SEC updates property disclosure requirements for mining companies
KPMG reports on the implications of the SEC’s new property disclosure rules for mining companies. The new requirements will align mining property disclosures consistently with current global industry practice and guidelines.
SEC Release Nos. 33-10570; 34-84509; File No. S7-10-16
- Registrants engaged in mining operations
Effective for the fiscal years beginning on or after January 1, 2021.
The SEC has released guidance on voluntary compliance prior to effective date and completion of EDGAR reprograming made necessary by the new rules.
- Industry Guide 7 to be rescinded and new Subpart 1300 to Regulation S-K codifies the mining property disclosure requirements
- Updated definition of mineral reserves expands the previous Industry Guide 7 definition
- Mineral resources, and exploration results that are material to an investor, must be disclosed
- Introduces requirement that exploration results, mineral resources or mineral reserves be based on the work of a ‘qualified person’
- Requires summary disclosures of mining operations and individual properties that are material to the registrant’s business or financial condition, as well as filing of technical reports for material properties