Quebec wins gold again as top mining destinationTORONTO - Mining industry executives have rated Quebec as the world’s most attractive jurisdiction for mineral exploration and development for the third straight year, according to the Fraser Institute's annual Survey of Mining Companies.
Finland is the top international jurisdiction, ranked third overall, after Quebec and Canada's New Brunswick province, and another Canadian jurisdiction, Alberta, is in fourth place, the think tank said on Thursday.
Other jurisdictions in the top 10 include Nevada at number five; Chile, the only Latin American country ranked among the top 10, at number seven; and South Australia, the highest-ranked Australian jurisdiction, at number 10.
The Fraser Institute’s Survey of Mining Companies: 2009/2010 represents the opinions of 670 mining executives and managers worldwide on the policy and mineral endowment of 72 jurisdictions on all continents except Antarctica.
“Mining executives say Quebec remains an international standout for investment because its stable government policies offer them the certainty that reduces risk for long-term projects,” commented Fred McMahon, coordinator of the survey and the Fraser Institute’s vice-president of international policy research.
However, the survey painted a very different picture of two other Canadian mining provinces: Ontario and British Columbia.
Executives cited "multiple layers of regulation, little coordination between various government agencies, and uncertainty around aboriginal land claims”. The Fraser Institute said.
Ontario is now ranked 22nd overall, down from its 10th place finish last year, while British Columbia is even further back at 38th, dropping 14 places from the 24th spot in 2009.
After the top ten, other highly ranked non-Canadian jurisdictions include Sweden (12th overall), Wyoming (13th), Utah (15th), and Alaska (18th).
Among Australian states, South Australia is followed by the Northern Territory in 14th, West Australia in 19th, and New South Wales in 20th.
Chile is the top-ranked Latin American nation in seventh spot overall. It is followed by Mexico (28th), Peru (39th), and Brazil (40th ).
Botswana is the highest-ranked African nation (21st), followed by Mali and Ghana in the 27th and 34th spots, respectively.
South Africa came in at number 61, a big drop from 49 a year ago.
The bottom 10 scores belong to Venezuela, Ecuador, the Philippines, Zimbabwe, Democratic Republic of Congo, Mongolia, Bolivia, Honduras, Guatemala, and California.
“Respondents say California’s staunchly environmentalist policies create a strong deterrent to investment by interfering with mining practices that are proven to be clean and responsible.
“Unfortunately, the rest of the worst-ranked jurisdictions are developing nations that urgently need the new jobs and economic prosperity mining can create,” McMahon said.
“In order to attract mining investment, jurisdictions must uphold the rule of law and respect negotiated contracts and property rights.”
LOOKING UP
The survey revealed a big rebound in optimism in the sector, especially in contrast to the gloom of a year earlier, the Fraser Institute said.
Almost twice as many miners plan to increase investment as hold it steady or decrease it, and 83% of miners expect mineral prices will rise.
Companies participating in the survey reported exploration spending of $2,9-billion in 2009 and of $3,6-billion in 2008.