Cudeco Controversy Highlights The Importance Of Adhering To Mining Codes

The Age

Wednesday July 19, 2006

Don Larkin, CEO, AusIMM

AS ONE of the parent bodies of the Joint Ore Reserves Committee Code, the Australasian Institute of Mining and Metallurgy is deeply interested in promoting understanding among downstream users of the code.

The article (Business, 18/7) by Stephen Bartholomeusz, which gave credit to the ASX for its nine-day suspension of CuDeco and the investigation that ensued, was a welcome and reasonable overview of the operation of the code as a safeguard against misinformation. As stated in the article, the ASX is entitled to rely on the accuracy of company announcements about ore resources and reserves, based on the professionalism of the "competent person" who must be a member of either AusIMM or the Australian Institute of Geoscientists.

Where a report that is not in accordance with the JORC code is brought to the ASX's notice, it will act to ensure further and appropriate disclosure. Meanwhile, the professional bodies are responsible for maintaining the ethical standards of "competent persons". They will act on complaints through their ethics process to deter future misbehaviour.

The controversy should reassure investors that the parent bodies of the code, including the ASX, are committed to its integrity and effective operation. The ASX has recognised the need for additional resources around monitoring of mining reports, and has worked closely with the JORC and AusIMM on a program of education for users of the code.

Ultimately, though, the best protection for any investor is to be well informed, and we encourage investors to read the code. . -- Don Larkin, CEO, AusIMM

LINK

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© 2006 The Age

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