Technology start-up Resource Governance International (RGI) has struck a deal with South African mining software company Specsoft to obtain the rights and intellectual property to its RCubed product.

Initially created for AngloGold Ashanti to address Sarbanes Oxley compliance on the New York Stock Exchange, RCubed is now assisting more than 170 sites across 20 countries in their public reporting of mineral assets.

RGI Managing Director Nic Pollock said RCubed was a web-based application that provided transparency for investors on a miner’s inventory, as well as ensuring proper compliance with regulations.

“For publicly-listed mining companies they have to report their mineral assets at least annually and because of the nature of mineral assets being hidden underground, there’s quite a lot of regulation and codes around how you report that to protect the investor,” he said.

“Many people spend a fair bit of time actually evaluating and quantifying the resource but the way that information travels through the organisation is not always properly governed and/or transparent as to how that piece of information moves from the site to the public report in order to ensure its credibility.”

Mr Pollock said there were more compliance issues to deal with the more a company grew and gained more deposits, was listed on more stock exchanges and operated in a number of different regions.

RCubed automatically takes users through the regulations for the country, or countries, in which a company has assets.

“What the system does is manage that process very well and provide the full audit trail and defensible system to prove where the numbers came from,” Mr Pollock said.

“It dramatically improves productivity in and around that process as a whole because it involves a lot of expensive people who are qualified to sign off on these reports, so the system drastically reduces the time and effort spent running around after numbers.”

Mr Pollock said one client found the process went from a number of months to days, gaining back productivity as well as confidence in the system.

Miners can choose to use RCubed through the cloud or on their own premises. Mr Pollock said small companies would take a cloud option without the overhead, whereas the major miners would have their own installation of the system.

“The beauty of the system is it’s completely cloud-based, if that’s what the client wants, so all they need is a login,” he said.

“A bigger company, because it has that infrastructure, might choose to do it themselves in which case we’ll come and help them load and configure the system.

Mr Pollock said RCubed was about helping miners reduce the risk of public reporting by going through the right processes in order to defend the end number.

“It’s all about transparency. What transparency gives you if you have a good asset is basically presenting your asset in the best possible light, therefore giving confidence to potential investors and at the same time staying on the right side of the regulators,” he said.

“There’s going to be quite a lot of M&A (mergers and acquisitions) activity coming up; the big guys will start scooping up what they see as cheap assets and therefore for those smaller companies it’s better to have their data in a well-presented format that can be assessed readily.”

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