Photo by: Duane Daws
Alberta remains the most attractive jurisdiction for mining investment in Canada, according to the yearly global survey of mining executives released by Canadian public policy think-tank the Fraser Institute.
For the second consecutive year, Alberta ranked first in Canada and third worldwide in the survey, which is based on input from 690 mineral exploration and development company executives. This year’s survey spotlighted 112 jurisdictions worldwide.
“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 Fraser Institute senior director of energy and natural resources and director of the Survey of Mining Companies 2013 Kenneth Green.
Three Canadian jurisdictions—Alberta (3), New Brunswick (7), and Newfoundland and Labrador (9)—ranked in the top ten 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).
From 2007 to 2009, Quebec topped the survey, then dropped to fifth position in 2011, eleventh position in 2012 and finally twenty-first worldwide in 2013, owing 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, minimise the risk associated with policy changes and tax increases, and respect negotiated contracts,” Green said.
British Columbia dropped one place to thirty-second, although there were sixteen fewer jurisdictions spotlighted in last year’s survey. This year’s survey recorded improved perceptions of British Columbia’s political stability and availability of labour and skills.
The top ten most attractive jurisdictions for investment worldwide include (from the top) Sweden, Finland, Alberta, Ireland, Wyoming, Western Australia, New Brunswick, Nevada, Newfoundland & Labrador, and Norway.
“The confidence mining executives have in Sweden and Finland, for example, proves that it’s possible to enact sound environmental protections and still maintain a successful mining industry,” Green said.
The ten least attractive jurisdictions for investment worldwide (from the bottom) are Kyrgyzstan, Venezuela, Philippines, Argentina—La Rioja, Angola, Argentina—Mendoza, Zimbabwe, Ivory Coast, Indonesia and Madagascar.
The exploration budgets reported by companies participating in the survey totalled $4.6-billion in 2012 and $3.4-billion in 2013.