Quebec, Ontario top Fraser rankings

Quebec and Ontario tied for top spot in a survey that considered the attractiveness of mining regions to investors. The survey, the fifth in as many years, was conducted by The Fraser Institute in Vancouver.

Mining executives from companies accounting for a total of US$782 million in exploration in 2000 rated the attractiveness of mining jurisdictions in North America and internationally, both in terms of mineral potential and government policies.

Results from the survey were used to create several indices. The mineral potential index rates a region’s attractiveness for new investment based on its geology. The policy potential index is a composite index that measures the effects of government policies, such as regulation and land use, on attracting new exploration.

Ontario and Quebec each had a score of 90 points out of a possible 100. Quebec’s ranking is a result of the province’s top score on the mineral potential index (100) and high score on the policy potential index (76). Ontario also ranks high on both indices: 98 for mineral potential and 78 for policy potential. Australia is the next most attractive jurisdiction, with an overall score of 87.

For the fifth straight year, British Columbia has the lowest rating on the policy potential index (14). In terms of overall investment attractiveness, the province rates 60.

“Jurisdictions that have both attractive policy and geology, such as Australia, Chile, Ontario and Quebec, do well on the overall investment attractiveness index.” says Laura Jones, director of The Fraser Institute’s Centre for Studies in Risk and Regulation. “Other jurisdictions, such as British Columbia and Russia, are rated as having excellent geology but terrible policies, which lowers their overall score. Since companies can now choose to spend their exploration budgets almost anywhere in the world, attractive geology is no longer enough. Governments who want to keep mining in their jurisdictions must compete to have favourable policy climates that encourage investment.”

Also ranking in the top 10 jurisdictions for overall investment are: Chile (86), Brazil (86), Nevada (83), Alaska (80), Peru (73), Mexico (68) and Manitoba (67).

Washington state ranked as the least attractive area for mining, with a score of 15, followed by Wisconsin with 17, South Dakota with 23, and Nova Scotia and the Philippines tied at 25.

The 162 companies participating in the survey include 132 junior mining companies and 30 seniors, representing half the mineral exploration spending in Canada in 2000. The survey also represents about one-third of the exploration expenditures (US$175.8 million) in the U.S., as estimated by the Metals Economics Group.

The survey includes all Canadian provinces and territories (except Prince Edward Island), selected U.S. states, Argentina, Australia, Bolivia, Brazil, Chile, China, Colombia, Ecuador, Ghana, Indonesia, Kazakhstan, Mexico, Peru, Papua New Guinea, Philippines, Russia and South Africa.

Policy Potential Top 15
Country	Score
Chile	85
Nevada	85
Alberta	82
Arizona	80
Ontario	78
Quebec	76
Brazil	75
Australia	75
Manitoba	74
Mexico	70
Peru	69
New Brunswick	66
Idaho	65
Saskatchewan	65
Argentina	65

Mineral Potential Top 15
Country	Score
Quebec	100
Ontario	98
Australia	96
Brazil	93
Alaska	91
British Columbia	91
Chile	87
Russia	84
Nevada	82
Northwest Territories	80
China	78
Peru	76
Nunavut	73
South Africa	71
Indonesia	69

Investment Attractiveness Top 15
Country	Score
Quebec	90
Ontario	90
Australia	87
Chile	86
Brazil	86
Nevada	83
Alberta	82
Alaska	80
Peru	73
Mexico	68
Manitoba	67
Northwest Territories	64
Arizona	61
Argentina	61
British Columbia	60