserve" (same substance, different label).
Rock and soil overlying an economic ore body that must be removed to expose ore for extraction — the numerator of the strip ratio in open-pit mining. Typically dumped in engineered waste-rock facilities (WRDs) or used as backfill; managed for acid-mine drainage (AMD) potential per ARD/ML plans. Coal-mining overburden is often placed back into mined-out areas for progressive reclamation. Distinguished from tailings (post-processing) and from mineralised waste (low-grade ore stockpiled for possible future processing).
International Council on Mining and Metals (ICMM) 'Preventing Catastrophic Failures of Tailings and Waste Facilities'
The two categories of Mineral Reserves under JORC, CIM, and SAMREC standards: Proven reserves are converted from Measured resources with the highest confidence in grade and tonnage, while Probable reserves are converted from Indicated resources with lower confidence. P&P is the bankable quantity underpinning mine planning and project financing.
JORC, 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (2012), §§ 20–21, jorc.org
Under Canadian NI 43-101 and US SK-1300, a Qualified Person is an engineer or geoscientist with at least five years of relevant experience in the subject matter of the Technical Report and who is a registered member of a designated professional organisation. The QP takes legal responsibility for the technical content. NI 43-101 specifies a list of recognised professional associations (PEng., PGeo., AusIMM, IOM3, SAIMM and others under CRIRSCO). SK-1300 adopted by the SEC in 2018 aligns US registrants' reporting to the CRIRSCO template.
A Mineral Resource (JORC 2012, Clause 20) is 'a concentration or occurrence of solid material of economic interest … for which there are reasonable prospects for eventual economic extraction,' sub-divided into Inferred, Indicated, and Measured categories in order of increasing geological confidence. A Mineral Reserve (JORC 2012, Clause 29) is 'the economically mineable part of a Measured and/or Indicated Mineral Resource' confirmed by pre-feasibility or feasibility studies applying Modifying Factors, sub-divided into Probable and Proved categories. Reserves are a subset of Resources; the key distinction is that Reserves have been demonstrated to be economically extractable.
Based on: JORC Code 2012 (Clauses 20–31)
SEC Regulation S-K Item 1300 (17 CFR §229.1300)
A rotating cylindrical drum charged with long steel rods (typically 3-6 m, 50-100 mm diameter) instead of balls. The rods provide line-of-contact grinding that produces a narrow particle-size distribution with fewer fines — preferred where downstream processes (gravity, flotation) prefer minimal over-grinding. Historically used as the primary grind ahead of a ball mill in a rod-ball circuit; now largely displaced by SAG milling except in specific commodities (heavy-mineral sands, tungsten, tin).
SME Mineral Processing Handbook 'Grinding'
Underground mining method for flat-lying tabular deposits (coal, potash, salt, trona, some base metals) in which ore is extracted from rectangular 'rooms' while leaving regularly-spaced 'pillars' of unmined material to support the roof. Extraction ratio typically 50-75% in first pass, sometimes raised via retreat mining or secondary pillar recovery. Simple, mechanised (continuous miners, shuttle cars) and low-cost but leaves significant ore locked in pillars. Alternative to longwall (higher recovery, larger capex) and sub-level caving.
SME Mining Engineering Handbook 3rd ed. (SME.org) ch. 'Room and Pillar Mining'
MSHA 'Underground Mining Methods' (msha.gov)
Hartman 'SME Mining Engineering Handbook'
Ore in its as-mined state — the raw broken rock delivered from the mine face to the primary crusher or ROM stockpile, without pre-selection, blending or beneficiation. Characterised by wide particle-size distribution (fines to boulders up to 1.5 m), variable grade, moisture, and dilution from wall rock. The reference feed for metallurgical accounting, throughput planning, and reconciliation vs the block model. Distinguished from run-of-mill (post-crushing) and concentrate (post-flotation/leach).
CIM 'Estimation of Mineral Resources and Mineral Reserves — Best Practice Guidelines' (cim.org)
A large-diameter rotating cylindrical mill in which mined ore is ground by the combined action of (a) the ore itself acting as grinding media — autogenous component — and (b) steel grinding balls charged to 6–18% of mill volume — semi-autogenous component. SAG mills replace the conventional crusher / rod mill stages of a circuit and feed downstream ball mills or HPGRs. Modern installations exceed 40 ft diameter and 28 MW installed motor power (e.g., Cadia, Antamina, Oyu Tolgoi). High capex and energy intensity but reduced footprint and labour vs multistage crushing.
F. Bond, 'Crushing and Grinding Calculations,' British Chemical Engineering (1961)
The three primary means of accessing an underground mine. Shaft — vertical or steeply-inclined excavation from surface, hoisting ore/waste/personnel/materials by cage or skip; used for deep mines (>500 m). Adit — near-horizontal drift driven into a hillside from an outcrop or valley wall, using natural gravity drainage; historic for placer and shallow lode mines. Decline (or ramp) — spiral or straight declined roadway from surface, usually 12-15% gradient, accessed by rubber-tyred equipment (LHDs, trucks); dominant in modern trackless base-metal mines up to ~1000 m depth.
Shaft / Adit / Decline (Mine Access Types)
SME Mining Engineering Handbook 3rd ed. ch. 'Mine Development'
Hartman & Mutmansky 'Introductory Mining Engineering' 2nd ed.
SEC Regulation S-K Subpart 1300 (Item 1300) is the US securities disclosure standard for mining registrants, effective February 2019, replacing the former Industry Guide 7. It defines 'mineral resource' as 'a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction' (17 CFR §229.1300). Disclosures must be prepared or supervised by a Qualified Person and sub-divide resources into Inferred, Indicated, and Measured categories and reserves into Probable and Proven.
SEC Regulation S-K Subpart 1300 — Mining Disclosure
Based on: 17 CFR §229.1300 (SEC Regulation S-K Item 1300 Definitions)
SEC Small Entity Compliance Guide — Modernization of Property Disclosures for Mining Registrants (2018)
A systematic collection and chemical analysis of soil samples at defined spacing over a target area to detect anomalous concentrations of pathfinder elements (e.g. Cu, Mo, As, Sb) that may indicate buried mineralisation; a standard early-stage exploration tool preceding more expensive drilling programmes.
Plant, J.A., et al., 'Developments in Regional Geochemical Mapping', Applied Geochemistry, 1999
BGS, 'Geochemical Baseline Survey of the Environment', bgs.ac.uk.
The ratio of waste rock (overburden) removed to ore extracted in open-pit mining operations, typically expressed as tonnes of waste per tonne of ore (t:t). A higher stripping ratio indicates that more waste must be moved per unit of ore, increasing mining costs and potentially affecting the economic viability of the deposit. The JORC Code 2012 (Table 1, Section 4) and SEC Regulation S-K Item 1300 both include open-pit stripping ratio among the Modifying Factors that a qualified person must consider when converting Mineral Resources to Ore Reserves.
SEC Regulation S-K Item 1300 (17 CFR §229.1300), modifying factors guidance
Mass-mining underground method for steeply-dipping ore bodies (>60° dip) in which ore is drilled and blasted in a series of stacked horizontal sub-levels (10-30 m apart) and drawn from beneath while surrounding host rock caves in behind, filling the void progressively from top down. Common for iron (LKAB Kiruna, LKAB Malmberget), and some sulphide operations. Higher productivity than cut-and-fill but experiences 10-20% dilution and 5-15% ore loss. Requires stable hanging-wall geometry and surface subsidence acceptance.
SME Mining Engineering Handbook 3rd ed. ch. 'Sub-level Caving'
LKAB 'Sublevel caving at Kiruna' technical brief (lkab.com)
Brady & Brown 'Rock Mechanics for Underground Mining' 3rd ed.
The finely ground waste material remaining after economically valuable minerals have been extracted from ore during beneficiation or processing. The JORC Code 2012 (Clause 20) explicitly includes 'dumps and tailings' within the scope of potential Mineral Resources, noting they may contain recoverable mineralisation. SEC Regulation S-K Item 1300 (17 CFR §229.1300) similarly includes 'dumps and tailings' within the definition of 'material of economic interest' for mineral resource determination purposes.
SEC Regulation S-K Item 1300 (17 CFR §229.1300, definition of 'Material of economic interest')
Mining methods in which ore is extracted via subsurface excavations including shafts, declines, tunnels, and stopes, without removing large quantities of surface overburden. The JORC Code 2012 (Appendix 1) defines 'mining' as 'all activities related to extraction of metals, minerals and gemstones from the earth whether surface or underground,' and specifically references stope sizes and underground development as relevant Modifying Factors. Underground methods are favoured for deep, high-grade ore bodies where open-pit stripping ratios become uneconomic.
Based on: JORC Code 2012 (Appendix 1, Generic Terms
An engineered surface facility (heaps, terraced benches, or in-pit backfill) for storing overburden and non-economic mineralised waste rock. Design elements include foundation preparation, drainage collection, cover/encapsulation of PAG (potentially acid-generating) material, geotechnical stability (angles of repose 25-37°, benches, buttress), and progressive reclamation. Increasingly governed by GISTM (Global Industry Standard on Tailings Management) analogue standards for waste rock as regulatory scrutiny grows.
Waste Dump (Waste Rock Storage Facility)
ICMM 'Waste Rock and Tailings Facilities Position Statement' (icmm.com)
ANCOLD 'Guidelines on Tailings Dam Design, Construction and Operation'
The documented and verifiable sequence of custody, ownership, and handling of mineral material from extraction through processing to end-use, designed to prevent adulteration with non-compliant material. The OECD DDG Annex II identifies falsification of chain-of-custody as a red-flag risk. LBMA Responsible Gold Guidance V9 Step 1.3 requires refiners to establish a gold traceability system.
Chain of Custody (CoC) — Mineral Supply Chain Traceability
OECD Due Diligence Guidance, 3rd Edition (2016), Annex II
LBMA Responsible Gold Guidance V9 (2021), Section 1.3 'Establish a gold traceability system'
Digital platform (often built on a distributed ledger or permissioned blockchain) that records every physical-transformation, transport and ownership event between mine and finished product. Each event is timestamped and signed by the relevant counterparty, producing an auditable trail. Examples cited in metals supply-chain due-diligence include Circulor, Re|Source (cobalt) and Minehub. The output is used to demonstrate compliance with the EU Battery Regulation (Annex IV) and OECD Due Diligence Guidance Step 5 (third-party audit).
Under Dodd-Frank Act Section 1502 and SEC Rule 13p-1, issuers must disclose whether tin, tantalum, tungsten, or gold (3TG) in their products originated from the Democratic Republic of the Congo or adjoining countries and financed armed groups. Covered issuers file Form SD annually. The SEC defines 'conflict minerals' as cassiterite (tin ore), coltan (tantalum ore), wolframite (tungsten ore), and gold.
Conflict Minerals — Tin, Tantalum, Tungsten, Gold
Dodd-Frank Wall Street Reform and Consumer Protection Act (2010), Section 1502
SEC Rule 13p-1 and Form SD (17 CFR Part 249b)
The mandatory responsible sourcing standard for all LBMA Good Delivery List gold and silver refiners, finalised in November 2021. Based on the OECD Five-Step Due Diligence Framework, it requires KYC on gold-supplying counterparties, supply chain risk assessment against OECD Annex II risks (including AML/CTF and ESG factors), and annual independent assurance. Failure to comply may result in removal from the Good Delivery List.
LBMA Responsible Gold Guidance V9 / Responsible Silver Guidance
LBMA Responsible Gold Guidance V9 (November 2021), Introduction and Five-Step Due Diligence Framework; lbma.org.uk
Two approaches to tracking certified material through supply chains. In the segregated (identity-preserved) model, certified material is kept physically separate from non-certified material at all stages. In the mass balance model, certified and non-certified inputs are commingled but certified volumes are tracked administratively; a certified volume claim is made against documented inputs. Both are recognised in industry standards including ISEAL Alliance guidance.
Mass Balance versus Segregated Chain-of-Custody Models
ISEAL Alliance Chain of Custody Models & Definitions Guidance v1.0
LBMA Responsible Gold Guidance V9 (2021) — references to different material types and traceability approaches
A step-by-step management framework endorsed by OECD governments providing five steps for responsible mineral supply chains: (1) establish management systems; (2) identify and assess risks; (3) design and implement a risk-management strategy; (4) obtain independent third-party assurance; (5) report on due diligence. The Guidance and its Supplements on 3T and Gold define conflict-affected and high-risk areas (CAHRAs) by reference to Annex II red-flag risks.
OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas
OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, 3rd Edition (Paris: OECD Publishing, 2016); oecd.org
The Responsible Minerals Initiative (RMI), a program of the Responsible Business Alliance, runs the Responsible Minerals Assurance Process (RMAP)—an independent third-party audit program for smelters and refiners. RMAP Standards are aligned with OECD Due Diligence Guidance, EU Regulation 2017/821, and Dodd-Frank Section 1502. EU recognition of RMAP by the European Commission was achieved in 2025.
Responsible Minerals Initiative / Responsible Minerals Assurance Process (RMAP)
Responsible Minerals Initiative, RMAP Overview and Standards pages; responsibleminerals.org
EU Regulation 2017/821 (EU Conflict Minerals Regulation)
Dissolution of metal values from ore or concentrate using acidic aqueous solutions — typically sulfuric acid for copper, nickel, zinc, uranium and rare earths; hydrochloric acid for tin and zircon; nitric acid for niobium. Distinguished from cyanide leaching (gold) and alkaline leaching (bauxite/Bayer). Operates at ambient (heap, dump) or elevated conditions (agitation tanks, autoclaves). Selectivity, kinetics and reagent consumption depend on ore mineralogy, particle size, pulp density, temperature, redox potential and pH.
USGS 'Hydrometallurgy of Copper' Circular 1298 (
Habashi 'Textbook of Hydrometallurgy' 2nd ed.
Marsden & House 'Chemistry of Gold Extraction' 2nd ed.
Historic gold and silver recovery method in which finely-ground ore is contacted with mercury; the mercury dissolves precious metals to form an amalgam that is then retorted to recover pure gold/silver and recycle the mercury. Simple and cheap but highly polluting — banned or restricted in commercial mining under the UN Minamata Convention on Mercury (2013). Persists in artisanal and small-scale gold mining (ASGM), which is the largest global source of anthropogenic mercury emissions.
UN Minamata Convention on Mercury Article 7 & Annex C (mercuryconvention.org)
UNEP 'Global Mercury Assessment 2018' (unep.org); planetGOLD programme (planetgold.org)
A pressurised reaction vessel (typically titanium-clad steel, 3-6 MPa, 230-280°C) in which slurried ore or concentrate is leached with sulfuric acid to solubilise metal values that are refractory to atmospheric leach. Dominant modern route for nickel-cobalt laterite (Ravensthorpe, Ambatovy, Ramu, Coral Bay, Sherritt), uranium, refractory gold (POx — pressure oxidation before cyanidation), and molybdenum. Capital-intensive but achieves >95% recovery on ores otherwise economically uneconomic to process.
Autoclave — High-Pressure Acid Leach (HPAL)
Nickel Institute 'HPAL fundamentals' (nickelinstitute.org)
ASM Handbook Vol. 7 'Powder Metallurgy — Autoclaves'
The dominant process for converting molten pig iron from a blast furnace into steel. A water-cooled lance injects pure oxygen at supersonic velocity into a charge of hot metal plus ~20% scrap; carbon, silicon, manganese, and phosphorus oxidise exothermically, the bath self-heats to ~1,650 °C, and slag formed by fluxes captures impurities. Process time is 30–40 minutes per heat. Originally the LD (Linz-Donawitz) process commercialised in Austria in 1952. The World Steel Association reports BOF supplied roughly 71% of global crude-steel output in 2022.
BOF — Basic Oxygen Steelmaking (LD Process)
Based on: World Steel Association, World Steel in Figures 2023 —
IEA, Iron and Steel Technology Roadmap (2020) —
The dominant industrial process for refining bauxite into alumina (Al₂O₃), patented by Karl Josef Bayer in 1888. Crushed bauxite is digested in hot sodium hydroxide under pressure to dissolve aluminium hydroxide as sodium aluminate, the residue (red mud) is separated, and the liquor is cooled and seeded with gibbsite crystals so pure aluminium hydroxide precipitates. The hydroxide is then calcined at ~1,000 °C to yield smelter-grade alumina. The International Aluminium Institute reports the Bayer process supplies essentially all primary alumina feedstock for the Hall-Héroult smelters worldwide.
Based on: International Aluminium Institute, Alumina Production primer —
USGS Mineral Commodity Summaries 2024, Bauxite and Alumina chapter —
The physical and/or chemical separation of economically valuable constituents from a larger mass of mined material, producing a higher-grade concentrate suitable for further processing. The JORC Code 2012 (Appendix 1) lists beneficiation as a synonym for processing, metallurgy, and concentration, describing it as 'methods employed to prepare a final marketable product from material as mined,' including screening, flotation, magnetic separation, leaching, and washing. The USGS Mineral Commodity Summaries references beneficiation as the stage preceding smelting and refining at primary processing facilities.
Based on: JORC Code 2012 (Appendix 1, Generic Terms and Equivalents — 'metallurgy/beneficiation')
USGS Mineral Commodity Summaries 2024 (pubs.usgs.gov)
Extraction of metals from sulfide or low-grade oxide ore using microbial action — typically acidophilic chemolithotrophic bacteria such as Acidithiobacillus ferrooxidans and Leptospirillum spp. — which oxidise iron and sulfur, lowering pH and dissolving target metals (copper, gold, uranium, cobalt, nickel) into the lixiviant. Industrial implementations include BIOX® (atmospheric stirred-tank bio-oxidation of refractory gold, developed by Genmin/Gold Fields), GeoBiotics' GEOCOAT heap, and Codelco's Quebrada Blanca and Cerro Colorado copper bioheaps. Lower capex than pressure oxidation; slower kinetics but tolerant of arsenic-bearing ore.
ICMM Innovation in Mining publications —
A tall counter-current shaft furnace that reduces iron oxide ore (lump, sinter, or pellets) to molten pig iron (hot metal). Coke, ore, and limestone flux are charged at the top while preheated air ('hot blast') and pulverised coal/oil are injected through tuyeres at the bottom; carbon monoxide rising through the descending burden chemically reduces iron oxides, while gangue minerals combine with lime to form slag. Modern furnaces produce 8,000–14,000 t hot metal per day. Together with the basic oxygen furnace, the BF-BOF route accounts for roughly two-thirds of global steel and dominates CO₂ emissions in the sector.
Based on: World Steel Association, Steel Industry Co-Products factsheet —
Agglomeration of fine or powdery raw materials — DRI, manganese ore, ferroalloy fines, metallurgical coke breeze, or charcoal — into dense briquettes by mechanical compression in roll presses, with or without a binder. Hot Briquetted Iron (HBI) is DRI compressed at >650 °C into ~7,500 kg/m³ briquettes for safe ocean transport (the only DRI form classified as IMSBC Group C non-hazardous); cold briquetting is used for ferroalloy and recycling fines. The HBI Association tracks ~10 Mt/y of HBI traded globally as a low-residual EAF feedstock.
Based on: Hot Briquetted Iron Association —
Thermal treatment of an ore, concentrate, or hydroxide in the absence (or limited presence) of air, to drive off chemically-bound water, CO₂, or other volatile components without melting. Typical temperatures range from 500 °C (limestone, CaCO₃ → CaO + CO₂) to 1,000 °C (aluminium hydroxide → smelter-grade Al₂O₃, the final step of the Bayer process). Used industrially in cement clinker, alumina, lithium spodumene concentrate β-conversion (~1,050 °C), titanium dioxide, and rare-earth carbonate processing. The IEA tracks calcination as a major industrial decarbonisation challenge because the CO₂ release is inherent to the chemistry, not just the fuel.
International Aluminium Institute, Alumina Production primer —
A variant of CIP in which cyanide leaching and carbon adsorption happen simultaneously in the same agitated tank. The slurry, cyanide reagent, and activated carbon are combined in 4–8 tanks in series; gold dissolving from the ore is captured by carbon at the same time, preventing 'preg-robbing' losses to native carbonaceous matter and shortening total residence time. The trade-off is higher cyanide consumption and carbon abrasion. Used widely in West African (Tarkwa, Ahafo) and Nevada operations on transitional and refractory ores.
A two-stage hydrometallurgical recovery process for gold (and silver) from cyanide leach slurries. The ore is first leached with sodium cyanide in agitated tanks to dissolve gold as the aurocyanide complex Au(CN)₂⁻; the pregnant slurry is then pumped counter-current through 4–7 adsorption tanks containing coarse activated carbon, onto which gold adsorbs. Loaded carbon is screened off, eluted in hot caustic-cyanide, electrowon, and smelted to doré. CIP suits clean, low-clay ores; for high-clay or carbonaceous feed, CIL (leach and adsorption in the same tank) is preferred.
World Gold Council, Gold Production technical brief —
In copper electrorefining, an anode is the impure cast copper plate (typically ~99% purity from a smelter) that dissolves anodically in an electrolytic cell; a cathode is the pure copper plate deposited at the negative electrode, reaching 99.9935% Cu minimum purity. The LME Special Contract Rules specify that deliverable copper must conform to BS EN 1978:2022 (Cu-CATH-1), GB/T 467-2010, or ASTM B115-10(2021) cathode Grade 1. EN 1978:2022 defines a cathode as a 'flat, unwrought product made by electrolytic deposition.'
Based on: LME Special Contract Rules for Copper Grade A (LME Chemical Composition document, lme.com)
Recovery of a dissolved metal from solution by displacing it with a less-noble sacrificial metal per the electrochemical series — classical example: adding iron scrap to copper-sulfate leach solutions yields sponge copper and dissolves iron. Simple, cheap, and used historically for copper, plus for gold cementation with zinc dust (Merrill-Crowe process), silver cementation with copper, and cobalt/nickel cementation with iron in cobalt refineries.
Cementation (Metallurgical Precipitation)
Habashi 'Textbook of Hydrometallurgy' ch. 24
ASM Handbook Vol. 14A 'Metalworking — Cementation'
The unit-operations family that reduces run-of-mine ore to fine particles suitable for downstream mineral separation — encompasses crushing (jaw, cone, gyratory), grinding (SAG, ball, rod, HPGR) and classification (cyclones, screens). Typically 30-60% of mine operating cost and 3-5% of global electricity consumption. Optimised via Bond Work Index (Wi), circuit modelling (JKSimMet) and mine-to-mill programmes. Prerequisite for flotation, leaching and gravity concentration.
Napier-Munn et al. 'Mineral Comminution Circuits' JKMRC Monograph
Wills & Finch 'Mineral Processing Technology' 8th ed. (elsevier.com)
An intermediate product produced by beneficiation of ore in which the valuable mineral content has been substantially upgraded from run-of-mine grades. Copper concentrates typically contain 25–30% Cu, compared with ore grades of 0.5–2% Cu. The LBMA Responsible Gold Guidance (v9, Definitions) defines 'gold concentrate' as 'an intermediate material produced from the processing of gold ore to achieve a higher concentration, but that still requires further intermediate processing to produce doré.' Concentrates are sold to smelters who apply Treatment Charges (TC) and Refining Charges (RC).
Based on: LBMA Responsible Gold Guidance v9, Definitions ('Gold concentrate')
JORC Code 2012 (Appendix 1, Generic Terms — 'metallurgy/beneficiation')
Alkaline dissolution of gold and silver from ore using dilute sodium or calcium cyanide solutions in the presence of oxygen, forming soluble aurocyanide [Au(CN)₂]⁻ and argentocyanide complexes. Dominant primary gold-extraction chemistry worldwide (~85% of production). Practiced in agitated tanks (CIL/CIP), heap-leach pads, and vat leach. Governed by the International Cyanide Management Code; refractory sulfide ores require pretreatment (roasting, pressure oxidation, biooxidation) before cyanidation.
International Cyanide Management Institute 'Cyanide Code' (cyanidecode.org)
USGS Professional Paper 1857 'Gold-Bearing Sediment-Hosted Deposits'
The dominant industrial method for growing large single crystals of silicon (and other semiconductors and oxides). A seed crystal mounted on a pull rod is dipped into a melt of high-purity polysilicon held in a quartz crucible inside an inert-atmosphere puller; the seed is rotated and slowly withdrawn while the crucible rotates in the opposite direction, allowing a cylindrical single crystal — the ingot — to grow at the solid-liquid interface. Modern 300 mm CZ silicon ingots reach >2 m length and >250 kg. Invented by Jan Czochralski (1916). Foundational to the global semiconductor and photovoltaic industries.
Based on: J. Czochralski, Zeitschrift für physikalische Chemie 92, 219 (1918)
SEMI International Standards (M1 Silicon Wafer specifications) —
International Energy Agency PVPS Reports —
Iron produced by reducing iron-oxide pellets or lump ore in the solid state, at temperatures below the melting point (~800–1,200 °C), using a reducing gas (natural gas in the Midrex and HYL-Energiron shaft furnaces) or solid coal (rotary kilns). The product — a porous, metallic 'sponge iron' with ~90–95% metallisation — is charged hot or cold into EAFs as a low-residual feedstock. Hydrogen-based DRI is the principal low-CO₂ ironmaking route under development (e.g., HYBRIT, H2 Green Steel). World DRI output reached 127 Mt in 2022 per Midrex Statistics Book.
Based on: Midrex Technologies, World Direct Reduction Statistics 2022 —
A semi-refined gold-silver alloy bar produced at a mine or processing facility following smelting of concentrate or bullion, typically 85–90% precious metal purity. The LBMA Responsible Gold Guidance v9 defines gold doré as 'a bar of newly Mined Gold metal alloy, generally originating from extensive processing of ores and smelting at mines to a high concentration (normally of 85%–90% purity),' noting it 'is not commercial quality and must then be transported to a refinery to be directly refined, without further intermediate processing.' Doré is the primary feedstock for LBMA-accredited refineries producing Good Delivery bars.
Based on: LBMA Responsible Gold Guidance v9, Definitions ('Gold doré')
A steelmaking process in which electric arcs struck between graphite electrodes and a charge — typically scrap, with optional DRI or pig iron — provide the heat needed to melt the metal and run refining reactions. Modern AC and DC EAFs operate at 80–250 MVA and tap heats of 60–300 t in 35–60 minutes. EAFs are the principal route for recycled steel and the lowest-CO₂ commercial steelmaking route when powered by low-carbon electricity. The World Steel Association reports EAF produced about 29% of global crude steel in 2022, rising in regions with abundant scrap.
An electrochemical process in which an electric current is passed through an electrolyte solution between an impure metal anode and a pure cathode, dissolving the anode and depositing high-purity metal onto the cathode. Applied to copper, electrorefining produces LME-deliverable Grade A cathodes (Cu-CATH-1) with impurities totalling no more than 0.0065% by the limits specified in BS EN 1978:2022. The USGS Mineral Commodity Summaries 2024 records the US operates two primary electrolytic refineries producing cathode from copper anodes.
Based on: LME Special Contract Rules for Copper Grade A (lme.com, Chemical Composition document — BS EN 1978:2022)
USGS Mineral Commodity Summaries 2024 (copper section)
A secondary refining process in which a consumable electrode is immersed in a pool of molten reactive slag (typically CaF₂-CaO-Al₂O₃) at ~1,700 °C; electrical resistance through the slag generates heat, melts the electrode tip, and refines droplets that fall through the slag layer into a water-cooled mould to solidify into a clean ingot. ESR removes sulfur, oxide inclusions, and tramp elements while controlling solidification structure. Used for tool steel, bearing steel, large turbine forgings, and superalloys. Often paired with VAR for high-performance aerospace and nuclear applications.
Based on: ASM Handbook Vol. 15: Casting —
Recovery of metal from a pregnant leach solution by passing direct current between insoluble anodes (Pb-Ca, MMO) and cathode blanks, depositing pure metal at the cathode. Terminal step in SX-EW copper (paired with solvent extraction), zinc electrolysis (roast-leach-EW), cobalt, nickel, gold (Zadra/AARL desorption), silver and platinum-group metals refining. Distinguishes from electrorefining, which starts from an impure anode instead of a solution.
ASM Handbook Vol. 5 'Surface Engineering — Electrowinning'
Ferroalloys are master alloys of iron with one or more alloying elements, produced primarily for use as additives in steelmaking and foundry casting to impart specific mechanical, chemical or physical properties. The main commercial grades are ferromanganese (FeMn — high-carbon, medium-carbon, low-carbon), silicomanganese (SiMn), ferrosilicon (FeSi 65/75/90%), ferrochrome (FeCr — high-carbon HC, charge-chrome, low-carbon), ferromolybdenum (FeMo, ~60% Mo), ferrovanadium (FeV, ~80% V), ferroniobium (FeNb, ~65% Nb), ferrotitanium and ferrotungsten. Pricing is typically per kg or lb of contained element basis, quoted CIF Rotterdam or in-warehouse Pittsburgh by Fastmarkets MB, Argus and Platts. USGS publishes annual ferroalloy production and consumption statistics.
Based on: USGS — Mineral Commodity Summaries (Manganese, Chromium, Silicon, Molybdenum, Vanadium, Niobium)
A physico-chemical beneficiation process in which finely ground ore is agitated in water with chemical reagents; air bubbles selectively attach to hydrophobic mineral particles and carry them to the surface froth, where they are skimmed off as concentrate. The JORC Code 2012 (Appendix 1) identifies flotation as one of the standard methods of beneficiation/metallurgy used to 'prepare a final marketable product from material as mined.' Froth flotation is the dominant method for producing copper, lead, zinc, nickel, and molybdenum concentrates at operating mines worldwide.
The only commercial process in use for primary aluminium production. Alumina is dissolved in a bath of molten cryogenite (sodium aluminium fluoride, Na₃AlF₆) at about 950 °C; direct current is passed between consumable carbon anodes and a carbon-cathode-lined cell, depositing molten aluminium on the cell floor while CO₂ evolves at the anode. Patented independently in 1886 by Charles Martin Hall (US) and Paul Héroult (France). Modern smelters consume roughly 13–15 MWh per tonne of aluminium, making the process the largest single electricity user in many countries.
Hall-Héroult Electrolytic Aluminium Smelting
Based on: International Aluminium Institute, Primary Aluminium Smelting Energy Intensity (2023) —
A chemical reaction in which water molecules decompose a compound, breaking bonds and producing new species. In hydrometallurgy, hydrolysis controls the precipitation and separation of metals from leach solutions — e.g., precipitation of iron as goethite/hematite in laterite nickel processing, uranium hydrolysis in acid-leach circuits, and hydrolysis-based purification of rare earths. Governed by solution pH, temperature, and metal-ion speciation. Key step in acid leaching, autoclave (HPAL) circuits, and solvent extraction routes.
USGS 'Hydrometallurgy' publications (pubs.usgs.gov)
IUPAC 'Compendium of Chemical Terminology' (
Reversible transfer of ions between a solid resin bead (cation- or anion-selective, functionalised polymer) and an aqueous phase. Used to recover uranium from acid or alkaline leach liquors, extract gold from cyanide solutions (RIP/RIL — resin-in-pulp / resin-in-leach), separate rare-earth mixtures, remove impurities from copper electrolyte, and polish process waters. Competes with solvent extraction; preferred at low tenor or in fine-slime slurries where SX suffers phase disengagement problems.
USGS 'Ion Exchange in Uranium Processing'
IAEA TECDOC-1396 'Guidebook on Environmental Impact Assessment for In-Situ Leach Mining Projects'
Purolite technical bulletins (purolite.com)
The dominant industrial process for producing titanium and zirconium metal. Titanium tetrachloride (TiCl₄) — itself made by chlorinating rutile or ilmenite concentrate — is reduced with molten magnesium under an inert argon atmosphere at ~900 °C inside a sealed steel retort, producing porous 'titanium sponge' and magnesium chloride byproduct. The sponge is then vacuum-distilled, crushed, and consolidated by VAR or EBM into ingots. Developed by William Justin Kroll, US Patent 2,205,854 (1940); Kroll remains the metal industry's principal titanium route despite decades of attempts at continuous alternatives.
Kroll Magnesiothermic Reduction (Ti, Zr)
Based on: US Patent 2,205,854 (Kroll, 1940) —
USGS Mineral Commodity Summaries 2024, Titanium chapter —
ITA (International Titanium Association) —
Heap leaching is a hydrometallurgical process in which a weak acid solution is percolated through a heap of crushed ore on an impermeable pad, dissolving copper (or gold) into a pregnant leach solution (PLS). The PLS is then processed by solvent extraction (SX) to purify and concentrate the copper, followed by electrowinning (EW) to deposit cathode copper directly—bypassing smelting entirely. The USGS Mineral Commodity Summaries 2024 reports that 14 electrowinning (electrowon) refineries operate in the US, reflecting the significance of the SX-EW route for oxide ore deposits.
Heap Leaching and Solvent Extraction–Electrowinning (SX-EW)
Based on: USGS Mineral Commodity Summaries 2024 (copper section — '14 electrowon refineries')
JORC Code 2012 (Appendix 1 — leaching listed under metallurgy/beneficiation methods)
The quality specification for copper deliverable against LME contracts. Per the LME Special Contract Rules for Copper (Chemical Composition document, lme.com), deliverable copper must conform to one of three equivalent standards: BS EN 1978:2022 (Cu-CATH-1), GB/T 467-2010 (Cu-CATH-1), or ASTM B115-10(2021) (Cathode Grade 1). The specification requires cathode shape, and limits total impurity elements to 0.0065% maximum (including Ag ≤0.0025%, Pb ≤0.0005%, S ≤0.0015%). All copper must also be of an LME-approved brand and delivered in 25-tonne lots (±2%).
The physical phase change from solid to liquid when a metal is heated above its melting point, without altering its chemical composition. Distinct from smelting (which uses chemical reduction to extract metal from ore). Pure metal melting points: gold 1064°C, silver 962°C, copper 1085°C, aluminium 660°C, iron 1538°C, tungsten 3422°C, platinum 1768°C. Industrial melting occurs in induction furnaces, arc furnaces, or crucibles under controlled atmosphere (argon, vacuum) to prevent oxidation. Precedes casting, alloying, and remelting for grain-structure control.
ASM Handbook Vol. 15 'Casting' (asm.org) — melting practice fundamentals
NIST WebBook 'Elemental melting points' (webbook.nist.gov)
An older but still widely-used hydrometallurgical recovery route for gold and silver from cyanide solutions, especially those high in silver. The pregnant cyanide solution is clarified, de-oxygenated under vacuum, dosed with zinc dust (and sometimes lead nitrate as activator), and filtered: zinc displaces precious metals from solution as a fine precipitate, which is dried, smelted with fluxes, and cast to doré. Patented by Charles Merrill (1903) and refined by T. B. Crowe (1916). Favoured over CIP at silver-dominant operations (Coeur d'Alene district, Fresnillo) because activated carbon's silver-loading is poor.
Silver Institute, World Silver Survey 2023 —
Fixed unit (typically 1.0 unit of Cu, 1.0% Zn, etc.) deducted from contained metal before applying payable percent. Compensates the smelter for irreducible processing losses.
Industry standard; references: ICSG, World Bureau of Metal Statistics
Percentage of contained metal in concentrate that the smelter pays the miner for, net of metallurgical losses. Typical: 96.5% Cu in copper concentrate, 75% Mo in moly concentrate.
International Copper Study Group — concentrate payability
Agglomeration of fine iron-ore concentrate (typically <45 μm, from magnetite or hematite beneficiation) into spherical 9–16 mm pellets suitable for charging to a blast furnace or DRI shaft furnace. The concentrate is mixed with binder (bentonite or organic), balled in rotating drums or discs, dried, and indurated at 1,250–1,350 °C in a travelling-grate or grate-kiln furnace where bonds form by oxidation of magnetite to hematite and partial liquid-phase sintering. Pellets dominate the seaborne iron-ore market for DRI feed because of their high mechanical strength, narrow size distribution, and consistent metallurgical properties.
Based on: Vale, Iron Ore Pellets technical reference —
The leading process for primary magnesium production worldwide, accounting for the majority of Chinese output. Calcined dolomite (CaO·MgO) is mixed with ferrosilicon and fluorspar, briquetted, and reduced under vacuum at ~1,200 °C inside externally heated retorts; magnesium vapour distils to the cooler end of the retort and condenses as crown magnesium. Developed by Lloyd Montgomery Pidgeon at the National Research Council of Canada, US Patent 2,330,143 (1943). Energy-intensive and high-CO₂, the process is increasingly scrutinised under EU CBAM.
Based on: US Patent 2,330,143 (Pidgeon, 1943) —
USGS Mineral Commodity Summaries 2024, Magnesium chapter —
Chemical removal of a dissolved metal from solution as an insoluble solid — most commonly as hydroxide (raise pH with NaOH/Ca(OH)₂/CaO — nickel/cobalt MHP, zinc, aluminium), sulfide (H₂S/NaHS — copper/nickel/cobalt MSP), or carbonate (rare earths). Also encompasses jarosite/goethite iron precipitation in zinc refineries and gypsum precipitation for calcium/sulfate control. A workhorse of hydrometallurgical purification and effluent treatment.
Precipitation (Metal Recovery by Precipitation)
Nickel Institute 'MHP and MSP technical brief' (nickelinstitute.org)
A hydrometallurgical process in which refractory sulfide ore or concentrate — most commonly gold locked in pyrite or arsenopyrite — is oxidised in a horizontal autoclave under pressure (typically 1,800–3,400 kPa) and temperature (190–230 °C) with pure oxygen injection. Sulfides decompose to soluble sulfates, liberating the encapsulated gold for subsequent cyanide leaching with high recoveries (often >95%). Major commercial users include Barrick (Goldstrike, Pueblo Viejo), Newmont (Twin Creeks), and Polyus (Olimpiada). Distinct from atmospheric bioleaching by faster kinetics and lower capital intensity at scale.
Based on: SME Mineral Processing & Extractive Metallurgy Handbook (Society for Mining, Metallurgy & Exploration) —
Pyrometallurgy uses high-temperature processes (roasting, smelting, converting, refining) to extract metals; it is the dominant route for sulphide ores such as copper concentrate and gold doré. Hydrometallurgy uses aqueous chemical solutions (acids, alkalis, cyanide) to leach, extract, and recover metals; it is applied to oxide ores and low-grade materials. The JORC Code 2012 (Appendix 1) lists both routes under 'metallurgy/beneficiation,' noting they encompass methods for preparing marketable products. The hydrometallurgical SX-EW route now accounts for approximately 20% of world copper production.
Based on: JORC Code 2012 (Appendix 1, Generic Terms and Equivalents — 'metallurgy')
USGS Mineral Commodity Summaries 2024 (copper — electrowon refineries)
The final stage of metal purification following smelting, producing market-grade metal meeting the quality specifications of exchanges and industrial buyers. For copper, electrolytic refining at primary refineries yields Grade A cathode (≥99.9935% Cu per LME Special Contract Rules / BS EN 1978:2022). The USGS Mineral Commodity Summaries 2024 records that the US operates two primary electrolytic refineries and 14 electrowinning refineries, with refinery output classified as primary (from ore/concentrate) or secondary (from scrap).
Based on: USGS Mineral Commodity Summaries 2024 (pubs.usgs.gov, copper section)
LME Special Contract Rules for Copper Grade A (lme.com, Chemical Composition document)
A pyrometallurgical pre-treatment in which finely-ground sulfide ore or concentrate is heated below its melting point in a controlled-oxygen atmosphere to oxidise sulfur to SO₂ and convert metal sulfides to oxides (or sulfates) more amenable to smelting or leaching. Modern installations use fluidised-bed roasters at 600–1,000 °C; the off-gas is captured for sulfuric-acid production. Common applications include zinc concentrates (ZnS → ZnO), pyrite, molybdenite (MoS₂ → MoO₃), and arsenic-bearing refractory gold ores. Distinct from smelting (which melts) and calcining (which drives off CO₂ or H₂O).
Based on: US Bureau of Mines / USGS Process Mineralogy publications —
International Lead and Zinc Study Group, ZnO Production Methods —
ASM Handbook Vol. 7: Powder Metallurgy / Vol. 14A: Metalworking
A high-temperature pyrometallurgical process in which concentrate or ore is melted with flux in a furnace to chemically reduce and separate the target metal from slag and other impurities, producing crude or blister metal. The USGS Mineral Commodity Summaries 2024 reports that US copper is processed at two primary smelters that receive concentrate feed and produce copper anodes. The resulting crude metal (e.g., blister copper at ~99% purity) requires subsequent electrolytic refining to achieve LME-deliverable Grade A cathode quality.
LBMA Responsible Gold Guidance v9 ('Gold doré' — smelting produces doré from concentrate)
Selective transfer of a target metal ion from an aqueous leach solution into an immiscible organic phase containing a chelating extractant (LIX/Cyanex/D2EHPA families), followed by stripping back into a clean aqueous phase for electrowinning or precipitation. Enables purification and concentration in one loop. Dominant route for copper (SX-EW ~20% of global mined copper), uranium (yellow cake refining), rare earth separation, cobalt/nickel split, and vanadium recovery.
USGS 'Solvent extraction in hydrometallurgy'
Ritcey 'Solvent Extraction — Principles and Applications' vols 1-2
TC/RC are the fees paid by mining companies to custom smelters and refiners for converting copper concentrate into refined cathode. Treatment Charges (TC) are expressed in US dollars per dry metric tonne of concentrate processed at the smelter; Refining Charges (RC) are expressed in US cents per pound of payable copper refined by electrolysis. Together they represent the smelter's gross margin on processing. TC/RC levels are negotiated annually between major miners and smelters, and serve as a key indicator of concentrate market tightness.
Based on: LME Special Contract Rules for Copper Grade A (lme.com)
LME Insight — How Are LME Reference Prices Used in Physical Metals Contracts
Fastmarkets copper TC/RC methodology notes (fastmarkets.com)
A secondary refining process for high-integrity ingots of titanium, nickel-base superalloys, zirconium, and special steels. An electrode of consumable, pre-alloyed material is struck against a small molten pool inside a water-cooled copper mould under vacuum (~10⁻³ Pa); a DC arc melts the electrode tip drop-by-drop, allowing gases and volatile impurities to escape and the metal to solidify directionally. The result is a clean, homogeneous, segregation-controlled ingot used for jet-engine discs, surgical implants, and nuclear cladding. Often combined upstream with ESR or VIM in 'triple-melt' practice (VIM-ESR-VAR).
Layer-by-layer construction of a part from metal powder or wire using a focused energy source. Main families per ISO/ASTM 52900: Powder Bed Fusion (PBF — laser or electron beam melts powder bed, e.g., SLM, EBM), Directed Energy Deposition (DED — powder or wire fed into melt pool), Binder Jetting (binder droplets glue powder, then sintered), Sheet Lamination, Material Extrusion (metal-bound filament). Used for aerospace structural brackets (Airbus, GE LEAP fuel nozzles), patient-specific medical implants (Ti-6Al-4V), tooling with conformal cooling channels. Build rates: 5-150 cm³/h. Materials: Ti, Ni-superalloys, stainless 316L, 17-4 PH, AlSi10Mg, Co-Cr.
Metal Additive Manufacturing (AM / 3D Printing)
ISO/ASTM 52900 'Additive Manufacturing — General Principles — Terminology'
ASTM Committee F42 on Additive Manufacturing Technologies
Heat treatment in which metal is heated to a defined temperature, held, then cooled slowly to soften it, increase ductility, remove internal stresses, and refine grain structure. Steel: heated above the upper critical (Ac3) → slow furnace cool — produces coarse pearlite, lowest hardness. Aluminium and copper alloys: heated to dissolve cold-worked dislocations (~340-450°C for Al). Process annealing (sub-critical): used between cold-rolling passes to restore ductility. Stress-relief annealing: 550-650°C for steel, eliminates residual stresses without changing microstructure.
Annealing (Full, Process, Stress-Relief)
ASM Handbook Volume 4A 'Steel Heat Treating Fundamentals and Processes', ASM International
ASTM A1033 'Standard Practice for Quantitative Measurement and Reporting of Hypoeutectoid Carbon and Low-Alloy Steel Phase Transformations'
Electrochemical conversion of an aluminium surface into a hard, porous Al2O3 layer integral with the substrate. Type I (chromic acid): 1-7 μm, dye-receptive, aerospace; Type II (sulfuric acid): 5-25 μm, decorative and architectural (the dominant variant); Type III (hard anodise, sulfuric at 0-5°C): 25-150 μm, hardness up to 500 HV, used for pistons, gears, valve bodies. Followed by sealing in hot water or nickel-acetate to close pores. Also applied to Ti (colour-coded surgical implants by oxide-film interference) and Mg.
ASTM B580 'Standard Specification for Anodic Oxide Coatings on Aluminum'
MIL-A-8625F superseded by AMS 2469 / AMS 2470
Joining metals using a filler metal melted between mating surfaces — substrate does not melt (distinguishes from welding). Brazing: filler T_melt > 450°C (commonly silver, copper-zinc, or nickel-based filler) — strong, high-temperature service. Soldering: filler T_melt < 450°C (tin-lead historically, lead-free Sn-Ag-Cu since 2006 RoHS) — electronics, plumbing. Joint design: lap, butt, or scarfed; clearance: 0.025-0.125 mm (capillary action). Atmosphere: flux, vacuum, or reducing gas. Aerospace brazing of Ni-superalloy honeycomb in vacuum furnaces.
Brazing & Soldering (Filler-Metal Joining)
AWS C3.6 'Specification for Furnace Brazing', AWS A5.8 'Filler Metals for Brazing'
Heat-treatment family that creates a hard, wear-resistant surface layer on a tough ductile core — the part is not through-hardened. Principal routes: carburising (diffuse carbon into low-carbon steel at 900-950°C, followed by quench and temper), nitriding (diffuse nitrogen at 500-550°C), carbonitriding (both), induction hardening (localised RF heating + quench), and flame hardening. Standard for gears, cams, camshafts, bearing races, crankshafts, and firearms components — where wear resistance is needed without embrittlement.
ASM Handbook Vol. 4A 'Steel Heat Treating Fundamentals and Processes'
The manufacturing process of pouring molten metal into a mould cavity where it solidifies into a shaped part. Primary metal-forming route for complex geometries that would be uneconomic to machine from solid. Major families: sand casting (expendable mould, low cost, large parts), investment casting (lost-wax, precision), die casting (permanent metal mould, high volume, Zn/Al/Mg alloys), continuous casting (steel billets/slabs/blooms — dominant modern steel route), and centrifugal casting (rotating mould for pipes and cylinders). Governs microstructure via cooling rate and mould material.
ASM Handbook Vol. 15 'Casting' (asm.org)
American Foundry Society 'Casting Design Handbook' (afsinc.org); worldsteel.org 'Continuous casting' — accounts for ~96% of global crude steel output
Molten metal poured into a rotating mould (300-3,000 rpm); centrifugal force pushes denser metal outward against the mould wall while impurities and gases concentrate at the inner free surface (later machined out). Yields parts with very fine grain, no central porosity, and excellent radial mechanical properties. Used for pipes, cylinder liners, large bushings, rocket motor cases. Two variants: true centrifugal (axis-symmetric parts), and semi-centrifugal (any geometry, mould rotates around a vertical axis).
ASM Handbook Volume 15 'Casting', ASM International
Thin-film deposition process in which volatile precursor gases (halides, hydrides, organometallics) react on a heated substrate to form a solid coating and gaseous by-products. Typical films: TiC/TiN/Al₂O₃ on cemented-carbide cutting inserts, tungsten CVD in semiconductor interconnects, silicon carbide protective coatings on nuclear TRISO fuel, and CVD diamond. Operates at 800-1100°C — higher than PVD — producing dense, thick, and stoichiometrically pure films. Includes PECVD, MOCVD and ALD subfamilies.
ASM Handbook Vol. 5 'Surface Engineering — CVD'
SEMI E118 'Chemical Vapor Deposition Equipment'
Bonding a thin layer of one metal onto a substrate of a different metal to combine surface properties (corrosion, wear, cost) with bulk properties (strength, weight). Methods: roll-bonding (Alclad aluminium, gold-filled), explosion welding (Ti/steel, Cu/steel), weld overlay (Inconel on carbon steel pipe), and laser cladding. Distinct from plating (thicker, metallurgically bonded, structurally load-bearing) and from painting/coating. Widely used in shipbuilding, pressure vessels, coinage, and battery current-collectors.
ASM Handbook Vol. 6 'Welding, Brazing and Soldering — Explosion Welding'
ASTM B432 'Copper and Copper-Alloy Clad Steel Plate'
Rolling below recrystallisation temperature (usually room temperature) — increases strength and hardness through work-hardening, produces tighter dimensional tolerances and better surface finish than hot rolling. Typical reduction per pass: 5-30%, total 50-90% from hot band to cold-rolled sheet. Used for automotive body panels, appliances, packaging (tinplate, beverage can stock), electrical steel (NGO/GO). Output thickness: 0.15-3 mm. Followed by annealing to restore ductility.
AIST 'Cold Rolling of Steel' technical reference and ASTM A1008/A1008M 'Standard Specification for Steel, Sheet, Cold-Rolled'
Process where molten metal is solidified into a 'semi-finished' billet, bloom, or slab for subsequent rolling. Liquid steel from a ladle is poured through a tundish into a water-cooled copper mould; partially solidified strand is withdrawn continuously and cut to length. Replaced ingot casting from the 1960s onward — accounts for ~96% of world crude steel today (vs ~5% in 1970). Yield improvement vs ingot route: 88-92% vs 80-82%. Used for steel, aluminium, copper.
worldsteel Association, 'Steel Production' fact sheet
AIST 'Steelmaking and Refining Volume', steelfoundation.aist.org
Forming a flat sheet blank into a hollow cup or box by a punch pressing it through a die, with the blank holder controlling material flow. Used for beverage cans (Al/steel), automotive fuel tanks, kitchen sinks, ammunition cartridges. Drawability quantified by Limit Drawing Ratio (LDR) and the r-value (Lankford coefficient) — measured per ASTM E517. Material requirements: high formability (low yield, high uniform elongation, high r-value). Typical: IF-steel for autobody, 3104-H19 for can bodies.
ASTM E517 'Standard Test Method for Plastic Strain Ratio r for Sheet Metal'
Forcing molten metal under high pressure (typically 10-175 MPa) into a steel mould cavity (the 'die'). Used for high-volume production of complex near-net-shape parts in aluminium, zinc, magnesium, and copper alloys. Two variants: hot-chamber (for Zn, Mg, Pb alloys, melt held in the machine) and cold-chamber (for Al, Cu, alloys with high melting points). Cycle times: 0.5-3 seconds. Dimensional tolerance: ±0.1 mm. Dominant in automotive structural castings since Tesla popularised gigacasting (2020).
North American Die Casting Association (NADCA), 'NADCA Product Specification Standards for Die Castings'
Pulling a metal rod or tube through a tapered die to reduce cross-section and increase length. Cold-drawing improves dimensional accuracy, surface finish, and strength via work-hardening. Wire drawing: hot-rolled rod (Ø5-10 mm) drawn through successive tungsten-carbide dies down to Ø0.01 mm (e.g., music wire, surgical sutures, optical fibre cores). Tube drawing: produces seamless tube with controlled wall thickness. Bar drawing: produces 'cold-drawn bar' with bright finish and ±0.05 mm tolerance.
Wire Association International, 'Wire Industry Reference Manual', wirenet.org
ASTM B221 (Al), B187 (Cu), A510 (steel rod)
Chemical (no external current) deposition of metal from a solution containing a reducing agent (typically sodium hypophosphite or borohydride). Electroless nickel (EN) is the dominant variant: deposits Ni-P (3-13 wt% P) or Ni-B alloys with uniform thickness (±5%) across complex geometries — impossible with electroplating due to current-density variations. Used for valves, pumps, electronic substrates, oil-and-gas downhole tools. Heat treatment (400°C) precipitates Ni3P → hardness rises to 800-1,000 HV.
Electroless Plating (Autocatalytic Deposition)
ASTM B733 'Standard Specification for Autocatalytic (Electroless) Nickel-Phosphorus Coatings on Metal'
Coating a metal substrate (cathode) with a thin layer of another metal (Cr, Ni, Cu, Au, Ag, Zn, Sn) by passing current through an electrolyte containing dissolved ions of the coating metal. Coating thickness: 0.5-100 μm. Applications: hard chrome on hydraulic rods (50-500 μm, wear resistance), decorative Ni-Cr on faucets, Zn (electrogalvanising) on cold-rolled coil, gold on electrical connectors (0.05-3 μm). Throwing power, current efficiency, and brightener chemistry determine quality.
ASTM B374 'Standard Terminology Relating to Electroplating'
National Association for Surface Finishing (NASF), nasf.org
Forcing a billet of heated metal through a shaped die under compressive force to produce a continuous profile with constant cross-section. Direct extrusion: billet pushed through stationary die (most common, ~90% of aluminium extrusion). Indirect: die moves through stationary billet (lower friction, higher quality). Hydrostatic: pressurised fluid surrounds the billet (no friction). Used heavily for aluminium structural sections (window frames, heat sinks, rails), copper tube, magnesium aerospace parts. Extrusion ratio: 10:1 to 100:1.
Extrusion (Direct, Indirect, Hydrostatic)
Aluminum Association, 'Aluminum Extrusion Manual' and ANSI H35.2 'Dimensional Tolerances for Aluminum Mill Products'
Localised compressive deformation of metal — typically heated to 0.7-0.9 × T_melt — using hammers, presses, or rolls. Open-die forging: workpiece deformed between flat or simple dies (used for large shafts, marine crankshafts up to 350 tonnes). Closed-die forging: shaped dies enclose the workpiece (precision parts, turbine discs, connecting rods, hand tools). Ring rolling: doughnut-shaped preform expanded between rollers (wind-turbine bearing races up to Ø10 m). Forged parts exhibit aligned grain flow → 20-30% higher fatigue strength vs cast or machined equivalents.
Forging Industry Association (FIA), 'FIERF — Forging Industry Education and Research Foundation' technical handbook, forging.org
Controlled heating and cooling of metal to modify its microstructure and mechanical properties without changing shape — the generic parent process encompassing annealing (soften/stress-relieve), normalising (uniform grain), quenching (harden by rapid cooling), tempering (relieve quenched brittleness), solution heat treatment (dissolve alloying elements), ageing/precipitation hardening (Al, Ni, Ti alloys), and case hardening (surface hardening only). Controls yield strength, hardness, toughness, ductility, and residual stress state.
ASM Handbook Vol. 4 'Heat Treating' (asm.org)
ISO 15787 'Technical product documentation — Heat-treated ferrous parts'
Plastic deformation of metal above its recrystallisation temperature (>0.6 × T_melt absolute) between rotating rolls — recrystallises grains continuously, no work-hardening. Used for the first reduction from cast slab/billet to plate, hot-rolled coil (HRC), bar, structural sections. Temperatures: steel 900-1,250°C, aluminium 400-500°C, copper 750-950°C. Output thickness: 1.5-200+ mm. Surface oxide ('mill scale') forms — removed downstream by pickling. Dominant route for structural steel and HR coil (~75% of world steel output).
Association for Iron & Steel Technology (AIST), 'The Making, Shaping and Treating of Steel — Flat Product Rolling Volume', steelfoundation.aist.org
Immersing steel in molten zinc (~450°C) to form a metallurgically bonded, multi-layer Zn-Fe coating that protects against corrosion both by barrier and by sacrificial (cathodic) action. Coating mass: 100-1,100 g/m² (both sides) per ASTM A123. Substrate: structural steel, pipes, fasteners, sheet steel (continuous galvanising line for cold-rolled coil). Service life in atmospheric exposure: 30-100+ years depending on environment (per ISO 9223 categories C1-C5).
ASTM A123/A123M 'Standard Specification for Zinc (Hot-Dip Galvanized) Coatings on Iron and Steel Products'
American Galvanizers Association (AGA), galvanizeit.org
Near-net-shape casting using a single-use ceramic shell built around a wax pattern. The wax is melted out ('lost'), and molten metal is poured into the cavity. Produces parts with surface finish 1.6-3.2 μm Ra and tolerance ±0.1 mm/25 mm — fine enough to skip machining. Used for turbine blades (Ni-superalloys), aerospace structural parts, medical implants (Ti-6Al-4V), jewellery (Au, Pt). Origins: 5,000 years old (Bronze Age) — modern industrial revival in WWII for jet engine blades.
Investment Casting Institute, 'IC Technical Reference Guide', investmentcasting.org
Material removal from a workpiece using controlled cutting tools to achieve final shape, tolerance and surface finish. Principal processes: turning (lathe), milling (rotary cutter), drilling, boring, grinding, broaching, honing, and lapping. Modern computer-numerical-control (CNC) machining and multi-axis machining centres achieve tolerances below 5 microns. The dominant secondary-manufacturing route for metal parts in aerospace, automotive, medical, oil & gas, and precision engineering.
ASM Handbook Vol. 16 'Machining' (asm.org)
ISO 3685 'Tool life testing with single-point turning tools'
Crystalline metal-phosphate layer (zinc, iron, or manganese phosphate) chemically grown on a steel or zinc surface. Provides a paint anchor (automotive e-coat pretreatment), lubricant carrier (cold-forging, deep-drawing), or limited corrosion resistance. Zinc-phosphate coating: 1.5-5 g/m². Almost universal in automotive body-in-white pretreatment line before cathodic electrocoat (CED) paint.
ASTM D7765 'Standard Practice for Use of 3-Wt-% Sodium Chloride/3-Wt-% Hydrogen Peroxide Solution as a Substitute for Seacoast Atmospheric Testing of Metallic Coated Steel Products', astm.org
ISO 9717 'Phosphate conversion coatings'
Thin-film deposition process in vacuum in which the coating material is physically vaporised (arc, sputtering, evaporation) and condenses onto the substrate. Typical films: 1-5 microns of TiN (gold-coloured, cutting tools), CrN (wear), TiAlN (high-temperature tooling), DLC (diamond-like carbon), and decorative gold/rose-gold/black on watches and taps. Distinct from CVD in that it involves no chemical reaction on the substrate. Operating temperature 200-500°C, compatible with heat-sensitive substrates.
ASM Handbook Vol. 5 'Surface Engineering — PVD'
Chemical removal of mill scale, rust, and other surface oxides from steel or other metals by immersion in acid (HCl for carbon steel, HF/HNO3 for stainless, H2SO4 for sheet). Required between hot-rolling and cold-rolling, or before coating (galvanizing, painting, plating). Modern continuous pickle lines (CPL) achieve line speeds of 200+ m/min on hot-rolled coil. Spent acid regenerated via Ruthner roasting (HCl → Fe2O3 + HCl recovery) or sulphate crystallisation.
ASTM A380/A380M 'Standard Practice for Cleaning, Descaling, and Passivation of Stainless Steel Parts, Equipment, and Systems'
The deposition of a thin metallic layer onto a substrate to alter surface properties — corrosion resistance, wear resistance, electrical conductivity, decorative finish, or diffusion barrier. Principal methods: electroplating (electrolytic deposition using DC current), electroless plating (autocatalytic chemical reduction, no external current), hot-dip plating (immersion in molten metal, e.g., galvanising zinc onto steel), vapour deposition (PVD/CVD), and cladding. Common plated metals: gold, silver, nickel, chromium, zinc, tin, copper, rhodium. Thickness typically 0.1–50 microns.
ASTM B374 'Standard Terminology Relating to Electroplating' (
ASM Handbook Vol. 5 'Surface Engineering'
ISO 27831 'Metallic and other inorganic coatings — Cleaning and preparation of metal surfaces'
Sequential abrasive smoothing of a metal surface — polishing uses bonded abrasives on rigid wheels (40-600 grit), buffing uses loose abrasive compounds on cloth wheels. Achieves mirror finish (Ra < 0.05 μm) needed for optical, hygienic (food/pharma), or decorative parts. Electropolishing (anodic dissolution in HClO4/H3PO4 or H2SO4/H3PO4) is the chemical alternative — preferred for stainless steel medical devices, semiconductor process vessels, EUV-grade vacuum chambers.
Polishing & Buffing (Mechanical Surface Finishing)
ASM Handbook Volume 5 'Surface Engineering', ASM International
ASTM B912 'Standard Specification for Passivation of Stainless Steels Using Electropolishing'
Dry organic finishing process: charged polymer powder (epoxy, polyester, urethane, hybrid) is sprayed onto a grounded metal part, then cured in an oven (160-200°C) where it melts, flows, and cross-links into a continuous film. No solvents → near-zero VOC emissions, 95-99% material utilisation (overspray recoverable). Film thickness: 40-150 μm. Used for appliances, architectural aluminium, garden furniture, automotive wheels.
ASTM D3451 'Standard Guide for Testing Coating Powders and Powder Coatings'
Powder Coating Institute (PCI), powdercoating.org
Producing parts from metal powder (5-200 μm particle size) by pressing or moulding into the desired shape, then sintering (heating below melting point) to bond particles. Achieves complex near-net-shape geometries with minimal machining, controlled porosity (e.g., self-lubricating bearings), and uniform alloy compositions impossible to cast. Used for automotive transmission gears, oil-impregnated bushings, hard-metal cutting tools (WC-Co), magnetic components (Fe-Si, Fe-Co). Powder production: water atomisation (low-cost), gas atomisation (spherical, AM-grade), HDH (Ti), carbonyl (Fe, Ni).
Metal Powder Industries Federation (MPIF), 'MPIF Standard 35 — Materials Standards for PM Structural Parts'
Rapid cooling of austenitised steel (or solutionised aluminium/Ni alloys) from above the critical temperature to produce a hard, non-equilibrium microstructure. Steel: quenched into water, oil, polymer, salt bath, or gas — forms martensite. Quench severity quantified by H-value (Grossmann). Aluminium: solution heat treat + quench + age (T6 temper) — forms supersaturated solid solution. Critical to control distortion and quench cracking. ASTM A255 (Jominy end-quench test) quantifies hardenability — distance from quenched end at which 50% martensite forms.
ASTM A255 'Standard Test Methods for Determining Hardenability of Steel (Jominy End-Quench)'
ASM Handbook Volume 4D 'Heat Treating of Irons and Steels'
Hot-forming process in which a pre-pierced doughnut-shaped blank is rotated between a driven main roll and an idle mandrel that squeezes the wall thickness while ring diameter grows. Produces seamless rings from 100 mm to 15 m diameter — used for aero-engine casings (Rolls-Royce, GE), bearing races (SKF, Timken), wind-turbine main bearings, flanges (ASME B16.5), and pressure-vessel closures. Preferred to welding for high-integrity dynamic applications because of continuous grain flow around the circumference.
Forging Industry Association 'Ring Rolling' (forging.org)
ASM Handbook Vol. 14A ch. 'Ring Rolling'
Continuously bending a long strip of sheet (typically cold-rolled coil) into a desired cross-section by passing it through a series of paired contoured rolls. Produces purlins, gutters, garage doors, automotive bumpers, structural sections. Tolerance: ±0.4 mm. Cheaper than press-brake bending for long production runs; supports complex profiles in high-strength low-alloy (HSLA) steel.
ASTM A1011/A1011M 'Standard Specification for Steel, Sheet and Strip, Hot-Rolled'
Fabricators & Manufacturers Association (FMA), fmamfg.org
The deformation of metal between rotating rolls to reduce thickness, produce a uniform cross-section, or impart mechanical properties. Classified by temperature: hot rolling (above recrystallisation temperature — high ductility, coarse surface finish, used for slabs/blooms/billets/plate and hot-band coil) and cold rolling (below recrystallisation — work-hardening, tight tolerances, superior surface, used for automotive sheet, appliances, tinplate, electrical steel). Also includes ring rolling (seamless rings for bearings, flanges) and shape/section rolling (I-beams, rails, rebar). Dominant flat-product manufacturing route.
AIST 'The Making, Shaping and Treating of Steel — Flat Products' (aist.org)
ASTM A568/A568M 'Steel Sheet, Carbon, Structural, and HSLA'; worldsteel.org 'Rolling' technical brief
Oldest and most versatile casting process: a pattern is pressed into a mould of bonded sand (silica or chromite + bentonite clay + water for 'green-sand', or chemical binders for 'no-bake'). Molten metal is poured into the cavity. Produces 60% of all metal castings worldwide by tonnage. Used for engine blocks, pipe fittings, manhole covers, large pump housings (up to 200+ tonnes). Cheapest method per unit but lowest dimensional accuracy (±0.5-1.5 mm).
American Foundry Society (AFS), 'AFS Mold & Core Test Handbook' and 'Casting Process Selection Guide'
Cold-working surface treatment in which small spherical media (steel shot, ceramic beads, glass beads) are propelled at high velocity onto a metal surface, inducing compressive residual stresses in the near-surface layer. Improves fatigue life, delays stress-corrosion cracking, and closes surface porosity. Controlled by Almen intensity (0.008-0.024 inches A-strip arc height) and coverage (>100% multiple exposure). Mandatory on aerospace gears, springs, turbine blades, landing gear, and some medical implants.
SAE J442 'Test Strip, Holder and Gage for Shot Peening'
Heating compacted powder below the bulk melting point (typically 0.7-0.9 × T_melt) so that atomic diffusion bonds particles together. Solid-state sintering: bonding via surface diffusion only (e.g., Fe, Ni alloys at 1,100-1,250°C). Liquid-phase sintering: one constituent melts and wets the others (WC-Co at 1,400°C, where cobalt liquid binds tungsten-carbide grains). Atmosphere control critical — typically H2, N2/H2, or vacuum. Achieves 92-99% theoretical density. Cycle: 30 min to 6 h.
MPIF Standard 35 and ASTM B883 'Standard Specification for Metal Injection Molded (MIM) Materials'
Two-stage hardening sequence for age-hardenable alloys (Al 2xxx/6xxx/7xxx, Ni-superalloys, maraging steel, Cu-Be). Stage 1 — solution treat: heat above the solvus to dissolve precipitates into a single-phase solid solution (e.g., 530-540°C for AA6061), then quench. Stage 2 — age: hold at 120-200°C for hours/days to precipitate fine coherent particles that obstruct dislocations. Standard 'T' tempers per ANSI H35.1: T4 (solution + natural age), T6 (solution + artificial peak age), T7 (solution + overage for stress corrosion resistance).
Solution Heat Treatment & Ageing (Precipitation Hardening)
ANSI H35.1 'Alloy and Temper Designation Systems for Aluminum'
ASM Handbook Volume 4E 'Heat Treating of Nonferrous Alloys'
High-speed cold forming of sheet metal between matched dies in a mechanical or servo press. Operations include blanking (cutting outer shape), piercing (cutting internal holes), bending, embossing, and progressive forming. Stroke rates: 60-1,200 spm. Dominant in automotive body-in-white production (~500 stamped parts per car), appliances, electrical enclosures. Material: cold-rolled steel, advanced high-strength steel (AHSS), aluminium 5xxx/6xxx series, stainless.
Precision Metalforming Association (PMA), 'PMA Tool & Die Handbook'
Heating quenched (martensitic) steel below the lower critical temperature (Ac1, ~723°C) to reduce brittleness, dissolve retained austenite, and precipitate carbides — trading some hardness for toughness. Tempering temperatures: 150-200°C ('low temper' — knives, springs, retains most hardness); 350-500°C ('temper embrittlement zone' — usually avoided for low-alloy steels); 500-650°C ('high temper' — structural components, balance strength and toughness). Tempering parameter: Hollomon-Jaffe equation P = T(C + log t).
SAE J1397 'Application Guidelines for Heat-Treated Steel'
Joining two pieces of metal by localised melting (fusion welding) or solid-state plastic deformation (friction stir, ultrasonic, diffusion). Arc-welding family: SMAW (stick, manual, universal), GMAW/MIG (continuous wire + shielding gas, dominant in automotive and structural), GTAW/TIG (tungsten + filler, precision and clean welds in Al, Ti, stainless), SAW (submerged arc, thick plate). Resistance welding: spot/projection for automotive body assembly (3,000-5,000 welds per car). Friction stir welding (FSW): solid-state, no melt, used for Al aerospace and shipbuilding panels (invented at TWI 1991).
Welding (Arc, MIG, TIG, SMAW, Resistance, FSW)
American Welding Society (AWS) D1.1 'Structural Welding Code — Steel', D1.2 'Aluminum', D1.6 'Stainless'
ISO 4063 'Welding processes — Nomenclature and reference numbers'
Cold-working process in which metal wire is pulled through a series of tapered dies (tungsten carbide or diamond) that progressively reduce cross-section by 10-30% per pass while increasing length and tensile strength via work-hardening. Dominant production route for copper conductor wire, steel piano wire, stainless bright bar, aluminium ACSR core, and precious-metal jewellery wire. Followed by intermediate anneals to restore ductility for further drawing. Common gauges from 12 mm down to 20 microns (bond wire).
Wire Association International 'Wire Handbook' (wirenet.org)
ASM Handbook Vol. 14A 'Metalworking — Bulk Forming'
ISO 9587 'Metallic and other inorganic coatings — Pretreatments for reducing the risk of hydrogen embrittlement'
A semi-finished cast or continuously cast product with a square or circular cross-section (typically ≤155 mm²) intended for further hot rolling, extrusion, or forging into rod, bar, wire, or tube. In copper and aluminium processing, billets are extruded into profiles and tube; in steelmaking, billets are rolled into long products. Dimensional and compositional standards for steel billets are covered under EN 10060 and related ISO standards.
World Steel Association, Steel Statistical Yearbook definitions
BS EN / ISO long-product standards (e.g., EN 10060 for round steel bars)
A large square or rectangular semi-finished steel casting with cross-sectional area exceeding 230 cm², intermediate between a billet and a slab, produced by continuous casting or ingot rolling and used as feedstock for heavy section mills producing structural beams, rails, and large bar. Blooms are distinguished from billets principally by their larger cross-section and are covered under World Steel Association product classification frameworks.
Steel Bloom (Semi-Finished Long Product)
World Steel Association, product classification; industry standard steelmaking definitions
Cylindrical hardened steel bolt locked into a barrel housing, single-use. ISO 17712 classifies seals as I (Indicative), S (Security) or H (High-Security). H-class is the only seal accepted by C-TPAT, AEO and most customs administrations for high-value cargo including precious metals.
International Organization for Standardization
Agglomerated forms of fine metallic or ore particles bound with binders under pressure (briquettes) or by disc or drum balling followed by firing in a furnace (pellets). Iron ore pellets (typically 10–16 mm diameter, 60–67% Fe) are produced for direct use in blast furnaces or DRI plants as an alternative to lump ore or sinter; sampling and size analysis are governed by ISO 3082 (iron ore) and related ISO standards. Briquettes are also used for recycled metal fines (copper, zinc, aluminium).
Agglomerated Fines (Briquette and Iron Ore Pellet)
ISO 3082:2017, 'Iron ores – Sampling and sample preparation procedures'
World Steel Association, iron ore product definitions
A group of cathode sheets, ingots, or other metal products strapped or banded together to form a physically manageable delivery unit for LME warehouse storage and warrant issuance. LME-approved warehouses require bundled material to meet specifications for stacking, weight, and identification marking in accordance with LME warehousing rules; each warrant (electronic entitlement to a 25-tonne lot) covers metal stored as one or more bundles in an approved location.
LME Warehousing Regulations and Delivery Rules, lme.com
LME Aluminium and Copper Contract Specifications
Steel wire passed through one-way locking mechanism. Cuts the door bar in two — tamper attempt visible. Lower-cost ISO 17712 S-class equivalent for non-high-value bulk metals.
A refined copper product obtained by electrolytic refining or electrowinning, conforming to Grade A copper specifications (BS EN 1978:2022 Cu-CATH-1, ASTM B115-10 Grade 1, or GB/T 467-2010 Cu-CATH-1) and deliverable under LME Copper contracts in 25-tonne lots. Full cathodes are produced at standard dimensions (~1 m × 1 m); cut cathodes are trimmed from full sheets and bundled for physical delivery, with both forms acceptable provided they meet purity and brand requirements.
LME Copper Contract Specifications (Quality: BS EN 1978:2022 Cu-CATH-1
Flat-rolled products produced by hot or cold rolling slabs or ingots: coil is flat-rolled metal wound into a cylinder for shipping and processing (typically 0.5–25 mm gauge); sheet is a flat cut length from coil; plate is a thicker flat-rolled product (generally >6 mm, used in heavy structural and pressure vessel applications); strip is a narrow-width coil typically used in stamping and tubing. Dimensional and property standards are defined by World Steel Association for steel and Aluminum Association for aluminium.
World Steel Association, flat-rolled product definitions
Aluminum Association, standard wrought product definitions
Numbered seal affixed by customs officer to bonded freight or container in transit. Removal without authority is a criminal offence. Customs seals are recorded in the transit document (TIR Carnet, T1, etc.) and matched at exit point.
UNECE — United Nations Economic Commission for Europe
A semi-refined alloy bar containing gold and silver (and minor impurities) produced at mine sites or smelters as an intermediate product before final refinery purification. Doré bars do not meet LBMA Good Delivery specifications (minimum 995‰ fineness for gold; 999‰ for silver) and must be further refined before acceptance into the London Bullion Market; the LBMA Responsible Gold Guidance and associated chain-of-custody requirements apply to doré sourcing and refining.
LBMA Good Delivery Rules, Technical Specifications section
LBMA Good Delivery Rules for Gold Bars (minimum fineness 995.0 parts per thousand)
Drum / IBC / Super-sack / Pallet / Crate
Common packaging formats for metals and chemical products: drums (UN-specification steel or plastic cylinders, typically 200 L) and Intermediate Bulk Containers (IBCs, 500–3,000 L rigid or flexible tanks) are governed by the UN Recommendations on the Transport of Dangerous Goods (Model Regulations) and must carry UN marking for hazardous contents. Super-sacks (FIBCs – Flexible Intermediate Bulk Containers) hold 0.5–2 t of granular or powder materials; pallets provide unit load platforms for cartons, bags, or ingots; wooden crates are used for heavy or irregular items.
UN Recommendations on the Transport of Dangerous Goods – Model Regulations (UN Orange Book), 23rd revised edition
Woven polypropylene bag with lifting loops, capacity typically 500–2,000 kg. Used for metal granules, shot, copper cathodes broken to chops, and concentrate powders. Classified into Types A (standard), B (anti-static, no chargeable propellants), C (conductive, grounded), and D (anti-static, no grounding required). Type selection depends on flammability of contents and surrounding atmosphere.
FIBCA — Flexible Intermediate Bulk Container Association
A fine ounce is one troy ounce of pure metal content, calculated as gross troy-ounce weight multiplied by the metal's fineness (purity expressed as parts per thousand or as a decimal). For example, a 400 oz LBMA Good Delivery gold bar with gross weight 401.75 oz and fineness 995.0 contains 401.75 × 0.9950 = 399.74 fine ounces of gold. LBMA bullion settlement, exchange contracts (CME COMEX, TOCOM) and refiner invoicing all price metal on a fine-ounce basis, not gross weight. The LBMA Good Delivery Rules define gold bar weight tolerance as 350-430 fine troy ounces with minimum fineness 995.0, and silver bars as 750-1100 oz with minimum fineness 999.0.
Based on: LBMA — The Good Delivery Rules for Gold and Silver Bars (
CME Group — COMEX Gold Futures Contract Specs, deliverable as fine ounces.
Sub-forms of refined metals produced by rapid solidification of molten metal streams: granules and shot are rounded particles (2–20 mm) made by pouring molten metal into water or by centrifugal atomisation; powder is finer particulate material (<1 mm) used in metallurgy, electronics, and additive manufacturing. These forms do not qualify as LBMA Good Delivery; they are traded on a per-kg basis and must meet assay and provenance requirements of the relevant refinery or exchange.
LBMA Good Delivery Rules (non-Good Delivery forms); general refinery production standards
Unique batch identifier stamped on steel and aluminium products linking each piece to a specific melt at the producer. Allows traceability to the mill test certificate (MTC, EN 10204 type 3.1 or 3.2). Mandatory for LME-approved aluminium brands and for steel products under EN 10025 / ASTM A6.
CEN — European Committee for Standardization
A block of primary metal cast in a mould for subsequent remelting, rolling, or forging; the term covers a wide range of sizes and alloys. For LME aluminium, deliverable shapes include ingots, T-bars, and sows conforming to minimum 99.70% Al purity (P1020A designation under the International Designations standard or GB/T 1196-2017) in 25-tonne lots; LME copper is delivered as cathode rather than ingot form.
LME Aluminium Contract Specifications (Shape: ingots, t-bars, sows
Gold purity expressed in 24ths: 24K = 100% gold, 18K = 75% (0.750 fineness), 14K = 58.3% (0.583). Standardised in ISO 9202 and BIS-Indian standards.
International Organization for Standardization — Jewellery — Fineness of precious metal alloys
Permanent identification stamped or stencilled on each LME-listed metal unit (cathode bundle, sow, T-bar, ingot). Carries brand owner, weight, batch / heat number, country of origin. Required for warrant issuance — un-stencilled metal cannot be put on LME warrant.
SI-derived unit of mass = 1,000 kilograms = 1 megagram. Standard unit for base metals trading. Defined by the International Bureau of Weights and Measures (BIPM).
Bureau International des Poids et Mesures — official SI definitions
1 MTU = 10 kg of contained metal (1% of 1 metric tonne). Standard pricing unit for ferro-alloys (Mn, Cr, Mo, W, V) and tungsten ores. Example: USD/MTU WO₃.
Industry standard; primary references: Fastmarkets and S&P Global Platts ferro-alloy methodologies
Eight-sided corrugated fiberboard container on pallet base. Used to ship dense metal granules, shot, powders and small parts. Internal liner protects against moisture and abrasion. Footprint matches euro-pallet (1200×800 mm) or industrial pallet (1200×1000 mm).
Polyethylene-terephthalate band with break strength up to 7 kN/cm² and 5–10% elastic recovery — recovers tension lost when bundles compress during transit. Replacing steel strapping for non-magnetic metals and where reduced load-shift is required.
A small, standardised cast ingot typically weighing 3–10 kg, formed by pouring molten metal into sand or iron mould rows (resembling a sow with piglets). Pig iron is the direct product of a blast furnace (~92–94% Fe, ~4.5% C) and serves as the primary feedstock for steelmaking; pig lead, tin pig, and copper pig follow the same physical format. The World Steel Association classifies pig iron as a basic intermediate steel input.
World Steel Association, definitions and statistics on pig iron; industry standard cast-iron mould nomenclature
Rod is a continuously cast or hot-rolled long product of circular cross-section used as feedstock for drawing into wire (copper rod ~8 mm for electrical wire applications); bar encompasses a range of solid long profiles (round, square, hexagonal) used in engineering; wire is rod or bar reduced by cold-drawing through dies to smaller diameters. LBMA Good Delivery Rules historically referenced wire bar as a 99.0%+ copper form; ISO standards govern dimensional tolerances for drawn wire.
LBMA OTC Guide, London Good Delivery – Gold and Silver
World Steel Association, Aluminum Association product definitions
Polyolefin or polyethylene film that shrinks 30–60% under heat (130–200 °C), forming a tight seal around contents. Used for weather protection of steel coils stored outdoors, for tamper-evident bundles, and for unitising irregular shapes.
A large, flat semi-finished cast or rolled product with width substantially greater than thickness, used as feedstock for hot strip mills producing sheet, coil, and plate. Steel slabs (typically 150–350 mm thick, 600–2,500 mm wide) are the principal intermediate product of basic oxygen furnace and electric arc furnace steelmaking before hot rolling. Aluminium slabs (rolling ingots) serve the same function in aluminium flat-rolled products manufacturing.
World Steel Association, Steelmaking process and product definitions, worldsteel.org
A large-format primary aluminium ingot, typically weighing approximately 750 kg, cast in a floor mould and intended for remelting in secondary smelters and foundries. Under LME Aluminium contract specifications, sows are one of the three approved delivery shapes (alongside ingots and T-bars) and must conform to P1020A or equivalent purity standards; the 25-tonne lot consists of multiple sows, T-bars, or ingots.
LME Aluminium Contract Specifications (Shape: ingots, t-bars, sows)
High-tensile cold-rolled steel band, typically 12.7–32 mm wide, used to consolidate steel coils, billets, bundles and slabs. Specified per ASTM D3953 — break strength 4 to 14 kN/cm². Steel strapping has higher tensile strength than polyester (PET) but no elastic recovery, so it must be re-tensioned after sea voyage settlement.
Linear low-density polyethylene (LLDPE) film, 20–30 µm thick, applied to palletised loads with stretch ratio 150–250%. Holds packing-list documents, secures small cartons, blocks dust ingress. Not load-bearing — must be combined with strapping for heavy loads.
Large-format primary aluminium cast forms approved for LME delivery alongside sows and standard ingots. A T-bar is a T-shaped aluminium ingot (~750 kg) designed for ease of handling and stacking; a jumbo ingot (also termed large ingot) refers generically to high-mass aluminium ingots above standard notch-bar size. All must meet LME aluminium quality specifications (P1020A designation, minimum 99.70% Al) and be of an LME-approved brand.
Unit of mass for precious metals. 1 troy ounce = 31.1034768 grams (exact). Defined and used in the LBMA Good Delivery specifications for gold, silver, platinum, palladium.
London Bullion Market Association — Good Delivery Rules
Kraft paper impregnated with volatile organic compounds that vaporise inside packaging and form a protective monolayer on metal surfaces. Standard for export shipments of steel coils, copper bus-bars, aluminium sheets, and bright bars. Effective for 12–24 months when packaging is sealed.
International standards development organisation (formerly American Society for Testing and Materials, founded 1898). Publishes over 12,000 voluntary consensus technical standards for materials, products, systems, and services. In metals context: ASTM standards define alloy compositions (e.g., ASTM B152 copper sheet, ASTM B265 titanium plate), test methods (mechanical, chemical, non-destructive), and specifications used in commercial metals contracts worldwide. Frequently referenced in LBMA, LPPM, and ISRI trade specifications.
Source: ASTM International standards catalogue (
A statistical procedure used to detect systematic error (bias) in a sampling or assaying process by comparing results from a reference method against a test method using paired samples, as defined in ISO 11648. A statistically significant difference between the mean of the reference and test populations indicates the presence of bias that must be corrected. ISO 11648 is available at iso.org/standard/53999.html.
ISO 11648 — Statistical aspects of sampling from bulk materials, iso.org
A laboratory document certifying the chemical composition and fineness of a metal consignment. For LBMA Good Delivery bars, assay values must be reported to four significant figures of fineness using corrected fire assay or spectrographic analysis; gold bars must meet minimum fineness of 995.0 parts per thousand, silver 999.0. The refiner stamps fineness and serial number on each bar.
Certificate of Analysis (CoA) / Assay Certificate
LBMA Good Delivery Rules (2025 edition), Section 2.1.7 Specifications and Section 4.1 Testing the Applicant's Assaying Capability
Reference material whose composition is certified by a metrologically valid procedure and issued with a certificate of analysis. Used to validate assay methods and calibrate instruments. Major mining CRM suppliers: OREAS, Rocklabs, CANMET, SARM.
ISO Guide 35 Reference Materials — General and Statistical Principles
ISO Guide 30 Reference Materials — Selected Terms
JCGM 200 International Vocabulary of Metrology.
A documented, unbroken record of the handling, transfer, and storage of a sample or material from point of origin through to final disposition, ensuring that the identity and integrity of the material can be verified at each stage. For gold and precious metals, the LBMA Responsible Gold Guidance requires chain-of-custody documentation from mine to refinery. LBMA guidance is available at lbma.org.uk.
LBMA Responsible Gold Guidance, lbma.org.uk
Mass fraction of secondary payable metals in concentrate (e.g., gold, silver in copper concentrate). Typically paid at a lower payable percent than the main metal.
Industry term; references: ISO 12743 and standard smelter contracts
Country where the metal is imported and consumed/processed — determines applicable import duties, VAT, customs procedures, and CBAM declarations.
World Customs Organization — destination jurisdiction
An independent inspection conducted at the discharge port to determine the quantity and condition of a bulk cargo as discharged from the vessel, reconciling outturn weight with bill-of-lading weight. Outturn surveys are referenced in FOSFA and GAFTA standard contract terms as the basis for settling weight discrepancies. Procedures are governed by TIC Council (formerly IFIA) standards at tic-council.org.
A method of determining bulk cargo weight by measuring a vessel's displacement before and after loading or discharge via its waterline draught marks. The difference in net displacement equals the cargo quantity. Formal documentation standards are referenced by IMO and UN ECE; accuracy under good conditions is approximately ±0.5%.
IMO IMSBC Code 2022 (references draft survey in cargo quantity determination context)
UN ECE guidelines on draught survey documentation (referenced in IMO MSC circular practices)
A second sub-sample taken from the same sampling unit under identical conditions as the primary sample, used as a quality-control check to measure the within-sampling-unit variability and repeatability of the sampling process. ISO 12743 specifies protocols for collecting and using duplicate samples in the sampling of copper, lead, zinc, and nickel concentrates. ISO 12743 is available at iso.org/standard/53998.html.
ISO 12743 — Sampling of copper, lead, zinc and nickel concentrates, iso.org
The definitive chemical analysis result used to determine the payable metal content of a parcel of material for the purposes of commercial settlement, distinguished from preliminary or provisional assays. LME warehouse rules specify that final assay certificates from accredited laboratories are required for settlement of metal delivered against LME contracts. LME rules are available at lme.com.
LME — London Metal Exchange warehouse rules, lme.com
Fineness is the proportion of pure precious metal in an alloy, expressed in parts per thousand. Gold of 999.9 fineness contains 999.9 parts gold per 1,000 by mass. LBMA Good Delivery gold bars require a minimum fineness of 995.0; silver bars 999.0. Hallmarking standards expressed in karats convert to fineness as follows: 24K = 999, 22K = 916, 18K = 750, 14K = 585, 9K = 375. Fineness is determined by fire assay (gravimetric) or ICP/spectrographic analysis and stamped on each bar alongside the refiner mark and serial number.
LBMA Good Delivery Rules (2025 edition), Section 2.1.7 Specifications
ISO 9202:2019 Jewellery — Fineness of precious metal alloys
A classical pyrometallurgical technique for the accurate determination of gold and silver content in ores, concentrates, and doré, involving fusion with a lead or nickel sulfide collector, cupellation to separate noble metals, and gravimetric or ICP finish. The LBMA Assayer accreditation programme specifies fire assay as the reference method for gold purity determination. LBMA assayer requirements are at lbma.org.uk.
The total weight of a consignment including the weight of goods, packaging, pallet, and container or vehicle (where applicable); defined by FIATA (International Federation of Freight Forwarders Associations) and the World Customs Organization as the weight declared on transport documents. Gross weight = net weight + tare weight. FIATA documentary standards are at fiata.org; WCO glossary at wcoomd.org.
FIATA — International Federation of Freight Forwarders Associations, fiata.org
Analytical techniques using inductively coupled argon plasma to atomize and excite (ICP-OES) or ionize (ICP-MS) sample elements, enabling simultaneous multi-element quantification in ores, concentrates, and process solutions at trace to major concentrations. ASTM E1097 (ICP-OES) and ASTM E2823 (ICP-MS) provide standard test methods for analysis of metals. Standards are available at astm.org.
Inductively Coupled Plasma — Optical Emission Spectrometry / Mass Spectrometry (ICP-OES / ICP-MS)
A neutral expert engaged by one or both parties to inspect, weigh, sample, or certify cargo at loadport or discharge. Independence requires no commercial interest in the outcome. The LBMA Good Delivery Rules provide for independent inspectors to examine bars and express opinions on whether they meet Good Delivery standards; IMSBC Code section 4 similarly references competent-authority-recognised entities for cargo certification.
LBMA Good Delivery Rules (2025 edition), Section 2.4 Independent Inspection
IMO IMSBC Code 2022, Section 4.2 (cargo information obligations)
Independent surveyors who perform draft survey, sampling, moisture determination, and certified assay on bulk metal shipments. Their certificate of analysis is the contractual reference for settlement.
SGS / Alex Stewart International / AHK — global metals inspection houses
A responsibility-assignment matrix that defines which party is Responsible, Accountable, Consulted, and Informed for each step of a commodity inspection and sampling programme, including preparation, supervision, splitting, sealing, dispatch, and reporting. The TIC Council publishes standard RACI guidance for pre-shipment and outturn inspections at tic-council.org.
Coordinated testing of the same sample by multiple laboratories to evaluate performance and comparability. ISO 17043 governs proficiency testing schemes. Miners use quarterly round-robin exercises across their primary and umpire laboratories.
ISO/IEC 17043 Conformity Assessment — Proficiency Testing
ISO 13528 Statistical Methods for Proficiency Testing
IUPAC Harmonised Protocol for Proficiency Testing.
An ISO standard that provides the statistical framework for designing, implementing, and evaluating sampling schemes for bulk materials, covering sampling variance, sample size determination, bias testing, and measurement uncertainty. ISO 11648 Part 1 covers general principles and Part 2 covers sampling from continuous streams. Available at iso.org/standard/53999.html.
ISO 11648 — Statistical Aspects of Sampling from Bulk Materials
An ISO standard specifying procedures for the manual and mechanical sampling of copper, lead, zinc, and nickel concentrates to determine moisture, chemical composition, and screen size, including sample mass, increment collection, splitting, and preparation. The standard provides the reference framework for commercial sampling disputes and independent sampling arbitration. Available at iso.org/standard/53998.html.
ISO 12743 — Sampling Procedures for Copper, Lead, Zinc and Nickel Concentrates
International standard for the competence of testing and calibration laboratories. Accreditation via national bodies (UKAS, ANAB, DAkkS, NATA, JAB) recognised globally through ILAC MRA. Required for commercial assay laboratories serving mining and metals trading.
Testing and Calibration Laboratory Standard
ILAC Mutual Recognition Arrangement (MRA)
ISO/IEC 17025 — Laboratory Accreditation
The international standard specifying the competence, impartiality, and operational requirements for laboratories performing testing and calibration, forming the basis for accreditation by national accreditation bodies (e.g., UKAS, ILAC members). Accreditation to ISO/IEC 17025 is required for laboratories issuing assay certificates used in commercial metal settlements. Available at iso.org/standard/39883.html.
ISO/IEC 17025 — General Requirements for the Competence of Testing and Calibration Laboratories
Forensic analytical technique that measures the natural-abundance ratios of stable isotopes (e.g., ²⁰⁶Pb/²⁰⁷Pb for lead, ¹⁸⁷Os/¹⁸⁸Os for osmium, δ³⁴S for sulfur, δ¹⁸O for oxygen) in a metal or mineral sample. Because isotope ratios vary systematically between geological provinces, the measured ratios can be matched against a reference database to attribute the sample to a candidate deposit or ore body. Used by customs laboratories, refineries and litigation consultants for gold, copper, lead and conflict-minerals verification under OECD Due Diligence Guidance and EU Regulation 2017/821.
Mineral resource geochemistry literature
LBMA Good Delivery is the global benchmark standard for large gold and silver bars used in wholesale bullion markets. The LBMA Good Delivery Rules specify bar weight tolerances (gold: 350-430 fine troy ounces; silver: 750-1100 troy ounces), minimum fineness (gold 995.0; silver 999.0), surface finish, mark requirements and storage conditions. Only refiners on the LBMA Good Delivery List (currently around 70 active gold refiners worldwide) may produce bars that trade at par in the London bullion market without being re-assayed. Maintenance of the List requires ongoing proactive monitoring including the Responsible Sourcing programme. Good Delivery status is distinct from Responsible Gold Guidance, which is a separate due-diligence requirement for refiners.
Based on: LBMA — The Good Delivery Rules for Gold and Silver Bars and LBMA Good Delivery List (
An instrumental combustion technique for the quantitative determination of carbon, sulphur, nitrogen, oxygen, and hydrogen in ores, concentrates, metals, and steels by high-temperature combustion and infrared/thermal conductivity detection. ASTM E1019 provides the standard method for determination of carbon and sulphur in ferrous materials by combustion analysis. Available at astm.org.
LECO Analysis (Combustion Analysis for C/S/N/O)
Lowest analyte concentration that can be reliably distinguished from a blank at a specified confidence level (typically 3σ above blank noise). Critical for trace-element assay (Au, PGMs, Re, In, Ga). ISO 11843 series defines statistical methodology.
Lowest Reliably Detectable Concentration
ISO 11843 series Capability of Detection
EURACHEM/CITAC Guide Quantifying Uncertainty in Analytical Measurement.
Lowest analyte concentration that can be quantified with acceptable precision and accuracy (typically 10σ above blank noise, or 3× LOD). Differs from LOD which only detects presence. Reported alongside LOD on all certified assay reports.
Lowest Reliably Quantifiable Concentration
IUPAC Analytical Chemistry Recommendations
EURACHEM Guide to Analytical Method Validation
Independent third-party oversight of the loading of a bulk commodity cargo onto a vessel or conveyance, encompassing draft survey, weight determination, sampling, sealing of samples and hatches, and documentation. Loading supervision services are provided by TIC Council-accredited inspection companies acting on behalf of buyer, seller, or financier. TIC Council standards at tic-council.org.
Procedures ensuring that a specific lot of metal or concentrate maintains a traceable and unbroken physical and documentary identity from production through storage, shipment, and delivery, preventing commingling with other material. The LBMA chain-of-custody requirements for Good Delivery bars mandate lot identity preservation from refinery onwards. LBMA guidance at lbma.org.uk.
Identifier (internal or contractual) for a specific shipment or parcel of metal, linking the physical lot to assay certificates, B/L, warehouse receipts, and accounting entries.
Industry practice; references: ISO 12743 sampling standards for unique lot identification
Mass fraction of the payable metal in concentrate or ore (e.g., 28% Cu in copper concentrate, 6% Li₂O in spodumene). Determined by certified assay.
Industry term; references: ISO 12743 (copper, lead, zinc concentrates) and JORC/CIM reporting standards
Mass of the shipment. Gross mass = total weight including packaging; net mass = material only; dry mass = net mass minus moisture. Sale typically settles on dry net mass.
International Organization for Standardization — Copper, lead, zinc and nickel concentrates — Sampling procedures for determination of metal and moisture content
Interference by non-analyte sample components on the analytical signal — e.g., high-iron matrix suppressing gold fire assay recovery, salt matrix affecting ICP-MS ionisation. Corrected by matrix-matched calibration, internal standards, or matrix modifiers.
Sample-Composition Interference on Analytical Method
EURACHEM/CITAC Guide Quantifying Uncertainty
ISO Guide 33 Uses of Certified Reference Materials.
Free water content in concentrate or ore, deducted from gross weight to obtain dry weight. Excess moisture also limits IMSBC Code transportable moisture limit (TML).
International Maritime Organization — solid bulk cargoes
The weight of the actual goods excluding all packaging, pallets, and the tare weight of the container or conveyance; declared on the packing list and commercial invoice for customs and freight purposes. FIATA and the World Customs Organization (WCO) define net weight in the context of transport and customs documentation. FIATA at fiata.org; WCO at wcoomd.org.
Country where the metal was mined, smelted, or refined — determines preferential tariff eligibility under FTAs and applicability of sanctions, anti-dumping, and CBAM.
World Customs Organization — Rules of Origin framework
The weight of a bulk cargo as determined at the discharge port following completion of unloading, forming the basis for final settlement when agreed as the settlement weight in the contract; also called 'out-turn weight'. Outturn weight is linked to 'Settlement weight' and may differ from bill-of-lading weight due to moisture loss, spillage, or measurement differences.
An independent inspection carried out before a consignment is loaded or dispatched to verify that the goods conform to contractual specifications in terms of quantity, quality, condition, and packaging. PSI services are governed by TIC Council standards and may also be mandated by the importing country's authorities under WTO-compatible conformity assessment procedures. See tic-council.org.
Pre-Shipment Survey / Pre-Shipment Inspection (PSI)
A finely ground sub-sample of mineral material, typically reduced to 75–150 µm (–200 mesh), prepared from a split of the original sample for submission to the laboratory for chemical analysis. CIM (Canadian Institute of Mining, Metallurgy and Petroleum) Best Practice Guidelines for Mineral Processing specify pulp preparation procedures. CIM guidelines at mrmr.cim.org.
CIM Best Practice Guidelines, mrmr.cim.org
Purity is the mass fraction of the principal metal element in a product, expressed as a percentage, parts per thousand (fineness), or '9s' notation (e.g. 4N = 99.99%, 5N = 99.999%). For base metals (Cu, Al, Ni, Pb, Zn, Sn) LME-grade purity ranges from 99.85% (Pb) to 99.99% (Sn 'high grade'). For precious metals, see 'Fineness'. For minor and refractory metals (Mo, W, In, Ga, Ge) purity is typically specified in 9s notation in the supply contract. Purity is verified by assay (see 'Certificate of Analysis'). In the TSM Purity calculator, purity drives the conversion from contained-metal price to gross-product price.
LME Special Contract Rules for base metals (current edition)
ASTM B252 (refined lead); industry practice for 9s notation
Standard sample-insertion protocol: for every 20 field samples, insert 1 blank (contamination check), 1 duplicate (precision check) and 1 CRM (accuracy check). Best practice per CIM/SME Sampling Standards. Non-conforming batches trigger re-assay.
ISO 3084 Iron Ores — Experimental Methods for Evaluation of Quality Variation.
A commodity financing fraud discovered at Qingdao and Penglai ports in China in 2014 in which warehouse receipts for the same copper and aluminium stocks were used multiple times as collateral for different bank loans, exposing systemic weaknesses in warehouse receipt and collateral management. The fraud led directly to LME reforms including the mandatory tag-and-seal protocol for warranted metals in LME-approved warehouses. Background in Reuters reporting and LME Notice 14/149.
Qingdao Port Metal Financing Fraud (2014)
Standard deviation divided by the mean, expressed as a percentage — dimensionless precision indicator. Typical assay RSD targets: <2% for major elements, <5% for trace, <10% at LOQ. Fundamental output of any method-validation exercise.
ISO 5725-2 Accuracy of Measurement Methods.
A single portion of material collected in one operation of a sampling device from the lot, which together with other increments forms a gross sample; the 'primary increment' is the first-level increment extracted directly from the material stream or static pile. ISO 12743 defines increment mass, cutter design, and increment spacing requirements for copper, lead, zinc, and nickel concentrates. ISO 12743 at iso.org/standard/53998.html.
A procedure by which a cargo lot is divided into two or more separately assayed and weighted sub-lots when there is a discrepancy in assay results between buyer and seller that exceeds the agreed umpire tolerance, or when contractual terms allow partial rejection. The Refined Sugar Association provides analogous guidance; for metals concentrates the split-lot procedure is typically defined in the individual sale contract and ISO 12743.
Refined Sugar Association, refinedsugar.org
The process of reducing the mass of a gross or sub-sample by dividing it into representative halves using a riffle splitter (a device with alternating chutes of equal width) until the required laboratory sample mass is achieved. ISO 12743 Part 2 specifies riffle splitter design, operational procedures, and mass reduction ratios for concentrates sampling. ISO 12743 at iso.org/standard/53998.html.
An LME-mandated warehousing control procedure under which metal stored in an LME-approved warehouse on LME warrant must carry a unique physical tag and tamper-evident seal linking the metal to a single warehouse receipt, preventing the same physical metal from being represented by multiple warrants. Introduced following the 2014 Qingdao port financing fraud, the procedure is set out in LME warehousing rules. See lme.com.
Tag-and-Seal Procedure (Post-Qingdao LME Reform)
The weight of the empty container, packaging, pallet, or conveyance without the goods, subtracted from gross weight to derive net weight. FIATA and the WCO define tare weight in the context of transport and customs documentation. FIATA at fiata.org; WCO at wcoomd.org.
The global trade association representing testing, inspection, and certification (TIC) companies, formerly known as IFIA; it sets professional standards, codes of conduct, and training requirements for independent inspection and certification bodies operating in international trade. TIC Council membership and standards are available at tic-council.org.
TIC Council (formerly IFIA — International Federation of Inspection Agencies)
The maximum moisture content of a Group A bulk cargo (one that may liquefy) that is considered safe for carriage by sea in ships not specially constructed for the purpose. Per IMO IMSBC Code Section 7.3.1, a cargo shall only be accepted for loading when its actual moisture content is less than the TML. The TML is derived from the Flow Moisture Point (generally TML = 90% of FMP) and must be certified not more than six months before loading.
IMO IMSBC Code 2022, Sections 1 (definitions) and 7 (cargoes that may liquefy)
IMO Resolution MSC.500(105) (adopted 28 April 2022) amending TML definition
Aggregate financial deduction from concentrate value for penalty elements (As, Sb, Hg, Bi, F, etc.) above smelter acceptance thresholds. Expressed as $/dry MT or % of value.
Industry standard; references: standard smelter contracts (e.g., Aurubis, Glencore)
Analytical technique that quantifies sub-percent and trace concentrations of dozens of elements (typically by ICP-MS or LA-ICP-MS) in a metal or mineral sample to create a multivariate "chemical signature". Combined with statistical pattern-matching against a reference library, fingerprints can be attributed to specific mines or processing routes. Used in parallel with isotope-ratio fingerprinting for gold doré, tin and tantalum conflict-minerals verification, and in customs-fraud investigations on refined metal.
GeoNeurale; peer-reviewed geochemistry literature
An independent third-party analytical determination conducted when a buyer's and seller's assays of a metal consignment disagree beyond the agreed tolerance. The LBMA Good Delivery Rules provide for LBMA-appointed referees who independently examine bars using corrected fire assay or spectrographic analysis; assays of 999.5 and above must agree within ±0.05 parts per thousand, and below 999.5 within ±0.15.
LBMA Good Delivery Rules (2025 edition), Section 4.1 Testing the Applicant's Assaying Capability
A static platform scale used to weigh road vehicles or railcars for cargo quantity determination. International metrological requirements for accuracy classes are specified in OIML Recommendation R 76, which defines maximum permissible errors and calibration requirements for non-automatic weighing instruments including platform scales used in trade.
Non-Automatic Weighing Instrument (Static Weighbridge)
OIML International Recommendation R 76-1 (2006): Non-automatic weighing instruments — Part 1: Metrological and technical requirements
A contractual allowance for the difference in measured weight between the load-port and discharge-port surveys, expressed as a percentage of the bill-of-lading weight. Differences within the franchise are absorbed without price adjustment; differences exceeding it trigger a settlement. For LBMA Good Delivery silver bars, the specified weight tolerance is ±10% of 1,000 troy ounces gross weight.
LBMA Good Delivery Rules (2025 edition), Section 2.1.7 Silver Bars weight specification (1000 troy ounces ±10% tolerance); physical commodity contract market practice
XRF: fast, non-destructive, portable — 0.001-100% range, best for major elements and screening. ICP-MS: destructive, ppb sensitivity, best for trace elements and isotopes. Fire assay: reference for Au and PGMs, ppb detection with >100g sample. Combined use is standard in mining laboratories.
ASTM E1621 Standard Guide for Elemental Analysis by X-Ray Emission Spectrometry
An elemental analysis technique in which primary X-rays excite secondary (fluorescent) X-rays from a sample's elements; wavelength-dispersive (WD-XRF) and energy-dispersive (ED-XRF) variants are used for major- and minor-element determination in ores, concentrates, and metal alloys. ASTM E322 provides a standard test method for XRF analysis of tungsten alloys and is representative of XRF applications in metals analysis. Standards at astm.org.
External provider of outsourced logistics services — warehousing, transport management, customs clearance, distribution. Distinct from a freight forwarder (4PL provides higher-level supply-chain orchestration and IT). Major metals-sector 3PLs: C. Steinweg, IDS Logistik, Henry Bath, P. Henry & Sons, ED&F Man.
CSCMP — Council of Supply Chain Management Professionals
Lead logistics provider acting as integrator over multiple 3PLs and asset-based carriers. Provides supply-chain IT, control-tower visibility, demand planning. Distinguished by no asset ownership and contractual responsibility for end-to-end performance.
Electronic document sent by supplier to buyer before goods depart, detailing carton/pallet contents, ship-to address, PO reference, shipping unit IDs (SSCC/EAN-128), lot numbers, and ETA. Enables receiving-team preparation, dock scheduling, and automated match-to-PO on inbound. Standard EDI transaction sets: ANSI X12 856 (North America) and UN/EDIFACT DESADV (Europe/Asia). Mandatory in modern retail (Walmart, Target), automotive (VDA 4913), and increasingly enforced by metals warehouses for pre-notice of arriving warrants.
GS1 Global Data Model 'Logistics Interoperability' (gs1.org)
Sub-basement gold storage under Threadneedle Street, London, established 1697. Holds ~400,000+ Good Delivery bars (~5,300 t as of 2024), including UK official reserves (small, ~310 t) + foreign central bank reserves (majority) + LBMA member metal. Not open to public. Governance by Bank of England Custody Agreement. Occasionally cited in reserve controversies (Venezuela BOE gold dispute 2019-2024, resolved UK Supreme Court in favor of BoE not releasing to Maduro government).
UK Supreme Court judgment "Guaidó Board" v "Maduro Board" [2021] UKSC 57
A bill of lading is a transport document issued by or on behalf of a carrier evidencing receipt of goods for carriage by sea, which also functions as a document of title and constitutes the contract of carriage. Under Incoterms 2020, the bill of lading is the standard transport document for FOB, CFR, and CIF transactions; the ICC Incoterms 2020 publication (FCA rule) specifically addresses the 'on-board bill of lading' requirement, noting a carrier may issue a bill of lading with an on-board notation once goods are loaded on the vessel. The negotiable bill of lading allows transfer of title by endorsement, making it critical to documentary credit transactions.
Based on: ICC Incoterms® 2020 official publication (iccwbo.org, FCA and FOB rules)
Direct floor-to-floor stacking of homogeneous palletised loads. Lower cost, higher density than racking, but FIFO is not enforceable. Standard for high-volume single-SKU metals — copper cathode bundles, aluminium ingots, lead pigs at LME warehouses.
A customs-controlled storage facility where imported goods may be held without payment of import duties, taxes, or VAT until the goods are either released into free circulation, re-exported, or assigned another approved customs procedure. Duties are deferred, not forgiven, and become payable upon release. Bonded warehouses enable traders to hold inventory in-country while deferring duty obligations, providing cash-flow advantages for commodity traders. The ICC Incoterms 2020 framework recognises bonded storage as relevant to delivery terms involving duty-unpaid goods.
Based on: ICC Incoterms 2020 official publication (iccwbo.org)
EU Customs Warehouse regime (Council Regulation (EU) No 952/2013, Union Customs Code)
Commercial secure logistics and vault operator, LBMA + COMEX + LME-approved. HQ Richmond, Virginia. Global vault network: London (LBMA), New York (COMEX), Zurich, Singapore, Hong Kong, Dubai (DMCC). Handles physical bullion movement, mine dore transport, refinery-to-vault, ETF creations/redemptions. Publicly listed NYSE:BCO. Historical rivals: Loomis, Malca-Amit, G4S (now Allied Universal), Prosegur.
Brink's Company 10-K SEC filings, sec.gov
Brink's Global Services website brinksglobal.com
Under Incoterms 2020 CIF, the seller delivers the goods on board the vessel, contracts and pays for freight to the named destination port, and procures minimum cargo insurance. Risk transfers to the buyer when goods are placed on board the vessel at the port of shipment — not at destination. Per the ICC Incoterms 2020 official publication, the CIF rule 'is reserved for use in maritime trade and often used in commodity trading'; the default insurance level is Institute Cargo Clauses (C), with parties free to agree higher cover. CIF is the standard pricing basis for bulk commodity shipments, including copper cathodes to Asian buyers.
CIF — Cost, Insurance and Freight (named port of destination)
Based on: ICC Incoterms® 2020 official publication and explanatory notes (iccwbo.org)
Trade Risk Guaranty Incoterms Desk Reference (ICC official definition quoted)
Seven CME Group-approved vaults for physical settlement of COMEX gold and silver futures contracts, all in New York/New Jersey/Delaware corridor: (1) Brink's Inc, (2) HSBC Bank USA, (3) JPMorgan Chase Bank, (4) CNT Depository (largest silver), (5) Manfra, Tordella & Brookes (MTB), (6) International Depository Services of Delaware (IDS Delaware), (7) Loomis International. Combined COMEX gold ~600 t + silver ~9,500 t typical. Daily inventory published in CME Group Metals Depositories Report.
COMEX Approved Depositories (Gold/Silver Vaults)
Inventory physically located at the customer's site but legally owned by the supplier until consumed — title transfers only when the buyer withdraws material for use. Reduces customer working capital and stock-out risk; supplier maintains visibility and refills against agreed min/max levels. Common for critical spares (bearings, seals, refractories at smelters), high-value consumables (grinding media, drilling steel), and precious-metal working stock at manufacturers. Legally structured as VMI, bailment, or consignment agreement.
Consignment Stock (Vendor-Managed Inventory)
ICC 'Model Consignment Contract' (iccwbo.org)
Logistics process where incoming goods are transferred directly from inbound to outbound transport with no or minimal storage. Used for high-velocity SKUs (LME warrant transfer between approved warehouses, just-in-time alloying ingredients to mills).
Continuous inventory-verification programme in which subsets of SKUs are counted on a rolling schedule (daily/weekly) rather than a single annual wall-to-wall count. Typically ABC-classified (A-items counted monthly, B quarterly, C annually) or exception-driven (after each replenishment/pick, on zero-quantity events, following variance). Provides earlier detection of discrepancies, higher inventory accuracy (>99.5% typical target), and lower disruption to operations vs full physical counts. Standard best practice under WMS/APICS.
Warehousing Education and Research Council (WERC) benchmarking
ISO 9001:2015 §8.5.4 'Preservation of outputs'
Under Incoterms 2020 DAP, the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport, ready for unloading at the named place of destination. The seller bears all risks and costs of bringing the goods to the destination, including freight, but does not unload the goods — unloading is the buyer's responsibility and expense. Per the ICC Incoterms 2020 official publication, 'under DAP the seller does not unload the goods,' distinguishing it from DPU where the seller must also unload.
DAP — Delivered At Place (named place of destination)
Demurrage is a charge levied on a cargo owner or charterer for detaining a vessel, container, or transport unit beyond the agreed free time stipulated in the charter party or contract of carriage. In maritime commodity trade, demurrage accrues when a bulk vessel is not loaded or discharged within the agreed laytime; the daily rate is set in the charter party. In containerised trade, demurrage is charged per container per day when boxes are held at a terminal beyond the carrier's free-use period. Prompt payment or avoidance of demurrage is a critical operational concern in physical commodity contracts.
Based on: ICC Incoterms® 2020 context (charter party references in FOB/CFR/CIF rules)
Clarksons Glossary — Demurrage definition (clarksons.com)
Digital-appointment layer that assigns time-slotted arrivals for inbound and outbound trucks to specific dock doors, balancing labour, forklift capacity, and yard congestion. Reduces driver wait time (and therefore detention/demurrage charges), smooths receiving-team workload, and enables carrier scorecards. Best-in-class systems (Descartes, FourKites, Manhattan, C3 Solutions) provide carrier self-booking portals, real-time GPS-ETA-driven reslotting, and dwell-time analytics. Standard integration point between YMS, TMS, and WMS.
Dock Scheduling (Dock Appointment System)
CSCMP 'Supply Chain Management Terms and Glossary'
Gartner 'Real-Time Transportation Visibility Platforms'
Materials used to brace and protect cargo inside a container, hold, or trailer — typically softwood blocking, plywood, airbags, or sand bags. Required to prevent shift, abrasion and moisture damage. Wooden dunnage must comply with ISPM 15 phytosanitary marking for international shipments.
IPPC — International Plant Protection Convention (FAO)
Under Incoterms 2020 EXW, the seller fulfils its obligation by making the goods available at its own premises (factory, warehouse, or other named place) ready for collection by the buyer; the seller is not required to load the goods. Risk and all costs — including loading, export clearance, freight, and import duties — transfer to the buyer from the moment the goods are made available. Per ICC Incoterms 2020, EXW 'represents minimal obligations for the seller and maximum responsibilities for the buyer' and is most suitable for domestic trade or situations where the buyer can manage all export formalities.
EXW — Ex Works (named place of delivery)
Based on: ICC Incoterms® 2020 official publication (iccwbo.org)
ICC Academy — Incoterms 2020: EXW or FCA? (academy.iccwbo.org)
Trade Finance Global EXW guide (ICC definition quoted)
Inventory rotation conventions. FIFO matches the physical metal movement and the LME warrant accounting basis. LIFO is permitted for some accounting jurisdictions (US GAAP) but rarely matches physical flow.
Maximum weight per unit area a warehouse floor can sustain, expressed in MT/m². LME-approved warehouses must demonstrate ≥10 MT/m² to accommodate stacked metal loads (copper cathode bundles ~5 MT each, four-high stacks).
Under Incoterms 2020 FOB, the seller delivers by placing the goods on board the vessel nominated by the buyer at the named port of shipment; risk of loss or damage transfers to the buyer at that point. The seller is responsible for export clearance and all costs to the point of loading; the buyer contracts and pays for ocean freight and all subsequent costs. Per the ICC Incoterms 2020 Explanatory Notes, FOB is 'to be used only for sea or inland waterway transport where the parties intend to deliver the goods by placing the goods on board a vessel,' and is not appropriate for containerised shipments where FCA is preferred.
FOB — Free On Board (named port of shipment)
ICC Academy Incoterms 2020 — FAS or FOB? (academy.iccwbo.org)
Period (typically 5–14 days) after metal arrives at a warehouse during which no storage charges accrue. Beyond this window, daily rates apply. LME-approved warehouses have published maximum free-storage charges in their approval documentation.
LBMA Good Delivery vault operated by HSBC in London (undisclosed location). Traditionally one of the two largest private vaults (with JPMorgan). Primary custodian for SPDR Gold Shares (GLD ETF) — the world's largest gold ETF (~900 t AUM as of 2024), all held in HSBC London vault. Publishes daily bar list. HSBC is major LBMA clearing member (LPMCL London Precious Metals Clearing Ltd, 4 members).
Incoterms® 2020 is the eighth edition of the International Chamber of Commerce's internationally recognised set of 11 standard trade terms defining the responsibilities of sellers and buyers in international goods transactions. Published by the ICC (Publication No. 723E), the rules allocate costs, risks, and obligations — including export/import clearance, transport, and insurance — between seller and buyer at each stage of delivery. The 2020 edition introduced changes including revised FCA rules for on-board bills of lading, a new DPU term replacing DAT, and differentiated insurance levels for CIF (Institute Cargo Clauses C) versus CIP (Institute Cargo Clauses A).
Incoterms® 2020 — ICC International Commercial Terms
International Trade Administration, US Department of Commerce (
One of seven LBMA Good Delivery gold/silver vaults, operated by JPMorgan Chase in London (specific location undisclosed for security). Second-largest private LBMA vault (after HSBC or Brink's depending on year). JPMorgan is major clearing member of LBMA and market-maker in loco London gold trading. Also major COMEX gold custodian (see below). Historic controversy: 2020 CFTC + DOJ $920M settlement for spoofing in precious metals markets 2008-2016.
US DOJ Press Release "JPMorgan Chase & Co. Agrees to Pay $920 Million" 29 Sep 2020
Lean inventory system in which materials arrive at the point of use exactly when needed, in the exact quantity required, using a pull-signal (Kanban card, e-Kanban, ERP flag) triggered by downstream consumption. Minimises working capital, warehouse space, and obsolescence risk — but exposes the buyer to supply-chain disruption. Widely adopted by Toyota (origin), automotive OEMs, and electronics manufacturers. Metal-processors often blend JIT for high-turnover consumables with buffered strategic stocks for critical or long-lead items (e.g., rare earths, cobalt).
ISO 22301 'Business Continuity Management'
Methods of restraining cargo against transit forces — strapping, chain, web lashings, twist-locks, stanchions. Calculated against acceleration coefficients (CSS Code: 0.8 g longitudinal, 0.7 g transverse, 1.0 g vertical for maritime). Failure causes most cargo-shift incidents.
Seven LBMA-recognised custodians of London Bullion Market Association Good Delivery gold/silver bars: (1) Bank of England (largest, ~400,000 gold bars), (2) HSBC Bank plc, (3) JPMorgan Chase Bank, (4) ICBC Standard Bank plc, (5) Brink's Global Services, (6) Loomis International, (7) Malca-Amit. Combined London gold stock ~9,500 t (Q4 2023). Silver ~34,000 t. Data published monthly at 10-week lag. Only these vaults can hold "loco London" gold in wholesale market.
Global network of ~620+ sheds across ~33 delivery locations approved by London Metal Exchange for physical settlement of futures contracts. Locations selected for logistical connectivity (rail, road, port, barge). Major hubs by tonnage: Port Klang (Malaysia), Rotterdam, Kaohsiung (Taiwan), Detroit, New Orleans, Antwerp, Baltimore, Busan (Korea), Singapore, Genoa. Hong Kong added January 2025, went live 15 July 2025 — 33rd location. Warehouses operated by LME-approved operators (Access World, Steinweg, Metro International, ISTIM, Henry Bath, GKE, PGS, others). Locations must demonstrate political/economic stability, transport connectivity, and legal soundness.
Landmark warehouse market-structure event: aluminium accumulated at Detroit LME sheds (mostly MITSI) reached ~1.5 Mt in 2013. Load-out capped at 3,000 t/day by LME rules meant waiting queues extended to 700+ days for physical delivery. Consumers paying LME price + $400+/t Midwest premium, unable to withdraw metal. Beer companies (MillerCoors) + Coca-Cola sued Goldman/JPMorgan. LME response: 2014 Linked Load-out Rate (LILO) tying inbound to outbound, 3,000 t/day minimum, rent cap 33% during queue.
US Senate Permanent Subcommittee "Wall Street Bank Involvement with Physical Commodities" 2014
Hong Kong became LME's 33rd approved warehouse location — first new location in over a decade — as gateway for mainland China (world's largest metals consumer). Timeline: 20 January 2025 location approved; 15 April 2025 first four facilities approved (GKE, Henry Diaper, PGS with local partners China Resources Logistics, Sinotrans HK, SF Supply Chain); 15 July 2025 went live with first warrants (Cheung Sha Wan, Tsing Yi, Yuen Long). By May 2026: 15 approved warehouses across 7 operators storing ~25,000t copper/tin/zinc, at near-capacity. Fee cap 61 US¢/t for copper (vs 51¢ in Korea/Singapore). Strategic significance: HKEX-owned LME uses HK to close last delivery-time gap to Chinese physical demand without triggering PRC bonded-zone complications. Concentrated in Cheung Sha Wan, Tsing Yi, Yuen Long, Kwai Chung.
LME Hong Kong Approved Warehouse Location (established 2025)
Post-2014 reform to LME warehouse rules: minimum daily physical load-out rate (currently 3,000 t/day per warehouse company at large queue locations; higher for very large stocks). Linked Load-in Load-out (LILO) rule ties new inbound tonnage to matching outbound to prevent queue formation. Warehouse can charge rent only for a maximum of 30 days once metal is in queue. Reforms cut Detroit queue from 700 to <100 days by 2016.
A storage facility formally approved by the London Metal Exchange to accept, store, and deliver physical metal against LME contracts. LME warehouses must comply with the LME Policy on the Approval and Operation of Warehouses, which sets minimum daily load-out rates, load-in/load-out (LILO) ratio requirements, and rent cap rules. As of 2024 the LME network spans over 400 warehouses in 33 locations globally. Only metal stored in an LME-approved warehouse may be warranted and used for physical settlement of LME futures contracts.
Based on: LME Policy on the Approval and Operation of Warehouses (lme.com)
LME Copper Contract Specifications (lme.com — '400 warehouses in 33 global locations')
The seven currently LME-authorised warehouse operators: (1) Metro International Trade Services MITSI (formerly Goldman Sachs-owned, sold to Reuben Brothers 2014, since acquired by Access World), (2) Access World (formerly Pacorini Metals, Glencore-owned), (3) C.Steinweg (Dutch family firm since 1847), (4) Impala Terminals (Trafigura subsidiary), (5) Henry Bath & Son (oldest, since 1794, JPM Chase / Mercuria), (6) ISTIM (Turkish family), (7) Worldwide Warehouse Solutions. Together operate ~620 approved sheds.
LME rule (Queue-Based Rent Capping, QBRC) limiting warehouse rent income during load-out queues: rent proportionally reduced by 33% for metal held >30 days when queue exceeds 30 days, further tiered reductions if queue extends. Introduced 2014 as part of warehouse reform, discouraging warehouses from artificially inducing queues. Current published rates: aluminium ~$0.60/t/day, copper ~$0.55/t/day, zinc/lead ~$0.50/t/day depending on location.
Daily rent charged by LME-listed warehouses on warranted metal, capped annually by LME. Different per-metal caps; rent stops when warrant is cancelled and load-out begins.
Swedish-listed cash-in-transit + precious metals logistics operator (Loomis AB, Nasdaq Stockholm:LOOMIS). LBMA + COMEX + LME-approved vault operator. Vault footprint: London (LBMA), New York (COMEX), Zurich, Frankfurt, Singapore, Hong Kong. Provides ETF custody, mine dore movement, wholesale vault services. Consolidated Swedish/UK operations after acquiring Sequel Group + Loomis UK.
Israeli-headquartered precious metals + diamond logistics and vaulting firm. LBMA + COMEX approved. Vault footprint: London, New York, Zurich, Hong Kong (major Asia bullion hub), Singapore, Shanghai, Dubai (DMCC free zone). Handles gold movement in the Asia-Pacific interbank market and ETF operations. Also handles diamond parcels, watches, art. Family-owned, less public disclosure than Brink's / Loomis.
LBMA approved custodian list lbma.org.uk
Largest LME warehouse operator by metal tonnage historically, especially aluminium. Founded 2010 as Goldman Sachs subsidiary; center of the 2011-2014 Detroit aluminium queue controversy where MITSI incentivised warrant deposits then rationed load-out (3,000 t/day cap), creating 700-day queues and inflating Midwest premium. Sold by Goldman to Reuben Brothers 2014, then Access World consolidation. Regulated post-scandal by LME 2014 load-out rate reform + rent cap. Congressional hearings + Deutsche Bank/Coca-Cola lawsuits.
Metro International Trade Services (MITSI)
US Senate Permanent Subcommittee on Investigations Report "Wall Street Bank Involvement with Physical Commodities" Nov 2014, hsgac.senate.gov
Real-time inventory accounting method in which every movement (receipt, put-away, pick, ship, adjustment, scrap) is recorded instantly against the on-hand quantity, giving a continuously updated stock balance. Contrasts with periodic inventory (only reconciled at count intervals). Enabled by barcode/RFID scanning, warehouse management systems, and integration with ERP. Prerequisite for cycle counting, safety-stock calculation, and demand planning. Required under IFRS/US GAAP for material warehouse operations.
Publishing and manufacturing workflow in which individual copies of a book (or other item) are produced only after an order is placed, rather than in advance in bulk. Enables long-tail titles to remain available indefinitely with zero inventory carry, at the cost of higher per-unit price and typically longer fulfilment time. Standard for academic monographs, technical references, and low-volume specialist publications.
POD platform documentation (Lulu, IngramSpark, KDP)
When warrant holders cancel LME warrants to take physical delivery, the metal enters a load-out queue at the relevant LME-approved warehouse. The LME Policy on the Approval and Operation of Warehouses mandates minimum daily load-out tonnages scaled by stored inventory: 2,000 t/day (150,000–299,999 t stored), rising to 4,000 t/day (900,000+ t stored). A 'Delivery Point (DP) Warehouse' with a queue exceeding 50 calendar days also becomes subject to the Linked Load-In and Load-Out (LILO) Rule, requiring additional load-out relative to new load-ins. Queue lengths directly affect physical premiums and rent-cap charges.
Based on: LME Policy on the Approval and Operation of Warehouses (lme.com, Sections C and E)
LME Rulebook Part 6 — Special Contract Rules (Appendix 10, lme.com)
Additional inventory held above expected demand to protect against demand variability, lead-time variability, and supply disruption. Sized statistically as z × σ × √LT where z is a service-level factor (1.65 for 95%, 2.33 for 99%), σ is demand standard deviation, and LT is lead time. Distinct from strategic stockpiles (national security, e.g. US DLA, China NSMR) and from consignment stock (supplier-owned). Underpins reorder-point (ROP) and (Q,R) inventory policies.
Silver, Pyke & Peterson 'Inventory Management and Production Planning and Scheduling' 3rd ed.
Most common warehouse storage system — single-deep pallet positions accessible directly by counterbalance forklift. Standard bay height 6–12 m, pallet position dimensions match euro-pallet or industrial-pallet base. Used for slow-moving / mixed-SKU metals: alloying additives, electrodes, refractories.
FEM — European Federation of Materials Handling
Vault network approved by the Shanghai Gold Exchange for physical settlement of SGE Au99.99 (kilobar) + Au99.95 + Ag99.99 contracts. Anchor: SGE Shanghai central vault. Extended network of provincial delivery vaults ~55 locations across China (Beijing, Shenzhen, Guangzhou, Hangzhou, etc.) operated by ICBC, Bank of China, CCB, Bank of Communications, ICBC Standard, and commercial vault operators. Enables physical gold redemption in Chinese yuan (CNY). Distinct from LBMA loco London delivery system.
Shanghai Gold Exchange "Delivery Vaults"
World Gold Council China gold market reports
Emerging Asian + Middle Eastern regional vault networks for exchange-listed bullion: Singapore Exchange (SGX) uses J.P. Morgan Singapore vault + Brink's Singapore for its gold contracts (limited volume). DGCX/DMCC (Dubai): DMCC-approved vaults (Brink's, Malca-Amit, Transguard) for DGCX gold + silver contracts and DMCC Tradeflow platform. Border-hub locations exploiting free-zone customs benefits. Not part of LBMA Good Delivery loco London system but interoperable with LBMA metal after refining acceptance.
SGX / DME Bullion Depositories (Asia-MidEast)
DGCX Gold Futures Contract Specifications, dgcx.ae
Per-MT-per-day or per-MT-per-month fee for keeping metal in warehouse after arrival. LME warrant rent has a published cap; non-LME storage is market-set.
London Metal Exchange — warehouse charges
Loading (stuffing) or unloading (unstuffing) of cargo into a container at a CFS (Container Freight Station) or warehouse. Stuffing plan documents weight distribution, lashing points and dunnage placement. Mandatory under VGM (Verified Gross Mass) per SOLAS amendment 2016.
Software platform for route planning, carrier selection, freight rating, document generation, and shipment tracking. Examples: Oracle Transportation Management, SAP TM, MercuryGate, BluJay.
Verified weight of a packed container as declared by the shipper under SOLAS regulation VI/2 (mandatory since 1 July 2016). Shipper must obtain a VGM certificate before container is loaded onto a vessel. Two permitted methods: Method 1 (weigh full container) or Method 2 (sum of cargo + tare from data plate).
A warehouse receipt is a document issued by a warehouse operator acknowledging receipt of specified goods held in storage and confirming the depositor's entitlement to those goods. In commodities markets, warehouse receipts (or their exchange equivalents such as LME warrants) serve as negotiable documents of title enabling financing and physical delivery against futures contracts. The LME's warrant system is the exchange's specific form of warehouse receipt, with each warrant representing a specific lot of approved metal and serving as both a quality certificate and a delivery instrument.
LME Rulebook Part 6, Warrant provisions (lme.com, Appendix 10)
An LME warrant is a document of title representing an entitlement to a specific lot of LME-approved metal stored in an LME-approved warehouse. Per the LME website, 'LME warrants are documents that represent an entitlement to a specific lot of LME-approved metal' and 'can only be issued if the underlying metal conforms to the quality requirements specified by the LME.' Since March 2021, all LME warrants are dematerialised and held digitally in the LMEsword system. Each copper warrant represents 25 tonnes (±2%) of an approved brand, shape, and grade.
LME Rulebook Part 6 — Special Contract Rules for Copper (lme.com, Appendix 10 redline)
Software platform managing receiving, put-away, storage location, picking, packing and shipping inside a warehouse. Integrates with ERP and TMS. Standard vendors used in metals: SAP EWM, Manhattan Active Warehouse, Blue Yonder, Oracle WMS Cloud.
Software layer that manages truck, trailer, container, and rail-car movements within the physical yard and dock area of a warehouse or terminal — dock-door assignment, trailer parking, dwell time, appointment scheduling, guard-house check-in/out, and driver mobile check-in. Integrates with WMS (inside the building), TMS (over-the-road), and gate cameras (OCR / RFID). Reduces detention/demurrage, improves dock utilisation, and provides live yard visibility. Critical for high-throughput metal warehouses and bonded terminals.
Gartner 'Magic Quadrant for Warehouse Management Systems' — YMS integration criteria
CSCMP 'Supply Chain Management Terms and Glossary' (cscmp.org)
Standard ISO 6346 dry container, internal length ~5.9 m, max payload ~22 MT, 33 m³ capacity. For dense base-metals concentrate, payload is the binding limit, not volume.
International Organization for Standardization — container standards
Standard ISO 6346 dry container, internal length ~12.0 m, max payload ~24 MT (road-limit constrained), 67 m³ capacity. Light-density cargoes are volume-limited; heavy metals are weight-limited.
A non-negotiable transport document issued by or on behalf of an air carrier that evidences the contract for carriage of cargo by air, serves as a receipt for goods, and contains shipping instructions. Under Article 11 of the Montreal Convention 1999, the air waybill constitutes prima facie evidence of the contract of carriage, receipt of cargo, and conditions of carriage; IATA Resolution 600a governs its format and data content across member airlines.
Air Waybill (Non-Negotiable Air Cargo Document)
IATA Resolution 600a (Air Waybill format and requirements)
Convention for the Unification of Certain Rules for International Carriage by Air (Montreal Convention 1999), Article 11
Depth at the quay wall, declared in metres below chart datum. Determines maximum vessel draft that can berth. Capesize bulk carriers require >18 m, Newcastlemax >19 m, Valemax >23 m. Most major iron-ore terminals (Port Hedland, Tubarão, Saldanha) are dredged to 22–23 m.
IHO — International Hydrographic Organization
Surcharge on ocean freight reflecting current bunker (marine fuel) prices. Adjusted by carriers monthly or quarterly. Now often replaced by IMO 2020 LSFO/VLSFO indices.
Carrier tariff (Maersk public BAF schedule)
A bill of lading is a transport document issued by or on behalf of a carrier that serves as a receipt for cargo, evidence of the contract of carriage, and (for an order B/L) a negotiable document of title. Under a charter party, a CONGENBILL or similar charter B/L is issued subject to the terms of the underlying charter; under liner transport the B/L incorporates the carrier's standard terms and conditions. The sea waybill is a non-negotiable alternative that evidences a contract of carriage but does not confer title.
Bill of Lading – Charter vs Liner B/L Distinction
BIMCO CONGENBILL 2022 (accompanying GENCON), bimco.org
ICC Rules for Documentary Credits UCP 600 Articles 19–22 (transport documents)
Train of one shipper, one product, one origin and one destination — bypasses classification yards. Standard ore train: 100–240 wagons, total 8,000–25,000 MT payload. Operated as captive fleet on dedicated ore corridors.
Non-containerised general cargo loaded and discharged as individual units, packages, or quantities directly into the vessel's hold—such as steel coils, bagged concentrates, project equipment, or bagged metals—as opposed to cargo loaded in a standardised freight container or conveyed as a solid bulk commodity. Break-bulk handling requires vessel crane or shore gear and significantly longer port time than containerised or bulk operations.
BIMCO contract and clause library, bimco.org
IMO SOLAS Chapter VI (Carriage of Cargoes)
A ship constructed generally with a single deck, top-side tanks, and hopper-side tanks in cargo spaces, intended primarily to carry dry cargo in bulk, including ore carriers and combination carriers (SOLAS IX/1.6). Gearless bulk carriers rely on shore equipment for cargo handling, while geared vessels carry their own cranes or grabs; they transport commodities such as iron ore, coal, grain, and fertilisers in lots of thousands to hundreds of thousands of tonnes.
IMO, SOLAS Convention Regulation IX/1.6 and XII/1.1
IMO Resolution MSC.170(79), 9 December 2004
Surcharge applied by carriers when the freight tariff currency (typically USD) appreciates or depreciates against the carrier's operating currencies. Expressed as % of base freight.
Carrier tariff (Maersk public CAF schedule)
Industry size classifications for dry bulk vessels defined by beam and draught relative to canal and port constraints: Capesize vessels (~100,000–400,000 DWT) are too large for the Panama Canal and must round Cape Horn or the Cape of Good Hope; Panamax (~60,000–80,000 DWT) are the largest vessels fitting original Panama Canal locks; Handysize (~15,000–35,000 DWT) are versatile smaller vessels serving minor ports. BIMCO's standard form NYPE 2015 time charter and voyage charter GENCON 2022 are typically used across these segments.
Incoterm (sea only): seller pays the cost and freight to bring the goods to the named destination port. Risk transfers when goods are loaded on the vessel. Insurance is NOT required.
A contract between a shipowner and a charterer for the hire of a vessel or its cargo-carrying capacity. A voyage charter party (e.g., BIMCO GENCON 2022) is a general-purpose agreement for a specific voyage in exchange for freight; a time charter party (e.g., NYPE 2015, the most widely used standard in dry cargo) hires the vessel for a period during which the charterer directs its commercial employment while the owner maintains crew and technical management.
BIMCO, GENCON 2022 and NYPE 2015 contract descriptions, ; bimco.org/contracts-and-clauses/bimco-contracts
Standard contract forms for bulk-shipping. NYPE (New York Produce Exchange) is the dominant time-charter form. GENCON is the dominant voyage-charter form. Published and revised periodically by BIMCO.
BIMCO — Baltic and International Maritime Council
Very large ore carrier (VLOC) designed for Brazil–China iron-ore trade, deadweight 380,000–400,000 MT. Originally built by Vale (Brazil) to lower freight cost from Carajás. Initially restricted from Chinese ports but cleared from 2014 after dredging upgrades.
Chinamax (Valemax) Bulk Carrier (~400 kdwt)
Standard waybill for international rail freight under the COTIF/CIM convention. Acts as evidence of contract of carriage between shipper and railway. Multi-lingual format. Required for all cross-border rail movements under CIM jurisdiction (most of Europe, Middle East and North Africa).
OTIF — Intergovernmental Organisation for International Carriage by Rail
Incoterm: seller pays for carriage and minimum-level insurance (ICC A, since 2020) to the named destination. Multimodal version of CIF.
Steel saddle structure used to secure horizontal coils on flatbed trailers or in container floors. Prevents axial roll and concentrates load on dunnage points. Required for steel coil transport under FMCSA 49 CFR 393.120 and EN 12642 XL.
Ratio of actual loaded mass to the maximum payload of the container. When utilization is below 100%, effective $/MT freight exceeds the nominal $/MT rate.
Industry concept; references: Maersk Logistics Optimisation guide
Long-distance continuous conveyor used between mine and port. Capacities up to 40,000 MT/hour, lengths up to 100 km (Bou Craa, Western Sahara, phosphate). For iron ore: Carajás conveyor (BR) and Boddington / Worsley alumina (AU).
CEMA — Conveyor Equipment Manufacturers Association
Incoterm: seller pays for carriage of goods to the named destination. Risk transfers when goods are handed to the first carrier. Multimodal version of CFR.
Incoterm (any mode): seller bears maximum responsibility — delivers goods cleared for import at the named destination, paying all duties, taxes, and carriage. Buyer only unloads.
Demurrage is an agreed amount payable to the shipowner in respect of delay to the vessel once the laytime has expired, for which the owner is not responsible; it runs continuously ('once on demurrage, always on demurrage') unless the charter party specifies exceptions. Despatch money (or Despatch) is an agreed amount payable by the owner if the vessel completes loading or discharging before the laytime has expired, typically at half the demurrage rate, incentivising efficient port operations.
BIMCO, 'Laytime Definitions for Charter Parties 2013', Definitions 30 and 31
Charge levied by carriers when the consignee holds the container beyond the free time period at destination (outside the terminal). Distinct from demurrage (inside the terminal).
US Federal Maritime Commission — official guidance
Incoterm (any mode): seller delivers goods unloaded at the named destination. Replaces former DAT. Seller bears all costs and risks until unloading at destination.
Inland intermodal terminal directly linked to a seaport by rail or road. Allows customs clearance, container storage, consolidation and deconsolidation away from the congested port. Major metals-relevant ICDs include Khorgos (Kazakhstan–China), Mlolongo (Nairobi), Tucandera (Manaus), Khodynka (Moscow region).
UNCTAD — United Nations Conference on Trade and Development
Incoterm (sea only): seller delivers goods alongside the vessel nominated by the buyer at the named port. Risk transfers when goods are placed alongside the ship. Seller clears goods for export.
Incoterm: seller delivers goods, cleared for export, to a carrier nominated by the buyer at the named place. Risk transfers when goods are loaded on the buyer's collection vehicle or handed to the carrier.
Shipment that fills a container (typically 20FT or 40FT). Consignee pays a flat per-container freight rate regardless of utilization. Standard for full-truck-load equivalents.
Trailer with no walls or roof, used for steel coils, rebar bundles, slabs, and over-width cargo. Coils require coil wells (recessed cradles) on the deck and dedicated lashing per AASHTO M-30 / NACFE guidelines.
Wagon with no walls used for intermodal containers (well-cars and stack-trains), heavy-lift cargo, slab steel, and pipe. Standard 60-foot flat wagon carries one 40-ft container or two 20-ft.
Flat Rail Wagon (Container / Heavy Lift)
Customs-bonded area where goods can be landed, stored, manipulated, manufactured, or reconfigured without payment of customs duty. Major metals FTZs: Singapore Free Port (precious metals vaulting), Dubai Multi Commodities Centre, Shanghai Free Trade Zone, Astana International Financial Centre. Distinct from a bonded warehouse — broader activities allowed.
How a freight quote is structured: per-MT (charge × material mass) or per-container/FCL (flat per-container × number of containers). The two are economically different when shipment is small enough to under-utilize containers.
Industry practice; references: Maersk and MSC public tariffs
FTL (Full Truckload) describes a shipment that occupies an entire road vehicle and moves directly from shipper to consignee, providing faster transit and lower handling risk. LTL (Less-than-Truckload) consolidates smaller shipments from multiple shippers into a single vehicle, with goods typically passing through freight hubs; both modes are governed by road transport regulations within the UN ECE framework (e.g., CMR Convention for international road transport).
Convention on the Contract for the International Carriage of Goods by Road (CMR), 1956 (UN ECE framework)
Border or junction where two rail systems use different track gauges (1435 mm standard vs 1520 mm Russian / 1067 mm Cape gauge / 1676 mm Indian). Cargo must either be transshipped between wagons or, in modern installations, wheelsets exchanged on variable-gauge bogies. Affects iron-ore and copper-concentrate flows between China (1435 mm) and post-Soviet states (1520 mm).
Geared vessels carry their own cargo cranes (typically 25–35 MT SWL) and can load/discharge at ports without shore equipment — used for parcels to smaller West African, Indian Ocean and Caribbean ports. Gearless vessels rely entirely on terminal infrastructure and are typical for major ore export terminals (Newcastle, Tubarão, Saldanha, Port Hedland).
Open-top, high-sided rail wagon used for iron ore, coal, scrap, bauxite and rolled steel. Capacity 60–100 MT per wagon depending on gauge. Dominant rail-car type on iron-ore corridors (Carajás EFC, Pilbara, Krivoy Rog–Mariupol, Tongling–Yangtze).
Self-discharging rail wagon with sloped floor and bottom gates. Discharges by gravity over a pit or onto a conveyor. Used for free-flowing granular materials: pellets, fines, alumina, concentrates. Faster turnaround than gondola at unit-train terminals.
The movement of goods in a single loading unit (container, swap body, or semi-trailer) that uses two or more modes of transport (ship, rail, road, air) in sequence without handling the cargo itself at modal interchange points. The UN ECE and UNCTAD framework distinguishes intermodal transport (single transport document) from multimodal transport (covered by a single multimodal transport document issued by a multimodal transport operator under the UNCTAD/ICC Rules for Multimodal Transport Documents).
Intermodal / Multimodal Freight Transport
UNECE Terminology on Combined Transport (2001)
UNCTAD/ICC Rules for Multimodal Transport Documents
The period of time agreed between the parties during which the shipowner will make and keep the vessel available for loading or discharging without payment additional to the freight (BIMCO Laytime Definitions for Charter Parties 2013, Definition 5). Laytime begins upon valid tender of the Notice of Readiness and is counted in working or weather working days as stipulated in the charter party; its accurate calculation is critical to determining demurrage or despatch liability.
BIMCO, 'Laytime Definitions for Charter Parties 2013', Definition 5
Shipment that does not fill a container; goods are consolidated with other shippers' cargo. Pricing is per CBM or per MT, with a minimum chargeable weight.
Trailer with deck height as low as 0.4 m, allowing transport of tall cargo (mining shovels, smelter pots, ladles) below road bridge clearances. Payloads 40–250 MT. Requires special abnormal-load permits and pilot vehicles for cross-border movements.
IRU — International Road Transport Union
Insurance covering loss or damage to goods in marine transit. Standard wordings: Institute Cargo Clauses (ICC) A, B, C, published by the Lloyd's Market Association and the International Underwriting Association.
Lloyd's Market Association / IUA — standard cargo wordings
Largest bulk carrier accepted at the Port of Newcastle, Australia — the world's largest coal export terminal. Length up to 300 m, beam up to 50 m, deadweight typically 200,000–210,000 MT. Used for iron-ore and coal trades Australia–China.
Effective freight per MT of actually loaded cargo when shipping FCL (full container load): total container cost ÷ actual loaded MT. Differs from theoretical container rate when the container is under-utilised. Used in TCO to surface the real economics of partial loading.
Quay is the continuous concrete structure along the waterfront. A berth is the section of quay assigned to a specific vessel call. Berth length, alongside depth, and air-draught limit which vessels can use a berth.
PIANC International Navigation Association
Mobile container handler with telescopic boom, capacity typically 45 MT under spreader. Reaches across three container rows and stacks 5 high. Used at intermodal rail-road terminals and dry ports where rail-mounted gantries are absent.
Reefer / Flat Rack / Open-top / Tank Container
ISO-standardised Series 1 container variants defined in ISO 668:2020 and ISO 1496: reefer containers incorporate refrigeration systems for temperature-sensitive cargo; flat-rack containers have collapsible end walls for oversized or heavy cargo; open-top containers have removable roof structures for top-loading; tank containers (ISO 1496-3) are frame-mounted pressure vessels for bulk liquids, gases, or hazardous materials. All share uniform 2,438 mm width and standard corner fittings for intermodal transfer.
ISO 668:2020, 'Series 1 Freight Containers – Classification, Dimensions and Ratings'
ISO 1496, 'Series 1 Freight Containers – Specification and Testing'
Insulated trailer with active temperature control. Used for catalytic converter scrap (PGMs are temperature-stable but high-value cargo benefits from sealed reefer chain of custody), electronic-waste with batteries, and specialised lithium-ion battery shipments under ADR class 9 / UN 3480.
Inter-governmental treaty (Appendix C to COTIF) governing dangerous-goods carriage by rail across Europe and adjacent countries. Equivalent of ADR for road transport. Defines class, packing group, marking, segregation and emergency procedures for all rail-borne hazmat including molten-metal flux, smelter acid and battery-grade lithium compounds.
Regulations concerning the International Carriage of Dangerous Goods by Rail
Yard cranes that stack containers in the terminal yard. RTGs are mobile (rubber tyres, electric or diesel-electric), RMGs are rail-mounted and electrified. RMGs are denser (rows 8–10 wide, stacks 5–6 high) and used at automated terminals (Rotterdam APMT, Hamburg HHLA, Shanghai Yangshan).
Rubber-Tyred / Rail-Mounted Gantry Crane
Mechanical equipment at bulk-handling terminals. Loaders are typically slewing or travelling booms with conveyor and telescopic spout, productivity 6,000–16,000 MT/h (iron-ore class). Continuous unloaders (CSU) use bucket-elevator or screw type, productivity 1,200–3,000 MT/h.
Bulk Ship Loader and Continuous Ship Unloader
Trailer with built-in hydraulic crane that can lift a 20 ft container off the ground unaided. Used for short-haul container drops at sites without forklift or reach-stacker — common for copper concentrate consolidation in Latin American and African mining districts.
Equivalent of CIM for rail freight across the post-Soviet rail space (Russia, Kazakhstan, Belarus, Ukraine, Central Asia, Mongolia, China, Vietnam, North Korea). Different gauge zones (1520 mm vs 1435 mm) require break-bulk or variable-gauge bogies at border interchanges.
OSJD — Council for Co-operation in Rail Transport (СНГ)
Loading and unloading of cargo from vessels by specialist port labour. Charged per MT or per container; often bundled with Terminal Handling Charge (THC).
A stowage plan is a diagram showing the planned or actual placement of cargo in each hold or container bay of a vessel, used to ensure structural integrity, stability, and compliance with weight limits. Lashing refers to the securing arrangements (wires, chains, webbing, twist-locks) used to prevent cargo movement in accordance with the IMO Code of Safe Practice for Cargo Stowage and Securing (CSS Code, MSC/Circ.1353) and the IMO/ILO/UNECE CTU Code 2014 for cargo transport units.
Cargo Stowage Plan and Lashing Arrangement
IMO Code of Safe Practice for Cargo Stowage and Securing (CSS Code), MSC/Circ.1353
IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code), 2014, imo.org
Self-propelled gantry that straddles a container row and lifts containers from above. Stacks 2–4 high. Used at European terminals (Bremerhaven, Antwerp, Le Havre) for high-productivity, lower-stack-density operations.
Quay-side gantry crane that lifts containers between vessel and apron. Modern STS cranes handle up to 65 MT under spreader and reach across 24-row vessels (Megamax). Productivity 30–40 moves/hour. Required at every major container terminal — for metals trades relevant on TEU/FEU loaded with copper cathode bundles or precious-metals security boxes.
Cylindrical pressure-vessel road tanker for sulphuric acid (smelter by-product), caustic soda, hydrochloric acid (refining reagent), and molten sulphur. Subject to ADR — chapter 6.8 design requirements and class-3 / class-8 placarding.
Cylindrical pressure-vessel rail wagon used for liquid cargoes — sulphuric acid (smelter by-product), caustic soda (alumina refining), molten sulphur. Carries hazard placards per RID (rail equivalent of ADR road).
Standardised volumetric units used to measure container capacity and port throughput: one TEU equals one standard 20-foot intermodal freight container (external dimensions 6,058 × 2,438 mm); one FEU equals one standard 40-foot container and is equivalent to 2 TEU. ISO 668:2020 classifies Series 1 freight containers by external dimensions and ratings for intercontinental traffic, with the 20-foot and 40-foot types being the dominant global standard.
Twenty-Foot / Forty-Foot Equivalent Unit
ANSI Blog summary of ISO 668:2020, blog.ansi.org
Fee charged by container terminal for moving the container between vessel and terminal (loading/discharge), plus storage within the free time window. Quoted per TEU or FEU.
Box trailer with side curtains that can be lifted to allow side-loading. Used in European intra-EU metals distribution (steel sheet, aluminium profiles, copper bundles). Common payload limit 24 MT under EU 96/53/EC.
An internationally recognised customs transit document issued under the UN TIR Convention 1975 (as amended) that allows road freight to cross multiple national borders under customs seals without being inspected or liable for import duties at each frontier, provided cargo is transported in approved secure vehicles or containers. The TIR Carnet is guaranteed by a chain of national guaranteeing associations, covering customs duties and taxes up to fixed limits if goods are not re-exported.
Transports Internationaux Routiers Carnet
UN TIR Convention 1975 (Customs Convention on the International Transport of Goods under Cover of TIR Carnets), as administered by UNECE
A standardised aircraft container, pallet, or pallet-net combination used to consolidate air cargo into units that fit specific aircraft fuselage contours, enabling rapid loading, unloading, and transfer between aircraft. ULD types and specifications (dimensions, tare weight, maximum gross weight, contour codes) are defined by IATA's ULD Technical Manual and IATA TACT (The Air Cargo Tariff) Regulations, and are subject to airworthiness requirements under ICAO Annex 8.
Unit Load Device (Aircraft Container or Pallet)
IATA ULD Technical Manual and IATA TACT Regulations
ICAO Annex 8 (Airworthiness of Aircraft)
Bulk carrier above 200 kdwt purpose-built for iron-ore trade. Distinguished from VLCC (oil) and ULCC. VLOC fleet operated mainly by Vale, BHP, Berge Bulk, ICBC Leasing.
Calendar days from loading at origin port to discharge at destination port. Used to size inventory-in-transit financing and demurrage exposure.
Composite daily shipping cost index published by the Baltic Exchange (London, since 1985) covering dry bulk vessels (Capesize, Panamax, Supramax, Handysize). Weighted average of Baltic Capesize Index (BCI, 40%), BPI (30%), BSI (30%) — Handysize removed 2018. Barometer of global commodity trade — iron ore, coal, grain, bauxite, scrap. Historical range 300-11,000 points; ~1000-2500 typical. Directly quoted USD/day. Cited in commodity macro analysis.
London Stock Exchange Group (LSEG-owned since 2016)
Component of BDI tracking Capesize dry bulk vessels (>150,000 DWT). Reflects average of five key iron ore + coal routes: C2 Tubarão→Rotterdam, C3 Tubarão→Qingdao, C5 W-Australia→Qingdao, C7 Colombia→Rotterdam, C14 Beijing→Brazil. Highly volatile due to iron ore trade dependency (~60% of Capesize demand from China buying Brazil/Australia ore). BCI moves reflect Chinese steel margins, seasonality (Brazil rains Q1), congestion (Chinese port destocking).
Baltic Exchange BCI methodology, balticexchange.com
BDI component for Panamax vessels (60,000-80,000 DWT, max Panama Canal old locks 32.31m beam). Routes: coal Newcastle→Japan, grain US Gulf→Continent, coal Richards Bay→India. Panamax more diversified cargo mix than Capesize (grain seasonal, coal steady). Retirement of old locks 2016 shifted market to Neopanamax (Panama Canal expanded), redefining size boundaries.
Baltic Exchange BPI methodology, balticexchange.com
BDI component for Supramax vessels (50,000-60,000 DWT, geared with cranes so port-flexible). Routes: coal, minor bulks (nickel ore, bauxite from Indonesia/Philippines pre-ban), fertilizer, grains, sugar. Less volatile than Capesize but higher trip-average. Vessel geared cranes allow calls at ports without shore infrastructure (key for minor mining ports).
Baltic Exchange BSI methodology, balticexchange.com
Baltic sub-index for Handysize (25,000-40,000 DWT) and Handymax (40,000-50,000 DWT) vessels. Removed from BDI in 2018 (kept as standalone index). Smallest bulk carriers, most port-flexible, minor bulks specialty: cement, minor metals concentrates, steel products, logs. Trade lanes intraregional Asia/Europe/Americas.
Baltic Exchange BHSI methodology, balticexchange.com
Baltic Exchange Capesize benchmark voyage: Tubarão (Vale terminal, Brazil) to Qingdao (China Shandong iron ore port). ~11,000 nm (~35 day voyage). Prices in USD/tonne. Vale is dominant charterer. C3 fluctuations directly drive Brazilian iron ore CFR China price differential vs Australian FOB. Panama+Suez transit vs Cape of Good Hope routing decision on fuel/BAF.
Baltic Exchange Route Definitions, balticexchange.com
Baltic Exchange Capesize benchmark voyage: Port Hedland/Dampier (Western Australia) to Qingdao (China). ~3,500 nm (~10-14 day voyage). Priced USD/tonne. Dominated by BHP, Rio Tinto, Fortescue as charterers to Chinese steel mills. C5 the shortest Capesize haul, so most sensitive to bunker fuel + port waiting time. Reflects Sino-Australian iron ore trade (world largest single tonnage flow, ~700 Mt/year).
C5 Route — Western Australia to Qingdao Iron Ore
Baltic Exchange Capesize benchmark voyage: Puerto Bolivar (Cerrejón coal, Glencore-Anglo-BHP JV) to Rotterdam. ~4,700 nm. Priced USD/tonne. Represents Atlantic coal trade — thermal coal to European power stations, historically dominated Baltic Atlantic basin freight until 2022 (when Europe coal demand spiked from Russian gas cutoff, then declined). Increasingly reflects coke coal + steam coal blended flows.
Largest dry bulk carrier class: 150,000-400,000 DWT, ~290-360 m LOA, ~45-65 m beam, ~18-24 m draft. Too large for Panama Canal (post-expansion max Neopanamax 55 m beam), routes via Cape of Good Hope / Cape Horn (hence "Capesize"). Primarily iron ore + coking coal + coal. Fleet ~1,700 vessels. Newbuild cost $60-70M, scrap value $6-10M. Time charter equivalents (TCE) fluctuate $5,000-100,000/day.
Clarksons Research Shipping Intelligence, clarksons.com
Dry bulk vessels sized to transit original Panama Canal locks (max beam 32.31 m, draft 12 m, LOA 294 m). Kamsarmax (82,000 DWT) is variant maxed for Port Kamsar Guinea bauxite. Post-2016 Panama expansion: New Panamax = Neopanamax up to ~140,000 DWT. Trade grain, coal, minor bulks. Fleet ~2,700 vessels. TCE $8,000-40,000/day typical range.
Mid-size bulk carriers with self-loading cranes (geared), allowing operation at ports without shore infrastructure. Ultramax is upgraded Supramax with 4×30t or 4×36t cranes (vs 4×30t on Supra). Fleet ~4,500 vessels combined — largest bulker segment by count. Trade: minor bulks, grain, cement, steel, fertilizer. TCE $8,000-30,000/day.
Clarksons Research Shipping Intelligence Weekly, clarksons.com
Standard shipping revenue metric: (voyage revenue − voyage costs) ÷ voyage duration, expressed USD/day. Voyage costs include bunker fuel, port charges, canal fees. TCE allows comparing voyage-charter (spot per-tonne) with time-charter (per-day) contracts on same footing. Freight indices (BDI, BCI, C3, C5) publish TCE in USD/day. Public shippers (Star Bulk, Golden Ocean, Diana Shipping) report quarterly avg TCE as key margin metric.
Baltic Exchange TCE calculation methodology, balticexchange.com
SEC 20-F filings of listed drybulk shippers
Portion of a voyage where a bulk vessel sails without cargo (only water ballast for stability) to reach next loading port. Ballast bonus / ballast rate premium negotiated in charter parties for long empty repositioning (e.g., Rotterdam → Brazil after Cape run). Baltic C5TC / C3TC published rates include ballast leg. Environmental issue: ballast water treatment mandatory under IMO BWM Convention 2017 to prevent invasive species.
IMO Ballast Water Management Convention 2017, imo.org
A United Nations Economic Commission for Europe (UNECE) treaty governing the international road transport of dangerous goods between and through signatory states in Europe and beyond. ADR is updated biennially; the 2023 edition applies. It prescribes classification, packaging, labelling, vehicle requirements, and training obligations aligned with the UN Model Regulations.
ADR — European Agreement on International Carriage of Dangerous Goods by Road
UN ECE European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR), 1957 (as amended 2023); unece.org
Maximum slope angle (degrees from horizontal) at which a heap of granular cargo remains stable. Below 35° the cargo is classed as free-flowing and requires trimming during loading. Required field in the IMSBC Shipper's Declaration.
Solid bulk cargo that may liquefy if shipped at moisture content above TML. Includes most fine metal concentrates (copper, lead, zinc, nickel, iron-ore fines smaller than 6.3 mm), bauxite fines, and certain coal types. Requires TML certification and moisture-content certificate from shipper before loading.
Solid bulk cargo with chemical hazards: self-heating (DRI/HBI), corrosive (ferrous metal swarf), oxidising (sodium nitrate), or toxic (lead concentrate above MHB threshold). Carriage requires Schedule B compliance — MHB declaration, segregation, temperature monitoring where applicable.
The mandatory international standard for the safe carriage of dangerous goods by sea, published by the International Maritime Organization and made legally binding under SOLAS Chapter VII. It classifies dangerous goods into nine classes, assigns UN numbers and proper shipping names, and specifies packaging, labelling, stowage, and segregation requirements. The current consolidated edition is the IMDG Code Amendment 41-22.
International Maritime Dangerous Goods Code
IMO International Maritime Dangerous Goods Code (IMDG Code), adopted under SOLAS 1974 Chapter VII
IMO Resolution MSC.122(75) and subsequent amendments
Mandatory IMO code (SOLAS Chapter VI) governing safe stowage and carriage of all solid bulk cargoes, including iron ore fines, nickel ore, bauxite, manganese, chromite, ilmenite, copper concentrate, lead/zinc concentrates. Classifies each cargo as Group A (liquefaction risk), Group B (chemical hazard) or Group C (neither).
International Maritime Solid Bulk Cargoes Code
Loss of shear strength of fine-particulate cargo when vibration and pore-water pressure during a sea voyage cause the cargo mass to behave like a fluid. Sudden shift of cargo to one side can capsize the vessel. Direct cause of multiple bulk-carrier losses (Vinalines Queen 2011, Bulk Jupiter 2015, Stellar Daisy 2017 — partial contribution).
A classification assigned to dangerous goods (other than Class 1, 2, 4.1, 5.2, 6.2, and 7) indicating the degree of danger: Packing Group I = high danger; Packing Group II = medium danger; Packing Group III = low danger. Packing groups determine minimum packaging strength requirements, testing protocols, and may influence labelling and placarding requirements under the UN Model Regulations and IMDG Code.
Packing Group I / II / III — Degree of Hazard
UN Model Regulations (Orange Book) 22nd Revised Edition (2021), Section 2.1.1.3 (Packing groups)
A standardised 16-section hazard communication document required by OSHA Hazard Communication Standard 29 CFR 1910.1200(g) (HazCom 2012, aligned to UN GHS Rev.7) and REACH Article 31 for chemical substances and mixtures. Sections 1–11 and 16 contain OSHA-enforceable information; Sections 12–15 (ecological, disposal, transport, regulatory) align with GHS but are non-mandatory under OSHA. SDSs must be in English for US workplaces.
OSHA HazCom Standard 29 CFR 1910.1200(g) and Appendix D
OSHA Publication 3514 'Hazard Communication Standard: Safety Data Sheets'
REACH Regulation (EC) 1907/2006 Article 31
Mandatory IMSBC document presented by shipper to ship's master before loading. Contains the Bulk Cargo Shipping Name (BCSN), IMSBC group, stowage factor, angle of repose, moisture content, TML (for Group A), MHB-classification (for Group B), and physical properties. Refusal to load is justified if BCSN is missing or unverified.
Volume occupied by one tonne of bulk cargo in stowage, expressed in m³/t or ft³/MT. Iron ore fines: 0.39–0.45 m³/t; copper concentrate: 0.30–0.36 m³/t; alumina: 1.10–1.30 m³/t. Determines how much can be loaded into a vessel of given grain capacity.
Maximum moisture content (% by mass) at which a Group A cargo can safely be transported in a non-specially-fitted ship. Above the TML, fine ore concentrates can liquefy under ship vibration and free-surface cargo movement can capsize the vessel. TML must be determined by an approved laboratory within 6 months before loading.
Levelling of bulk cargo in the hold to reduce free surface and prevent shift during the voyage. "Untrimmed" cargoes form natural piles at angle of repose; "trimmed level" cargoes (most iron-ore fines and concentrates) require mechanical levelling per IMSBC Section 5.
A four-digit code assigned by the UN Committee of Experts on the Transport of Dangerous Goods to identify specific dangerous substances or articles in the transport of dangerous goods. UN numbers are prefixed 'UN' (e.g., UN 1098 for allyl alcohol, UN 3077 for environmentally hazardous substances). They are listed in the UN Model Regulations (Orange Book) and replicated in IMDG, ADR, and other modal regulations.
UN Number — United Nations Dangerous Goods Identification Number
UN Recommendations on the Transport of Dangerous Goods — Model Regulations, 22nd Revised Edition (2021), Chapter 3.1 and Dangerous Goods List (Chapter 3.2); unece.org
Base metals is the standard market term for the six non-ferrous industrial metals that trade as benchmark contracts on the London Metal Exchange: aluminium, copper, lead, nickel, tin and zinc. The term distinguishes them from precious metals (gold, silver, PGMs) by their primary industrial use, higher volume, and tendency to oxidise. LME publishes Official Prices, Closing Prices and Stocks for each base metal daily, and these are the global pricing reference for physical contracts, hedging and ETPs. CME COMEX also lists copper as HG; SHFE in Shanghai lists all six as RMB-denominated contracts. Aluminium also appears in light-metal classifications.
Based on: London Metal Exchange — Metals (
A distinctive feature of the LME is its pricing structure, which quotes both a cash price (for settlement in two business days) and a three-month forward price (for delivery three months from the trade date). This convention reflects the historical shipping time from major mining regions to London and underpins the LME's role as a global pricing benchmark.
LME Cash and Three-Month Pricing Convention
The world's leading derivatives marketplace, CME Group operates four designated contract markets: CME, CBOT, NYMEX, and COMEX. It offers global benchmark products across interest rates, equity indices, foreign exchange, energy, agricultural commodities, and metals. NYMEX and COMEX were acquired in August 2008 for approximately $8.9 billion.
COMEX is a Designated Contract Market operated by CME Group that offers benchmark futures and options contracts in precious, base, and ferrous metals. It joined CME Group through the merger with NYMEX in 2008 and serves as a primary global reference for gold, silver, copper, and aluminium price discovery.
Based on: CME Group official documentation
Contango describes a market condition in which futures prices are higher than the current spot price, typically reflecting storage costs and the cost of carry. Backwardation is the opposite condition, where futures prices trade below the spot price, often indicating near-term supply tightness or strong immediate demand.
Launched in November 2005, DGCX is the largest derivatives exchange in the Middle East. It offers futures contracts across four asset classes — currencies, metals (including gold and silver), hydrocarbons, and equities — serving producers, manufacturers, and financial institutions seeking commodity and currency risk management in the region.
Founded in April 2021, GFEX is China's fifth commodity futures exchange and the first focused on green-economy and new-energy commodities. It lists futures and options on industrial silicon (December 2022), lithium carbonate (July 2023), and polysilicon (December 2024), providing hedging and price-discovery tools for EV battery and photovoltaic supply chains.
Operator of the Stock Exchange of Hong Kong (SEHK), Hong Kong Futures Exchange (HKFE), and LME (London Metal Exchange, acquired 2012). Regulated by the SFC. HKEX is the principal listing venue for Hong Kong-domiciled and mainland-Chinese issuers accessing international capital, and — via the LME — the world’s largest venue for industrial-metals price discovery.
Founded in 2000, ICE is a global network of exchanges and clearing houses covering energy, agricultural commodities, credit derivatives, equities, and foreign exchange. It acquired NYSE Euronext for approximately $11 billion in November 2013, making it parent of the New York Stock Exchange. ICE Futures Europe lists Brent crude and select soft commodities.
A wholly owned subsidiary of the Shanghai Futures Exchange (SHFE), INE lists futures products open to overseas investors, including RMB-denominated crude oil (SC, listed March 2018, the first Chinese commodity futures open to foreign participants), bonded copper (BC), low-sulfur fuel oil, and TSR 20 rubber. All products are accessible to qualified foreign investors.
Established in 1987 at the request of the Bank of England, the LBMA is the international trade association representing the global over-the-counter (OTC) wholesale market for gold, silver, platinum, and palladium. It defines itself as the global authority on precious metals, maintaining the Good Delivery Lists that set standards for acceptable bullion bars traded in London.
Founded in 1877, the London Metal Exchange is the world's largest market for industrial base metals, including copper, aluminium, zinc, lead, nickel, and tin. It operates three trading methods: open-outcry Ring trading, electronic trading via LME Select, and a 24-hour telephone market. The LME is owned by Hong Kong Exchanges and Clearing (HKEX), which acquired it in 2012.
The LME Ring is the world's last open-outcry trading floor for industrial metals, operating five-minute Ring sessions for each metal between 11:40 and 17:00 London time. Only Category 1 members may trade in the Ring. The LME Official Prices — the global settlement and reference prices for aluminium, copper, zinc, lead, tin, and nickel — are discovered exclusively through Ring trading.
Formalised via a Deed of Establishment in 1987, the LPPM governs the OTC wholesale market for platinum and palladium in London, setting Good Delivery standards for bars accepted in London, Zurich, and other international centres. It oversees the LBMA Platinum and Palladium Prices, which are daily electronic benchmark auctions currently administered by the London Metal Exchange (transitioning to ICE Benchmark Administration in Q3 2026).
Established in November 2003 and regulated by the Securities and Exchange Board of India (SEBI), MCX is India's largest commodity derivatives exchange and the world's sixth-largest by number of contracts traded (FIA, 2024). It offers futures and options on bullion (gold, silver), base metals (copper, zinc, aluminium, nickel, lead), energy, and agricultural commodities.
A CME Group designated contract market since 2008, NYMEX is the world's premier exchange for energy futures (crude oil, natural gas, gasoline) and hosts platinum and palladium futures, complementing COMEX's gold, silver, and copper contracts within the CME Group metals complex. It merged with COMEX in 1994 before both joined CME Group.
Open outcry is a traditional method of communicating trade orders on an exchange floor through a combination of verbal bids and offers and standardised hand signals. On the LME, Ring trading — a form of open outcry — takes place in a circular arrangement where members trade in five-minute sessions for each metal, and this session produces the LME's Official Prices.
Precious metals are the eight rare, naturally occurring metallic elements of high economic value: gold (Au), silver (Ag), and the six platinum group metals (PGMs) — platinum (Pt), palladium (Pd), rhodium (Rh), ruthenium (Ru), iridium (Ir) and osmium (Os). LBMA publishes daily LBMA Gold Price, LBMA Silver Price and LBMA Platinum and Palladium Price benchmarks administered by ICE Benchmark Administration. Spot quotes are conventionally in USD per troy ounce. Beyond investment and jewellery use, precious metals are critical to industry — silver in solar and electronics, PGMs in autocatalysts and hydrogen electrolysers, gold in bonding wire. PGMs distinct trading floors include LPPM and Johnson Matthey base prices.
Based on: LBMA — Precious Metal Prices (
LPPM — London Platinum and Palladium Market.
The settlement price is the official price established at the close of a trading session, used as the reference price for marking open positions to market and settling expiring contracts. On the LME, the Official Settlement Price is the last cash offer price quoted during the second Ring session, established between 12:20 and 13:25 London time, and serves as the global reference for physical metals contracts.
Established in October 2002 by the People's Bank of China, the SGE is the world's largest physical gold exchange by trading volume. It operates spot contracts such as Au99.99 and Au99.95, with physical delivery to certified vaults. Since April 2016 it has published the Shanghai Gold Benchmark Price (SHAU) twice daily at 10:15 and 14:15 Beijing time, quoted in RMB per gram.
SGX is Asia's leading derivatives exchange and the global benchmark hub for seaborne iron ore. It lists the SGX TSI Iron Ore CFR China (62% Fe Fines) Index Futures and SGX MB Iron Ore CFR China (65% Fe Fines) Index Futures, alongside swaps and options. In December 2018, SGX launched the world's first high-grade (65% Fe) iron ore derivatives.
Established in 1999, the Shanghai Futures Exchange is a futures exchange regulated by the China Securities Regulatory Commission (CSRC). It offers futures contracts for copper, aluminium, zinc, lead, nickel, tin, gold, silver, and crude oil, making it one of China's principal commodities exchanges.
The spot price is the current market price at which a commodity can be bought or sold for immediate delivery and settlement. A futures price is the agreed-upon price for delivery of a commodity at a specified date in the future, determined by supply and demand expectations, cost of carry, and storage costs.
Based on: CME Group and LME official documentation
Founded in 1984 and acquired by Japan Exchange Group (JPX) in October 2019, TOCOM transferred its precious metals (gold, silver, platinum, palladium) and agricultural derivatives to the Osaka Exchange (OSE) in July 2020. TOCOM now operates solely as Japan's energy derivatives exchange, listing crude oil, gasoline, kerosene, gas oil, LNG, and electricity futures.
Warehouse stocks are physical quantities of metal stored in exchange-accredited warehouse facilities and registered against exchange warrants. On the LME, approved warehouses are authorised to store LME-registered brands of metal on behalf of warrant holders and to issue LME warrants representing title to those metals.
Founded in 1970 and headquartered in London, Argus Media is an independent price reporting agency covering energy and commodity markets in 160 countries. Its Argus Battery Materials service publishes over 200 price assessments for lithium, cobalt, nickel sulphate, graphite, and other battery metals, and the company declares IOSCO compliance across its price assessment methodologies.
Asian Metal (asianmetal.com) is a specialist price reporting and market intelligence platform covering minor metals, ferro-alloys, rare earths, base metals, steel products, and refractories, with a focus on Chinese market conditions. It publishes daily spot prices and market news widely used by traders and industrial consumers for non-LME and China-domestic metals where mainstream PRA coverage is limited.
UK Financial Conduct Authority (FCA) authorised Benchmark Administrator under UK BMR (Benchmarks Regulation), founded 2019 and majority-owned by Kraken. Publishes regulated indices for digital assets and tokenized real-world assets, including the PAXGUSD Reference Rate (regulated daily benchmark for tokenized gold PAXG). CF Benchmarks indices are used as reference prices in derivatives, ETPs, and structured products, and provide the regulated fix used in the TSM Premium Tracker dual-view (Fix vs Fix).
Source: CF Benchmarks official documentation (
Fastmarkets is a cross-commodity price reporting agency with more than 150 years of history, combining Metal Bulletin, American Metal Market, Scrap Price Bulletin, Industrial Minerals, and other brands. It publishes benchmark indices for base metals, steel scrap, lithium, cobalt, rare earths, and carbon markets. Its European benchmark subsidiary, Fastmarkets Benchmark Administration Oy, is regulated by the Finnish Financial Supervisory Authority under the EU Benchmarks Regulation.
Part of S&P Global, Platts is a leading price reporting agency publishing daily benchmark assessments for energy, metals, and agricultural markets. Its flagship metals benchmark, the IODEX (IODBZ00), is a spot assessment of iron ore fines delivered into China, assessed at 17:30 Singapore time. Platts also publishes assessments for alumina, steel HRC, and other metals across global markets.
A Price Reporting Agency (PRA) is a commercial entity that publishes benchmark price assessments for physical commodity markets by collecting transaction data, bids, and offers from market participants on a voluntary basis. IOSCO issued its Principles for Oil Price Reporting Agencies in October 2012, establishing a global framework for methodology transparency, data integrity, and independent auditing; PRAs are encouraged to apply these principles across all commodity derivatives markets.
Independent firm that publishes benchmark prices for commodities not traded on a central exchange — by survey, voluntary contributions and price-discovery methods. Recognised PRAs for metals: Fastmarkets, Argus, Platts (S&P Global), Asian Metal, Shanghai Metals Market. PRA prices are settlement references in many bilateral physical contracts; regulators have started oversight under IOSCO PRA Principles (2012).
Founded in 1999, Shanghai Metal Market (SMM) is China's leading integrated price reporting platform for metals, publishing over 15,000 spot price assessments covering base metals, minor metals, precious metals, battery materials, rare earths, and ferrous metals. SMM explicitly adheres to IOSCO Principles for Price Reporting Agencies and is widely used as a contract pricing reference by domestic and international industrial buyers.
Market-development organisation for the gold industry, headquartered in London and funded by the world’s leading gold-mining companies. Publishes quarterly Gold Demand Trends reports, the Central Bank Gold Reserves database (in cooperation with the IMF), and standards including the Responsible Gold Mining Principles (RGMPs) and the Retail Gold Investment Principles. Sponsors research on gold’s role as a strategic asset in institutional and central-bank portfolios.
Source: World Gold Council publications (
Fee paid to a sourcing agent who locates supply or buyers, typically % of contract value (1–3%) or per-MT. Agents act on behalf of one party; brokers are intermediaries between two.
Independent third party accredited (e.g. ISO/IEC 17025, LBMA Good Delivery, LME-listed assayers) to determine the metal content, weight and purity of a consignment. Their certificate is contractually binding for invoicing and quality disputes. Major firms: SGS, Bureau Veritas, Alfred H Knight, Inspectorate, Camargo Correa.
Fee paid to a broker for arranging a metals trade, expressed as $/MT or % of contract value. LME ring brokers, OTC brokers, and physical brokers all charge brokerage.
London Metal Exchange — broker definitions
A member of LME Clear—the LME's central counterparty—that is permitted to clear Cleared Contracts. For the LME Base Service, Clearing Members are Category 1, 2, or 3 Members. Clearing Members stand between the exchange and their clients in the clearing chain, posting margin and guaranteeing settlement of cleared trades under the LME Clear Rulebook.
LME Rulebook (30 March 2026 release), Part 1 Definitions: 'Clearing Member'
LME membership structure criteria and capabilities (March 2025)
Semi-finished and fabricated metal goods stage — rolling, drawing, casting and forging refined metal into wire, sheet, tube, billets, alloys and finished components for industrial consumers. Conversion margins and end-market demand drive economics.
Downstream segment of the metals value chain
TSM editorial; industry-standard segmentation
Set of institutions and intermediaries that surround the physical value chain — exchanges, brokers, vaults, refiners, assayers, price reporting agencies, regulators, sanctions bodies, insurers, financiers, standard-setters, training providers. TSM tracks 42 layers on /ecosystem/, each with primary lists of accredited participants.
Sectors that physically consume refined and fabricated metal — construction, electrical/electronics, transport, machinery, packaging, batteries, jewellery. End-use demand sets the long-run price floor; substitution and intensity-of-use shift segment-level demand.
End-use segment of the metals value chain
TSM editorial; aligned with World Bureau of Metal Statistics segmentation
An entity that consumes refined or fabricated metal as an input to its own manufacturing process or as a final product, with no intention of reselling the metal as a commodity. Examples include electronics manufacturers, automotive producers, and jewellery makers. End-users are not market makers and typically hedge price exposure through exchange-traded or OTC instruments.
LME membership structure (Category 5 trade members as non-issuing participants); industry supply chain definitions
A downstream manufacturer that converts refined metal into semi-fabricated or fabricated products such as wire rod, sheet, tube, ingot, or billet for industrial end-users. Fabricators typically purchase refined metal from traders or refiners and transform it using rolling, extrusion, drawing, or casting processes.
International Copper Study Group (ICSG) 'Fabricated Products' classification; industry standard supply chain terminology
The LME Rulebook defines five membership categories. Category 1 (Ring Dealing Member): authorised to trade in the Ring, a member of LME Clear, authorised to clear and issue Client LME Base Contracts. Category 2: not authorised for Ring trading but is an LME Clear member and can issue Client Contracts. Category 3: LME Clear member, can clear but cannot issue Client Contracts. Category 4: not an LME Clear member, authorised to issue Client Contracts. Category 5: no Ring trading, no clearing, no contract issuance rights.
LME Membership Categories 1–5 (LME Rulebook Part 1 Definitions)
LME Rulebook (30 March 2026 release), Part 1 Definitions: 'Category 1 Member' through 'Category 5 Member'; lme.com
Producer/seller's allocation for marketing the metal (sales literature, trade fairs, samples). Typically <0.5% of revenue; bundled into TCO for full cost transparency.
A firm that takes principal positions in physical metal—buying, storing, financing, transporting, and selling commodities across geographies and time periods, earning a margin on the physical arbitrage and services. Merchants typically operate along the entire supply chain, providing market liquidity and logistics. Major commodity merchants describe themselves as 'integrated physical commodity traders' in annual reports.
Commodity Merchant / Physical Metal Trader
Trafigura Annual Report 2023 (self-described 'physical commodity trader')
Glencore Annual Report 2023 (self-described 'integrated producer and marketer of commodities')
Concentration, smelting and refining stage — converting raw ore into intermediate (concentrate, matte) and refined products (cathodes, ingots, bars) at recognised purity. Treatment and refining charges (TC/RCs), recovery rates and offtake contracts dominate economics.
Midstream segment of the metals value chain
An upstream entity that extracts metal-bearing ore or mineral from the earth through mining operations and typically sells raw ore, concentrate, or unrefined metal to smelters or refiners. Producers are the primary originators of the physical metal supply chain and bear exploration, development, and operating risk. They are classified in responsible-sourcing frameworks as the first point of origin.
OECD Due Diligence Guidance 3rd Edition (2016), definitions
RMI RMAP smelter/refiner classification (upstream of mine)
Companies that physically extract ore and/or refine metal — diversified majors (BHP, Rio Tinto, Glencore, Anglo American, Vale), state-owned (CODELCO, Norilsk Nickel, Chinalco, MMC), pure-play single-metal producers (Freeport for copper, Albemarle for lithium, Newmont for gold) and royalty/streaming companies (Wheaton, Franco-Nevada). Reporting on fiscal-year basis; primary source for production data is the company's own annual report.
Recovery of metal from end-of-life products and process scrap, melted and refined back to primary-equivalent quality. Recycled (secondary) supply complements mined (primary) supply; share varies sharply by metal — high for copper, lead, aluminium; near-zero for rare earths, lithium-ion battery metals still ramping. Tracked by ISRI, ICA, IAI, Eurometaux.
Secondary / scrap recycling segment of the metals value chain
An LME Category 1 Member authorised to trade by open-outcry in the LME Ring—the exchange's iconic circular trading venue—as well as on LMEselect and the telephone market. Ring trading sessions set the Official Prices that underpin global physical metal contracts. Only Ring Dealing Members may participate in Ring sessions; a minimum of five Category 1 firms must be present for Official Prices to be determined.
LME Rulebook (30 March 2026 release), Part 1 Definitions: 'Category 1 Member'
LME Member Notice 21/160 (Ring re-opening, 1 September 2021)
A mid-stream processing entity that transforms ore, concentrate, or scrap into refined metal of specified purity. In LBMA terminology, a refiner producing Good Delivery gold bars must achieve minimum 995.0 parts per thousand fineness. The RMI RMAP assessment targets smelters and refiners as the 'chokepoint' in responsible sourcing due diligence, since they are positioned between miners and manufacturers.
LBMA Good Delivery Rules (2025 edition), Section 2.1.7 (refiner fineness requirements)
RMI RMAP Overview, responsibleminerals.org
Exploration, mining and ore extraction stage — finding ore bodies (JORC/SAMREC reserves), permitting, drilling, blasting and hauling raw ore to the processing plant. Capital-intensive; geology, country risk and resource quality dominate economics.
Upstream segment of the metals value chain
End-to-end physical and commercial flow of metal from ore body to end-consumer: upstream (mining) → midstream (smelting/refining) → downstream (fabrication) → end-use (industry) → recycling (back to refining). TSM uses a 5-pillar segmentation; alternative models (3-stage, 7-stage) are equivalent at different granularity.
In metals markets, arbitrage is the simultaneous purchase and sale of essentially identical metal (or metal exposure) in different markets to capture a price difference net of transport, financing, storage and conversion costs. Common forms include: (1) inter-exchange arbitrage — e.g. SHFE-LME copper spread, where physical copper or futures positions are taken on both exchanges; (2) physical-vs-futures arbitrage — cash-and-carry where the metal is bought in the spot market and sold forward on LME/CME when the contango exceeds full carry; (3) location arbitrage — same metal traded across LME-approved warehouses; (4) quality arbitrage — between different grades or brands at the same exchange. Arbitrage trades require precise cost accounting for warehouse rents, freight, insurance, FX and exchange margin. Both Bloomberg and Reuters publish real-time spreads used by physical traders to monitor opportunities.
Based on: London Metal Exchange — LME Reference Guide
CME Group — Educational Resources on Commodity Arbitrage.
An assay is the chemical or fire analysis of a metal sample to determine its precise elemental composition and purity. In mining, assay results expressed in g/t or % are used to establish ore grade and resource estimates. In refining and trading, assay certificates confirm that metal meets required specifications; for example, LBMA Good Delivery gold bars must meet a minimum fineness of 995 parts per thousand. The LBMA Sampling and Assaying guidance describes fire assay as the classical technique used to determine precious metal content of gold and silver ore, noting it remains the most accurate standard in the industry.
Based on: LBMA — Chapter 4: Sampling and Assaying (lbma.org.uk)
LBMA Good Delivery — bar requirements overview (
JORC Code 2012 (Appendix 1 — 'grade: quality, assay, analysis')
Basis is the difference between the spot (cash) price and the futures price for a commodity at a given point in time, reflecting cost of carry (storage, insurance, and financing) and supply-demand conditions in physical markets. In LME metals terminology, the spread between the Cash and 3-Month prompt prices is a primary market indicator: a 'contango' (cash below 3-month) reflects normal carrying costs, while 'backwardation' (cash above 3-month) signals near-term physical tightness. The LME Official Prices Benchmark Methodology publishes bid and offer Official Prices for multiple Prompt Dates, enabling direct observation of the basis structure.
Basis (Spot vs Futures Price Differential)
Based on: LME Official Prices Benchmark Methodology (lme.com)
LME Benchmark Administration — Definitions ('Prompt Date' definition, lme.com)
A benchmark price is a widely accepted reference price used to price physical contracts, financial derivatives, and inventory valuations across an industry. The LME Official Settlement Price — defined in the LME Benchmark Statement as 'the offer price of the Cash Prompt Date determined as the Official Price' — is the primary global benchmark for base metals including copper, aluminium, nickel, zinc, lead, and tin. Per the LME Benchmark Administration Definitions document, the Official Settlement Price 'reflects the USD value of one metric tonne of the relevant metal for the relevant Prompt Date, where the metal must comply with the requirements of the applicable LME contract specification.'
Benchmark Price (LME Official Settlement Price)
Based on: LME Official Prices Benchmark Statement (lme.com)
LME Benchmark Administration — Definitions document (lme.com)
LME Insight — How Are LME Reference Prices Used in Physical Metals Contracts (lme.com)
Sale price (in the reporting currency, per MT of contained payable metal) at which gross margin equals zero. Computed as total_landed_cost ÷ (contained_mt × payable_pct). Useful as a floor when negotiating buyer-side QP.
Sale price at which gross margin equals zero — i.e., revenue exactly covers total landed cost. Below breakeven the trade loses money; above breakeven it is profitable.
Standard finance concept; references: CFA Institute and IFRS profitability metrics
China Import Parity, also called the SHFE-LME arb, is the calculation of whether importing a base metal into China from the international (LME) market is profitable. The formula compares the landed cost in China against the SHFE domestic price: SHFE price (RMB/t including 13% VAT) versus (LME price USD/t + freight + insurance + financing + import VAT + tariff) converted at the USD/CNY rate. When SHFE trades at a premium to landed LME (positive arb), Chinese importers profit by bringing metal in; when SHFE trades at a discount (negative arb), imports are unprofitable and Chinese stocks tend to be exported via bonded warehouses or held in Shanghai bonded zones. Traders monitor the arb daily as a key indicator of physical flow direction between the West and China; SHFE-LME copper, aluminium and zinc spreads are the most followed.
China Import Parity (SHFE-LME arbitrage window)
Based on: Shanghai Futures Exchange — Trading Rules and Contract Specs (shfe.com.cn)
PRC General Administration of Customs — Tariff and VAT schedules.
Mass of payable target metal physically present in a lot, computed as material_mt × dry_mass_fraction × assay_pct. Distinguished from gross material mass (which includes moisture and gangue) and from payable metal (contained × payable %).
Grade-dependent multiplier inside every HPM formula that converts an HMA (metal-price reference) into an ore or intermediate-product price. Typical CF values under KEPMEN ESDM 144/2026: nickel ore CF = 30% at 1.6% Ni base grade, sliding ±1% for every 0.1% deviation in nickel content; iron in laterite ore CF = 30% only if %Fe ≤ 35%; cobalt in nickel ore CF = 30% only if %Co ≥ 0.05%; chromium in nickel ore CF = 10% with no grade threshold; NPI CF = 85%; ferronickel CF = 95%; nickel matte CF = 78% of combined Ni+Co. The 2026 revision also adds a (1 − MC) moisture multiplier so wet-metric-tonne inputs are automatically converted to dry-tonne equivalent value. CF is the single lever the government uses to encourage or discourage exports of specific ore grades.
Corrective Factor / Faktor Koreksi (Indonesian HPM Formulas)
KEPMEN ESDM 144.K/MB.01/MEM.B/2026 — Lampiran I (Formula HPM Bijih Nikel, MHP, MSP, NMS, NPI, Feronikel)
Sum of import duty, VAT/GST, customs brokerage and other border charges in the TCO model. Calculated on the WTO Customs Valuation base (transaction value, plus freight/insurance for CIF-based valuation jurisdictions).
A discount is a negative price differential whereby physical metal trades below the LME benchmark price, reflecting inferior quality, inconvenient location, off-specification chemistry, or market oversupply. Off-warrant metal (not held in an LME-approved warehouse) or metal from non-LME-approved brands may trade at a discount, as buyers require compensation for the additional cost or uncertainty of verifying quality. The LME Special Contract Rules define the minimum quality standard above which no discount is applied; material failing to meet Grade A specification is excluded from warranting and subject to negotiated discounts.
LME Warrants page (lme.com — quality guarantee function of warrants)
The European Duty Paid Premium (also called Rotterdam Duty Paid or DP premium) is the physical-delivery premium added to the LME cash price for primary aluminium or copper sold in-warehouse Rotterdam or other European duty-paid locations, where any applicable EU import duty has already been paid. It is distinct from the Duty Unpaid (DU) premium, which applies to metal still in bonded warehouses pre-duty. EU import duty on primary aluminium ingot (CN code 7601.10) is 6% for third-country origin; primary copper cathode (CN 7403) is duty-free under most-favoured-nation. Fastmarkets and S&P Global Platts publish weekly assessments for P1020A Rotterdam Duty Paid in-warehouse and Duty Unpaid in-warehouse. The DP-DU spread effectively quantifies the EU duty pass-through cost on each metal shipment.
European Duty Paid Premium (aluminium / copper)
Based on: European Commission — TARIC database (taric.ec.europa.eu)
CME Group — European Aluminium Premium Duty Paid Futures (EDP)
Anticipated sales-side proceeds: contained_mt × payable_pct × sale_price (with buyer-side QP and sale Incoterms applied), net of sale-side TC/RC if any. Recognised under IFRS 15 when control of the goods transfers to the buyer.
Sale price minus total landed cost, expressed in $/MT or as a % of sale. The single most-watched profitability metric for a physical metals trade.
IFRS Foundation — financial reporting standards
Expected revenue − total landed cost. Margin percent = gross margin ÷ revenue. Sign and magnitude drive the TCO deal-screening decision. Distinct from operating or EBITDA margin (which subtract overheads not captured in TCO).
Government-set reference price for Indonesian thermal coal, published twice monthly by Kementerian ESDM alongside HMA. HBA is calculated from a basket of four internationally quoted coal indices (Platts Kalimantan 5900, Argus/McCloskey NEX, GlobalCOAL NEWC and Indonesian Coal Index) at the standard reference specification of 6,322 kcal/kg GAR, 8% total moisture, 15% ash and 0.8% sulphur. Producers apply HBA to calculate royalty and levy for domestic coal sales; four additional HBA grades (HBA I, HBA II, HBA III and non-thermal coking) cover other calorific values. HBA is the coal analogue of HMA/HPM in the metal-mineral regime.
Harga Batubara Acuan — Indonesian Reference Coal Price
Kementerian ESDM Republik Indonesia — KEPMEN 41.K/MB.01/MEM.B/2022 and successors
The use of derivative instruments — primarily futures and options — to offset the price risk inherent in physical commodity positions. A copper miner with future production sells LME copper futures to lock in a sale price; a consumer with future requirements buys futures to cap purchase costs. The LME provides standardised, exchange-traded futures and options for base metals; the COMEX division of CME Group provides futures contracts for copper in the US. Hedge accounting treatment under IFRS 9 and US GAAP requires formal documentation of hedge relationships and effectiveness testing.
Based on: LME Copper Contract Specifications (lme.com — physically-settled futures with daily settlement)
CME Group COMEX Copper Futures product information (cmegroup.com)
LME Benchmark Statement — Official Settlement Prices used in OTC physical contract settlement
Periodic reference price for metallic minerals published by the Indonesian Ministry of Energy and Mineral Resources (Kementerian ESDM) and used as the input to HPM (Harga Patokan Mineral) formulas. Since 26 February 2025 HMA is issued twice a month — Periode Pertama and Periode Kedua — as separate KEPMEN Menteri ESDM decrees (previously it was monthly). HMA covers 12 metals: nickel, cobalt, lead, zinc, aluminium, copper, gold, silver, manganese, iron ore (laterite, hematite, magnetite), chromium ore and titanium concentrate. Prices are USD per tonne (or per troy oz for gold and silver), derived from LME/LBMA and international benchmarks with defined lookback windows. Only the latest table is published on minerba.esdm.go.id/harga_acuan; archive is available via decree number.
Harga Mineral Acuan — Indonesian Reference Metal Price
Kementerian ESDM Republik Indonesia — Direktorat Jenderal Mineral dan Batubara
KEPMEN ESDM 144.K/MB.01/MEM.B/2026, jdih.esdm.go.id.
Government-set benchmark selling price (in USD) that Indonesian mineral producers must use as the minimum floor for royalty, iuran produksi and export levy calculations. HPM is calculated per metal/product from a formula that plugs in the current HMA (Harga Mineral Acuan) and applies a Corrective Factor (CF) tied to grade and moisture content. Since KEPMEN ESDM 144/2026 (effective 15 April 2026) the formulas cover 19 metal-mineral commodities: nickel (ore, MHP, MSP, NMS, NPI, ferronickel, ingot, matte), cobalt (ore, ingot, concentrate, sulfide), lead (ore, concentrate, bullion, ingot), zinc (ore, concentrate, oxide), bauxite (ore, ingot, CGA, SGA), iron (ore, sand, pellet, sponge, pig), gold, silver, tin ingot, copper (ore, concentrate, metal), manganese (ore, concentrate), chromium (ore, concentrate) and titanium concentrate. Actual physical sales typically trade at HPM plus a market premium; HPM sets the floor for state revenue, not the ceiling for trade. Fastmarkets has explicitly clarified that its Indonesia nickel-ore assessments now include the government-set HPM benchmark alongside spot market prices.
Harga Patokan Mineral — Indonesian Reference Selling Price
Kementerian ESDM Republik Indonesia — KEPMEN ESDM No. 144.K/MB.01/MEM.B/2026, ; minerba.esdm.go.id/harga_acuan
Fastmarkets — 'Fastmarkets clarifies inclusion of government-set benchmark pricing in Indonesia nickel ore assessment' (2026).
Discount rate at which the net present value of a project's cash flows equals zero. Used to compare investments; project IRR > WACC implies value creation.
CFA Institute — Discounted Cash Flow Applications
The LBMA Gold Price and LBMA Silver Price are the global benchmark prices for unallocated gold and silver delivered in London, administered independently by ICE Benchmark Administration (IBA). Each price is determined twice daily (gold: 10:30 and 15:00 London time; silver: 12:00) via an electronic auction on IBA's platform, running in 30-second rounds until buy and sell orders are balanced within an imbalance threshold (normally 10,000 oz for gold). The final price is published in USD per troy ounce and is the standard reference for LBMA Good Delivery bar transactions, mine offtake agreements, and precious metals derivatives globally.
Based on: LBMA Gold Price page (lbma.org.uk)
ICE Benchmark Administration — LBMA Gold and Silver Price description (
Sum of ocean/road/rail freight, port charges, inland handling, warehousing, demurrage and similar movement-related costs in the TCO model. Allocated to buyer or seller based on the chosen Incoterms 2020 rule.
A long-term (annual or multi-year) supply contract commits buyer and seller to defined delivery volumes over an extended period, with pricing typically referenced to a benchmark (e.g., LME Official Settlement Price) plus negotiated TC/RC and premiums, renegotiated periodically. A spot transaction is a single, immediate purchase or sale for prompt delivery at the prevailing market price. LME futures prices serve as the reference benchmark for both types under the pricing mechanism described in the LME Insight note on physical metals contracts, which shows how LME prices are embedded throughout the concentrate-to-cathode value chain.
Based on: LME Insight — How Are LME Reference Prices Used in Physical Metals Contracts (lme.com)
LME Official Prices Benchmark Statement (lme.com)
Quotational Period basis where the reference price is the monthly average of the calendar month before shipment. Used as 'pre-pricing': buyer/seller lock the price index before the goods leave origin, transferring forward-curve risk to the counterparty. Less common than M, M+1 or MAMA; often combined with a QP option clause.
Cost line in TCO showing the gross paid-for value of metal contained × benchmark price (with QP applied), net of TC/RC/PP. Largest component of total landed cost for refined metal and concentrate trade.
The US Midwest Premium is a physical-delivery aluminium premium added to the LME cash settlement price to arrive at the all-in price for aluminium delivered into Midwest US warehouses (Chicago, Detroit). It compensates for freight, insurance, financing and warehouse handling between LME shipment points and US consuming locations. The benchmark is published by Platts (S&P Global Commodity Insights) as the Platts US Midwest Transaction Aluminum Premium and by Fastmarkets as the Aluminium P1020A premium, Midwest US. CME Group lists a cash-settled Aluminum MW US Transaction Premium Futures contract (symbol AUP) which settles against the Platts assessment, providing a hedging instrument for premium exposure independent of the LME aluminium price.
Based on: CME Group — Aluminum MW US Transaction Premium Platts Futures contract specs (
S&P Global Platts — Methodology and Specifications Guide: Non-Ferrous Metals.
A Mill Test Certificate is a quality assurance document issued by a metal manufacturer or mill confirming that a delivered product meets specified chemical composition and mechanical property requirements, with results traceable to a specific production batch (heat number). The LBMA Sampling and Assaying chapter notes that assay companies issue a 'certificate of analysis' detailing the purity and composition of a precious metal sample, which is 'essential for ensuring transparency and accuracy in transactions.' EN 10204 Type 3.1 MTCs, validated by the manufacturer's own inspection authority, are the standard form required for most LME-warranted and exchange-deliverable metals.
LME Rulebook Part 6 — Certificate of Analysis (eCOA) requirements for warranting (lme.com, Appendix 10)
EN 1978:2022 (CEN) — cathode inspection documentation provisions
N-day average cash settlement (QP basis)
QP variant where settlement is the arithmetic average of LME Cash Settlement prices over N consecutive business days around an agreed pricing date (e.g. 5-day, 10-day, 20-day average). Smooths out single-day volatility while still anchoring to a discrete pricing window rather than a full calendar month.
Concentrate payable metal value after TC/RC, penalties, and price participation are deducted. The "material" portion of total landed cost, before logistics and customs.
Standard smelter contract metric; references: ICSG concentrate pricing
A long-term contract between a mining producer and a buyer (offtaker) committing the buyer to purchase a specified volume or percentage of future production at agreed pricing terms. Offtake agreements are typically negotiated before or during mine construction to secure revenue certainty and facilitate project financing. Pricing is usually expressed as a formula referencing the LME benchmark price (or LBMA Gold Price for gold) plus or minus negotiated premiums and TC/RC deductions. Offtake terms covering concentrate, cathode, or doré are central to the commercial structure of most large mining projects.
Based on: LME Insight — How Are LME Reference Prices Used in Physical Metals Contracts (lme.com — concentrate and cathode contract pricing structures)
SEC Regulation S-K Item 1300 guidance (marketing modifying factors)
Open interest is the total number of outstanding futures or options contracts that have not been settled, offset by an opposing trade, or exercised. It is reported per contract month and aggregated by the exchange after each trading day. Open interest rises when a new buyer and new seller open positions; it falls when existing positions are closed. Unlike volume (which counts all trades in a day), open interest measures the stock of outstanding commitments. Combined with volume and price, open interest is a standard indicator of market participation, liquidity and conviction in a price trend. CFTC publishes Commitments of Traders (COT) reports weekly disaggregating open interest by trader category (Producer/Merchant, Swap Dealer, Managed Money, Other Reportables) for COMEX gold, silver, copper and other commodities.
Based on: CFTC — Commitments of Traders explanatory notes (
Trading of financial instruments directly between two counterparties without a centralised exchange. Common in FX, precious metals bullion (LBMA loco-London market), swaps, forwards, and unlisted equities. OTC markets offer flexibility on trade size, tenor, and terms but historically less pre-trade transparency and higher counterparty risk than exchange-traded venues. Post-2008 reforms (Dodd-Frank, EMIR) require standardised OTC derivatives to be centrally cleared and reported.
Contained metal × payable percent × benchmark price (with QP applied). The gross commercial value before TC/RC and penalties.
A physical premium is the differential paid above (or below) the LME benchmark price for physical metal delivered to a specific location, in a specific form, and at a specific time. Premiums reflect regional supply-demand balance, freight costs, duty, and local market conditions. The LME has formalised certain premiums as exchange-traded contracts (e.g., LME Aluminium US Premium, LME Aluminium West-Europe Premium), which are listed as part of the LME Official Prices Benchmark Family. Physical copper premiums are typically quoted as '$/tonne CIF [destination] over LME cash.'
Based on: LME Official Prices Benchmark Statement (lme.com — aluminium premium contracts listed)
Fastmarkets copper premium assessment specifications (fastmarkets.com)
Smelter/refiner clause where, above a threshold concentrate benchmark price, the smelter shares a fixed percentage of the additional metal value with the miner (typically 8–10% above a baseline).
International Copper Study Group — concentrate commercial terms
Unit in which a metal price is quoted (e.g., USD/MT, USD/lb, USD/troy oz, USD/MTU). Different metals use different conventions: base metals in USD/MT, precious in USD/troy oz, ferro-alloys in USD/MTU.
Method used to convert a benchmark reference price into the invoice price for a specific shipment. Common types: M-average (month of shipment), MAMA (month after month of arrival), fixed price, formula price.
Industry concept; primary references: LME contract specifications and CME spec sheets
Number of months between physical shipment and the pricing reference month used for settlement. Example: M+1 = price is the monthly average of the month after shipment.
London Metal Exchange — pricing terminology
Contractual right granted to buyer or seller to declare, within an agreed window, the specific QP basis or pricing day(s) to be used for settlement. Common forms: buyer's option, seller's option, fix-by-date. Carries optionality value priced into the premium/discount.
Period over which the reference (benchmark) price is averaged to settle a metals contract. Common QP bases: month of shipment (M), month after shipment (M+1), month after month of arrival (MAMA), month before shipment (M-1, pre-pricing), single declared day cash settlement, or average of N days cash settlement around an agreed pricing date. The QP and its basis are fixed in the sales contract.
London Metal Exchange — contract pricing conventions
The Rotterdam premium is the differential above the LME Official Settlement Price for Grade A copper cathode held in-warehouse or delivered to Rotterdam, a major European metals distribution hub. It reflects European supply-demand dynamics, LME warehouse queue conditions, and regional freight costs. Rotterdam is one of the most liquid locations in the LME warehouse network; physical copper premiums there are assessed by Fastmarkets and other price reporting agencies on a daily basis for in-warehouse Rotterdam material conforming to LME Grade A specifications.
Rotterdam Physical Premium (Copper ex-Warehouse)
Based on: Fastmarkets copper premium assessment specifications (fastmarkets.com)
LME Copper Contract Specifications (lme.com — warehouse network)
LME Policy on the Approval and Operation of Warehouses (lme.com)
The Shanghai premium is the differential paid above the LME Official Settlement Price for Grade A copper cathode delivered CIF (Cost, Insurance and Freight) to Shanghai, China, reflecting import duty, VAT, freight, and the tightness of China's physical copper market. It is one of the most widely tracked physical copper premiums globally and is assessed and published daily by price reporting agencies. Fastmarkets specifies the quality basis as 'Grade A cathode 99.9935% min copper conforming to LME specifications BS EN 1978:1998–Cu-CATH-1' for its Shanghai CIF premium assessment (MB-CU-0405).
Shanghai Physical Premium (CIF Copper Cathode)
Based on: Fastmarkets copper premium assessment specifications (fastmarkets.com, MB-CU-0405 and related assessments)
LME Copper Contract Specifications (lme.com)
For a single physical trade: ((Sale − Total landed cost) / Total landed cost) × (365 / capital-tied days). Approximates the annualised return on a one-shot transaction.
Industry shorthand; primary reference: CFA Institute time-value-of-money materials
Annualised internal rate of return computed from a single-period TCO cash flow: ((1 + margin_pct) ^ (365 / hold_days)) − 1. Conservative proxy for true IRR; ignores intra-period cash flows and reinvestment. Used to compare deals with different hold durations on a like-for-like basis.
QP variant where settlement uses the LME Cash Settlement price of one declared business day (often the day of B/L, day of arrival, or a day named by the buyer or seller under a QP option). Eliminates monthly averaging; price is fully discovered on a single trading day.
Cost or income of rolling a hedge along the forward curve. In contango (forward > spot), the hedger loses on the roll; in backwardation (forward < spot), the hedger gains.
Sum of net material cost + logistics + customs + warehouse + financing + risk + ESG + commercial costs at destination. The complete "landed" cost basis for margin and breakeven analysis.
Industry term; references: APICS/CSCMP supply chain definitions
UCS — Unknown Cash Settlement (Unfixed QP)
Pricing arrangement where the LME (or other reference) cash settlement day used to price the lot is NOT fixed at contract signing — one party (buyer or seller, depending on the contract) holds the right to declare the specific pricing day during an agreed declaration window. The QP basis itself remains 'one day cash settle', but the day is unknown until declared. Distinct from M, M+1, MAMA or M-1 (where the averaging window is fixed in advance) and from N-day average (where the window is fixed but multi-day). Often combined with a single-day cash settle basis and a 5-30 day declaration window after B/L or after arrival.
Unknown Cash Settlement / Unfixed Quotational Period
State-published monthly benchmark used as the royalty and duty base for mineral ore sales in India. The Indian Bureau of Mines (IBM), under the Ministry of Mines, computes ASP for each major mineral (iron ore, chromite, manganese, bauxite, limestone, etc.) from ex-mine sale prices reported by lessees under the Mineral Conservation and Development Rules (MCDR) 2017. Iron ore ASP is published grade-wise (lumps ≥65% Fe, fines 62-65% Fe, etc.) and state-wise (Odisha, Karnataka, Jharkhand, Chhattisgarh) and became controversial after CAG audits (2015, 2022) found that discrepancies between IBM ASP and actual FoB export realisations caused significant royalty leakage for the Government of India. ASP is the primary benchmark for section 9 royalty of the Mines and Minerals (Development and Regulation) Act 1957.
Indian Bureau of Mines — Average Sale Price
Indian Bureau of Mines — Average Sale Price monthly bulletins
Comptroller and Auditor General of India — Report No. 6 of 2022 (Assessment of Assessment Levy of Royalty on Iron Ore)
Ministry of Mines Government of India — MMDR Act 1957.
Statutory reference price used by Zambia Revenue Authority (ZRA) as the mineral royalty base when actual arm's-length sale price cannot be verified or when related-party transfer pricing is suspected. Norm Value is calculated from LME cash settlement (copper) or Fast Markets / Metal Bulletin quotations (cobalt) minus deemed treatment and refining charges (TC/RC) and freight, applied to the assay-verified metal content of the shipment. It anchors the sliding-scale royalty rates in the Mines and Minerals Development Act 2015 (Zambia): copper royalty ranges from 5.5% at LME <US$4,500/t to 10% at LME ≥US$9,000/t. Central to Zambia's transfer-pricing enforcement — mining operators (First Quantum, Vedanta KCM, Barrick Lumwana, Mopani/ZCCM-IH) must justify any material deviation from Norm Value.
Zambia Norm Value — Statutory Reference Price for Copper & Cobalt
Zambia Revenue Authority — Mineral Royalty Leaflet 2021
Mines and Minerals Development Act No. 11 of 2015 (Zambia)
Ministry of Mines and Minerals Development of Zambia.
Chile's ad valorem plus profit-based mining royalty in force since 1 January 2024 following Law No. 21.591 (August 2023). RIOMA replaces the earlier Impuesto Específico a la Actividad Minera (IEAM) with a two-part structure: (1) a flat 1% ad valorem levy on copper sales value when annual production exceeds 50,000 tonnes fine copper, and (2) a progressive mining margin component of 8-26% on operating margin, calibrated to the LME copper price ladder. The 1% ad valorem is anchored to the London Metal Exchange copper cash settlement average for the sales period as the primary reference price — Chilean state-owned Codelco and private-sector Antofagasta, BHP Escondida, Freeport El Abra all remit under RIOMA. Combined effective take (RIOMA + corporate tax + Codelco Ley 13.196) is capped at 46.5% at LME >US$4/lb.
Royalty on Mining Activity — Chile (Royalty a la Actividad Minera)
Servicio de Impuestos Internos Chile — Ley 21.591 sobre royalty minero, sii.cl
Ministerio de Hacienda Chile — Reforma royalty minero 2023
Ernst & Young — Chile New Mining Royalty Alert (2023)
Sliding-scale ad valorem royalty rates in Queensland and Western Australia that step up with the reference commodity price. Queensland's progressive coal royalty (from July 2022) has seven bands from 7% at <A$100/t to 40% at >A$300/t, using benchmark thermal coal prices (Newcastle globalCOAL) as the reference. WA iron ore royalty is a fixed 7.5% ad valorem on fine ore and 5% on lumps but with escalator triggers tied to Platts IODEX 62% Fe CFR North China. WA also uses royalty bands for critical minerals: lithium 5% ad valorem, nickel 2.5%, and cobalt tied to Fast Markets. These band structures make Australia's mining fiscal take highly price-sensitive — record coal royalties (A$15+ billion FY23) came from the top bands during the 2022-23 energy crisis.
Australia Royalty Price Bands (Queensland & Western Australia)
Queensland Treasury — Royalty Rates for Coal
Government of Western Australia Department of Mines Industry Regulation and Safety — Royalty Rates Schedule
Ad valorem mining tax in Kazakhstan under the Tax Code Chapter 76-80 (Article 746). MET applies to each unit of extracted taxable mineral, calculated as: MET base × world average price × rate. The world average price benchmark is compiled by the Ministry of Finance from major international exchanges — LME cash settlement (copper 5.7%, zinc 7%, lead 8%, aluminium 0.25%), LBMA gold PM fix (5%) and silver (5%), and quoted specialty prices for rare earths and uranium. Rates and world average price tables are published quarterly in the Kazakhstan Ministry of Finance orders. MET is Kazakhstan's largest single mineral fiscal revenue source (Kazakhmys, Kazzinc, KazMinerals, Kazatomprom uranium, Solidcore Resources gold all pay MET). Since 2023 Kazakhstan has periodically increased MET on strategic minerals (uranium tiered 6-18%, tungsten 5%) to redirect export revenue.
Kazakhstan Mineral Extraction Tax (Налог на добычу полезных ископаемых)
Kazakhstan Tax Code 2018 (with 2023-2026 amendments) Chapter 46
Ministry of Finance of Kazakhstan — MET quarterly reference price orders; (MET regulations).
China's state-blessed rare earth reference price index, launched 12 January 2026 by the Baotou Rare Earth Products Exchange (包头稀土产品交易所) with National Development and Reform Commission (NDRC) and Ministry of Industry and Information Technology (MIIT) endorsement. Baotou (Inner Mongolia) is the world's rare earth capital — over 40% of global reserves and processing capacity. The index publishes daily physical settlement prices for 17 individual rare earth oxides (Nd, Pr, Dy, Tb, Sm, Eu, Gd, Ho, Er, Tm, Yb, Lu, Ce, La, Y, Sc, Pm) plus critical alloys (NdFeB, SmCo) in RMB/tonne. The index is used by China Northern Rare Earth (SHA:600111), China Rare Earth Holdings (HKG:0769), Lynas Rare Earths (Malaysia refining), and increasingly by Western defense procurement (US DFC, DOD stockpile). Beijing's export controls on Dy, Tb, W, Sm, Gd, Yb (April 2025) made Baotou the de-facto global price setter.
Baotou Rare Earth Products Trading Platform Price Index
Baotou Rare Earth Products Exchange, reht.com
National Development and Reform Commission of China (NDRC)
Ministry of Industry and Information Technology (MIIT)
China Rare Earth Industry Association, ac-rei.org.cn.
Democratic Republic of the Congo strategic minerals market regulator, established by Presidential Ordinance No. 24/018 (13 February 2024), tasked with regulating cobalt (and by extension all Category-A strategic minerals) exports, prices and stockpiles. ARECOMS operates a monthly Reference Selling Price (Prix de Vente de Référence) for DRC cobalt hydroxide FOB Lobito/Dar es Salaam, calibrated against Fastmarkets Standard-Grade Cobalt and Metal Bulletin cobalt hydroxide payables. The DRC produces ~70% of global mined cobalt (Glencore Mutanda/KCC, CMOC Tenke Fungurume, Eurasian Resources Metalkol RTR), and ARECOMS gained global visibility with its February 2025 four-month cobalt export moratorium, extended in June 2025 and October 2025, which drove Fastmarkets cobalt Std grade from US$10/lb to over US$32/lb. Since November 2025 ARECOMS has run cobalt export quotas keyed to global demand forecasts published by the Cobalt Institute.
Autorité de Régulation et de Contrôle des Marchés Stratégiques — DRC Cobalt Regulator
Autorité de Régulation et de Contrôle des Marchés Stratégiques (ARECOMS) — Presidential Ordinance 24/018 (2024)
Ministry of Mines Democratic Republic of the Congo, mines-rdc.cd
Cobalt Institute — Cobalt Market Report 2024
Fastmarkets Cobalt Standard Grade Assessments.
Statutory reference price used by the Philippines Bureau of Internal Revenue (BIR) and Mines and Geosciences Bureau (MGB) to compute excise tax (4% ad valorem under TRAIN Law 2017) and mineral royalty (5% inside declared mineral reservations, MPSA agreements). MGB compiles monthly reference prices from LME cash settlement (copper, nickel, zinc, lead), LBMA gold PM fix, and Platts IODEX for iron ore, published in the MGB Mineral Industry Statistics annual and monthly bulletins. Applied to Nickel Asia (Taganito, Rio Tuba, Cagdianao — world's #2 nickel ore exporter after Indonesia), OceanaGold Didipio (copper-gold), Philex Mining (Padcal). Philippines DENR-MGB reference-price methodology is under review as of 2026 following the People's Mining Bill and the proposed Mineral Fiscal Regime Act which would move to Indonesia-style HPM formula pricing.
Philippines Mines and Geosciences Bureau Reference Price
Mines and Geosciences Bureau of the Philippines — Mineral Industry Statistics 2021-2023
Department of Environment and Natural Resources (DENR)
Bureau of Internal Revenue Philippines — TRAIN Law RA 10963 (2017)
Philippine Mining Act of 1995 (RA 7942).
An option whose payoff is based on the average of the underlying price over a specified period rather than the spot price at expiry, which better matches the pricing exposure of physical metal traders who transact at monthly average prices. The LME offers Traded Average Price Options (TAPOs), which are monthly Asian-style options cash-settled against the monthly average of Official Settlement Prices.
Asian Option / Average Price Option (APO) — LME TAPO
LME Traded Average Price Options (TAPO) product specifications
LME Rulebook Part 1 definition of 'Client Traded Average Price Option'
An OTC derivative under which two parties agree to exchange the difference between the opening and closing price of an underlying asset (e.g., a metal price index) over the contract period, without physical delivery. CFDs are classified as financial instruments under MiFID II (Annex I, Section C(9)). IOSCO has issued guidance on retail CFD product risks.
EU MiFID II Directive 2014/65/EU, Annex I Section C(9) (list of financial instruments)
IOSCO Final Report on Retail OTC Leveraged Products (2018)
An OTC derivative in which one party pays a fixed price per unit of a commodity and receives a floating price (typically a commodity reference price index) over a specified calculation period, with net cash settlement on each payment date. The 2005 ISDA Commodity Definitions govern the terms of privately negotiated commodity swaps, basis swaps, caps, floors, and swaptions.
2005 ISDA Commodity Definitions (International Swaps and Derivatives Association, Inc.), Section 6.1 (Floating Amount calculation); isda.org
US central securities depository operated by DTCC (Depository Trust & Clearing Corporation). Provides book-entry settlement and custody for the vast majority of US-listed equities, corporate bonds, municipal bonds, and money market instruments. Acts as the nominee owner (Cede & Co.) for securities held on behalf of participant brokers and banks, enabling electronic settlement without physical certificate movement.
Pooled investment vehicle whose shares trade on a stock exchange throughout the day at market-determined prices, typically tracking an index, commodity, sector, or asset basket. Combines features of mutual funds (diversified holdings, professional management) and stocks (intraday liquidity, transparent pricing). Metals ETFs (e.g., SPDR Gold Shares, iShares Silver Trust) hold physical bullion and are common wrappers used as reference points by tokenized-metal indices.
Physical metal leasing involves lending gold or silver from a central bank or bullion bank to a borrower (typically a refiner or mine) in exchange for a lease rate (the return on lending metal). GOFO (Gold Forward Offered Rate) was the benchmark annualised interest rate at which LBMA market-making members were willing to lend gold on a swap against US dollars. GOFO was discontinued on 30 January 2015 following benchmark reform.
Metal Leasing / Gold Forward Offered Rate (GOFO)
LBMA GOFO historical data and market notices
LBMA announcement of GOFO discontinuation (30 January 2015); lbma.org.uk
An option grants the buyer the right, but not the obligation, to buy (call) or sell (put) a specified quantity of a metal at a fixed strike price on or before the expiry date, in exchange for a premium paid upfront. CME/COMEX Gold options are American-style (exercisable any time before expiry) on 100-troy-ounce Gold futures. LME options on metals futures are traded on the exchange.
CME Group COMEX Gold Option contract specifications (Chapter 1008 COMEX Rulebook)
LME traded options product specifications
2005 ISDA Commodity Definitions (option definitions)
Family of exchange-traded funds first launched in 1993 by State Street Global Advisors, originally tracking the S&P 500 (ticker SPY). The SPDR brand now covers over 140 ETFs including SPDR Gold Shares (GLD) — the largest physically-backed gold ETF, holding over 900 tonnes of allocated LBMA Good Delivery gold at HSBC London vaults. SPDR gold and silver funds are widely used as wrapper proxies in tokenized-metal-index comparability analysis.
Commodity-backed lending structures in which financing is secured against physical inventories or future receivables from commodity sales. Pre-export finance (PXF) involves a lender advancing funds against a borrower's contractual obligation to deliver and receive payment for future commodity exports. A borrowing base facility is revolving credit secured against a constantly changing pool of commodity inventories and receivables.
Structured Trade Finance — Pre-Export Finance / Borrowing Base
ICC Banking Commission Guidelines on Trade Finance
ICC Uniform Rules for Demand Guarantees (URDG 758)
A gold-industry cost metric introduced by the World Gold Council in 2013 that includes cash costs, sustaining capital, corporate general and administrative costs, reclamation and remediation accretion, and exploration expenses required to sustain current operations; expressed in USD per ounce of gold equivalent sold. Now broadly applied to silver, copper, and other metals.
World Gold Council, 'Gold All-In Cost Metrics — Gold Industry Guidance' (2013, updated 2018), gold.org.
Revenue derived from metals produced in addition to the primary metal during mining or processing (e.g. gold, silver, and molybdenum from copper mining), deducted from total cash costs to produce net C1 or AISC metrics; byproduct credits can materially reduce reported net costs and create cross-commodity price sensitivity.
Byproduct Credit (Mining Cost Accounting)
Wood Mackenzie, 'Copper Cost Methodology'
World Gold Council, 'Gold All-In Cost Metrics Guidance' (2013).
The direct cost of producing and delivering copper cathode to market including mining, milling, smelting, refining, and transport, net of by-product credits; introduced by Brook Hunt (Wood Mackenzie) as an industry benchmark for copper producer cost analysis. C1 excludes sustaining capital, depreciation, and royalties.
Wood Mackenzie / Brook Hunt, 'Copper Cost Methodology', woodmac.com
CRU Group, 'Copper Cost Service', crugroup.com.
Valuation method that estimates intrinsic value by forecasting future cash flows and discounting them back at the cost of capital. For a mining asset: build a year-by-year P&L from a production schedule (tonnes × grade × recovery × price − opex − sustaining capex − tax − working-capital change), discount the free cash flow stream, sum to NPV, add terminal/salvage value. DCF is the most rigorous valuation when reserves and operating parameters are well-defined (PFS / DFS / NI 43-101 with reserves). Sensitivity tables (price ±15 %, opex ±10 %, discount rate ±2pp) are mandatory for credible DCF outputs.
CFA Institute — Equity Asset Valuation (4th ed., ch. 4)
CIM Mineral Project Evaluation Best Practices Guidelines (2019).
Annual percentage rate used to convert future cash flows to present value. Two conventions: (1) real discount rate (CFs in today's purchasing power, inflation stripped); (2) nominal discount rate ≈ real + inflation (CFs include inflation). The Fisher equation: (1 + nominal) = (1 + real) × (1 + inflation). Mining technical reports (NI 43-101, S-K 1300) require disclosure of which convention is used and the rate itself. Sensitivity tables typically show NPV at ±2 percentage-point movements. Discount rates higher than WACC are used for early-stage assets to embed project-specific risk.
NI 43-101 Form F1, Item 22 (Economic Analysis)
Cash-flow proxy: Revenue − COGS − Operating expenses (excl. D&A) − SG&A. Excludes capital structure (interest), tax regime, and non-cash accounting (D&A). Useful for cross-jurisdiction and cross-life-of-mine comparisons. Mining caveat: EBITDA EXCLUDES sustaining capex — which is huge in mining (10–25 % of revenue) — and thus systematically overstates true cash generation. Always pair EBITDA with sustaining-capex disclosure or use Free Cash Flow instead. Note: SEC defines EBITDA as a non-GAAP measure with mandatory reconciliation to net income (Reg G).
Earnings Before Interest, Tax, Depreciation & Amortization
CFA Institute Curriculum — Financial Reporting and Analysis.
Theoretical takeover cost of a business: market value of equity + market value of debt + minorities + preferred stock − cash and marketable securities. EV represents the cost to acquire the operating business free of capital structure. In mining, EV is normalised by EBITDA (multiple) or by reserves (EV/oz reserve, EV/lb-Cu reserve, EV/MT-Fe reserve). EV per ounce of gold reserve typically ranges $50–250/oz for explorers, $250–600/oz for developers, $600–1500/oz for producers, depending on jurisdiction and grade.
EV / EBITDA = (market cap + net debt + minorities − cash) / EBITDA. Capital-structure-neutral valuation multiple. Mining-sector typical ranges at mid-cycle: gold majors 6–10×, mid-tier gold 5–8×, copper majors 5–9×, iron ore majors 4–7×, diversified majors (BHP, Rio, Glencore, Vale) 5–8×, lithium / EV-battery materials 8–15× (premium for growth), uranium / rare earth 10–20× (strategic premium). Multiples compress at top of cycle (10×→4×), expand at bottom (4×→12×). EV/EBITDA is the dominant quick-screen multiple for mining M&A.
Cash flow available to all capital providers after operating expenses, taxes, working capital changes, and capital expenditure. Two flavours: FCFF (to firm, before interest) used with WACC for enterprise value; FCFE (to equity, after interest) used with cost of equity for equity value. Mining-specific definition: FCF = EBITDA − cash taxes − sustaining capex − Δ working capital. FCF margin (FCF / revenue) is the cleanest comparison between miners regardless of capital structure or non-cash accounting (depreciation, impairments). Top quartile gold and copper producers run 25–40 % FCF margins at mid-cycle commodity prices.
Damodaran — Investment Valuation ch. 10.
The average grade of ore delivered to the processing plant, expressed as a percentage, grams per tonne (g/t), or parts per million (ppm) depending on the commodity; combined with mill throughput and metallurgical recovery, head grade determines contained metal production.
SME, 'SME Mining Engineering Handbook' (2011)
Discount rate that makes a project's NPV exactly zero. Solving Σ (FCFₜ / (1+IRR)ᵗ) = CapEx₀ gives the breakeven return of the project. IRR ≥ hurdle rate (WACC) → accept; IRR < hurdle → reject. Pitfalls: (1) projects with non-conventional cash flows (multiple sign changes) can have multiple IRRs; (2) IRR can rank mutually exclusive projects incorrectly versus NPV — always check NPV when ranking; (3) IRR assumes reinvestment at IRR itself, which is unrealistic for high-IRR projects (use Modified IRR or NPV instead). Mining sector typical hurdle IRRs: gold 15–20 %, base metals 12–15 %, iron ore 12 %, lithium/REE 20–25 % (higher risk).
Damodaran — Investment Valuation (3rd ed., ch. 5)
CIM Best Practice Guidelines for Mineral Processing — Economic Analysis (2003).
Sum-of-the-parts valuation of a mining company, calculated as: post-tax NPV of each operating mine + post-tax NPV of development projects + market value of exploration land + cash & marketable securities − total debt − decommissioning liabilities. Mining-equity analysts publish NAV per share in research reports and use it as the anchor for target prices. NAV differs from book value (accounting) because mineral reserves are valued at their forward-cash-flow potential, not historical cost. NAV is the basis for the P/NAV multiple, the dominant valuation metric for primary mining equities.
BMO Capital Markets — Global Metals & Mining Research Methodology
RBC Capital Markets — Precious Metals Valuation Primer
Wood Mackenzie — Mining Asset Valuation methodology notes.
Total interest-bearing debt + capitalised lease obligations − cash − marketable securities. Mining-specific addition: include closure & reclamation liabilities and decommissioning provisions if not separately captured. Net Debt / EBITDA ratio is a key covenant in mining project finance — investment-grade miners target ≤ 2.0×; high-yield 2.0–4.0×; financial distress > 4.0×. Streaming and prepay obligations are debt-like in substance and analysts often add them to net debt (~$ stream commitment ÷ residual life × NPV factor).
S&P Global Ratings — Metals & Mining Criteria.
Sum of all future free cash flows from a project discounted back to today at a chosen discount rate, minus the upfront investment. A positive NPV means the project earns more than the required return; the larger the NPV, the greater the value created. Formula: NPV = Σ (FCFₜ / (1+r)ᵗ) − CapEx₀, where FCFₜ is free cash flow in year t, r is the discount rate, and CapEx₀ is the initial investment. NPV is unit-additive (NPVs of two independent projects add), unlike IRR. In mining, NPV is typically calculated post-tax in real (constant) dollars using a 5–10 % discount rate; the result is highly sensitive to long-term commodity-price assumptions.
Brealey, Myers & Allen — Principles of Corporate Finance (13th ed., ch. 5)
CFA Institute Curriculum, Corporate Finance Level I
SEC S-K 1300 § 229.1304(b)(2) (technical-report disclosures).
Mining-sector valuation multiple: share price ÷ NAV per share. Senior gold producers historically trade at 1.0–1.5× P/NAV; junior developers 0.4–0.8× P/NAV; royalty/streaming companies (Wheaton Precious Metals, Franco-Nevada, Royal Gold) trade at 1.5–2.5× P/NAV reflecting their cash-cost-free model. Base-metal producers cluster around 0.8–1.2× P/NAV. Trading below 1.0× usually signals discount for operational, jurisdictional, or commodity-price risk; trading above 1.0× implies the market believes reserves will be replaced or extended. P/NAV is the mining analogue of P/E in tech and P/B in financials.
CIBC World Markets — Gold Equity Research
BofA Global Research — Metals & Mining sector handbook.
Time required for cumulative cash inflows to equal the initial investment. Simple payback ignores time value of money; discounted payback uses discounted cash flows. For a mine: simple payback = CapEx / (annual after-tax cash flow). Mining-sector targets vary: gold 2.5–4 years, base metals 4–7 years, iron ore 5–8 years, lithium 4–6 years. Payback is a liquidity/risk metric — short payback reduces sovereign and price risk exposure — not a value-creation metric. Use NPV or IRR for value, payback only as a constraint.
KPMG — Mining Project Evaluation Handbook (2022).
Systematic test of how NPV/IRR change when one input is varied while others are held constant. Standard mining sensitivity inputs: commodity price (±20 %), operating cost (±10 %), capital cost (±15 %), discount rate (±2 pp), head grade (±10 %), recovery (±3 pp), and FX rates. Outputs are displayed as a 'tornado chart' ordered by impact. Required by NI 43-101 Form F1 Item 22(c) and SEC S-K 1300 § 229.1304(b)(2)(v). Identifies which variables drive risk and where additional due-diligence effort is best spent.
Sensitivity analysis (mining tornado chart)
CIM Best Practice Guidelines for Mineral Project Evaluation.
The ratio of waste rock (in tonnes or bank cubic metres) that must be removed to expose and mine one tonne of ore in an open-pit mine; a key driver of operating cost and mine scheduling. The economic cut-off strip ratio (breakeven strip ratio) is calculated from ore value, mining costs, and processing economics.
SME, 'SME Mining Engineering Handbook', 3rd ed. (2011), Chapter 10.4
Sustaining capex: spending required to maintain current production capacity — equipment replacement, infrastructure renewal, tailings dam lifts, drilling to convert resource to reserve at current rate. Included in AISC per WGC 2013 Guidance. Growth (expansion) capex: investment expanding capacity, building new mines, processing throughput upgrades. EXCLUDED from AISC; included in AIC (All-in Cost). The split matters for valuation: sustaining capex is mandatory and reduces FCF available to shareholders; growth capex is discretionary and should earn an IRR above WACC. Analysts examine the ratio Sustaining/Total Capex to assess capital discipline.
Sustaining capex vs growth (expansion) capex
World Gold Council — Guidance Note on Non-GAAP Metrics (June 2013, updated 2018)
McKinsey — Mining capex efficiency studies.
Value beyond the explicit forecast period. For mining, mine life is finite (until reserves are depleted), so terminal value is usually limited to: (1) salvage value of equipment minus closure/reclamation liability, often near zero or negative; (2) residual exploration potential outside current reserves, valued by analyst judgment or comparable transactions. For perpetually operating businesses (smelters, refineries, royalty companies), terminal value uses Gordon Growth: TV = FCF_T+1 / (WACC − g). For mines, never assume perpetual growth — physical reserves are the cap.
SRK Consulting — Best Practice in Mining Valuation papers.
Blended after-tax cost of a firm's funding: WACC = (E/V) × Re + (D/V) × Rd × (1−t), where E = equity, D = debt, V = E+D, Re = cost of equity (CAPM: rf + β × ERP), Rd = pre-tax cost of debt, t = marginal tax rate. WACC is the discount rate for risky free-cash-flows to the firm (FCFF) in a DCF. Mining-sector WACCs: large diversified miners 7–9 %, mid-cap single-asset producers 9–12 %, single-project developers 12–18 %, frontier-jurisdiction or lithium/critical-mineral developers 15–25 %. Always real (inflation-stripped) when cash flows are in constant dollars; nominal when cash flows include inflation.
Damodaran — Cost of Capital data sets (annual update for mining industries).
AISC margin = realized average selling price per oz/lb − AISC per oz/lb. Quickest profitability gauge for a single-metal producer: a gold miner with realized price $2,300/oz and AISC $1,400/oz earns a $900/oz AISC margin. AISC margin × ounces sold ≈ free cash flow before growth capex and tax. Producers in the bottom AISC quartile (cost curve) earn outsized margins during high-price cycles and survive low-price cycles where bottom-decile producers operate. Analysts plot AISC margin vs spot price to assess cycle exposure.
AISC margin (price minus AISC, per unit)
S&P Global Commodity Insights cost-curve services.
Continuous equity-issuance programme in which a company sells new shares directly into the open market over time, at prevailing prices, through one or more registered broker-dealers. Common in mid-cap mining and royalty companies needing flexible financing without underwriter discount. Limits in US (Rule 415 shelf): typically 10–20 % of public float per year. Lower transaction cost (1–2 %) than bought-deal placements (3–5 %) or marketed offerings (4–6 %). Filed via base shelf prospectus + prospectus supplement; volume disclosed in quarterly reports.
ATM prospectus filings of mining companies (Pan American Silver, Wheaton, Franco-Nevada).
Futures-price curve where longer-dated contracts are lower than near-dated contracts (downward-sloping curve). Reflects physical scarcity — buyers willing to pay premium for immediate delivery. Strong signal of tight supply: backwardation on LME copper > $30/MT often precedes price rallies. Roll yield is positive for long-only investors (sell high-priced expiring, buy lower-priced next). Common in metals during stockout episodes (LME nickel March 2022, LME aluminium 2024). Term coined by Keynes in 'A Treatise on Money' (1930).
Keynes — A Treatise on Money (1930) ch. 29.
Upfront capital required per annual unit of production capacity. Examples: $/annual-oz-Au, $/annual-tonne-Cu, $/annual-tonne-Li₂CO₃, $/annual-tonne-Fe-ore. Benchmarks (2024 USD): gold mines $1,500–4,000/annual-oz; copper greenfield $14,000–25,000/annual-tonne-Cu; lithium spodumene $20,000–35,000/annual-tonne-LCE; iron ore Pilbara expansion $80–150/annual-tonne. Capital intensity inflates ~5–8 %/yr in real terms (mining-cost inflation). Used in greenfield vs brownfield vs acquisition decisions: if buying existing capacity is cheaper than building, M&A makes sense.
Wood Mackenzie — Mining Capital Intensity Database
Futures-price curve where longer-dated contracts are higher than near-dated contracts (upward-sloping curve). Reflects storage costs + cost of financing + insurance. Typical for storable metals (LME copper, aluminium, zinc) when supply is abundant. Roll yield for long-only investors is negative in contango (they sell low-priced expiring contract and buy higher-priced next contract). Distinguishable from backwardation (downward-sloping curve, scarcity signal). Strong contango on LME often signals stocks are building and price is under near-term pressure.
Polymetallic-mine production normalized to copper. CuEq = Cu + (Mo × Mo_price/Cu_price) + (Au_oz × Au_price/Cu_price × conversion) + ... Used by porphyry-copper producers (First Quantum, Antofagasta, Teck, Freeport-McMoRan) that produce significant by-product moly, gold, silver. CuEq grades reported in NI 43-101 / S-K 1300 must disclose price assumptions and recovery factors used for each contributing metal. Useful for resource-comparison but always check the underlying assumption — high gold price assumptions can flatter CuEq grades materially.
Defense Ordnance Technology Consortium (DOTC)
US Department of Defense consortium operating under Other Transaction Authority (OTA) — a contracting mechanism outside standard Federal Acquisition Regulation processes that allows faster, more flexible awards for prototype development and follow-on production. DOTC funds projects supporting ordnance, energetics, munitions, and related critical materials. Antimony trisulfide is used as a primer compound in small-arms and artillery ammunition, making domestic antimony supply a DOTC scope item. On 28 May 2025 the Department of Defense awarded up to 6.9 million US dollars to Perpetua Resources via DOTC for domestic antimony trisulfide production. DOTC awards typically precede larger scale-up commitments and serve as validation for downstream investors.
US Defense Ordnance Technology Consortium — Other Transaction Authority
Perpetua Resources press release on the 28 May 2025 DOTC award for domestic antimony trisulfide production
Reduction in existing shareholders' ownership percentage when new shares are issued (placement, bought deal, ATM, warrants, options exercised). Junior mining-exploration companies typical dilution: 20–40 % per year during pre-production financing rounds (the 'mining-explorer death spiral' in down-markets). Anti-dilutive metric: per-share metrics (NAV/share, FCF/share, reserve oz/share) — if absolute NAV grows 30 % but share count grows 50 %, NAV/share has decreased. Mining-equity analysts always compare on per-share basis.
CFA Institute curriculum — Equity Asset Valuation
PDAC presentations on Mining Equity Capital.
Direct sale of future production at a fixed price agreed today, settled physical (deliver metal) or financial (cash settle vs benchmark). Distinct from futures (exchange-cleared) and OTC swaps (synthetic). Mining-specific use: project-finance banks typically require 20–40 % of first 3–5 years of production forward-sold to secure debt repayment. Common in lithium and copper project finance 2020–2025. Disclosed under IFRS 9 / ASC 815 derivative accounting if not designated for hedge treatment.
Standardized production unit for polymetallic mines: converts all metals to an equivalent quantity of gold using current or assumed ratios. Formula: GEO = Au_oz + (Ag_oz × Ag_price/Au_price) + (Cu_lb × Cu_price/Au_price) + ... GEO enables apples-to-apples production comparisons across mines with different metal mixes. Watch out: GEO ratios assumed (forward-curve, spot, or company assumption?) — companies sometimes use favorable ratios that flatter production volumes. Always check the basis. Wheaton Precious Metals, Pan American Silver, B2Gold publish GEO production using consistent annual ratios.
Pan American Silver — Annual Information Form
Wheaton Precious Metals — Q-results methodology
Royalty paid on gross revenue without any deductions for smelting, refining, transportation or any operating costs. Most operator-unfriendly royalty structure; rare in modern royalty contracts — most have been converted to NSR. Government royalties in some jurisdictions still operate as gross royalties (e.g. Western Australia state royalty on iron ore is 7.5 % of FOB revenue, structured as a gross royalty). GRR percentages are typically 0.5–3 % because every percentage point is more painful than NSR.
Government of Western Australia — Mining Act
Fraser Institute — Annual Survey of Mining Companies (royalty section).
Forward sales, options or zero-cost collars used by miners to lock in revenues for some portion of future production. Common during project financing (lenders require hedging) or in volatile commodity environments. Hedge ratios: 0–25 % for senior gold miners (most operate fully unhedged), 30–80 % for project-finance copper/lithium projects (lender mandate). Hedge-to-fail risk: if commodity prices rise, hedges create realized losses while spot revenue rises elsewhere — operators with deep hedge books (Barrick pre-2009 had $5B hedge losses) underperform in bull markets. Always disclosed as commodity-price-risk note in 10-K / 20-F.
Big Four mining-sector accounting guides
CFA Institute — Derivatives & Risk Management curriculum.
Exploration and pre-resource properties are valued using comparable-transaction or appraised-value methods, not DCF (no defined reserves to discount). Three common methods: (1) Recent-deal comparison: $/hectare paid for similar concessions in similar jurisdictions; (2) Geoscientific factors method (Kilburn 1990, used in Australia & Canada); (3) Probabilistic value of exploration target (modifying factors applied to inferred geological potential). Disclosed in technical reports under NI 43-101 Item 22 and SEC S-K 1300 § 1304(b)(7) where applicable.
Mineral title (concession / lease) valuation
Kilburn (1990) — Valuation of Mineral Properties
CIM Mineral Property Valuation Standards (CIMVal 2003)
Royalty calculated as a percentage of gross revenue from a mine, less off-site refining, smelting, transportation and insurance costs (the 'smelter return'). Typical NSR rates: 1–4 % for major precious-metal projects, 0.5–2 % for base metals, 1–5 % for critical minerals. Sliding-scale royalties tied to commodity price are common. NSR is in front of operating costs, taxes and capex — paid even when the mine is unprofitable — making it more secure than equity or debt in the cash-flow waterfall. Distinct from GRR (Gross Royalty: % of gross revenue without deductions) and NPI (Net Profit Interest: % of net income).
PDAC presentations on Royalty Structures
Long-term contract obligating buyer to purchase a specified quantity of future production from a seller at a price formula (typically benchmark-indexed). Distinct from sales contracts (single shipment) and forward sales (financial commitment). Off-take is the standard commercial backbone for mining-project debt financing: project lenders typically require 60–100 % of nameplate production locked into off-takes with investment-grade counterparties. Pricing formulas reference benchmark (LME, IODEX, Argus, FastMarkets) plus or minus a fixed differential. Common in lithium, nickel, cobalt, rare earths and aluminium project finance.
Off-take agreement (long-term commodity supply)
Operator receives upfront cash today in exchange for committing to deliver a fixed quantity of metal (or its USD-equivalent) at a future date or schedule. Pricing typically locks the metal at a discount to expected forward curve. Tax-efficient versus a loan (no interest deduction worry), but introduces production-delivery risk for the buyer. Used by Newmont, Glencore, First Quantum and others for mid-life cycle financing. Accounting treatment under IFRS 15 (deferred revenue) and US GAAP ASC 606 affects reported EBITDA.
Big Four audit guidance (Deloitte, EY, KPMG, PwC) — Mining Industry Accounting
Set of forward commodity-price assumptions used in DCF and reserve-economic estimates. Four common decks: (1) Consensus deck — mean of sell-side analyst forecasts (published quarterly by Reuters, Bloomberg, S&P Global); (2) Analyst-specific deck — proprietary forecast from a single bank; (3) Company-internal deck — the operator's own planning assumptions, often disclosed in technical reports; (4) Spot/forward deck — current spot or forward-curve prices for short-horizon analyses. Reserve declarations under SEC S-K 1300 must disclose the deck used and justify long-term assumptions, typically referenced to a multi-year average.
Price deck (consensus / analyst / company / spot)
CRU Group, Wood Mackenzie quarterly consensus reports.
Debt structure in which the lender's recourse is limited to the cash flows and assets of the specific project, not the parent company's broader balance sheet. Senior secured project loans against single mining projects typically: 50–70 % of total capex; tenor matching mine life (often 7–12 years); interest 250–500 bps over benchmark; mandatory hedging of 30–60 % of first 3–5 years of production; debt-service reserve account of 6 months. Common in lithium, copper greenfield and iron-ore projects. Lenders: ECAs (Export Development Canada, EFIC, KfW), commercial-bank syndicates (BNP Paribas, Standard Chartered, Crédit Agricole), DFIs (IFC, EBRD, AfDB).
Project finance — limited or non-recourse
International Finance Corporation — Project Finance in the Extractive Sector handbook
Loan Market Association — Mining Project Finance templates.
Annual change in mineral reserves divided by annual production. RRR > 100 % = mine extending life; RRR < 100 % = depleting. Calculated as: (closing reserves − opening reserves + production) / production. Disclosed in annual reports as a key sustainability metric. Industry context: gold producers struggle to maintain RRR > 100 % long-term (typical 60–90 %); diversified miners (BHP, Rio, Vale) typically 100–130 %; lithium and copper developers often > 200 % during ramp-up. Distinct from oil & gas RRR (which uses 1P/2P reserve categories).
S&P Global — Mining Industry Sustainability Indicators
Primary-silver miners (Pan American, MAG Silver, First Majestic, Hecla, Coeur) report production as AgEq: converts by-product gold, lead, zinc and copper to silver-equivalent at assumed ratios. AgEq = Ag_oz + (Au_oz × Au/Ag ratio) + (Pb_lb × Pb_price/Ag_price) + ... Au/Ag ratio is the most-watched input; gold-silver ratio (currently ~75–85:1) determines whether a silver miner's gold by-product is overstated or understated. AgEq guidance is a non-GAAP measure under SEC Reg G — reconciliation to physical ounces is required.
Contract whereby a financing company (streamer) makes an upfront cash payment to a mining operator in exchange for the right to purchase a percentage of future production at a low ongoing per-unit price (e.g. $400/oz gold, 20 % of spot silver). Streams are typically structured on by-product metals (silver from a copper mine, gold from a lead/zinc mine). Major streamers: Wheaton Precious Metals, Franco-Nevada, Royal Gold, Osisko Gold Royalties. From the operator's view, streams provide non-dilutive capital but transfer commodity-price upside on the streamed metal. Treated as debt-like by credit-rating agencies; reported as deferred revenue / liability under IFRS 15.
Wheaton Precious Metals — Annual Information Form
Moody's — Streaming and Royalty Methodology (2020).
US Export-Import Bank (EXIM) — Critical Mineral Financing
The Export-Import Bank of the United States (EXIM) is the official US export credit agency. In 2022 EXIM established the China and Transformational Exports Program (CTEP), which authorises direct loans, loan guarantees, and insurance for US-origin exports and for select domestic projects in critical technology and critical mineral sectors when necessary to counter competition from strategic rivals. Under CTEP, EXIM has become a primary financier of US critical-mineral projects. On 21 May 2026 EXIM approved a 2.9 billion US dollar direct loan to Perpetua Resources' Stibnite Gold-Antimony Project in Idaho — the largest single EXIM commitment to a US critical mineral asset to date. EXIM disbursements are milestone-contingent and require project completion of construction, environmental, and production benchmarks.
US Export-Import Bank — Critical Mineral Project Financing
US Export-Import Bank official site; — corroborating news of the Perpetua $2.9B loan: CNBC, 21 May 2026; https://www.cnbc.com/2026/05/21/miner-perpetua-resources-secures-2point9-billion-us-loan-for-idaho-gold-antimony-project.html
The point at which total paid losses across all insured events during a policy period reach the aggregate limit stated in the policy, extinguishing further insurer liability for the remainder of that period. Lloyd's policy wordings distinguish aggregate limits from per-occurrence limits; once the aggregate is exhausted, the insured bears all subsequent losses unless reinstatement provisions apply. See Lloyd's policy wording guidance at lloyds.com/conduct-of-business.
An irrevocable and independent written undertaking by a guarantor bank to pay the beneficiary a stated sum upon presentation of a complying demand, without requiring the guarantor to investigate whether the underlying obligation has actually been breached. Demand guarantees are governed by the ICC Uniform Rules for Demand Guarantees, Publication No. 758 (URDG 758, 2010), which establishes rules on issuance, presentation, extend-or-pay demands, and counter-guarantees for international trade transactions including commodity contracts.
ICC URDG 758 (Uniform Rules for Demand Guarantees, ICC Publication No. 758, 2010), iccwbo.org
Composite fidelity and crime insurance policy covering financial institutions against employee dishonesty, in-transit and on-premises loss of cash and securities, forgery and altered instruments, computer crime, and safe deposit box losses. LMA-based wording, typically arranged with primary and excess layers up to USD 1bn+ for global banks. Historical origin: Fidelity & Casualty Company of New York, early 20th century. Standard for banks holding physical bullion or metal warehouse receipts as loan collateral.
American Bankers Association (ABA) 'BBB Wordings' (aba.com)
LMA BBB standard wordings (lmalloyds.com)
Basel Committee 'Operational Risk — Sound Practices'
Coverage for loss of net profit and continuing fixed expenses incurred by an insured following physical damage that interrupts business operations, measured over an indemnity period. BI is triggered by material damage to insured property and is subject to a maximum indemnity period negotiated at inception. Lloyd's market BI wordings are available at lloyds.com.
LMA — Lloyd's Market Association, lmalloyds.com
A licensed insurance entity wholly owned by one or more non-insurance companies to insure or reinsure the risks of its parent(s), enabling direct access to reinsurance markets and retention of underwriting profit. Captives are regulated as insurance entities under the domicile jurisdiction (e.g., Bermuda, Cayman Islands, Vermont) and classified as pure captives, group captives, or rent-a-captives. IRMI's Captive Insurance glossary is available at irmi.com/term/insurance-definitions/captive-insurer.
IRMI — International Risk Management Institute, irmi.com
A Lloyd's market clause (CL380) that imposes a single maximum aggregate recovery for all cargo losses arising from one event or occurrence at any one location, preventing disproportionate accumulation exposure across multiple cargo interests. The limit is declared by the insured and must reflect the maximum foreseeable aggregation of goods at any one location. Reference text at lmalloyds.com.
Insurance arrangement in which two or more insurers share a single risk under one policy pro-rata to agreed shares (e.g., lead 40% / follower 30% / follower 30%). Each insurer is directly liable to the insured only for its share. Distinct from reinsurance (where the primary insurer alone contracts with the insured and then cedes). Common in high-value marine cargo (Cargo Worldwide Limits above USD 500m), specie (bullion), and mining property placements. Governed by broker slip / Lloyd's Market Reform Contract (MRC).
Lloyd's Market Reform Contract (MRC) standard (lloyds.com)
Construction All-Risks (CAR) / Erection All-Risks (EAR)
All-risks property insurance covering physical loss or damage to a construction or erection project (civil works = CAR; mechanical/electrical plant = EAR) during the construction period plus a testing and commissioning phase. IMIA guidelines set standard scope, sub-limits, and exclusions; the policy typically includes two sections — material damage and third-party liability. IMIA working papers are available at imia.com.
IMIA — International Association of Engineering Insurers, imia.com
Cover triggered by the occurrence (or non-occurrence) of a specific defined event, rather than by a physical loss or liability claim — e.g., prize indemnity (hole-in-one, lottery), event cancellation, weather-triggered payouts, deal-contingent M&A insurance, and cash-payments-in-transit covers. In commodities, used for prize/discount promotions tied to metals prices, and for deal-contingent hedge unwinds during M&A. Rated actuarially, not by asset value.
LMA Contingency Class wordings (lmalloyds.com)
IUA 'Contingency Business Handbook' (iua.co.uk)
Swiss Re 'Special Lines — Contingency' sigma reports
Insurance covering non-payment by buyers due to insolvency or protracted default. Major insurers regulated and reported via the Berne Union (International Union of Credit & Investment Insurers).
International Union of Credit & Investment Insurers
Crime insurance covers first-party financial losses from employee dishonesty, computer fraud, forgery, and theft of money or securities. Kidnap and Ransom (K&R) insurance indemnifies ransom payments, negotiation costs, and related expenses arising from kidnapping, extortion, or unlawful detention of personnel. Both lines are written in the Lloyd's Crime market under specialist wordings. See lloyds.com.
Crime & Kidnap and Ransom (K&R) Insurance
Insurance covering first- and third-party losses arising from cyber events including data breaches, ransomware, business interruption from system outage, and cyber extortion. Lloyd's Cyber market wordings define covered cyber events and require insureds to maintain specified security controls; mandatory cyber exclusions for state-backed attacks were introduced via Lloyd's Market Bulletin Y5381 (2022). See lloyds.com.
Lloyd's Market Bulletin Y5381, lloyds.com
The amount of a covered loss that the insured retains before insurance coverage responds; expressed as a monetary amount or a percentage of the insured value. A deductible is deducted from each and every loss, while a franchise is only deducted if the loss falls below the threshold (above which the insurer pays in full). Lloyd's policy wordings set out the applicable deductible structure at lloyds.com.
Liability insurance protecting individual directors and officers against claims alleging wrongful acts in their management capacity, and indemnifying the company for amounts it pays on their behalf. D&O policies typically contain Side A (personal coverage), Side B (corporate reimbursement), and Side C (entity securities coverage) insuring agreements. Lloyd's D&O market wordings are available at lloyds.com.
Directors & Officers (D&O) Liability Insurance
A bank-intermediated payment mechanism in which a seller's bank (remitting bank) forwards shipping documents and a collection instruction to the buyer's bank (presenting bank) with directions to release documents either against payment (D/P – documents against payment) or against acceptance of a bill of exchange (D/A – documents against acceptance). Documentary collections are governed by the ICC Uniform Rules for Collections, Publication No. 522 (URC 522, 1995), and carry more risk than a letter of credit since the bank does not guarantee payment.
ICC URC 522 (Uniform Rules for Collections, ICC Publication No. 522, 1995), iccwbo.org
Average number of days a company takes to collect payment after a sale. Formula: (Accounts Receivable / Revenue) × Days. Direct driver of working capital financing cost.
CFA Institute — financial reporting and analysis curriculum
Environmental Impairment Liability (EIL)
Liability insurance covering third-party claims for bodily injury, property damage, and cleanup costs arising from sudden or gradual pollution and environmental impairment originating from an insured site or operation. IMIA has published a working paper on environmental liability for engineering insurers setting out scope and exclusions. See imia.com/working-papers.
IMIA Environmental Liability working paper
A bank or trust account held by a neutral third party (escrow agent) on behalf of two contracting parties, with funds released only upon satisfaction of agreed contractual conditions (e.g., delivery of title documents, passage of quality inspection, or fulfilment of regulatory approvals). Escrow arrangements in commodity trade are based on common-law trust principles and are typically documented under a tripartite escrow agreement; ICC provides guidance on escrow structures in its Model Contracts and Standard Clauses.
ICC Standard Contracts and Clauses guidance, iccwbo.org
Sale of accounts receivable to a third party (factor) at a discount, in exchange for immediate cash. Governed by FCI General Rules for International Factoring (GRIF).
Factors Chain International (FCI) — global factoring framework
Factoring where the seller retains credit risk: if the buyer defaults, the factor returns the receivable to the seller. Lower discount rate than non-recourse.
Factors Chain International — recourse provisions
Factoring where the factor takes the buyer's credit risk. If the buyer defaults, the factor cannot reclaim from the seller. Higher discount rate than recourse.
Factors Chain International — non-recourse provisions
Sum of inventory-in-transit financing, hedge roll cost, factoring/discounting fees and other working-capital carrying costs in the TCO model. Driven by DSO (days sales outstanding), funding cost (SOFR/EURIBOR + spread) and the QP/transit duration.
Financing (Total Cost of Ownership — TCO)
WACC principles per Brealey, Myers & Allen
Specialty insurance market covering high-value transportable objects and their storage: bullion and precious metals (specie), coins and banknotes, jewellery and gems, cultural artefacts and museum art, and general 'valuable articles.' All-risks worldwide cover written on Lloyd's and company forms with agreed-value clauses. Underwriters include Lloyd's syndicates (Hiscox, XL Catlin, Talbot, Beazley), AXA XL, Chubb, Marsh. Rated on individual object value, storage location security rating, transit mode, and shipper track record.
Lloyd's 'Fine Art and Specie' underwriting guide (lloyds.com)
A principle of maritime law under which extraordinary sacrifices or expenditures voluntarily and reasonably incurred to preserve a ship and its cargo from a common peril are shared proportionately by all cargo interests and shipowner. General Average is adjusted under the York-Antwerp Rules 2016 (YAR 2016), the latest revision published by the Comité Maritime International. The YAR 2016 text is available at comitemaritime.org.
York-Antwerp Rules 2016, Comité Maritime International, comitemaritime.org
The foundational insurance principle, codified in Sections 1 and 5 of the Marine Insurance Act 1906 (UK), that a contract of insurance is one of indemnity under which the insured may not recover more than their actual financial loss, preventing unjust enrichment. The principle underlies the requirement for an insurable interest and caps recoveries at the insured value or actual loss, whichever is lower. The Act is accessible at legislation.gov.uk/ukpga/Edw7/6/41.
Marine Insurance Act 1906 Sections 1 and 5, legislation.gov.uk
Three standard sets of marine cargo insurance clauses drafted by the Joint Cargo Committee (Lloyd's Market Association / International Underwriting Association) on 1 January 2009: Clauses A provide the broadest 'all risks' cover (subject to named exclusions); Clauses B cover a defined list of named perils including fire, stranding, collision, and earthquake; Clauses C cover the most limited range of major casualties only. All three include the Transit Clause (Clause 8) extending cover warehouse-to-warehouse.
Institute Cargo Clauses (ICC-A, ICC-B, ICC-C) – 2009 Edition
Institute Cargo Clauses A, B, C (1/1/09), Lloyd's Market Association (LMA) / International Underwriting Association (IUA) Joint Cargo Committee; referenced in LME trade documentation
Standard IUA/LMA cargo insurance clauses providing coverage for loss or damage to cargo caused by strikers, locked-out workmen, persons taking part in labour disturbances, riots, or civil commotions, and acts of terrorism. This cover is ordinarily excluded from Institute Cargo Clauses A, B, and C (which contain a general strikes exclusion) and must be added separately. The current edition is CL 386 (1/1/2009); the earlier edition was CL 258 (1/1/1982).
Institute Strikes Clauses (Cargo) — CL 386 / formerly CL 258
Institute Strikes Clauses (Cargo) CL 386 (1 January 2009), Clause 1.1 (Risks Covered), issued by the International Underwriting Association (IUA) / Lloyd's Market Association (LMA)
Institute Cargo Clauses (A) CL 382, Clause 7 (General Exclusions — strikes)
Financing cost of capital tied up in goods while in transit, computed as CIF value × WACC × (voyage days / 365). A real economic cost that grows linearly with transit time.
Industry concept; references: CFA Institute working capital management materials
Standard Lloyd's market clauses issued by the Joint Cargo Committee (JCC) that extend marine cargo insurance to cover war, strikes, riots, and civil commotions risks explicitly excluded from the base Institute Cargo Clauses. The JCC War Clauses (Cargo) and JCC Strikes Clauses (Cargo) provide back-to-back cover to the ICC A set. Current JCC wording is maintained by the Lloyd's Market Association at lmalloyds.com.
JCC War & Strikes Clauses (Joint Cargo Committee)
Joint Cargo Committee / Lloyd's Market Association, lmalloyds.com
Additional undertaking by a second bank (typically in the seller's country) to honour the LC even if the issuing bank or its country defaults. Fee priced by issuing-bank country risk.
Issuing bank's commission for opening a documentary credit in favour of the seller, governed by ICC UCP 600. Typical fee: 0.1–0.5% of LC face value per quarter.
ICC Uniform Customs and Practice for Documentary Credits (Publication 600)
An irrevocable undertaking by an issuing bank, made at the request of a buyer (applicant), to pay the seller (beneficiary) a specified sum against presentation of stipulated documents within a defined time, regardless of the underlying commercial contract. Letters of credit are governed by ICC Uniform Customs and Practice for Documentary Credits, Publication No. 600 (UCP 600, 2007), which defines the roles of issuing, confirming, and nominated banks, and the strict compliance standard for document examination.
ICC UCP 600 (Uniform Customs and Practice for Documentary Credits, ICC Publication No. 600, 2007), iccwbo.org
An independent professional appointed by an insurer (or insured) to investigate, quantify, and negotiate settlement of insurance claims; their function is to establish coverage, determine quantum, and ensure the indemnity principle is applied correctly. In the UK, loss adjusters may be Fellows or Members of the Chartered Institute of Loss Adjusters (CILA), the professional body that sets competency standards and the Code of Conduct. See cila.co.uk.
Loss Adjuster / Chartered Institute of Loss Adjusters (CILA)
Chartered Institute of Loss Adjusters (CILA), cila.co.uk
Marine insurance covering the shipowner's loss of hire earnings during a period when the vessel is off-hire due to an insured peril causing physical damage. Cover is written on a per-day basis up to a maximum number of days (the indemnity period) and is subject to a waiting-period deductible. IUMI Ocean Hull and Loss of Hire statistics and guidelines are available at iumi.com.
IUMI — International Union of Marine Insurance, iumi.com
Engineering insurance covering sudden and unforeseen physical damage to machinery and mechanical/electrical equipment caused by internal perils (e.g., operator error, short circuit, material defect) that are excluded from fire and property policies. IMIA Working Group Paper WGP 13 provides technical guidance on MBD underwriting, loss adjustment, and sublimit structures. See imia.com/working-papers.
Insurance covering physical loss or damage to goods in transit by sea (and typically air and land legs of the same journey), underwritten under Institute Cargo Clauses (A, B, or C) or equivalent policy forms. The International Union of Marine Insurance (IUMI) represents marine cargo underwriters globally; cover attaches from the time goods leave the warehouse at origin and terminates on delivery to the final warehouse at destination, subject to the Transit Clause.
IUMI (International Union of Marine Insurance) position papers on cargo insurance
Insurance covering physical loss of or damage to a vessel (hull and machinery) caused by perils of the sea, fire, explosion, collision, and other named or all-risks perils. The standard market form is the Institute Time Clauses — Hulls (ITC-H 1983/1995) or the International Hull Clauses (IHC 2003). IUMI publishes annual Ocean Hull market statistics at iumi.com.
International Hull Clauses 2003, lmalloyds.com
Open account (O/A) is a settlement method where the exporter ships goods and invoices the buyer, who pays after an agreed credit period (e.g., 30–90 days), placing maximum risk on the seller. Cash against documents (CAD / D/P) requires the buyer to pay before the presenting bank releases title documents, offering moderate seller protection without a bank payment guarantee. ICC places both methods on the trade-finance risk spectrum between open account (highest seller risk) and confirmed L/C (lowest).
ICC URC 522 (documentary collections), iccwbo.org
A package of engineering and property insurance lines specifically tailored to operational mining facilities, covering mobile mining equipment, processing plant, conveyors, crushers, and associated infrastructure against physical damage and machinery breakdown. IMIA WGP 105 sets out underwriting considerations, accumulation management, and loss estimation for operational mining risks. See imia.com/working-papers.
A partial loss of an insured subject-matter that falls on the owner of the damaged property without contribution from others, as distinct from General Average which is shared. Section 64 of the Marine Insurance Act 1906 (UK) defines particular average and distinguishes it from total loss and general average. The Act is accessible at legislation.gov.uk/ukpga/Edw7/6/41.
Marine Insurance Act 1906 Section 64, legislation.gov.uk
Number of days between invoice and payment due (e.g., Net 30, Net 60, Net 90, Cash Against Documents). Drives Days Sales Outstanding (DSO) and working capital tie-up.
International Chamber of Commerce — trade finance rules
A bond or guarantee issued by a bank or surety in favour of a contract owner (obligee) requiring the guarantor to pay a specified sum if the principal (contractor or seller) fails to perform contractual obligations. In international commodity trade, performance bonds are typically structured as independent demand guarantees subject to URDG 758, enabling the beneficiary to call the guarantee upon presentation of a complying demand without proving the underlying default; under English law, performance bonds may be conditional (requiring proof of breach) or on-demand (unconditional).
English law on demand guarantees (Meritz Fire & Marine Insurance Co Ltd v Jan de Nul NV [2011] EWCA Civ 827)
Insurance covering losses sustained by investors and lenders from political events in a host country, including expropriation, currency inconvertibility and transfer restriction, war and civil disturbance, and breach of contract by a sovereign entity. PRI is provided by multilateral institutions (MIGA), export credit agencies, and private Lloyd's underwriters; Berne Union members collectively track global PRI exposure. See miga.org, dfc.gov, and berneunion.org.
MIGA — Multilateral Investment Guarantee Agency, miga.org
All-risks property insurance covering sudden and accidental physical loss or damage to property from any cause not explicitly excluded, as opposed to a named-perils policy. PAR policies for industrial and mining properties are governed by IMIA guidelines and typically include sub-limits for flood, earthquake, and named-storm perils. IMIA resources are at imia.com.
A clause in a property insurance policy that automatically restores the sum insured to its original level after a loss payment, typically subject to the insured paying an additional reinstatement premium calculated pro rata to the time remaining on the policy. Without a reinstatement clause, the sum insured is reduced by the amount of each loss payment. Lloyd's property policy wordings including reinstatement provisions are available at lloyds.com.
Lloyd's Property market wordings, lloyds.com
Reinsurance is the transfer of insurance risk from a ceding insurer to a reinsurer under a contractual arrangement. Treaty reinsurance covers an agreed portfolio of risks automatically without individual underwriting by the reinsurer; facultative reinsurance covers a single risk on a case-by-case basis negotiated separately. Swiss Re's sigma series provides annual global reinsurance market analysis at swissre.com/institute.
Insurance for high-value portable property including bullion, precious metals, gemstones, fine art, cash in transit, and collectibles, covering physical loss or damage in transit and at specified locations. Specie insurance is written under Lloyd's Specie market wordings, which define covered perils, valuation basis (agreed value or market value), and transit conditions. Governance and market practice are detailed at lloyds.com.
Lloyd's Specie market wording, lloyds.com
A bank undertaking to pay a beneficiary if the applicant fails to perform a contractual or financial obligation, functioning as a performance or payment guarantee rather than a primary payment mechanism. SBLCs may be subject to either ICC UCP 600 or, more specifically, the ICC International Standby Practices (ISP98, ICC Publication No. 590), which defines the rules for standby letters of credit including presentation, honour, and transfer; they are also sometimes governed by URDG 758 when structured as demand guarantees.
ICC ISP98 (International Standby Practices, ICC Publication No. 590, 1998)
A single all-risks marine and storage insurance policy covering commodity stocks continuously from supplier origin through transit, storage, processing, and onward distribution to the buyer, replacing a chain of separate cargo and warehouse policies. STPs are particularly common in metals, chemicals, and agricultural commodities; IUMI provides technical guidance on STP underwriting at iumi.com.
The right of an insurer that has indemnified an insured for a loss to step into the insured's legal shoes and pursue recovery against any third party legally liable for that loss, preventing the insured from recovering twice for the same loss. Subrogation in marine insurance is codified in Section 79 of the Marine Insurance Act 1906 (UK). The Act is accessible at legislation.gov.uk/ukpga/Edw7/6/41.
Marine Insurance Act 1906 Section 79, legislation.gov.uk
The maximum amount payable under an insurance policy for a single loss or in aggregate over the policy period — sets the upper bound of the insurer's obligation regardless of actual loss size. In marine cargo it is typically CIF + 10% (invoice + insured markup); in specie/vault covers, the value of bullion + agreed margin; in property, the replacement or agreed value of the assets. Distinct from Deductible (lower bound, insured retention) and from Sum Assured (used in life insurance).
Sum Insured (Insured Value / Policy Limit)
ICC (Institute Cargo Clauses) A/B/C 2009 wording (iua.co.uk)
IUMI (International Union of Marine Insurance) technical bulletins (iumi.com)
A three-party guarantee instrument in which a surety (bonding company) promises to pay the obligee (project owner or beneficiary) if the principal (contractor or obligor) fails to fulfil a contractual or legal obligation; distinct from a Performance Bond in that the surety is not an insurer but guarantees performance itself. The Surety & Fidelity Association of America (SFAA) publishes model surety bond forms and market statistics at surety.org.
Surety & Fidelity Association of America (SFAA), surety.org
Fee for international wire transfers via the SWIFT network. Charged per message by both originating and beneficiary banks; correspondents may deduct further fees in transit.
Society for Worldwide Interbank Financial Telecommunication
Tailings Storage Facility (TSF) Liability
Liability insurance and environmental coverage for losses arising from the structural failure, breach, or overflow of a tailings storage facility at a mine site, including third-party bodily injury, property damage, and pollution cleanup costs. The Global Industry Standard on Tailings Management (GISTM), developed under auspices of UNEP/ICMM/PRI, defines the governance and safety requirements that underwriters use to assess TSF risk. GISTM is available at globaltailingsreview.org.
GISTM — Global Industry Standard on Tailings Management, globaltailingsreview.org
Insurance protecting a seller against non-payment of trade receivables by a buyer due to insolvency or protracted default, covering short-term open-account or documentary trade credit granted in commercial transactions. Trade Credit Insurance is distinct from generic 'credit insurance' in that it is specifically structured around buyer credit limits, credit periods, and discretionary credit limits set against approved buyer lists. Major market participants publish underwriting frameworks at allianz-trade.com, atradius.com, and coface.com.
Specialty liability policy carried by precious-metals vaults, bullion depositories, gem/watch safes, and armoured-carriage terminals covering their legal responsibility for loss, damage, or mysterious disappearance of clients' bailed property. Distinct from the vault's own property/specie cover — VOL protects the operator against third-party claims. Rated on turnover, average value on hand, security grade (UL TL-30, EN 1143-1 Grade IV+), transit exposure, and control regime (SSAE 18/SOC 2, LBMA GDL for gold vaults).
LMA (Lloyd's Market Association) 'Fine Art and Specie' wordings
LBMA 'Good Delivery List — Vault Operator Standards' (lbma.org.uk)
Lloyd's 'Marine and Aviation Bureau' handbook
Blended cost of debt and equity weighted by capital structure: WACC = (E/V)·Re + (D/V)·Rd·(1−tax). Used as discount rate for inventory-in-transit and DCF valuations.
CFA Institute — Corporate Finance curriculum
Clause 8 of the Institute Cargo Clauses A, B, and C (1/1/09) which extends marine cargo cover from the time goods leave the warehouse or place of storage at the origin named in the certificate, throughout the ordinary course of transit, until delivered to the consignee's warehouse or final place of storage at the destination named. Cover terminates on expiry of 60 days after discharge of goods from the overseas vessel at the final port of discharge, whichever occurs first.
Institute Cargo Clauses A, B, C (1/1/09), Clause 8 – Transit Clause
Total cost of capital tied up in receivables and inventory: AR × WACC × (DSO/365) + Inventory × WACC × (Inventory days/365). Drives the financing cost line in TCO.
CFA Institute — Working Capital Management
Maximum cash locked in a deal at any point between procurement and invoice collection. In the TCO model: peak invoice exposure = material + logistics + customs + accrued financing, held over DSO days. Used to size credit lines and compute return on tied capital.
Internal TSM methodology; general trade finance working capital principles
The scenario in which cumulative losses from multiple insured events exhaust an aggregate policy limit within a policy year, leaving the insured without further coverage for the remainder of the period. Risk managers must model aggregate loss distributions and maintain reserve funds or excess-of-loss covers to address aggregate limit exhaustion. Lloyd's policy wording guidance at lloyds.com.
Aggregate Limit Exhaustion (Risk Management)
A private, binding dispute resolution procedure in which parties submit their dispute to an arbitral tribunal whose final award is enforceable in over 170 states under the 1958 New York Convention. ICC Arbitration under the Rules of Arbitration (effective 1 January 2021) is described as 'a formal procedure leading to a binding decision from a neutral arbitral tribunal'; the ICC International Court of Arbitration administers the proceedings, provides scrutiny of draft awards, and is the most widely used international arbitral institution for commodity and trade disputes.
ICC Rules of Arbitration 2021 (effective 1 January 2021), Foreword and Article 1
LME Rulebook (arbitration under LME Rules)
The risk that the price of a hedging instrument (e.g., an LME futures contract for Grade A copper) does not move in perfect correlation with the price of the physical commodity being hedged (e.g., a specific copper concentrate grade or delivery location), resulting in residual P&L exposure even after hedging. Basis risk arises from differences in grade, location, timing (contango/backwardation), and quality between the hedge and the physical position, and cannot be eliminated by standard exchange-traded hedges.
LME Insight publications on hedging and basis risk
CME Group education resources on commodity hedging
A risk classification system maintained by the Berne Union (International Union of Credit and Investment Insurers) that categorises countries into risk tiers based on political stability, transfer and convertibility risks, and sovereign creditworthiness, used by member export credit agencies to set country exposure limits and premium rates. The Berne Union publishes country risk data and annual statistics at berneunion.org.
A form of political risk in which a host-country government repudiates or arbitrarily modifies a contractual obligation owed to a foreign investor, causing financial loss not addressable through the host-country judicial system. MIGA (Multilateral Investment Guarantee Agency) provides coverage for breach-of-contract losses where the investor has been unable to obtain an award under an arbitration clause or the host government refuses to pay the award. See miga.org.
Breach of Contract — Sovereign (MIGA Coverage)
The risk of severe loss arising from a single low-frequency, high-severity event such as a major earthquake, tropical cyclone, flood, or pandemic that simultaneously affects many insured risks or counterparties. Swiss Re's sigma publication series provides annual global natural catastrophe loss data and modelling frameworks. Available at swissre.com/institute.
The risk of loss arising from over-exposure to a single counterparty, sector, geography, or asset class that is correlated such that a single adverse event can impair a disproportionate share of a portfolio. Basel III (CRR/CRD IV in the EU) addresses concentration risk through large exposure limits (Regulation EU 575/2013, Part Four) and Pillar 2 internal capital assessments. Framework documents at bis.org.
The risk that a counterparty to a financial transaction or commodity contract could default before the final settlement of the transaction's cash flows, resulting in an economic loss if the portfolio or transaction has a positive economic value at the time of default. Unlike credit risk on a loan (which is unilateral), counterparty credit risk is bilateral—the market value of the transaction can be positive or negative to either party—and is addressed by netting agreements, collateral, and central clearing (Basel Committee, Basel II/III framework).
Basel Committee on Banking Supervision, 'International Convergence of Capital Measurement and Capital Standards: A Revised Framework' (Basel II, BCBS128, June 2006), Part 2, Section II.A
Risk of loss due to political instability, expropriation, capital controls, or sovereign default in the destination/origin country. OECD Country Risk Classification (0–7) is the official reference for export-credit insurers.
Organisation for Economic Co-operation and Development
Currency Inconvertibility & Transfer Restriction (CITR)
A political risk in which a host-country government prevents or delays the conversion of local currency into foreign exchange or the transfer of funds across borders, causing investors or lenders to be unable to repatriate profits, service debt, or receive contract payments. MIGA provides CITR coverage under its political risk guarantee programme at miga.org.
A default occurs when a party fails to fulfil one or more of its contractual obligations—such as failure to deliver metal, make payment, or meet quality specifications—giving rise to a breach of contract under applicable law. Under LME Rulebook Part 9, a member's default triggers suspension, appointment of a default committee, close-out netting of open positions, and use of the LME's default fund and guarantees to ensure market continuity; damages for breach follow common-law principles of expectation loss.
LME Rulebook, Part 9 (Default Procedures); general commercial law on breach of contract
Contract clauses specifying (a) the forum for resolving disputes—typically arbitration under ICC, LCIA, LMAA, or SIAC rules, or litigation in a named court—and (b) the law governing the substantive rights and obligations of the parties (e.g., English law, New York law, or Swiss law). The ICC Arbitration Rules 2021 allow parties to agree on the rules of law to be applied; in the absence of agreement, the tribunal applies the rules it determines appropriate, taking into account the contract and relevant trade usages.
Dispute Resolution Clause and Governing Law
ICC Rules of Arbitration 2021, Article 21 (Applicable Rules of Law), iccwbo.org
The risk that a host-country government will seize, nationalise, or expropriate an investor's assets without prompt, adequate, and effective compensation, including 'creeping expropriation' through cumulative discriminatory measures. MIGA (Multilateral Investment Guarantee Agency), established under the MIGA Convention, covers direct expropriation and creeping expropriation in its political risk guarantee products. See miga.org.
Under the ICC Force Majeure Clause 2020, 'Force Majeure' means an event or circumstance that prevents or impedes a party from performing contractual obligations, provided the affected party proves: (a) the impediment is beyond its reasonable control; (b) it could not reasonably have been foreseen at contract conclusion; and (c) its effects could not reasonably be avoided or overcome. A party successfully invoking the clause is relieved from performance and from liability in damages from the time of the impediment, subject to timely notification.
ICC Force Majeure Clause 2020 (Long Form), Paragraph 1
The ICC Hardship Clause 2020 applies where a party proves continued performance has become excessively onerous due to an event beyond its reasonable control that was unforeseeable at contract conclusion and whose consequences could not be avoided. Unlike force majeure (which excuses performance), hardship triggers an obligation on both parties to renegotiate terms; if renegotiation fails, parties may choose between party-initiated termination, court/arbitral adaptation, or court/arbitral termination depending on the option elected.
ICC Hardship Clause 2020, Paragraphs 1–3
The risk that an institution cannot meet its financial obligations as they fall due without incurring unacceptable losses. Basel III addresses short-term liquidity risk through the Liquidity Coverage Ratio (LCR), which requires banks to hold sufficient unencumbered high-quality liquid assets (HQLA) to survive a 30-day stress scenario; the Net Stable Funding Ratio (NSFR) addresses structural funding risk over a one-year horizon. The LCR became a minimum 100% requirement from 1 January 2019.
Liquidity Risk (Basel III LCR / NSFR Framework)
Basel Committee on Banking Supervision, 'Basel III: The Liquidity Coverage Ratio and Liquidity Risk Monitoring Tools' (BCBS238, January 2013)
The potential for adverse consequences arising from decisions based on flawed or misapplied financial models, including incorrect model specification, estimation error, inappropriate use, or implementation mistakes. The U.S. Federal Reserve's Supervisory Guidance on Model Risk Management (SR 11-7 / OCC 2011-12) is the authoritative framework for model risk governance in financial institutions. Available at federalreserve.gov.
Federal Reserve SR 11-7 / OCC 2011-12, federalreserve.gov
A seven-tier (0–7) country risk classification system maintained by the OECD that determines the minimum premium rates applicable to official export credit insurance and guarantees under the OECD Arrangement on Officially Supported Export Credits. Classifications are updated annually based on sovereign default risk and transfer/convertibility risk assessments. Available at oecd.org/trade/topics/export-credits.
OECD Arrangement on Officially Supported Export Credits, oecd.org
Provision added to total landed cost to absorb unforeseen operational events (delays, handling errors, minor claims). Typically 1–3% of landed cost; not insurable, just budgeted.
Industry concept; references: PMI Project Management Body of Knowledge (PMBOK) on contingency reserves
Operational risk is defined by the Basel Committee as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events; it includes legal risk but excludes strategic and reputational risk. The Basel Committee's 'Principles for the Sound Management of Operational Risk' (BCBS195, June 2011) establishes governance and management principles; operational risk is inherent in all banking products, activities, processes, and systems.
Operational Risk (Basel Committee Definition)
Basel Committee on Banking Supervision, 'International Convergence of Capital Measurement and Capital Standards' (BCBS128, 2006), Part 2 Section V.A, ; 'Principles for the Sound Management of Operational Risk' (BCBS195, 2011), bis.org/publ/bcbs195.htm
Political risk encompasses the probability that government actions or political events—including expropriation, nationalisation, currency inconvertibility, sanctions, civil unrest, and regulatory change—will adversely affect the value of a cross-border commercial or investment position. Sovereign risk is the related credit risk that a national government will default on its obligations. The Multilateral Investment Guarantee Agency (MIGA) and OECD Country Risk Classifications provide frameworks for assessing and pricing these risks in trade finance and investment insurance.
MIGA (World Bank Group Multilateral Investment Guarantee Agency), Political Risk Insurance
OECD Arrangement on Officially Supported Export Credits and Country Risk Classification methodology, oecd.org
Settlement risk is the risk that a party to a transaction delivers its obligation (securities or currency) but does not receive the corresponding payment or delivery from its counterparty; in foreign exchange this is known as Herstatt risk, named after the 1974 collapse of Bankhaus Herstatt which failed between European and US dollar settlement legs. The BIS CPSS/CPMI has extensively studied FX settlement risk since 1996 and promotes payment-versus-payment (PvP) mechanisms to eliminate principal risk in FX settlement.
Settlement Risk / Herstatt Risk (FX Transactions)
BIS CPSS, 'Settlement Risk in Foreign Exchange Transactions' (March 1996)
BIS/BCBS128, Annex 3 (Settlement Risk in Failed Trades)
The risk that production, transportation, or delivery of a commodity is disrupted by strike, lock-out, go-slow, or other collective labour action, potentially causing non-performance of contractual obligations. Under the ICC Force Majeure Clause 2020 paragraph 3(g), 'general labour disturbance such as boycott, strike and lock-out, go-slow, occupation of factories and premises' is a presumed force majeure event, meaning the affected party need not prove the event was beyond control or unforeseeable.
Strike Risk / Labour Industrial Action Risk
ICC Force Majeure Clause 2020, paragraph 3(g): Presumed Force Majeure Events; iccwbo.org (published March 2020)
The risk of portfolio losses exceeding what would be predicted by a normal distribution, arising from extreme events in the left tail of the return distribution; measured by Conditional Value-at-Risk (CVaR / Expected Shortfall). Basel III's Fundamental Review of the Trading Book (FRTB) replaced Value-at-Risk with Expected Shortfall to better capture tail risk in market risk capital requirements. BIS FRTB framework at bis.org.
The risk of physical damage to assets, cargo, or personnel, or of business interruption, caused by acts of war, invasion, civil war, insurrection, riot, civil commotion, or terrorism. Lloyd's War Risks market writes specialist war, strikes, riots, and civil commotion (WSRCC) covers for marine, aviation, and property classes, and the Lloyd's Joint War Committee maintains Hull War Risk trading areas. See lloyds.com.
The risk that warehouse receipts or warrants are used as collateral for multiple simultaneous loans against the same physical metal (double- or multiple-pledging), or that fraudulent receipts are issued for non-existent inventory. The 2014 Qingdao metals financing scandal—in which warehouse receipts for copper and aluminium were allegedly pledged multiple times to different banks—highlighted this risk in non-LME warehouses; the LME subsequently strengthened its warehouse approval and collateral management policies requiring electronic warrant tracking via the LMEshield platform.
Warehouse Receipt and Collateral Fraud Risk
LME Warehousing Regulations and LMEshield electronic warrant system, lme.com
Reuters, 'Two years after Qingdao scandal, LME bets on electronic tracking of metal' (June 2016)
An oracle design by API3 in which the data provider itself operates the oracle node (first-party), eliminating third-party intermediaries; dAPIs are managed data feeds aggregated from first-party Airnode beacons and governed by the API3 DAO. This architecture reduces attack surface by removing an extra trust layer. Documentation at docs.api3.org.
API3 First-Party Oracle / Decentralised API (dAPI)
Atomic settlement is the simultaneous, all-or-nothing exchange of an asset and its corresponding payment on a distributed ledger, structured so that either both legs of the transaction complete or neither does. This mechanism eliminates principal risk in delivery-versus-payment (DvP) transactions by ensuring no party can deliver without receiving, and vice versa.
Based on: BIS and FSB official documentation
A tamper-evident, cryptographically signed statement by an issuer asserting one or more facts about a subject—such as reserve balances, identity, or compliance status. The W3C Verifiable Credentials Data Model 1.1 defines a verifiable credential as 'a tamper-evident credential whose authorship can be cryptographically verified.' In the context of tokenised metals, attestations from auditors or custodians may be encoded as Verifiable Credentials or relayed on-chain via oracles.
Verifiable Attestation / Digitally Signed Credential
W3C Verifiable Credentials Data Model 1.1 (W3C Recommendation, 3 March 2022), Section 2 Terminology (definition of 'verifiable credential')
A service built on EigenLayer that leverages restaked ETH as economic security for off-chain computations or external systems, including oracle networks, bridges, and data availability layers; EigenLayer operators validate AVS tasks and are subject to slashing if they misbehave. AVS specifications and registry are documented at docs.eigenlayer.xyz.
AVS — Actively Validated Service (EigenLayer)
Digital form of a country’s fiat currency issued and backed directly by the central bank. Distinct from cryptocurrencies, CBDCs are legal tender and centrally controlled. Two main types: retail CBDC (for public use) and wholesale CBDC (for interbank settlement). Over 130 countries are researching or piloting CBDCs; live examples include China’s e-CNY, Nigeria’s eNaira, and the Bahamas Sand Dollar.
Source: Bank for International Settlements CBDC papers
Chainlink CCIP — Cross-Chain Interoperability Protocol
A Chainlink protocol providing a standardised interface for cross-chain messaging and token transfers, secured by Chainlink's decentralised oracle network and an independent Risk Management Network that monitors for anomalous activity. CCIP enables smart contracts on different blockchains to exchange data and tokens. Documentation at docs.chain.link/ccip.
An on-chain reference contract maintained by Chainlink that aggregates price or other data from multiple independent node operators, providing a decentralised, tamper-resistant data point consumed by smart contracts. Feeds use a deviation threshold and heartbeat frequency to trigger on-chain updates. Documentation at docs.chain.link/data-feeds.
A Chainlink product that verifies on-chain whether a tokenised asset (e.g., wrapped token, stablecoin, or tokenised commodity) is backed by sufficient off-chain or cross-chain reserves, using oracle attestation from custodians or auditors. PoR feeds can trigger circuit-breaker smart contracts if reserve shortfalls are detected. Documentation at chain.link/proof-of-reserve.
A decentralised oracle protocol originating as MakerDAO's internal price oracle system, now operating independently as Chronicle Labs, providing verifiable data feeds where each oracle publisher cryptographically signs data and a smart contract aggregates medianised values. Chronicle emphasises verifiability through on-chain Schnorr signature verification. Documentation at chroniclelabs.org.
Chronicle Oracle (formerly MakerDAO Oracles)
Digital asset custody refers to the safekeeping and management of the private cryptographic keys that control access to, and transfer of, digital assets recorded on a distributed ledger. Because digital assets are accessed and transferred through these private keys, custodians are responsible for securing the keys themselves rather than holding physical certificates or instruments.
Based on: FSB and Hogan Lovells official documentation
A continuously updated on-chain data stream providing real-world asset prices or other reference data to smart contracts. Chainlink Data Feeds aggregate data from multiple sources using a decentralised oracle network and Offchain Reporting protocol, publishing updates on-chain when the price deviates beyond a threshold or the heartbeat interval expires. Consuming contracts query the aggregator via the AggregatorV3Interface latestRoundData() function.
Chainlink Data Feed / On-Chain Price Oracle
Chainlink Data Feeds Documentation ( 'Chainlink Data Feeds are the quickest way to connect your smart contracts to real-world data such as asset prices, reserve balances, and L2 sequencer health.'
An open-source oracle platform that fetches, validates, and delivers financial data directly from primary sources (exchange trade data, on-chain DEX data) into smart contracts; DIA's methodology is publicly auditable and customisable by any project. Documentation at docs.diadata.org.
DIA (Decentralised Information Asset) Open Source Oracle
A digital bond is a debt security whose issuance, ownership record, and lifecycle management are conducted using distributed ledger technology or blockchain, rather than through traditional centralised securities infrastructure. Digital bonds can be issued natively on-chain as security tokens, or they can be tokenised representations of conventionally issued bonds held by a custodian.
Distributed Ledger Technology (DLT) refers to the protocols and supporting infrastructure that allow computers in different locations to propose, validate, and record transactions in a synchronised way across a network, without relying on a central trusted authority. Blockchain is one type of DLT in which data is organised into a chain of connected and cryptographically secured blocks.
Based on: Bank for International Settlements (BIS) official documentation
An oracle network built as an Actively Validated Service (AVS) on EigenLayer, using restaked ETH as cryptoeconomic security for oracle node operators who deliver validated data on-chain; slashing conditions apply to dishonest operators. Documentation at docs.eoracle.network.
Fractionalization is the process of dividing ownership of a single high-value asset into multiple smaller, independently tradeable units through tokenization on a blockchain. By lowering the minimum investment threshold, fractionalization can increase market liquidity and broaden access to asset classes that were previously available only to large investors.
Based on: FSB and ICMA official documentation
Off-chain Worker (OCW) — Polkadot/Substrate
A Substrate runtime feature that enables pallet logic to execute off-chain computations (e.g., HTTP requests, data parsing, cryptographic operations) and submit the results back to the chain as signed or unsigned transactions, enabling oracle-like data ingestion without consensus-layer overhead. OCW design and security model are documented at wiki.polkadot.network.
Polkadot/Substrate, wiki.polkadot.network
A system or service that delivers external (off-chain) data to a smart contract on a blockchain, bridging the gap between on-chain logic and real-world information. Chainlink's decentralised oracle network aggregates data from multiple independent node operators and publishes it on-chain via aggregator contracts, reducing single-point-of-failure risk. Oracles are essential for RWA tokenisation as they relay asset prices, reserve balances, and compliance attestations.
Blockchain Oracle — Off-Chain Data Provider
Chainlink Proof of Reserve Documentation (
A configurable parameter in a price oracle system specifying the minimum percentage change in the off-chain reference price that triggers an on-chain price update, balancing gas cost efficiency against data freshness; often combined with a heartbeat frequency so that updates occur on deviation OR time elapsed. Chainlink deviation threshold configuration is documented at docs.chain.link/data-feeds.
The maximum time interval between successive on-chain price updates from an oracle feed, ensuring that even in the absence of a price deviation the on-chain value is refreshed at a defined cadence (e.g., every 24 hours or 1 hour) to prevent stale data. Heartbeat frequency is a key parameter documented for each Chainlink data feed at docs.chain.link/data-feeds.
An exploit in which an attacker artificially distorts the price or data reported by an on-chain oracle (typically by manipulating a DEX spot price used as the oracle source) to trigger favourable liquidations, minting, or payouts in a DeFi protocol. Trail of Bits and Chainlink's security blog have published foundational analysis of oracle manipulation vectors and mitigations. See trailofbits.com/blog and blog.chain.link.
Chainlink security blog, blog.chain.link
A mechanism by which on-chain verifiable proof is provided that a tokenised asset is fully backed by off-chain reserves. Chainlink Proof of Reserve Feeds provide the status of reserves for assets including cross-chain and off-chain holdings, sourced via third-party auditors, direct custodian data feeds, or (with additional risk) issuer self-reporting. Smart contracts implement PoR using the AggregatorV3Interface.
Proof of Reserve (PoR) — Cryptographic Reserve Attestation
Chainlink Proof of Reserve Documentation (, including feed types: Third-party, Custodian, Self-reported, Wallet address manager
The two primary oracle update models: push oracles (e.g., Chainlink) proactively push price updates on-chain when a deviation threshold or heartbeat fires, providing always-current on-chain state at continuous gas cost; pull oracles (e.g., Pyth) require the end-user's transaction to explicitly fetch and verify the latest signed price data from an off-chain source, reducing gas overhead by updating only when needed. See docs.chain.link and docs.pyth.network.
A suite of proprietary 24/7 reference-price indices launched by Pyth Network in June 2026, covering U.S. equities (NVDA, TSLA, AAPL, MSFT, GOOGL, INTC, HOOD, MSTR, CRCL), oil (WTI, Brent), metals (Gold XAU, Silver XAG), FX pairs (EUR/USD, GBP/USD, USD/JPY), and thematic baskets (AI10, Defense10, China10, Tech100 — co-developed with MarketVector, a VanEck company). Each index is a standalone product with a published methodology, built on Pyth's first-party price feeds aggregated from institutional publishers. Early integrators include Coinbase, Kraken, dYdX, and Nado. Available for licensing across derivatives settlement, benchmarking, and ETF/ETP products. Distinct from TSM's TS-GMRI family: Pyth Indices track spot prices of the physical underlyings (bullion), while TS-GMRI tracks tokenized representations of those assets.
Pyth Indices — 24/7 Proprietary Reference-Price Suite
A decentralised oracle network using a pull-model architecture in which price updates are published to the Pythnet appchain and consumers pull the latest price into their target chain's smart contract at transaction time (rather than paying for continuous on-chain pushes), enabling low-latency, low-cost data delivery. Documentation at docs.pyth.network.
An oracle protocol delivering data using a modular architecture with three delivery models: push (Core), pull (Classic), and a composable low-latency mode; data packages are signed off-chain by provider nodes and cached in a decentralised cache layer, with on-chain verification only when consumed. Documentation at docs.redstone.finance.
An oracle network whose node operators stake already-staked ETH (or LSTs) via EigenLayer's restaking protocol to provide additional cryptoeconomic security for their oracle attestations; dishonest attestation may trigger slashing of both the original Ethereum stake and the restaked security. EigenLayer's restaking documentation is at docs.eigenlayer.xyz.
Real World Assets (RWA) is a term used in blockchain and digital finance to describe tangible or traditional financial assets — such as commodities, real estate, bonds, or equities — that are represented as digital tokens on a distributed ledger. Tokenizing RWAs aims to bridge traditional finance and decentralized finance by making these assets programmable, divisible, and tradable on-chain.
Based on: FSB and industry standard documentation
A security token is a digital token that is classified as a security under applicable financial regulations, representing ownership rights, investment interests, or economic entitlements in an underlying asset or enterprise. Because security tokens are treated as securities, their issuance and trading are subject to the same investor protection and disclosure requirements as traditional securities.
Based on: SEC and ESMA official documentation
A smart contract is a self-executing programme stored on a blockchain that automatically enforces and executes the terms of an agreement when predefined conditions are met, without requiring human intervention or a trusted intermediary. Once deployed on a blockchain, a smart contract is immutable and its execution is transparent and auditable by participants on the network.
Based on: Ethereum Foundation and ICMA official documentation
A Security Token Offering (STO) is a regulated method of raising capital in which a company issues digital tokens on a blockchain that are classified as securities and represent ownership rights, profit participation, or other investment interests. Unlike unregulated token sales, STOs are subject to applicable securities laws in each jurisdiction, including disclosure, registration, and investor eligibility requirements.
An oracle and cross-chain solution by Supra providing high-throughput, low-latency price feeds across multiple Layer-1 and Layer-2 networks using a distributed verification network (DORA) and a cross-chain Hyper-Relayer for bridging; Supra publishes feeds for traditional financial data as well as crypto assets. Documentation at supra.com/docs.
A permissionless, customisable oracle protocol initially built on Solana and expanded cross-chain, where anyone can create a data feed by defining sources and aggregation logic, with node operators running Trusted Execution Environments (TEEs) for tamper-proof execution. Documentation at docs.switchboard.xyz.
A decentralised oracle protocol on Ethereum in which data reporters stake TRB tokens to submit data values; a dispute mechanism allows any party to challenge a submitted value within a dispute window, with staked tokens slashed on successful disputes, creating crypto-economic data integrity incentives. Documentation at docs.tellor.io.
Time-Weighted Average Price (TWAP) Oracle
An on-chain price oracle that computes the arithmetic mean of asset prices weighted by time over a defined period, making manipulation significantly more expensive for short-duration attacks; Uniswap V3 implements TWAP via cumulative price accumulators in its liquidity pools. Uniswap V3 TWAP oracle documentation is at docs.uniswap.org.
Tokenization is the process of converting ownership rights or claims to a real-world or financial asset into a digital token recorded on a distributed ledger or blockchain. The resulting token can represent full or fractional ownership, and its transfer constitutes a transfer of the underlying rights in accordance with the applicable legal structure.
An oracle protocol that uses an optimistic verification game: a proposer posts a data value with a bond, and if no disputer challenges the value within a liveness window the answer is accepted on-chain; contested values escalate to UMA's Data Verification Mechanism (DVM) for token-holder arbitration. Documentation at docs.uma.xyz.
EU Regulation 648/2012 (EMIR) requires counterparties and CCPs to report details of any derivative contract (conclusion, modification, or termination) to a registered trade repository by the following working day. It also mandates central clearing for standardised OTC derivatives through an authorised CCP and bilateral risk mitigation for non-centrally cleared trades. CFTC Part 43/45 rules impose analogous real-time and regulatory reporting obligations in the US under Dodd-Frank Title VII.
European Market Infrastructure Regulation — OTC Derivative Trade Reporting
EU Regulation 648/2012 (EMIR), Articles 2(7), 4, 9
CFTC Rules 17 CFR Parts 43 and 45 (Dodd-Frank Title VII swap reporting)
Set of accounting standards issued by the International Accounting Standards Board (IASB) and adopted in 140+ jurisdictions including the EU, UK, Australia, Canada, and Hong Kong. Aims to provide a common global language for business affairs so financial statements are understandable and comparable across international boundaries. Notable metals-relevant standards: IFRS 6 (Exploration for and Evaluation of Mineral Resources), IAS 2 (Inventories), IFRS 13 (Fair Value Measurement).
International Financial Reporting Standards
Source: IFRS Foundation official standards (
Independent, non-governmental international standard-setting body composed of representatives from national standards organisations of 170+ member countries. Publishes over 24,000 international standards covering products, services, materials, systems, and processes. In metals context: ISO 15366 (platinum bullion assay), ISO 22000 (management), ISO/IEC 17025 (testing laboratory competence), ISO 20400 (sustainable procurement), and standards underpinning LBMA and LPPM Good Delivery frameworks.
Source: ISO official standards catalogue (
An international standard published by ISO Technical Committee TC68 (Financial Services) providing a common platform and methodology for developing financial messaging. It uses a business-modelling approach to produce XML and ASN.1-based message formats for payments, securities, trade services, and derivatives. SWIFT is migrating cross-border payments messaging (CBPR+) to ISO 20022, with the transition period through 2025.
ISO 20022 — Universal Financial Industry Message Scheme
ISO 20022 (Financial Services — Universal financial industry message scheme), TC68; iso20022.org
A unique 20-character alphanumeric code that unambiguously identifies a legal entity engaging in financial transactions globally, based on ISO 17442 standard managed by GLEIF (Global Legal Entity Identifier Foundation). Each LEI is linked to verified reference data (Level 1: 'who is who'; Level 2: 'who owns whom'). LEIs are mandatory for derivative reporting under EMIR, MiFIR, and Dodd-Frank.
GLEIF 'Introducing the Legal Entity Identifier', gleif.org
EU EMIR Article 9 and MiFIR Article 26 (LEI requirement)
Annual publication by the United States Geological Survey summarising world production, reserves, resources, and market data for approximately 90 mineral commodities. Released each January/February, MCS is the authoritative primary source for country-level reserve and production statistics used throughout the TSM Hub metals ecosystem. Data cutoff is typically end-of-previous-year with revisions to prior years.
Source: USGS Mineral Commodity Summaries (
EU Directive 2014/65/EU and its accompanying regulation MiFIR (Regulation 600/2014) establish the regulatory framework for investment services across EU financial markets. Key provisions include authorisation requirements for investment firms, pre- and post-trade transparency obligations, best execution duties (Article 27), systematic internaliser regime, position limits for commodity derivatives (Article 57), and weekly position reporting.
Markets in Financial Instruments Directive II
EU Directive 2014/65/EU (MiFID II), Articles 4(1), 27, 57, 58
EU Regulation 600/2014 (MiFIR), Articles 20–21; europa.eu
TSM editorial principle: every quantitative data point on TSM Hub and TSM www must trace back to a single, named primary source — the regulator, exchange, statistical agency or company filing that originally produced the figure. No aggregator citations, no derivative figures, no re-typed third-party numbers. Every metals page and dataset is OTSFA-audited.
The first publisher of a piece of data — the regulator, exchange, statistical agency, standard-setter or company that originally produced it. Examples: LME for LME official prices; USGS Mineral Commodity Summaries for country reserves; SEC EDGAR for US-listed company filings; LBMA for Good Delivery Lists. Contrasted with secondary sources (aggregators, news outlets, third-party databases) which TSM avoids per OTSFA principle.
TSM editorial; aligned with IFLA / scholarly sourcing conventions
A constraint in index construction that limits any single constituent's weight to a specified maximum (e.g. 10% or 20%) at rebalance, preventing over-concentration; common in sector indices where one or two dominant companies could otherwise represent the majority of the index.
FTSE Russell, 'FTSE Global Equity Index Series Ground Rules' (2024), ftserussell.com
S&P Dow Jones Indices, 'S&P DJI Index Mathematics Methodology', spglobal.com.
The quantitative and qualitative requirements a security must meet to be included in an index, typically covering minimum market capitalisation, liquidity (average daily traded value), listing status, legal domicile, free float percentage, and revenue or asset exposure to the target sector.
MSCI, 'MSCI Index Calculation Methodology' (2023)
FTSE Russell, 'Ground Rules for the FTSE4Good Index Series' (2024), ftserussell.com.
A factor applied to a company's total market capitalisation to exclude shares that are not readily available for public trading (e.g. government-held, founder-held, cross-held), computing the free-float market capitalisation used for index weight determination; employed by MSCI, FTSE Russell, S&P Dow Jones, and the TSM Mining Indices.
Free Float Adjustment (Index Construction)
FTSE Russell, 'Ground Rules for FTSE All-World Index Series', ftserussell.com.
The scheduled interval at which index constituents and their weights are reviewed and adjusted; common frequencies are quarterly (most sector indices), semi-annual (FTSE GEIS), and annual (some thematic indices). Between scheduled reviews, extraordinary reviews may occur if a constituent undergoes a corporate action.
Flagship benchmark for the tokenized-metals asset class. Market-cap-weighted aggregate of 18 metal-backed Real-World-Asset tokens (gold, silver, uranium concentrate) plus on-chain physical claims, base value 100 on 22 June 2026. As of June 2026 TS-GMRI is the first and only publicly published index dedicated to tokenized metals — Bloomberg, S&P, MSCI and CoinDesk do not publish an equivalent. Daily computation. Cap-weighted reflects money-weighted market exposure (XAUT and PAXG dominate). The equal-weighted sibling is TS-GMRI EW. Constituents, weights, and methodology are open at www.truesourcemetals.com/gmri.
TrueSource Metals (constituent data: CoinGecko)
Subset of the TS-GMRI family restricted to tokens backed by physical silver: KAG (Kinesis) and XAGM (Matrixdock). Cap-weighted, base 100 on 22 June 2026. Publication threshold lowered from N>=3 to N>=2 since silver has two established issuers across distinct jurisdictions and custody models. Mirrors TS-GMRI-AU symmetry (gold sleeve). Replaces the former TS-GMRI-NONAU which mixed silver (monetary) with uranium (nuclear fuel) without coherent portfolio logic — XU3O8 retained in the TS-GMRI primary universe; future home is the TS-GMRI-CRT critical-materials slot. Live value at /data/gmri/latest.json (family.live['TS-GMRI-AG']). Methodology v1.3 at www.truesourcemetals.com/gmri/methodology.
Subset of the TS-GMRI family restricted to tokens backed by physical gold (15 of the 18 constituents as of 15 June 2026). Cap-weighted, base 100 on 22 June 2026. Functions as the pure gold-token benchmark — useful for separating gold-specific moves from broader tokenized-metals breadth (silver and uranium are excluded here, see TS-GMRI-AG and TS-GMRI-PRE for the complements). Live value at /data/gmri/latest.json (family.live['TS-GMRI-AU']).
Registered methodology slot in the TS-GMRI family for base metals: copper, aluminium, nickel, zinc, lead, tin. As of 15 June 2026 no live retail tokens exist for any of these metals at the base date — N=0. The slot is registered for prior-art protection, but no value is published until the N>=3 threshold is met (industry-standard honesty: rules fixed, numbers withheld). When the threshold is first crossed, the sub-index goes live with the same definition; any pre-publication history is shown as BACKTEST / PRO-FORMA — reconstructed using CoinGecko historical caps. Methodology v1.0 at www.truesourcemetals.com/gmri/methodology.
TS-GMRI Base Metals (methodology slot — registered, value withheld)
Registered methodology slot in the TS-GMRI family for battery metals: lithium, cobalt, manganese, battery-grade nickel, natural graphite. Battery metals are the dominant narrative in commodity tokenization (energy transition, EV supply chain). As of 15 June 2026 no live retail tokens exist for any of these metals at the base date — N=0. The slot is registered for prior-art protection on 15 June 2026; no value is published until the N>=3 threshold is met. When the threshold is first crossed the sub-index goes live with the same definition; any pre-publication history is shown as BACKTEST / PRO-FORMA — reconstructed using CoinGecko historical caps. Methodology v1.0 at www.truesourcemetals.com/gmri/methodology.
TS-GMRI Battery Metals (methodology slot — registered, value withheld)
Sibling of the TS-GMRI flagship that prevents single-issuer dominance. Same 18-constituent universe, base 100 on 22 June 2026, cap-weighted — but if any single issuer's combined weight exceeds 20%, that issuer's tokens are scaled to the cap and the excess is redistributed pro-rata across uncapped tokens, iteratively until stable. Conservative honesty rule: issuers whose public disclosure cannot be corroborated (verified=false) are treated as their own standalone issuer rather than artificially merged. Conceptually similar to MSCI Issuer-Capped and S&P Capped index families. Live value at /data/gmri/latest.json (family.live['TS-GMRI-CAP20']). Methodology v1.0 at www.truesourcemetals.com/gmri/methodology.
Registered methodology slot in the TS-GMRI family for critical materials: uranium, lithium, cobalt, manganese, rare earths, neodymium. As of 15 June 2026 only one eligible constituent exists (XU3O8 uranium concentrate) — N=1, below the N>=3 publication threshold. Slot registered for prior-art protection; no value published until threshold is met. When live, the sub-index will capture the tokenized critical-materials slice of the energy-transition supply chain. Methodology v1.0 at www.truesourcemetals.com/gmri/methodology.
TS-GMRI Critical Materials (methodology slot — registered, value withheld)
Equal-weighted sibling of the TS-GMRI flagship: every active constituent token contributes 1/N of the index regardless of market cap, base value 100 on 22 June 2026. Captures breadth of the tokenized-metals universe — mid- and small-cap tokens (KAG, XAGM, XU3O8, regional gold tokens) move the gauge as much as XAUT or PAXG. Published daily alongside the cap-weighted TS-GMRI; both variants share the same constituent universe, primary-source data discipline, and OTSFA principle. Methodology v1.0 open at www.truesourcemetals.com/gmri.
Global Metals RWA Index — Equal-Weighted
Registered methodology slot in the TS-GMRI family for ferroalloys: ferrochrome, ferromanganese, ferrosilicon, ferromolybdenum, ferrovanadium, ferronickel. Ferroalloys are essential steelmaking inputs. As of 15 June 2026 no live retail tokens exist at the base date — N=0. The slot is registered for prior-art protection; no value is published until the N>=3 threshold is met. When the threshold is first crossed the sub-index goes live with the same definition; any pre-publication history is shown as BACKTEST / PRO-FORMA — reconstructed using CoinGecko historical caps. Methodology v1.0 at www.truesourcemetals.com/gmri/methodology.
TS-GMRI Ferroalloys (methodology slot — registered, value withheld)
Registered methodology slot in the TS-GMRI family for bulk ferrous: iron ore (hematite, magnetite), DRI pellets. Iron ore is the largest mined commodity by volume globally. As of 15 June 2026 no live retail tokens exist at the base date — N=0. The slot is registered for prior-art protection; no value is published until the N>=3 threshold is met. When the threshold is first crossed the sub-index goes live with the same definition; any pre-publication history is shown as BACKTEST / PRO-FORMA — reconstructed using CoinGecko historical caps. Methodology v1.0 at www.truesourcemetals.com/gmri/methodology.
TS-GMRI Bulk Ferrous (methodology slot — registered, value withheld)
Registered methodology slot in the TS-GMRI family for per-jurisdiction breakdowns of the constituent universe — counting verified issuers grouped by regulator jurisdiction. As of 15 June 2026 the universe has 1 verified issuer per jurisdiction across CH-vault/BVI, US-NYDFS, KY/LI, SG, LI, AE-Dubai. Publication threshold: >=2 verified issuers per jurisdiction. Slot registered for prior-art protection; per-jurisdiction values will publish once the threshold is met in any jurisdiction. Methodology v1.0 at www.truesourcemetals.com/gmri/methodology.
TS-GMRI by Jurisdiction (methodology slot — registered, value withheld)
Registered methodology slot in the TS-GMRI family for light metals: aluminium, magnesium, titanium, beryllium. The slot allows segmentation of the aerospace and EV body-panel narrative independently from broader base or critical material baskets. As of 15 June 2026 no live retail tokens exist at the base date — N=0. The slot is registered for prior-art protection; no value is published until the N>=3 threshold is met. When the threshold is first crossed the sub-index goes live with the same definition; any pre-publication history is shown as BACKTEST / PRO-FORMA — reconstructed using CoinGecko historical caps. Methodology v1.0 at www.truesourcemetals.com/gmri/methodology.
TS-GMRI Light Metals (methodology slot — registered, value withheld)
Registered methodology slot in the TS-GMRI family for minor metals: bismuth, antimony, indium, gallium, germanium, selenium, tellurium, cadmium. Minor metals trade thinly and largely as by-products of base and precious metal production. As of 15 June 2026 no live retail tokens exist at the base date — N=0. The slot is registered for prior-art protection; no value is published until the N>=3 threshold is met. When the threshold is first crossed the sub-index goes live with the same definition; any pre-publication history is shown as BACKTEST / PRO-FORMA — reconstructed using CoinGecko historical caps. Methodology v1.0 at www.truesourcemetals.com/gmri/methodology.
TS-GMRI Minor Metals (methodology slot — registered, value withheld)
Subset of the TS-GMRI family restricted to precious-metals tokens: gold + silver + platinum + palladium. As of 15 June 2026 there are 17 active constituents (15 gold + 2 silver; platinum and palladium have no live retail tokens yet). Cap-weighted, base 100 on 22 June 2026. Broader than TS-GMRI-AU, narrower than the full TS-GMRI — captures the classical precious-metals slice of the tokenized-metals market. Live value at /data/gmri/latest.json (family.live['TS-GMRI-PRE']).
Registered methodology slot in the TS-GMRI family for refractory metals: tungsten, molybdenum, tantalum, niobium, rhenium, vanadium. These metals are strategic inputs for high-temperature alloys, defence electronics, and superalloy turbines. As of 15 June 2026 no live retail tokens exist at the base date — N=0. The slot is registered for prior-art protection; no value is published until the N>=3 threshold is met. When the threshold is first crossed the sub-index goes live with the same definition; any pre-publication history is shown as BACKTEST / PRO-FORMA — reconstructed using CoinGecko historical caps. Methodology v1.0 at www.truesourcemetals.com/gmri/methodology.
TS-GMRI Refractory Metals (methodology slot — registered, value withheld)
Registered methodology slot in the TS-GMRI family for steel: rebar, hot-rolled coil (HRC), billet, stainless steel. Steel is the most produced metal in the world by tonnage. SGX iron-ore-linked products and limited futures contracts exist, but no live retail tokenization of finished steel products as of 15 June 2026 — N=0. The slot is registered for prior-art protection; no value is published until the N>=3 threshold is met. When the threshold is first crossed the sub-index goes live with the same definition; any pre-publication history is shown as BACKTEST / PRO-FORMA — reconstructed using CoinGecko historical caps. Methodology v1.0 at www.truesourcemetals.com/gmri/methodology.
TS-GMRI Steel (methodology slot — registered, value withheld)
The interactive world map of the metals supply chain published by TrueSource Metals™ at hub.truesourcemetals.com/maps/. Toggleable layers: USGS-reported country reserves (25 metals with country-level reserves data, graduated bubbles), exchange warehouse cities (LME network, LBMA London, COMEX NY, SHFE Shanghai bonded), 11 metal-trading exchanges (LME, CME/COMEX, SHFE, SGE, TOCOM, MCX, HKEX, DGCX, Borsa Istanbul, MOEX, B3), top producer HQs, top mines & smelters at operator-published coordinates, major commodity ports, top dry-bulk sea routes (UNCTAD), six metals-relevant rail corridors (Trans-Sib, BAM, China–Europe, Middle Corridor, INSTC, Malmbanan), 50 LBMA Good Delivery refineries, named precious-metal vaults (LBMA London 8 + COMEX NY), 13 sovereign mints, metals-trading free zones & freeports, and 60 mining/metallurgy universities. Renders with Leaflet on OpenStreetMap tiles — no vendor SDKs, no API keys. Every marker links to its primary publisher. First branded as TrueAtlas™ on 17 June 2026.
TrueAtlas™ — the TrueSource Metals interactive map
TrueSource Metals Constitution §17 (True* universe rollout); git commit b511792 (Hub W3: TrueAtlas™ rename).
The ten-instrument calculator suite published by TrueSource Metals™ at hub.truesourcemetals.com/calculators/, plus the standalone RWA Tokenization Pro cost-structure calculator. Tools: Unit Price (10 units across USD/t, USD/oz, USD/lb, USD/kg, RMB/t, EUR/t, troy oz, MTU, karat, gram), Purity, Freight (11 Incoterms with FCL/LCL and demurrage), TCO Aggregator, TCO Pro (80+ field standalone), Mining Recovery & Concentrate Yield (SME / Wills & Finch), NPV / IRR, AISC Builder (WGC 2013), Arbitration Cost Estimator (10 institutions: HKIAC, SIAC, ICC, SCC, CIETAC, VIAC, DIAC, ICDR, LCIA, LME), Demurrage / Despatch (BIMCO 2013 + GENCON 13(a)). All math runs locally in the browser — no inputs sent to any server, no signup, no paywall, live-price auto-fill from the Hub. First branded as TrueCalc™ on 17 June 2026.
TrueCalc™ — the TrueSource Metals calculator suite
TrueSource Metals Constitution §17 (True* universe rollout); git commit b511792 (Hub W3: TrueCalc™ rename).
The 610-term cross-domain metals glossary published by TrueSource Metals™ at hub.truesourcemetals.com/glossary/. Covers 33 domains across metals & commodities, RWA & tokenization, regulation & policy, sustainability (ESG), trade & shipping (full Incoterms 2020 plus 75 logistics terms), financial instruments, logistics & physical handling, TSM Indices and Brand Identity. Every entry maps to a primary-source publisher (LME, LBMA, USGS, ICC, IMO, BIPM, UNECE, ISO, etc.); each term includes attribution and a stable slug for citation. Cross-linked with TrueCalc™ tools, metal pages, the TrueAtlas™ map and the live news feed. First branded as TrueGlossary™ on 17 June 2026.
TrueGlossary™ — the TrueSource Metals reference glossary
TrueSource Metals Constitution §17 (True* universe rollout); git commit 61886ae (Hub W2: TrueGlossary™ rename).
The six-phase educational roadmap for tokenizing physical metals published by TrueSource Metals™ at www.truesourcemetals.com/how-to-tokenize. Configurable for 13 metals (precious: gold, silver, platinum, palladium; base: copper, aluminium, nickel, zinc, lead, tin; battery: lithium, cobalt, manganese), 7 jurisdictions (HK SFC, MAS Singapore, VARA Dubai, FINMA Switzerland, MiCA EU, SEC USA, JFSA Japan) and 7 chains (Ethereum, Polygon, Base, Arbitrum, Avalanche, Solana, Stellar). Includes a RACI matrix of roles vs phases, a generated personalized checklist with copy-as-Markdown and print, and a live RWA news widget pulling the Hub's curated tokenization / RWA / regulator news feed (Tier 0–Tier 2 only — no aggregators). Not financial advice. First branded as TrueTokenize™ on 17 June 2026.
TrueTokenize™ — the TrueSource Metals tokenization roadmap
TrueSource Metals Constitution §17 (True* universe rollout); git commit 4d139a7 (WWW W3: TrueTokenize™ rename).
The proprietary teal shade #2d9da5 (dark mode) / #15656c (light mode), RGB 45·157·165, HSL 184°·57%·41%, Pantone reference 2222 C, used since 23 March 2026 as the unique chromatic identifier of TrueSource Metals across all branded surfaces — wordmark, monogram T/H favicons, header pills, primary buttons, links, splash-screen frame, and merchandise. Used in combination with TSM Gold #c9a84c, Graphite #0f1419 and Cream #f5f4f0, but the teal alone is the protectable element. Distinct from any other metals-information service: Bloomberg Black/Orange, Refinitiv Orange, Fastmarkets Magenta, Platts Blue, Argus Red, LME Grey/Blue, LBMA Gold, CME Green — no recognised competitor uses this teal as primary identifier. First public declaration of brand identity: 14 June 2026 at https://hub.truesourcemetals.com/brand/.
TrueSource Metals — Signature Teal (Brand Colour)
TrueSource Metals Operations Manual §15.5 (Brand Identity); first-use evidence — git commits b1b21ca, 62fa987 and tag v1.0-stable-hk-2026-04-22; public declaration page
Andrey Kuznetsov is the founder of TrueSource Metals and the creator of the TS-GMRI (Global Metals RWA Index) methodology — the first publicly documented weighted composite index for tokenized precious metals. He works at the intersection of physical metals markets, tokenized real-world assets, and index methodology — building the infrastructure to bring the traditional world of physical metals into the tokenized real-world asset era.
Andrey Kuznetsov — Founder, TrueSource Metals
TrueSource Metals — First Edition (Preface / About the Author, June 2026)
Anti-Money Laundering (AML) refers to the body of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. Financial institutions are required to implement AML programmes that include customer due diligence, transaction monitoring, suspicious activity reporting, and record-keeping.
EU directive harmonising the criminalisation of money laundering across member states. AMLD6 expands the list of predicate offences to 22 categories, extends criminal liability to legal persons, and raises maximum prison terms to four years. National transposition deadlines: 3 Dec 2020 (transpose), 3 Jun 2021 (apply).
Sixth EU Anti-Money Laundering Directive (Directive (EU) 2018/1673)
BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) is Germany's integrated financial regulator supervising banks, insurers, securities trading and, since 2020, the crypto-custody business. Under the German Banking Act (KWG §1 (1a)), crypto-custody is a regulated financial service requiring BaFin licence. BaFin also acts as the German competent authority for MiCA.
Federal Financial Supervisory Authority (Germany)
Source: BaFin official website ( and German Banking Act (KWG) §1 (1a)
EU Regulation 2016/1011 and its UK-retained equivalent governing the provision, contribution to, and use of financial benchmarks. Requires administrators to be authorised or registered by a competent authority (FCA in the UK, national regulators in the EU) and to publish a methodology, governance framework, and control policies. Critical benchmarks are subject to additional requirements. Applies to indices used to reference financial instruments, financial contracts, or investment fund performance.
The Bank Secrecy Act of 1970, codified at 31 USC §5311 et seq., is the foundational US AML statute. It establishes recordkeeping and reporting requirements (Currency Transaction Reports, Suspicious Activity Reports, FBAR) for financial institutions, including MSBs registered with FinCEN. The Anti-Money Laundering Act of 2020 modernised the BSA, expanding scope to certain antiquities dealers and authorising the Beneficial Ownership Register under the Corporate Transparency Act.
Anti-Money Laundering Act of 2020 (NDAA 2021)
The body of laws, regulations and procedures to detect, prevent and report the financing of terrorism. CFT is the companion regime to AML, normally referenced jointly as AML/CFT. FATF's 40 Recommendations cover both; Recommendations 5-8 specifically target terrorist-financing.
Counter-Financing of Terrorism (CFT/CTF)
The CFTC is the US federal agency that regulates derivatives markets including futures, options, and swaps on commodities. The CFTC has asserted jurisdiction over Bitcoin and Ether as commodities under the Commodity Exchange Act (7 USC §1a(9)). Token issuers offering derivatives or margin retail products typically require CFTC registration or rely on exemptions.
Commodity Futures Trading Commission (United States)
Source: Commodity Exchange Act 7 USC §1a(9)
Licence category under Singapore's PSA for providers of Digital Payment Token services — including dealing in DPTs, exchange of DPTs, transfer of DPTs, custodial services in DPTs, and arrangement-of-DPT-exchange. From 4 April 2024, MAS expanded scope to capture cross-border services and custodial activities; legacy exemptions ended.
Digital Payment Token Service Licence (Singapore)
MAS PSN02 Notice on Prevention of Money Laundering
Higher-intensity customer due diligence triggered by elevated AML risk — PEP status, high-risk jurisdictions, complex ownership structures, or unusually large/structured transactions. FATF R.10 (Customer Due Diligence) and R.12 (PEPs) require EDD measures including senior-management approval, source-of-wealth verification, enhanced ongoing monitoring.
ESMA is the EU authority responsible for enhancing investor protection and promoting stable, orderly financial markets. Under MiCA (Regulation (EU) 2023/1114), ESMA maintains the public register of authorised Crypto-Asset Service Providers (CASPs) and develops Regulatory Technical Standards. National competent authorities (e.g., BaFin, AMF, CONSOB) issue MiCA licences; ESMA coordinates and supervises significant CASPs.
European Securities and Markets Authority
Source: Regulation (EU) 2023/1114 (MiCA), Title V
The Financial Action Task Force (FATF) is an intergovernmental organisation established by the G7 in 1989 to develop and promote policies to combat money laundering, terrorist financing, and proliferation financing. FATF sets international standards through its Recommendations, monitors countries' compliance, and maintains public lists identifying jurisdictions with strategic deficiencies in their AML and counter-terrorist financing regimes.
FATF's most serious designation — currently North Korea (DPRK) and Iran (Myanmar added Oct 2022). Listing triggers FATF call to apply enhanced due diligence and counter-measures, including possible cessation of correspondent banking relationships.
FATF High-Risk Jurisdictions subject to a Call for Action
Source: FATF Public Statement on High-Risk Jurisdictions
Formally titled 'Jurisdictions under Increased Monitoring', the FATF Grey List names countries with strategic AML/CFT deficiencies that have agreed an action plan with FATF. Listing imposes no automatic counter-measures but typically triggers EDD by international banks. Updated each FATF Plenary (Feb / Jun / Oct).
FATF Jurisdictions under Increased Monitoring
Source: FATF Plenary statements on Jurisdictions under Increased Monitoring
Peer-review process whereby FATF assesses a country's compliance with the 40 Recommendations across two dimensions: technical compliance (legal framework) and effectiveness (real-world outcomes, 11 Immediate Outcomes). Results determine listing in FATF Grey List (jurisdictions under increased monitoring) or Black List (high-risk jurisdictions subject to call-for-action).
FATF Recommendation 16 requires originating and beneficiary VASPs to obtain, hold, and transmit required originator and beneficiary information for virtual-asset transfers above the de-minimis threshold (FATF: USD/EUR 1,000). The June 2019 Interpretive Note extended R.16 to VASPs. Compliance is increasingly enforced via IVMS-101 data schema and Travel Rule messaging protocols (Sumsub, Notabene, TRP, OpenVASP).
Source: FATF Recommendation 16 and 2019 Interpretive Note
The FCA regulates conduct of UK financial services firms and supervises securities markets. Cryptoasset businesses in the UK must register with the FCA under the Money Laundering Regulations 2017 (MLR) for AML purposes. From October 2023, financial promotion of cryptoassets to UK consumers requires FCA-approved communications or authorised-firm sign-off.
Financial Conduct Authority (United Kingdom)
Source: UK Money Laundering Regulations 2017 (as amended)
FinCEN is the bureau of the US Department of the Treasury responsible for safeguarding the financial system from illicit use. Under 31 CFR 1010.100(ff), money transmitters — including persons accepting and transmitting Convertible Virtual Currency (CVC) — are Money Services Businesses (MSBs) and must register with FinCEN, implement AML programmes, and file CTRs and SARs.
Financial Crimes Enforcement Network (US Treasury)
Defined at 31 CFR 1010.100(ff). MSBs include money transmitters, currency dealers, check cashers, and — per FinCEN guidance FIN-2019-G001 — persons who accept and transmit convertible virtual currency (CVC). MSBs must register with FinCEN, implement AML programmes, file SARs (>$2,000) and CTRs (>$10,000), and comply with the Travel Rule (>$3,000).
Money Services Business (FinCEN registration)
FINMA is the independent regulator of Switzerland's financial markets. Under the Swiss DLT Act (in force August 2021), FINMA authorises DLT Trading Facilities, recognises tokens of payment, utility or asset type, and supervises crypto-asset custody under the Banking Act. Switzerland's substance-over-form approach means token classification is based on economic function, not form.
Swiss Financial Market Supervisory Authority
Source: Federal Act on the Adaptation of Federal Law to Developments in DLT (1 Aug 2021)
A new financial-market-infrastructure category created by Switzerland's DLT Act (in force 1 August 2021). A DLT Trading Facility may multilaterally trade DLT securities and additionally provide post-trade services (custody, clearing, settlement) — combining functions previously requiring separate licences. FINMA grants the authorisation.
EU Regulation 2016/679, in force since 25 May 2018, governing the processing of personal data of individuals in the EU/EEA. Applies extraterritorially to any organisation processing EU data subjects’ information, regardless of the organisation’s location. Key requirements: lawful basis for processing, data-subject rights (access, rectification, erasure, portability), breach notification within 72 hours, and Data Protection Impact Assessments for high-risk processing. Fines up to €20 million or 4% of global turnover.
Inter-state standards of the Eurasian Economic Union (EAEU) governing product specifications, test methods, and quality requirements; for metals, ГОСТ standards specify chemical composition, mechanical properties, shape tolerances and marking for aluminium (ГОСТ 11069), copper (ГОСТ 859), nickel (ГОСТ 849), and other metals traded in Russia and the EAEU.
ГОСТ (Gosudarstvennyy Standart — State Standard, Russia/EAEU)
Federal Agency for Technical Regulation and Metrology (Rosstandart), gost.ru
EAEU Technical Regulations, eaeunion.org.
The Hong Kong Monetary Authority (HKMA) is Hong Kong's central banking institution, established on 1 April 1993 by merging the Office of the Exchange Fund and the Office of the Commissioner of Banking. Its principal functions include maintaining currency stability, promoting the safety and stability of Hong Kong's banking system, and managing the Exchange Fund.
Statutory body established under the Hong Kong Science and Technology Parks Corporation Ordinance (Cap. 565) to develop and manage Science Park, Industrial Estates, and INNOPARK. Runs incubation and acceleration programmes (Ideation, Incu-App, Incu-Tech, Incu-Bio, Leading Enterprises Acceleration Programme) providing funding, workspace, and mentorship for tech startups. Complements Cyberport in HK’s innovation-ecosystem architecture.
The JFSA supervises Japan's financial system. Under Article 2(7) of the Payment Services Act of Japan, crypto assets ("Crypto Asset") are regulated, and exchanges must register as Crypto Asset Exchange Service Providers (CAESP) with the JFSA. JFSA delegates self-regulatory oversight to the Japan Virtual and Crypto assets Exchange Association (JVCEA).
Source: Payment Services Act of Japan, Article 2(7)
Registered category under Article 63-2 of Japan's Payment Services Act. Operators must register with the JFSA, segregate customer assets (cold-storage hot-wallet ratio), maintain capital adequacy, and join the JVCEA self-regulatory organisation. Stablecoins were brought under separate regulation by the June 2022 PSA amendment, treating them as Electronic Payment Instruments.
Crypto Asset Exchange Service Provider (Japan)
Source: Japan Payment Services Act, Article 63-2
Indonesian Ministry of Energy and Mineral Resources — the ultimate rule-making authority for the country's oil, gas, mineral and coal sectors. Two directorates concern metals traders: (1) Direktorat Jenderal Mineral dan Batubara (Ditjen Minerba) — sets and publishes HMA/HPM/HBA reference prices, issues mining permits (IUP, IUPK) and enforces the domestic market obligation (DMO); (2) Direktorat Jenderal Ketenagalistrikan handles power infrastructure that underpins smelter build-outs. All ministerial decrees (KEPMEN) covering HPM formulas, royalty rates and export levies are gazetted through the Ministry's JDIH portal at jdih.esdm.go.id, and daily reference-price tables are published at minerba.esdm.go.id/harga_acuan. Indonesia is the world's largest nickel producer and the ESDM regime is therefore a de-facto global reference for nickel-ore, MHP and NPI pricing.
Kementerian Energi dan Sumber Daya Mineral (Republic of Indonesia)
Kementerian ESDM Republik Indonesia — esdm.go.id, jdih.esdm.go.id, minerba.esdm.go.id.
Ministerial Decree of the Indonesian Minister of Energy and Mineral Resources that governs the HPM (Harga Patokan Mineral) formulas for all 19 mineral commodities and four coal grades, effective 15 April 2026 as a replacement for KEPMEN 268.K/MB.01/MEM.B/2025. Key changes vs the 2025 regime: (1) the base nickel-ore corrective factor rises from 17% to 30% at 1.6% Ni; (2) associated minerals Fe, Co and Cr in nickel-laterite ore are now monetised inside the same HPM formula (previously ignored); (3) bauxite ore adds an R-SiO₂ deduction factor (−1 USD/DMT per +0.5% above the 2% reactive silica cap, capped at −3.5 USD/DMT); (4) unit of measurement for ten mineral ores (nickel, bauxite, cobalt, lead, zinc, iron laterite/hematite/magnetite, iron sand, copper, manganese, chromium) switches from USD/DMT to USD/WMT with an explicit (1 − MC) moisture-content multiplier. Every party paying Indonesian royalty, iuran produksi or export levy on covered commodities must use HPM formulas built into 144/2026.
Keputusan Menteri ESDM No. 144.K/MB.01/MEM.B/2026
Kementerian ESDM Republik Indonesia — full text at ; official sosialisasi at minerba.esdm.go.id/berita/minerba/detil/20260413-kepmen-esdm-144-2026-ditetapkan-penguatan-tata-kelola-harga-patokan-mineral-logam-dan-batubara.
The corporate-counterparty equivalent of KYC. KYB requires verification of legal-entity identity, registered address, ownership structure, ultimate beneficial owners (UBO), legitimacy of business activity, and source of funds. FATF Recommendation 10 (R.10) requires CDD on legal persons; R.24 requires beneficial-ownership transparency.
Know Your Business (Customer Due Diligence on legal entities)
Source: FATF Recommendations 10 and 24 (
Know Your Customer (KYC) is the mandatory process by which financial institutions verify the identity of their clients, assess their risk profile, and gather information on the nature and purpose of the business relationship. KYC is a foundational component of Anti-Money Laundering compliance frameworks and is required under financial regulations across major jurisdictions.
MAS is Singapore's central bank and integrated financial regulator. MAS licences Digital Payment Token (DPT) service providers under the Payment Services Act 2019. Stablecoin issuers fall under the dedicated Stablecoin Regulatory Framework (final guidance issued August 2023) covering SGD- and G10-currency-pegged single-currency stablecoins.
Source: Singapore Payment Services Act 2019
The Payment Services Act 2019 (PSA) is Singapore's licensing regime for payment activities, administered by MAS. The PSA recognises seven payment activities; Digital Payment Token (DPT) services — buying/selling tokens or facilitating exchange — are regulated under Section 5. Licensees: Standard Payment Institution (transactions ≤ SGD 3M/month) or Major Payment Institution (above thresholds).
Source: Singapore Payment Services Act 2019 (
Markets in Crypto-Assets (MiCA) is a regulation of the European Union that establishes a comprehensive and harmonised regulatory framework for crypto-assets across all EU member states, covering issuers and service providers for asset-referenced tokens, e-money tokens, and other crypto-assets. Adopted by the European Parliament on 20 April 2023, MiCA has been fully applicable since December 2024 and introduces authorisation, disclosure, and investor protection requirements modelled on existing EU financial services legislation.
Based on: European Commission and ESMA official documentation
Defined in Article 3(1)(15) of MiCA. A legal person authorised under Title V to provide one or more of ten crypto-asset services in the EU — including custody, exchange, execution, advice, placement, transfer, portfolio management. MiCA Title IV obligations on issuers of asset-referenced and e-money tokens apply from 30 June 2024; full CASP regime from 30 December 2024.
Source: Regulation (EU) 2023/1114 Article 3 and Title V
An individual entrusted with prominent public functions — heads of state, senior politicians, judges, military officers, executives of state-owned enterprises — plus family members and close associates. FATF R.12 and EU AMLD require EDD on PEPs: senior-management approval to onboard, source-of-wealth checks, enhanced monitoring. Domestic-PEP risk-based approach permitted under FATF R.12(b).
A regulatory sandbox is a framework established by a financial regulator that allows firms to test innovative products, services, or business models in a live market environment under relaxed regulatory requirements, subject to defined conditions and oversight. The UK's Financial Conduct Authority (FCA) launched the first financial regulatory sandbox in 2015, and the approach has since been adopted by regulators globally, including the HKMA.
Based on: FCA and HKMA official documentation
The Russian federal executive body under the Ministry of Natural Resources that grants, suspends, and revokes subsoil licences (exploration and production) for solid minerals, oil, gas, and underground waters; it administers the State Subsoil Fund and maintains the State Mineral Resources Balance.
Rosnedra (Federal Agency for Subsoil Use)
Rosnedra, 'About the Agency', rosnedra.gov.ru
Law of the Russian Federation 'On the Subsoil' (Zakon o Nedrakh), No. 2395-I (1992, as amended).
Russia's national standards body and the competent authority for ГОСТ/ISO harmonisation; it manages the Federal Information Fund of Technical Regulations and Standards and is responsible for accreditation of conformity assessment bodies under Russian technical regulation law.
Rosstandart (Federal Agency for Technical Regulation and Metrology)
The Russian federal regulator for industrial, environmental, and nuclear safety; it issues operating licences for hazardous production facilities (HIF) including mines, processing plants, and tailing storage facilities, and conducts state supervision under Federal Law 116-FZ on Industrial Safety.
Rostekhnadzor (Federal Environmental, Industrial and Nuclear Supervision Service)
Federal Law No. 116-FZ 'On Industrial Safety of Hazardous Production Facilities' (1997, as amended).
A state-issued permit granting the right to use a defined subsoil block for geological study, exploration, and/or production of mineral resources in Russia; issued by Rosnedra for a fixed term and specifying work programme obligations, royalty rates, and environmental conditions. Cancellation grounds include failure to meet work programme commitments.
Subsoil Use Licence (Russian Subsoil Law)
Law of the Russian Federation 'On the Subsoil' (Zakon o Nedrakh), No. 2395-I (1992, as amended), rosnedra.gov.ru.
Mandatory filing by financial institutions (including MSBs in the US, regulated entities in the UK, EU, Singapore, Japan and most FATF jurisdictions) reporting transactions suspected of involving criminal proceeds or terrorism financing. Filed with the FIU (FinCEN, NCA, AUSTRAC, JAFIC, etc.). Generally subject to a 'tipping-off' prohibition — the subject must not be informed.
Lower-intensity CDD permitted by FATF R.10 where AML/CFT risk has been formally assessed as low. SDD may reduce frequency or scope of identity verification and ongoing monitoring — but never eliminates them. The EU AMLD permits SDD for specific products (e-money below thresholds, certain insurance contracts) subject to risk-assessment evidence.
The SEC regulates US securities markets and primary offerings. Under the Howey Test (SEC v. W.J. Howey Co., 328 U.S. 293 (1946)), a token may constitute an investment contract and thus a security requiring SEC registration unless an exemption (Reg D, Reg S, Reg A+) applies. Many tokenized RWA securities offerings rely on Reg D 506(c) for accredited investors.
Securities and Exchange Commission (United States)
SEC Framework for Investment Contract Analysis of Digital Assets (April 2019)
The Securities and Futures Commission (SFC) is an independent statutory body established in May 1989 pursuant to the Securities and Futures Commission Ordinance to regulate Hong Kong's securities and futures markets. It derives its investigative, remedial, and disciplinary powers from the Securities and Futures Ordinance and is operationally independent of the Hong Kong Government, funded mainly by transaction levies and licensing fees.
Regulated Activity Type 1 under Schedule 5 of Hong Kong's Securities and Futures Ordinance (Cap. 571). A Type 1 licence permits dealing in securities — including security tokens classified as securities under SFO. Virtual-asset trading platforms offering security tokens to professional investors typically combine Type 1 with Type 7.
Source: Securities and Futures Ordinance (Cap. 571), Schedule 5
Regulated Activity Type 7 under Schedule 5 of Hong Kong's SFO. A Type 7 licence is required to operate an Automated Trading Service (ATS) — including a securities-tokens venue. The June 2023 VATP Guidelines created a parallel regime under the AMLO for non-security virtual assets, requiring a VATP licence in addition to or instead of Type 1/Type 7 depending on token classification.
SFC Type 7 — Provision of Automated Trading Services
Regulated Activity Type 9 under Schedule 5 of Hong Kong's SFO covers asset management — including discretionary management of virtual-asset portfolios. SFC's October 2023 Circular allows Type 9 managers to invest more than 10% of NAV in virtual assets subject to terms-and-conditions uplift (custody, valuation, risk).
SFC Circular on Virtual Asset Discretionary Account Management (31 Oct 2023)
International/civil-law equivalent of the US SAR. STRs are filed with the national Financial Intelligence Unit when a transaction is suspected of relating to predicate crime or terrorism financing. Filing thresholds and triggers vary by jurisdiction; FATF R.20 mandates STR regime in all member countries.
The natural person(s) who ultimately owns or controls a customer entity, defined by FATF R.10 as ownership ≥25% (jurisdiction-dependent) or otherwise exercising effective control. The EU AMLD established mandatory UBO registers; the US Corporate Transparency Act (effective 1 Jan 2024) requires UBO reporting to FinCEN.
VARA is the dedicated virtual-asset regulator in the Emirate of Dubai, established under Law No. 4 of 2022. VARA's Rulebooks (Compliance & Risk Management, Custody, Issuance, etc.) set requirements for Virtual Asset Service Providers. Activities are licensed by category — Advisory, Broker-Dealer, Custody, Exchange, Lending & Borrowing, Management & Investment, Transfer & Settlement, and VA Issuance.
Virtual Assets Regulatory Authority (Dubai)
Lowest VARA licence tier under Dubai's Virtual Asset framework. Category 1 permits Virtual Asset Advisory Services — research, analysis, recommendations — but no custody, no client-money handling, no execution. Capital requirements and conduct rules are correspondingly lower than higher categories.
Source: VARA Rulebooks — Advisory Services (
VARA broker-dealer category authorising agency or principal trading of virtual assets on behalf of clients, including order routing and matching. Requires segregated client accounts, conduct-of-business compliance, capital adequacy, and full Compliance & Risk Management Rulebook adherence.
VARA Category 2 — Broker-Dealer Services
Source: VARA Rulebooks — Broker-Dealer Services
A Virtual Asset Service Provider (VASP) is a term defined by the Financial Action Task Force (FATF) to describe any natural or legal person that, as a business on behalf of another, conducts activities such as exchanging virtual assets for fiat currency, transferring virtual assets, or safekeeping and administering virtual assets. VASPs are required under FATF standards to implement the same AML and counter-terrorist financing (CTF) controls as traditional financial institutions.
Under the June 2023 SFC Guidelines for Virtual Asset Trading Platform Operators, any centralised platform offering trading of virtual assets in Hong Kong must hold a VATP licence under the AMLO. The framework includes mandatory token due diligence, segregated custody (98% cold storage), insurance, and — from August 2024 — retail access for SFC-approved large-cap tokens.
Virtual Asset Trading Platform (Hong Kong SFC regime)
Voluntary global AML standards published by the Wolfsberg Group — an association of 12 global banks — covering correspondent banking, private banking, trade finance, and digital asset banking. The 2022 Wolfsberg Statement on Digital Assets sets industry expectations for banks providing services to VASPs.
Process of attesting that a wallet belongs to a person meeting jurisdictional thresholds: US Reg D 506(c) (USD 200k income / USD 1M net worth excluding primary residence, or qualifying professional certifications), EU MiFID II Professional Client, HK SFC Professional Investor (HKD 8M portfolio), Singapore Accredited Investor (SGD 2M net assets). On-chain verification typically uses signed attestations from a registered verification agent.
Accredited / Qualified Investor On-chain Verification
Cross-chain or cross-issuer token movement primitive: tokens are destroyed (burned) on the source ledger and an equivalent quantity is created (minted) on the destination ledger, with both events attested by an authorised operator or oracle. Used in compliance-conserving bridges to ensure conservation of supply and prevent double-spend while honouring jurisdiction-specific whitelists.
Burn-and-Mint (Compliance Bridge Pattern)
On-chain data source that provides regulatory-status information (whitelisted address, sanctioned address, jurisdiction restriction, accredited-investor status) to token contracts for transfer-time gating. Compliance oracles are typically operated by KYC providers (Sumsub, Onfido, Persona) or sanctions-data providers (Chainalysis, Elliptic, TRM) and may be cryptographically attested.
Source: Chainalysis Sanctions Oracle documentation
Periodic verification by an independent third party (typically a Big 4 or specialised audit firm) that the off-chain reserves backing a tokenized RWA match outstanding token supply. Required by MAS Stablecoin Framework (monthly attestation), MiCA for asset-referenced tokens, and NYDFS guidance on USD stablecoin issuance.
Source: MAS Stablecoin Regulatory Framework
Composite security-token standard combining ERC-1410 (partially fungible token), ERC-1594 (core security-token operations: transfer-with-data, force transfer, document attachment), ERC-1643 (document management), and ERC-1644 (controller operations). Designed for permissioned-transfer scenarios where compliance hooks may block or override transfers.
Source: ERC-1400 EIP proposal (Polymath)
Technical standard for fungible tokens on the Ethereum blockchain, proposed by Fabian Vogelsteller in November 2015 and formalised as EIP-20. Defines a common interface (six mandatory functions: totalSupply, balanceOf, transfer, transferFrom, approve, allowance; two mandatory events: Transfer, Approval) that all compliant tokens must implement, enabling interoperability with wallets, exchanges, and smart contracts. The vast majority of tokenized metals (PAXG, XAUT, KAG, XAUM) are ERC-20 tokens on Ethereum mainnet.
Source: Ethereum Improvement Proposal EIP-20 (
Open-source permissioned-token standard for security tokens, developed by Tokeny and standardised as ERC-3643 in 2023. Combines an ERC-20-compatible token with three pluggable on-chain modules: Identity Registry (ONCHAINID), Compliance contract (transfer rules), and Token contract (state). Adopted by issuers in MiCA-regulated and SFC-licensed contexts.
T-REX Token for Regulated EXchanges Standard
Open data standard for FATF Travel Rule originator/beneficiary payloads, published 2020 by the Joint Working Group (InterVASP), comprising FATF VASP delegates and industry. IVMS-101 defines structured fields for natural-person and legal-person identifiers, addresses, account references, and national IDs.
Defined in MiCA Article 3(1)(6): a crypto-asset that aims to maintain stable value by referencing another value or right, or a combination thereof, including one or more official currencies. ART issuers require authorisation under MiCA Title III, with own-funds requirements, custody segregation, and reserves obligations. Applies from 30 June 2024.
Source: Regulation (EU) 2023/1114 Article 3 and Title III
Defined in MiCA Article 3(1)(7): a crypto-asset purporting to maintain a stable value by referencing the value of one official currency. EMTs are treated as electronic money under EU EMD2 and must be issued by an authorised credit institution or e-money institution, with 1:1 reserve in safeguarded accounts. Applies from 30 June 2024.
Source: Regulation (EU) 2023/1114 Article 3 and Title IV
Pre-disclosed framework governing how an issuer may upgrade a deployed token contract — e.g., redeploying to a newer standard (ERC-20 → ERC-3643), migrating to a different chain, or patching a critical bug. Migration mechanisms typically include holder-balance snapshot, redemption window, and migration smart contract. Required disclosure under MiCA whitepaper (Article 6).
Token Migration / Upgrade Governance Policy
Source: MiCA Article 6 (Whitepaper content); industry best practice
Free, open-source protocol that provides scalable, verifiable, and independent timestamping of arbitrary data by anchoring cryptographic commitments to the Bitcoin blockchain. Created by Peter Todd in 2016. Uses Merkle-tree aggregation so unlimited timestamps can be committed in a single Bitcoin transaction. Once anchored, the timestamp is as immutable as Bitcoin itself. Used by TrueSource Metals to timestamp methodology documents, index snapshots, and priority-date evidence for the TS-GMRI Reference Index.
Source: OpenTimestamps protocol specification (
Smart-contract function invoked on every token transfer that checks compliance preconditions (whitelist membership of sender and recipient, sanctions screening, jurisdictional restriction, lock-up period) and reverts the transfer if any condition fails. Implemented as `_beforeTokenTransfer` override in OpenZeppelin pattern, or via dedicated Compliance contract in ERC-3643.
Permissioned Transfer Hook (Compliance Gate)
On-chain or cryptographically-verifiable evidence that the reserves backing a tokenized asset match (or exceed) outstanding token supply. Methodologies: (1) Merkle-tree liability proof + auditor-signed asset attestation, (2) on-chain reserve wallet with continuous data-feed reporting (Chainlink Proof-of-Reserve), (3) IPFS-pinned attestor reports. Distinct from full audit but complementary.
Proof-of-Reserve Cryptographic Attestation
Source: Chainlink Proof-of-Reserve documentation; industry post-FTX practice 2023
Functions in compliance-aware token standards (ERC-1400 controllerTransfer, ERC-3643 forcedTransfer) that allow the authorised issuer/operator to override a token holder's control under regulatory or court order — for example, returning tokens to a victim following theft, freezing sanctioned addresses, or executing inheritance. The capability differentiates security tokens from purely autonomous ERC-20 assets.
Issuer Controller Functions — Force Transfer & Recovery
Source: ERC-1644 Controller Token Operation Standard
Mandatory pre-offer disclosure document under MiCA Article 6 for crypto-assets other than ART/EMT. Must cover issuer information, project description, technology, rights and obligations of holders, risks, energy consumption (Article 6(1)(j)), and a clear summary. Notification to the competent national authority is required; ART and EMT issuers have heavier licensing-grade obligations.
Source: Regulation (EU) 2023/1114 Article 6 and Annex I
Protocol-level transmission of originator and beneficiary information between two VASPs before or alongside a virtual-asset transfer above the FATF threshold. Standards: IVMS-101 (data model), TRP / OpenVASP / Sygna / Veriscope / Notabene (messaging). Compliance is enforced by national regulators (FinCEN, MAS, JFSA, FCA).
A list of addresses authorised to hold or transact a permissioned security token, maintained on-chain (typically in the token contract or a paired registry contract). Off-chain KYC/AML verification populates the whitelist; non-whitelisted transfers revert. Examples: ERC-1400, ERC-3643 (T-REX), Polymesh permissioning model.
On-chain Whitelist / Permissioned Token Allowlist
Source: ERC-3643 (T-REX) standard documentation
US CBP electronic cargo manifest filed by ocean carriers 24 hours before loading at foreign port. Failure to file incurs $5,000 penalty per shipment.
US Customs and Border Protection — cargo security
Additional duty imposed on imports sold below "normal value" (typically below domestic price in the exporter's home market). Authorised under WTO Anti-Dumping Agreement.
World Trade Organization — Article VI GATT 1994
Licensed agent acting for an importer/exporter to file customs declarations, pay duties, and submit security data (ISF, ENS, AMS). Regulated by national customs authority.
US Customs and Border Protection — broker licensing
Additional duty offsetting subsidies granted by the exporter's government. Authorised under WTO Agreement on Subsidies and Countervailing Measures.
World Trade Organization — Subsidies and Countervailing Measures
A refund or remission of customs duties paid on imported goods that are subsequently re-exported, used in the manufacture of exported products, or entered into a free zone. The WCO Revised Kyoto Convention Specific Annex F Chapter 1 defines drawback as 'the amount of import duties and taxes repaid under the drawback procedure.'
Duty Drawback / Relief from Import Duties
WCO Revised Kyoto Convention (1999), Specific Annex F, Chapter 1: Relief from Import Duties and Taxes on Goods for Subsequent Exportation
EU equivalent of US ISF: pre-arrival security declaration filed under the Union Customs Code before goods enter the EU customs territory. Implemented via the ICS2 system.
European Commission — Import Control System 2
Fee levied by the producing country on metals/ore exported, typically a % of FOB value or per-unit charge. Used to capture resource rent (e.g., Chile copper, Indonesia nickel).
Country-specific; references: national mining laws (e.g., Chile Royalty Law 21.591, Indonesia Mining Law)
A designated geographic area—such as a free port, bonded warehouse, or special economic zone—where goods may be stored, processed, or transshipped without payment of customs duties pending re-export or customs clearance. The WCO Revised Kyoto Convention Specific Annex D defines free zones as 'parts of the territory of a Contracting Party where any goods introduced are generally regarded, insofar as import duties and taxes are concerned, as being outside the Customs territory.'
Free Trade Zone / Bonded Warehouse / Customs-Controlled Area
WCO Revised Kyoto Convention (1999), Specific Annex D, Chapter 2: Free Zones
A six-digit international product classification code under the Harmonized Commodity Description and Coding System developed by the World Customs Organization. The HS comprises over 5,000 commodity groups used by more than 200 countries as the basis for customs tariffs and trade statistics; over 98% of world merchandise trade is classified in HS terms. Countries may extend beyond six digits for national tariff purposes.
Harmonized System / Harmonized Tariff Schedule Code
WCO International Convention on the Harmonized Commodity Description and Coding System; wcoomd.org, 'What is the Harmonized System?'
US 10-digit extension of the WCO HS code, maintained by the US International Trade Commission. Determines US import duty rates, anti-dumping orders, and statistical reporting.
US International Trade Commission — Harmonized Tariff Schedule
Tax levied on imported goods, computed as % of customs value (ad valorem) or fixed per unit (specific). Rates from national tariff schedules; preferential rates under FTAs.
WTO Customs Valuation Agreement (Article VII GATT 1994)
Taxes levied by national customs authorities on goods crossing international borders. Import duties are bound in each WTO Member's Schedule of Concessions under GATT Article II; Members may not apply rates above bound levels. Export duties are generally not prohibited by WTO law but are subject to some free-trade agreement disciplines.
WTO General Agreement on Tariffs and Trade (GATT 1994), Article II (Schedules of Concessions)
WCO International Convention on the Harmonized System
US CBP filing by the importer 24 hours before vessel loading at foreign port. 10 data elements from importer + 2 from carrier. Late filing penalty up to $5,000.
US Customs and Border Protection — Importer Security Filing
Criteria used to determine the country of origin of a product for purposes of applying trade policy measures including tariff preferences, quotas, anti-dumping duties, and countervailing duties. The WTO Agreement on Rules of Origin (Annex 1A to the WTO Agreement) governs non-preferential rules and established a harmonisation work programme; preferential rules are agreed in FTAs.
Rules of Origin (Preferential and Non-Preferential)
WTO Agreement on Rules of Origin (Marrakesh Agreement Annex 1A, 1994)
WCO Revised Kyoto Convention Specific Annex K; wto.org trade topics
The prices charged between associated enterprises (affiliates of a multinational group) for goods, services, or intangibles. The OECD arm's length principle—codified in OECD Transfer Pricing Guidelines 2022—requires that these prices reflect what independent parties would agree. BEPS Actions 8–10 aligned transfer pricing outcomes with value creation; Action 13 introduced country-by-country reporting (CbCR).
Transfer Pricing (OECD BEPS Actions 8–10 and 13)
OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2022
OECD BEPS Action Plan Actions 8–10 (2015 Final Reports) and Action 13 (CbCR); oecd.org
Portion of import VAT that the importer can reclaim against output VAT in the destination country. Non-recoverable VAT becomes a real cost; recovery rates depend on the importer's VAT registration status.
Indirect tax levied on the supply of goods and services. Under EU VAT Directive 2006/112/EC Article 344, investment-grade gold (minimum 995 fineness for bars, 900 for coins) is VAT-exempt. The UK VAT Terminal Markets Order extends relief to transactions on LBMA-listed and LME markets. GST treatment varies by jurisdiction and metal type.
Value Added Tax / Goods and Services Tax on Metal Trades
EU Council Directive 2006/112/EC (VAT Directive), Articles 344–356 (special scheme for investment gold)
UK VAT Act 1994 and Terminal Markets Order (SI 1973/173 as amended)
The WTO Agreement on Implementation of Article VII of GATT 1994 establishes a fair, uniform, and neutral system for valuing imported goods for customs duty purposes. The primary method is transaction value (price actually paid or payable); five fallback methods apply sequentially. The Agreement prohibits arbitrary or fictitious customs values.
WTO Agreement on Customs Valuation (Article VII GATT Implementation)
WTO Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (Customs Valuation Agreement), Articles 1–7; wto.org
The Carbon Border Adjustment Mechanism (CBAM) is the European Union's regulatory tool that places a carbon price on imports of carbon-intensive goods entering the EU, ensuring that the carbon cost of imports is equivalent to that borne by EU producers under the EU Emissions Trading System. CBAM initially covers cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen, with importers required to purchase CBAM certificates corresponding to the embedded emissions in their goods.
Based on: European Commission official documentation
Critical minerals are minerals or elements designated as essential to a nation's economic or national security, characterised by supply chains that are vulnerable to disruption and an absence of viable substitutes in key applications. The United States formally defined critical minerals in the Energy Act of 2020 as those essential to the economy or national security with a supply chain vulnerable to disruption; the EU maintains a parallel list under the Critical Raw Materials Act.
Based on: U.S. Geological Survey and European Commission official documentation
The Critical Raw Materials Act (CRMA) is a European Union regulation adopted in 2024 that aims to secure the EU's access to a sustainable supply of critical and strategic raw materials essential for green, digital, defence, and aerospace technologies. It establishes domestic benchmarks for extraction, processing, and recycling of strategic raw materials, streamlines permitting for critical raw materials projects, diversifies import sources, and creates a European Critical Raw Materials Board to coordinate implementation.
Export controls are government-imposed legal restrictions on the export, re-export, or transfer of specific goods, software, technology, and services to foreign countries or persons, typically to protect national security, foreign policy objectives, or prevent proliferation of weapons. In the United States, export controls on dual-use items are administered by the Bureau of Industry and Security (BIS) under the Export Administration Regulations (EAR).
Based on: U.S. Department of Commerce BIS official documentation
The Inflation Reduction Act (IRA) is a U.S. federal law enacted in 2022 that includes significant provisions for clean energy manufacturing and critical minerals. Among its key mechanisms is a tax credit under Section 45X for domestic producers of critical minerals, and eligibility requirements for electric vehicle tax credits that mandate a specified percentage of battery critical minerals be extracted or processed in the United States or countries with a U.S. free trade agreement.
Based on: U.S. Department of the Treasury and IRS official documentation
Intergovernmental economic organisation of 38 member countries founded 1961 to stimulate economic progress and world trade. Publishes standards, guidelines, and comparative statistics used in policy design worldwide. In metals context: the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas is the reference framework adopted by LBMA Responsible Gold Guidance, LPPM Responsible Platinum & Palladium Guidance, and the London Metal Exchange Responsible Sourcing standard.
The OECD Due Diligence Guidance is a voluntary framework developed by the Organisation for Economic Co-operation and Development (OECD) that provides detailed recommendations to help companies identify and mitigate risks of contributing to conflict, human rights abuses, or other harms through their mineral sourcing decisions. It outlines a five-step risk-based due diligence process and is recognised internationally as the baseline standard for responsible mineral supply chain management.
Sanctions are coercive measures imposed by governments or international bodies that restrict or prohibit financial transactions, trade, or other dealings with designated countries, entities, or individuals, typically to achieve foreign policy, national security, or human rights objectives. Sanctions can take the form of asset freezes, trade embargoes, travel bans, or restrictions on specific sectors such as banking, energy, or arms.
Based on: U.S. Department of the Treasury OFAC and UN official documentation
A tariff is a tax levied by a government on goods imported from other countries, typically expressed as a percentage of the goods' value (ad valorem) or as a fixed amount per unit (specific tariff). Tariffs are used to generate government revenue, protect domestic industries from foreign competition, and as instruments of trade policy.
The World Trade Organization (WTO), established on 1 January 1995 pursuant to the Marrakesh Agreement, is the principal intergovernmental organisation that regulates and facilitates international trade among its member countries. It provides a framework for negotiating trade agreements, operates a binding dispute settlement system, and administers a set of agreements covering trade in goods, services, and intellectual property.
In ad hoc arbitration, parties manage the procedure themselves without an administering institution, often using the UNCITRAL Arbitration Rules as a procedural framework. In institutional arbitration, a designated institution (LCIA, ICC, HKIAC, SIAC, etc.) administers the case, appoints arbitrators, and reviews awards. The UNCITRAL Rules 2013 are used in both modes.
Ad Hoc Arbitration versus Institutional Arbitration
UNCITRAL Arbitration Rules 2013 (UN General Assembly Resolution 68/109): Article 1, paragraph 4; uncitral.un.org
A contract provision specifying which national legal system governs the interpretation and enforcement of the agreement. English law is the dominant governing law for international metals trading contracts, LME standard forms, and LCIA-referred disputes; New York law governs many SEC-registered project bonds. The choice of governing law is separate from the seat of arbitration: a contract may be governed by English law but seated in Singapore. In offtake contracts with African state-owned miners, governing law determines whether sovereign immunity or stabilisation clauses are operative.
A procedural mechanism available in most major institutional rules (LCIA 2020 Article 9, HKIAC 2024, SIAC 2025, ICC 2021) allowing a party to obtain urgent interim relief — asset freezing orders, injunctions, or preservation orders — before the main tribunal is constituted. The emergency arbitrator is appointed within 24–48 hours and must issue a decision within 14–15 days. In metals trade, emergency arbitrator relief is used to prevent disposal of a cargo, freeze funds held in escrow, or stop a wrongful drawdown under a standby letter of credit pending the full arbitration.
A binding resolution procedure where a qualified independent expert (rather than an arbitral tribunal) determines a specific technical or factual issue—such as an assay dispute—and the decision is contractually final. The LBMA Good Delivery Rules use LBMA-appointed referees to resolve conflicting assays; LME contracts may refer quality disputes to an expert rather than full arbitration.
Expert Determination / Technical Expert Referee
LBMA Good Delivery Rules (2025 edition), Section 4.1 and Annex C (Referee procedures)
LME Rulebook Part 8 (arbitration) and market practice for technical quality disputes
A leading Asian arbitration institution administering disputes under the HKIAC Administered Arbitration Rules 2018 (in force 1 November 2018). The 2018 Rules introduced shortened emergency arbitrator time limits (appointment within 24 hours), an early-determination procedure, and third-party funding provisions. The default seat is Hong Kong absent party agreement.
Hong Kong International Arbitration Centre
HKIAC Administered Arbitration Rules 2018, Schedule 4 (Emergency Arbitrator Procedure), paragraphs 4 and 9; hkiac.org
World business organisation founded 1919, based in Paris. Publishes the Incoterms rules (11 standardised trade terms defining seller/buyer obligations for cost, risk, and logistics — latest revision Incoterms 2020), UCP 600 (Uniform Customs and Practice for Documentary Credits), URDG 758 (Uniform Rules for Demand Guarantees), and administers the ICC International Court of Arbitration — one of the world’s leading arbitral institutions for cross-border commercial disputes, including metals-trade cases.
Arbitration administered by the ICC International Court of Arbitration under the ICC Arbitration Rules 2021 (in force 1 January 2021). The ICC Court does not itself resolve disputes but scrutinises and approves all awards rendered. The date of commencement is when the Secretariat receives the Request; the arbitral tribunal draws up Terms of Reference under Article 23.
International Chamber of Commerce Arbitration
ICC Rules of Arbitration 2021, Articles 1, 4(2), 23; iccwbo.org
One of the world's leading international arbitration institutions, administering disputes under the LCIA Arbitration Rules 2020 (in force 1 October 2020). The LCIA Court oversees case administration, appoints and challenges arbitrators, and sets procedural timetables. Rules permit an Emergency Arbitrator application before or concurrent with the Request for Arbitration.
London Court of International Arbitration
LCIA Arbitration Rules 2020, effective 1 October 2020 (Articles 1, 5, 9B)
Arbitration conducted by members of the London Maritime Arbitrators Association under the LMAA Terms 2021 (in force 1 May 2021). Unlike administered institutions, LMAA is a self-regulatory body: parties appoint individual LMAA members directly, without institutional supervision. It is the dominant forum for dry bulk and tanker charter party disputes — including disputes over demurrage, NOR, laytime, and cargo loss arising from iron ore, coal, bauxite, and copper concentrate shipments. Awards are made under the English Arbitration Act 1996.
A mandatory dispute-resolution procedure under the LME Rulebook for disputes between Members arising out of LME contracts. Part 8 of the LME Rulebook establishes the arbitration framework, appointing an arbitral tribunal whose award is binding on the parties; disputes may also be referred to an Appeal Arbitration Panel.
London Metal Exchange Arbitration (Part 8 LME Rulebook)
LME Rulebook (30 March 2026 release), Part 8: Arbitration and Appeals
A consensual, confidential process in which a neutral mediator facilitates negotiated settlement between disputing parties without imposing a binding decision. The ICC Mediation Rules 2021 (successor to the 2014 Rules) provide an institutional framework; parties may request mediation before or during arbitration. HKIAC also administers mediation proceedings.
ICC Mediation Rules 2021 (updated from ICC Mediation Rules 2014), Article 1; iccwbo.org
The principal multilateral treaty governing the enforcement of foreign arbitral awards, adopted by the United Nations on 10 June 1958 and entered into force 7 June 1959. Contracting States must recognise and enforce arbitral awards made in other Contracting States as if they were domestic awards, and must give effect to arbitration agreements by staying court proceedings. Refusal grounds are limited (Article V).
Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958)
UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958), Articles I, II, V, XII; uncitral.un.org
The Arbitration Institute of the Stockholm Chamber of Commerce administers international commercial and investment arbitrations. The SCC Board (not a court of arbitration) administers cases and may refer disputes to a sole arbitrator or tribunal; the SCC also has an emergency arbitrator procedure. Stockholm is a frequently chosen neutral seat for East-West and energy disputes.
Stockholm Chamber of Commerce Arbitration Institute
SCC Arbitration Rules (2017 edition); sccinstitute.com
The legal domicile of an arbitration, determining the applicable curial (procedural) law, the supervisory courts, and the nationality of the award for enforcement purposes. The seat is distinct from the physical venue of hearings. Under ICC Rules 2021 Article 18(1), the ICC Court fixes the seat absent party agreement; under SIAC Rules 2016 Rule 21.1, the Tribunal determines it absent agreement.
ICC Arbitration Rules 2021, Article 18(1), Article 32(3)
HKIAC Rules 2018, Schedule 4 paragraph 9
A leading Asian arbitration institution administering disputes under the SIAC Rules 2016 (6th Edition, in force 1 August 2016). Key features include an expedited procedure (Rule 5) with a six-month award deadline, an emergency arbitrator procedure requiring appointment within one business day (Schedule 1), and an early dismissal procedure (Rule 29).
Singapore International Arbitration Centre
SIAC Arbitration Rules 2016, Rules 1.3, 5.1, 5.2, 29, Schedule 1 paragraphs 3 and 8; siac.org.sg
The doctrine that a state or its instrumentalities (including state-owned mining companies) cannot be sued or have their assets seized without consent. In offtake agreements with DRC, Guinea, Zambia, or Chilean state miners, counterparties must obtain an express waiver of sovereign immunity and agreement to arbitrate in the contract. The UK State Immunity Act 1978 and the US Foreign Sovereign Immunities Act 1976 both allow waivers; without one, enforcement of an arbitral award against state assets is severely constrained. This is a critical drafting consideration in any African or Latin American sovereign-linked mining deal.
A comprehensive set of procedural rules for international arbitration published by the UN Commission on International Trade Law, widely used in ad hoc and institutionally administered arbitrations. The 2013 revision added Article 1(4) incorporating the UNCITRAL Transparency Rules for treaty-based investor-State arbitrations commenced under investment treaties on or after 1 April 2014.
UNCITRAL Arbitration Rules (2013 Revision)
UNCITRAL Arbitration Rules (with Article 1(4) as adopted in 2013), UN General Assembly Resolution 68/109; uncitral.un.org
Carbon Intensity is the quantity of greenhouse-gas emissions (expressed as t CO₂-equivalent) released per unit of refined metal output (typically per tonne; for gold per troy ounce). Reported separately by Scope 1 (direct), Scope 2 (purchased energy), and sometimes Scope 3 (value-chain). Industry benchmark global averages: aluminium 15.1 t CO₂e/t (IAI 2022), steel 1.92 t CO₂/t (worldsteel 2024), copper 4.6 t CO₂e/t (ICA 2022), gold 792 kg CO₂e/oz (S&P/Skarn 2023), nickel 13 t CO₂e/t (Argus/CarbonChain 2024). Facility-level CI is the metric that exposes the spread between fossil-powered smelters (e.g. coal-grid aluminium at 15-20 t/t) and hydropower/renewable facilities (e.g. Hydro REDUXA at <4 t/t, SSAB HYBRIT at <0.05 t/t). TSM Maps Carbon Intensity Atlas colours each producer marker by ratio versus its metal's global average so comparisons are honest across metals with different absolute scales.
Carbon Intensity per Unit of Metal Produced
Based on: IAI, worldsteel, ICA, S&P Global, Argus/CarbonChain primary sector reports
Carbon neutrality refers to a state in which a company or entity's greenhouse gas emissions are balanced by equivalent carbon offset activities, typically focused on carbon dioxide. Net zero is a more comprehensive standard requiring that all greenhouse gas emissions across Scopes 1, 2, and 3 are reduced as far as possible and that any residual emissions are counterbalanced through verified carbon removal rather than avoidance offsets.
Based on: Science Based Targets initiative (SBTi) and IPCC official documentation
A circular economy is an economic model designed to eliminate waste and pollution by keeping products, components, and materials in use at their highest value for as long as possible, in contrast to the traditional linear take-make-waste model. It is based on three principles: eliminate waste and pollution, circulate products and materials, and regenerate natural systems.
Based on: Ellen MacArthur Foundation official documentation
Conflict minerals are minerals mined in conflict-affected and high-risk areas (CAHRAs) where their extraction has been linked to the financing of armed groups or to serious human rights violations. The term is most commonly associated with tin, tungsten, tantalum, and gold (collectively 3TG), which are subject to mandatory supply chain due diligence disclosure requirements under U.S. law (Dodd-Frank Act Section 1502) and EU regulation.
Based on: SEC, EU Conflict Minerals Regulation, and OECD official documentation
EU Directive 2022/2464 requiring large companies and listed SMEs to report sustainability information under European Sustainability Reporting Standards (ESRS) starting from financial years 2024–2026 depending on company size; it introduces mandatory double-materiality assessments and third-party assurance.
Corporate Sustainability Reporting Directive (EU)
European Commission, Directive 2022/2464/EU (CSRD)
A reporting principle requiring companies to assess both financial materiality (how sustainability issues affect the company's financial performance) and impact materiality (how the company's activities affect society and the environment); mandated under the EU CSRD/ESRS framework and distinct from the single-materiality approach of IFRS S1/S2.
EFRAG, 'ESRS 1 General Requirements' (2023), §§ 22–47, efrag.org.
EITI — Extractive Industries Transparency Initiative
Global multi-stakeholder standard that requires implementing countries to disclose payments by extractive companies and revenues received by governments from oil, gas and mining, alongside the contracts, licences and beneficial ownership underlying those revenues. Founded in 2003; as of the latest EITI Standard (2023) over 50 implementing countries publish annual EITI Reports. Mineral-producing EITI countries include DRC, Zambia, Mongolia, Peru, Mexico, Mozambique, Indonesia, Kazakhstan and many others.
CO₂-equivalent emissions per tonne of metal produced, covering Scope 1 + Scope 2 (and sometimes Scope 3 upstream). Reported under CBAM for EU imports and Battery Regulation for batteries.
European Commission — Carbon Border Adjustment Mechanism (Reg. 2023/956)
A voluntary risk-management framework adopted by financial institutions (Equator Principles Financial Institutions, EPFIs) for determining, assessing and managing environmental and social risk in project finance. Applies to projects with a total capital cost of US$10 million or more. Aligned with IFC Performance Standards. As of 2024, 138 EPFIs in 38 countries have adopted the framework. Mining and metals projects frequently require Equator-aligned environmental and social impact assessment (ESIA) for senior debt.
ESG stands for Environmental, Social, and Governance — a framework used to evaluate a company's management of risks and opportunities related to environmental stewardship, social responsibility, and corporate governance. ESG criteria are used by investors, regulators, and other stakeholders to assess a company's long-term sustainability, ethical conduct, and potential non-financial risks.
Based on: UN Principles for Responsible Investment and ESMA official documentation
Sum of CBAM certificate cost, EU Battery Passport compliance fees and other ESG-driven levies applied to a shipment in the TCO model. CBAM phase-in: free allowances reduce from 97.5% (2026) to 0% (2034); reporting mandatory since Oct 2023, financial obligation from Jan 2026.
Mandatory digital record of every EV/industrial battery sold in the EU from 2027, containing material origin, carbon footprint, recycled content, and supply-chain due-diligence data. Required under EU Battery Regulation 2023/1542.
European Parliament and Council — Regulation (EU) 2023/1542
A classification system established by EU Regulation 2020/852 defining which economic activities are environmentally sustainable across six environmental objectives; it requires large companies in scope of the NFRD/CSRD to disclose what proportion of their turnover, capex, and opex is Taxonomy-aligned.
European Commission, Regulation (EU) 2020/852
A modular set of international reporting standards published by the Global Reporting Initiative that companies use to disclose their environmental, social, and governance (ESG) impacts to stakeholders; the 2021 Universal Standards (GRI 1, 2, 3) replaced the G4 framework and require a double-materiality assessment.
Global Reporting Initiative, 'GRI Universal Standards 2021'
Eight performance standards published by the International Finance Corporation (IFC, World Bank Group) defining clients' responsibilities for managing environmental and social risks. PS1 (assessment and management system), PS2 (labour), PS3 (resource efficiency), PS4 (community health and safety), PS5 (land acquisition and involuntary resettlement), PS6 (biodiversity and ecosystem services), PS7 (Indigenous Peoples) and PS8 (cultural heritage). PS3, PS5, PS6 and PS7 are routinely invoked in metals-mining project finance and form the basis of the Equator Principles.
An ISSB standard effective for annual reporting periods beginning 1 January 2024 that requires companies to disclose material sustainability-related risks and opportunities in line with the TCFD framework; it establishes general requirements applicable across all sustainability topics.
IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information
An ISSB standard effective 1 January 2024 that mandates disclosure of climate-related risks and opportunities including governance, strategy (physical and transition scenarios), risk management, and metrics including Scope 1, 2, and 3 greenhouse gas emissions; closely aligned with TCFD recommendations.
The Initiative for Responsible Mining Assurance (IRMA) is a multi-stakeholder, non-profit organisation that operates an independent, third-party assurance programme for industrial-scale mine sites, covering all mined materials. IRMA's standard assesses mine performance across environmental and social criteria, and its governance includes equal representation from industry, civil society, affected communities, and purchasers of mined materials.
Initiative for Responsible Mining Assurance
International standard for environmental management systems (EMS). Certifies that an organisation has a structured approach to identifying, controlling, and reducing environmental impacts.
International standard for quality management systems. Certifies that an organisation's products and services consistently meet customer and regulatory requirements.
A body established by the IFRS Foundation in 2021 to develop a global baseline of investor-focused sustainability disclosure standards; it absorbed the SASB, CDSB, TCFD, and IASB climate projects and published IFRS S1 and IFRS S2 in 2023.
International Sustainability Standards Board
Mandatory due-diligence framework for LBMA Good Delivery refiners, requiring chain-of-custody audits to prevent conflict gold. Aligned with OECD Due Diligence Guidance Annex II.
London Bullion Market Association — responsible sourcing
A Life Cycle Assessment (LCA) is a standardised methodology, codified in ISO 14040 and ISO 14044, for evaluating the environmental impacts of a product, process, or service across its entire life cycle — from raw material extraction through production, use, and end-of-life disposal or recycling. LCA follows four defined phases: goal and scope definition, life cycle inventory analysis, life cycle impact assessment, and interpretation.
Based on: ISO 14040 and ISO 14044 official documentation
Quantified greenhouse-gas emissions associated with a single unit of a specific product over a defined life-cycle scope (cradle-to-gate or cradle-to-grave), expressed in kg CO₂-equivalent per unit (e.g., kg CO₂e / tonne of refined copper cathode). Methodology defined under ISO 14067 and the GHG Protocol Product Standard. PCF is the unit of measure used by LMEpassport, the EU Battery Regulation, and emerging metals-passport disclosures, distinct from corporate-level Scope 1/2/3 inventories.
Responsible sourcing is a commitment by companies to account for the social, environmental, and governance risks associated with the procurement of materials and services throughout their supply chains. In the context of metals and minerals, responsible sourcing typically involves supply chain due diligence, traceability, third-party audits, and adherence to internationally recognised frameworks such as the OECD Due Diligence Guidance.
Based on: OECD and RJC official documentation
A visual tool published by SASB (now integrated into the IFRS Foundation) that identifies which ESG topics are likely to be financially material for companies in each of 77 industry classifications; it is used to focus sustainability disclosures on issues most relevant to investors within a given sector such as metals and mining.
SASB Materiality Map (Sustainability Accounting Standards Board)
SASB/IFRS Foundation, 'SASB Standards' (2023)
The Greenhouse Gas Protocol Corporate Standard defines three scopes for classifying a company's greenhouse gas emissions: Scope 1 covers direct emissions from sources owned or controlled by the company; Scope 2 covers indirect emissions from the generation of purchased energy; and Scope 3 covers all other indirect emissions across the company's value chain, including both upstream and downstream activities.
Scope 1, Scope 2, and Scope 3 Greenhouse Gas Emissions
Based on: GHG Protocol Corporate Standard official documentation
A voluntary accounting category beyond the GHG Protocol that quantifies the emissions avoided by a product or service compared to a reference scenario; for metals companies it is used to demonstrate climate benefits of high-conductivity copper in electric vehicles or lightweight aluminium in aerospace, though there is no standardised methodology.
World Resources Institute, 'Avoided Emissions: Exploring the Evidence Base' (2020), wri.org.
Artisanal and Small-scale Mining (ASM) refers to formal or informal mining operations characterised by predominantly simplified forms of exploration, extraction, processing, and transportation, typically low in capital intensity and high in labour intensity. ASM operations range from legally recognised cooperative associations to informal groups operating without authorisation, and their legal status varies by national jurisdiction. ASM is a significant source of production for cobalt in the Democratic Republic of Congo, as well as tantalum, gold, and tin globally, and is associated with elevated occupational health, safety, and human rights risks.
Based on: Responsible Jewellery Council (RJC) — Standards Guidance: Artisanal and Small-Scale Mining official documentation
ICMM — Working Together: How Large-Scale Mining Can Engage with Artisanal and Small-Scale Miners official documentation
Battery materials are the chemical precursors and intermediates used to manufacture lithium-ion battery cells. Cathode materials include lithium carbonate (Li2CO3) and lithium hydroxide (LiOH·H2O) feeding NCM (nickel-cobalt-manganese), NCA (nickel-cobalt-aluminium), LFP (lithium iron phosphate), and LMFP chemistries; key inputs are nickel sulphate (NiSO4·6H2O), cobalt sulphate (CoSO4·7H2O), and manganese sulphate (MnSO4·H2O). Anode materials are predominantly synthetic and natural graphite, with silicon-graphite composites emerging. Battery-grade purity requirements (typically 99.5%+ for sulphates, 99.5%+ Li2CO3, 56.5% min Li content for LiOH) exceed metallurgical grade and command a premium. Pricing is published by Fastmarkets, Benchmark Mineral Intelligence, and Argus on a CIF China or EXW China basis.
Battery materials (cathode, anode, electrolyte precursors)
IEA — Global EV Outlook (current edition)
Fastmarkets MB Battery Materials methodology
Benchmark Mineral Intelligence — Lithium Price Assessment methodology
Benchmark pricing for metals refers to independent price assessments published by specialist price reporting agencies (PRAs) such as Fastmarkets, Asian Metal, and S&P Global Commodity Insights (Platts), which establish the prevailing tradeable level at which a commodity of a stated specification has, or could be expected to have, transacted over a defined assessment period. These assessments are based on data collected from a broad sample of market participants—producers, consumers, traders, and intermediaries—through direct reporting rather than exchange-based trading. Benchmark prices serve as reference prices for physical contracts, financial instruments, and transfer pricing for metals that are not traded on formal exchanges such as the LME.
Based on: Fastmarkets — Price Assessment Methodology official documentation
Cathode Active Material (CAM) is the electrochemically active component of the positive electrode (cathode) in a lithium-ion battery cell, responsible for storing and releasing lithium ions during charge and discharge cycles. CAM accounts for approximately half of battery cell costs and its chemical composition determines the cell's energy density, thermal stability, cycle life, and cost profile. Principal commercial CAM chemistries include lithium iron phosphate (LFP) and lithium nickel manganese cobalt oxide (NMC).
Based on: Faraday Institution — Faraday Insights: Developments in Lithium-Ion Battery Cathodes official documentation
Cobalt sulphate (CoSO₄) is a water-soluble cobalt salt produced by dissolving cobalt in sulphuric acid, classified under tariff item 2833.29.1000. It is the primary cobalt chemical feedstock used in the synthesis of precursor cathode active materials for NMC and NCA lithium-ion battery cells. Battery-grade cobalt sulphate purity requirements are stringent, with metal impurity levels typically required below 10 ppm for use in electric vehicle battery supply chains.
Based on: U.S. Geological Survey (USGS) Mineral Commodity Summaries 2024 — Cobalt and USGS Minerals Yearbook 2022 — Cobalt official documentation
Under the U.S. Energy Act of 2020, a critical mineral is defined as any mineral, element, substance, or material designated as critical by the Secretary of the Interior, acting through the Director of the U.S. Geological Survey, on the basis that it is essential to economic and national security, has a supply chain vulnerable to disruption, and serves an essential function in manufacturing where its absence would have significant consequences. The European Union's Critical Raw Materials Act (CRMA) similarly identifies critical raw materials as those of high economic importance to the EU economy that are subject to high supply risk. The USGS published a list of 50 critical minerals in 2022, revised every three years pursuant to the Act.
Based on: U.S. Department of Energy — What Are Critical Minerals and Materials official documentation
European Commission — Critical Raw Materials Act official documentation
The Democratic Republic of Congo (DRC) is the world's leading producer of mined cobalt, accounting for approximately 74% of global cobalt mine production in 2023, with estimated output of 170,000 metric tons of cobalt content. The country's cobalt is produced primarily as a byproduct of copper mining from copper-cobalt ores in the Katanga (Lualaba) province. The DRC holds estimated cobalt reserves of 6,000,000 metric tons, representing the largest national cobalt reserve base in the world.
Based on: U.S. Geological Survey (USGS) Mineral Commodity Summaries 2024 — Cobalt official documentation
Ferro-alloys are a group of alloys of iron with a high proportion of one or more other elements—principally chromium, manganese, silicon, or vanadium—produced for addition to steel and cast iron melts during steelmaking. They serve as a primary means of introducing alloying and deoxidising elements into molten steel to achieve specified mechanical and chemical properties. Major ferro-alloy types include ferrochromium, ferromanganese, ferrosilicon, and ferrovanadium, each named for the dominant non-iron element.
Based on: U.S. Geological Survey (USGS) Mineral Commodity Summaries 2024 — Manganese and Vanadium official documentation
Lithium Iron Phosphate (LFP), with the formula LiFePO₄, is an iron-based olivine cathode active material used in lithium-ion batteries. LFP offers low cost, good thermal stability, superior cycle and calendar life, and excellent round-trip efficiency, and is cobalt-free; it is widely deployed in electric vehicles and battery energy storage systems. Its lower cell-level energy density compared to nickel-rich chemistries is a trade-off against its safety and longevity advantages.
Lithium carbonate (Li₂CO₃) is the most common commercial form of refined lithium, produced from lithium brine or hard-rock spodumene concentrate via carbonate precipitation. It is the standard feedstock for manufacturing lithium iron phosphate (LFP) cathode active material and serves as a precursor to lithium hydroxide production. Pharmaceutical-grade and battery-grade lithium carbonate are traded as distinct specifications under tariff item 2836.91.
Based on: U.S. Geological Survey (USGS) Mineral Commodity Summaries 2024 — Lithium official documentation
Lithium hydroxide (LiOH) is an inorganic lithium compound produced from lithium carbonate or directly from spodumene concentrate via an alkaline processing route. It is the preferred lithium feedstock for high-nickel cathode active materials such as NMC811 and NCA, where its reactivity at lower temperatures improves cathode synthesis quality compared to lithium carbonate. Lithium hydroxide is traded in anhydrous monohydrate form and classified under tariff item 2825.20.0000.
Neodymium Iron Boron (NdFeB) magnets are rare earth permanent magnets composed of an alloy of neodymium, iron, and boron that forms the Nd₂Fe₁₄B tetragonal crystalline structure. They are the strongest permanent magnets commercially available and are critical components in electric vehicle traction motors and direct-drive wind turbine generators. The supply chain for sintered NdFeB magnets is geographically concentrated, with China dominant across all production stages from rare earth mining through final magnet manufacture.
Based on: U.S. Department of Energy, Office of Manufacturing and Energy Supply Chains — Rare Earth Permanent Magnets: Supply Chain Deep Dive Assessment official documentation
Lithium Nickel Manganese Cobalt Oxide (NMC) is a class of layered oxide cathode active materials used in lithium-ion batteries, with the general formula LiNiₓMnᵧCo₁₋ₓ₋ᵧO₂. NMC offers high energy density and high power output and is commonly the battery chemistry of choice for high-performance electric vehicles; increasing the nickel content (e.g., NMC811) raises energy density but reduces thermal stability. Next-generation NMC-type cathodes include lithium and manganese-rich materials (LMR-NMC).
Nickel Pig Iron (NPI) is a low-grade ferronickel product produced primarily in China and Indonesia, used predominantly in the production of stainless steel as a substitute for refined nickel. It is classified as a Class II nickel product and is smelted from laterite ore using blast or electric arc furnaces. NPI typically contains 1.5–15% nickel content, significantly lower than Class I refined nickel at 99.8% purity.
Based on: U.S. Geological Survey (USGS) Mineral Commodity Summaries 2024 — Nickel official documentation
Platinum Group Metals (PGM) is the collective designation for six closely related noble metallic elements: platinum, palladium, iridium, osmium, rhodium, and ruthenium. These elements share similar physical and chemical properties, occur together in nature in sulphide copper-nickel ores and alluvial deposits, and are reported in trade and statistics on a PGM-content basis in kilograms. PGMs are critical for autocatalysts, fuel cells, jewellery, and industrial chemical applications.
Based on: U.S. Geological Survey (USGS) Mineral Commodity Summaries 2024 — Platinum-Group Metals official documentation
Rare earth elements (REEs) are the 15 lanthanide elements (atomic numbers 57-71: La, Ce, Pr, Nd, Pm, Sm, Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu) plus scandium (Sc) and yttrium (Y), totalling 17 elements. They are conventionally split into Light Rare Earth Elements (LREE: La, Ce, Pr, Nd, Pm, Sm, Eu) and Heavy Rare Earth Elements (HREE: Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu, Y). Despite the name, most are not geologically rare in crustal abundance but rarely occur in economically concentrated deposits. USGS publishes annual reserves and production data in Mineral Commodity Summaries. Rare earth oxides (REO) are the standard tradeable form. China dominates mine production and especially separation/refining capacity. Key end uses: NdFeB permanent magnets (EV motors, wind turbines), phosphors, catalysts, polishing powders.
Rare earth elements (REE) / Rare earth metals
Based on: USGS — Mineral Commodity Summaries 2025: Rare Earths (
USGS — Rare Earth Element Mineral Deposits in the United States (
Rare Earth Elements (REE) is the collective designation for the 17 elements comprising the 15 lanthanides (lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, and lutetium), plus scandium and yttrium. Rare Earth Oxides (REO) are the oxide form in which rare earth content is standardly measured and reported, expressed in metric ton REO equivalent. Despite the name, most rare earth elements are not geologically scarce but occur in low concentrations that make economic extraction challenging.
Based on: U.S. Geological Survey (USGS) Mineral Commodity Summaries 2024 — Rare Earths official documentation
Spodumene is a lithium aluminium inosilicate pyroxene mineral with the chemical composition LiAl(SiO₃)₂, found principally in lithium-rich granite pegmatites. It is a primary hard-rock source of lithium and serves as a key feedstock for the production of lithium carbonate and lithium hydroxide used in battery manufacturing. Spodumene concentrate is typically graded at approximately 6% lithium oxide (Li₂O) before further processing.
Yellowcake is uranium oxide concentrate (U₃O₈), the standard intermediate product of uranium milling operations, containing approximately 85% uranium by mass. It is produced by processing uranium ore through crushing, leaching, and precipitation, then drying and roasting the resulting diuranate to yield U₃O₈. Yellowcake is the commercial form in which uranium is marketed, exported, and traded internationally, packed into sealed 200-litre steel drums for shipment.
Based on: World Nuclear Association — Uranium Mining Overview official documentation
AIC, also defined by the WGC Guidance Note, extends AISC by adding non-sustaining (growth) capital expenditure, non-sustaining exploration & evaluation, and project capital expenditure on new mines or major expansions. AIC therefore represents the total cost to maintain current production AND fund future growth. Where AISC measures cost-discipline of current operations, AIC measures whether the company is generating returns sufficient to fund the next generation of mines. AIC is reported per ounce sold (or per tonne) and is closely watched by equity analysts as an indicator of long-term free cash flow capacity.
Based on: World Gold Council — Guidance Note on Non-GAAP Metrics: All-In Sustaining Costs and All-In Costs (
AISC is a non-GAAP performance measure introduced by the World Gold Council in 2013 to provide a more comprehensive view of the costs to produce gold and other metals than traditional cash costs. AISC adds to C1 cash cost all the costs required to sustain current production: on-site mining and processing G&A, royalties, by-product credits, sustaining capital expenditure, sustaining exploration & evaluation, sustaining lease payments, and corporate G&A allocated to operating mines. It excludes growth capex, project expenditure, financing costs, taxes and one-off items. AISC is typically reported per ounce of gold sold (or per tonne for base metals). The WGC Guidance Note is the standard reference; major gold producers (Barrick, Newmont, AngloGold Ashanti, etc.) and most copper / silver / nickel companies report AISC.
Based on: World Gold Council — Guidance Note on Non-GAAP Metrics: All-In Sustaining Costs and All-In Costs (June 2013; updated 2018) (
By-product credits are the revenue from saleable secondary metals or minerals produced alongside the primary metal at a mine — applied as a reduction of the cash cost per unit of primary metal. For example, a porphyry copper mine producing copper as primary product plus molybdenum, gold and silver as by-products would deduct net Mo + Au + Ag revenue (after deducting any direct selling costs) from operating costs before dividing by primary copper produced. This 'by-product method' is widely used in cost reporting (C1, AISC). The alternative 'co-product method' allocates costs pro-rata based on revenue share of each product and is used when no single metal dominates revenue. The WGC Guidance Note recommends the by-product method for gold producers.
By-product credits (co-product accounting)
Based on: World Gold Council — Guidance Note on Non-GAAP Metrics (gold.org)
Wood Mackenzie / CRU — Cost Service methodology.
C1 is the direct cash cost of producing a unit of metal at the mine and treatment stages. It includes mining costs, ore processing, on-site general & administrative, freight to smelter (for concentrates), treatment & refining charges (TC/RC), less by-product credits where the deposit produces more than one payable metal. C1 excludes depreciation, financing, royalties, taxes and corporate overhead. The Brook Hunt (now Wood Mackenzie) cost-curve methodology built around C1 is the global standard for ranking mine competitiveness — mines in the lowest cost quartile (Q1) are most likely to survive low metal prices.
Based on: Wood Mackenzie (formerly Brook Hunt) — Cost Service methodology (
ICMM — Costs and Profits in the Mining Industry (icmm.com).
C2 cash cost is C1 plus depreciation, depletion and amortisation (DD&A). In effect, C2 adds the non-cash accounting allocation of the original mine and plant capital investment, spread over the reserve life. C2 is rarely reported directly today (AISC has replaced it for gold and silver), but is still used in the base-metals cost-curve literature published by CRU and Wood Mackenzie as an intermediate measure between operating cash cost (C1) and fully loaded cost (C3).
Based on: Wood Mackenzie — Cost Service methodology
CRU Group — Mine Cost Database methodology (crugroup.com).
C3 is C2 plus indirect costs: corporate overhead allocated to the mine, exploration write-offs, royalties, taxes (cash taxes), and financing costs (net interest expense). C3 is intended to approximate full economic cost on an accrual basis — useful for valuing a mine over its full life. Both C2 and C3 are giving way in modern practice to the WGC AISC and AIC framework, but legacy base-metals datasets still report C1/C2/C3 (especially copper, zinc and nickel cost curves).
The CIM Definition Standards are issued by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) and adopted by reference under Canadian securities law NI 43-101. They define Mineral Resources (Inferred, Indicated, Measured) and Mineral Reserves (Probable, Proven), Qualified Person responsibilities, modifying factors (mining, metallurgical, infrastructure, economic, marketing, legal, environmental, social, governmental) and reporting requirements. The 2014 edition (and 2019 updates) is the basis for technical reports filed by mining issuers on Canadian exchanges (TSX, TSXV) and is internationally aligned with CRIRSCO Template.
CIM Definition Standards for Mineral Resources and Mineral Reserves
Based on: CIM — Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014, with 2019 amendments) (mrmr.cim.org)
Canadian Securities Administrators NI 43-101.
Comminution is the size-reduction of ore from run-of-mine rock down to particle sizes suitable for mineral separation (typically <100-200 μm for flotation, <0.1 mm for cyanidation). It comprises crushing (primary, secondary, tertiary jaw/cone/gyratory crushers) and grinding (SAG mills, ball mills, vertical mills, HPGR). Comminution is the single largest energy consumer in a mine — typically 30-50% of mine site electricity demand — and is the bottleneck setting throughput. The Bond Work Index (BWI, in kWh/t) is the standard test characterising ore hardness for grinding circuit design. Specific energy consumption (kWh/t) tracks comminution efficiency over time.
Based on: Wills & Finch — Mineral Processing Technology, 8th Edition (Elsevier 2016)
Bond, F.C. (1961) — The Third Theory of Comminution.
Consequence Classification is the mandatory rating assigned to every tailings storage facility based on the credible downstream impact of a hypothetical dam-break flow. GISTM Principle 1 and the Canadian Dam Association framework use five ascending categories: Low, Significant, High, Very High, Extreme. The classification is derived from Dam Break Analysis output and considers loss of life, environmental damage and infrastructure damage. The rating drives the design criteria, monitoring intensity, ITRB requirement and GISTM disclosure timeline. ICMM member companies were required to bring Very High and Extreme facilities into GISTM conformance by 5 August 2023, and all remaining facilities by 5 August 2025.
Tailings Facility Consequence Classification
Based on: ICMM/UNEP/PRI — GISTM (August 2020), Principle 1
Canadian Dam Association Dam Safety Guidelines (2007, updated 2013)
ANCOLD Guidelines on the Consequence Categories for Dams (2012).
The Committee for Mineral Reserves International Reporting Standards (CRIRSCO) publishes an International Reporting Template that defines the global benchmark for public reporting of Mineral Resources and Mineral Reserves. CRIRSCO is endorsed by the International Council on Mining and Metals (ICMM) and serves as the basis for national codes including JORC (Australasia), CIM (Canada), SAMREC (South Africa), PERC (Europe), MPMI Code (Mongolia), CBRR (Brazil), KORES (Korea) and others. Where a national jurisdiction has not adopted a CRIRSCO-aligned code, the CRIRSCO Template itself can be used. The template defines reserves/resources, modifying factors, and competent-person reporting requirements.
CRIRSCO International Reporting Template
Based on: CRIRSCO — International Reporting Template, current edition (
Dam Break Analysis is the engineering study that models the inundation footprint, flow depth, velocity and arrival time of the slurry wave that would result from a hypothetical failure of a tailings dam. Modern DBA combines tailings rheology (non-Newtonian flow behaviour of liquefied fines), terrain models and downstream land-use mapping to assign Consequence Classification to a facility. GISTM Principle 4 and Canadian Dam Association Mining Dams Bulletin require DBA to assume credible failure modes including liquefaction. The output drives the Emergency Preparedness and Response Plan (EPRP) under GISTM Principle 13.
Based on: ICMM/UNEP/PRI — Global Industry Standard on Tailings Management (August 2020), Principle 4 and Principle 13
Canadian Dam Association — Application of Dam Safety Guidelines to Mining Dams (2014)
Mount Polley Independent Expert Panel Report (2015).
A Definitive Feasibility Study (DFS), sometimes called Bankable Feasibility Study (BFS), is the final stage of project evaluation before construction decision. DFS-level accuracy on capex and opex is ±10-15%. DFS includes detailed engineering (often vendor quotes for major equipment), permitted environmental impact assessment, secured offtake or term-sheet level agreements, financing structure, and final economic model. Bank lenders, ECAs and project finance syndicates use the DFS as the basis for debt sizing. The DFS supports declaration of Mineral Reserves and underpins the Final Investment Decision (FID).
Definitive Feasibility Study (DFS) / Bankable Feasibility Study (BFS)
Based on: NI 43-101 Companion Policy 43-101CP
World Bank — Mining Project Finance methodology.
A company's 12-month financial reporting period, which may or may not align with the calendar year. Majors split: calendar FY (Glencore, Codelco, Freeport, Newmont — Jan–Dec) and June-ending FY (BHP, Rio Tinto, Fortescue, South32 — Jul–Jun, Australian convention). HKEX-listed Chinese producers report calendar FY with deadline 31 March. TSM tracks production data on issuer's actual FY basis with explicit annotation (FY26 = year ended in calendar 2026).
GISTM is the global benchmark for managing tailings facilities, published in August 2020 by the ICMM, UNEP and the Principles for Responsible Investment (PRI). It comprises 15 Principles and 77 Auditable Requirements covering the full tailings facility lifecycle: project development, design and construction, management and operation, monitoring, performance review, emergency preparedness, closure and reclamation. Mandatory elements include the Engineer of Record (EoR), Independent Tailings Review Board (ITRB), Accountable Executive at C-suite, and Consequence Classification. ICMM member companies were required to achieve full conformance for Extreme/Very High consequence facilities by 5 August 2023 and all other facilities by 5 August 2025.
Global Industry Standard on Tailings Management (GISTM)
Based on: ICMM, UNEP and PRI — Global Industry Standard on Tailings Management, August 2020 (
An Independent Tailings Review Board is a standing panel of senior external experts (typically 3–5 members, none of whom is an employee, contractor or financial beneficiary of the operator) that reviews tailings facility design, construction, operation, closure and emergency planning across the full lifecycle. GISTM Principle 12 makes the ITRB mandatory for facilities classified High, Very High or Extreme consequence; the Mount Polley Independent Panel report (2015) had recommended this structure four years earlier. ITRB findings are reported to the Accountable Executive and form part of the GISTM conformance dossier disclosed to the ICMM Global Tailings Portal.
Independent Tailings Review Board (ITRB)
Based on: ICMM/UNEP/PRI — GISTM (August 2020), Principle 12
Mount Polley Independent Expert Engineering Investigation and Review Panel (Morgenstern, Vick, Van Zyl, 30 January 2015).
The JORC Code (Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves) — 2012 edition is the mandatory standard for public reports on mineral exploration results, Mineral Resources and Ore Reserves listed on ASX and NZX. It sets out minimum standards on transparency, materiality and competence (Competent Person definition). Reserves and Resources must be reported with confidence categories: Inferred / Indicated / Measured (Resources) and Probable / Proved (Reserves). The 2012 edition introduced Table 1 — a mandatory check-list of assessment and reporting criteria covering sampling, drilling, geology, estimation, mining and metallurgical factors.
JORC Code 2012 — Australasian reporting standard
Based on: JORC — Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012 Edition) (
Life of Mine is the expected operational life of a mine measured in years, calculated by dividing economically recoverable Mineral Reserves by the planned annual mining or milling rate. Under JORC, NI 43-101 and SAMREC, the LOM plan is the technical and economic plan demonstrating reserves are extractable on a commercial basis. LOM directly influences valuation: in DCF analysis, a longer LOM with maintained grade is worth more than a short, high-grade burst, because of risk-adjusted reserve replacement assumptions. Reported in technical reports under the LOM Plan section.
Based on: JORC Code 2012 — Section 4 (Reserve Definitions)
NI 43-101 Form 43-101F1, Item 16 — Mining Methods (canlii.org).
Static liquefaction is the loss of effective shear strength in a saturated, loose-deposited tailings mass when undrained loading triggers porewater-pressure build-up faster than the mass can dissipate it. The material transforms from a solid skeleton into a viscous slurry, often without precursor surface deformation. Static liquefaction — not earthquake (cyclic) liquefaction — was the established failure mechanism for the Fundão (Samarco 2015) and Córrego do Feijão Dam I (Brumadinho 2019) iron-ore tailings dams, in both cases on upstream-raised structures. GISTM Principle 5 requires explicit assessment of static and seismic liquefaction susceptibility for every TSF.
Based on: Robertson et al. — Report of the Expert Panel on the technical causes of the failure of Feijão Dam I (Vale, December 2019)
Morgenstern et al. — Fundão Tailings Dam Review Panel (Samarco, 2016)
Metallurgical recovery is the percentage of the contained metal in mined ore (or concentrate feed) that is successfully extracted into a saleable product. It is calculated as (metal in concentrate or finished product) ÷ (metal in feed) × 100%. Recovery is a single most important operating KPI in mineral processing — a 1-percentage-point improvement in recovery can equal millions in additional revenue on a large mine. Typical recoveries vary by metal and process: porphyry copper flotation ~85-92%; gold heap leach ~60-80%; gold CIL ~90-95%; nickel sulphide flotation ~70-85%. Recovery curves (recovery vs grind size, vs reagent dose) are central to plant optimisation.
Based on: SME Mineral Processing Handbook (Society for Mining, Metallurgy & Exploration)
Wills & Finch — Mineral Processing Technology (Elsevier).
Mill head grade is the average metal content of the ore feed delivered to the processing plant (mill) — measured on the conveyor or in the mill feed sample — typically expressed in g/t for gold and silver or % for base metals. Head grade differs from in-situ reserve grade because of mining dilution (waste mixed in during extraction) and ore losses. Head grade × mill throughput × recovery = metal produced. Operators monitor head grade daily; a falling head grade trend (without offsetting throughput or recovery gains) is a key indicator of reserve depletion or selectivity problems.
CIM Definition Standards on Mineral Resources and Mineral Reserves (mrmr.cim.org).
Mill throughput is the mass of ore processed by a milling/processing plant per unit of time, expressed as tonnes per hour (tph), tonnes per day (tpd) or millions of tonnes per annum (Mtpa). Throughput depends on plant design capacity, ore hardness (measured as Bond Work Index or SAG comminution indices), grind size target, and equipment availability. Constraints are typically grinding (SAG/ball mill power) or flotation cell volume. Together with head grade and recovery, throughput is one of the three multiplicative drivers of mine output.
Based on: SME Mineral Processing Handbook
Bond, F.C. (1961) — Crushing and Grinding Calculations (allis-chalmers reprint).
A Mineral Reserve is the economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Pre-Feasibility Study (PFS). PFS must consider all Modifying Factors (mining, metallurgical, infrastructure, economic, marketing, legal, environmental, social, governmental). Proven Mineral Reserve derives from Measured Mineral Resource (highest geological confidence); Probable Mineral Reserve derives from Indicated Mineral Resource or in some cases Measured. Mineral Reserves are reported in tonnes and grade with metal content. Reserves are diluted by mining and adjusted by recovery to estimate mine output. JORC, CIM and SAMREC all use the same Proved/Probable nomenclature (CIM uses 'Proven'; SAMREC and JORC use 'Proved').
A Mineral Resource is a concentration of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. Mineral Resources are sub-divided by increasing geological confidence: Inferred (lowest confidence — limited drilling, geological inference); Indicated (moderate confidence — sufficient density of sampling for preliminary mine planning); Measured (highest confidence — closely spaced sampling and continuity confirmed). Only Indicated and Measured Mineral Resources may be converted to Mineral Reserves. Inferred Mineral Resources are excluded from cash-flow studies in PFS and DFS. Resources are reported separately from Reserves and are inclusive of, or exclusive of, Reserves depending on national code convention.
Mineral Resource (Inferred, Indicated, Measured)
Mining dilution is the contamination of ore with waste material during extraction — either internal dilution (waste within the orebody outline) or external dilution (waste from outside the planned ore boundary). It is expressed as the percentage by which the in-situ ore tonnage is increased by waste; e.g. 10% dilution means for every 100 t ore extracted, 110 t enters the mill, but the head grade falls by approximately 10%. Dilution is one of the most important Modifying Factors converting Resources to Reserves and is a function of mining method, grade-control selectivity, drill-and-blast practice, and equipment selection. Underground narrow-vein mining typically has higher dilution (20-40%) than open-pit (5-15%).
Based on: SME Mining Engineering Handbook (Society for Mining, Metallurgy & Exploration)
OEE is a manufacturing and mining KPI that combines three component metrics: Availability (actual operating time ÷ scheduled time), Performance (actual throughput ÷ design throughput), and Quality (good output ÷ total output). OEE = Availability × Performance × Quality. World-class OEE in continuous mining and milling operations is typically 80-85%; many operations run at 55-70%, indicating significant productivity headroom. Mining OEE is most commonly applied to fixed plant (SAG mills, flotation circuits) and large mobile equipment fleets (haul trucks, shovels). It is the standard framework for Lean / Operational Excellence programmes at major miners (BHP, Rio Tinto, Newmont).
Based on: Nakajima, S. (1988) — Introduction to TPM: Total Productive Maintenance (Productivity Press)
ICMM — Operational Excellence in Mining (icmm.com).
A Preliminary Economic Assessment (also Scoping Study) is the first level of mining technical-economic study, intended to demonstrate the potential economic viability of a Mineral Resource. A PEA may use Inferred Mineral Resources (which are excluded from PFS and DFS), so its conclusions are preliminary. Under NI 43-101, PEA cannot disclose Mineral Reserves and must be accompanied by cautionary language that there is no certainty the PEA will be realised. PEAs typically apply 25-30% accuracy on capex and opex, use conceptual mine plans, and serve as the gate to authorise infill drilling for PFS-level studies.
Based on: NI 43-101F1 Item 22 — Other Relevant Data and Information
CIM Best Practice Guidelines for Estimation of Mineral Resources and Mineral Reserves.
Penalty elements are minor or trace impurities in mineral concentrate that smelters levy financial penalties on because they raise processing cost or generate harmful by-products. Standard penalty elements vary by concentrate: in copper concentrate — arsenic (As), antimony (Sb), bismuth (Bi), lead (Pb), zinc (Zn), fluorine (F), chlorine (Cl); in lead concentrate — As, Sb, Hg; in zinc — As, Cd, Hg; in iron ore — phosphorus (P), alumina, sulfur. Penalties are tabulated in the concentrate sales contract as a $/t deduction per percentage above a threshold (e.g. As >0.2% in Cu concentrate incurs $5/t for each 0.1% above threshold). Penalty elements directly reduce payable metal value and are watched closely by sales and mine geology teams.
Based on: ICSG (International Copper Study Group) — Annual reviews on concentrate quality
A Pre-Feasibility Study is a comprehensive technical and economic study of a project that has advanced to a stage where the preferred mining method has been determined, an effective method of mineral processing established, and modifying factors applied at sufficient detail to allow declaration of Mineral Reserves. Capex and opex accuracy are typically ±20-25%. The PFS is the minimum level of study required to declare a Mineral Reserve under JORC, CIM, SAMREC and SEC S-K 1300. PFS outputs include LOM mine plan, processing flow sheet, infrastructure layout, capex/opex, NPV, IRR and payback.
The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code) is the mandatory standard for public reports on mineral assets listed on the JSE. The current version is SAMREC 2016 (updated 2025 with minor amendments). Like JORC and CIM, SAMREC defines Mineral Resources by confidence level (Inferred / Indicated / Measured), Mineral Reserves (Probable / Proved) and Competent Person obligations. SAMREC is published by SAIMM/GSSA via the SSC and is fully CRIRSCO-aligned, meaning resource statements are interchangeable across jurisdictions with appropriate disclosure.
SAMREC Code — South African Mineral Resource Committee
Based on: SAMREC — The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 Edition (
Subpart 1300 of SEC Regulation S-K, adopted in 2018 and effective from 2021, sets the modernised disclosure standards for mining-property registrants filing with the SEC. It replaced the old Industry Guide 7 and aligned US disclosure with CRIRSCO and JORC by requiring: a Qualified Person (QP) opinion, definition of Mineral Resources (Inferred / Indicated / Measured) and Mineral Reserves (Probable / Proven), a Technical Report Summary for material mining properties (S-K 1302), and mandatory modifying-factors disclosure. Form 10-K registrants must comply for all annual filings covering fiscal years beginning on or after 1 January 2021.
Based on: U.S. Securities and Exchange Commission — Final Rule: Modernization of Property Disclosures for Mining Registrants (Release 33-10570, October 2018) (
Specific energy consumption is the total electrical (and sometimes thermal) energy used to mine and process one tonne of ore, expressed in kWh per tonne treated. Industry-wide benchmarks: a copper porphyry operation typically consumes 20-40 kWh/t milled (the comminution circuit alone accounting for 60-70% of that). Pyrometallurgical smelting and refining adds another large energy fraction on a per-tonne-metal basis. SEC is a primary input to mine GHG emissions intensity (kg CO₂e / t metal) when combined with grid emission factor (kg CO₂/kWh). Major miners now report SEC as part of their TCFD disclosures and ICMM benchmarks; ISO 50001 energy management certification is increasingly applied.
Specific energy consumption (SEC, kWh/t)
Based on: ICMM — Climate Change Position Statement (
ISO 50001:2018 Energy Management Systems
Three principal raise methods are used to build the embankment of a wet-tailings storage facility. (1) Upstream-raised: each successive raise is placed on top of previously deposited tailings beach — the cheapest method, but the deposited tailings form part of the dam structure, making the dam vulnerable to static liquefaction if the tailings are loose and saturated. Failed at Fundão (2015) and Córrego do Feijão I (2019); banned in Brazil by ANM Resolution 13/2019 and prohibited in several Canadian jurisdictions. (2) Downstream-raised: each raise is built on the downstream side of the starter dyke, away from the tailings pond — the safest method, but consumes more borrow material. (3) Centerline: a hybrid where successive raises are added on the central axis. Modern best practice (GISTM, Mount Polley Panel) favours downstream, centerline or filtered dry-stack designs over upstream construction for high-consequence facilities.
Tailings Dam Construction Methods — Upstream / Downstream / Centerline
Based on: Mount Polley Independent Panel Report (2015)
Robertson et al. Feijão Expert Panel Report (2019)
Tailings run-out distance is the horizontal distance that liquefied tailings travel downstream of a failed embankment before the flow comes to rest. It is a key parameter in Dam Break Analysis and Consequence Classification because run-out determines whether populated areas, watercourses, transport infrastructure or protected ecosystems lie within the inundation footprint. Observed run-outs span from hundreds of metres for coarse, dry-stacked tailings to the ~660 km Doce River basin footprint of Samarco/Mariana (2015). Run-out modelling combines rheology (yield stress, viscosity), released volume, channel geometry and downstream topography.
Based on: Jefferies M., Morgenstern N.R., Van Zyl D. — Run-out modelling in tailings flow assessments (Canadian Geotechnical Journal)
ICOLD Bulletin 121 — Tailings dams: risk of dangerous occurrences (2001)
Canadian Dam Association Mining Dams Bulletin.
A Tailings Storage Facility is the engineered structure that stores the slurry residue (tailings) remaining after mineral processing extracts the valuable metal from ore. Designs include upstream-raised, downstream-raised, centreline, in-pit, dry-stacked filtered tailings, and underground paste backfill. Failures of tailings dams (Brumadinho 2019, Mount Polley 2014, Samarco 2015) have driven adoption of the Global Industry Standard on Tailings Management (GISTM) published in 2020 by ICMM, UNEP and the PRI. The standard requires Independent Tailings Review Boards, Engineer of Record, Accountable Executive, and Consequence Classification (Low, Significant, High, Very High, Extreme). Compliance was required from member companies' tailings facilities by 2025.
Based on: ICMM / UNEP / PRI — Global Industry Standard on Tailings Management (August 2020) (globaltailingsreview.org)
Canadian Dam Association — Dam Safety Guidelines.
All-in cost of acquiring a metal consignment delivered, insured and stored — not just the per-tonne metal price. Adds freight (Incoterms-defined), insurance premium, customs/VAT, financing cost, storage and handling, and any FX hedging cost. TSM's TCO Pro calculator on /calculators/tco-pro/ implements an industry-standard buyer/trader TCO model with 11 Incoterms and 4 transport modes.
TSM editorial; aligned with CIPS / ITC procurement guides
Water intensity is the volume of fresh water withdrawn or consumed to produce one unit of metal output — typically expressed as m³ per tonne of ore milled, m³ per tonne of metal, or m³ per ounce of gold. ICMM's Water Reporting Framework (built on the Minerals Council of Australia and WRI Aqueduct methodologies) is the industry standard for disclosure. Water intensity is highly site-dependent: arid regions (Chile, Western Australia, Nevada) have intensities below 0.5 m³/t milled due to recycling and seawater use; tropical sulphide operations may use 1.5-3 m³/t. Water is increasingly a competitive cost driver and permitting bottleneck — Chilean copper mines now report seawater use as a separate KPI under the framework.
Water intensity (m³ per tonne / m³ per ounce)
Based on: ICMM — Water Reporting Framework, 3rd Edition (
Document certifying the country in which the goods were produced. Required for customs duty assessment, application of preferential trade agreements (FTA), and for sanctions-screening (Russian, Iranian, Venezuelan content). Issued by chambers of commerce (non-preferential) or by customs authority / authorised exporters (preferential — REX, EUR.1, FORM A).
Standard waybill for international road freight under the 1956 CMR Convention. Evidence of carriage contract between consignor and road carrier, basis for claims handling. Used across Europe, CIS, North Africa and Middle East — every cross-border truckload of metals into the EU travels under a CMR.
Contractual conditions that must be satisfied before a party's obligations under a contract become binding and enforceable; failure to satisfy a condition precedent entitles the other party to treat the contract as not yet effective or to terminate. In international trade finance, conditions precedent to drawdown typically include delivery of specified documents. UNCITRAL Convention on Contracts for the International Sale of Goods (CISG) addresses contract formation conditions at uncitral.org.
Contractual conditions, the occurrence or non-occurrence of which terminates an already-existing obligation or right; unlike conditions precedent, obligations are effective until the condition subsequent is triggered. Used in commodity contracts to address post-execution events such as regulatory approval or quality re-testing. Governed by applicable contract law (e.g., English law, UNCITRAL CISG at uncitral.org).
A draft survey is an independent measure of cargo quantity calculated from the change in a vessel's waterline displacement before and after loading, governed by IMO guidelines and carried out by a Marine Surveyor. The Bill of Lading (B/L) quantity is the figure formally acknowledged by the carrier and creates the document of title. Discrepancies between the two are common in bulk metals shipments and the contract must specify which governs for settlement purposes. BIMCO standard voyage charters typically make the B/L figure determinative for freight; the draft survey is used to verify outturn.
Negotiable multimodal bill of lading issued by FIATA-member freight forwarders. Covers door-to-door movements involving road + sea + rail. Recognised under UCP 600 banking practice for L/C settlement.
A contractual provision that relieves a party from its performance obligations when an unforeseeable event beyond its reasonable control makes performance impossible or impracticable. Under the ICC 2020 model clause, the affected party must prove the impediment was unforeseeable, beyond its control, and could not reasonably have been avoided. Common triggers in metals trade include sanctions, export embargoes, port closures, and natural disasters. Notice must be given without delay to the counterparty.
ICC Force Majeure and Hardship Clauses (March 2020)
A contract provision that allows renegotiation when an unforeseen event fundamentally upsets the economic balance of the contract, making continued performance excessively onerous — but not impossible. Unlike force majeure (which excuses performance), hardship obliges the parties to negotiate adapted terms. The ICC 2020 Hardship Clause offers three options: termination by the affected party, adaptation or termination by a judge or arbitrator, or termination by judicial order. In long-term offtake agreements for copper, aluminium or iron ore, hardship clauses are invoked when commodity price collapses render the economic basis of the deal untenable.
Document issued by an independent inspection company (SGS, Bureau Veritas, Intertek, Cotecna, Alex Stewart) certifying quantity, quality, packing and marking of a shipment at the loading point. Required by some import jurisdictions and by L/C terms. Distinct from the Mill Test Certificate (MTC) which certifies metallurgical properties.
Pre-Shipment Inspection (PSI) Certificate
Trade association for the OTC derivatives market. Best known for publishing the ISDA Master Agreement — the standardised bilateral contract used globally to document derivatives transactions — and the ISDA Definitions booklets (Interest Rate, Commodity, Credit, FX). ISDA also runs Determinations Committees for credit-default-swap events and publishes protocols to amend outstanding agreements collectively.
International Swaps and Derivatives Association
The 'laycan' (laytime cancelling) is the window — expressed as a date range — within which the vessel must arrive at the loading port and tender Notice of Readiness. If the vessel arrives before the first layday, laytime does not start until the opening of the laycan. If the vessel fails to arrive by the cancelling date, the charterer may cancel the charter party without penalty. Laycan management is critical in time-sensitive metals concentrate and coal voyages where mine production must be synchronised with vessel arrival.
BIMCO Laytime Definitions for Charter Parties 2013
A letter issued by the cargo receiver (or shipper) to the shipowner or carrier, indemnifying it against any claims arising from delivering cargo without production of the original Bill of Lading. Used in metals and bulk commodity trades when the vessel arrives before the B/L has cleared the banking chain. BIMCO publishes a standard LOI form; without a P&I Club-backed LOI, carriers risk criminal fraud exposure and uninsured liability. LOIs are legally problematic in some jurisdictions and should be used as an exceptional measure only.
BIMCO — The Lost Bills of Lading (2024 guidance)
A contractual provision that caps the maximum monetary amount a party may recover for breach of contract or negligence, often expressed as a multiple of the contract value or capped at total fees paid. International commercial contracts frequently reference ICC model clauses and English law principles limiting consequential, indirect, and loss-of-profit damages. ICC contract model clauses are available at iccwbo.org.
ICC — International Chamber of Commerce, iccwbo.org
A pre-agreed sum payable by a party in breach of a specific contractual obligation (typically delay or failure to perform), representing a genuine pre-estimate of loss rather than a penalty; English courts will enforce liquidated damages clauses provided they are not extravagant or unconscionable relative to the anticipated loss. FIDIC and other construction contract forms (ICC model) regularly include liquidated damages for delay at iccwbo.org.
Document signed by the ship's chief officer acknowledging cargo received on board and noting any apparent damage or short-shipment. Used as the basis for issuing the Bill of Lading. Critical for cargo claims — a 'clean' Mate's Receipt limits liability of carrier for hidden defects.
A provision in acquisition agreements and project finance documents allowing a party to walk away — or renegotiate — if a material adverse change to the target's business, assets, or financial condition has occurred between signing and closing. In mining M&A, MAC definitions typically carve out commodity price movements as normal business risk while covering seismic title defects, permitting failures, or catastrophic environmental events. Courts interpret MAC clauses narrowly; the burden of proof on the invoking party is high.
Document issued by the mill certifying chemical composition, mechanical properties and dimensional compliance of the supplied metal product. Four types under EN 10204: 2.1 (declaration of compliance), 2.2 (with test results, not specific), 3.1 (specific testing, issued by mill's own inspection department), 3.2 (specific testing, issued by independent third party). Most contracts for structural steel, copper cathode and aluminium ingot require 3.1 or 3.2.
A formal written notice from the master (or ship's agents) to the charterer/shipper that the vessel has arrived at the designated port or berth and is in all respects ready to load or discharge. Under BIMCO Laytime Definitions 2013, NOR triggers the commencement of laytime. Validity conditions — such as 'WIBON' (Whether In Berth Or Not) and 'WIPON' (Whether In Port Or Not) — govern whether NOR can be tendered from a waiting anchorage. Defective NOR tendering is a frequent cause of laytime and demurrage disputes.
Detailed list of contents of a shipment by package — gross/net weights, dimensions, number of pieces, marks and numbers. Required for customs clearance and for the consignee's receiving check. Not a contract of carriage.
Certificate stating that wooden packaging (pallets, dunnage, crates) has been heat-treated (HT) or methyl-bromide fumigated (MB) and bears the ISPM 15 mark — required for all wood packaging used in international shipments. Non-compliance causes containers to be turned away or fumigated at destination at shipper's expense.
The agreed window of calendar days over which the LME official cash settlement price is averaged to set the price for a physical metal shipment. Typically expressed as M+1 or M+2 (the month after or two months after shipment), or as a specific number of days around bill of lading date. The QP is the principal pricing mechanism in copper, zinc, lead, and nickel concentrate contracts; producers and traders hedge their QP exposure on the LME by entering futures or TAPOs (Traded Average Price Options) for the same averaging period.
Statements of fact (representations) and promises as to the truth of facts (warranties) made by one party to induce the other to enter a contract; a false representation may give rise to rescission or damages in tort, while breach of warranty typically gives rise to damages in contract. In cross-border commodity and M&A agreements, reps and warranties are commonly governed by English law or UNCITRAL model contract principles. UNCITRAL resources at uncitral.org.
Non-negotiable maritime transport document — evidence of contract of carriage but not a document of title. Goods released to named consignee without surrender of the original. Used for shipments where the goods will not be sold while afloat (intra-group transfers, fixed-price contracts). Faster release process than a Bill of Lading.
A dispute-resolution mechanism in metals contracts where, if the seller's and buyer's independent assay or weight results differ by more than a specified tolerance (the 'splitting limit'), the retained split sample is submitted to an agreed umpire laboratory for a binding determination. The umpire result is typically taken as the contractual figure, or averaged with the closer of the two original results. Common in copper and zinc concentrate sales, it avoids the need for formal arbitration over routine measurement disputes.
A contract provision specifying the method, standards body, and split-sample procedure used to determine the weight and chemical composition of a metal shipment. ISO 12743 (copper concentrates) and ISO 10251 (zinc concentrates) set international sampling protocols. In China, the China Inspection and Quarantine Bureau (CIQ) performs port inspections; globally, SGS and Alfred H. Knight provide independent determination. The clause typically designates whose result governs and provides for an umpire analysis if the two parties' results diverge beyond an agreed tolerance.
ISO 12743:2018 (Copper, lead, zinc and nickel concentrates — Sampling procedures)
China Export Licence Issuance (Dual-Use Regime)
The operational mechanism by which MOFCOM controls actual export volumes of dual-use critical minerals after listing them under 2024/33 and 2024/46 announcements. Exporters must file per-shipment applications documenting the buyer, end-use, end-user, and destination. MOFCOM issues, delays, or denies licences at its discretion. Aggregate licence issuance is not published but is inferable from Chinese customs export volumes — antimony exports to the United States fell approximately 97 percent in October 2024 versus the prior three-month average following the initial listing. In November 2025 China suspended outright export bans on antimony, gallium, and germanium to US destinations but retained the licence-issuance requirement, converting a hard ban into a discretionary throttle. The licence regime is the permanent post-2024 tool; bans are the temporary escalation lever.
China Export Licence Issuance Regime for Dual-Use Critical Minerals
Reuters coverage of the November 2025 licence-regime restoration replacing the outright ban
Defense Production Act (DPA) — Title III
US federal law (50 U.S.C. §§ 4501 et seq.) granting the President authority to prioritize contracts, allocate materials, and provide financial incentives to expand domestic production of goods deemed essential to national defense. Title III specifically enables loans, loan guarantees, direct purchases, and purchase commitments for critical materials. Since 2020 DPA Title III has been invoked repeatedly for critical minerals — lithium, cobalt, nickel, graphite, rare earths, and antimony. The 21 March 2025 Executive Order invoked DPA authorities for domestic critical mineral projects including Perpetua Resources' Stibnite Gold Project. DPA is administered by the Department of Defense (Office of Industrial Base Policy) with Presidential delegation.
US Defense Production Act — Title III Domestic Industrial Base Authorities
Perpetua Resources press release on the 21 March 2025 Executive Order invoking DPA authorities for the Stibnite Gold Project
Dodd-Frank Section 1502 — Conflict Minerals
Section 1502 of the US Dodd-Frank Wall Street Reform and Consumer Protection Act (2010) requires SEC-registered companies to disclose annually whether their products contain 'conflict minerals' — tin, tantalum, tungsten, or gold — that may have originated from the Democratic Republic of Congo or adjoining countries. Companies must conduct supply chain due diligence and file a Form SD. The rule is enforced by the SEC under a dedicated conflict minerals reporting regime. It drives demand for ITSCI, RJC, and other traceability schemes as downstream buyers seek supply chain assurance.
SEC — Conflict Minerals Rule (Section 1502 of Dodd-Frank)
Items, software, or technology that can be used for both civilian and military purposes and are subject to export controls; in metals, dual-use controls cover high-purity metals (beryllium, hafnium, germanium, indium), certain alloys, and processing equipment governed by the Wassenaar Arrangement and EU Regulation 2021/821.
EU, 'Regulation 2021/821 Setting Up a Union Regime for the Control of Exports of Dual-Use Items', eur-lex.europa.eu
US export-control framework administered by the Bureau of Industry and Security (BIS, US Department of Commerce). Codified at 15 CFR Parts 730-774, the EAR governs export of dual-use items including the Commerce Control List (CCL), Entity List, Unverified List, Military End User (MEU) List. Tokenized metal projects involving critical minerals (gallium, germanium, rare earths) face EAR licence considerations.
Export Administration Regulations (United States)
Regulation (EU) 2017/821 of 17 May 2017 lays down supply chain due diligence obligations for EU importers of tin, tantalum, tungsten, and gold (the 3TG minerals) originating from conflict-affected and high-risk areas. It applies directly to EU-based smelters, refiners, and metal importers and follows the OECD five-step due diligence framework. Unlike Dodd-Frank, it does not require product-level disclosure but mandates management system audits and third-party certification. In force since 1 January 2021, it is the EU's primary instrument for addressing conflict financing through mineral supply chains.
Regulation (EU) 2017/821 — EU Conflict Minerals Regulation (EUR-Lex)
EU Consolidated Financial Sanctions List
The single official EU register of persons, entities and bodies subject to EU-wide financial restrictions, maintained by the European Commission (DG FISMA) under the Common Foreign and Security Policy (CFSP). Available in XML/CSV for screening tooling. Updates follow Council Regulations enacting Common Position decisions.
EU Consolidated List of Financial Sanctions
Source: European Commission Financial Sanctions Database (
A measure adopted by the EU Council under the Common Foreign and Security Policy (CFSP) restricting transactions with designated persons, entities, or sectors; in metals, EU restrictive measures include asset freezes, trade prohibitions on Russian steel, and import bans on specified goods. Published in the EU Official Journal.
European Commission, 'EU Sanctions Map', sanctionsmap.eu
Council Regulation (EU) 833/2014 and subsequent amendments.
The International Tin Supply Chain Initiative — a multi-stakeholder traceability and due diligence programme for tin, tantalum, and tungsten (3T) minerals mined in the African Great Lakes region (DRC, Rwanda, Burundi, Uganda). ITSCI field teams bag-and-tag minerals at mine sites, track them through the export chain, and record OECD Annex II risks including armed group involvement, child labour, and smuggling. Its standards are independently assessed as 100% aligned with the OECD five-step framework. ITSCI membership by upstream suppliers is often a precondition for procurement by electronics and automotive manufacturers subject to Dodd-Frank or EU Regulation 2017/821.
The LBMA's parallel responsible sourcing standard for silver refiners on the LBMA Good Delivery List, requiring the same five-step OECD due diligence framework as the gold guidance. Refiners producing both gold and silver Good Delivery bars must be audited against both the RGG and RSG simultaneously, typically in a combined assurance engagement. The RSG addresses the specific risk profile of silver supply chains, including artisanal mine scrap and industrial recycling streams. Compliance failure can result in suspension from the Good Delivery List.
LBMA Responsible Sourcing Programme (lbma.org.uk)
LME Russian Metals Restrictions (April 2024)
On 13 April 2024, the LME issued Notice 24/171 implementing UK sanctions (and coordinated US OFAC measures) that prohibited the warranting of Russian-origin aluminium, copper, and nickel produced on or after that date on LME-listed global warehouses. Metal produced before 13 April 2024 can still be warranted with a Certificate of Analysis evidencing the production date. The measures followed an earlier December 2023 UK ban on acquiring certain Russian metal brands. By March 2024, 91% of LME aluminium stocks and 62% of copper stocks were of Russian origin, making this one of the most significant sanctions-driven market interventions in LME history.
LME Notice 24/171 — Warranting and Trading of Russian Metal on the LME (13 April 2024)
China's Ministry of Commerce (MOFCOM) administers a licensing regime for the export of dual-use goods and technologies with civilian and military applications. Announcements 2024/33 (August 2024) and 2024/46 (December 2024) placed antimony, gallium, germanium, graphite, and related items under case-by-case export licence review, replacing open-general-licence status. Applications require end-user and end-use certification. Denials or delays effectively function as export restrictions without formal bans, and the regime is regularly extended to additional critical minerals. In November 2025 MOFCOM suspended the outright bans on Sb/Ga/Ge to US destinations but retained the licence-issuance requirement, keeping the regime active as a permanent leverage instrument.
MOFCOM Export Licensing — Dual-Use Goods and Technologies
MOFCOM Announcement 2024/33 — dual-use export controls (state-act mirror of primary Chinese text)
OFAC guidance providing that any entity owned 50% or more, individually or in aggregate, by one or more SDN-listed persons is itself blocked — even if not separately named on the SDN List. Issued 13 August 2014 and reaffirmed in subsequent FAQs. Critical for trade-finance and complex ownership-structure due diligence.
Source: OFAC Revised Guidance on Entities Owned by Blocked Persons (13 Aug 2014)
A pre-authorisation issued by the U.S. Office of Foreign Assets Control that permits a category of otherwise-prohibited transactions without requiring individual licence applications; for metals, general licences have authorised wind-down periods, agricultural commodity trade, and certain financial transactions with sanctioned counterparties.
U.S. Department of the Treasury, OFAC, 'Sanctions Programs and Country Information'
The Specially Designated Nationals and Blocked Persons List published by the US Treasury's Office of Foreign Assets Control (OFAC). US persons and global institutions with US dollar clearing relationships are prohibited from transacting with any entity or individual on the SDN list; their assets are blocked. For metals traders, the SDN list is operationally critical: since 2022 it includes major Russian aluminium (Rusal), copper, and nickel entities. Trading with an SDN-listed counterparty exposes parties to civil penalties up to USD 1 million per violation and criminal prosecution.
OFAC — Specially Designated Nationals List (US Treasury)
The cryptocurrency-specific equivalent of name screening — comparing wallet addresses against OFAC SDN (designated wallet addresses) and tracking exposure via cluster analysis. Industry providers include Chainalysis, Elliptic, TRM Labs, Crystal. Required by FinCEN for MSBs handling CVC; required by VASPs under EU MiCA and HK AMLO.
Source: OFAC Sanctions Compliance Guidance for the Virtual Currency Industry (15 Oct 2021)
The Responsible Jewellery Council's Code of Practices 2024 (effective 1 January 2025) is the only industry certification standard covering the entire jewellery and watch supply chain from mine to retail — including gold, silver, platinum group metals, diamonds, and coloured gemstones. RJC-certified members must undergo independent third-party audits against human rights, labour, environmental, and business ethics criteria. RJC certification is widely recognised by downstream purchasers as evidence of responsible sourcing and is accepted by LBMA as supporting evidence in the RGG due diligence framework.
Responsible Jewellery Council — Code of Practices 2024
Process of comparing customer names and transaction counterparties against OFAC SDN, EU Consolidated, UK OFSI, UN, and jurisdictional sanctions lists. Required by FATF R.6 (Targeted Financial Sanctions) and EU AMLD. Modern screening uses fuzzy matching (Jaro-Winkler, Levenshtein, phonetic algorithms) to catch transliteration variants; false-positive rates are a primary cost driver.
Sanctions Screening (Name & Transaction Screening)
A person, entity, or vessel listed on the OFAC Specially Designated Nationals and Blocked Persons List; U.S. persons are generally prohibited from dealing with SDNs and must block any property or interests they control; violations carry civil penalties up to the greater of $356,579 per violation or twice the amount of the transaction.
U.S. Department of the Treasury, OFAC, 'SDN List'
Established 31 March 2016 within HM Treasury, OFSI is the UK's competent authority for financial sanctions. OFSI maintains the UK Consolidated List, issues general and specific licences, and exercises monetary-penalty powers under the Policing and Crime Act 2017. Post-Brexit the UK Consolidated List diverged from EU lists.
Office of Financial Sanctions Implementation (HM Treasury)
Sanctions imposed by the UN Security Council under Chapter VII of the UN Charter, binding on all UN member states via Article 25. The Consolidated UN Security Council Sanctions List aggregates designations from the 14+ active sanctions regimes (DPRK 1718, Iran 2231, ISIL/Al-Qaida 1267, etc.).
UN Security Council Consolidated Sanctions List
Source: UN Security Council Consolidated List (
A form of equity participation granted to a government, state entity, or indigenous community in a mine without requiring that party to contribute capital during the exploration and development phase — their interest is 'carried' by the project developer. The carry is typically repaid from production cash flows before the free-carry holder receives distributions. Common in African, Papua New Guinean, and Indonesian mining joint ventures where governments mandate local equity participation. The distinction from a royalty is that a free-carry represents proportional ownership in the project, not a revenue stream.
Mining Act 1978 (Western Australia) — general JV title framework
Mining Licence / Exploration Licence / Prospecting Licence
The three principal mineral tenement categories under the Western Australia Mining Act 1978 (and similar statutes in most Anglophone jurisdictions). A Prospecting Licence (PL) permits small-scale surface sampling over a limited area. An Exploration Licence (EL) grants broader rights to explore, drill, and bulk-sample over larger areas. A Mining Licence (ML) is a production-stage right authorising extraction of specified minerals for a defined term. Together they form the mineral title chain on which JORC and NI 43-101 resource statements and project finance depend. Title status must be verified in due diligence.
Mining Licence / Exploration Licence / Prospecting Licence (ML / EL / PL)
A royalty or carried interest calculated as a percentage of the net profits from a mining operation — revenue less all operating costs, capital costs, royalties, taxes, and overhead. NPIs are the most operator-friendly royalty form because they are zero-pay when the project is unprofitable. However, they are complex to administer, create disputes over allowable cost deductions, and are disfavoured by royalty purchasers for their cost risk. NPIs are more common in oil and gas than in hard-rock metals but appear in some legacy copper and uranium royalty agreements.
The Australian national dam safety body that publishes technical guidelines on tailings dam design, operation and closure; ANCOLD Guidelines on Tailings Dams (2012) form the technical basis for Australian state mine safety regulations.
Australian National Committee on Large Dams
ANCOLD Guidelines on Tailings Dams, 2012, ancold.org.au
The horizontal distance from the point of discharge of tailings slurry to the edge of the supernatant pond on a TSF; a wider beach provides more separation between the embankment crest and free water, reduces phreatic line elevation and pore pressure, and improves embankment stability.
ANCOLD, 'Guidelines on Tailings Dams' (2012)
GISTM (2020), Requirement 6, globaltailingsreview.org.
Tailings embankment raise method in which the crest of the dam remains above a fixed vertical axis as the structure is raised, using a combination of the upstream beach and borrow material; it is intermediate in stability between upstream and downstream methods and is commonly used in moderate-seismicity environments.
Centerline Tailings Dam Construction Method
UNEP/ICMM/PRI, 'Global Industry Standard on Tailings Management' (2020), Appendix 1
A structured framework under the Global Industry Standard on Tailings Management (GISTM) that specifies how operators demonstrate compliance with each requirement; it uses an evidence-based assessment and assigns conformance levels (Conforms / Partially Conforms / Does Not Conform), and requires independent verification by a suitably qualified person (SQP).
UNEP/ICMM/PRI, 'Global Industry Standard on Tailings Management' (2020), §7, globaltailingsreview.org
A reinforced concrete or HDPE structure within a TSF used to drain clarified water (decant water) from the supernatant pond through submerged orifices into an outlet conduit, allowing water recovery and pond level management while minimising fine tailings carryover.
Decant Tower (Tailings Storage Facility)
UNEP/ICMM/PRI, GISTM (2020), Requirement 6
ANCOLD, 'Guidelines on Tailings Dams' (2012), ancold.org.au.
Tailings storage facility (TSF) embankment method in which successive raises are constructed downstream of the initial starter embankment using imported or borrow fill; the water retention capacity is large and the structure is generally considered the most stable method, particularly in seismic zones, though it requires the most material and land.
Downstream Tailings Dam Construction Method
Vick, S.G., 'Planning, Design and Analysis of Tailings Dams', BiTech Publishers, 1990.
A tailings management method in which tailings slurry is dewatered to a filter cake consistency using pressure or vacuum filtration, then stacked in engineered piles without impoundment water; reduces the risk of dam failure and water discharge relative to conventional impoundment.
ICMM Tailings Management Good Practice Guide, icmm.com
The vertical distance between the crest of a tailings storage facility (TSF) embankment and the maximum water surface level; adequate freeboard is required to prevent overtopping during flood events and is specified in design criteria based on probable maximum flood (PMF) calculations and consequence classification.
MAC, 'A Guide to the Management of Tailings Facilities' (3rd ed., 2019), mining.ca.
A performance standard for the design, construction, operation, monitoring and closure of tailings storage facilities, published in August 2020 by the Global Tailings Review (ICMM, PRI, UNEP); sets 77 requirements across 6 topics including governance, design and emergency preparedness.
Global Industry Standard on Tailings Management
Global Tailings Review, globaltailingsreview.org, August 2020
A set of 11 performance expectations published by the International Council on Mining and Metals (ICMM) in 2020 requiring members to apply the Global Industry Standard on Tailings Management (GISTM). They mandate independent reviews, consequence classification, and emergency preparedness for all tailings storage facilities (TSFs).
ICMM Tailings Management: Position Statement Performance Expectations
ICMM, 'Position Statement on Tailings Management' (2020)
The principal international technical body for dam safety globally; ICOLD's Committee on Tailings Dams and Waste Lagoons publishes technical bulletins (74, 121, 153, 195) on TSF design and failure mechanisms that form the technical foundation of the GISTM.
A tailings management method in which tailings are thickened to a paste consistency (typically 70–80% solids by weight) using high-density thickeners, then deposited in an impoundment; reduces free water in the facility and improves consolidation relative to conventional slurry impoundment.
Long-term surveillance and data collection programme at a decommissioned TSF to verify ongoing physical and chemical stability, including piezometer readings, settlement survey, seepage chemistry, vegetation cover, and water quality in receiving bodies; required under the GISTM indefinitely or until perpetual care obligations are met.
ICMM, 'Integrated Mine Closure: Good Practice Guide' (2nd ed., 2019), icmm.com.
An engineered embankment or dam constructed to retain the fine-grained residue (tailings) from mineral ore processing; TSF dams are classified by construction method (upstream, downstream, centreline) and are among the largest engineered structures on Earth.
Global Industry Standard on Tailings Management (GISTM), globaltailingsreview.org, August 2020
A tailings dam construction method in which the dam crest is raised upstream over previously deposited tailings beaches; widely used for its low cost but considered the highest-risk construction method by ICOLD and GISTM because its foundations are composed of uncompacted tailings.
Upstream Method of TSF Embankment Construction
ICOLD Bulletin 195 (2020), icold-cigb.org
A public academic database that records confirmed tailings storage facility failures worldwide since 1915, compiled by independent researchers and providing date, location, release volume, downstream impact and cause classification for each event.
World Mine Tailings Failures, worldminetailingsfailures.org
The highest public recognition available in the CDP environmental disclosure system, awarded to companies demonstrating a comprehensive understanding of environmental risks and implementing best-practice environmental leadership; relevant for mining companies disclosing on climate, water and forests.
A family of indices based on the S&P Global Corporate Sustainability Assessment (CSA), tracking the sustainability performance of companies globally and by sector; membership is determined by companies' performance on the annual CSA questionnaire.
The EU Corporate Sustainability Reporting Directive (CSRD) concept requiring companies to assess both financial materiality (how ESG issues affect the company) and impact materiality (how the company affects people and the environment), and to report on both dimensions.
EFRAG European Sustainability Reporting Standards (ESRS)
A rating from CCC (laggard) to AAA (leader) assigned by MSCI to publicly listed companies, measuring their resilience to long-term, industry-specific ESG risks and opportunities; weighted key issues for the metals and mining sector include tailings, water, GHG emissions, labour, and health and safety.
Direct greenhouse gas emissions from sources owned or controlled by an organisation, including combustion in owned boilers, furnaces and vehicles; for mining, includes direct emissions from mine haul trucks, processing facilities and explosives detonation.
GHG Protocol Corporate Accounting and Reporting Standard, ghgprotocol.org
Indirect greenhouse gas emissions from the generation of purchased or acquired electricity, steam, heat, or cooling consumed by a reporting organisation; the dominant Scope 2 source for mining companies is purchased electricity for mine processing.
All indirect greenhouse gas emissions not covered by Scope 2 that occur in the value chain of a reporting organisation, including upstream emissions from purchased goods/services and downstream emissions from the use and end-of-life of sold products; for steel and aluminium producers, Scope 3 customer use-of-product emissions are typically the largest category.
GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard, ghgprotocol.org
A score measuring the degree to which a company's enterprise value is at risk from ESG factors not managed by the company; categories are Negligible (0–10), Low (10–20), Medium (20–30), High (30–40) and Severe (40+).
Sustainalytics ESG Risk Rating (Negligible to Severe)
Sustainalytics ESG Risk Ratings Methodology, sustainalytics.com
A mineral or mineral-derived material designated by a government as economically important and subject to supply risk, typically covering minerals essential to advanced manufacturing, defence or the energy transition; criteria vary by jurisdiction (USGS, EU CRMA, UK, Japan METI).
Critical Mineral / Critical Raw Material
USGS Critical Minerals Program, usgs.gov
EU regulation (in force from 2024) establishing benchmarks for EU extraction (10%), processing (40%) and recycling (15%) of strategic raw materials, and requiring member states and key industry operators to develop contingency plans; identifies 17 strategic raw materials including lithium, cobalt, rare earths and manganese.
European Commission, single-market-economy.ec.europa.eu
The US Department of Defense logistics agency responsible for managing the National Defense Stockpile of strategic and critical minerals on behalf of the DoD; authorised by 50 USC Chapter 98.
A Japanese government agency (METI) that secures stable mineral resource supplies for Japan through overseas exploration investment, government-mandated stockpiling of nine non-ferrous metals, and financial support for Japanese companies in overseas resource development.
Japan Oil, Gas and Metals National Corporation
A South Korean state-owned enterprise (under MOTIE) that manages Korea's strategic mineral stockpile and invests in overseas resource development, covering coal, copper, nickel, cobalt, lithium and rare earths.
Korea Resources Corporation, kores.or.kr
US government stockpile of strategic and critical materials held to reduce dependence on foreign supply during a national emergency. Established under the Strategic and Critical Materials Stock Piling Act (50 U.S.C. §§ 98–98h) and administered by the Defense Logistics Agency's Strategic Materials office. From the 1990s through the 2010s the NDS was steadily drawn down and sold off, reaching historically low inventories. Since 2022 the NDS has been in a rebuild phase, with dedicated congressional appropriations for acquisitions of cobalt, lithium, rare earths, tungsten, and antimony. NDS purchases are executed via DLA Strategic Materials solicitations and serve as anchor offtake for domestic producers. Stockpile targets are set by the Annual Materials Plan submitted to Congress.
US Defense Logistics Agency — Strategic Materials office (administrator of the National Defense Stockpile)
The US government strategic stockpile of materials determined to be critical for national defense and lacking reliable domestic or allied sources; administered by DLA Strategic Materials; authorised under the Strategic and Critical Materials Stockpiling Act (50 USC Ch. 98).
A government-held inventory of critical minerals maintained to ensure supply during disruption; distinguished from commercial inventory by its national security or economic resilience purpose; examples include the US National Defense Stockpile and Japan's JOGMEC non-ferrous metal stockpile.
A comprehensive technical and economic study meeting the standard required by lenders and equity investors to finance a mining project; corresponds to AACE Class 1–2 estimate (±10–15%), includes proven process flowsheet, definitive capital and operating cost estimates, mine schedule, and metallurgical test results.
CIM, 'CIM Definition Standards for Mineral Resources and Mineral Reserves' (2014), mrmr.cim.org
The most detailed level of pre-construction engineering study, providing a capital cost estimate to ±10–15% accuracy; required to support project financing (hence 'bankable') and conversion of Probable Mineral Reserves to the Proven category under NI 43-101 and JORC.
EPC (lump-sum turnkey): a single contractor takes full responsibility for engineering, procurement, and construction and delivers a completed facility at a fixed price, bearing cost and schedule risk. EPCM (Engineering, Procurement and Construction Management): the contractor manages but does not directly execute construction; subcontractors are engaged by the owner, reducing the contractor's risk but placing schedule and cost risk with the owner.
Engineering, Procurement and Construction (EPC) vs EPCM Contract
Institution of Chemical Engineers (IChemE), 'Red Book' EPC Contract (2013)
NEC4, Engineering and Construction Contract, neccontract.com.
A project delivery model in which the EPCM contractor manages engineering design, procurement, and construction supervision on behalf of the owner, who retains the prime contracts with vendors and constructors; common for large mining capital projects.
Engineering, Procurement and Construction Management Contract
FIDIC Conditions of Contract for EPC/Turnkey Projects (Silver Book); industry usage
A detailed engineering study conducted after a Pre-Feasibility Study (PFS) that defines the project scope, design basis, and key specifications sufficient to prepare a Class 2 cost estimate (±10–15%); FEED output forms the basis for EPC or EPCM contractor tender packages.
AACE International, 'Cost Estimate Classification System — As Applied in Engineering, Procurement and Construction for the Process Industries' (TCM 7.3, 2011), aacei.org.
A detailed engineering study conducted after a prefeasibility or feasibility study to establish a project's scope, schedule, and capital cost estimate to a ±10–15% accuracy level; typically precedes the issuance of EPCM or EPC tender packages.
AACE International Recommended Practice No. 18R-97; industry usage in mining engineering
An engineering firm appointed by the project owner to provide independent technical oversight and review of an EPCM or EPC contractor's work; distinct from the EPCM contractor and answers solely to the owner.
Standard practice; referenced in FIDIC suite of contracts
An intermediate-level study of mineral project viability conducted after scoping but before a definitive feasibility study; provides a capital cost estimate to ±25–35% accuracy and sufficient engineering to support a decision to proceed to DFS or bankable feasibility study.
CIM Best Practice Guidelines for Mineral Resource and Reserve Estimation (2019)
A preliminary assessment of the economic viability of a mineral project, based on inferred mineral resources; provides a first-pass capital cost estimate to ±50% accuracy and identifies the most promising development concept for further study.
Scoping Study / Preliminary Economic Assessment (PEA)
A clause or process in long-term physical supply contracts allowing either party to challenge a certificate of analysis result by requesting a referee assay at an independent laboratory; the average of the original and referee results, or the referee result alone, determines the final payable metal content.
Assay Exchange (Physical Metals Contracts)
LBMA, 'Good Delivery Rules for Gold and Silver Bars' (2023), lbma.org.uk; standard contract practice in copper concentrate sales.
A market structure in which nearby contract prices are higher than deferred (forward) prices, reflecting tight nearby supply, high borrowing costs, or strong spot demand; in LME terminology, the cash price trades at a premium to the three-month price.
Hull, J.C., 'Options, Futures and Other Derivatives', 10th ed., Pearson.
A document issued by a carrier acknowledging receipt of cargo for shipment; it serves three functions: receipt for goods shipped, evidence of the contract of carriage, and a document of title enabling the holder to claim delivery of the goods at destination. In metals trade, the original B/L is required to release metal at port.
UNCTAD, 'Multimodal Transport: The Feasibility of an International Legal Instrument' (2003)
An Incoterms® 2020 trade term under which the seller arranges and pays for carriage and minimum cargo insurance to the named port of destination; risk transfers to the buyer when goods are loaded on the vessel at the port of origin, before the sea voyage begins.
Cost, Insurance and Freight (Incoterms® 2020)
A document issued by a laboratory or inspection company certifying the chemical composition and physical properties of a metal shipment, including purity, trace element levels, and applicable specification grades; required by buyers, customs authorities, and LME warrant applications.
LME, 'LME Approved Brands List and Rules' (2024), lme.com
LBMA, 'Good Delivery Rules' (2023), lbma.org.uk.
A market structure in which forward prices are higher than spot (nearby) prices, typically reflecting storage costs, financing costs, and convenience yield; the opposite of backwardation. In copper, contango usually reflects ample nearby supply and encourages warehouse storage.
A penalty charge payable by the cargo charterer to the shipowner when loading or discharging operations exceed the agreed laytime; the rate (per day or per hour) is specified in the charterparty and applies to the full vessel until operations recommence or the vessel departs.
BIMCO, 'Laytime and Demurrage' explanatory notes, bimco.org
Lloyd's Maritime and Commercial Law Quarterly.
An amount paid by the shipowner to the charterer when cargo operations are completed faster than the agreed laytime; typically set at half the demurrage rate and acts as an incentive for fast port turnaround.
An Incoterms® 2020 trade term under which the seller is responsible for the goods until they are loaded on board the vessel nominated by the buyer at the named port of shipment; risk and cost transfer to the buyer from that point, applicable only to sea and inland waterway transport.
Metal that has been registered in an exchange-approved warehouse and has a warrant (ownership document) issued against it, making it eligible for delivery against exchange futures contracts; LME warrant metal is publicly reported in LME Daily Inventory Reports.
The process of transferring ownership of LME-warranted metal stored in an LME-approved warehouse without physically moving the metal; executed by cancelling a warrant in one name and reissuing it in the buyer's name via an LME clearing member, enabling settlement of exchange contracts.
Pricing convention in concentrate sales contracts where 'M' is the month of the bill of lading and 'x' is the number of months forward; M+1 means the average LME price in the month after shipment date is used for settlement.
M+x Pricing (Metal Concentrate Settlement)
Industry standard concentrate offtake contract terms
Physical metal held in exchange-approved or other warehouses that does not have an exchange warrant registered against it; off-warrant stocks are not publicly reported and are subject of periodic estimation by market intelligence firms.
A financial hedging position in exchange futures or OTC derivatives taken by a producer, trader or consumer to offset the price risk of a physical metals position; 'paper' refers to the financial (non-physical) nature of the hedge.
The fulfilment of an exchange futures contract obligation by the transfer of the underlying physical commodity (e.g. LME warrant for copper cathode) from seller to buyer, as distinct from cash settlement; physical delivery is the standard settlement mechanism on the LME.
The agreed pricing period used in a concentrate offtake contract, defining which average exchange price is used to settle the payable metal value; common QP structures are M (month of shipment), M+1 (month after bill of lading), M+2, and M+3.
Quotational Period (QP) in Concentrate Trading
A broadly diversified commodity futures index published by Bloomberg; the Industrial Metals Subindex (BCOMIN) tracks copper, aluminium, zinc and nickel futures and is used as a benchmark for passive commodity investment.
Bloomberg Commodity Index (BCOM / BCOMIN)
A rule in an index methodology that limits the maximum weight of any single constituent, preventing concentration in the largest components; common in mining equity indices where one or two large-cap companies can dominate.
The proportion of a company's shares available for trading by the public, excluding shares held by controlling shareholders, insiders and strategic holders; used in index weighting to reflect the investable portion of a company's market capitalisation.
MSCI, msci.com — index methodology documents
An exchange-traded fund tracking the NYSE Arca Gold Miners Index (GDMNTR), investing in global gold and silver mining companies; one of the largest and most liquid gold equity ETFs by AUM.
An exchange-traded fund tracking the MVIS Global Junior Gold Miners Index, investing in smaller gold and silver mining and exploration companies; the primary ETF benchmark for junior gold equity.
A production-weighted composite commodity futures index published by S&P Dow Jones Indices; the S&P GSCI Industrial Metals sub-index tracks copper, aluminium, zinc, nickel and lead futures.
S&P GSCI (Goldman Sachs Commodity Index)
A modified equal-dollar-weighted index of gold mining companies that do not hedge their gold production beyond 1.5 years; one of the oldest gold equity indices published by NYSE Arca (ICE).
The total number of injuries (including near-misses, first-aid injuries and medical treatment injuries) per million hours worked; broader than TRIFR, used internally by some mining companies.
Permit-controlled entry into spaces with limited access, poor ventilation and potential atmospheric hazards (mills, ore bins, ducts, tanks, silos). Requires atmospheric testing, ventilation, standby rescue and communication. US OSHA 29 CFR 1910.146 (general industry); MSHA 30 CFR 57.15015 (metal/nonmetal mines).
UK HSE Confined Spaces Regulations 1997.
Number of workplace fatalities per million or hundred-million hours worked. Global mining FFR in 2023 approximately 0.02 per million hours. Public disclosure required under GRI 403-9 and mandatory in ASX, JSE and TSX reporting.
GRI 403-9 Occupational Health and Safety
Prioritised sequence of hazard control measures: Elimination > Substitution > Engineering Controls > Administrative Controls > PPE. Formalised by ILO, NIOSH, and ISO 45001. Mining safety programmes require documented application of the hierarchy in each risk assessment.
Systematic process to identify workplace hazards, assess associated risks (likelihood × consequence) and prioritise controls. Foundation of ISO 45001 clause 6.1.2 and OSHA process safety management. Standard risk matrix outputs: Extreme, High, Medium, Low ratings drive control-hierarchy selection.
Hazard Identification and Risk Assessment
ILO Occupational Safety and Health Convention C155.
A structured incident investigation methodology used by the mining industry to identify underlying causes of injuries and incidents; developed in the Australian mining sector and adopted by major mining companies globally.
Safe Work Australia, safeworkaustralia.gov.au
ILO Convention 176 — Safety and Health in Mines (1995). Establishes minimum framework of employer duties, worker rights, inspection and enforcement in mining. Ratified by 34 countries as of 2024. National mining safety regimes (South Africa MHSA, Zambia Mines Act) reference C176 principles.
Convention on Safety and Health in Mines
South Africa Mine Health and Safety Act 29 of 1996
ILO Code of Practice on Safety and Health in Open-Cast Mines.
International Standard for occupational health and safety (OHS) management systems, published March 2018. Replaced OHSAS 18001. Structured on Annex SL (identical high-level structure to ISO 9001 and 14001). Certification is voluntary but increasingly required by mine operators, tier-1 contractors and lenders.
International Standard for OHS Management
ISO 45001:2018 Occupational Health and Safety Management Systems
IAF Multilateral Recognition Arrangement
Documented step-by-step breakdown of a job task, identifying hazards at each step and specifying controls. Also called JHA (Job Hazard Analysis). Widely required before high-risk tasks (working at heights, hot work, lifting operations, isolation). MSHA and NIOSH publish standard JSA templates.
MSHA Task Training Requirements 30 CFR 48.7.
Procedure to isolate hazardous energy sources (electrical, hydraulic, pneumatic, mechanical, thermal, gravitational) during maintenance so equipment cannot be re-energised inadvertently. US OSHA 29 CFR 1910.147; UK PUWER Regulations 1998. Failure = 10% of US fatal industrial incidents historically.
US OSHA 29 CFR 1910.147 The Control of Hazardous Energy
The number of lost-time injuries (injuries resulting in an employee being absent from work for one or more days beyond the day of injury) per million hours worked; a commonly reported mine safety KPI.
Two distinct US federal regulators: MSHA (Mine Safety and Health Administration) covers all mining and mineral processing; OSHA (Occupational Safety and Health Administration) covers general industry. MSHA has stricter inspection frequency (2/year underground, 1/year surface) and broader citation authority than OSHA.
US Federal Mining vs General-Industry Safety Regimes
Federal Mine Safety and Health Act 30 USC §801
Occupational Safety and Health Act 29 USC §651
An unplanned event that did not result in injury, illness or damage but had the potential to do so; near miss reporting is encouraged by mine safety regulators and ICMM as a leading indicator of safety performance.
Near Miss / High Potential Incident (HPI)
Reporting of events that could have caused injury or damage but did not — typically 10-100× more frequent than actual incidents (Heinrich pyramid). Best-practice programmes target 8-15 near-misses per lost-time injury. NIOSH publishes near-miss reporting templates for the mining sector.
NIOSH Near-Miss Reporting for the Mining Industry
ICMM Critical Control Management Good Practice Guide
Equipment worn by workers to reduce exposure to hazards (hard hat, safety glasses, respirator, ear protection, high-vis, steel-toe boots, gloves, harnesses). Regulated by US OSHA 29 CFR 1910 Subpart I, EU Directive 89/656, and site-specific PPE matrices. Represents the least-preferred control per hierarchy.
EU PPE Directive 89/656/EEC and Regulation 2016/425
16-section standardised document communicating physical, health and environmental hazards of a chemical. Required at every workplace handling hazardous substances (US OSHA HazCom, EU REACH/CLP Article 31, GHS Rev 10). Cyanide, sulphuric acid, mercury, xanthates — all require SDS at mine sites.
EU REACH Regulation EC 1907/2006 Article 31.
Progressive irreversible lung disease caused by inhalation of respirable crystalline silica (RCS). Historically the largest occupational disease burden in mining. OSHA Permissible Exposure Limit: 50 µg/m³ 8-hour TWA (US 29 CFR 1910.1053). South African gold-mining silicosis class action settled $400M in 2018.
Occupational Lung Disease from Silica Exposure
ILO Global Programme for the Elimination of Silicosis.
A standardised measure of workplace injury frequency, calculated as the number of recordable injuries (fatalities, lost-time injuries, restricted-work injuries, and medical treatment injuries) per million hours worked; used by mining companies and reported in sustainability disclosures.
ICMM Health and Safety data collection definitions
Australian MOSH statistics, dmirs.wa.gov.au
The London Stock Exchange's market for smaller and growing companies; significant representation of international mining and resources companies; governed by AIM Rules for Companies.
AIM (Alternative Investment Market — London)
The reduction in existing shareholders' percentage ownership of a company resulting from the issuance of new shares; common in junior mining through equity financings, flow-through shares and option exercises.
Share Dilution (Junior Mining Financing)
A Canadian tax mechanism in which a mining or resource company renounces its exploration expenditure deductions to shareholders; investors receive a tax deduction equal to the amount invested, incentivising exploration capital in Canada.
The Canadian securities disclosure filing system administered by the CSA, where all Canadian public companies (including TSX-V mining explorers) file NI 43-101 Technical Reports, annual information forms, material change reports and continuous disclosure documents.
System for Electronic Document Analysis and Retrieval (Canada)
Canadian Securities Administrators, sedarplus.ca
A Canadian stock exchange operated by TMX Group for smaller and emerging companies including junior mining explorers; provides access to capital for NI 43-101-compliant exploration and development-stage mining companies.
A written contract between an employer and a trade union setting out terms and conditions of employment including wages, hours, safety standards, grievance procedures, and duration; in mining, CBAs typically run 2–5 years and are negotiated at mine or company level.
ILO, 'Collective Bargaining: A Policy Guide'
A written contract between an employer (or employer association) and a trade union, negotiated collectively on behalf of workers, covering wages, hours, working conditions, benefits and grievance procedures; CBAs are the primary instrument of industrial relations in mining.
ILO Convention 98 (Right to Organise and Collective Bargaining, 1949), ilo.org
Written contract between employer and recognised union covering wages, hours, benefits, grievance procedure and working conditions. Standard 2-4 year term. In mining, CBA renewals routinely trigger production shutdowns (Chilean copper strikes, South African platinum-belt disputes).
ILO Convention 98 Right to Organise and Collective Bargaining
US National Labor Relations Act 29 USC §151
South Africa Labour Relations Act 66 of 1995.
Australian collective agreement system under Fair Work Act 2009 — bargaining between an employer and its employees (with or without a union) to establish terms specific to that enterprise or site. Common in Australian mining; formal approval by Fair Work Commission.
Fair Work Commission Enterprise Agreements Register
Employment structure for internationally deployed staff. LTA (Long-Term Assignment) = 2-5 years with home-country social security continuation; STA (Short-Term Assignment) = 3-24 months with host-country tax treatment. Standard categories in mining industry HR frameworks.
OECD Guidelines for Multinational Enterprises
ILO Convention 97 Migration for Employment.
A labour mobility arrangement in which mining workers are flown (or driven) to a remote mine site on a roster schedule (e.g. 2 weeks on, 1 week off) rather than residing in a nearby community; prevalent in Australian, Canadian and African remote mining operations.
Fly-In Fly-Out (FIFO) / Drive-In Drive-Out (DIDO)
Cash allowance paid to employees assigned to locations classified as difficult (security, climate, health infrastructure, isolation). Standard tables from Mercer, ORC or ECA International rate cities on hardship indices 0-40; premium ranges 5-40% of base.
Mercer Cost of Living Survey and Hardship Ratings
UN Common Rest and Recuperation Framework.
ICMM guidance establishing expectations for meaningful engagement with indigenous communities including free, prior and informed consent (FPIC); the ICMM 10 Mining Principles require members to respect indigenous peoples' rights and implement FPIC processes particularly for projects that may affect their lands or cultural heritage.
ICMM Indigenous Peoples and Mining: Good Practice Guide (Informed, Fair, Free Prior Consent)
ICMM, 'Indigenous Peoples and Mining: Good Practice Guide' (2015), icmm.com
Ten ILO Conventions covering fundamental principles and rights at work: freedom of association (C87, C98), forced labour (C29, C105), child labour (C138, C182), discrimination (C100, C111), and occupational safety (C155, C187). Universal ratification required by ILO Declaration 1998.
ILO Declaration on Fundamental Principles and Rights at Work 1998
The temporary refusal by an employer to allow workers access to the workplace, used as leverage in collective bargaining negotiations; the employer-side counterpart of a strike.
Labour Relations Act 66 of 1995 (South Africa)
ILO Convention 143 (Migrant Workers) and OECD Guidelines for Multinational Enterprises establish minimum standards for migrant worker recruitment, wages, conditions and repatriation. Critical for Gulf state mining and Southeast Asian construction contractors.
IOM Handbook on Migration for Employment.
Injury = acute event (fall, cut, burn, crush). Occupational disease = long-latency exposure-related illness (silicosis, mesothelioma, noise-induced hearing loss, hand-arm vibration syndrome, dermatitis). Mining industry reporting increasingly separates the two — GRI 403-10.
ILO List of Occupational Diseases (Rev 2010)
Statutory verification that a job applicant has legal right to work in the country. UK Home Office prescribes documentary check under Immigration Act 2016; US Form I-9 under Immigration Reform and Control Act 1986. Fines £45,000+ per illegal worker in UK.
UK Home Office Right to Work Employer Guidance
Employer policy that ensures an expatriate employee pays neither more nor less tax while on assignment than they would have paid at home. Tax equalisation calculation is standard in Big-4-audited mining company HR policies for LTA staff.
EY Global Mobility Guide to Tax Equalisation
A work stoppage initiated by workers without authorisation from the official trade union; in the mining context, wildcat strikes often occur over immediate safety grievances or pay disputes; notable examples include South African platinum strikes.
A cessation of work by employees, either through a strike (initiated by workers) or lockout (initiated by management), typically arising from failed collective bargaining; in metals mining, work stoppages at major operations (e.g. Chilean copper, South African platinum) can move global metal prices by disrupting mine-level supply.
ILO, 'ILO Convention C087 — Freedom of Association' (1948)
Bureau of Labor Statistics, 'Work Stoppages', bls.gov.
Formal system of worker representatives on the corporate board, most developed in Germany (Mitbestimmung — 50% for firms >2000; 33% for 500-2000) and Sweden. Emerging in EU Corporate Sustainability Reporting Directive. Not standard in UK/US corporate governance.
German Codetermination Act 1976 (Mitbestimmungsgesetz)
Sweden Board Representation for Private Employees Act
The Fraser Institute's composite index combining the Policy Perception Index with the Best Practices Mineral Potential score to produce an overall assessment of a jurisdiction's attractiveness for mining investment.
Mining Mineral Investment Attractiveness Index (Fraser)
Fraser Institute Annual Survey of Mining Companies
A composite index from the Fraser Institute Annual Survey of Mining Companies measuring how government policy affects the attractiveness of a jurisdiction for mineral exploration and investment; based on survey responses from mining executives on taxation, regulatory uncertainty, permits, infrastructure and political stability.
Policy Perception Index (Fraser Institute)
The total market value of assets managed by an investment entity; for sovereign wealth funds, AUM is typically reported in their annual reports or estimated by the SWF Institute where not publicly disclosed.
Assets Under Management (Sovereign Wealth Fund)
SWF Institute, swfinstitute.org; individual fund annual reports
A policy by which a sovereign wealth fund excludes or divests from companies that breach ethical, ESG or sector-specific criteria; Norges Bank (NBIM) publishes an annual exclusion list of companies excluded from the GPFG on ethical or product-based grounds.
Divestment Screen (SWF Exclusion Policy)
Norges Bank Investment Management, nbim.no
GPFG Guidelines for Observation and Exclusion
The time allowed by the shipowner to the charterer for loading or discharging operations, as specified in the charterparty; if operations exceed laytime, demurrage accrues; if completed ahead of time, despatch may be payable.
Scrutton on Charterparties and Bills of Lading, 24th ed., Sweet & Maxwell.
The formal investment policy of a sovereign wealth fund, defining its objectives, asset allocation, risk tolerance and exclusion policies; mandates range from stabilisation funds (narrow, liquid) to development funds (illiquid, long-term infrastructure/resources).
Investment Mandate (Sovereign Wealth Fund)
IWG Generally Accepted Principles and Practices (GAPP) — Santiago Principles (2008)
Council Regulation (EC) No 139/2004 on the control of concentrations between undertakings; the EU's mandatory pre-merger notification framework under which the European Commission reviews transactions meeting worldwide and EU turnover thresholds.
European Commission DG COMP, competition-policy.ec.europa.eu
A measure of market concentration calculated as the sum of squared market shares of all firms in a market; used by antitrust authorities (DOJ, EC DG COMP) to assess whether a proposed merger would significantly increase market concentration; scores above 2,500 (post-merger) with delta >150 typically trigger closer scrutiny.
DOJ/FTC Horizontal Merger Guidelines (2023)
A request for additional information issued by the US DOJ or FTC to parties in a merger notification under the Hart-Scott-Rodino Act, following the initial waiting period; extends the review period and significantly increases compliance burden.
Second Request (US Hart-Scott-Rodino Act)
A social investment contribution required under South Africa's Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice; mining companies must allocate a percentage of net profit after tax to socio-economic development benefiting historically disadvantaged South Africans.
B-BBEE Socio-Economic Development (SED) Contribution
DTI Codes of Good Practice, B-BBEE Commission, bbbeecommission.co.za
Legally required or voluntary agreement between mining company, government and community formalising community-development obligations (infrastructure, education, health, employment). Mandatory in Sierra Leone, Liberia, Papua New Guinea, Philippines under mining codes.
World Bank Mining Community Development Agreement Sourcebook
Voluntary spending by mining companies on programmes that benefit host communities beyond regulatory requirements, including education, health, infrastructure, and enterprise development; reported under GRI 413 (Local Communities) and ICMM's Social Progress Indicators framework.
ICMM, 'Social Progress Indicators' (2021), icmm.com
GRI, 'GRI 413: Local Communities 2016', globalreporting.org.
A South African term for discretionary corporate spending on social development programmes in communities, typically measured as a percentage of net profit after tax (NPAT); CSI contributes to a company's Broad-Based Black Economic Empowerment (B-BBEE) Social and Economic Development (SED) scorecard element.
Corporate Social Investment (South Africa)
dtic, 'B-BBEE Codes of Good Practice' (2013, as amended 2023), dtic.gov.za.
A systematic assessment of the potential impacts of a proposed mine on indigenous or non-indigenous cultural heritage — including sacred sites, artefacts, archaeological remains and cultural landscapes — required in most mining jurisdictions prior to project approval.
Cultural Heritage Assessment (Mining Impact)
IFC Performance Standard 8 (Cultural Heritage)
The right of indigenous peoples to give or withhold consent to development projects affecting their lands, territories and resources before (prior) and without coercion (free) on the basis of adequate information (informed); enshrined in UNDRIP Articles 10, 19 and 32, ILO C169, and IFC Performance Standard 7.
UNDRIP (UN General Assembly Resolution 61/295, 2007)
Consultation = duty to discuss; FPIC = duty to obtain consent. Higher-standard FPIC applies specifically to Indigenous Peoples' rights under UNDRIP; general community consultation is the norm elsewhere. Distinction is central to Peru's Prior Consultation Law and Colombia's Constitutional Court Sentence T-129/2011.
Colombia Constitutional Court Sentence T-129/2011.
Right of Indigenous Peoples to give or withhold consent to actions affecting their lands, territories and resources — free from coercion, given before authorisation, and based on full information disclosure. Codified in UNDRIP Article 32, ILO Convention 169 and IFC PS7.
UN Declaration on the Rights of Indigenous Peoples (UNDRIP) Article 32
Formal, accessible, culturally appropriate system through which affected community members can raise concerns and receive responses from the company. Required under IFC PS1 and UN Guiding Principles on Business and Human Rights (Effectiveness Criteria — UNGP 31).
UN Guiding Principles on Business and Human Rights Principle 31
A negotiated agreement between a mining or resource company and an indigenous community, setting out the terms under which the project will proceed, including royalties, employment, training and environmental commitments; common in Canada and Australia.
ILO Convention 169 (1989): the primary binding international treaty on Indigenous Peoples' rights. Ratified by 24 countries including Norway, Denmark, Mexico, Peru, Argentina, Chile, Brazil, Colombia. Establishes right to consultation, land rights and cultural protection.
Indigenous and Tribal Peoples Convention
ILO Convention 169 (1989) Concerning Indigenous and Tribal Peoples
Legally binding agreement between a mining company and an Indigenous or local community defining benefits (employment quotas, revenue sharing, business opportunities, cultural protections) in exchange for community support. Standard in Canadian mining (>500 IBAs signed since 2000).
Government of Canada Indigenous Services IBA Framework
Prospectors and Developers Association of Canada IBA Guide
UN Declaration on the Rights of Indigenous Peoples.
The ongoing acceptance and approval by local communities and other stakeholders of a mining company's activities; not a formal regulatory licence but a reflection of the quality of community relations, FPIC processes and benefit-sharing arrangements.
Mining industry usage; referenced in ICMM sustainability reports and PDAC e3 Plus guidelines
Legal obligation to source a defined percentage of goods, services or employment locally (village, district, national). Widespread: Angola Petroleum Local Content Law, Ghana Minerals Development Fund Act, Indonesia UU Minerba 2020, Zambia Mines Act 2015 §60.
World Bank Local Content Policies Review
IISD Local Content Best Practices Guide.
A place of spiritual, cultural or historical significance to an indigenous community; in Australian mining law, protected under the Aboriginal and Torres Strait Islander Heritage Protection Act 1984; requires cultural heritage assessment prior to surface disturbance.
Sacred Site / Significant Aboriginal Site
Aboriginal and Torres Strait Islander Heritage Protection Act 1984 (Cth)
A regulatory requirement for all holders of mining rights in South Africa, stipulating social and labour commitments including local employment, skills development, mine community development and housing; submitted to and approved by the DMRE under the MPRDA.
Mineral and Petroleum Resources Development Act (MPRDA), DMRE South Africa, dmre.gov.za
Informal, dynamic acceptance by local communities and stakeholders granting a company implicit permission to operate — distinct from statutory licence. Not legally enforceable but critical to project viability. Loss of SLO has stopped or delayed >$25B of mining projects globally (Ipsos MORI 2020).
ICMM Social Licence to Operate Framework
UN Guiding Principles on Business and Human Rights (UNGP)
31 principles endorsed by UN Human Rights Council in 2011, establishing State duty to protect, corporate responsibility to respect, and access to remedy. Foundation of modern human-rights due diligence laws (France Duty of Vigilance, Germany Supply Chain Act 2023, EU CSDDD).
State Duty and Corporate Responsibility Framework
UN Human Rights Council Resolution 17/4 (2011)
UN Working Group on Business and Human Rights.
Voluntary Principles on Security and Human Rights
Multi-stakeholder initiative established 2000 providing guidance to extractive companies on maintaining safety and security while respecting human rights. Signatories include Rio Tinto, BHP, Anglo American, and 34 governments and NGOs.
Voluntary Principles on Security and Human Rights Initiative
UN Guiding Principles on Business and Human Rights
A measurable conservation outcome from actions designed to compensate for significant residual adverse biodiversity impacts after avoidance and mitigation; offsets are implemented as a last resort in the mitigation hierarchy and must achieve no-net-loss or net gain.
Biodiversity Offset / Conservation Offset
Business and Biodiversity Offsets Programme (BBOP) Standard (2012), forest-trends.org
Discounted present value of expected future closure and post-closure obligations, recognised on the balance sheet as a non-current liability under IAS 37 and IFRS 6. Major miners hold $2-15B closure provisions each; discount rate sensitivity of ±0.5% can move book value by 10-25%.
Balance-Sheet Provision for Site Retirement
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
IFRS 6 Exploration for and Evaluation of Mineral Resources
Assessment of the combined environmental and social effects of multiple past, present and reasonably foreseeable projects in the same region. Increasingly required for mining developments in the Andean copper belt, Canadian tar sands and DRC copper-cobalt belt where multiple operators interact.
Aggregate Multi-Project Environmental Analysis
IFC Good Practice Handbook on Cumulative Impact Assessment
Comprehensive study — often 2-4 years and thousands of pages — assessing biophysical, social and economic impacts of a proposed mine or smelter. Required under national laws (US NEPA, EU Directive 2014/52, Canadian IAAC, Chile SEIA) and IFC PS1 for lender-financed projects. Public consultation and government approval precede construction.
Statutory Pre-Approval Environmental Study
Site-specific plan detailing how disturbed land, water and infrastructure will be restored during operations and at closure. Australia requires ERPs under state Mining Acts (e.g., Queensland Mineral Resources Act 1989); financial assurance (reclamation bond) is calibrated to the plan cost estimate.
Progressive and Closure Rehabilitation Program
Queensland Environmental Protection Act 1994
Western Australia Mining Rehabilitation Fund Act 2012
ICMM Integrated Mine Closure Good Practice Guide.
Financial industry benchmark (140+ signatory institutions) for identifying and managing environmental and social risk in project finance ≥$10M. Requires IFC PS-aligned due diligence, categorisation A/B/C, action plans, independent review and ongoing monitoring. EP4 (2020) adds climate change, human rights and Indigenous Peoples chapters.
Voluntary Bank Framework for Project Finance
Equator Principles Association Annual Report
Where EIA covers biophysical impacts, ESIA integrates social, cultural, health, human-rights and gender dimensions. IFC PS1 mandates ESIA for high-risk projects. Emerging jurisdictions (Guinea, DRC, Papua New Guinea) increasingly require ESIA rather than EIA-only for mining and refining.
Environmental and Social Impact Assessment
IFC Performance Standard 1 ESIA Requirements
A financial instrument (cash bond, bank guarantee, insurance bond, or reclamation trust) required by regulators to ensure mining companies have set aside funds to cover the full cost of mine rehabilitation and closure, protecting the public from orphan mine liabilities.
Mine Closure Financial Assurance (Rehabilitation Bond)
ICMM Mine Closure Good Practice Guide; state mine closure legislation (WA DMIRS, Ontario Ministry of Energy, Mines and Minerals)
An online tool developed by IUCN, UNEP-WCMC, Conservation International, and BirdLife International that combines the IUCN Red List, World Database on Protected Areas, and World Database of Key Biodiversity Areas; used by mining companies and their lenders to screen project footprints for biodiversity sensitivity during due diligence.
Integrated Biodiversity Assessment Tool (IBAT)
An IFC environmental and social standard that requires project developers and companies receiving IFC financing to protect biodiversity, avoid impacts in Critical Habitats (where no-net-loss is required), and apply the mitigation hierarchy; applicable to all Equator Principles-aligned project finance transactions.
IFC Performance Standard 6: Biodiversity Conservation
IFC, 'Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources' (2012)
IUCN Red List of Threatened Species — the authoritative global inventory of biodiversity conservation status (Least Concern, Near Threatened, Vulnerable, Endangered, Critically Endangered, Extinct in the Wild, Extinct). Central input to IFC PS6 Critical Habitat determinations for mining projects.
IUCN Red List Categories and Criteria v3.1
CBD Convention on Biological Diversity Article 2.
A formal document outlining the planned activities for decommissioning a mine, rehabilitating disturbed areas, managing long-term water and environmental obligations, and delivering post-closure monitoring; required by most mining regulators and by ICMM's Mine Closure Good Practice Guide.
ICMM Mine Closure Good Practice Guide (2019), icmm.com; state/national mining legislation
A sequence of actions for managing biodiversity impacts: first avoid, then minimise, then rehabilitate/restore, and finally offset residual impacts; the foundational principle of IFC PS6, TNFD, IUCN and ICMM biodiversity guidelines.
Business and Biodiversity Offsets Programme (BBOP), forest-trends.org
A target in which the total biodiversity impacts of a project or company are offset by conservation actions so that net biodiversity outcomes are neutral or positive relative to the baseline; the minimum standard required by IFC PS6 for projects in critical habitats.
IFC Performance Standard 6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources), ifc.org
Cash, letter of credit, bank guarantee, insurance policy or surety bond posted with the regulator to guarantee funds for post-closure rehabilitation if the operator defaults. US SMCRA sets minimums for coal ($10K/acre floor); hard-rock varies by state ($5K-$50K/acre). Global mining sector total bonded assurance exceeds $80 billion.
Financial Assurance for Site Rehabilitation
UN PRI Mining Company Financial Assurance Guide.
Ring-fenced trust or escrow account holding cash or securities dedicated to closure and post-closure costs, insulated from the operator's bankruptcy. Australia's Mining Rehabilitation Fund (Western Australia) and Chile's Cierre de Faenas Mineras funds operate at national scale.
Chile Ley 20.551 Cierre de Faenas Mineras
ICMM Financial Provisioning for Mine Closure.
An initiative providing frameworks for companies to set verified targets for freshwater, land and ocean aligned with the science of nature recovery; developed by IUCN, WWF, Conservation International and others; aligned with the Kunming-Montreal Global Biodiversity Framework.
US Army Corps of Engineers permit under Clean Water Act §404 required to discharge dredged or fill material into 'waters of the United States' — including wetlands. Central regulatory choke-point for US mining projects (Pebble Mine, Rosemont Copper). USACE co-issues with EPA and state agencies.
Dredge-and-Fill Permit for Waters of the US
An international initiative that published voluntary disclosure recommendations (September 2023) for organisations to report on nature-related risks and opportunities using the LEAP (Locate, Evaluate, Assess, Prepare) approach; aligned with the Kunming-Montreal Global Biodiversity Framework Target 15.
Taskforce on Nature-related Financial Disclosures
TNFD Final Recommendations, tnfd.global, September 2023
Professional body for people working in the minerals sector across Australasia, founded 1893 and incorporated by Royal Charter. AusIMM administers the Chartered Professional (CP) designation across nine disciplines (geoscience, mining, metallurgy, environment, etc.), is one of the Recognised Professional Organisations under the JORC Code 2012, and runs the AusIMM Professional Certificate suite plus the annual Mineral Resource Estimation Conference.
The Australasian Institute of Mining and Metallurgy
AusIMM, 'Chartered Professional Program' —
JORC Code 2012, Clause 8 (Competent Person definition) —
Professional credential awarded by the CFA Institute (Charlottesville, VA, founded 1947 as the Financial Analysts Federation). Requires passing three sequential six-hour examinations covering ethics, quantitative methods, economics, financial reporting, corporate finance, equity, fixed income, derivatives, alternatives (including commodities and digital assets since the 2024 curriculum), portfolio management and wealth planning, plus 4,000 hours of qualified investment work and a Code of Ethics undertaking.
CFA Institute, 'CFA Program Curriculum' —
CFA Institute Code of Ethics and Standards of Professional Conduct (2024) —
A regulated professional designation conferred by a learned society or statutory body that attests to verified academic qualifications, supervised work experience, peer-reviewed competency assessment, ethical undertaking, and ongoing Continuing Professional Development. Chartered status is portable across jurisdictions through mutual-recognition agreements between bodies such as AusIMM, IOM3, CIM, SAIMM, SME and MMSA and underpins the Competent / Qualified Person definitions used in reporting codes (JORC, NI 43-101, SAMREC, PERC).
Chartered Professional (Mining, Metallurgy, Materials)
Engineering Council UK, 'Standard for Chartered Engineer (CEng)' —
CRIRSCO International Reporting Template (2019) —
Canadian learned society founded 1898 that maintains the CIM Definition Standards for Mineral Resources & Mineral Reserves — the technical underpinning of NI 43-101 disclosure for all Canadian-listed issuers. CIM administers Professional Membership grades, publishes the CIM Best Practice Guidelines for Mineral Resource Estimation, and is the Canadian Recognised Professional Organisation under JORC/CRIRSCO.
Canadian Institute of Mining, Metallurgy and Petroleum
CIM Definition Standards (10 May 2014) —
National Instrument 43-101, Section 1.2 —
Education, certification, and continuing-professional-development courses operated directly by a recognised exchange or self-regulatory organisation as an extension of its market-integrity mandate. Examples include LME Education (introductory and advanced base-metals courses), the LBMA Executive Programme (annual residential at Henley Business School), CME Group Education (futures fundamentals through proprietary OTC clearing), ICE Education (energy & commodities derivatives), SGX Learning, HKEX Training Courses, JPX Academy, DGCX, and SHFE's Future Talent programmes. Distinct from third-party training because curricula reference the exchange's own rulebooks and clearing operations.
Exchange-Operated Education / Training Programme
Short-format (typically 2 days to 6 weeks), high-fee, non-degree courses delivered by university business or engineering schools to mid-career professionals. Distinct from MOOCs in that the awarding institution is the host university itself, faculty are normally permanent academics, cohorts are capped, and certificates carry the university's name. Examples in tokenization and digital assets include MIT Sloan Executive Education 'Blockchain Technologies: Business Innovation and Application', Oxford Saïd 'Blockchain Strategy Programme', and Wharton's standalone certificate suite (subsequently migrated to Coursera).
Non-Degree Executive Education (University-Owned)
Professional certification administered by the Global Association of Risk Professionals (GARP, Jersey City, founded 1996). The FRM consists of two computer-based examinations (Part I — foundations, quantitative analysis, financial markets & products, valuation & risk models; Part II — market, credit, operational, liquidity, investment risk management and current issues) plus two years of qualified risk-management work experience. Holders are recognised by the Federal Reserve, ECB, IMF, BIS and most major commodity-trading houses.
UK-based professional engineering institution incorporated by Royal Charter (2002, succeeding the 1869 Iron and Steel Institute and the 1892 Institution of Mining and Metallurgy). IOM3 is licensed by the Engineering Council to award Chartered Engineer (CEng), Chartered Scientist (CSci) and Chartered Environmentalist (CEnv) titles in materials, minerals, mining and packaging, and is a Recognised Professional Organisation under the JORC Code and the PERC Reporting Standard.
Institute of Materials, Minerals and Mining (UK)
Annual two-week residential programme run by the London Bullion Market Association in partnership with Henley Business School (University of Reading). Curriculum covers gold and silver market structure, vaulting, refining, the London Good Delivery list, OTC clearing, central-bank operations, and Responsible Gold Guidance compliance. Open to mid-career professionals; cohorts are capped at approximately 30.
LBMA Executive Programme at Henley Business School
Membership organisation, typically incorporated by Royal Charter or statute, established to advance a profession or scientific discipline through peer-reviewed publication, ethical regulation, and credential conferral. In minerals reporting, only Recognised Professional Organisations (ROPOs / RPOs) listed by the JORC Code, NI 43-101, SAMREC, PERC, SME Guide or KAZRC may certify Competent Persons / Qualified Persons whose signatures bind public technical reports.
CRIRSCO International Reporting Template (2019), Section 6.1 —
Education arm of the London Metal Exchange offering classroom and online courses spanning 'Introduction to LME', 'LMEselect Trading Mechanics', 'Warehousing and Physical Delivery', and bespoke client academies. Curriculum maps directly to the LME Rulebook and is the de-facto onboarding standard for new base-metals traders, brokers, and warehouse operators worldwide.
London Metal Exchange — Education Programme
United States professional society founded 1908. The MMSA Qualified Professional (QP) designation is one of the Acceptable Foreign Associations under National Instrument 43-101 and a Recognised Professional Organisation under the JORC Code, allowing US-based Qualified Persons to sign technical reports for Canadian and Australian listings.
Mining and Metallurgical Society of America
MMSA, 'Qualified Professional Program' —
Online course designed for unlimited participation and open access via the web. The format was named in 2008 (Cormier & Alexander, University of Manitoba course CCK08) and scaled from 2012 via platforms such as Coursera, edX and FutureLearn. University-branded MOOCs (e.g. Wharton's 'Cryptocurrency and Blockchain — An Introduction to Digital Currencies' on Coursera) deliver the same lecturer and curriculum as on-campus electives but at a fraction of the cost (typically USD 49–79 per certificate) and without university-credit conferral unless explicitly stated.
Cormier, D., & Siemens, G. (2010) 'Through the Open Door: Open Courses as Research, Learning, and Engagement', EDUCAUSE Review —
Coursera, 'Wharton Cryptocurrency and Blockchain' —
Free, openly licensed (Creative Commons BY-NC-SA) archive of substantially all undergraduate and graduate course materials taught at the Massachusetts Institute of Technology, launched 2002. Course '15.S12 Blockchain and Money' (Fall 2018), taught by Prof. Gary Gensler (subsequently Chair of the U.S. Securities and Exchange Commission, 2021-2025), is the most cited free reference course for digital-asset regulation. OCW provides lecture video, slides, problem sets and reading lists but does not grant credit or certificates.
MIT OpenCourseWare — Free Lecture Archive
MIT OpenCourseWare, '15.S12 Blockchain and Money (Fall 2018)' —
Professional body founded 1894 representing minerals-sector professionals across Southern Africa. SAIMM administers the Fellow (FSAIMM) grade, co-authored the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC 2016), and is a Recognised Professional Organisation under the JORC Code 2012 and the SSC (South African SAMREC Code).
Southern African Institute of Mining and Metallurgy
United States professional society founded 1871 (originally as part of AIME) representing mining engineers, metallurgists and exploration geologists. SME publishes the SME Mining Engineering Handbook, maintains the Registered Member designation accepted as a Recognised Professional Organisation under the JORC Code, and co-authors the SME Guide for Reporting Exploration Information, Mineral Resources and Mineral Reserves (2017).
Society for Mining, Metallurgy & Exploration (USA)
Post-consumer aluminium scrap category consisting entirely of used aluminium beverage cans — a highly standardised, high-value feedstock because the 3xxx-series can body and 5xxx-series can lid alloys can be re-melted directly into new sheet in a closed loop. Global UBC recycling rate exceeds 70% in the EU, US and Brazil; each recycled can saves ~95% of primary-smelter energy. Traded as ISRI 'Talk' / 'Taldon' / 'Tale.' The most economically successful closed-loop metal-recycling stream worldwide.
International Aluminium Institute 'Global Aluminium Cycle' (international-aluminium.org)
Aluminum Association 'Aluminum Can Recycling' (aluminum.org)
Battery Recycling Routes (Pyro / Hydro / Direct)
Three competing process families for recovering critical metals from spent lithium-ion batteries. Pyrometallurgical (Umicore Val'Eas, Nickelhütte) — high-temperature smelting yielding a Ni-Co-Cu alloy and Li-bearing slag; robust to input mix but loses lithium and graphite. Hydrometallurgical (Redwood, Li-Cycle, Ecobat) — leach → SX → precipitation to individual battery-grade sulfates (NiSO₄, CoSO₄, MnSO₄, Li₂CO₃); higher yield of Li and cathode metals. Direct recycling (ReCell, ANL) — regenerates cathode active material without full breakdown; highest theoretical value but sensitive to input consistency.
Battery Recycling Routes — Pyrometallurgical, Hydrometallurgical, Direct Recycling
IEA 'Global EV Outlook 2024 — Recycling'
DOE Argonne ReCell Center (recellcenter.org)
European Battery Alliance 'Recycling Position Paper'
Fine, granular, dark powder produced by mechanically shredding and thermally deactivating end-of-life lithium-ion batteries. Contains ~30-50% cathode active materials (Ni, Co, Mn oxides), 10-25% graphite anode, plus copper, aluminium, and lithium salts. Intermediate feedstock traded internationally under the Basel Convention as hazardous waste (Y26/Y29 entries); increasingly restricted for export by EU Battery Regulation 2023/1542. Recovered downstream by hydrometallurgical (leach → SX → precipitation) or pyrometallurgical (Umicore Val'Eas process) routes.
Black Mass (Battery Recycling Feedstock)
EU Battery Regulation (EU) 2023/1542 (eur-lex.europa.eu)
Basel Convention Annex VIII/IX entries (basel.int)
Copper Scrap Grades (No.1 / No.2 / Birch / Cliff)
The four principal ISRI-defined copper-scrap categories. No.1 Copper (Barley/Berry/Candy) — clean unalloyed copper wire and heavy scrap, ≥99% Cu, minimum 1/16-inch thick. No.2 Copper (Birch/Cliff) — unalloyed copper with paint, solder, brazing or plating, ≥96% Cu. Copper alloys (yellow brass, red brass) are separate ISRI codes. Grade determines refiner deduction (0-15% payable-Cu reduction from CME/LME reference) and preferred smelter route (direct-melt vs converter feed).
Copper Scrap Grades (No.1 Copper / No.2 Copper / Birch / Cliff)
ISRI 'Scrap Specifications Circular' (isri.org)
International Copper Association 'The Copper Recycling Story' (copperalliance.org)
Discarded electrical and electronic equipment — computers, mobile phones, printed circuit boards (PCBs), household appliances, and industrial electronics — containing recoverable base metals (Cu, Al, Fe), precious metals (Au, Ag, Pd, Pt), rare earths, and hazardous substances (Pb, Cd, Hg, brominated flame retardants). PCB gold content typically 200-350 g/tonne (30-100× ore grade). Global generation reached 62 Mt in 2022 (UN ITU/UNITAR), with only 22.3% formally recycled. Regulated by the Basel Convention, EU WEEE Directive, and country e-waste laws.
UN Global E-waste Monitor 2024 (unitar.org)
Basel Convention 'Technical Guidelines on E-waste' (basel.int)
European Union directive establishing responsibilities of manufacturers and authorised treatment facilities for handling end-of-life passenger vehicles and light commercial vehicles. Requires 95% reuse-and-recovery rate (85% reuse-and-recycling) by weight per vehicle from 2015, bans certain heavy metals (Pb, Cd, Cr(VI), Hg) in components, mandates take-back at no cost to the last owner, and requires depollution and dismantling by authorised treatment facilities (ATFs). Successor Regulation currently under negotiation (2026-2027).
End-of-Life Vehicle (ELV) Directive (EU 2000/53/EC)
Directive 2000/53/EC (eur-lex.europa.eu)
European Commission 'End-of-Life Vehicles' review 2023
Environmental policy principle placing responsibility for the entire life cycle of a product — including take-back, recycling, and final disposal — on its producer, rather than on local authorities or the end consumer. Implemented through mandatory producer registers, financial contributions to Producer Responsibility Organisations (PROs), eco-design requirements, and product-specific recovery targets. Applied globally to packaging, batteries, WEEE, ELVs, textiles, tyres, and (from 2027 in the EU) construction products.
OECD 'Extended Producer Responsibility — Updated Guidance' 2016 (oecd.org)
European Commission EPR framework in Waste Framework Directive 2008/98/EC as amended
Global scrap-metal grading nomenclature published by the Institute of Scrap Recycling Industries (ISRI, Washington DC) in the 'Scrap Specifications Circular.' Assigns short codes (Barley, Berry, Birch, Cliff, Zorba, Twitch, Taldon, Shred, Bushling, Busheling, HMS 1&2, No.1 HMS) to distinct scrap forms and compositions. Standard reference for contracts, LMEshred index, and cross-border scrap trade under ICC Incoterms. Updated approximately annually.
LME 'LMEshred contract specification' (lme.com)
Share of total metal supply derived from post-consumer scrap and industrial recycling rather than from primary mined ore. Aluminium ~35% globally (60%+ in the EU); copper ~30-35%; lead >65% (dominated by battery recycling); steel ~30-40%; nickel ~35%; gold ~25-30%. Tin, tungsten, cobalt and platinum-group metals also show high secondary ratios. Rare earths remain <5% recycled. A leading circular-economy KPI in ESG reports and product carbon-footprint calculations (recycled aluminium is ~95% less energy-intensive than primary).
Secondary Metal Ratio (Recycled Content Ratio)
International Copper Study Group (ICSG) 'World Copper Factbook'
UNEP International Resource Panel 'Recycling Rates of Metals'
The practice of recovering metals and other materials from the anthropogenic stock accumulated in cities and industrial societies — buildings, infrastructure, vehicles, electronics, appliances, and landfills — rather than from geological ore deposits. Global anthropogenic copper stock (~600 Mt) is comparable in scale to known reserves; likewise for aluminium, iron, gold, and rare earths. Economics driven by concentration (10-1000× ore grades for many metals in PCBs and cars), regulatory push (EPR/circular economy), and primary-metal price cycles.
UNEP International Resource Panel 'Metal Recycling' report (resourcepanel.org)
Graedel et al. 'Recycling Rates of Metals' UNEP 2011
European Innovation Council 'Urban Mining' cluster
European Union Waste Electrical and Electronic Equipment Directive setting collection, treatment, recycling, and recovery targets for e-waste across all Member States. Requires producers to fund end-of-life management (Extended Producer Responsibility — EPR), establishes minimum collection rate (currently 65% of average EEE placed on market), and mandates ten categories of equipment. Complemented by the RoHS Directive (restriction of hazardous substances). Enforced via national implementing legislation and national producer registers.
Directive 2012/19/EU on WEEE (eur-lex.europa.eu)
European Commission DG Environment 'WEEE' (environment.ec.europa.eu)
The industry-standard trading nomenclature for scrap materials published by ISRI (Institute of Scrap Recycling Industries, now ReMA — Recycled Materials Association since 2024). Defines ~200 grades across ferrous, non-ferrous, paper, plastic, electronics, glass, tire, rubber. Named grades (Twitch, Zorba, Barley, Berry, Cliff, Talk, Zurik, Zebra, HMS 1/2, Shredded 211, Bushelling 207) are used verbatim in international scrap trade contracts. Republished annually.
ISRI Scrap Specifications Circular (SSC)
ReMA (formerly ISRI) Scrap Specifications Circular
ISRI-designated non-ferrous scrap grade: shredded aluminium fraction from auto shredder output (post-Zorba further separation via eddy current + heavy media). >90% aluminium content, low ferrous <2%. Used as furnace charge in secondary aluminium smelters producing A380/A356 die-cast alloys. Traded FOB North America Twitch, price benchmark Fastmarkets American Metal Market (AMM).
Twitch — Shredded Non-Ferrous Aluminium Scrap
ReMA Scrap Specifications Circular, Non-Ferrous Section
ISRI non-ferrous grade: 3-inch minus mixed metal fraction from automobile shredder residue after ferrous magnetic separation and eddy current separation. Composition: ~65-75% Al, ~5-10% Cu, ~5% Zn, ~5% Pb, ~3% stainless, ~3% Mg + brass + others. Named after Zorba the Greek (mixed everything). Traded by Cu-equivalent content or as-is; exported historically to China until 2018 National Sword ban, now Malaysia/Vietnam/India/domestic US processors.
Bureau of International Recycling Non-Ferrous Metals Division, bir.org
ISRI non-ferrous grade: the stainless-steel-rich fraction separated from Zorba using induction sensor sorting (Steinert/TOMRA/Redwave sensor-based sorting). ~30-70% stainless (304/430), remainder copper, brass, other non-ferrous. Feedstock for stainless smelters (Aperam, Outokumpu, POSCO Stainless). Higher value than Zorba due to Ni + Cr content, priced against LME Nickel + Ferrochrome.
Zurik — Stainless-Enriched Non-Ferrous Fraction
TOMRA Sorting Solutions technical documentation
ISRI non-ferrous grade for insulated copper wire and cable, chopped/granulated then air-separated to remove PVC/rubber insulation. Sub-grades: Talk 1 (bright, minimum 99% Cu recovery, ≥65% Cu content); Talk 2 (mixed lower recovery). Used as EAF/Isasmelt/Contimelt feedstock in secondary copper refineries. Aurubis, KGHM, Wieland process. ELV directive drives increased volumes.
ISRI non-ferrous grade for mixed non-ferrous machining turnings and borings: aluminium, copper, brass, bronze, minor zinc/lead. Lower value than clean grades due to sorting complexity + cutting-oil contamination. Requires deoiling/drying before smelting. Traded by average Cu-content assay.
Zebra — Mixed Aluminium/Copper/Brass Turnings
ISRI non-ferrous grade for automotive/HVAC copper radiators and heat exchangers, typically brass-tank + copper-fin construction. ~85-90% Cu + brass. Priced at discount to Berry due to brass content. Feedstock for copper secondary refineries and brass mills.
ISRI non-ferrous grade: bright, uncoated, unalloyed, uncontaminated copper wire, minimum 99% Cu, ≥1/16 inch diameter. Highest-value copper scrap grade — priced at very small discount to LME Copper Cash (typically 95-98%). Chopped from clean insulated wire (post-Talk processing) or from copper wire mill scrap. Direct feedstock for continuous cast copper rod plants without refining.
ISRI copper wire grades: Birch = No.1 clean unalloyed copper wire, minimum 96% Cu (with allowable tin coating), no soldered/insulated pieces. Cliff = No.2 clean copper wire, minimum 94% Cu, may include some solder/alloy/coating. Both are baled or loose. Priced at LME Cash minus discount depending on grade: Birch ~85-92% LME, Cliff ~75-85% LME.
Birch (No.1 Copper Wire) / Cliff (No.2 Copper Wire)
ISRI non-ferrous grade for insulated copper cable and electronic wire from WEEE (Waste Electrical and Electronic Equipment), including power supply cords, jumpers, harnesses. Multi-alloy insulation (PVC/polyethylene/nylon), various Cu content 25-65%. Processed through granulation + air table + eddy current. Feedstock for secondary Cu smelters; Aurubis, Boliden, Umicore key European processors.
Umicore Precious Metals Refining publications
ISRI ferrous scrap grades and global export benchmark: HMS 1 = No.201, ≥6 mm thick clean steel scrap, no cast iron, no galvanized. HMS 2 = No.202, ≥3 mm thick, may include galvanized/coated. HMS 1&2 (80:20) is the world Turkey CFR export benchmark — $300-500/t reference. Used as EAF feedstock, dominant flow: US/Europe → Turkey (largest importer 20+ Mt/year), Bangladesh, Pakistan, Vietnam, Egypt.
Fastmarkets Ferrous Scrap Price Assessments — Turkey CFR benchmark
ISRI grade No.207: prime new production scrap from steel mills, stampings, punchings, sheet cuttings, factory bundles — never rusted, low residuals (Cu <0.15%, Sn <0.02%). Highest-quality ferrous scrap, EAF melters premium feedstock. Priced $50-150/t premium over shredded/HMS 1. Prompt scrap flow from auto OEM stamping plants (Ford, GM, Toyota) direct to EAF steel mills (Nucor, SDI, CMC).
American Iron and Steel Institute AISI Prime Scrap Report
Low-pH (2-4) metal-laden water produced when sulphide minerals (pyrite, arsenopyrite) oxidise on exposure to air and water in waste rock, tailings or open pits. Perpetual treatment liability — often century-scale. USGS estimates 40% of US western headwaters are AMD-affected. Prevention (dry-stack tailings, water covers) is cheaper than treatment.
INAP Global Acid Rock Drainage Guide (GARD Guide)
Highly saline water (typically >5% dissolved solids) that carries commercially recoverable lithium, potassium, boron or magnesium. Salar brines (Chile, Argentina, Bolivia) are the low-cost source of ~40% of world lithium. Direct Lithium Extraction (DLE) technologies process brine in hours rather than the 18-24 months of solar evaporation ponds.
Statutory or riparian right to extract water from a specified aquifer. Ranges from prior-appropriation ('first in time, first in right' — western US) to correlative rights (California) to state-controlled licences (Australia, Chile). Water-scarce jurisdictions (Chile Water Code 1981) treat groundwater rights as tradable property.
California Sustainable Groundwater Management Act 2014
Pumping of groundwater and pit water from active mining excavations to keep workings dry and prevent flooding. Typical open-pit copper mine dewatering: 20-200 L/s; deep gold shafts (South Africa, Kazakhstan) can require 500-1500 L/s from 3+ km depth. Dewatered water may be treated and reused or discharged under NPDES/MPD permit.
Removal of Water from Underground Workings
Semi-permeable membrane process converting seawater or brackish water into freshwater by high-pressure pumping. Chilean copper mines (BHP Escondida, Antofagasta Los Pelambres) use desalination + pipelines to eliminate freshwater draw from Andean aquifers. Typical energy: 3-4 kWh/m³; capex $1200-2400/m³/day.
Chile Comisión Chilena del Cobre Water Report
Recycling of decant water from the tailings storage facility (TSF) back to the concentrator, typically 40-70% of process water. Reduces freshwater intake but concentrates dissolved metals and salts (secondary contamination risk). Global Industry Standard on Tailings Management (GISTM) requires quantitative water-recovery reporting.
Recovery of Water from Tailings Facility
Global Industry Standard on Tailings Management (GISTM 2020)
MAC Towards Sustainable Mining Water Framework.
Tailings dewatered to 55-80% solids by disc thickeners or vacuum filters before storage, versus conventional slurry (30-40% solids). Reduces water inventory, seepage risk and dam-failure consequence. GISTM 2020 promotes thickened, paste and filtered ('dry-stack') tailings as best practice for new facilities in seismic or wet climates.
MAC Guide to the Management of Tailings Facilities
ICMM Preventing Catastrophic Failure of Tailings Storage Facilities.
Systematic accounting of all water inputs (precipitation, groundwater, freshwater supply) and outputs (evaporation, discharge, tailings entrainment, product moisture) at a mining or smelting site. Required annually under IFC PS3 and ICMM Water Reporting Guide. Positive balance sites need active dewatering; negative balance sites depend on external supply and drought resilience.
ICMM A Practical Guide to Consistent Water Reporting
WRI Aqueduct 4.0 baseline water-stress index (0-5) combines demand, supply variability, drought risk and groundwater decline into a location-specific score. Widely used by ICMM members and IFRS S2 climate disclosures to identify assets in 'extremely high' water-stress basins. Copper industry: 24% of production in high/extremely-high stress basins.
Water treatment strategy that recovers 100% of process water and produces only solid residues — no liquid discharge to rivers or oceans. Achieved via multi-effect evaporation + crystallisation. Mandatory for lithium brine operations in Chile's Salar de Atacama and Chinese copper smelters under GB 25467-2010. Capex $20-80M for mid-scale plants.
Contractual right allowing a government or joint-venture partner to acquire an additional interest in a project after commercial discovery is established, typically by paying its share of historic costs plus a premium. Standard in Canadian northern territories and Alaska state leases.
Post-Discovery Government or Partner Interest
Canadian Mining Association Model JV Agreement
Government of Alaska Department of Natural Resources Mining Regulations
JCMSCo Practical Guide to JV Structures.
Notice from the JV operator to non-operating partners requesting their pro-rata share of budgeted expenditure, typically monthly. Non-payment triggers default provisions including dilution, forfeiture or forced sale. Governed by the Joint Operating Agreement.
AIPN Model Form Joint Operating Agreement
Contractual formula in a JV that reduces a partner's interest when it fails to contribute its pro-rata share of a cash call. Standard 'straight-line' dilution: new % = old % × (contributions/total). Punitive dilution formulas (e.g., 2× or 3× multiplier) discourage free-riding.
Rocky Mountain Mineral Law Foundation Model Forms.
Contractual right allowing a majority shareholder to force minority shareholders to join a sale to a third party. Ensures the majority can deliver 100% of shares to a buyer that requires full control (common in private-equity exits).
International Bar Association Model M&A Deal Points
Mechanism through which a party earns joint-venture interest by contributing exploration or development expenditure. Structured with staged milestones (initial 25% for $X; further 26% for feasibility study; further 24% for construction commitment).
SME Mining Engineering Handbook Chapter 2.6.
Agreement under which one party (farmee) earns a percentage interest in a mineral project by funding a defined work programme over a specified period. Common in exploration-stage joint ventures where a major mines' capital funds a junior's ground in exchange for 51-70% earn-in.
Rocky Mountain Mineral Law Foundation Mining Agreements.
Contractual or statutory right allowing existing shareholders to subscribe pro rata to new share issuances before external investors, protecting their percentage interest from dilution. Statutory in UK Companies Act 2006 §561 unless disapplied by special resolution.
International Bar Association Corporate Governance Committee.
Contractual right allowing an existing shareholder or JV partner to acquire an interest offered to a third party on the same terms. Standard in mining JV agreements to prevent hostile transfers to competitors. Enforceable in common-law and civil-law jurisdictions.
JV provision allowing one partner to fund a specific activity (e.g., drilling programme, feasibility study) at its sole cost and risk when other partners decline. If successful, the sole-risk party recovers investment plus a premium (typically 200-500%) before other partners can back in.
Contractual right allowing minority shareholders to join a sale of the majority stake to a third party on the same price and terms. Protects minorities from being left with an unknown or less-desirable co-owner after a control transfer.
China's primary physical gold market, established 2002 under PBoC oversight. Operates spot contracts (Au9999, Au9995, Au50g) and delivery-linked auctions. World's largest physical gold exchange by delivered volume. Distinct from SHFE which handles gold futures.
Twice-daily RMB/gram gold price fix launched by SGE on 19 April 2016. Set via centralized auction at 10:15 and 14:15 Beijing time. First non-USD major gold benchmark. Competes with LBMA Gold Price and provides basis for China-specific gold products and RMB-hedged instruments.
China's principal non-agricultural futures exchange (metals + energy + rubber). Trades copper, aluminium, zinc, lead, nickel, tin, gold, silver, steel rebar, hot-rolled coil, and fuel oil. Prices in RMB/tonne. Warehouse deliveries in Shanghai, Guangdong, Jiangsu, Zhejiang. Key benchmark for physical Chinese metal trade.
Trade exploiting price gap between SHFE (RMB/tonne inclusive of VAT + import duty) and LME (USD/tonne CIF). Import arbitrage window opens when Shanghai price minus LME price minus import cost exceeds zero. Key indicator of Chinese physical demand. Published as 'import arbitrage window' by market data vendors.
Cross-Market Copper/Aluminium Price Differential
Customs-supervised warehouses in Shanghai Waigaoqiao, Yangshan, Qianwan Bonded Zones where imported metal is stored without VAT/import-duty payment until entered into domestic market. Basis for 'Yangshan copper premium' — key indicator of Chinese physical demand vs LME price.
SGE's international gold trading platform launched September 2014 in Shanghai FTZ. RMB-denominated but open to foreign participants via bonded gold. Trades physical gold kilobars deliverable in Shanghai FTZ vaults. Anchor for internationalization of SGBP fix.
Australian technical reporting standard for public disclosure of exploration, resources, and reserves. Maintained by JORC Committee (AusIMM, AIG, MCA). Latest edition 2012 (2025 revision in consultation). Mandatory for ASX-listed miners. Basis for CRIRSCO Template. Signed off by Competent Person.
Canadian securities disclosure standard for mineral projects, adopted by CSA (Canadian Securities Administrators) in 2001. Mandatory for TSX/TSX-V-listed miners. Requires Technical Report signed by Qualified Person. Aligns with CIM Definition Standards. Most widely used mineral disclosure framework globally.
National Instrument 43-101 Standards of Disclosure for Mineral Projects
US SEC mineral disclosure regulation effective January 2021, replacing legacy Industry Guide 7. Aligns US standards with CRIRSCO/JORC/NI 43-101. Requires Qualified Person sign-off on Technical Report Summary. Applies to US-listed miners including foreign private issuers.
European technical reporting standard equivalent to JORC/NI 43-101. Adopted by European Federation of Geologists, EAGE, IOM3, IGI, GSSA. Recognized by ESMA and London Stock Exchange AIM market. Latest edition 2021.
Pan-European Reserves and Resources Reporting Committee Standard
South African technical reporting standard. Maintained by SAMREC Committee (SAIMM + GSSA). Mandatory for JSE-listed miners. Latest edition 2016. Complemented by SAMVAL Code for valuation. Basis for African mineral disclosure.
International template that harmonizes national reporting codes (JORC, NI 43-101, SK-1300, PERC, SAMREC, Chile, Mongolia, Russia, India, Kazakhstan, Turkey). CRIRSCO founded 1994. Latest template 2019. Recognized by ICMM, IFRS Sustainability Standards Board.
Committee for Mineral Reserves International Reporting Standards Template
Engineer or geoscientist authorized to prepare or supervise Technical Report under NI 43-101 or SK-1300. Requires ≥5 years relevant experience, membership in recognized professional organization, and specific expertise in mineralization/deposit type. Legally liable for accuracy.
Individual Authorized to Sign Technical Report (NI 43-101/SK-1300)
Individual authorized to sign JORC/PERC/SAMREC reports. Requires ≥5 years relevant experience and membership in recognized professional organization (AusIMM, AIG, SAIMM, EurGeol, IOM3). Personally responsible for public disclosure. Same function as QP under Canadian/US regimes.
Mineral Resource for which quantity and grade are estimated on limited geological evidence and sampling. Low confidence. Cannot be converted directly to Mineral Reserve. Additional drilling required to upgrade to Indicated or Measured. Cannot be included in economic evaluation for feasibility studies.
Mineral Resource where quantity, grade, and geological continuity are estimated with sufficient confidence to allow mine planning and economic evaluation. Convertible to Probable Reserve after Modifying Factors applied. Requires drilling density adequate for continuity confirmation.
Mineral Resource where quantity, grade, and geological continuity are estimated with high confidence, based on detailed sampling. Convertible to Proven Reserve after Modifying Factors applied. Highest reliability category. Requires closely-spaced drilling.
Economically mineable part of Indicated (and in some cases Measured) Mineral Resource after applying Modifying Factors (mining, metallurgical, economic, marketing, legal, environmental, social, governmental). Lower confidence than Proven. Includes diluting materials and losses.
Economically Mineable Portion of Indicated Resource
Economically mineable part of Measured Mineral Resource, with Modifying Factors applied. Highest confidence reserve category. Represents highest confidence in geology, grade, and economic viability. Basis for LOM plans and reserve life ratios.
Economically Mineable Portion of Measured Resource
Mining, metallurgical, economic, marketing, legal, environmental, social, and governmental considerations applied to convert Mineral Resources to Mineral Reserves. Must be reasonable and justified. Include cut-off grade, dilution, recovery, commodity price assumptions, opex, capex, permits, tax regime.
Lowest grade (e.g. g/t Au, % Cu) below which material is classified as waste, above which as ore. Determined by commodity price, mining cost, processing cost, recovery, royalties. Marginal cut-off (in-pit) vs internal cut-off. Fundamental to reserve calculation and LOM planning.
Minimum Ore Grade for Economic Extraction
Earliest-stage technical study, ±35-50% accuracy. May include Inferred Resources. Establishes conceptual mining and processing scenarios. Non-bankable. Under NI 43-101, may not be used to declare Reserves. Typically <2% of feasibility-level engineering.
Intermediate technical study, ±25% accuracy. Must use Measured/Indicated Resources for Reserve conversion. First stage at which Mineral Reserves may be declared under NI 43-101 and SK-1300. Includes trade-off studies (open-pit vs underground, process routes). Basis for major capex decision preparation.
Final technical study, ±10-15% accuracy. Basis for financing (bankable). Detailed engineering (~30% design). Firm capex/opex, defined LOM plan, EIA approved, permits substantially secured. Required for project debt financing. Terminology varies: FS (generic), DFS (definitive, JORC), BFS (bankable, common in Africa/Asia).
Feasibility Study / Definitive / Bankable
Volume or tonnage of waste rock that must be removed to extract one unit of ore in open-pit mining. Expressed as t waste : t ore or bcm waste : t ore. Key economic driver — high strip ratio (e.g. >10:1) reduces margins. Life-of-mine average vs annual (may vary phase-by-phase).
Waste rock or low-grade material inadvertently mined with ore, lowering delivered grade. Planned dilution (design, e.g. drill-blast overbreak) vs unplanned dilution (operational). Expressed as % of run-of-mine (ROM). Critical for grade reconciliation and reserve accuracy.
Waste Material Included with Ore During Mining
Percentage of Mineral Reserve actually mined and delivered to processing plant. Losses occur due to pillars, geometric constraints, dilution below cut-off, or safety exclusions. Distinct from metallurgical recovery (plant process yield). Both multiplied to get overall project recovery.
Percentage of In-Situ Resource Extracted
Systematic comparison of Model (block model estimate) vs Grade Control (short-term production model) vs Mill (actual metal in concentrate). Assesses model accuracy. Persistent negative reconciliation flags resource estimation error, requiring model update. Reported quarterly by many majors.
Comparison of Modeled Resource vs Actual Mine Output
Comprehensive yearly financial and operational report required by securities regulators. US-listed miners file 10-K (domestic) or 20-F (foreign private issuer) with SEC; UK/AU/CA/HK file jurisdictional equivalents. Includes MD&A, audited financials, risk factors, executive compensation, reserves & resources tables. Rio Tinto, BHP, Anglo American, Glencore, Freeport all publish.
Annual Report to Shareholders / 10-K / 20-F
US SEC / UK FCA / ASX / TSX / HKEX listing rules
Combined financial + non-financial (ESG, governance, strategy) report following IIRC Framework (now part of ISSB/IFRS). Structured around Six Capitals (financial, manufactured, intellectual, human, social & relationship, natural). Adopted by Anglo American (pioneer), Vale, Newmont, Gold Fields. Voluntary but growing under ISSB S1.
IIRC / IFRS Integrated Reporting Framework
Annual ESG disclosure following GRI Sustainability Reporting Standards. Universal Standards (GRI 1-3) + Topic Standards + Sector Standards (GRI 14 Mining published 2024). Covers emissions, water, biodiversity, community, safety, human rights. De facto industry standard — used by all ICMM members. Reports typically ~150-300 pages.
Global Reporting Initiative Standards Sustainability Report
Climate risk and opportunity disclosure across four pillars: Governance, Strategy, Risk Management, Metrics & Targets. Established 2015 by FSB, absorbed into ISSB in 2023. Mandatory in UK (2022), NZ (2023), Japan (Prime Market listings), Singapore (SGX listings). Scope 1/2/3 emissions and 1.5°C/2°C scenario analysis required.
Task Force on Climate-related Financial Disclosures Report
Baseline global sustainability reporting standards issued by ISSB (International Sustainability Standards Board) in June 2023, effective January 2024 for early adopters. S1 = general sustainability-related financial information. S2 = climate-related disclosures (absorbs TCFD). Being adopted by 20+ jurisdictions including UK, Canada, Australia, HK, Singapore, Brazil, Japan.
IFRS Sustainability Disclosure Standards S1 (General) & S2 (Climate)
Public disclosure requirement under ICMM Global Industry Standard on Tailings Management (August 2020, post-Brumadinho). Mandates disclosure of all tailings storage facilities including consequence classification, dam safety review status, and Independent Tailings Review Board findings. Full compliance deadline August 2025 for existing 'extreme/very high' consequence facilities.
Global Industry Standard on Tailings Management Disclosure
Annual disclosure required for companies with turnover >£36m (UK, Section 54, 2015) or >AUD100m (Australia, 2018). Must describe supply chain due diligence, training, risk assessment, and remediation of forced labour, human trafficking, and child labour. Mining supply chains flagged high-risk — cobalt DRC, gold ASM, tin/tungsten/tantalum 3TG.
UK Modern Slavery Act / Australia Modern Slavery Act Statement
UK Home Office / Australian Border Force —
Public disclosure of all payments (taxes, royalties, fees, production entitlements, bonuses, dividends, infrastructure improvements) ≥€100K per project made by extractive companies to host governments. EU Accounting Directive 2013/34/EU + Transparency Directive 2013/50/EU + UK Reports on Payments to Governments Regulations 2014 + Canada ESTMA (Extractive Sector Transparency Measures Act, 2015).
EU Directive 2013/50/EU + Canada ESTMA + UK Chapter 10
Annual report published by EITI-implementing country reconciling company payments vs government receipts from oil, gas, and mining. Requires disclosure of licenses, contracts, beneficial ownership, production, revenue distribution. 57 implementing countries as of 2025 including Indonesia, DRC, Kazakhstan, Peru, Colombia. EITI Standard 2019 latest version.
Extractive Industries Transparency Initiative Country Report
Annual restatement of Mineral Resources and Ore Reserves per JORC/NI 43-101/SK-1300/PERC/SAMREC. Signed by CP/QP. Published as chapter in Annual Report or standalone document. Reconciled with prior year (depletion, additions, revisions, transfers). Basis for reserve life ratio (R/P) and market valuation.
Annual Mineral Reserves and Resources Update
Quarterly disclosure of production tonnes, grades, recoveries, sales volumes, capex spend, guidance updates. Required by ASX (quarterly activities report), TSX-V (MD&A quarterly), voluntary but standard for LSE/NYSE-listed miners. Rio Tinto, BHP, Anglo publish. Basis for sell-side production models and analyst consensus.
Quarterly Operational and Production Update
ASX Listing Rule 5.1-5.5 / CSA NI 51-102
US SEC rule requiring disclosure of payments ≥$100K per project made by SEC-registered extractive issuers to US federal or foreign governments. Effective 2021 (delayed from 2012 original). Filed as Form SD annually within 270 days after fiscal year-end. Covers same payment categories as EU Directive 2013/50/EU (taxes, royalties, fees, bonuses).
US SEC Resource Extraction Payments Rule
Sector-specific ESG accounting standard (SASB code EM-MM, absorbed into ISSB 2022). Defines financially-material sustainability metrics: GHG emissions, energy management, water, waste, biodiversity, community, human rights, tailings safety, business ethics. Used by BlackRock, State Street, Vanguard for investment screening.
Sustainability Accounting Standards Board Metals & Mining Reporting
Annual voluntary water risk and management disclosure via CDP Water Security questionnaire. Covers water withdrawal, consumption, discharge quality, water-stressed basin operations, risk assessment, targets. ~4,000 companies disclose globally; A-list published annually. Growing investor pressure — 500+ investors with $130T AUM request via CDP.
Carbon Disclosure Project Water Security Questionnaire
Heavy post-transition metal (atomic number 83) produced almost entirely as a byproduct of lead smelting and refining (electrolytic slime, Betterton-Kroll process). Used in low-toxicity solders (replacing Pb per EU RoHS), pharmaceuticals (Pepto-Bismol, gastroprotectants), and low-melting-point alloys (Wood metal, fusible fire-safety plugs). China dominates production (~80%). USGS Mineral Commodity Summaries lists global mine production ~19,000 t/year; prices historically $4-8/lb.
USGS Mineral Commodity Summaries, Bismuth chapter
Metalloid produced primarily from stibnite (Sb2S3) ore and as a byproduct of lead and copper smelting. ~55% goes into antimony trioxide (Sb2O3) for flame retardants in plastics, textiles, electronics; other uses include lead-acid battery grids (hardening alloy) and Type Ⅰ semiconductors. Listed as critical mineral by US, EU, UK, and JP. China ~55% + Tajikistan ~20% + Russia ~15% of ~110,000 t/year global mine production. Sb2O3 prices spiked >5× during 2024 China export controls.
USGS Mineral Commodity Summaries, Antimony
Chalcogen recovered almost exclusively as a byproduct of electrolytic copper refining (anode slime, ~0.5-1 kg Se per tonne Cu refined). Uses: CIGS (copper-indium-gallium-selenide) thin-film solar cells, glass decolorizing, animal feed supplements (mandatory in EU/US), photocopier drums. Global refined output ~2,700 t/year; Japan, Germany, Belgium, Russia lead. Prices $10-40/kg cyclical with electronics demand.
USGS Mineral Commodity Summaries, Selenium and Tellurium
Rare metalloid (crustal abundance similar to platinum) obtained from copper anode slime. Dominant use: cadmium telluride (CdTe) thin-film solar panels (First Solar produces majority of CdTe modules globally). Also thermoelectric bismuth-telluride (Bi2Te3) modules, free-machining steel additives, rubber vulcanisation. Global refined production only ~640 t/year; China ~50%, Japan/Russia/Sweden minor. Prices $60-150/kg volatile with First Solar buying.
Semi-metal recovered from zinc smelter residues and coal fly-ash. Uses: fiber-optic cable cores (GeO2 dopant, ~30%), infrared optics (ZnGe windows for thermal imaging, night vision, missile seekers), PET plastic polymerization catalyst, high-efficiency multi-junction solar cells for satellites. China ~68% + Russia ~5% + US ~5% of ~140 t/year global. Listed as critical mineral; China imposed export licenses in August 2023.
USGS Mineral Commodity Summaries, Germanium
Soft silvery post-transition metal (melts at 30°C) recovered as byproduct of bauxite→alumina refining (Bayer process liquor) and zinc processing. Uses: gallium arsenide (GaAs) for RF ICs in smartphones, gallium nitride (GaN) power semiconductors for fast chargers and EV inverters, LEDs, laser diodes, solar cells. China ~98% of ~500 t/year primary production; China imposed export licenses August 2023 → prices tripled. Listed as critical mineral by US/EU/JP.
USGS Mineral Commodity Summaries, Gallium
Soft silvery post-transition metal recovered exclusively as a byproduct of zinc refining (from sphalerite ore residues). ~70% consumed as indium tin oxide (ITO) transparent conductive coating for LCD/OLED displays and touchscreens; other uses: low-melting solders (In-Sn-Bi), CIGS solar cells, nuclear control rods (In-Ag-Cd alloy). Global refined production ~900 t/year; China ~55%, South Korea ~20%, Japan ~10%. Prices $200-800/kg.
USGS Mineral Commodity Summaries, Indium
Rarest naturally occurring metal (crustal abundance ~0.4 ppb), recovered as byproduct of molybdenum roasting (from porphyry copper deposits, Chile ~55% + US ~15% + Poland/Kazakhstan). ~80% consumed in single-crystal nickel-based superalloys for jet engine turbine blades (Pratt & Whitney, Rolls-Royce, GE Aerospace); also platinum-rhenium reforming catalysts for high-octane gasoline. Global refined output only ~55 t/year. Prices $1,000-2,500/kg.
USGS Mineral Commodity Summaries, Rhenium
Toxic heavy post-transition metal (Group 12), produced as byproduct of zinc refining (~3 kg Cd per tonne Zn). Historic uses in NiCd batteries, pigments, and PVC stabilizers phased out under EU RoHS/REACH. Current uses: CdTe thin-film solar panels (First Solar), cadmium-plating for aerospace fasteners, minor alloys. Global refined ~24,000 t/year; China ~35%, Korea/Japan/Russia significant. Highly regulated (Basel Convention, WHO carcinogen).
USGS Mineral Commodity Summaries, Cadmium
Economic principle governing minor metals (Ga, Ge, In, Te, Se, Re, Cd, Bi): supply is derived from a primary host metal (Zn, Cu, Pb, Mo, bauxite) and does not respond price-elastically. Even a 10× price spike may not double supply because the host metal miner produces on Zn/Cu economics. Result: minor-metal prices are volatile, and downstream users face high concentration risk — captured in the "Byproduct Ratio" (fraction of supply that is byproduct). Ga (100% byproduct), Te (95%), Re (>90%), In (>95%). Contrast: Au, Ag, Ni are primary + byproduct hybrids.
Byproduct Metal Recovery Curve — supply economics
USGS Fact Sheet 2011-3153 "Byproduct Metals and Rare-Earth Elements Used in the Production of Light-Emitting Diodes"
Nassar et al. (2015) Environmental Science & Technology 49(6)
Tall counter-current shaft furnace (25-35 m, 4-5000 m³ working volume) that reduces iron ore (sinter + pellets + lump) using metallurgical coke and hot blast (1100-1300°C oxygen-enriched air) to produce liquid pig iron at ~1500°C. Charged from top, tapped from bottom every 2-4 hours. Modern BFs produce 8-15,000 t/day hot metal. Emits ~1.6-1.8 t CO2 per t hot metal. Dominant global route (~72% of crude steel via BF-BOF).
World Steel Association Yearbook 2024, worldsteel.org
Pear-shaped tilting vessel (150-350 t heat) that converts liquid pig iron from BF into steel by blowing pure oxygen (99.5%) through a water-cooled lance at Mach 2 for 15-20 minutes. Oxygen oxidizes C (4.5% → 0.05%), Si, Mn, P, S — exothermic reaction raises temperature from 1350°C to 1650°C, allowing ~15-25% scrap addition. Process invented VOEST Linz + Donawitz 1948-52. Now ~72% of global crude steel.
Basic Oxygen Furnace (BOF) / Linz-Donawitz Converter
World Steel Association "How Steel is Made"
VOEST-Alpine Stahl AG technical archives
Traditional integrated hot-metal route: coke plant + sinter plant + pellet plant + blast furnace + BOF converter + continuous caster + rolling mills, all on one site (typically 5-15 Mt/year). Feed: iron ore + coking coal + limestone. Emissions ~2.0-2.3 t CO2/t crude steel — 90% from coke reduction. Examples: POSCO Pohang/Gwangyang, ArcelorMittal Dunkerque, JFE Fukuyama, Baosteel Baoshan. Contrast with DRI-EAF route.
World Steel Association Sustainability Report 2023
IEA Iron and Steel Technology Roadmap 2020
Solid iron product (~92-95% Fe metallization) produced by reducing lump/pellet iron ore below its melting point (~950°C) using natural gas (Midrex, HYL/Energiron) or coal (rotary kiln, tunnel kiln). Porous "sponge" appearance. Feed for EAF steelmaking, alternative to scrap. Global output ~136 Mt in 2023 (India 43 Mt, Iran 32 Mt, Russia 8 Mt); gas-based ~72%. Reoxidises easily → shipped as HBI or under inert atmosphere.
Midrex World Direct Reduction Statistics 2023
DRI compacted at ~700°C into dense (>5.0 g/cm³) pillow-shaped briquettes (30×50×100 mm), each ~500 g. Compaction removes porosity, making HBI seaworthy and safe to store (does not reoxidise or self-heat like sponge). Traded as merchant scrap alternative for EAF mills. Major producers: Voestalpine Corpus Christi, Cleveland-Cliffs Toledo (formerly), Metalloinvest Lebedinsky (Russia). ISO 9001 + specific ISO for HBI moisture/degradation.
International Iron Metallics Association (IIMA), metallics.org
Refractory-lined vessel (60-300 t heat) that melts steel scrap and/or DRI/HBI using three graphite electrodes carrying 60-150 MW electric arcs (up to 1400 A/mm²). Heat time ~50-70 minutes. Emissions ~0.4-0.7 t CO2/t steel (grid-dependent). Flexible on feedstock, lower capex than BF-BOF. Currently ~28% of global crude steel; growing to displace BF-BOF for decarbonization. Nucor, Steel Dynamics, CMC, Gerdau, ArcelorMittal Long Products all EAF-based.
World Steel Association "The Future of Steel" 2023, worldsteel.org
Alternative integrated route: natural gas + iron ore pellets → DRI/HBI shaft furnace (Midrex or Energiron) → EAF melting → continuous casting. Emissions ~1.0-1.4 t CO2/t steel with natural gas; ~0.3 t with green hydrogen (HYBRIT, H2GS). Enables true decarbonization if H2 renewable. Examples: Voestalpine Corpus Christi (gas), HYBRIT SSAB pilot Luleå (H2), H2 Green Steel Boden 5 Mt (H2, start 2026). Cost ~$50-150/t premium over BF-BOF.
Continuous belt (Dwight-Lloyd machine, 200-600 m² grate area) that agglomerates iron ore fines (<6.3 mm) with coke breeze, limestone, and return fines into porous 5-40 mm sinter cake for blast furnace feed. Ignition hood at start (~1200°C) → downward draft combusts coke breeze, sinters particles. Output ~40,000-60,000 t/day. Major SO2, NOx, dust source — subject to EU IED BREF limits. ~60-70% of BF ferrous burden globally.
European IPPC Bureau BREF for Iron and Steel Production 2013, eippcb.jrc.ec.europa.eu
American Iron and Steel Institute (AISI) technical library
Uniform 9-16 mm spheres produced by rolling concentrated iron ore fines with binder (bentonite ~0.5%) into "green balls" and firing at 1250-1350°C to sinter. Fe content typically 65-67% (blast furnace grade) or 66-68% (direct-reduction grade for DRI). Major producers: Vale (Brazil, 80 Mt/year), IOC/Rio Tinto (Canada), LKAB (Sweden), Ferrexpo (Ukraine), Cleveland-Cliffs (US Great Lakes). DR-grade commands $10-25/t premium over BF-grade.
Iron Ore Pellets — grate-kiln / straight-grate
Platts IODEX and Fastmarkets MB Iron Ore Index
Fines (<6.3 mm): direct feed to sinter plant only; ~72% of seaborne trade; Platts IODEX 62%Fe CFR China benchmark ($100-140/t typical). Lumps (6.3-40 mm): direct BF charge without sintering; ~10% of trade; lump premium $10-25/dmt. Pellets: value-added agglomerate for BF (fluxed) or DRI (acid); ~15% of trade; pellet premium $15-50/dmt above 65%Fe fines. Major grades: Pilbara Blend Fines (PB Fines), Newman lump, Carajás IOCJ 65%, Kumba SAF.
S&P Global Platts Iron Ore Assessments Guide
High-carbon iron (~4.5% C + 0.5-1.5% Si + 0.1-1% Mn + P/S trace) tapped from blast furnace, cast into pigs (~35-50 kg) or shipped molten. Types: Basic Pig Iron (BPI) low-P for BOF/EAF; Foundry Pig Iron high-Si for grey cast iron castings; Nodular Pig Iron low-P/S for ductile iron (SGI); Nickel Pig Iron (NPI) ~4-15% Ni for Chinese stainless production. Merchant trade ~10 Mt/year; Ukraine (pre-war), Russia, Brazil, India major exporters. Fastmarkets MB pig iron CFR US Gulf benchmark.
Fastmarkets Metal Bulletin pig iron price assessments, fastmarkets.com
ISRI-classified secondary steel: HMS 1 (Heavy Melting Steel No.1, >6mm thick, no cast iron) — benchmark grade ($350-450/t CFR Turkey). HMS 2 (>3mm, some galvanized). Shredded (No.211): auto-shredder output, dense, homogeneous, EAF premium grade. Bushelling (No.207): new production scrap (stampings, punchings), highest quality, low residuals — $50-100/t premium. Turnings/Borings (No.220): machining swarf, low value. Prompt vs obsolete distinction.
Steel Scrap Grades — HMS, Bushelling, Shredded
ISRI (Institute of Scrap Recycling Industries) Scrap Specifications Circular
Long products: rebar (deformed concrete reinforcement bar, ~250 Mt/year global, Turkish rebar CFR benchmark), wire rod (coiled 5.5-25 mm, for nails/mesh/tire cord), sections (H-beams, angles, channels), rail. Flat products: HRC (hot-rolled coil, 1.5-25 mm, plates, structural), CRC (cold-rolled coil, 0.3-3 mm, appliances), HDG (hot-dipped galvanized, autobody), electrical steel (Fe-Si, transformers). Long ~50%, flat ~45%, tubes ~5% of global steel demand.
Steel Long vs Flat Products — rebar, wire rod, HRC, CRC
World Steel Association Steel Statistical Yearbook
Steel produced with ≤0.4 t CO2/t crude steel using hydrogen direct reduction (H2-DRI) + renewable-powered EAF, versus BF-BOF baseline ~2.1 t CO2/t. Commercial pilots: HYBRIT (SSAB + LKAB + Vattenfall, first H2-DRI steel delivered to Volvo 2021), H2 Green Steel Boden (5 Mt by 2030), Salzgitter SALCOS, ArcelorMittal Hamburg. Green premium $100-300/t currently; ResponsibleSteel + First Movers Coalition + SteelZero drive demand. Adjacent standards: IEA Near-Zero-Emissions Steel definition.
Bituminous coal with specific properties (low ash <10%, low S <1%, high fluidity, appropriate rank Rmax 1.0-1.5%) that becomes strong porous coke when heated to 1100°C for 18-24 hours in coke oven battery (absent air). Hard Coking Coal (HCC) premium grade, benchmark Platts PLV FOB Australia ($200-400/t). Semi-Soft Coking Coal (SSCC) blend component. Coke consumption ~450-500 kg/t hot metal in modern BF. Major exporters: Australia (>60% seaborne), USA, Canada, Russia, Mongolia. Distinguished from thermal coal (steam coal) used in power.
S&P Global Platts Coking Coal Assessments
Australian Government DISER Resources and Energy Quarterly
Sedimentary/lateritic rock (60-70% Al2O3·xH2O as gibbsite/boehmite/diaspore, plus Fe2O3, SiO2, TiO2) — sole commercial source of aluminium. Formed by tropical weathering of Al-silicate rocks. Major deposits: Guinea Boké (Compagnie des Bauxites de Guinée CBG), Australia Weipa/Gove/Huntly (Rio Tinto, South32), Brazil Trombetas/MRN (Vale/S32/Norsk/Alcoa), Jamaica, India, China. Global mine output ~400 Mt/year. Bauxite ratio: ~4-5 t bauxite → 2 t alumina → 1 t Al. Traded FOB spot or long-term contract; benchmark CBG Guinea 45% Al2O3.
USGS Mineral Commodity Summaries, Bauxite and Alumina
Hydrometallurgical process (patented Karl Bayer 1888, Vienna) that dissolves bauxite in hot caustic soda (NaOH) at 140-240°C, 30-60 bar in autoclave, then precipitates purified alumina trihydrate Al(OH)3, which is calcined at 1100°C to metallurgical-grade alumina (Al2O3, "smelter-grade alumina" SGA, ≥98.5%). Yields ~2 t bauxite → 1 t alumina. Byproduct: red mud (bauxite residue), 0.5-2 t/t alumina, alkaline pH 11-13, TSF-managed. Major refineries: Alcoa Pinjarra + Wagerup + Kwinana (WA), Rio Tinto Yarwun, Hydro Alunorte (Brazil).
Alcoa "How Aluminum is Produced" alcoa.com
White crystalline powder produced from bauxite via Bayer process. Two commercial grades: Smelter-Grade Alumina (SGA, ~90% of trade, feedstock for aluminium smelting) and Specialty/Non-Metallurgical Alumina (NMA, ~10%, for refractories, ceramics, abrasives, catalysts, chemicals). Global SGA production ~140 Mt/year. Priced FOB Western Australia (Platts Alumina Price Index, API) and CFR China (SHFE-linked); typical $300-500/t. Alumina/aluminium price ratio ("API/LME ratio") tracked ~15-20%.
S&P Global Platts Alumina Price Index (API)
International Aluminium Institute (IAI) statistics, world-aluminium.org
Sole commercial method for producing primary aluminium: alumina (Al2O3) dissolved in molten cryolite (Na3AlF6) bath at 950-970°C, electrolyzed with prebaked or Söderberg carbon anodes at 4.0-4.5 V and 300-600 kA per cell. Reactions: 2 Al2O3 + 3 C → 4 Al + 3 CO2. Energy intensity ~13-14 kWh/kg Al (theoretical minimum 6.3 kWh/kg). Discovered independently by Charles Hall (Pittsburgh) and Paul Héroult (Paris) in 1886. A single "pot line" has 200-400 cells producing 200-800 kt/year.
International Aluminium Institute "Primary Aluminium Production"
Industrial facility housing hundreds of Hall-Héroult reduction cells (potlines), typically 300-800 kt/year capacity. Colocated with electricity supply (hydro, gas, coal, nuclear) because 13-14 MWh required per tonne of Al. Major smelters: Alcoa Portland (Australia), Emirates Global Aluminium Jebel Ali/Al Taweelah (UAE, 2.7 Mt/year world largest), Rusal Krasnoyarsk + Bratsk (Russia hydro), Rio Tinto Kitimat/Alma (Canada hydro), Alba Bahrain. Curtailment risk when power costs spike (Europe 2022 lost ~1 Mt).
International Aluminium Institute "Primary Aluminium Smelting Energy Intensity" world-aluminium.org
Refined petroleum coke calcined at 1200-1400°C in rotary kiln to remove volatiles and moisture, then mixed with coal-tar pitch binder (~15%) and baked at 1100°C to form prebaked carbon anodes for Hall-Héroult smelters. Specifications: sulfur <2.5%, vanadium <300 ppm, nickel <200 ppm. Consumption ~0.4 t CPC per t Al. Major producers: Rain Carbon (India, US), Aminco, PCIC. Prices $400-800/t CPC. Constrained by declining low-S crude slate → potential critical input.
Calcined Petroleum Coke (CPC) — Anode Grade
Rain Industries Ltd annual reports, raincarbon.com
Newly produced aluminium from bauxite/Bayer/Hall-Héroult route, cast into ingots (~22.5 kg), sows (~700 kg), T-bars, billets, or slabs at the smelter. LME Aluminium Contract references P1020: minimum 99.7% Al, ≤0.10% Si, ≤0.20% Fe, other impurities capped. Distinguished from Secondary/Remelt Aluminium (recycled scrap). Global primary production ~70 Mt/year; China ~60%, India ~5%, Russia ~5%, Canada ~4%, UAE ~4%.
International Aluminium Institute production statistics
Aluminium produced from recycled scrap (UBC beverage cans, extrusion scrap, auto shred Zorba/Twitch) via re-melting in reverberatory or induction furnaces. Energy intensity ~5% of primary (0.6 vs 13 MWh/t). Global secondary output ~35 Mt/year, growing to ~50% of total by 2050 per IAI. Priced at discount to primary depending on grade and impurity profile (Fe, Si, Cu, Zn). US: Novelis, Real Alloy; Europe: Speira, Constellium; Japan: UACJ. Key input for auto castings (A356, A380 alloys).
International Aluminium Institute "Aluminium Recycling"
Bureau of International Recycling (BIR) Non-Ferrous Metals Division
Cast aluminium products from smelter for downstream processing. Billets: cylindrical (5-12 inch dia, 6-8 m long), extrusion feedstock (6xxx, 7xxx series); billet premium over LME typically $250-500/t. Slabs: rectangular (200-700 mm thick, 1-2 m wide, 5-10 m long), rolled to sheet/plate; slab premium $200-400/t. T-bars/Sows: remelt-grade ingots for secondary use. Foundry alloys: A356, A380 for die-casting. Premiums quoted on top of LME Cash Aluminium as "P1020 delivery duty-paid (DDP) premium".
Aluminium Semi-Finished Products — Billet, Slab, T-Bar
Process where heated aluminium billet (typically 6061, 6063, 6082 alloy series with Mg-Si) is pressed through steel die at 450-500°C under 5000-15000 t ram force to produce constant cross-section profiles (window frames, curtain walls, heat sinks, automotive structural). Global extrusion ~30 Mt/year, China ~50%. Downstream users tracked via Aluminium Association series designations. Recycled scrap ("extrusion press scrap") is highest-value secondary stream.
Aluminum Association "Aluminum Alloys 101"
Sheet, plate, and foil produced by cold- and hot-rolling aluminium slabs. Applications: Beverage cans (5182 body / 5052 end / 3104 stock ~20% of demand), automotive body sheet (6111, 5754, aluminium-intensive vehicles like F-150), aerospace plate (2024, 7075), foil (1235 for pharma/food packaging <25 μm). Global FRP ~30 Mt/year. Major rollers: Novelis (world largest, Hindalco-owned), Constellium, Speira, UACJ, Kaiser, Arconic.
Aluminium Rolling — Flat Rolled Products (FRP)
Aluminum Association "Flat Rolled Products" aluminum.org
Novelis Inc. annual reports, novelis.com
Deliberate temporary shutdown of primary Al smelter capacity due to unprofitable power costs (electricity ~35% of cash cost). Restart typically 6-12 months due to pot lining freeze. Historic waves: China Yunnan/Sichuan dry-season 2021-22 (2-3 Mt curtailed hydropower), Europe 2022 gas crisis (~1.4 Mt lost, Slovalco/Alro/Aldel closed permanently), 2015 China SGRA over-production response. Restarts announced when LME Al >$2500-2800/t with reasonable power. Tracked by CRU, Wood Mackenzie curtailment trackers.
Aluminium Smelter Curtailment — power-driven cutbacks
CRU Aluminium Market Outlook, crugroup.com
International Aluminium Institute quarterly production statistics