Western Australia is the greatest mining jurisdiction on the planet, while Saskatchewan is a close second.
That is the conclusion of Canada’s Fraser Institute, which is released its annual Survey of Mining Companies . Laptop computer, which collects feedback from countless mining professionals, tries to measure how resource potential and government policy affect mining purchase of 109 countries.
Not surprisingly, the research found that Canada, Australia and the Usa are considered very attractive places to invest. States and provinces in those countries made up eight of the top ten jurisdictions in the rankings, with Ireland and Finland filling another spots.
Ken Green, senior director of natural resource studies in the free-market-oriented Fraser Institute, noted that mining companies invest over the long term and therefore are searching for stable fiscal and political regimes. Developing countries with volatile political situations tend to score poorly as they do not provide that reliability.
“We have every reason to think the survey is highly representative of reality,” he explained.
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But there have been still huge variations within some countries, notably Canada. While Saskatchewan scored well because of its competitive tax regime and clarity around land claims, Ontario and Bc ranked at 15 and 18, respectively, within the survey. Both provinces have experienced some difficulties between your mining industry and First Nations communities. And infrastructure constraints remain a specific problem in Ontario, where very little progress has been made in developing the “Ring of Fire” mineral belt, though it is discovered a lot more than eight years back.
“Ontario faces challenges getting its metals out,” Green said.
Nonetheless, both provinces moved up in the rankings year-over-year his or her overall scores improved and other jurisdictions slipped back.
Quebec was ranked No. 1 overall if this survey was launched in 1997. But it fell back dramatically recently because the government made repeated changes to the mining tax regime.
However, Quebec moved into the Top 10 within this edition of the survey, ranking eighth overall. Green noted that Quebec moved up as the government’s “Plan Nord” northern development plan went into action and its fiscal regime stabilized.
Argentina’s La Rioja province was ranked the single worst jurisdiction in the world for mining. Three other Argentinian provinces ranked towards the bottom 10, which also included Greece, Venezuela and Honduras. Eldorado Gold Corp., a large Canadian gold miner, suspended most of its activity in Greece last month because of permitting delays plus some outright government opposition.
pkoven@nationalpost.com
Twitter.com/peterkoven
