Geology and Politics Determine Mineral Investment Climate

Attractive geology does not guarantee mining investment if a region’s policies are bad, according to mining executives surveyed in the Fraser Institute’s seventh Annual Survey of Mining Companies. Companies responsible for a combined US$642.4 million in international exploration (during 2002) rated the policy attractiveness and mineral attractiveness of mining jurisdictions around the world. Jurisdictions like Chile, Australia, Quebec and Nevada bolster their attractive geology with mining-friendly policies, the report said. These locations do well on the overall investment attractiveness index. On the other hand, jurisdictions like British Columbia and Indonesia, each with excellent geology, are hurt by their policies, which have lowered their score.