Where is JORC going?

On Monday 27 April 2020, the Resources Engineering Department of Civil Engineering for Monash University held a zoom webinar with Steve Hunt on the Mineral Resources Reporting Codes. The delivery was in English, smooth, relaxed and informative. There was plenty of opportunity for discussion with the global audience, and Steve was generous with his time and responses.

The JORC Code:  The presentation introduced the JORC reporting Code, drawing heavily from the various sections within the Code. This included the purpose and principals of the Code, along with the nature of a Public Report. The Code is non-prescriptive, reflecting the individual nature of each deposit and associated mining program. The JORC Code sets minimum reporting standards, guidelines for reporting, applies standard classifications and terms, along with defining a Competent Person. The target of a JORC report is to give an element of consistency and confidence to the investing public. JORC reports are part of the Australian & New Zealand legal system for public reporting on exploration and mining projects, wherein the Competent Person or the Company may be held accountable.

Table 1 is designed to prompt on ensuring all technical aspects are covered. Discussion emphasized that more detail is required to be provided when introducing some new technology or “black box”, such that peer reviewers may adequately asses. It is not professionally acceptable to claim propriety / patents to hide the true working of some new feature. “Just trust me that this works” does not count.

CRISCO:  Steve opened the door on the international reporting code of CRISCO, of which JORC is a member. CRISCO now accounts for around 80% of all listed mining companies around the world. Once the USA joins, then this may go beyond 95%. There are different market rules in various countries, though the underlying Code definitions and signoff approach is common.

There was some discussion in that some poor quality JORC reports are prepared outside the Australia / New Zealand legal system for various international projects. The way forward seems to ensure compliance is through the professional associations ethics committees, though this can be a lengthy process. The JORC committee is aware of this international issue of understanding the JORC reporting Code, and are conducting on line JORC training modules (300 completed to date). They are preparing similar on line modules of JORC for non-technical people (expecting directors, bankers, CEO’s etc) to educate the public to understand such JORC reports.

What’s Next: JORC 2012 is scheduled to be reviewed and updated in 2020, but this process is delayed, wherein the outcome is now expected mid-2021. The review program includes 1) Public engagement process, 2) pre-engagement with ASIC (financial authority), 3) stakeholder feedback will run in mid-2020, and 4) code finalization during 2021.

Steve’s emerging focus areas for JORC review include:

·       Greater international alignment, including 1) impacts on climate change, 2) life of project impact assessments, 3) Scope 3 emissions – who are your customers and what is their environment record?

·       Tailings management & related emerging global codes.

·       Heightened expectations on social inclusion.

The changing reporting environment for the professionals includes:

·       The need for study managers to understand an ever-widening non-technical components that now impact on project viability, including community, social, environment, legislative activities. this webinar discussion looked at the option to move away from a single responsible sign-off study manager and towards a group responsibility, or perhaps move the final market sign off responsibility to the company directors.

·       Volatile mining laws are becoming a fact of life. This may lead the study manager to prefer the option of short term mine life reserves, where legal and other criteria are less likely to change the viability, and to later develop the remaining resources into reserves.

This discussion prompted me to recall a recent WIME webinar where the Sydney based Ms Friska ([email protected] ) spoke on mining professionals improving their verbal communication. This would seem to be part of the armoury of the new project geologist, who is now responsible to get various non-technical groups (community, anti-mining groups etc) to sign-off for project permits approvals – without which the JORC “Reserves” fall over.