SEC Proposes Revamp of its Mining Company Disclosure Requirements

On June 16, 2016, the US Securities and Exchange Commission (“SEC”) issued a proposed rule, which, if adopted, would amend disclosure requirements for mining company issuers. The key changes proposed for mining companies are: (1) requiring the disclosure of mineral resources in certain circumstances (currently generally prohibited), (2) requiring that mineral reserves and resources disclosures and material exploration results reported in registration statements and reports filed with the SEC be based on, and accurately reflect, information and supporting documentation prepared by a “qualified person,” and (3) providing one standard requiring companies to disclose mining operations that are material to the company’s business or financial condition and formalizing guidance that mining operations constituting 10% or more of a company’s total assets are presumed material.