Lessons learned about standards from applying both VALMIN and USPAP on a complex appraisal project

The author attempted to concurrently apply the US Uniform Standards of Professional Appraisal Practice (USPAP) and the Australian VALMIN Code to a complex mineral property appraisal assignment and previously to some modest assignments. This led the author into many severe difficulties. These difficulties included the high standards needed in the work of others and information and statements required from the client under the VALMIN Code. The exercises highlighted many positive features of both sets of standards. However, the author concluded that, without modification, VALMIN is incompatible with USPAP and the US regulatory environ¬ment. The author found that VALMIN violates US legal decisions regarding real property appraisal due to its requirement to include many items of business value. The US Securities and Exchange Commission's prohibition on reporting quantitative resource estimates proved to be a severe problem under VALMIN. Some VALMIN requirements could not be met due to the extent and quality of documents specified. Implications and thoughts regarding the development of a set of US minerals appraisal standards are discussed. Management considerations for complex mineral-property appraisal assignments are also presented.