SEC Proposes Rules to Implement the Mine Safety Disclosure Requirements of the Dodd-Frank Act: Proposed Rules Would Implement and Enhance Already Effective Disclosure Requirements Regarding Safety and Health Violations at Mines

Sullivan & Cromwell LLP - January 7, 2011

The SEC has proposed rules under the Securities Exchange Act that would implement and enhance the already effective disclosure requirements relating to mine safety set forth in Section 1503 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Many aspects of the SEC’s proposed rules restate the terms of the statute. Reporting issuers may wish to consider the proposed rules and the discussion in the proposing release in making any disclosures pursuant to the already effective statutory disclosure requirements that are required prior to the SEC’s adoption of any final rules.

The proposed rules would apply to any U.S. or non-U.S. reporting company that, directly or through subsidiaries, operates a coal or other mine subject to the U.S. Federal Mine Safety and Health Act of 1977 (the “Mine Act”). Disclosure would be required only in relation to mines located in the United States.

Among other things, these issuers would be required to disclose in their annual reports certain mine safety and health violations and other legal actions under the Mine Act, including mining-related fatalities subject to reporting under the Mine Act. U.S. domestic issuers subject to the rules would also need to include similar disclosure in their Form 10-Q reports, and to file current reports on Form 8-K when they receive certain imminent danger orders and similar notices under the Mine Act. Comments on the proposed rules are due no later than January 31, 2011.