Nevada is the most attractive jurisdiction in the world for mining investment followed by Western Australia, and Saskatchewan, according to the Annual Survey of Mining Companies released today by the Fraser Institute, an independent, non-partisan Canadian policy think-tank.
The Fraser Institute’s mining survey is an informal survey that attempts to assess the perceptions of mining company executives about various optimal and sub-optimal public policies that might affect the hospitality of a jurisdiction to mining investment.
“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.
Rounding out the top five jurisdictions are Newfoundland and Labrador, and Colorado.
Once again, the least-attractive jurisdiction for mining investment is Zimbabwe and, in fact, of the 10 least-attractive jurisdictions in the world, eight are in Africa.
“A sound regulatory regime coupled with competitive taxes make a jurisdiction attractive to investors,” Aliakbari said.
“Policymakers across the globe should understand that mineral deposits alone are not enough to attract investment.”
The Northern Territory and South Australia were also ranked in the top 10 for investment based on the Investment Attractiveness Index, number sixth and eighth respectively.
Minerals Council of Australia Chief Executive Officer Tania Constable said despite the results, Australia shouldn’t rest on its laurels.
“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.
“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.
“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.”