National Instrument 43-101 or NI43-101 is a set of rules and regulations set by the Canadian Securities Administrators which oversees the standards of information that mining companies disclose. While NI43-101 has only existed since the late 90's, it is acknowledged within the mining industry as the most rigorous and carefully created disclosure policy in the world. It is so highly valued that many analysts in North America and in Europe now request that information be disclosed using NI43-101 standards, even if the property is outside of Canada. Often, failing to do so, analysts will ignore these properties and companies.
NI43-101 was developed and implemented in the late 90's as a response to the Bre-X fraud, which highlighted the need of oversight and monitoring of data. To protect investors, the classification scheme ensures that data is not tampered or made inaccurate. This safety is built in by requiring disclosure be based on the advice of a Qualified Person. To be considered a Qualified Person, it's not sufficient to be an experienced engineer or geoscientist alone; instead the Qualified Person must meet several requirements beyond this. They include;
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Being an engineer or geoscientist for at least 5 years, with experience in mineral exploration, mine development or operation or mineral project assessment.
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Has experience relevant to the subject of the mineral project and the technical report.
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Must be a member in good standing of a professional engineering or geoscience association.
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The engineering or geoscience association must have an enforceable code of ethics.
These engineering and geoscience associations have increasingly become more careful on who they allow within their organization as a result of NI43-101.
The information that NI43-101 covers is wide, including but not limited to any written documents, presentations, websites and oral statements made. It also sets out requirements and the format of reports that are acceptable under its jurisdiction. The Canadian Institute of Mining, Metallurgy and Petroleum lists the following requirements;
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All disclosure of scientific or technical information must be based on information prepared or supervised by a Qualified NI 43-101 Person.
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What NI 43-101 is used for.
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The terminology that can be used in describing features in the report. This includes both financial and geological features.
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The type of information and technical data.
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A list of approved people, and the definition of how a person may qualify.
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That a Qualified Person vouches that the report is complete and accurate.
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Provides guidance on historical estimates.
Essentially, NI43-101 is designed and implemented to protect the investors. By setting and overseeing guidelines on what can and can't be disclosed to the public, National Instrument 43-101 makes sure no further scandals occur and that the public are getting information that has been vetted to be as accurate and safe as possible. It is so well crafted and rigourous that investors often won't begin to look at projects unless NI43-101 is used. National Instrument is a Canadian disclosure scheme, but it is so highly regarded in the mining community that its use is expanding and is becoming the norm in the global market.