Chile is the best region in the world for mining investment, according to the sixth annual survey of mining executives conducted by the Fraser Institute of Vancouver, B.C.
The South American country usurped Ontario and Quebec, which tied for top spot in the previous survey.
Companies responsible for a total of US$738 million in exploration spending in 2001 rated mining jurisdictions throughout the world in terms of policies (weighted 40%) and mineral potential (60%).
Chile ranked first with 100% for mineral potential and 85 for policies, for an overall score of 94.
Ontario’s overall score dropped to 83 from 90 to rank seventh overall, whereas Quebec remained at 90 to rank second.
“Jurisdictions like Chile, Australia, Quebec and Nevada, which bolster attractive geology with mining-friendly policies, do well on the overall investment attractiveness index,” says Liv Fredricksen, the survey’s co-ordinator. On the other hand, British Columbia and Russia, which also have excellent geology, are hurt by policies, which lowered their score.”
The mineral potential index rates a region’s attractiveness based on geology, whereas the policy index measures the effects of regulation, land use, and so forth.
After Quebec, Australia is the most attractive jurisdiction, with an overall score of 89%. The highest-rated jurisdiction in the U.S. is Nevada, with 86%.
Other regions in the top 10 are Peru (84), Brazil (83), Mexico (74), the Northwest Territories and Bolivia (both with 68), and Nunavut (67).
Regions that fared poorly include Wisconsin (13), Washington state and New Zealand (both with 22), and Nova Scotia and India (both with 24).
Both British Columbia and Russia scored 23 on policy, which lowered their overall ratings to 54 and 63, respectively.
“B.C. continues to score low despite recent changes in policy, demonstrating that the perception of a jurisdiction’s business climate is as important as its actual policies,” says Fredricksen. “Attractive geology is necessary, but not enough.”
Alberta suffered the largest drop among Canadian provinces in terms of investment attractiveness, slipping to 36th place, from seventh in 2001.
Of the 158 participants in the survey, 27 were senior mining companies and 131 were juniors.
The survey represents about 60% (US$191 million) of all mineral exploration expenditures in Canada in 2001, 32% (US$56 million) of those in the U.S., and 37% (US$237 million) of those in Latin America in 2001.
This year’s survey includes all Canadian provinces and territories (except Prince Edward Island), selected U.S. states, Argentina, Australia, Bolivia, Brazil, Chile, China, Colombia, Ecuador, Ghana, India, Indonesia, Kazakhstan, Mexico, New Zealand, Peru, Papua New Guinea, Philippines, Russia and South Africa.
1. Alberta8782
2. Nevada8785
3. Chile8585
4. Manitoba8174
5. New Brunswick7966
6. Australia7875
7. Quebec7776
8. Ontario7678
9. New Mexico75
10. Saskatchewan7465
11. Arizona7180
12. Mexico7170
13. Bolivia70*
14. Utah69*
15. Peru6769
*Not ranked in Top 15 in 2001
1. Chile10087
2. Quebec98100
3. Brazil9693
4. Peru9676
5. Australia9696
6. Russia8984
7. Ontario8798
8. Nevada8582
9. Nunavut8373
10. China8178
11. N.W.T.8180
12. Mexico77*
13. B.C.7491
14. South Africa7471
15. Alaska7091
*Not ranked in Top 15 in 2001
1. Chile9486
2. Quebec9090
3. Australia8987
4. Nevada8683
5. Peru8473
6. Brazil8386
7. Ontario8390
8. Mexico7468
9. N.W.T.6864
10. Bolivia68*
11. Nunavut67*
12. China64*
13. South Africa64*
14. Russia63*
15. Alaska6280
*Not ranked in Top 15 in 2001
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