The NMA reports that three American states cracked the top 10 list of the world’s friendliest investment regions for mining in the annual Survey of Mining Companies 2015 by the Fraser Institute. The Toronto-based, free-market consulting group painted a relatively optimistic picture for the future of mining investment in the US, NMA says, with Nevada, Alaska and Utah making the top ten list in this year’s report.
However, Fraser said America’s median investment attractiveness levelled off this year after two previous years of growth and is now ranked as the third most attractive region in the world for investment. “Nevada dropped to third, after Western Australia displaced it as the most attractive jurisdiction in the world,” said the institute.
Top Ten Global Jurisdictions for Mining Exploration and Development
2015 Investment Attractiveness Ranking*
1 Western Australia
2 Saskatchewan
3 Nevada
4 Ireland
5 Finland
6 Alaska
7 Northern Territory
8 Quebec
9 Utah
10 South Australia
*Investment Attractiveness Index, Source: Fraser Institute, Survey of Mining Companies 2015
Turning to the 2015 U.S. Policy Perception Index (PPI) median score, an assessment of the attractiveness of mining policies, the median score increased due to significant improvements in Alaska, Michigan, and Washington. Fraser noted that the only states that saw score decreases were Colorado and New Mexico. “New Mexico saw a decline in perceptions for its trade barriers, uncertainty concerning disputed land claims and taxation regime.”
Michigan and Washington had the largest improvement in their scores and rankings among US states, while Utah and Washington saw decreases.
The global jurisdictions that ranked the 10 highest in the 2015 report included Ireland, Wyoming, Sweden, Saskatchewan, Finland, Nevada, Alberta, Western Australia, New Brunswick and Portugal. The worst jurisdictions for investment in this year’s report were Venezuela, Myanmar, La Rioja, Zimbabwe, Chubut, Neuquen, Niger, Kyrgyzstan, Rio Negro and Honduras.
The Fraser Institute’s survey canvassed the opinions of 449 mining executives and managers worldwide on the policies and the mineral resources of 109 jurisdictions. The companies participating in the survey reported exploration spending of $2.2 billion, compared to $2.5 billion in 2014. The decrease is attributed to a downturn in commodity prices and difficulties in attracting investment to the sector. Commodity prices for metals and minerals dropped by nearly 40% according to World Bank estimates.
Picture courtesy of the Nevada Mining Association.