One of the world’s oldest and richest gold production locations, the US state of Nevada, is now rated as the globe’s most attractive mining investment destination in a newly released survey of leading exploration, development, and other mining-related companies.
According to the Fraser Institute Annual Survey of Mining Companies, Nevada is now the top jurisdiction in the world for investment based on its ‘Investment Attractiveness Index.’
Western Australia, which was number one last year, fell back slightly to second place, while Canada’s Saskatchewan also dropped to finish third this year.
The US, Canada, and Australia dominated the top 10 most attractive destinations with Newfoundland & Labrador and Quebec for Canada, Arizona and Colorado for the US, and Australia’s Northern Territory and South Australia as the most popular regional mining destinations.
According to the latest survey conducted by the Canadian think tank, Nevada ranked first this year with the highest Policy Perception Index (PPI) score out of 100, moving it up from sixth place in the previous version of the report.
“The Fraser Institute’s mining survey is the most comprehensive report on government policies that either attract or discourage mining investors, and this year Nevada ranks highest of anywhere in the world,” said Elmira Aliakbari, director of the Fraser Institute’s Centre for Natural Resource Studies and co-author of the report.
This year’s report ranks 62 jurisdictions around the world based on their geologic attractiveness (minerals and metals) and government policies that encourage or deter exploration and investment.
Once again, the least-attractive jurisdiction for mining investment is Zimbabwe, with eight African nations listed in the 10 least-attractive jurisdictions in the world.
“A sound regulatory regime coupled with competitive taxes make a jurisdiction attractive to investors,” Ms Aliakbari said.
“Policymakers across the globe should understand that mineral deposits alone are not enough to attract investment.”
While it slid slightly this year, Saskatchewan remains Canada’s top-rated jurisdiction for mining investment, according to the annual survey.
On overall investment attractiveness, Saskatchewan ranks in the global top three for the fifth time in six years (having dropped from second in last year’s survey to third this year), followed by Newfoundland & Labrador at fourth, and Quebec at eighth.
However, according to the Fraser Institute, some Canadian provinces and territories are not capitalising on their strong mineral potential due to a lack of a solid policy environment that would attract investment.
It found that Ontario and Manitoba, despite being among the top ten most attractive jurisdictions for mineral potential, rank 18th and 24th respectively when considering policy factors alone. Similarly, Yukon ranks 10th for its mineral potential but 31st on policy factors.
It said that in addition, British Columbia continues to perform poorly on the policy front due to investor concerns over disputed land claims and protected areas.
Australia still hot for investment
Australia’s Association of Mining and Exploration Companies (AMEC) welcomed the nation’s ranking as the most attractive overall country for mining investors.
AMEC CEO, Warren Pearce, said that the release each year of the Fraser Institute’s Annual Survey of Mining Companies is eagerly awaited as it ranks the world’s mining jurisdictions for investment attractiveness and policy measures, as perceived by industry respondents.
“The survey is a valuable indicator to how an industry sees the performance and supportiveness of governments and regulatory bodies toward the mining industry,” Mr Pearce said.
This year’s report states that when, “considering both policy and mineral potential, Australia continues to be the most attractive region in the world for mining investment.”
The survey’s overall Investment Attractiveness Index is determined by a combination of a jurisdiction’s mineral potential and policy perception. Respondents to the survey have consistently indicated that approximately 40% of their investment decision is determined by policy factor, and 60% by mineral potential.
AMEC noted that on overall investment attractiveness, Western Australia finished second, falling from first place last year, leading the Northern Territory which came in sixth, up from 14th, and South Australia ninth up from 10th, Queensland 13th up from 18th, and New South Wales 23rd up from 33rd. Victoria fell from 33rd to 47th this year.
“All in all, these results reflect well on Australia’s performance, with most jurisdictions either maintaining or improving their position in the overall rating of investment attractiveness.”
“And while these results are encouraging, there is always room for further improvements here in Australia.”
“Many such initiatives are underway around Australia, and we will continue to work with governments to deliver a welcoming investment environment for our sector, to drive this investment.”
“However, there are, equally, many concerning policy and regulatory developments here in Australia, that have the potential to negatively impact our reputation as a safe investment jurisdiction.”
MCA says Australia needs to be better
Despite its strong rating, the Minerals Council of Australia (MCA) has issued a stern warning. Despite the results, Australia should not rest on its laurels.
There are signs that investors are being deterred by poor government processes and policies, MCA CEO, Tania Constable, said in announcing the Fraser Survey results.
“Australia’s geological potential will not be able to continue to counterbalance this trend to higher royalties and policy processes that delay approvals and investment decisions.
“Australia’s vulnerability to competition from resource-rich economies will only grow as they seek to seize the opportunity to supply the minerals and metals needed to achieve global net zero emissions.”
“To attract a significant proportion of this investment that will create tens of thousands of new regional jobs, business growth and investment should be placed at the centre of the government’s policymaking.”
Ms. Constable stated that current policy settings are putting at risk investment in mining in Australia.
“Workplace relations, tax, environment, climate change, and energy policies that impose unexpected costs on the mining industry threaten the capital investment that underpins its contribution to the economy and the global efforts to decarbonise.”
“Australia needs more investment along the entire mining value chain to boost the economy’s performance and play its part in the goal of net zero emissions by 2050.”
“There are signs that investors are being deterred by poor government processes and policies.”
“Australia’s geological potential will not be able to continue to counterbalance this trend to higher royalties and policy processes that delay approvals and investment decisions,” Constable said.
She declared that Australia’s vulnerability to competition from resource-rich economies will only grow as they seek to seize the opportunity to supply the minerals and metals needed to achieve global net zero emissions.
“To attract a significant proportion of this investment that will create tens of thousands of new regional jobs, business growth and investment should be placed at the centre of the government’s policymaking.
“Current policy settings are putting at risk investment in mining.”
“Workplace relations, tax, environment, climate change and energy policies that impose unexpected costs on the mining industry threaten the capital investment that underpins its contribution to the economy and the global efforts to decarbonise.
“Australia needs more investment along the entire mining value chain to boost the economy’s performance and play its part in the goal of net zero emissions by 2050.”
