One of the mining and petroleum industry’s key regulatory documents, the VALMIN Code, is under review for the first time since 2005. An Exposure Draft has been released for comment.
The VALMIN Code sets out how independent expert reports should be prepared when it comes to the technical assessment and valuation of mineral and petroleum assets.
The review takes into account industry changes which have occurred since 2005, including an updated JORC Code in 2012, and regulatory changes in Australia by ASX and ASIC. It aims to improve the alignment and consistency between the Code and industry, financial and reporting standards, both domestic and international, including improved alignment with international minerals valuation codes. The intent is that the VALMIN Code should be a companion document to JORC Code 2012 and Chapter 5 of the ASX Listing Rules and be cross referenced to ASIC Regulatory Guides.
The core purpose and principles of VALMIN, being competence, transparency and materiality, remain unchanged. The principle of independence remains however the Code now defers to the ASIC Regulatory Guides and the Listing Rules to specify when this is required. The principle of reasonableness has been given greater prominence and clarity in line with ASIC’s focus.
The key changes may be summarized as:
- Improved structure and clarity
- Improved alignment and consistency with industry, financial and reporting standards
- New clarity about VALMIN Practitioners and the required qualifications and experience of each, with differentiation between technical and valuation reports
- More guidance on valuation approaches and methodologies
- Requirement for greater transparency, including mandatory disclosure of fees
All comments received by 17 July 2015 will be considered following which the VALMIN Committee will work with parent bodies, ASX and ASIC to finalise the document. Submissions may be made via the VALMIN website: http://www.valmin.org/draft_2015.asp.
The target release date for the revised Code is the end of 2015 and we will make a further news alert on release. Please contact us if you require more information in the interim.