New ASX reporting requirements for mining entities and oil and gas entities contained in Chapter 5 of the ASX Listing Rules came into effect on 1 December 2013. The changes mandate a greater level of disclosure, and impose requirements to ensure better quality disclosure.
From 1 December 2013, mining entities are required to comply with the new Chapter 5 and the 2012 edition of the JORC Code* (with the exception of the requirement for a pre-feasibility study or feasibility study to be completed in order to declare an ore reserve, which will come into effect on 1 December 2014). The new disclosure rules apply in respect of an entity publicly reporting in relation to a material mining project either exploration results, resource estimates or reserve estimates for the first time, or any new exploration results or material changes from previous resource and reserves estimates in respect of a material mining project.
The new rules also apply new standards to public reporting of production targets which can no longer be based solely on an exploration target, or solely on a combination of inferred mineral resources and an exploration target. In addition, certain cautionary statements are also prescribed.
The requirement to obtain the prior written consent of a competent person in subsequent reporting of that person’s work without obtaining further consent has also been clarified.
There is no specific time by which adoption of the new enhanced disclosure regime is required. Compliance with the new disclosure rules will occur as and when material developments occur.
Oil and gas entities
For the first time, the ASX listing rules mandate that public reporting of petroleum resources and reserves are to be classified in accordance with the Petroleum Resources Management System sponsored by the Society of Petroleum Engineers (SPE) and other professional associations “SPE-PRMS”. Minimum information requirements apply in respect of the general reporting of estimates of petroleum reserves and contingent and prospective resources, and first time reporting of these estimates in respect of material oil & gas projects.
Requirements applicable to reporting drilling results have also been further specified, and oil and gas companies will need to ensure that from now on reporting of drilling results includes all information specified in Listing Rule 5.30.
* “The JORC Code” is the name given to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC),