JORC revision update from AusIMM – May 2023

JORC revision update from AusIMM – May 2023

In late 2022, JORC provided an update to stakeholders anticipating a Q1 2023 public review process in which the draft code would be posted for a 90-day period for comment and feedback.

At this time, review of the draft code and guidelines by ASX and ASIC is yet to complete, and as such the public review period has been delayed until the committee can review and consider the comments from the market operator and regulator.

The proposed 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. Given these proposed changes, significant review has been required to understand potential impacts to listing rules and corporate compliance.

We will be in contact immediately after we have comments to share and will, depending on the areas of concern raised, determine appropriate next steps.

FAQ’s

Why is there such a long delay?

The proposed code update expands into a range of new clauses covering Competent Persons, reasonable prospects, risk, reconciliation and ESG amongst other text and guidance reviews. The draft code also incorporates a changed structure with code and guidelines separation and table 1 format changes. Given these changes significant review has been required by ASX and ASIC to understand the potential impacts to listing rules and corporate compliance.

Will the public review period be shortened or cancelled?

No, once released for review there will be a 90 day review period, and a second draft circulated after comments are received and evaluated.

Is the Competent Person review process impacting or being impacted by the regulator review stage.

No, the Competent Persons review is continuing as a parallel engagement within the parent bodies, managed by the professional bodies joint task force. It is focussed on improving transparency of Competent Person competence.

How was the draft of the proposed update provided to the market operator and the regulator prepared?

As you will recall, JORC distributed a survey to which there were over 500 responses, from these responses the major areas of concern were derived. Working groups including Subject Matter Expert volunteers from outside the JORC then reviewed the issues and prepared recommendations which were consolidated and incorporated into the initial draft code.

Why are the views of the market operator and the regulator being sought before public consultation?

Since there are a number of significant changes proposed, inclusion of ESG and Risk for instance, it was seen as appropriate to ensure these were in accord with the market operator and the regulator views prior to full public consultation. There is also significant cross referencing with JORC and the ASX listing rules to be considered and managed within the drafting process requiring review.

Will the delay result in additional changes to the currently proposed Code content to align with Code updates being developed by other jurisdictions and organisations e.g., Canada, South Africa, CRIRSCO?

JORC engages with peer jurisdictions and organisations and we will seek to align with global regulatory requirements or guidance where appropriate.

https://www.jorc.org/code-update/#msdynttrid=NXanXd0Y3c5mgNWW-G2S-y5S6P8cDHbGmpWn2A3AUaQ