SEC adopts new disclosure rules for mining companies11.07.18
The Securities and Exchange Commission (SEC) has adopted amendments to the property disclosure requirements for mining issuers and related guidance, under the Securities Act of 1933 (33) and the Securities Exchange Act of 1934 (34). The SEC made the changes in order to align the Commission’s disclosure requirements and policies for mining properties with current global mining industry regulatory practices and standards.
The amendments rescind SEC Industry Guide 7 and consolidate the disclosure requirements for issuers with material mining operations in a new subpart of Regulation S-K. Under the final rule amendments, consistent with global standards as embodied by the Committee for Mineral Reserves International Reporting Standards (CRIRSCO), an issuer with material mining operations must disclose specified information about both its mineral resources and reserves in its 33 and 34 filings. Previously, under Guide 7, non-reserve, resource information was only required to be disclosed in a limited set of circumstances.
The SEC’s amendments provide a two-year transition period so that issuers will not be required to comply with the new rules until their first fiscal year beginning on or after Jan. 1, 2021.