2010-04-15 20:03 ET - Street Wire


by the Fraser Institute

Mining industry executives rate Quebec as the world's most attractive jurisdiction for mineral exploration and development for the third straight year, according to the annual survey of mining companies 2009/2010, released today by the Fraser Institute.

"Mining executives say Quebec remains an international standout for investment because its stable government policies offer them the certainty that reduces risk for long-term projects," said Fred McMahon, co-ordinator of the survey and the institute's vice-president of international policy research.

But while mining executives put Quebec at the head of the class in Canada, they have a much less optimistic view of Ontario and British Columbia, citing multiple layers of regulation, little co-ordination between various government agencies and uncertainty around aboriginal land claims.

Both Ontario and British Columbia, two provinces with a lengthy history of mining, fell significantly in this year's survey. Ontario is ranked 22nd overall, down from its 10th place finish last year, while British Columbia is even further back at 38th, dropping 14 places from the 24th spot in 2009.

"Ontario's recent throne speech indicated Dalton McGuinty's government is open to the idea of increased mining in Northern Ontario, but based on responses from the mining industry in this survey, the government has substantial work to do at fixing policies that the industry perceives as discouraging mining," Mr. McMahon said.

The Fraser Institute's survey of mining companies for 2009/2010 represents the opinions of 670 mining executives and managers worldwide on the policy and mineral endowment of 72 jurisdictions on all continents except Antarctica. Companies participating in the survey reported exploration spending of $2.9-billion (U.S.) in 2009 and of $3.6-billion (U.S.) in 2008.

Last year's survey showed significant pessimism toward new mining investment, but this year's survey reveals a strong rebound in optimism. Almost twice as many miners plan to increase investment as hold it steady or decrease it, with 83 per cent of miners saying mining prices will rise and 20 per cent expecting substantial increases.

The Canadian picture

Aside from Ontario and British Columbia, Canadian jurisdictions fared well in this year's survey with Canadian provinces taking up six of the top 10 spots. New Brunswick is ranked second overall, an increase of four places since 2009. Alberta remained in fourth place while Saskatchewan rose three spots to sixth. Newfoundland & Labrador is ranked eighth, a decrease from fifth last year, while Manitoba is ranked ninth overall. In 2007, Manitoba was ranked first overall