Forgot password?
 
  Search thousands of documents on OneMine - the online global mining and minerals library:
 
  Find the industry products
and services you need.
 
   
   
 
 

SME Petition  

SME Files Petition for Rulemaking with SEC over Mineral Reserve Reporting

On October 1, SME filed a petition for rulemaking with the Securities and Exchange Commission to amend Industry Guide 7, which contains the SEC’s basic disclosure policy for mining companies. SME and the mining industry have been working diligently with the SEC for over eight years to try to clarify and update Guide 7 to no avail. It is vital for the SEC to move forward in the near-term to realign the U.S. reporting regime for mining companies both for the protection of investors and removal of competitive harm to U.S. mining companies.

 

The SEC’s Guide 7 has become increasingly outdated and out-of-sync with mineral reporting and disclosure standards used in the rest of the world. U.S. mining companies and their investors have suffered as a result. SME’s petition demands the SEC address the following issues:

  1. Mining, as an increasingly international industry, has developed comprehensive, uniformly accepted and understood standards for the reporting of Exploration Results, Mineral Resources and Mineral Reserves. Guide 7 is substantially different from these standards and disadvantages U.S. mining companies in communicating with their investors and in coordinating disclosures in multiple jurisdictions.
  2. Mining companies and investors around the world consider Mineral Resource estimates as material and fundamental information about a company and its projects. Guide 7’s prohibition on the reporting of Mineral Resources as such in SEC reports limits the completeness and relevance of SEC reports for investors. The SEC’s practice of allowing Mineral Resource information in press releases and on websites, with no guidance or standards as to how Mineral Resource information should be reported, creates confusion and fails to ensure the quality and reliability of the information provided.
  3. Guide 7 discourages mining companies from listing in the U.S. This harms U.S. stock exchanges, financial markets and the overall economy. In the current environment, reforming Guide 7 would be a substantial step in supporting the U.S. mining industry and advancing economic growth and job creation in the U.S.

For more information, contact John Hayden at SME. 
 

 Click here to view the petition. 

 

 



 
© SME · PH: 303-948-4200 and 800-763-3132 · FAX: 303-973-3845
12999 E. Adam Aircraft Circle, Englewood, CO 80112 - Sitemap
SME is a member society of OneMine, the SME Foundation, and the
American Institute of Mining, Metallurgical, and Petroleum Engineers (AIME).