Update to Australia's JORC Code Seeks Stricter "Technical Guardrails"

The Australasian Joint Ore Reserves Committee (JORC) is asking for feedback on proposed changes to the JORC Code, a professional code of practice that sets public reporting standards for resource companies.

The draft JORC Code, published on Thursday (August 1), makes changes to six key areas: structure and format; competence and responsibility; reasonable prospects; ESG; risks, opportunities and threats; and reconciliation.

The committee's proposed changes include a requirement for all ASX-listed mining companies to publicly acknowledge any environmental risks to their projects. Qualified professionals with mining experience will also have to provide a technical sign off on each project, and will have to make their credentials available to the public.

Additional reporting criteria, such as the addition of clauses specifically related to ESG, are also covered in the draft.

A summary of the proposed changes provides a rundown of the new requirements for each key area. It also explains the rationale behind each change, emphasising improvements in clarity, consistency and transparency in reporting.

JORC Chair Steve Hunt told Bloomberg that the changes create “technical guardrails” for announcing exploration results, as there is always a tendency for companies to “talk up their investment opportunities.”

“It puts the handbrake on companies making up their own terminology and definitions,” he explained to the news outlet, adding that no mining entity listed on the ASX will be exempted from following the framework.

The JORC Code was first published in 1989 and was last updated in 2012. Consultations with stakeholders for the planned changes will happen over the course of the next few weeks.

“To the extent that any proposals impact on the Listing Rules and our guidance, our main interest will be that the changes continue to encourage strong and consistent disclosure on our market of mining exploration results and estimates of resources and reserves,” a spokesperson for the Australian Securities Exchange told Bloomberg.

A three month survey has been opened, inviting the public to comment on elements of the code. The survey is available online and responses will be accepted until 11:59 p.m. AEST on October 31.

If the review process proceeds as planned, a final draft of the code is expected by the end of the year. The target release is in 2025, followed by a transition period and an additional year before compliance with the new version is mandatory.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.