SEC Proposes Rules To Update Disclosure Requirements For Mining Registrants

On June 16, 2016, the Securities and Exchange Commission (the SEC) issued a press release proposing rules to modernize disclosures for mining properties (the "Proposed Rules"), currently set forth in Item 102 of Regulation S-K ("Item 102") under the Securities Act of 1933, as amended (the "Securities Act"), the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Industry Guide 7.¹ The proposals are intended to provide investors with more comprehensive information by aligning disclosure with industry and global regulatory standards similar to the Committee for Mineral Reserves International Reporting Standards ("CRIRSCO"), which have been widely adopted by several foreign countries and significantly differ from Industry Guide 7.² The SEC is also proposing to rescind Industry Guide 7—which has not been updated in 30 years, during which time mining has become an increasingly globalized industry and several foreign industries have adopted mining