Canadian News - General

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The Fraser Institute: Mining Industry Rebukes Quebec, Preferring Alberta and Saskatchewan for Investment

MONTREAL, QUEBEC--(Marketwire - March 3, 2011) - Miners no longer rate Quebec as the top jurisdiction in the world for exploration and development, with the province falling to fourth place in the annual international survey of mining executives released today by the Fraser Institute, Canada's leading public policy think-tank.

Alberta topped the rankings and is viewed as the world's most attractive jurisdiction for mineral investment, according to the Survey of Mining Companies: 2010/2011. Quebec, which enjoyed a three-year reign atop the global rankings, was also overtaken by Nevada and Saskatchewan, which ranked second and third overall.

"Quebec damaged its reputation when the government proposed tax increases last spring and tabled a bill amending the provincial mining act in December 2009. These variables rocked miners' confidence in the province, as evidenced by the drop in rankings," said Jean-François Minardi, associate director of the Fraser Institute's Global Resource Centre.

"The mining industry now prefers Alberta for its resource-friendly government, competitive taxation regime, and superior infrastructure. There's minimal uncertainty around mining in Alberta."

The Fraser Institute's Survey of Mining Companies: 2010/2011 is based on the opinions of mining executives representing 494 mineral exploration and development companies on the investment climate of 79 jurisdictions around the world. The companies participating in the survey reported exploration spending of US$2.43 billion in 2010 and US$1.86 billion in 2009. The complete survey is available as a free PDF download at www.fraserinstitute.org.

This year, Canadian provinces claimed four of the top 10 spots, with Alberta jumping to first from fourth, Saskatchewan climbing to third from sixth, Quebec falling to fourth from first, and Manitoba holding steady at ninth.

The other provinces and territories generally fared well, with Newfoundland and Labrador placing 13th, the Yukon 15th, Ontario 18th, Nova Scotia 19th, New Brunswick 23rd, BC 36th, Nunavut 44th, and Northwest Territories 52nd.

Overall, the top 10 jurisdictions are Alberta, Nevada, Saskatchewan, Quebec, Finland, Utah, Sweden, Chile, Manitoba, and Wyoming. Seven of the same jurisdictions ranked among the top 10 last year; the three exceptions are Utah, which rose to sixth place from 15th; Sweden, which climbed to seventh from 12th; and Wyoming, which jumped to 10th from 13th. Chile is the only jurisdiction outside of North America that consistently ranks among the top 10.

The bottom 10 scores went to Indonesia, Zimbabwe, Wisconsin, Madagascar, India, Guatemala, Bolivia, Democratic Republic of Congo, Venezuela, and Honduras.

The report also notes that the worldwide economic turnaround has created optimism in the mining industry, with more than three quarters of respondents saying they expect to increase their exploration budgets this year.

"In order to attract investment and compete globally, governments must offer sensible, stable mining policies which, above all, uphold the rule of law and respect negotiated contracts and property rights," Minardi said.

"Royalty increases and convoluted regulatory schemes create uncertainty in mining, which the industry will always actively avoid."

Follow the Fraser Institute on Twitter: www.twitter.com/FraserInstitute

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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 80 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org.



For more information, please contact

Fraser Institute
Jean-Francois Minardi
Associate Director, Global Resource Centre
[phone] ext. 306
[e-mail]
or
Fraser Institute
Fred McMahon
Vice-President of International Policy Research
[phone] ext. 226
[e-mail]
or
Fraser Institute
Dean Pelkey
Director of Communications
[phone]
[e-mail]
www.fraserinstitute.org

www.marketwire.com/press-release/Fraser-Institute-Mining-Industry-Rebukes-Quebec-Preferring-Alberta-Saskatchewan-Investment-1405261.htm

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The Fraser Institute: Global Survey Names Alberta as Top Destination for Mining Investment, Saskatchewan Ranks Third While Quebec Falls to Fourth

TORONTO, ONTARIO--(Marketwire - March 3, 2011) - Alberta has surpassed Quebec as the world's most attractive jurisdiction for mineral exploration and development, according to the Survey of Mining Companies: 2010/2011, released today by the Fraser Institute, Canada's leading public policy think-tank.

"Alberta's resource-friendly government, competitive taxation regime, and superior infrastructure render the province a standout for mining investment, not only in Canada but also globally," said Fred McMahon, coordinator of the survey and the Institute's vice-president of international policy research.

"There's minimal uncertainty around mining in Alberta."

Quebec, which was ranked number one in the global survey for three years running, fell to fourth overall, passed also by Nevada and Saskatchewan, which ranked second and third.

Respondents lauded Saskatchewan for its clear regulatory policies and efficient conflict-resolution system.

"Quebec damaged its reputation when the government proposed tax increases last spring and tabled a bill amending the provincial mining act in December 2009. These variables rocked miners' confidence in the province and we see the result with the drop in rankings," McMahon said.

The Fraser Institute's Survey of Mining Companies: 2010/2011 is based on the opinions of mining executives representing 494 mineral exploration and development companies on the investment climate of 79 jurisdictions around the world. The companies participating in the survey reported exploration spending of US$2.43 billion in 2010 and US$1.86 billion in 2009. The complete survey is available as a free PDF download at www.fraserinstitute.org.

This year, Canadian provinces claimed four of the top 10 spots, with Alberta jumping to first from fourth, Saskatchewan climbing to third from sixth, Quebec falling to fourth from first, and Manitoba holding steady at ninth.

The other provinces and territories generally fared well, with Newfoundland and Labrador placing 13th, the Yukon 15th, Ontario 18th, Nova Scotia 19th, New Brunswick 23rd, British Columbia 36th, Nunavut 44th, and Northwest Territories 52nd.

"BC continues to be viewed poorly, with respondents citing land claims issues, environmental uncertainty, and political turmoil at the provincial level as reasons to remain hesitant about investing in British Columbia," McMahon said.

Overall, the top 10 jurisdictions are Alberta, Nevada, Saskatchewan, Quebec, Finland, Utah, Sweden, Chile, Manitoba, and Wyoming. Seven of the same jurisdictions ranked among the top 10 last year; the three exceptions are Utah, which rose to sixth place from 15th; Sweden, which climbed to seventh from 12th; and Wyoming, which jumped to 10th from 13th. Chile is the only jurisdiction outside of North America that consistently ranks among the top 10.

The bottom 10 scores went to Indonesia, Zimbabwe, Wisconsin, Madagascar, India, Guatemala, Bolivia, Democratic Republic of Congo, Venezuela, and Honduras.

Australia generally saw an improvement in its rankings after taking a hard hit in the special Survey of Mining Companies: 2010 Mid-Year Update, following the Australian government's plan to impose a heavy Resources Super Profits Tax (RSPT) on the mining industry. The new 2011 rankings show South Australia in 11th, Western Australia at 17th, New South Wales ranked 20th, the Northern Territory in 27th, and Queensland at 38th.

"The Australian government has since announced it would back away from the proposed tax, earning a positive reaction and improved rankings from the global mining industry," McMahon said.

The report also notes that the worldwide economic turnaround has created optimism in the mining industry, with more than three quarters of respondents saying they expect to increase their exploration budgets this year.

"In order to attract investment and compete globally, governments must offer sensible, stable mining policies which, above all, uphold the rule of law and respect negotiated contracts and property rights," McMahon said.

"Royalty increases and convoluted regulatory schemes create uncertainty in mining, which will only drive mining investment away."

Follow the Fraser Institute on Twitter | Become a fan on Facebook

The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 80 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org.



For more information, please contact

The Fraser Institute
Fred McMahon
Vice-President of International Policy Research
[phone] ext. 226
[e-mail]
or
The Fraser Institute
Dean Pelkey
Director of Communications
[phone]
[e-mail]
www.fraserinstitute.org

www.marketwire.com/press-release/Fraser-Institute-Global-Survey-Names-Alberta-as-Top-Destination-Mining-Investment-Saskatchewan-1405260.htm

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The Fraser Institute: Survey Shows Global Mining Industry Optimistic Towards New Investment While Australia Recovers in Global Rankings

TORONTO, ONTARIO--(Marketwire - March 3, 2011) - The worldwide economic turnaround has created optimism in the mining sector, with the global mining industry primed for new exploration and investment in 2011, according to the Survey of Mining Companies 2010/2011, released today by the Fraser Institute, Canada's leading public policy think-tank.

More than three quarters of survey respondents said they expected to increase their exploration budgets in 2011, as detailed in the annual global survey of the world's best places for mineral exploration and development.

The survey also shows that Australia has regained the confidence of the mining industry after taking a hard hit in the special Survey of Mining Companies: 2010 Mid-Year Update, following the Australian government's plan to impose a heavy Resources Super Profits Tax (RSPT) on the mining industry.

"The Australian government has since announced it would back away from the proposed tax, earning a positive reaction and improved rankings from the global mining industry," said Fred McMahon, coordinator of the survey and the Institute's vice-president of international policy research.

The Fraser Institute's Survey of Mining Companies: 2010/2011 is based on the opinions of mining executives representing 494 mineral exploration and development companies on the investment climate of 79 jurisdictions around the world. The companies participating in the survey reported exploration spending of US$2.43 billion in 2010 and US$1.86 billion in 2009. The complete survey is available as a free PDF download at www.fraserinstitute.org.

Canadian provinces occupied three of the top four rankings, with Alberta in first place, Nevada in second, Saskatchewan in third, and Quebec, which had been ranked number one for three consecutive years, falling to fourth.

Rounding out the remainder of the top 10 jurisdictions are: Finland, Utah, Sweden, Chile, Manitoba, and Wyoming. Seven of the same jurisdictions ranked among the top 10 last year; the three exceptions are Utah, which rose to sixth place from 15th; Sweden, which climbed to seventh from 12th; and Wyoming, which jumped to 10th from 13th. Chile is the only jurisdiction outside of North America that consistently ranks among the top 10.

Australian jurisdictions showed marked improvement in this year's survey following a dismal performance in the Survey of Mining Companies: 2010 Mid-Year Update. South Australia rose to 11th place from 15th, Western Australia climbed to 17th from 28th, New South Wales jumped to 20th from 38th, the Northern Territory rose to 27th from 30th, and Queensland fell to 38th from 33rd.

The bottom 10 scores went to Indonesia, Zimbabwe, Wisconsin, Madagascar, India, Guatemala, Bolivia, Democratic Republic of Congo, Venezuela, and Honduras.

Ecuador, the Philippines, Mongolia, and California, which were among the worst-ranked jurisdictions in the 2009/2010 survey, managed to climb out of the bottom 10 this year.

"The drop of Quebec from number one overall to fourth provides another example of how governments can damage a reputation and deter investment by increasing taxes and introducing uncertainty into the regulatory environment," McMahon said.

In December 2009, the Quebec government tabled a bill amending the provincial mining act, then followed that up last spring with proposed tax increases.

"In order to attract investment and compete globally, governments must offer sensible, stable mining policies which, above all, uphold the rule of law and respect negotiated contracts and property rights," McMahon said.

"Royalty increases and convoluted regulatory schemes create uncertainty in mining, which will only drive mining investment away."

Follow the Fraser Institute on Twitter | Become a fan on Facebook

The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 80 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org.



For more information, please contact

The Fraser Institute
Fred McMahon
Vice-President of International Policy Research
[phone] ext. 226
[e-mail]
or
The Fraser Institute
Dean Pelkey
Director of Communications
[phone]
[e-mail]
www.fraserinstitute.org

www.marketwire.com/press-release/Fraser-Institute-Survey-Shows-Global-Mining-Industry-Optimistic-Towards-New-Investment-1405259.htm