On October 31, 2018, the SEC adopted the new Subpart 1300 of regulation S-K (“S-K 1300”) modernizing disclosure requirements for companies with material mining operations. The new rules implement extensive changes to the existing disclosure regime (i.e. “Industry Guide 7”) and is intended to align U.S. disclosure requirements more closely with current industry and global regulatory practices and standards.
The new disclosure rules apply to SEC filings by companies with mining operations (including holding royalties) that in the aggregate are “material” to their business or financial condition.
In broad terms, the new rules:
- Require disclosure of exploration results, mineral resources, and mineral reserves for all mining properties which are material, either in aggregate or individually, to the company’s business;
- Require disclosure of the above-mentioned exploration results, mineral resources, and mineral reserves to be based on supporting documentation (i.e. Initial Assessment or Pre-Feasibility Study) prepared by a “qualified person” named in the filing; and,
- Require the filing of technical report summaries prepared by a qualified person for properties that are individually material, which identify and summarize the information reviewed and conclusions reached by each qualified person about the company’s coal or mineral resources or coal and mineral reserves determined to be on each material property.
Companies will not be required to begin to comply with S-K 1300 until their first fiscal year (FY) beginning on or after January 1, 2021.
For a more complete understanding on S-K 1300, please visit our Guide to Understanding Regulation S-K 1300 Page.
John T. Boyd Company can assist in complying with these new rules.