The reporting regime for mining companies under the new Chapter 5 of the ASX Listing Rules and the JORC Code 2012 now includes requirements for annual reports of mining entities.

Earlier this year, a number of companies with a financial year end of 31 December 2013 were required by ASX to issue supplementary disclosure to the annual reports.

Listed companies with a financial year end of 30 June 2014 are now entering their annual reporting period and should ensure their annual reports address the new requirements. 

What has changed?

Prior to the introduction of the new regime on 1 December 2013, there was no obligation for an entity to report its mineral resources and ore reserves in an annual report. However, some companies have included some or all of that information in the review of operations section of their report.

There are now three significant new requirements for annual reports:

  1. The annual report must include a summary of the entity’s annual review of mineral resources and ore reserves and a Mineral Resources and Ore Reserves (MROR) statement. 

  2. The MROR statement must include a competent person statement.

  3. Mining exploration entities must include an additional summary of mining tenement information.  

Mineral Resources and Ore Reserves (MROR) statement

Section 15 of the JORC Code 2012 requires a mining entity to conduct a review of, and publically report, its mineral resources and ore reserves annually.

Annual reports issued by mining entities after 1 December 2013 must include a MROR statement that nominates the annual review date and summarises the results of the entity’s annual review. The statement must include: 

  • a summary of the results of the entity’s annual review of its mineral resources and ore reserves;

  • a table setting out the entity’s mineral resources and ore reserves holdings, comprising all of the aggregate economic interests of the entity and its subsidiaries, as at the entity’s financial year end date or another appropriate disclosed date (such as the annual review date); 

  • the mineral resources and ore reserves holdings described in the table must be reported by:

    • commodity type (including grade or quality);

    • category of mineral resource or ore reserve; and

    • geographical area based on the materiality of the mineral resources and ore reserves holdings to the entity; 

  • if the entity reports its mineral resources and ore reserves holdings as at a date other than the entity’s financial year end date, a brief explanation of any material changes in mineral resource and ore reserve holdings in the period between the report date and the financial year end date; 

  • a comparison of the entity’s mineral resources and ore reserves against that of the previous year on the basis of:

    • commodity type (including grade or quality); and

    • total ore reserves and mineral resources by geographical area based on the materiality of the mineral resources and ore reserves holdings to the entity; and

  • a summary of the governance arrangements and internal controls that the entity has put in place with respect to estimates of mineral resources and ore reserves and the estimation process. 

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A separate statement is required for the MROR statement

The MROR statement must include a competent person statement that complies with ASX Listing Rule 5.24. The competent statement must state:

  • that the MROR statement “is based on, and fairly represents, information and supporting documentation prepared by a competent person or persons”;

  • that the MROR statement as a whole has been approved by a named competent person or persons;

  • in each case, whether the competent person is an employee of the mining entity or a related party and, if not, the name of the competent person’s employer; and

  • in each case, the name of the professional organisation of which the competent person is a member.

The MROR statement must not be issued without the prior written consent of the named competent person or persons.

This competent person statement is in addition to any competent person statement that an entity is required to include in the report under the JORC Code 2012 or the JORC Code 2004 in respect of any exploration targets, exploration results, mineral resources and ore reserves that are stated in the annual report.

Mining exploration entities – summary of mining tenements

Under ASX Listing Rule 5.20, a mining exploration entity must also include in its annual report a summary of the mining tenements that are held by the entity or its subsidiaries.

The report must include the location of each tenement and the percentage interest that the entity or its subsidiaries hold in each tenement.