The 2003 JORC Code ù How are Competent Persons and Public Companies Affected?

The JORC Code, which has been in existence as a Code incorporated in the listing rules of the Australian Stock Exchange and New Zealand Stock Exchange since 1989 and 1992 respectively, has been revised and will be re-released in 2003. This revision followed a call for submissions in December 2001, the publication of an exposure draft in late-2002 and an exposure period during which a large number of constructive comments were received. These comments were reviewed and a further exposure draft released as part of the current exposure draft of the ASX listing rules. It is anticipated that the final Code will be incorporated into the stock exchanges listing rules in late-2003. The 1999 JORC Code has been the standard on which other reporting Codes have been based, each of which has contained refinements. Three in particular, the Reporting Code from the United Kingdom/Ireland/Western Europe, the new Canadian Reporting standards and the SAMREC Code from South Africa, influenced JORC in the preparation of the 2003 JORC Code. Whilst there are differences between the 1999 Code and the 2003 Code, these changes are mainly in the guidelines. The Code definitions, which are largely in accord with agreed international definitions, remain substantially unchanged. The two main changes in the 2003 Code are the requirement for a Competent Person to be responsible for the documentation relating to the reporting of Exploration Results, and the introduction of æRecognised Overseas Professional OrganisationsÆ as overseas organisations to which Competent Persons may belong. Other changes include: clarification of the reporting of exploration targets or potential; the rearrangement of the diamond reporting clauses; the introduction of guidelines for the reporting of Industrial Minerals; modification of the coal clauses and recognition of the new Coal Guidelines; and the introduction of a guideline encouraging the discussion of relative accuracy and confidence in resource/reserve estimates. Other lesser changes to the Code are listed and discussed briefly. The release of the 2003 JORC Code maintains the standard set by JORC as a world leader in the development of mineral reporting Codes and their adoption by industry.