Nevada deemed most eligible, again

For the second consecutive year, Nevada has been rated the most attractive jurisdiction for mining-related investment worldwide, according to the The Fraser Institute’s annual survey of mining companies.

The rating is based on mineral potential, geology and and policies, among other criteria.

Nevada scored 95 out of a possible 100 in the survey. Chile came in second, with a score of 91.

“Nevada and Chile performed well because they are rich in resources and realize that resource development is economically important,” says Laura Jones, survey co-ordinator and director of The Fraser Institute’s Centre for Studies in Risk and Regulation.

Of the 157 companies that responded to the survey, 132 were juniors and 25 were majors. Together, they accounted for US$725 million in exploration spending in 1999.

Ontario was the top-ranking Canadian jurisdiction (scoring 86 out of 100) and rated third in overall attractiveness as a result of its mineral potential ranking (100) and high policy potential (72).

Among the top 10 jurisdictions are Peru (82), Mexico (77), Australia (75), Brazil and Alaska (tied at 74), Quebec (73) and Arizona (60).

However, the outlook is not favourable for all involved. Wisconsin (16), Minnesota (24), Nova Scotia (26), and Washington and South Dakota (tied at 27), all rank among the least attractive areas for new mining investment based on their poor ratings in both mineral and policy potential.

British Columbia’s low rating on the investment attractiveness index (43) is the result of its abysmal performance on the policy potential index, where it received the lowest score of any jurisdiction (6) for the fourth year in a row.

“While many jurisdictions have favourable geology that could easily compete with other regions around the world to attract investment, unfavourable policies increasingly threaten new exploration,” says Jones. “B.C. is a prime example of how even resource-rich provinces can deter investors if the policy climate is hostile toward business.”

This year’s survey includes all Canadian provinces and territories (except Prince Edward Island), 14 American states, Australia, Argentina, Brazil, Chile, Mexico, Peru, Indonesia, Papua New Guinea and South Africa.