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SME files comments on SEC proposed rulemaking

By Heather Gravning posted 08-10-2016 12:43 PM

  

Advocates for solutions to antiquated mineral reserves reporting requirements

On August 4, the Society for Mining, Metallurgy & Exploration Inc. (SME) filed comments with the Securities and Exchange Commission (SEC) on their proposed rule, Modernization of Property Disclosures for Mining Registrants. SME recommends overhauls to the reporting requirements that will align U.S. resource and reserve reporting with those of the rest of the global mining community. The mission of the SEC is to protect investors and to maintain the integrity of the securities markets.

“The SME Resources and Reserves Committee has been working for more than a decade to encourage the SEC to update these standards,” said SME Executive Director David L. Kanagy. “SME would like to extend its appreciation to the Commission for the considerable progress which has been made on the proposed rules and looks forward to the opportunity for further discussion.”

SME supports the SEC’s effort to eliminate the existing Industry Guide 7 (IG7) disclosure guidelines and to replace it with disclosure and technical standards that are consistent with the globally accepted Committee for Reserves International Reporting Standards (CRIRSCO) reporting template which contains common definitions for public reporting of exploration results, mineral resources and mineral reserves. This template was incorporated in the United Nations Framework Classification as providing detailed definitions, rules and guidelines for potentially commercial and commercial mineral deposits.

In 2012 SME filed a petition for rulemaking with the SEC requesting the SEC update IG7 using the SME Guide for Reporting Exploration Results, Mineral Resources and Mineral Reserves as a model. The SME Guide emphasizes best practices based on transparency, materiality and competence. A copy of SME’s comments to the SEC, as well as the SME Guide, can be downloaded from www.smenet.org/publications-resources/resources/sme-guide-for-reporting.
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