I wonder if the JORC code is losing relevance.

I recently downloaded an Australian mining companies’ public statement. This “mine extension – project overview” is an 87page document that does not include the term JORC, nor mention Competent Person. The only mention I could find for reserves are three similar statements to the effect “enable the extension of the Mine by up to nine years with sufficient coal reserves to approximately 2037”. The bulk of the public statement relates to Environment, Social and Governance (ESG) factors, and even these tend to reflect a base line study, rather than how such factors will relate to the mine operations. This would seem to be a reflection of the present public reporting trend in Australia and other countries, to bulk up on ESG and minimize reporting on the fundamentals of the business that relies upon reserves and mining. I wonder about the negative implications of such a reporting trend. Could this have been a contributing cause to the recent spectacular flop by Miner IGO in its nearly $1 billion write down of its merger and acquisition deal for the nickel play of Western Areas?

Since late 2019, the AusIMM and others spent considerable money and undertook much volunteer work to develop the revised draft JORC 2022/23 reporting code. The proposed draft code update expands into a range of new clauses covering Competent Persons, reasonable prospects, risk, reconciliation and ESG amongst other text and guidance modifications. The draft code also incorporates a changed structure with code and guidelines separation and table 1 format changes. The draft revised code was submitted by the AusIMM, AIG and MCA to the ASX and ASIC at the end of 2022 as part of the review process. As at mid July 2023, there is now 6 months of apparent silence from the ASX / ASIC. The JORC committee is also concerned by the lack of progress, but shall continue to engage in a constructive manner.

The Western Australian government seems to be following the trend set by the Indonesian government, to bypass such CRISCO reporting codes altogether, and implement their own codes for reporting exploration, resources, reserves and mining operations.

The identification of possible errors or omissions in public mineral reporting seems to be left up to the whims and random examination from the members of the AusIMM and such institutions. The reliability anticipated by many investors of the JORC reporting system would appear to be at risk. Public sentiment is growing amongst some professionals. Roland Gotthard recent LinkedIn post [ (1) Terrible, horrible, amateur, scams! | LinkedIn] touches upon the apparent disconnect between holding competent persons responsible under JORC reporting and the difficulties of holding directors to account over public statements.

Given the trend for;

·???????public reports to downplay such JORC reporting,

·???????the ASX & ASIC excessive dragging their heels on the JORC review process,

·???????the move by governments to establish their own mineral reporting programs

·???????the random nature of identifying and reporting potential JORC issues

·???????the speed of change, with the development of ChatGPT etc

Then I wonder if the JORC code is losing relevance. Perhaps it is time for the institutes of the AusIMM, AIG and MCA to become more proactive in “engaging the ASX & ASIC in a constructive manner”.?