The Australasian Joint Ore Reserves Committee (JORC) has released for public comment an exposure draft of a revised JORC Code (2012). The JORC Code (full title: Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves) is essential to ensure investor confidence in the minerals industry in Australasia. The JORC Code is of course widely used around the world.

Acting Chair of JORC, Steve Hunt said: “First developed as a world-leading piece of industry self-regulation in 1989, the code is incorporated in the Listing Rules of the Australian Securities Exchange and the New Zealand Stock Exchange, making compliance mandatory for listing public companies in Australia and New Zealand. The key role of the JORC Code is to ensure consistently high quality and transparent reporting of Exploration Results and reporting of estimates of Mineral Resources and Ore Reserves.

“The exposure draft represents a significant evolution of the JORC Code, and we strongly encourage people to review the draft and provide us comments” he said.

This draft has been prepared following consultation on an issues paper in 2011. JORC received extensive feedback (114 written submissions as well as further direct industry feedback through various public forums and meetings) on the issues paper, and that greatly assisted JORC in preparing the exposure draft.

The review process confirmed that while there is strong support for the JORC Code to remain principles based, there is also a need for improved disclosure standards and greater balance between the core principles of Transparency, Materiality and Competence in public reporting.

The exposure draft of The JORC Code (2012) can be found at www.jorc.org.

Comments are invited up to Friday October 26, 2012. Submissions should be emailed to [email protected].

“JORC also welcomes the parallel release of the ASX consultation paper ‘Reserves and Resources Disclosure Rules for Mining and Oil &Gas Companies: Draft ASX Listing Rules and Guidance Notes for Enhanced
Disclosure’. JORC has been working closely with the ASX and ASIC as we have developed these draft documents, and I am very pleased that we are able to consult on these related documents at the same time”, Hunt said.

There are a number of areas in which the exposure draft JORC Code (2012) and ASX listing rules are in close alignment in seeking to create a more transparent balanced reporting regime for Exploration Results, Mineral Resources and Ore Reserves.

JORC urges that both papers be reviewed concurrently in order to understand the accountabilities and requirements for both Competent Persons and mining companies under the new drafts. JORC, ASX and ASIC have liaised and co-operated in an attempt to ensure the requirements are efficient and compatible. JORC welcomes any comment on the compatibility of the two sets of requirements.

In addition there are a number of issues beyond the scope of the JORC Code covered only within the ASX consultation paper, specifically new guidance on the reporting of Production Targets and the public reporting of
Historical and Foreign Estimates. As these issues are not addressed within the JORC Code, the draft guidance for these issues should be reviewed and commented upon directly to the ASX.