What does a mineral inspection company do?
A mineral inspection company provides independent evidence about a mineral lot: that it exists, how much there is, what it is, how it is packed and marked, and whether it matches the agreed specification. Some also examine the supplier — its registration, licences and ownership — before the trade.
What is the difference between port inspection and buyer-side inspection?
| Port and laboratory inspection | Buyer-side due diligence and inspection | |
|---|---|---|
| When | At loading or discharge, after the contract is signed | Before the contract is signed, and again before loading |
| Where | Port, terminal, laboratory | Registry, mine, warehouse, vault, port |
| What it confirms | Weight, sampling and analysis of the cargo | The supplier, its licences and ownership, and the goods at source |
| Who it works for | Often appointed under the contract by either party | Appointed by and reporting to the buyer |
| What it cannot tell you | Whether the seller had the right to sell, or the goods ever existed before loading | — |
When does a buyer need port and laboratory inspection?
When the trade is established, the supplier is known, and the remaining risk is the quantity and grade of each shipment. Weighing, sampling and analysis at loading settle the commercial figures, and many contracts and letters of credit require them.
When does a buyer need due diligence and inspection at source?
When the supplier is new, the deal is large, the documents come from the seller, or payment is due before loading. In these cases the main risks — a seller without a licence, goods that do not exist, documents that were never issued — arise before any cargo reaches a port.
What accreditation should an inspection company and its laboratory hold?
ISO/IEC 17020 sets the requirements for bodies performing inspection; ISO/IEC 17025 sets them for testing laboratories. Ask whether the inspector works to ISO/IEC 17020 and whether it holds accreditation, and from which accreditation body. For laboratories, accreditation is granted test by test: ask for the accreditation scope that covers the exact test, such as gold fire assay (ISO 11426).
How independent is the inspector from the seller?
Ask who appoints and pays the inspector, whether the inspector or any related company trades in the mineral, and whether its fee depends on the transaction going ahead. An inspector paid only if the deal closes has a reason to find that it can.
Does the inspector have people in the country?
An inspector with staff in the country can reach a site within days, knows the registries and authorities, and can search records in person where they are not online. An inspector who must subcontract locally should say who will attend, and how that person is supervised.
What should the inspection report cover?
- Who inspected, where and when.
- Counts, weights and the equipment used.
- Field readings and the methods used.
- Seal numbers for the lot and samples.
- Photographs taken by the inspector, with dates.
- The result against the agreed specification — conforming or not conforming.
- Laboratory certificates, where samples were analysed.
Who should the report be addressed to?
To the party relying on it. A report addressed to the seller, or passed on by the seller, gives the buyer far less: it can be selective, out of date or about a different lot. Laboratory certificates should likewise be issued in the buyer’s name.
How can a report be checked as genuine?
Ask whether the inspector offers a way to confirm its reports — by reference number, directly with the issuing office. A report that cannot be confirmed with its issuer should be treated like any other unconfirmed document.
What should I ask before appointing an inspection company?
- Which standard do you work to, and do you hold accreditation for it? From whom?
- Which laboratory will analyse the samples, and is the test within its accreditation scope?
- Who appoints you and who pays you? Does your fee depend on the deal closing?
- Do you or any related company trade in this mineral?
- Who will attend the site, and are they your staff?
- Can you check the supplier’s registration, licences and ownership as well as the goods?
- What will the report contain, and to whom will it be addressed?
- How can a third party confirm the report is genuine?
Which warning signs should make a buyer look elsewhere?
- The inspector is introduced or paid by the seller.
- The fee depends on the transaction proceeding.
- Accreditation is claimed but no certificate number or scope is given.
- The report is delivered through the seller rather than directly.
- No one can attend the site before payment.
Where can I commission independent inspection at source?
Nairank Global’s mineral inspection and pre-shipment inspection are carried out by its own inspectors in seven African countries, report to the client alone, and sit alongside supplier due diligence on the company behind the goods.