In pursuit of continuous improvement and keeping up with the times, the Australian Joint Ore Reserves Committee (JORC) has released the long-awaited draft JORC Code update. It has been 12 years since the last edition in 2012 and the current update has been a work in progress since 2020, attracting significant industry and stakeholder engagement.
The draft is currently open for public comment for three months, closing 31 October 2024, and can be found at: Draft JORC Code Survey.
With numbered paragraphs throughout plus the guidance notes being separated from the main Code document, the JORC Code is maturing into a more “legislative” feel with improved readability, navigation and ability to update guidance without requiring a full code update.
Of course, the update goes far beyond just structure and formatting changes. To name a few, ESG is rightfully getting a guernsey, Table 1 gets a major overhaul, Competent Person qualifications and their role are refined also with the addition of “Specialist” assistance, modifying factors are to be applied to the full project lifecycle (Exploration Target through to Ore Reserve) and the ASX & ASIC have provided input as it will directly impact listing rules.
A more detailed summary of the changes is available here: Draft JORC Code – Summary of Proposed Changes. The key focus areas of the update include:
- Structure and format
- Competence and Responsibility
- Reasonable Prospects
- ESG
- Risks: Opportunities and Threats
- Reconciliation
Once implemented, the new reporting requirements will no doubt carry an increased and ongoing administrative burden. This will be particularly heightened during the transition phase, as companies update existing JORC 2012 Resource and Reserve estimates to meet the new code.
The complete project lifecycle – Exploration Target through to Mineral Resources and then PFS/FS level for Ore Reserves – will be more technically and administratively involved than ever before. So further down the road, corporate/exploration strategies may also be influenced by the reporting requirements, particularly for smaller companies with limited in-house staff and funding. The cost/benefit analysis for delivering JORC Resource Estimates and feasibility studies may be more heavily scrutinised, which could lead to projects being deemed unworthy of further pursuit at an earlier stage.
Irrespective of opinion or perception of the pros and cons, improvements and possible lingering shortcomings, the updated JORC Code is set to come into effect in 2025. This will have far reaching impacts on the resources sector and investment community alike and while it will impact some more than others, it’s always important to be fully informed.
The chance to have your say is now, and this ends on 31 October 2024. It is worth noting that the online survey has the ability for respondents to provide general or detailed and specific feedback, depending on their knowledge, expertise and the relevance of the JORC Code to them.
While the update is comprehensive, the spirit of the Code remains unchanged. The ultimate focus of these changes is on improving the effectiveness of the Code and increasing confidence in the industry. The significant level of industry involvement and stakeholder engagement suggests this will be achieved.
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