The ASX has released its draft amendments to the ASX Listing Rules and associated Guidance Notes in relation to reserves and resources reporting by ASX-listed mining and oil & gas exploration and production companies. The ASX is seeking submissions on the draft amendments by 26 October 2012.

The draft amendments to the ASX Listing Rules are intended to align the ASX’s framework for reporting mining and oil & gas activities with recognised industry standards, and to promote greater transparency in the public reporting of such activities. The draft amendments were prepared following two years of industry consultation and reflect the regulatory objectives set out in a consultation paper released by the ASX in October 2011. A copy of the consultation paper which contains the draft amendments can be found by clicking here.

Summary of the proposed amendments to the ASX Listing Rules

Mining companies

The draft amendments to the ASX Listing Rules introduce new and amended disclosure requirements for ASX-listed mining companies, including:

  • a requirement to report on sampling techniques and exploration results in accordance with the updated JORC Code;
  • additional requirements for the disclosure of estimates of mineral resources and ore reserves for material projects, including an obligation to disclose all additional information material to understanding the reported estimates;
  • additional requirements for the disclosure of production targets for material projects; and
  • a requirement to disclose mineral resources and ore reserves statements in annual reports, detailing the methods utilised to prepare the statements and changes to the statements from the previous year.

Oil & gas exploration and production companies

The draft amendments to the ASX Listing Rules introduce new and amended disclosure requirements for ASX-listed oil & gas exploration and production companies, including:

  • a requirement to report petroleum reserves in accordance with the Society of Petroleum Engineers’ Petroleum Resources Management System;
  • requiring disclosure of the results of drilling programs only where the company expects the information disclosed to have a material effect on the price or value of its securities;
  • additional requirements for the disclosure of estimates of petroleum reserves, contingent resources and prospective resources for material projects; and
  • a requirement to disclose annual reserves statements in annual reports.

The ASX proposes a 12 month transition period for companies to comply with the revised ASX Listing Rules following regulatory clearance.

The ASX is inviting submissions on the draft amendments and whether the 12 month transition period is adequate by 26 October 2012.

In parallel to the draft amendments to the ASX Listing Rules, the Joint Ore Reserves Committee has published an exposure draft of the revised and updated JORC Code. Comments on the revised and updated JORC Code must also be submitted by 26 October 2012. A copy of the revised and updated JORC code can be accessed here.