New Body (MRA) to support minerals reporting compliance
Introduction
This article only touches upon the broad and complex topic of the JORC code for technical reporting of the minerals, coal & rock industries.
CRIRSCO (Committee for Mineral Reserves International Reporting Standards) is a group of organizations that are responsible for developing mineral reporting codes and guidelines in Australasia (JORC), Brazil (CBRR), Canada (CIM), Chile (National Committee), Colombia (CCRR), Europe (PERC), India (NACRI), Indonesia (KOMBERS | KCMI), Kazakhstan (KAZRC), Mongolia (MPIGM), Philippines (PMARC), Russia (OERN), South Africa (SAMREC), Turkey (UMREK) and the USA (SME).
The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) has been adopted by The Australasian Institute of Mining and Metallurgy (The AusIMM) and the Australian Institute of Geoscientists (AIG) and is binding on members of those organisations. The Code is endorsed by the Minerals Council of Australia (MCA) and the Financial Services Institute of Australasia (ASIC) as a contribution to good practice. The Code has also been adopted by and included in the listing rules of the Australian Securities Exchange (ASX) and the New Zealand Stock Exchange (NZX). See; https://www.jorc.org/docs/JORC_code_2012.pdf The JORC code is also accepted by a number of other countries stock exchanges, and professional bodies. Note that the ASX and other stock exchanges are for-profit companies, and are not regulators. Reporting JORC code compliance is one tool often sought by corporate financiers, private investors and others outside the stock exchange system of raising funds, or monitoring investments in the mining industry. These reports for private / corporate funding are generally subjected to a Non-Disclosure Agreement (NDA) or legal privilege, wherein they typically can-not enter the professional complaints process. There are some long standing fundamental concerns around directors reporting responsibilities, and some parties note there are some loopholes in the ASX reporting system for consent etc.
AusIMM &AIG members working in the resources industry are obliged to uphold two professional codes, The JORC Code and The VALMIN Code. AusIMM & AIG also endorses representatives to hold positions on key resources Standards Australia Committees. Allegations of AusIMM or AIG members failing to properly apply the JORC Code are investigated and assessed under the complaints process. See the AusIMM Professional Conduct Regulations. https://www.ausimm.com/globalassets/about-us/compliance-guide.pdf
The JORC code 2012 is being updated. The JORC committee released the draft JORC Code in August 2024 as part of the three-month public consultation period, closing on 31st October 2024. Over 8,200 comments were received across the draft Code, Table 1 and guidance notes. A summary of feedback is to be released be released after March 2025. The JORC committee is also continuing to actively engage with the market operator (ASX) and regulator (ASIC) on specific matters raised through the consultation period. The target release for an updated JORC Code remains by the end of 2025.
Compliance
In 2024 the JORC Committee Chairs undertook a review of the Professional Conduct Regulations, leading to a revision of the regulations. See; https://www.ausimm.com/about-us/governance/code-of-ethics-and-professional-conduct-regulations/ AusIMM 2024 compliance report 2024 (23 March 2025) recorded six complaints (5 related to breach of the JORC code) were submitted to end December and all were dealt with by the Professional Conduct Committee: The compliance process involves adjudication by peers and is designed to ensure that members are responsible for their conduct in breach of the Code. Any member of the AusIMM or AIG community may submit a complaint. Given the thousands of compliance reports issued each year, this tiny number (6) of complaints investigated by the AusIMM suggests an underlying weakness in the system. Issues about the system are numerous and complex, with typical examples that include; Members unwilling to accuse fellow members, members not systematically reviewing all public reports, accusing members fear of being sued by those accused of non-compliant reporting, long period to resolve a reported case, confidentiality around such cases etc.
The ASX has at least three (3) Compliance Staff and a couple of technical advisors that work for the ASX. The technical advisors, include a staff Geologist, likely a staff or contract Mining Engineer, likely a contract Metallurgist also. The technical professionals work more across IPO’s and reviewing ASX Releases (pre-market loading of and post release significant movements in share price). Apparently the ASX occasionally, in specific forums disclose information on such compliance activity.
A less formal, and private, compliance review is undertaken by Ronald Gotthard on his LinkedIn posts (2024) under the banner of #JORCWTF. See; hashtag#JORCWTF He briefly outlines technical comments on ASX disclosures and their deficiencies, the various foibles and omissions. This takes the “name & shame” approach.
You Tube carries a number of great commentaries and educational podcasts on the workings of JORC & good reporting for the exploration, mining and metallurgy industries. One example is Rene Sterk who started a series (2018) of podcasts with “JORC Police” https://www.youtube.com/watch?v=Zu_Wex9BloU and has continued with other You Tube podcasts.
There are numerous technical papers, and books, such as “Cracking the competency code” by Jacqui Coombes that provides a comprehensive framework describing what Competency entails, how to assess it, and how to develop it. Jacqui’s book includes about 50 legal Case Studies describing how courts have interpreted legal concepts, and a comprehensive look at markets, investors, and relevance to attain "Competency.”
New Compliance body
The Minerals Reporting Australia LTD (MRA) is a not-for-profit, member-based organisation committed to advancing the standards, competency, and transparency of public reporting in the minerals industry. See their website. https://lnkd.in/g6Pm3GmT MRA exists to help ensure reporting decisions are made with clarity, competence, and consequence in mind. Minerals Reporting Australia was founded by a small group of experienced professionals who saw a gap: Competency in public reporting was too often assumed, untested, and unsupported.