The 2024 JORC Code update introduces significant changes to mining standards, addressing transparency, ESG integration, and global reporting practices. This Q&A format dives deep into these updates and their implications for the industry.

Q1: What is the JORC Code?

The JORC Code (Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves) is a globally recognized set of standards for public reporting in the mining and exploration industries. The 2024 update introduces key changes aimed at enhancing transparency, incorporating ESG considerations, and aligning with modern industry practices. It ensures that disclosures about mineral resources and reserves are consistent, transparent, and reliable, enabling stakeholders such as investors, regulators, and industry professionals to make informed decisions.

The Code was initially established by the Australasian Joint Ore Reserves Committee (JORC) and has been a cornerstone of the mining industry since its inception. It is widely aligned with the Committee for Mineral Reserves International Reporting Standards (CRIRSCO), ensuring global consistency.

The 2024 revision has brought significant updates to adapt to the rapidly evolving needs of the mining sector, emphasizing new standards that reflect industry advancements and global trends.

Q2: Why is the JORC Code being updated in 2024?

The last significant update to the JORC Code was in 2012, making the 2024 revision a crucial step to address over a decade of advancements and new challenges in the mining industry. Since then, the mining industry has evolved considerably, driven by technological advancements, increased demand for transparency, and growing emphasis on sustainability. The 2024 update aims to:

Enhance Transparency: Provide clearer and more detailed reporting for stakeholders.
Incorporate ESG (Environmental, Social, and Governance) Considerations: Reflect the growing importance of sustainable and responsible mining practices.
Align with Modern Practices: Update technical and professional requirements to match industry advancements.
Improve Usability: Separate mandatory reporting requirements from guidance notes, making the Code easier to understand and implement.
Align with Global Standards: Strengthen consistency with CRIRSCO’s international framework for mineral resource and reserve reporting.

The updated Code seeks to create a comprehensive framework that meets the demands of modern stakeholders while fostering global competitiveness in the mining industry.

Q3: What are the key changes in the 2024 JORC Code draft?

The draft includes several significant updates that address various aspects of mineral resource reporting:

Separation of Code and Guidance:
- The updated Code separates mandatory requirements (the Code) from explanatory guidance notes. This simplifies the document and ensures clarity for compliance.
Competent Person Criteria:
- Competent Persons (CPs) now require a minimum of five years of experience relevant to both the mineralization style and the specific activity being reported.
- A new “Specialist” role allows CPs to rely on experts for specific aspects of reporting, provided those experts meet the defined qualifications.
ESG Integration:
- Reporting must now include material ESG considerations at all project stages, reflecting the industry’s commitment to sustainability. This includes details on environmental risks, social impacts, and governance frameworks.
Risk and Opportunity Disclosure:
- A new section requires disclosure of risks and opportunities that could affect project outcomes. This ensures stakeholders have a comprehensive understanding of potential project challenges.
Reconciliation of Production vs. Estimates:
- Companies must reconcile actual production results with previously reported estimates. This improves accountability and provides greater confidence in public reports.
Alignment with CRIRSCO Standards:
- The updated Code aligns more closely with CRIRSCO templates, ensuring consistency across jurisdictions and facilitating international reporting.

Q4: How does the updated JORC Code address ESG concerns?

The integration of ESG factors is one of the most notable changes in the 2024 draft. Companies are now required to:

Disclose Material ESG Factors: Identify and report environmental, social, and governance risks and opportunities.
Incorporate ESG in Feasibility Studies: Ensure ESG considerations are factored into decision-making at all project stages.
Demonstrate Social License to Operate: Showcase how the project’s activities align with community expectations and ethical standards.

These changes reflect the growing emphasis on responsible mining practices and align with investor demand for sustainable project management.

Q5: What are the implications for Competent Persons (CPs)?

The new requirements for CPs emphasize professional accountability and collaboration. Key changes include:

Higher Qualification Standards: CPs must demonstrate at least five years of experience specific to the mineralization style and reporting activity.
Introduction of Specialists: CPs can rely on qualified specialists for complex aspects of reporting, such as geotechnical analysis or metallurgical studies.
Enhanced Documentation: CPs are required to provide detailed supporting documentation for all public reports, ensuring transparency and reliability.

These updates aim to enhance the credibility of resource and reserve estimates while fostering interdisciplinary collaboration. Companies must ensure their teams meet these rigorous standards to maintain compliance.

Q6: How does the 2024 JORC Code improve transparency for investors?

Transparency is a cornerstone of the updated Code. Key enhancements include:

Detailed Risk Disclosure: Investors gain insights into risks and opportunities associated with projects.
Reconciliation Requirements: Companies must align actual production data with reported estimates, providing confidence in project outcomes.
Mandatory ESG Reporting: The inclusion of ESG factors ensures investors can assess a project’s long-term viability and alignment with sustainable practices.

These changes empower investors to make well-informed decisions based on comprehensive and accurate information. Investors now have a clearer view of project sustainability and financial soundness.

Q7: When will the updated JORC Code take effect?

The draft JORC Code was released for public consultation in August 2024, with feedback accepted until October 31, 2024. The final version is expected to be published in 2025, and a proposed one-year transition period will give companies time to adapt to the new requirements.

Q8: What challenges might companies face during the transition?

While the updates are designed to improve reporting standards, companies may encounter challenges such as:

Compliance with ESG Requirements: Collecting and reporting material ESG data may require additional resources and expertise.
Training for Competent Persons: Ensuring CPs meet the new qualification and documentation standards could be time-intensive.
Adjusting Reporting Processes: Companies may need to update internal systems to align with the new reconciliation and risk disclosure requirements.

Proactive planning and engagement with industry experts can help companies navigate these challenges effectively. Training programs and early adoption strategies can ease the transition.

Q9: How does the updated JORC Code align with global standards?

The JORC Code now aligns more closely with the CRIRSCO template, which is the international benchmark for mineral resource and reserve reporting. This alignment facilitates:

Cross-Jurisdictional Reporting: Simplifies compliance for companies operating in multiple countries.
Global Consistency: Enhances comparability between projects reported under different standards.
Improved Credibility: Strengthens trust among international stakeholders.

By aligning with global standards, the JORC Code reinforces its relevance and fosters investor confidence worldwide.

Q10: How can companies prepare for the updated JORC Code?

Preparation is key to a smooth transition. Companies can take the following steps:

Review the Draft Code: Familiarize yourself with the proposed changes and provide feedback during the consultation period.
Train Your Team: Ensure Competent Persons and specialists understand the new requirements.
Enhance ESG Practices: Invest in processes to collect, analyze, and report ESG data.
Update Internal Systems: Align your reporting and reconciliation systems with the new standards.
Engage with Stakeholders: Collaborate with industry bodies, regulators, and investors to align expectations.

Q11: What are the long-term benefits of the 2024 JORC Code?

The updated JORC Code offers several long-term benefits:

Enhanced Trust: Transparent and reliable reporting fosters confidence among stakeholders.
Sustainable Practices: Integration of ESG factors ensures alignment with global sustainability goals.
Global Competitiveness: Alignment with international standards enhances the reputation of Australasian companies.
Improved Decision-Making: Comprehensive risk and opportunity disclosure supports more informed project assessments.

These benefits ensure that companies remain competitive and credible in the global mining market.

Conclusion

The 2024 JORC Code update represents a significant step forward in mineral resource and reserve reporting. By prioritizing transparency, sustainability, and global alignment, it ensures that the mining industry remains accountable and resilient in a rapidly evolving landscape. Companies should act now to understand the changes, prepare for compliance, and capitalize on the opportunities the updated Code offers.

Contact us for more information about how the JORC Code impacts your business and how we can assist you in aligning with the new standards.

Q&A: JORC Code 2024 – ESG Integration, Mining Standards, and Global Compliance