JORC Compliance for ASX-Listed Mining Companies

The JORC Code is the foundation of resource reporting for ASX-listed mining and exploration companies. It governs how exploration results, mineral resources and ore reserves are publicly reported, and it underpins investor confidence in the Australian resources sector. Non-compliance is a regulatory issue: it can lead to ASX enforcement action, class actions, and reputational damage that long outlasts the announcement.

What the JORC Code does

The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) sets minimum standards for public reporting by mining and exploration companies. It is incorporated into the ASX Listing Rules and is therefore mandatory for ASX-listed entities.

The JORC Code is principles-based rather than prescriptive. It defines:

• The categories of exploration results, mineral resources, and ore reserves
• The minimum standards of detail and supporting information required for each category
• The role and obligations of the Competent Person who takes responsibility for the report
• The transparency, materiality, and competence principles that underpin all reporting

The Competent Person

At the heart of JORC compliance is the Competent Person. Any public report of exploration results, mineral resources, or ore reserves must be prepared by, or under the supervision of, a Competent Person, and that person must consent to the inclusion of their statements in the report.

A Competent Person must be a member of a Recognised Professional Organisation (such as the Australasian Institute of Mining and Metallurgy) and must have a minimum of five years of relevant experience for the type of mineralisation and deposit under consideration.

The Competent Person must take responsibility for the technical content of the report. This is not a rubber-stamp role: the Competent Person makes substantive judgements about classification, estimation methodology, and disclosure.

Reporting categories

The JORC Code distinguishes between:

Exploration results. Data and information generated by mineral exploration programmes, including assays, geological observations, and geophysical results.

Mineral resources. A concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for eventual economic extraction. Classified as Inferred, Indicated, or Measured in increasing order of geological confidence.

Ore reserves. The economically mineable part of a Measured or Indicated Mineral Resource. Classified as Probable or Proved.

The distinctions matter. A company that publicly reports an "Ore Reserve" without satisfying the Code's requirements for a Modifying Factors study is in breach of the Code, even if the underlying resource estimate is robust.

Disclosure requirements

The JORC Code requires that public reports include the Table 1 information for exploration results, mineral resources, or ore reserves. Table 1 is an extensive checklist of disclosure items covering sampling techniques, drilling techniques, sample preparation and assay procedures, location of data points, data spacing, geological interpretation, and many other matters.

Public reports must also include the Competent Person's consent statement.

Material information must be reported in a transparent way, and reports must not be selective or misleading. The principle of materiality is particularly important: a report that omits material adverse information may be in breach of the Code even if the included information is accurate.

Common compliance failures

Inadequate Table 1 disclosure. Many ASX announcements include Table 1 but treat it as a tick-box exercise rather than substantive disclosure. Where Table 1 items are not adequately addressed, ASX may query the disclosure.

Overstating resource confidence. Reporting Inferred Resources without making clear the limited geological confidence and explicitly noting that there is no certainty of upgrading to higher confidence categories. Inferred Resources cannot be reported as the basis of economic studies.

Exploration target overreach. The Code permits reporting of exploration targets in specific terms (with stated ranges of tonnes and grade), but only with clear disclosure that the potential quantity and grade is conceptual and that there has been insufficient exploration to estimate a Mineral Resource. Companies sometimes report targets in language that implies more confidence than is warranted.

Missing Competent Person consent. The Competent Person's consent must be obtained for each public report. Failure to do so is a clear breach.

Inadequate technical information for production targets. Production targets and forecast financial information are subject to additional and more rigorous disclosure requirements. Reporting a production target without satisfying these requirements is a common source of regulatory issue.

Regulatory consequences

ASX has broad powers to enforce JORC compliance. Common interventions include:

• Trading halts pending clarification of disclosures
• Requirements to issue corrective announcements
• Public censure and listing rule enforcement
• Suspension or de-listing in extreme cases

Beyond ASX enforcement, non-compliant disclosure can give rise to claims under the misleading or deceptive conduct provisions of the Corporations Act and the Australian Consumer Law, and class actions by investors who suffered loss.

Building a compliance framework

Listed mining companies should have a clear JORC compliance framework, including:

• A documented process for engaging Competent Persons
• Internal review and approval procedures for public reports
• Training for management and board on JORC requirements
• A document retention framework for the supporting technical data
• Regular external audits or peer reviews of resource and reserve estimates

The bottom line

JORC compliance is not optional, and it is not purely technical. It sits at the intersection of geology, corporate governance, and regulatory disclosure. We advise listed and pre-listing resources clients on the legal aspects of JORC reporting, including how to structure technical disclosure, manage Competent Person engagements, and address ASX queries.

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