The Fraser Institute annual survey of mining companies

Abstract

The Fraser Institute has conducted an annual survey of mining companies since 1997. The results make it possible to assess how mineral endowment and public policy factors, such as taxation and regulation, affect trends in exploration investment within Canada and around the world. An overall Investment Attractiveness Index is constructed by combining the Mineral Potential Index, which rates regions on the basis of geological attractiveness, and the Policy Potential Index - a composite index that measures the effects of government policy on attitudes to exploration investment. More weight is given to the Mineral Potential Index to reflect the importance of attractive geology in investment decisions.

The 2002-2003 questionnaire was sent to 972 mining companies around the world. Responses were received from 158 (16%), comprising 131 junior and 27 senior companies, and the full report is accessible at www.fraserinstitute.ca.

The states covered by the survey include all Canadian provinces and territories except for Prince Edward Island, which has been omitted from recent surveys on account of its low mineral potential, 14 U.S. states, Australia, Argentina, Bolivia, Brazil, Chile, China, Colombia, Ecuador, Ghana, India, Indonesia, Kazakhstan, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, South Africa, Venezuela and Zimbabwe. Chile is the top-rated jurisdiction for investment attractiveness with a score of 94. Quebec, which shared first place with Ontario in 2001-2002, is second with 90, just ahead of Australia, which once again comes third (89). Nevada (86) and Peru (84) round out the top five. The lowest-ranked jurisdictions, with poor ratings on both the Policy and Mineral Potential Indices, include Wisconsin (13), Washington and New Zealand (tied at 22), Nova Scotia and India (tied at 24).