A new applicant Mineral Company must be able to demonstrate that it has the right to actively participate in the exploration for and/or extraction of resources either through:

• Control over a majority (by value) of the assets in which it has invested together with adequate rights over the exploration for and/or extraction of resources.
•  Adequate rights arising under arrangements acceptable to HKEx, which give it sufficient influence in decisions over the exploration for and/or extraction of the resources. Arrangements which may be acceptable include joint ventures, production sharing contracts or specific government mandates.

HKEx requires listing documents for Mineral Companies to include a competent person’s report on the applicant’s mineral resources and reserves prepared in accordance with either:

• the JORC Code
• NI 43-101
• the SAMREC Code or
• PRMS (Petroleum Resources and Reserves).

The competent person must be independent of the listing applicant, its directors, senior management and advisers. In particular, it must:

• Have no economic or beneficial interest (present or contingent) in any of the assets being reported on;
• Not be remunerated with a fee dependent on the findings of the report;
• In the case of an individual, not be an officer, employee or proposed officer of the listing applicant or any group, holding or associated company of the listing applicant; and
• In the case of a firm, not be a group, holding or associated company of the listing applicant. Any of the firm’s partners or officers must not be officers or proposed officers of any group, holding or associated company of the listing applicant.

Mineral Companies that have commenced production must disclose an estimate of the operating cash cost per appropriate unit for the minerals and/or petroleum produced. Applicants are required to set out the components of the following cash operating costs separately by category: (i) workforce employment; (ii) consumables; (iii) fuel, electricity, water and other services; (iv) on and off-site administration; (v) environmental protection and monitoring; (vi) transportation of workforce; (vii) product marketing and transport; (viii) non-income taxes, royalties and other governmental charges; and (ix) contingency allowances.

A new applicant Mineral Company will be required to demonstrate that it has sufficient working capital for 125% of the group’s requirements for the next 12 months including general, administrative and operating costs, property holding costs and the cost of any proposed exploration and/or development. A statement as to the sufficiency of working capital must be included in the listing document.