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NEWSLETTER
Updated on 6th June, 2008
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Contents: (click on the selected item to go directly to the article)
SEMINAR INVITATION
CONTINUOUS DISCLOSURE, CORPORATE GOVERNANCE AND THE JORC CODE
ASX and ASIC are bringing together at a free seminar in Brisbane on 2nd July, a range of industry bodies and professionals to discuss recent initiatives and developments in continuous disclosure, corporate governance and the JORC Code.
Details of the seminar and a registration form can be downloaded here.
Liability of Competent Person
The JORC Code requires that, for a published report to be compliant with the JORC Code in reporting resources, reserves or exploration results, the documentation on which the report is based must be prepared by, or under the direction of, and signed by, a Competent Person or Persons.
Kym Livesley of Gadens Lawyers, Sydney has prepared an article entitled "Liability of Competent Person for JORC reports" which was published in the Bulletin of the Australasian Institute of Mining and Metallurgy in January/February 2008. The article provides a brief overview of the potential liabilities faced by Competent Persons as a result of their professional role in preparing their report. It discusses a number of measures which must be undertaken to ensure that the liabilities are adequately minimised. Click here to download a copy of the article.
ASX Companies Updates
The Australian Securities Exchange (ASX) recently reported on its monitoring of announcements made by listed mining and exploration entities in ASX Companies Update 03/08. ASX highlighted concerns on the following aspects:
- Reporting of "in situ" values
- Reporting historical or non-JORC compliant estimates
- Competent Person statement
- Reporting exploration targets
- Lack of drill hole information
- Combining categories of resource and reserves
- Incorrect use of reserves or resources to describe results
There is significant new advice on the inappropriateness of reporting in-ground values concluding that use of the terms ‘in-ground value’ or ‘in situ value’, should not be reported by companies.
A copy of the Update (No 03/08 18 March 2008) can be read or downloaded by clicking here.
Other updates, recently released by ASX, which were developed after extensive discussion with JORC, and which are relevant to the use of the JORC Code in Public Reporting, are:
These Updates provide important information and guidance for professionals and ASX Listed Entities preparing public reports of Exploration Results, Mineral Resources and Ore Reserves. If you are signing off as a Competent Person as defined under the 2004 JORC Code for Exploration Results, Mineral Resources and Ore Reserves your special attention is drawn to these ASX Companies Updates. Readers of the JORC Code are advised to consult these Updates.
A copy of the four ASX Companies Updates has been appended to the JORC Code and will automatically download when the Code is downloaded, or can be downloaded separately here
Recognised Overseas Professional Organisations (ROPO):
Dealing with Ethical Complaints
In the letter notifying ROPOs of the inclusion of their professional organisation in the list of ROPOs, the Chair of the ROPO Taskforce advised that, for the ASX to recognise overseas professional organisations, it must be satisfied that ROPOs should not only be capable of dealing with ethical complaints made in respect of Competent Persons and the JORC Code, but that they should be seen to be actively implementing this capability if any such complaints are made. The organisations were further advised that, pursuant to this requirement, the Chair of JORC would be writing to each ROPO once a year or as required, asking whether any members had been reported to the ROPO for alleged non-compliance.
Current ROPOs were sent a letter on 21 December 2007 requesting advice as to whether any of members of the organisation had been reported for alleged non-compliance with the JORC Code, since the last enquiry dated 10 November 2006. The organisations were requested to provide a statement along the lines: "During the year, the [name of association] investigated, in accordance with the ethical provisions of the association, X complaints with respect to members of the association acting as Competent Persons under the JORC Code. These ethical enquiries resulted in Y of the complaints being dismissed and Z being upheld. Suitable disciplinary action was undertaken".
Most organisations replied promptly, but again several required more than one reminder. All ROPOs have now responded. Several ROPOs responded that there had been complaints dealt with according to their processes, but all indicated there had been no complaints against members acting as Competent Persons under the JORC Code.
Reporting Uranium Projects
Peter Stoker, Chairman JORC and Gavin Yeates, member of JORC, made a presentation at The AusIMM Uranium Reporting Workshop in Adelaide on 28th November, 2007, titled "Reporting Uranium projects under the Principles based JORC Code, how to use the guidelines in Table 1". Copies of the abstract, the PowerPoint presentation used and a modified version of Table 1 showing its relevance to uranium reporting, can be downloaded or read by following the links.
Resource Estimates for In Situ Leach Uranium Projects
and Reporting Under the JORC Code
This paper focuses on the estimation and reporting of Ore Reserves and Mineral Resources for sandstone
type uranium deposits amenable to in situ leach (ISL) mining. There has been some debate in recent years as to whether the JORC Code
adequately covers the reporting of uranium resource estimates for ISL projects. These present a special case partly because of the limited
experience in Australia in evaluating and operating ISL projects. Also the mineralised zones are not exposed for study during the evaluation or mining
of the deposits, and it can be difficult to recover representative samples in friable mineralisation for chemical and
physical measurements.
A copy of the paper can be read or downloaded by clicking here.
JORC Code 2004 and ASX Companies Update 03/07
Guidance for Practitioners
On the 19th June, 2007, the JORC Committee issued an important paper, aimed at assisting practitioners understand the background and discussions which led to the issue by the Australian Securities Exchange (ASX) of the Companies Update no 03/07, on 3 May 2007. The Update summarises the conclusions drawn from the discussion of the meaning of Inferred Resources over the past two years, as well as additional material arising from other points raised by interested parties following the issue of the 2004 JORC Code.
This paper provides important information and guidance for professionals and ASX Listed Entities preparing public reports of Exploration Results, Mineral Resources and Ore Reserves. If you are signing off as a Competent Person as defined under the 2004 JORC Code for Exploration Results, Mineral Resources and Ore Reserves your special attention is drawn to ASX Companies Update, Update no 03/07, 3 May 2007.
A copy of the paper can be read or downloaded by clicking here.
What is the JORC Code?
A press release was issued by the AusIMM in August, for the purpose of clarifying what the JORC Code is and, perhaps more importantly, what it is not. With the AusIMM's permission, it has been included in our library and a copy can be read by clicking here. Readers are also referred to the Code itself and to papers under "Technical Library" that describe the Code more fully.
The CRIRSCO International Reporting Template
A major step forward in ensuring transparency for mining investors everywhere
The current commodities boom is creating an unprecedented interest in the mining industry. This acts as a reminder of the need for clear and unambiguous reporting of the mineral assets that are the basis for the industry - Mineral Deposits. Estimates of the size and quality of mineral deposits are known as "Mineral Resources" and "Mineral Reserves".
"High quality reporting is particularly important for the mining industry because, unlike many other industries, knowledge of its fundamental assets is always imperfect", said CRIRSCO Co-Chairman, Pat Stephenson. "This is why mineral resources and mineral reserves are estimates, not precise
measurements. Given this imperfect but inevitable state of affairs, it is essential that the industry
communicates the risks associated with investment effectively and transparently in order to earn the
level of trust necessary to underpin its activities".
CRIRSCO (the Committee for Mineral Reserves International Reporting Standards), a committee of the
National Mineral Reserve Reporting Organisations of Australia, Canada, Chile, South Africa, USA, UK /
Ireland and Western Europe, is proud to contribute to the maintenance of this high quality of reporting by
launching the CRIRSCO International Reporting Template. The International Reporting Template, now
publicly available for the first time, may be freely downloaded from CRIRSCO’s new and improved web
site at www.crirsco.com.
The International Reporting Template is a document that draws on the best of the CRIRSCO-style
reporting standards, the JORC Code (Australasia), SAMREC Code (South Africa), Reporting Code (UK /
Ireland / Western Europe), CIM Definition Standards and Guidelines (Canada), SME Guide (USA) and
Certification Code (Chile). These reporting standards are recognised and adopted world-wide for marketrelated
reporting and financial investment. The International Reporting Template will, as a consequence,
be of great value to any country wishing to develop its own CRIRSCO-type reporting standard, as has
occurred in Chile and Peru and as is currently happening in the Philippines.
The template is also being used as the basis for discussions that CRIRSCO is having with international
organisations responsible for global harmonisation of accounting standards, as well as reporting in
associated industries such as oil and gas. These include the International Accounting Standards Board,
the United Nations Economic Commission for Europe and the Society of Petroleum Engineers.
"The International Reporting Template is not intended as an international reporting code per se, and will
not supersede the existing national reporting standards", said Mr Stephenson. "Rather it encapsulates
the content of these standards for the benefit of the international mining industry and its various
stakeholders. It will be a ‘living document’ that will be continuously updated and improved as new
national codes and guidelines are developed".
This first public issue of the CRIRSCO International Reporting Template is dedicated to Mr Norman
Miskelly OAM, who led the organisation enthusiastically and energetically from its inception until his
untimely death in 2005. Norman, a man of great personal charm and integrity, dedicated a large part of
his life to improving the standards of reporting by the mining industry, firstly within Australia (for which he
was awarded the Order of Australia Medal in 2002) and later on the international stage. He was highly
regarded by all his friends and colleagues and, while he is sadly missed, his legacy will live on.
(extracted from press release issued by CRIRSCO)
The JORC Code and International Accounting Standards
The International Accounting Standards Board (IASB) is in the process of developing a new financial reporting standard for the extractive industries, which include the mining industry. It is important that any such new international standard is compatible with JORC-style reporting standards, which are in common use throughout the world, and JORC has been staying in close contact with representatives of the IASB during the development process.
To assist it with the development of the financial reporting standard, the The IASB invited representatives of the minerals industry and the oil and gas industry to give presentations on existing reporting standards to its recent Board meeting held in London. Pat Stephenson, past-Chairman of JORC, presented on behalf of the minerals industry by video link from Melbourne, supported by Niall Weatherstone, member of the UK Ore Reserves Committee and of CRIRSCO, who was present at the meeting in London. Duncan Frost, member of the SPE Oil and Gas Reserves Committee, presented on behalf of the oil and gas industry.
A webcast of the meeting can be viewed at www.iasb.org/meetings/webcasts.asp The meeting was held on 19 April 2005, and was the first of several held that day by the IASB
A copy of the PowerPoint presentation on the minerals industry can be obtained by clicking here.
Recent Papers and Reports
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