PSE draws up code to aid mining firms raise funds

The Philippine Stock Exchange (PSE) is drawing up a Philippine Mineral Reporting Code, to be patterned after Australia’s Joint Ore Reserve Committee (JORC) Code, in line with efforts to help more mining companies raise capital through the stock market.

The JORC Code, considered an internationally accepted standard in the mining industry, sets out the minimum requirements, recommendations and guidelines for public reporting of exploration results, mineral resources and ore reserves.

PSE president Francis Lim said the proposed PMRC will elevate the exchange’s mining rules to global standards.

He said the Australian Agency for International Development is supporting the shift to JORC with a technical assistance.

Once the PMRC is formally adopted, the government, through the Board of Investments, will conduct roadshows to inform the public of the adoption of the new code.

Lim said Australian mining experts will visit Manila on July 20 and 21 to hold a comprehensive orientation seminar about the JORC Code. Also attending the seminar are the Philippine Mineral Development Institute Foundation, Chamber of Mines, Mines and Geosciences Bureau, Philippine Australian Business Council and the BOI.

Other topics to be discussed during the two-day workshop include an overview of the JORC Code; guidelines in reporting exploration results, ore reserves and resources; and auditing, review and appraisal of exploration reports, mineral resources and reserve estimates.

The adoption of the JORC Code is also in line with the government’s policy to revitalize the mining industry.

Among the requirements for mining companies intending to list shares at the stock market are:

• Certification from the Mines and Geosciences Bureau (MGB) attesting that its mineral claims or rights as of the date of application are still valid;

• Geological report in mineral resource and reserve prepared and signed by a geologist or mining engineer duly licensed and duly accredited by the Professional Regulatory Commission (PRC) and jointly validated by the MGB director;

• Certified true copies of exploration permits and mineral agreements;

• An MGB-approved exploration/construction/utilization work program prepared and signed by a licensed mining engineer, geologist or metallurgical engineer;

• Proof of quality of management and of technical competence, showing bio-data of key management and technical personnel and;

• Proof of adequate working capital to carry on the approved work program and appropriateness of capital structure.

Lim said it is necessary for both government and the private sector to step up efforts to rejuvenate the mining industry because of its great potential to help boost the country’s economy.

He added now is the best time for mining companies to get into the stock market, given the industry’s impressive turnaround following the ruling of the Supreme Court, which opens up the industry to 100 percent foreign ownership.

The PSE’s mining and oil index emerged as the best performing sector in the first five months of the year, growing 61.75 percent to 4,483.255 in May from only 2,771.77 at the end of 2005.