IFRS for the Minerals and Mining Sector

IFRS for the Minerals and Mining Sector

Master IFRS 6 and Sustainability-Aligned Reporting for the Minerals and Mining Industry

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Platform:
Online
In-class
Date Venue Duration
16 - 18 September 2026 Sandton, Gauteng 3 Days
19 - 21 October 2026 Sandton, Gauteng 3 Days
16 - 18 November 2026 Sandton, Gauteng 3 Days

Course Introduction

There are diverse accounting practices among companies in the worldwide extractive industry. To provide guidance and a transition path for entities in the extractive industry adopting IFRS, the IASB issued IFRS 6 Exploration for and Evaluation of Mineral Resources in December 2004. The Standard applies to expenditures incurred in connection with the exploration and evaluation of mineral resources. 

This course summarises the accounting and disclosure requirements of IFRS 6 and discusses the outcome of the IASB’s work on accounting for extractive activities. Key accounting standards that affect the industry are also given in-depth coverage, such as IFRS rules on impairment of assets, recognition and measurement of assets, revaluations of certain qualifying assets, decommissioning and site restoration costs, accounting for reserves, disclosures, and hedge accounting. The programme also provides guidance on accounting issues relating to joint ventures and production sharing agreements and includes an overview of the interpretation IFRIC 20 ‘Stripping Costs in the Production Phase of a Surface Mine’. 

This course answers questions such as: 

  • What are the accounting and disclosure requirements of IFRS 6 Exploration for and Evaluation of Mineral Resources? 
  • What are the different accounting requirements for production and exploration assets? 
  • What was the outcome of the IASB’s review of accounting practices in the extractive industry? 
  • How does IFRS 1 First-time Adoption of International Financial Reporting Standards apply to extractive industries, what are the first-time adoption rules, and how will this affect your transition? 
  • How does IFRS relate to asset retirement and costs associated with decommissioning mines as well as restoration/rehabilitation? 
  • What are the critical compliance issues relating to hedge accounting? 
  • When are options available for valuing tangible assets (property, plant and equipment) and what are the optional treatments? 
  • When are options available for valuing intangible assets and what are the optional treatments? 
  • How are the recognition and measurement rules for impairment applied? 
  • What are some of the issues specific to mining sector business combinations? 
  • In what manner are joint ventures structured in the minerals and mining sector? 
  • How are stripping costs in the production phase of a surface mine accounted for? 
  • How do sustainability-related disclosure requirements (IFRS S1/S2, GRI 14) now interact with traditional financial reporting for mining companies? 

Course Objectives

By the end of this course, you will have learned to:
  • Understand and apply the accounting and disclosure requirements of IFRS 6 Exploration for and Evaluation of Mineral Resources
  • Understand the outcome of the IASB's concluded review of extractive industry accounting practices
  • Apply hedge accounting
  • Understand the options available for valuing tangible assets
  • Interpret the complex rules on evaluating assets for impairment
  • Complete a smooth transition to IFRS
  • Understand the nature and structure of joint ventures in the minerals and mining industry
  • Learn the external financial reporting requirements for joint ventures
  • Comprehend the mechanisms of financing and reporting the operations of joint ventures
  • Appreciate the issues regarding intra-partner relationships, including cost allocation and audits
  • Become familiar with IFRS 11 ‘Joint Arrangements’ and its impact on the accounting treatment of joint ventures and other joint arrangements
  • Understand the rules of the interpretation IFRIC 20 ‘Stripping Costs in the Production Phase of a Surface Mine’
  • Understand how IFRS S1/S2 sustainability disclosures and the GRI 14 Mining Sector Standard now interact with traditional financial reporting

Who should attend?

  • CFOs New to the Minerals and Mining Industry
  • CFOs of Mineral and Mining Companies in the Process of Adopting IFRS
  • Financial and Management Accountants in the Minerals and Mining Industry
  • Internal and External Auditors of Minerals and Mining Companies Reporting Under IFRS
  • Financial Analysts Seeking to Improve Their Understanding of the Accounting by Minerals and Mining Companies
Finance Courses

Training Methodology

Our diverse instructional approaches ensure effective learning:

– Lectures & Presentations: Engage with expert-driven, stimulating content.
– Course Material: Access well-crafted supporting resources.
– Group Work: Collaborate on discussions and case studies for practical insights.
– Workshops & Role-Play: Participate in immersive, scenario-based activities.
– Practical Application: Focus on applying theoretical knowledge in real situations.
– Post-Training Support: Receive extensive support after training for skill implementation.

Training Outline

Module 1: Features of the Minerals and Mining Industry
  • Non-renewable reserves
  • Scale of capital investment
  • Pattern of cash flows
  • Risks
  • Variety of business structures
Module 2: Accounting Issues in the Minerals and Mining Industry
  • Challenge of representing the mining industry in a context of historical cost accounting
  • Disparity between cost and value
  • Exploration: capitalisation vs. expense
  • Full cost vs. successful efforts
  • Fixed assets
  • Capitalised costs
  • Impairment
Module 3: Reserves and Other Disclosures
  • Resources and reserve statements and other disclosures
  • Reserve definitions and disclosures
  • Use of reserves in accounting
  • Other disclosures
  • Examples of published disclosures
Module 4: The IASB's Review of Extractive Activities Accounting — Outcome and Implications
  • Background: objectives of the IASB's Extractive Activities research project
  • Outcome: the project concluded at the Board's September 2023 meeting, with the decision to retain IFRS 6 in its current form rather than replace it — diverse accounting policies for exploration and evaluation expenditure will therefore continue to be permitted in practice
  • Role of the IASB Framework for the Preparation and Presentation of Financial Statements
Module 5: Exploration for and Evaluation of Mineral Resources (IFRS 6)
  • Recognition and measurement
  • Reclassification
  • Impairment
  • Disclosures
  • Full cost accounting
  • Successful efforts accounting
Module 6: Development (IAS 16 and IAS 38)
  • Asset categories
  • Directly capitalised vs. transfer from exploration and evaluation
  • Depreciation, depletion and amortisation
  • Capitalisation of borrowing costs – IAS 23
  • Cost model vs. revaluation model
Module 7: Impairment (IAS 36)
  • Why is impairment an issue for the minerals and mining industry?
  • General rules for impairment testing
  • Cash generating units
  • Recognition and measurement of impairment losses
  • Reversal of impairment losses
Module 8: Decommissioning Costs and Site Restoration (IAS 37)
  • Recognition of liability
  • Changes to decommissioning liabilities – IFRIC 1
  • Worked example
  • Disclosures
Module 9: Production Phase Accounting
  • Commissioning and production
  • Depreciation (IAS 16, IAS 38)
  • Stripping costs in the production phase of a mine (IFRIC 20)
  • Revenue (IFRS 15)
  • Taxes (IAS 12)
  • Leases (IFRS 16)
Module 10: Financial Instruments (IFRS 9)
  • Overview of IFRS 9 classification and measurement (superseding the previous IAS 39 approach)
  • Expected credit losses
  • Risk management in the minerals and mining industry
  • Hedge accounting
  • Practical issues
  • Disclosures
Module 11: Group Accounting and Consolidation
  • Business combinations (IFRS 3)
  • Control and consolidation of subsidiaries (IFRS 10 and IAS 27)
  • Significant influence and equity accounting of associates (IAS 28)
  • Joint control and equity accounting of joint ventures/proportionate consolidation of joint operations (IFRS 11)
  • Step acquisitions
  • Step disposals
  • Other common group and consolidation issues in the mining industry
  • Disclosures (IFRS 12)
Module 12: Sustainability-Related Disclosure for Mining Companies
  • IFRS S1 (General Requirements) and IFRS S2 (Climate-related Disclosures): now being adopted across major listings including the JSE, ASX, TSX, and LSE, with mandatory climate-related financial disclosures ramping up
  • GRI 14, the Mining Sector Standard, effective globally from 2026
  • How sustainability disclosure is converging with traditional financial reporting, and what this means for mining company disclosures going forward
Prerequisites
  • Knowledge of basic accounting under any national standards. No advance preparation is required for this course.

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FAQs – IFRS for the Minerals and Mining Sector

Master best practices in payroll accounting and reconciliation to ensure accurate payroll processing, strengthen financial controls, resolve discrepancies, maintain compliance, and improve payroll efficiency.

What topics are covered in the IFRS for the Minerals and Mining Sector course?
The course covers IFRS 6 (exploration and evaluation of mineral resources), IAS 16 (capitalisation of mine development costs and stripping costs under IFRIC 20), IAS 36 (impairment of mining assets and Cash-Generating Units), IAS 37 (environmental rehabilitation and mine closure provisions), and IFRS 11 (joint arrangements in mining).
Who should attend this mining sector IFRS training masterclass?
This training is designed for financial directors, mining accountants, group controllers, internal and external auditors, valuation managers, and finance officers working within exploration, extraction, processing, and mining enterprise operations.
What are the key learning objectives of this mining accounting course?
Delegates learn to handle the unique accounting lifecycle of a mine, apply IFRIC 20 to surface mining stripping costs, construct compliant environmental rehabilitation models, test mining Cash-Generating Units (CGUs) for impairment under volatile commodity markets, and structure joint venture reporting.
How long is the IFRS for the Minerals and Mining Sector course?
The programme is delivered as an intensive 5-day professional masterclass combining hands-on balance sheet modeling workouts, mine closure liability calculations, and real-world annual reporting disclosures from leading mining houses.
What practical skills will delegates gain from this masterclass?
Participants will gain practical skills in differentiating between production-phase stripping assets and operational expenses, calculating discount rate unwinding for long-term closure liabilities, modeling unit-of-production (UOP) depreciation, and evaluating impairment triggers for mineral reserves.
Can Prospen Africa deliver this course as customized in-house training?
Yes. Prospen Africa can tailor the masterclass to focus on your company's specific mineral commodities (e.g., precious metals, coal, base metals), mining methods (open-pit vs. underground), environmental closure regulations, and corporate reporting policies.

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