Do you have a passion for best practice in public reporting of exploration results, mineral resources and ore reserves? Expressions of interest are sought from Fellows and Members for a vacancy on the Joint Ore Reserves Committee (JORC).
AIG has four representatives on the JORC Committee, responsible for representing the interests of AIG’s membership and, collaboratively contributing to the ongoing development of the JORC Code and education dealing with its application. Other committee members are drawn from the committee’s two other parent bodies, the Australasian Institute of Mining and Metallurgy (AusIMM) and MInerals Council of Australia (MCA). The Australian Securities Exchange (ASX), Australian Securities and Investment Commission (ASIC) and Association of Mining and Exploration Companies (AMEC) are also represented on the committee.
All public statements of exploration results, mineral resources and ore reserves made by ASX- and NZSX-listed companies, and all exploration reports submitted to New Zealand Petroleum and Minerals must be prepared by a Competent Person and comply with the minimum requirements set out by the JORC Code. Compliance with the JORC Code is required of all AIG members in compliance with AIG’s Code of Ethics.
A planned update of the JORC Code has commenced. A range of issues including competence required to be demonstrated by Competent Persons and the need to ensure that inherent risks revealed by the evaluation of exploration and resource evaluation projects at all stages of development are expected to feature in the update. The update will feature an extensive stakeholder consultation project, the results of which will be analysed by committee members in recommending improvements to the code.
Expressions of interest are sought from AIG Fellows and Members able to commit to actively participating in the JORC Code update and subsequent stakeholder information and education work. Interested members should provide a covering letter outlining their interest in participating in the JORC Committee’s work, and a brief curriculum vitae outlining their relevant experience. Interested members should be able to act as a Competent Person, as defined by the 2012 edition of the code.
Expressions of interest are also sought from Graduate Members and Members to help to support the revision of the Code, which is expected to provide a great opportunity to gain experience in the development of important professional practices and policies.
Expressions of interest should be submitted to AIG’s Executive Officer, Lynn Vigar, by email prior to 28 August 2020. Expressions of interest will be considered by the AIG Board which will recommend an applicant for confirmation by the other two JORC parent bodies, ideally at the commitee’s September meeting.
The vacancy has been created by the resignation of Dr Jacqui Coombes (MAIG) from the committee. Dr Coombes has been a strong advocate for exploration and mining geoscientists in her role as an AIG representative, with a very sound knowledge of the needs of investors and regulators interested in the content and standard of public announcements relating to exploration and mining projects.
Sincere thanks are extended to Dr Coombes for her valued service to our profession.
Abstract submissions are welcome for consideration for the AEGC 2019 Conference, to be held on 2-5 September 2019 at Crown Perth. The theme for the 2019 conference is “Data to Discovery”. The AEGC technical program committee has a focus on Geology, Geophysics, and Geochemistry and how these are applied in exploration for both Petroleum and Mineral systems in Australasia and the wider Asia-Pacific region. We invite you to submit your abstract before the closing deadline at 5pm on Friday 22 March (AWST).
Early Bird Registration will be opening next month, be sure to secure your spot at the early bird rate!
Further information regarding the conference can be found on the AEGC 2019 website.
Updated regulations to allow U.S. mining and exploration companies to report mineral resources resources. Competent person requirements also feature in the new rules for the first time.
In October, the U.S. Securities and Exchange Commission (SEC) adopted a final rule that overhauls its existing disclosure requirements for mining company issuers. This represents the first major change since Guide 7 was adopted almost 30 years ago and brings the U.S. into line with countries following CRIRSCO reporting codes. U.S. companies will be required to begin to comply with the new rules in its first fiscal year beginning on or after Jan. 1, 2021.
Under the current SEC reporting rules, mining companies are not permitted to disclose mineral resources. In Canada, Australia, South Africa and other countries, companies have been required to disclose resources where it would be material information for investors.
Dual listed companies will benefit from decreased compliance costs. Previously, companies listed in the U.S.A. and a country following the CRIRSCO convention for mineral resource and ore reserve reporting were compelled to produce different annual reports and other public disclosure documents dealing with resources and reserves for different markets. U.S. exploration companies should find that the new rules assist with raising funds for exploration in the U.S.A. rather than having to resort to listing on overseas markets, including the TSX, TSX.V and ASX.
U.S. companies that are only subject to the SEC rules, may experience increased compliance costs because of the new requirement to disclose mineral resources and have statements of resources and reserves prepared by a qualified person. Canadian companies that are dual-listed in the US and Canada, have been allowed to comply with Canadian rules (NI 43-101) so are unlikely to be affected by the change.
The SEC announcement included some important provisions.
Geothermal energy is specifically excluded from the new rules.
A principles-based definition of materiality, consistent with Securities Act Rule 405 and Exchange Act Rule 12b-2, was adopted by the commission, whereby a matter is material if there is a substantial likelihood that a reasonable investor would attach importance to it in determining whether to buy or sell securities. The commission also proposed that a company should follow an approach requiring aggregation of all mining properties, regardless of size or type of commodity produced, when assessing the materiality of a registrant’s mining operations.
The commission also adopted a definition of mining operations that includes operations on all mining properties that:
The commission also requires that companies materially disclose the basis for setting forward prices for commodities which form an essential component of asset valuation and, therefore, asset materiality. Companies may not exceed the average price for the preceding 24 months. Beyond this, however, qualified persons may use any reasonable and justifiable price, with transparent justification.
The new rules permit a mineral resources to be disclosed inclusive of mineral reserves, as long as mineral resources exclusive of reserves are also stated. This rule is more specific than current requirements of some other reporting codes, including the JORC Code (2012).
Inferred resources are also able to be used in economic analysis, as long as certain conditions are met.
The new rules adhere to the CRIRSCO convention where a public report about a company’s exploration results, mineral resources, and mineral reserves must be based on and fairly reflect information and supporting documentation prepared by a “competent” or “qualified person.” This is the first time that the commission has defined a role for competent persons which may be both individuals, or companies employing individuals responsible for preparing reports.
A “qualified person” is defined as a “mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking”. Additionally, qualified persons must be “an eligible member or licensee in good standing of a recognised professional organisation at the time the technical report is prepared”. These requirements effectively mirror those of the JORC Code (2012).
The new rules allow multiple qualified persons to prepare a technical report provided the sections of the report for which individuals are responsible are clearly specified, signed dated and consented to by each individual.
Reports must include a consent statement from the qualified person, state whether the qualified person is an employee of the company and, if not an employee, what relationship or interests the qualified person may have in the company.
The rules specifically indemnify the qualified person from findings and conclusions regarding certain aspects of modifying factors discussed in technical reports that the qualified person specifically states were based on information provided by the company – another first and an important legal protection for individuals or groups acting as qualified persons.
A “recognised professional organisation” would have to be either recognised within the mining industry as a reputable professional association, or be a board authorised by U.S. federal, state or foreign statute to regulate professionals in the mining, geoscience, or related field.
Furthermore, the organization must:
The commission has elected, however, to adopt a principles-based approach to professional organisation recognition rather than the approach adopted by existing CRIRSCO codes of publishing a list of Recognised Overseas Professional Organisations (ROPO) updated by organisations responsible for reporting standards in individual countries from time to time. AIG is considered to fully meet the commissions requirements of a recognised professional organisation, supported by it being recognised in all current jurisdictions where CRIRSCO template reporting codes are in use.
AIG welcomes the SEC announcement which brings the U.S.A. closer to countries with effective, transparent and material codes for exploration result, mineral resource and ore reserve reporting that provide informed investors with a basis for sound mineral asset investment decisions. The new rules also provide an opportunity for Australian geoscientists, experienced in the application of the JORC Code and Canada’s National Instrument NI 43-101, to share their knowledge and experience with their U.S. counterparts.
The SEC release announcing the new rules is available here.
A recent judgement in a case relating to a dispute between parties involved in a Western Australian iron ore project contained several important lessons for Competent Persons preparing statements of Exploration Results, Mineral Resource and Ore Reserve estimates. The judgement was handed down on 14th August, 2015 following hearings in the Federal Court of Australia during June 2015.
Technical reports tendered as evidence in the case were ruled to be inadmissible by the Judge hearing the case. Some of the shortcomings identified by the Judge have been addressed by the 2012 edition of the JORC Code(JORC 2012), largely through mandating the transparent and material assessment of all items included in Table 1 of the JORC Code and mandating the use of an “if not – why not” approach, which itself is an important means of ensuring transparency. The reporting of Exploration Potential has also been further clarified in JORC 2012.
Important lessons arising from the judgement for geoscientists acting as Competent Persons include:
It is worth noting that the situation regarding JORC compliance is currently somewhat different between Australia and New Zealand. New Zealand Petroleum and Minerals has taken the very significant step of requiring JORC 2012 compliance for all reports of Exploration Results, Mineral Resources and Ore Reserves by both companies and state owned corporations. This includes the requirement for reports to be prepared by a Competent Person. This effectively extends JORC compliance to all entities who hold prospecting, exploration and mining permits in New Zealand, not just publicly listed companies. AIG considers this an effective means of extending the benefits of JORC Code compliant reporting to New Zealand’s entire exploration and mining industry.
The AIG Complaints Committee reviewed the conduct of the Competent Person named in the documents relating to exploration results, resources and reserves and elected not to refer the matter to the Institute’s Ethics and Standards Committee. The Complaints Committee found no evidence of professional misconduct warranting further action.
Chairperson, Complaints Committee
21 November 2015
The Government of Greenland invites AIG members to participate in their annual Greenland Day, 9 December 2015 in Perth, at the University of Western Australia Club.
The program will include presentations from the Government of Greenland, the Geological Survey of Denmark and Greenland, the Centre for Exploration Targeting, Curtin University, and invited companies operating in Greenland on:
There will be opportunities to meet with the representatives from the Ministry of Mineral Resources including Head of the Geology Department, Chief Geologist, and Head of the Licensing Department, Government of Greenland.
Date: Wednesday 9 December, 2015
Where: UWA Club at the University Campus, Perth
When: 8.30am – 5pm followed by Sundowner
Catering: Morning tea, afternoon tea and light buffet lunch provided
The conference is expected to attract patrons including executives from mining and resource companies, potential partners, brokers, analysts, corporate advisors and Australian media. Please confirm your registration by completing the confirmation form and sending it to MMR Chief Geologist Henrik Stendal.