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JORC Code Overhaul Tightens ESG Rules for ASX Mining Firms

Mining giants face a compliance shake-up as the JORC Code prioritizes sustainability. Will stricter ESG rules reshape how they report reserves and risks?

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JORC Code Overhaul Tightens ESG Rules for ASX Mining Firms

A major update to the JORC Code is underway, with stricter environmental, social, and governance (ESG) rules expected. The revised standards will likely align with global sustainability reporting frameworks. Mining companies listed on the ASX must comply with the Code, which governs how they report exploration results and mineral reserves.

The public will soon have a chance to comment on the changes, though no exact dates have been set for the consultation period.

The JORC Code sets professional standards for reporting exploration findings, mineral resources, and ore reserves. Its core principles—transparency, materiality, and competence—remain central to the review. However, the latest update places greater emphasis on ESG factors, particularly in the 'modifying factors' section, where companies must now disclose qualitative risks affecting mineral extraction.

A key change may involve expanding the role of the 'competent person' beyond traditional geology and metallurgy expertise. With ESG concerns growing, this individual could need broader skills to assess sustainability impacts. The revised Code might also align with the International Sustainability Standards Board's (ISSB) IFRS S1 and S2 frameworks, though no recent ISSB standards have been identified as direct models for these updates.

The Australian Government is separately introducing mandatory ESG reporting for businesses from 1 July 2024. Legal firm K&L Gates already advises mining clients on JORC compliance and wider ESG risk management. The public consultation on the revised Code is expected to last around 90 days, though an official timeline has not yet been confirmed.

The updated JORC Code will require ASX-listed miners to meet stricter ESG reporting standards. Companies must prepare for broader disclosures, including sustainability risks in their operations. Once finalised, the changes will reinforce transparency in mineral reporting while aligning with evolving global ESG expectations.

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