CSA proposes to modernize and streamline mining disclosure standards 

Canada’s securities administration is attempting to clarify, harmonize, and streamline Canada’s mining disclosure regime without introducing any new onerous requirements. They intend to update and enhance the standards for disclosing scientific and technical information about mineral projects, addressing evolving disclosure practices and policy considerations identified by CSA staff, and reflecting changing industry and investor expectations.

The Canadian Securities Administrators (CSA) has requested feedback on proposed amendments to National Instrument 43-101 Standards of Disclosure for Mineral Projects.

The CSA has initiated a sweeping effort to reform disclosure requirements in the mining sector by launching a consultation on proposed amendments. These reforms aim to reduce compliance costs for mining issuers while enhancing the quality of information available to investors. By addressing outdated definitions, simplifying disclosure requirements, and improving alignment with both industry and investor expectations, the CSA seeks to modernize regulations in line with international standards.

The proposed changes, which result from extensive feedback received during the 2022 consultation, emphasize regulatory certainty and risk assessment for issuers, potentially lowering the cost of capital and fostering capital formation.

For Ontario-based mining issuers alone, the Ontario Securities Commission estimates annual savings of $1 million to $1.7 million, despite initial transition costs ranging from $1.2 million to $2.6 million. With British Columbia regulating 70% of Canada’s mining issuers, the economic impact of these proposals could extend broadly across the sector.

Stan Magidson, CSA chair and chair and CEO of the Alberta Securities Commission, said: "Our goal is to provide investors with clear, reliable information about mineral projects so they can make informed decisions, without imposing an undue regulatory burden on mining issuers. By modernizing and streamlining the disclosure regime, we aim to maintain Canada's position as the global standard for mining disclosure."  

The proposed amendments to National Instrument 43-101 Standards of Disclosure for Mineral Projects aim to modernize and streamline certain requirements to align with current industry practices, while removing outdated definitions and replacing them with clarified guidance. Additionally, they seek to refine language to enhance the clarity of disclosure requirements and provide updated explanations for specific terms and standards.

The proposed amendments are being published for a 120-day comment period and are available on CSA member websites.

In April 2022, the CSA published CSA Consultation Paper 43-401 Consultation on National Instrument 43-101 Standards of Disclosure for Mineral Projects to inform this project. The CSA received feedback from a large number of market participants, which it has considered.

The CSA, the council of the securities regulators of Canada's provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets.

More information is posted on www.Securities-Administrators.ca.