The Role of the JORC committee
JORC is not a policing body and cannot deal with complaints of alleged non-compliance. Such complaints should be raised with the appropriate regulatory body. Details of how to raise a complaint are given below at the end of this section.
Whilst its responsibilities include the provision of general advice to interested parties on application and interpretation of the JORC Code, it cannot provide, and has not provided, specific advice to companies on their proposed public reports.
The following rather light hearted letter in response to an article in the Internet magazine "Miningnews.net", illustrates well the role of the Committee of JORC, in respect to policing compliance.
"JORC IS NOT A POLICEMAN"
Dear Dryblower,
As Chairman of JORC, I would like to thank you for again bringing the JORC Code to the attention of the mining public. It is important that all who prepare and make use of Mineral Resource and Ore Reserve reports in Australia are aware of the JORC Code and relevant stock exchange listing rules, and your articles often reach an audience that JORC, in its educational role, is less able to contact.
With respect, however, I must correct your statements to the effect that JORC has queried Terra Gold Mining regarding some of its public statements. I can assure you and your readers that JORC has not queried Terra Gold Mining (or any other company, for that matter).
To clarify our role, JORC (a volunteer committee of The Australasian Institute of Mining and Metallurgy, the Minerals Council of Australia and the Australian Institute of Geoscientists) prepares and maintains the JORC Code, and works with professional, industry and regulatory bodies to provide educational services with respect to the Code. JORC is not a policing body and does not query companies regarding their public reports.
In the case of Terra Gold Mining, I understand that it was the ASX that queried the company.
Thank you again for your very interesting articles. One of your previous pieces on the JORC Code ended with: "The code, and these are the final words from Dryblower, is there for a purpose. It creates a level playing field. People who ignore it are not playing by the rules ......". We couldn't have said it better.
Regards
Pat Stephenson
Chairman - JORC
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A Compliance Issue
Reporting "non-JORC
compliant" Resources and Reserves
The Australian Securities Exchange Ltd (ASX) has expressed concern at
recent instances of apparent non-compliance with the JORC code. The
description of a resource or reserve estimate as a "non-JORC
compliant" resource or reserve estimate is not acceptable to
ASX.
Whilst it acknowledges that there may be occasions when a company
believes it needs to provide a "non-JORC compliant" estimate under
the Corporations Act and/or Continuous Disclosure requirements of
the ASX Listing rules, this is only acceptable with the prior
approval of the ASX.
The ASX ruling on this matter has been detailed in the recent
"Companies Update No. 05/04", a copy of which
can be read by clicking here.
Guidance for those wishing to
report an alleged instance of
non-compliance with the JORC Code.
JORC is not a policing body and has no authority to
monitor compliance with the JORC Code. Responsibility for
monitoring compliance and for taking action, if required, rests
with the Australian Securities Exchange ("ASX"), which has incorporated
the JORC Code into its listing rules, and with The Australasian
Institute of Mining and Metallurgy ("The AusIMM") and Australian
Institute of Geoscientists ("AIG"), which both require compliance
with the JORC Code by their members. The procedure to be followed
when reporting an alleged instance of non-compliance with the Code
is summarised as follows:
- If the alleged non-compliance involves an incorrect
claim of membership of The AusIMM or AIG by a “Competent
Person” or reporting company, the AusIMM or AIG should be
notified together with the ASX.
- If the alleged non-compliance involves a claim of
inappropriate professional or ethical conduct by the Competent
Person, The AusIMM or AIG should be
notified.
- If the alleged non-compliance involves the reporting
company and does not involve a Competent Person, the ASX should be
notified.
In the case of companies listed on the Australian exchanges, the matter may be brought to the attention of the ASX, by logging on to
the ASX website complaints section. The ASX complaint form may be downloaded from the ASX website.
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