New mineral reporting code takes effect

November 5, 2021

1 1 minute read

By Revin Mikhael D. Ochave, Reporter

THE new version of the Philippine Mineral Reporting Code (PMRC) will take effect immediately after securing approval from the Securities and Exchange Commission (SEC), according to the Philippine Stock Exchange, Inc. (PSE).

The local bourse operator said in a memorandum dated Nov. 4 that the 2020 version of the PMRC aligns with current international mineral reporting standards.

With the approval from the SEC, the PSE has given a two-year transitory period starting Sept. 20, 2021 for listed companies to comply with the new reporting code.

Further, it told market participants that the use of both 2020 and 2007 version for mineral reporting is not allowed.

“Listed companies are given a two-year transitory period from Sept. 20, during which they shall have the option to continue abiding by the 2007 PMRC standards or shifting to the 2020 PMRC,” the PSE said.

“If, at any point during the transitory period, a company adopts the 2020 PMRC standards, it can no longer revert to the use of the 2007 PMRC standards,” it added.

According to the PSE, the 2020 PMRC was substantially modelled after the 2019 International Reporting Template of the Committee for Mineral Reserves International Reporting Standards (CRIRSCO) and the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves of the Australasian Joint Ore Reserves Committee (JORC).

To recall, the PMRC Committee initiated the review of the 2007 PMRC in February 2019 to make it more compliant with international reporting standards.

Sought for additional comment, PMRC Committee Chair Ciceron A. Angeles Jr. told BusinessWorld via mobile phone that the two-year transitory period is

needed since the 2020 PMRC is stricter than the previous reporting code.

Mr. Angeles said both public companies and accredited competent persons need time to adjust, including on the financial valuation or accounting of their mineral assets.

“[The 2020 PMRC] relies on the “if not, why not” principle. An example for the new PMRC is both sins of commission and omission can be penalized. This is compared to PMRC 2007 which only deals with sins of commission,” Mr. Angeles said.

Gerard H. Brimo, Chamber of Mines of the Philippines chairman, said in a mobile phone message that the 2020 PMRC is a welcome development for the minerals industry.

“The 2020 PMRC will make the Philippines at par with globally accepted minerals reporting standards. We expect the PMRC 2020 to advance the level of trust and confidence in our industry among investors and the financial community, which is hugely necessary to underpin our industry’s activities,” Mr. Brimo said.

“We also anticipate [that] the PSE’s prestige among both domestic and foreign investors will be enhanced as more mining and exploration companies will confidently list, expand, and raise potentially billions of dollars in the Philippines,” he added.

In the first half of 2021, data from the Mines and Geosciences Bureau showed that the country’s metallic mineral production value rose by 24.5% to P68.63 billion on the back of higher metal prices.