SEC Overhauls Disclosure Requirements For Mining Companies

On October 31, 2018, the U.S. Securities and Exchange Commission (SEC) adopted a final rule (available here) that overhauls its existing disclosure requirements for mining company issuers, including royalty companies. The new disclosure requirements replace the SEC's existing Industry Guide 7 (Guide 7), which had not been updated in over 30 years.  The new rules are intended to harmonize the SEC's mining property disclosure requirements with current industry and global regulatory practices and standards, reflecting an acknowledgement of the significant globalization that has occurred in the industry since Guide 7 was adopted. Since then, a number of key mining jurisdictions outside the United States have adopted mining disclosure standards based on the Committee for Mineral Reserves International Reporting Standards (CRIRSCO), which differ in significant respects from Guide 7.