Quebec gets top grades for mining investment

Vancouver – Mining executives have given the nod to Chile, Quebec, Australia and Nevada as the top jurisdictions for global mining investment.

In the sixth Annual Survey of Mining Companies, the Fraser Institute asked miners, which spent a combined total of US$738 million in international exploration in 2001, to rate mining jurisdictions in North America and internationally based on both the policy and mineral attractiveness of area. A total of 158 companies took part in the survey including 27 senior and 131 junior mining companies.

“Jurisdictions which bolster attractive geology with mining-friendly policies, do well on the overall investment attractiveness index,” says Liv Fredricksen, the survey’s coordinator. “Other jurisdictions like British Columbia and Russia, who also have excellent geology, are hurt by their policies which have lowered their score.”

Chile lays claim to the highest ranking on the overall Investment Attractiveness Index, which takes into account both mineral potential and policy factors, with a score of 94 points out of a possible 100. The country took home top spot on the Mineral Potential Index, which rates a region’s attractiveness for new investment based on its geology and scored high on the Policy Potential Index (85), which measures the effects of government polices such as regulation and land use in attracting new investment.

Quebec is the top-rated North American jurisdiction with an overall investment score of 90. The Province garnished a score of 98 on the Mineral Potential Index and a score of 77 on the Policy Potential Index.

Australia is the next most attractive jurisdiction with an overall score of 89, and Nevada is the highest rated state in the US with a score of 86.

Rounding out the top ten are Peru (84), Brazil and Ontario (both with 83), Mexico (74), the Northwest Territories and Bolivia (both with 68), and Nunavut (67).

The state of Wisconsin received the lowest score at 13, with Washington and New Zealand close behind (both with 22).

The policies of British Columbia are rated on par with those of Russia, with both jurisdictions scoring a dismal 23 on the Policy Potential Index. On the overall investment attractiveness ratings, Russia managed to score a 63, while British Columbia tallied a 54.

“BC 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,” adds Fredricksen.

This year’s survey includes all Canadian provinces and territories (except PEI), selected US 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.