JORC Code Shake-Up: ESG Changes Mining Professionals Must Know
Australia’s mining industry is undergoing a major transformation, with Environmental, Social, and Governance (ESG) practices becoming central to both operations and reporting.
This shift was the focus of the AMEC Forum on September 11, 2024, where proposed changes to the Joint Ore Reserves Committee (JORC) Code and its impact on the sector were discussed. I had the privilege of attending and presenting at this event, which gathered industry leaders and professionals from nearly 100 companies, including Fortescue Metals Group, De Grey Mining, and Chalice Mining. The JORC changes—especially the integration of ESG factors—are set to shape the future of mining in Australia, affecting both small explorers and large-scale operators.
For those unable to attend, here’s a brief overview of the insights we presented, with more detailed information available in our whitepaper.
1. ESG is entrenched in global capital markets and Australia is maturing fast
With mandatory climate reporting regulations starting in Australia in January 2025, the mining and resources industry is at a crucial turning point. This isn’t just a regulatory requirement; it reflects evolving investor and community expectations. Companies that fail to meet these standards risk being sidelined by sophisticated investors, who now integrate ESG factors into investment decisions.
Globally, 90%1 of wholesale and sophisticated investors now incorporate ESG into their investment process, and 92%2 of global GDP is tied to net-zero commitments. In Australia, 75%3 of ASX200 companies already voluntarily report on climate issues.
To stay competitive, mining companies must remain open to adopting proactive ESG strategies or risk reputational, regulatory, and financial consequences.
Sources: 1 Capital Group, 2024, 2 Next Zero Tracker, 3 ASIC
2. ESG reporting is required throughout the project lifecycle
The revised JORC Code proposes the introduction of mandatory ESG reporting across all stages of a mining project, from exploration to closure. This includes assessments on air quality, water management, biodiversity, climate risks, and workforce safety. This represents a major shift, requiring businesses to implement robust internal reporting frameworks to comply with these new expectations. In practice, this heightened scrutiny of ESG factors early in the project lifecycle could influence access to capital and key stakeholder support.
3. What’s required at each stage?
The draft JORC Code stipulates detailed climate reporting at every stage of a project.
- During exploration, companies must assess greenhouse gas emissions and consider renewable energy to reduce emissions intensity.
- In the mineral resource stage, the focus shifts to a more detailed analysis of emissions sources and physical climate risks, such as extreme weather events.
- By the ore reserve stage, companies must present strategies for decarbonisation, addressing both operational emissions and transition risks. This includes understanding energy use intensity and outlining plans to reduce carbon emissions throughout the project's life.
These requirements underscore the growing importance of addressing climate risks from the start, ensuring mining companies align with evolving regulatory and investor expectations.
Need to Find Out More?
The integration of ESG into the JORC Code represents a key moment for the mining industry to align its fundamental approach to the reporting of mineral assets with the local and global capital markets. The challenge of course is the change, which for certain segments of the market will be more difficult than others. At Automic Group, we prioritise an investor-focused approach to managing these compliance challenges, ensuring businesses operate responsibly while paving the way for sustainable impact.
Ready to meet the new JORC Code standards?
Download our whitepaper for a summary of insights and strategies on JORC Code and ESG compliance.
