The Joint Ore Reserves Committee (JORC) is currently updating the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, more commonly known as the JORC Code (Code). The current version of the Code was released in 2012, so an update is well overdue. A consultation draft of the updated Code (Consultation Draft) was released on 1 August 2024.
The updates aim to align the Code with current industry practices and stakeholder expectations by enhancing transparency, incorporating Environmental, Social and Governance (ESG) considerations and improving the reporting of exploration results, mineral resources and ore reserves. The updates have been the subject of an extended period of consultation due to the number of stakeholders, including ASX, ASIC and the Australian Institute of Mining and Metallurgy, as well as exploration and mining companies.
The key changes to the Code proposed in the Consultation Draft include:
Structure and format: The Code adopts a more legislative style with headings and numbered paragraphs for improved readability and navigation. Guidance elements have been separated from the Code into new ‘guidance notes’, so JORC can update guidance without releasing a full Code update. The structure and defined terms have also been aligned with the latest CRIRSCO (Committee for Mineral Reserves International Reporting Standard) Template.
Competency and responsibility: Competent Persons must now submit a dated CV of Record, provide a record of induction into the current version of the Code and declare their current membership of a Professional Organisation or Recognised Professional Organisation before acting as a Competent Person. Competent Persons must also have ‘experience relevant to’ (previously ‘relevant experience in’) the activity which the Competent Person is undertaking. Competent Persons may also now rely on technical ‘specialists’.
Reasonable prospects: An improved threshold for disclosure on reasonable prospects with the removal of ‘eventual’ from ‘reasonable prospects for eventual economic extraction’ (that is to just ‘reasonable prospects for economic extraction’). Aside from the ESG overlay noted below, this is probably the most substantive change proposed.
Expanded reporting requirements: An expansion to the requirements for public reporting, with an overhauled Table 1 and the requirement for modifying factors to be applied to the full project lifecycle from exploration target through to the reserves and study stage.
ESG considerations: Several ESG related updates, including the requirement for the Table 1 to address ESG issues and for material ESG considerations (including opportunities and threats) to be disclosed ‘as appropriate’.
While the updates to the Code provide welcome clarity and added transparency and make the Code easier to navigate, the extra reporting requirements are likely to bring increased costs and an added administrative burden for mining and exploration companies, and at an earlier stage in a project’s life cycle. The strengthened approach to the ‘reasonable prospects’ threshold may force companies to assess the viability of projects earlier than under the current Code.
JORC has proposed a transition phase (of 12 months) before reporting under the new Code becomes mandatory to allow companies to update existing JORC 2012 resource and reserve estimates to meet the new Code requirements.
Feedback on the Consultation Draft has now closed with the new Code targeted to be released in 2025.