For the second consecutive year, the Canadian province of Alberta —home to the booming and controversial oil sands industry— ranked first in the country and third worldwide as the most attractive jurisdiction for mining investors in the Fraser Institute’s annual global survey of mining executives.
The study, released Monday as the Prospectors and Developers Association of Canada (PDAC) convention held in Toronto kicks off, is based on input from 690 mineral exploration and development company executives.
Sweden and Finland scored the top places in this year’s survey, which spotlighted 112 jurisdictions worldwide. Kyrgyzstan and Venezuela were named the worst two countries to venture.
“Miners praise Alberta for its transparent and productive approach to mining policy. The province offers competitive taxation regimes, sound legal systems, and relatively low uncertainty around land claims. That’s what miners look for,” said Kenneth Green, Fraser Institute senior director of energy and natural resources.
Other two Canadian jurisdictions —New Brunswick (7), and Newfoundland and Labrador (9)—ranked in the top 10 worldwide, followed by Saskatchewan (12), Yukon (19), Quebec (21), Manitoba (26), Ontario (28), Nova Scotia (29), British Columbia (32), Nunavut (44), and The Northwest Territories (47).
Quebec, once the darling of mining investors, continued to fall down the rabbit hole. From 2007 to 2009, the French-speaking district topped the survey, then dropped to 5th in 2011, 11th in 2012 and finally 21st worldwide in 2013, due in part to amendments to Quebec’s Mining Act and recent tax policy changes.
“If Quebec wants to renew confidence in the global mining sector, it should reduce red tape, minimize the risk associated with policy changes and tax increases, and respect negotiated contracts,” Green said.
B.C. dropped to 32nd from 31st in 2012, though the survey recorded improved perceptions regarding the Western province’s political stability and availability of labour and skills.
The Canadian public policy think-tank also identified the 10 places mining enthusiasts should avoid. From the bottom, they are Kyrgyzstan, Venezuela, Philippines, Argentina (La Rioja and Mendoza), Angola, Zimbabwe, Ivory Coast, Indonesia and Madagascar.
Image by Christopher Kolaczan.