In October 2018, the SEC adopted new disclosure rules for companies with material mining operations, which will replace the existing Industry Guide 7. The new rules are intended to bring the SEC's mining disclosure requirements closer in line with international standards, in particular the Committee for Mineral Reserves International Reporting Standards (CRIRSCO). SEC-registered mining companies (other than Canadian companies using Form 40-F) that have mining operations (including royalty companies) that are material to the company's business or financial condition will be subject to the new rules, which will take effect beginning with a company's first fiscal year beginning on or after 1 January 2021. Key changes from the SEC's existing rules for mining companies include:
- requiring that every disclosure of mineral resources, mineral reserves and material exploration results reported in a company's registration statements and periodic reports be based on, and accurately reflect, information and supporting documentation prepared by a "qualified person;" and
- requiring the disclosure of mineral resources (currently prohibited under SEC rules except in limited circumstances) in addition to mineral reserves.
Our related client publication is available here.
The SEC's final rule is available here.
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