Mining Regulation is in Place to Protect Investors and Companies
Mining is a complex and diverse industry that can be challenging for investors to understand. In this article, we discuss the regulations that help provide investors with standard information and transparency. To learn more about investing in mining companies, read our guide to investing in mining in British Columbia.
All investors looking to invest in mining companies need access to accurate information. To promote consistent reports and industry transparency, the Canadian Securities Administrators (CSA) have developed National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101 or the Instrument).
National Instrument 43-101
All Canadian mining companies (both public and private) disclosing scientific and technical information about a mineral project must adhere to NI 43-101. The Instrument ensures that companies disclose exploration information, mineral resources, mineral reserves, and mining (engineering) studies in a format that allows investors to compare companies and projects.
Disclosure of scientific or technical information may occur in: written statements including new releases, technical reports, and required regulatory documents.
You can find National Instrument 43-101 on the BC Securities Commission’s (BCSC) mining page.
Mining Technical Reports
Technical reports contain information about a company’s mineral projects. Form 43-101F1 helps ensure disclosed information is complete, accurate, and useful to investors.
There are two types of technical mining reports: early stage exploration property reports and advanced property reports. NI 43-101 contains specific requirements for the contents of each type of technical report and instructions on what information must be included.
All mining companies must file their technical report on SEDAR+, where they are publicly available .
Mining Experts Can Assist Investors
Always consult with a registered investment advisor before making an investment decision. Every investment has different risks you need to consider. An independent geologist, lawyer, or accountant may also be able to help you identify the risks of a mining investment.
Who Should You Contact if You’re Approached by an Unregistered Company or Individual?
If you’re contacted by someone wanting to raise money for a mining company, you should always:
- Do a background check to ensure it is a legitimate company and investment.
- Check to see if the person selling the investment is registered.
Report a Concern
If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Inquiries at 604-899-6854, 1-800-373-6393, or through email at [email protected]. You can also file a complaint or submit a tip anonymously using the BCSC’s online complaint form.