Under Australian Corporations law, mining and oil and gas
companies both listed and unlisted are required to disclose
'not generally available information, that a reasonable
person would expect, if it were generally available, to have a
material effect on the price of securities in a
corporation'. The disclosed information however must not
In Queensland, coal and gas are the predominant commercial
energy forms. The sophistication of the technology used to locate
and extract coal and gas has advanced considerably over the past
decade and end-user markets are now predominantly offshore. As a
result of these and other advances the language used in these
sectors has become highly specialised and continues to evolve
The listing rules currently prescribe the JORC Code as the
standard for reporting ore reserves and mineral resources. The JORC
Code has been able to accommodate ore and minerals reporting in
Australia for many years. However JORC as a 'one rule for
all' mineral energy types is probably no longer elastic enough.
ASX suggests this in its Review Issues Paper: Reserves
and Resources Disclosure for Mining and Oil & Gas Companies
issued in October 2011. ASX's paper also
highlights that there is no comparable standard in the listing
rules for reporting oil & gas reserves and resources and
suggests the gas industry possibly report under the
'SPE-PRMS' system, which is already widely used.
In January 2012, ASIC announced its concern that disclosing
exploration information 'inferred mineral
resources' under the JORC Code might be misleading in the
context of the commercial future of a resource company seeking
funding, in particular by way of an investor capital raising. ASIC
says the resource is still too uncertain to provide reasonable
grounds for a production target estimate or statement implying
Probably at the least ASX will change the way mining companies
report exploration reserves but it remains to be seen the extent to
which more prescriptive standards for reporting mineral and oil and
gas resources will creep into Australia's listing rules.
It is a common misconception that the grant of mining tenure, whether it be an Exploration Permit, Mineral Development Licence or Mining Lease, will entitle the holder to access all land within it in order to explore or mine.
This briefing note sets out a likely structure for the proposed privatisation of the networks and identifies key issues.
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