The Australian Securities Exchange (ASX) is looking at updating its disclosure rules for mining companies when reporting their mineral reserves and resources. As per the ASX the new rule will help make it easier for the mining companies to procure funding for projects in the pipeline.
Simon Bennison, chief executive of the Association of Mining and Exploration Companies, said it would be positive for the sector if the outcome was improved transparency and investor confidence. He also said that it was important for the changes not to add to costs for the companies. He hopes that it would be done in a way that did not overburden companies with more compliance.
As per an ASX paper, mining, oil and gas companies make up 32% of the total listed equity market capitalization on the exchange. The mining industry with 830 listed companies was the largest sector by number of companies.
The paper said that greater stakeholder interest in improving standards of public reporting of reserves, resources and exploration information and the evolution of reporting standards that had been witnessed globally over the last decade or so, was the main driver for examining the opportunities for enhancing disclosure by listed mining and oil and gas companies in this review.