The 2012 JORC Code – a new era in mineral reporting obligations

January, 2014

Background

On and from 1 December 2013, all ASX-listed mining and exploration entities are required to comply with the new reporting requirements set out in Chapter 5 of the ASX Listing Rules and the 2012 version of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the 2012 JORC Code).

Overview of the key requirements

As a general rule, public reports must comply with the 2012 JORC Code when they contain information relating to exploration targets, exploration results, mineral resources, ore reserves and production targets. In the case of material or ‘significant’ projects, where the relevant information:

– is reported for the first time; or
– has materially changed since it was reported to the market for the first time,
the ASX Listing Rules require the disclosure of both:
– a report that is compliant with the 2012 JORC Code; and
– prescribed additional information (which varies depending on the type of information being reported).

Changes to the 2012 JORC Code

When reviewing of the previous JORC Code, the JORC Committee aimed to:

enhance the quality of reported information;
clarify the provisions of the previous (2004) JORC Code; and
align key definitions (such as ‘Exploration Results’, ‘Mineral Resources’ and ‘Modifying Factors’) with international reporting standards.

 

Certain changes will have a significant impact on the reporting practices for the industry. By way of example:

the Checklist of Assessment and Reporting Criteria (Table 1) attached to the 2012 JORC Code was considerably expanded (both in terms of contents and guidance) compared to its 2004 equivalent;
it is now compulsory to report against each criteria set out in Table 1 on an “if not, why not” basis; meaning that, a Competent Person preparing a public report must provide written reasons if it considers it has no comments to make on any given criterion;
listed entities must disclose their relationship with the Competent Person preparing a public report. Likewise, Competent Persons must disclose all potential conflict of interests; and
the procedure relating to the need to obtain the consent of the Competent Person before releasing a public report was simplified so that, if there are no material changes to the information previously reported, a listed entity can refer to an earlier report without obtaining further consent.

Some staggered implementation

Another key change imposed by the 2012 JORC Code is the requirement to conduct at least one pre-feasibility study before declaring an Ore Reserve. Although early compliance is encouraged by both the ASX and the JORC Committee, this requirement will not become compulsory until 1 December 2014.

Contact Mills Oakley

For more information or assistance please contact:

gavin-douglas-mills-oakley

Gavin Douglas  | Partner
D: (02) 8289 5855
gdouglas@millsoakley.com.au

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