Chamber of Mines welcomes PSE approval of ore reporting rules

Chamber of Mines president Benjamin Philip Romualdez welcomed the  approval last week by the Philippine Stock Exchange (PSE) of a Philippine Mineral Ore Reporting Code (PMORC).

The PMORC provides minimum standards for public reporting purposes by listed mining companies and those that are opting to go public.

The PMORC, Romualdez said, would make companies more cautious in reporting their findings on the ground. 

“This will lessen companies mining the stock instead of mining the ground,” he added.

The PMORC was drawn up by a group of professionals in the field of geology, mining and metallurgy headed by Dr. Rudy Obial.

The PMORC  was completed in November 2006 with the assistance of the Australian government whose own JORC has been an accepted standard for public reporting of ore reserves and resources.

The Philippine Mineral Industry Development Foundation, Inc., which managed the preparation of the reporting code, is now identifying professionals who will be authorized to assess the volume and value of mineral reserves.

The Mines and Geosciences Bureau (MGB), along with the Securities and Exchange Commission and the PSE took part in formulating the PMORC.

In an interview, MGB assistant director Edwin Domingo said local mining firms do not follow any standards in reporting their ore reserves, leading to some doubts about the veracity of the figures. He noted that the SEC has its own requirements, which the MGB does not have.

Thus, certain figures reported by the mining firms to the SEC and PSE may not have been verified by the MGB and could mislead investors. With the PMORC, Domingo said, the country would have a system that would follow international reporting standards which would enhance the confidence of investors in investing in listed mining firms.