Mining & Extractive Industries Knowledge Center
Explore our verified library of Mining & Extractive Industries transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
Exploration Cost — Expensed (Pre-IFRS 6 Threshold)
Recording early-stage geological survey and exploration costs before a mineral resource is identified.
Exploration & Evaluation Asset — IFRS 6 Capitalisation
Capitalizing exploration and evaluation costs under the company's IFRS 6 accounting policy.
E&E Asset Impairment — Licence Abandonment
Writing off exploration assets when a licence area is abandoned after unsuccessful exploration.
Mine Development Cost — Shaft Sinking and Access
Capitalising the cost of mine shaft construction, access road development, and infrastructure during the development phase.
Ore Production — Transfer to Inventory
Recording the production of run-of-mine (ROM) ore and transfer to stockpile inventory.
Ore Processing — Cost Transferred to Concentrate Inventory
Recording the cost of processing ore through a concentrator or processing plant to produce metal concentrate.
Mineral Sales Revenue — Concentrate Delivery
Recognizing revenue from the sale of copper concentrate, iron ore, or other mineral product to a smelter or trader.
Provisional Pricing Adjustment — Metal Price Movement
Adjusting mineral sales revenue for the change in metal price between shipment date and the quotation period.
Government Royalty Expense
Recording the royalty payable to the government or resource owner based on mineral production or revenue.
Stripping Activity Asset — Open Pit Waste Removal
Capitalising waste rock removal costs that provide access to ore to be extracted in future periods.
Mine Assets — Units-of-Production Amortisation
Amortising mine development assets and stripping activity assets on a units-of-production basis.
Mine Rehabilitation / Closure Provision
Recognising the provision for the estimated cost of restoring the mine site at end of life.
Rehabilitation Provision — Unwinding of Discount
Recording the annual increase in the rehabilitation provision due to the passage of time (discount unwinding).
Cost of Sales — Mineral Concentrate Sold
Recognizing the cost of concentrate inventory sold to the smelter.
Ore Stockpile NRV Write-Down
Writing down ore stockpile inventory to net realizable value when metal prices decline below cost.
Mine Asset Impairment — CGU Assessment
Recognising an impairment of a mining operation's assets when recoverable amount falls below carrying value.
Gold Doré Production — Transfer to Bullion Inventory
Recording the production of gold doré bars from the carbon-in-leach (CIL) or heap leach circuit.
Streaming Agreement — Upfront Payment Received
Recording the upfront cash payment received from a precious metals streamer in exchange for the right to purchase future production at a fixed price.
Offtake Prepayment — Advance from Smelter
Recording an advance payment received from a smelter or trader against future concentrate deliveries.
Corporate Income Tax — Mining Operation
Accruing income tax on the mining company's taxable profit from mineral extraction.
Deferred Tax — Accelerated Capital Allowances vs. UoP Amortisation
Recording the deferred tax on the timing difference between accelerated tax depreciation and accounting UoP amortisation.
Joint Venture Mine — Proportionate Share Accounting
Recording the owner's proportionate share of a joint operation mine's assets, liabilities, revenues, and costs.
Metal Price Hedging — Forward Sale Contract
Recording the fair value of gold or copper forward contracts used to hedge future production revenue.
Reclamation Fund — Mandatory Regulatory Contribution
Recording mandatory cash contributions to a government-administered mine reclamation fund.
Royalty Income — Mineral Rights Lessor
Recording royalty income earned by a landowner or mineral rights holder when a miner extracts minerals from their property.
Tailings Storage Facility — Capital Construction
Capitalising the construction cost of a tailings storage facility (TSF) for processing waste.
Ongoing Water Treatment and Environmental Monitoring
Recording the ongoing cost of water treatment and environmental monitoring at an operating mine.
Smelter Treatment and Refining Charges (TC/RC)
Recording the treatment and refining charges payable to the smelter as a deduction from mineral revenue.
Concentrate Freight and Marine Insurance
Recording shipping and insurance costs on concentrate transport from mine to smelter.
Resource Rent Tax (Profits-Based Additional Tax)
Accruing a resource rent tax or super profits tax triggered when mining returns exceed a threshold rate.
Sustaining Capital Expenditure vs. Operating Cost
Recording sustaining capital expenditure that maintains the mine's productive capacity at the existing level.
All-In Sustaining Cost (AISC) — Non-GAAP Disclosure
Calculating and disclosing the World Gold Council AISC metric for a gold mining operation.
EOSB Provision — Mining Staff (Jordan)
Accruing end-of-service benefits for Jordanian mining company employees.
SSC Employer Contribution — Mining Staff (Jordan)
Recording the 14.25% employer SSC contribution for Jordanian mining company employees.
GST Treatment — Mineral Exports (Jordan)
Recording the zero-rated GST treatment of mineral concentrate exports from Jordan.
Import Duty Exemption — Mining Equipment
Recording the import of mining equipment benefiting from a duty exemption under a mining investment agreement.
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