The Shenzhen Stock Exchange (SZSE) promulgated a mining-related memorandum today with the view to further specify formats and contents of information disclosure of mining industry rights by listed firms and to better protect investors¡¯ rights.
The memorandum enacted that listed firms should reveal mining-related risks and information when they acquire mining industry rights in board of director¡¯s resolutions and transaction reports. Qualifications for mining exploration and development are basic for listed firms to engage in this industry, which requires specified disclosure.
Listed firms should unveil ownership and limitations of exploitation rights, mining rights and other major intangible assets, resources reserves, and assessment situations. Listed firms need to disclose information on exploited area, mining area, reserves, resources quality and other elements regarding mining industry value, specific meaning of all terms and whether these firms are qualified for mining according to industry criterion.
Listed firms should also throw daylight on applying procedures, environment appraisal report, water supply license, pollution discharge license, safe production license, property ownership certificate, and other relevant qualifications as well as operation situation for the latest three years.
To be alert to risks from all aspects, the memorandum listed risks those firms should include such as price fluctuation of mine products, safe production risk and other possible risks.
Reasons, and effects of significant changes of mining-related incidents should also be revealed.