The new JORC Code – what it will mean for mining companies

30th August, 2024

Earlier this month the Joint Ore Reserves Committee (JORC) released a public consultation draft of the new version of its eponymous Code, intended to be introduced in 2025 to replace the current 2012 Edition.

The JORC Code regulates reporting of key mining project metrics such as Exploration Targets, Exploration Results, Mineral Resources and Ore Reserves and is mandatory for ASX-listed resources companies. The definition of “Public Reports” in that regard is very broad and has been further expanded slightly in the new Code to recognise the increased use by companies in recent times of social media posts, podcasts and video (in addition to covering things such as media releases, information memoranda, technical papers, public presentations and, of course, ASX announcements generally).

So, what’s changing?

Well, the “look and feel” of the Code has been overhauled to make it more organised (including via greater use of section numbering and heading conventions etc). Further, whereas the 2012 Edition contains explanatory notes within the document in various sections, these will now be extracted into standalone guidance notes (much like their ASX equivalents), which in turn can evolve and be updated without the need to amend the Code itself.

In terms of operative changes, whilst there are several, the following four are probably the most significant:

  • Competent Persons: CPs will now need to publicly demonstrate their experience, familiarity with the JORC Code and current membership of a relevant technical organisation. This includes uploading a “CV of record” in relation to their expertise and confirming that they have completed an induction course in relation to the new Code. The new draft also introduces the concept of a “Specialist” role to assist with CP skills coverage – where a CP does not have the necessary specialist expertise on required content for the Public Report, they may rely on information provided by an appropriate Specialist. However, the CP will still retain overriding responsibility and must, for example:
    • critically review the Specialist’s documentation and consider whether the Specialist has used assumptions and methodologies that appear to be reasonable and has drawn on source data that appears to be appropriate in the circumstances; and
    • have reasonable grounds for believing the Specialist’s documentation is not false or misleading (and ensure it is reported in a way that will not be misleading or deceptive).
  •  The Specialist’s contribution to the relevant Public Report will need to be recognised and, much like the CP, they will need to consent (in a prescribed form) as to the form, and context in which their information appears.
  • Risk reporting: Public Reports will now need to specifically comment on material risks (opportunities and threats) relevant to the technical matters being reported upon (such as Exploration Targets, Exploration Results, Mineral Resources, Ore Reserves, or the outcomes of technical studies). A new section 5 of the Code has been inserted to deal with this concept. Specifically, under the new Code the Public Report must include sufficient context and cautionary language to allow a reasonable investor to understand the nature, importance, and limitations of the data, interpretations, material risks (both opportunities and threats) and conclusions in the Public Report. This commentary must be provided by the CP within their technical summary as appropriate.
  • Greater emphasis on Modifying Factors and ESG: Under the 2012 Edition, the “Modifying Factors” are described as considerations used to convert Mineral Resources to Ore Reserves (which include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors). However, under the new Code the role of the Modifying Factors is being broadened, such that they are now “considerations used to assess and estimate Exploration Targets, Mineral Resources and/or Ore Reserves”. An increased focus on Environmental, Social and Governance (ESG) considerations will also see specific ESG reporting criteria being included, which need to be given equal prominence alongside other Modifying Factors.
  • RPEE: Under the 2012 Edition, in order to qualify as a Mineral Resource, regardless of category, there need to be “reasonable prospects for eventual economic extraction” (ie more likely than not). Whilst that term implied an assessment, albeit preliminary, by the CP in respect of all matters likely to influence the prospect of economic extraction (including the approximate mining parameters), there was no specific need to consider the Modifying Factors in that assessment. However, as indicated above, this will change with the new Code. In addition, the word “eventual” has been dropped from the RPEE requirement, such that resources will need to have reasonable prospects for economic extraction, by reference to the Modifying Factors, in order to be capable of being declared as Mineral Resources under the Code.

MPH has more than 30 years’ experience in advising companies, both listed and unlisted, in the local and international mining and resources sector and accordingly would be pleased to assist with any queries you may have regarding the JORC Code, its implications on your operations and associated Public Reporting obligations. Please contact Mark Burchnall or Paul Cavanagh by email to mburchnall@mphlawyers.com.au or pcavanagh@mphlawyers.com.au or on (08) 9221 0033.

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