The Association of Mining & Exploration Companies says increased focus on ESG credentials in the code governing mineral exploration reporting could further cloud a complicated process.
The Association of Mining & Exploration Companies says increased focus on ESG credentials in the code governing mineral exploration reporting could further cloud a complicated process.
The Joint Ore Reserve Committee (JORC) code sets the parameters for companies reporting mineral resources, ore reserves and exploration results, and is currently being updated for the first time since 2012.
A recently released draft of the updated JORC code released in August proposed new ESG parameters for explorers, among several changes.
Under the proposal, explorers would be required to disclose material ESG considerations “as appropriate to the study stage from exploration results to closure”.
Speaking at a JORC briefing event in Perth yesterday, AMEC director of Commonwealth policy Neil van Drunen said the code was not designed to factor in ESG.
“[The] JORC [code] is not the place for ESG regulations,” he said.
“We have a robust legislative framework and lively debate currently taking place right now in the Commonwealth parliament over [proposed] Nature Positive [reform].
“Adding ESG to [the] JORC [code] unnecessarily complicates it with highly subjective decision making.”
The proposed changes would require geological experts – defined by JORC as those with a minimum of five years working with a style of mineralisation or type of deposit present on the project – to consider ESG factors in their reporting.
“I’m not sure a competent person wants to weigh into such a complex area,” Mr van Drunen said.
“[The] JORC [code] is designed to be a specific snapshot at a specific moment in time.”
In a question-and-answer document provided to stakeholders with the release of the draft code, JORC said ESG elements were added to the code to give them equal prominence with other factors.
“The change reflects evolving societal and regulatory expectations with respect to progression of new projects through to development,” it wrote.
“ESG elements can only be included based on the maturity and materiality of the available data.
“There is not an expectation that ESG is progressed to final levels ahead of other key criteria.”
But the scale-up of ESG credentials in the reporting mechanism comes at a time of heightened awareness over barriers to business in Australia, including the contentious Nature Positive reform currently before the parliament.
Debate over the next tranche of Nature Positive was scheduled for federal parliament today but was pulled by the government last minute amid backlash from The Greens and business groups.
The Greens are pushing for a climate trigger, which would require projects to be assessed on potential for climate harm before they are approved.
Environment Minister Tanya Plibersek hit out at The Greens on a recent Perth visit for “letting perfect be the enemy of good” in relation to the laws but has not ruled out a trigger amendment.
Ms Plibersek previously drew the ire of AMEC when she ruled in favour of a section 10 appeal that blocked the proposed construction of a tailings dam by Regis Resources at its fully permitted McPhillamys gold project in NSW on the grounds of cultural heritage.
The miner said the decision would likely kill the project, despite the minister’s insistence that the tailings dam could be relocated.
Regis chief executive Jim Beyer is also AMEC president.
The to-and-fro over approvals follows on from a tumultuous period in Western Australia last year around the introduction and subsequent repeal of the ill-prepared Aboriginal Cultural Heritage Act 2021.
Critics of that legislation, largely farmers and pastoralists, argued it would significantly impede their ability to carry out basic tasks without consulting local traditional owner groups.
AMEC was in favour of the legislation in principle, but a number of larger miners are understood to have had privately held concerns about its impact on operations and exploration.
The Act was repealed within six weeks of coming into law, in favour of amendments to cultural heritage legislation from 1972.
Public consultation on the JORC code closes on October 31.
