The Securities and Exchange Commission has adopted amendments to modernize the property disclosure requirements for mining companies.
The amendments are intended to “provide investors with a more comprehensive understanding of a registrant’s mining properties.” The new requirements, according to the SEC, will more closely align disclosure requirements and policies “with current industry and global regulatory practices and standards.”
Under the final rules, a registrant with material mining operations must disclose specified information in its filings concerning its mineral resources, exploration results, and mineral reserves. Current Commission rules and guidance permit the disclosure of non-reserve estimates only in limited circumstances.
Requiring the disclosure of mineral resources in addition to mineral reserves “will provide investors with important information concerning the registrant’s operations and prospects,” the Commission says.
As proposed, the final rule amendments require a registrant to obtain a dated and signed technical report summary about the mineral resources or reserves on each material property. The technical report summary must be an exhibit to relevant Commission filings when there is a material change in the mineral reserves or resources from the previous technical report summary filed for the property.
In addition, the amendments rescind Industry Guide 7 and consolidate the disclosure requirements for registrants with material mining operations in a new sub-part of Regulation S-K.
The SEC will provide a two-year transition period. Registrants will not be required to begin to comply with the new rules until their first fiscal year beginning on or after Jan. 1, 2021.