The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
North of 60 Mining News - May 12, 2023
The annual Fraser Institute's annual mining survey compiles executive input to rank global mining jurisdictions on policy, mineral potential, and overall investment attractiveness.
Click on image to read the entire Fraser Institute Annual Survey of Mining Companies 2022.
With the exception of British Columbia, all the mining jurisdictions in the North of 60 Mining News area lost favor in the latest edition of the Fraser Institute's Annual Survey of Mining Companies.
Each year, Canada-based Fraser Institute calls on mining executives from around the world to rank global mining jurisdictions when it comes to mineral potential and a broad range of issues related to mining policies. Averaging out the responses to this survey, the Canada-based think tank ranks each mining jurisdiction's "Investment Attractiveness Index."
With mineral potential that is considered second to none and the fifth-best jurisdiction in the world when it comes to mining policy, Nevada reclaimed the top position as the best place on Earth to discover, permit, and build a mine, according to the global mining executives that responded to the Fraser Institute's Annual Survey of Mining Companies 2022.
"The Fraser Institute's mining survey is the most comprehensive report on government policies that either attract or discourage mining investors, and this year Nevada ranks highest of anywhere in the world," said Elmira Aliakbari, director of the Fraser Institute's Centre for Natural Resource Studies and co-author of the report.
While rich mineral deposits are key to being a top mining jurisdiction, the ability to reliably and economically discover, extract, and deliver those minerals to market is what sets top mining jurisdictions apart from those that rank lower on the Fraser Survey.
"A sound regulatory regime coupled with competitive taxes make a jurisdiction attractive to investors," Aliakbari said. "Policymakers across the globe should understand that mineral deposits alone are not enough to attract investment."
Rounding out the top five mining jurisdictions considered to have the best balance of mining policies and mineral deposits are: Western Australia (2), Saskatchewan (3), Newfoundland and Labrador (4), and Colorado (5).
"Saskatchewan remains not only the top choice in Canada, but third overall globally," said Aliakbari.
While Alaska, BC, Northwest Territories, and Nunavut all ranked in the top 20 when it comes to mineral potential, mining policy weighed down the investment attractiveness index of all these North of 60 Mining jurisdictions.
Coming in at No. 11, Alaska was the highest ranked North of 60 jurisdiction on Fraser's investment attractiveness index, the first time in more than five years the northern U.S. state did not make the top 10 in this metric. Interestingly, it was not mining policy that sent the Last Frontier's global ranking falling seven positions from No. 4 a year ago. Instead, it was a less favorable view of the Far North State's mineral potential that weighed on the state.
Federal policies, however, may have tainted the views of some when ranking Alaska.
Each year, the Fraser Institute asks mining executives to set aside any policy considerations when providing their views of pure geological endowment of global mining jurisdictions. The answers are compiled into the "Best Practices Mineral Potential Index."
Tectonic shifts in perceived mineral potential, however, defy the geological timescales involved with minerals enrichment.
Alaska is a prime example of how quickly the perceptions of a region's mineral potential can change. In the latest survey, mining execs ranked the 49th State at 15 on the Best Practices Mineral Potential Index, which is a drop of 13 positions from the No. 2 spot held last year.
While Alaska held its No. 13 position on the "Policy Perception Index," which is the compilation of responses to 15 mining policy questions, mining executives noted some troubling regulatory moves out of Washington, DC, that may have dulled their enthusiasm for the state's mineral potential.
This includes the Environmental Protection Agency's decision to put in place discharge prohibitions that would essentially make it impossible to permit, develop, and operate a mine at the world-class Pebble copper deposit in Southwest Alaska.
"The EPA is attempting to preemptively veto the exploration permit process, which is unfair to proponents but also sends a terrible message to companies that might want to invest in Alaska," the president of an exploration company commented in his response to the Fraser Survey.
Alaska Gov. Mike Dunleavy and his administration have vowed to challenge EPA's Pebble determination in court.
"EPA's veto sets a dangerous precedent. Alarmingly, it lays the foundation to stop any development project, mining or non-mining, in any area of Alaska with wetlands and fish-bearing streams," he said. "My administration will stand up for the rights of Alaskans, Alaska property owners, and Alaska's future."
Alaska Attorney General Treg Taylor said EPA's "legally indefensible" preemptive Pebble veto sets a precedent that "should alarm all permit applicants, investors, and states who wish to retain their traditional land- and resource-management authority."
Despite the concerns about EPA's preemptive Pebble veto, the international mining sector ranks Alaska No. 16 on the topic of administration of existing regulations and No. 27 (around the middle of the pack) when it comes to uncertainty concerning environmental regulations.
Continuing a trend that began in 2019, British Columbia continues to inch its way up the Fraser Institute's Annual Survey of Mining Companies Investment Attractiveness Index.
BC is considered the fifteenth-best global jurisdiction for mining investment, one notch higher than the 2021 survey.
While BC ranks 14 in the world when it comes to mineral potential, the westernmost Canadian province was ranked 54, or only eight notches from the bottom, when it comes to uncertainty concerning land claims. The province was ranked even worse on the topic of uncertainty concerning protected areas, coming in at No. 58 on this topic.
In Northern BC, the Tahltan and other First Nations have been working to allay these concerns with firm but clear policies that protect cultural resources while also encouraging mining and mineral exploration investment.
Tahltan territory covers 70% of the Golden Triangle region of northwestern BC. The traditional territory of the Nisga'a Nation, Tahltan's neighbor to the south, covers most of the rest. These First Nations, which have been proactive when it comes to both mining and protecting cultural heritage within their respective territories, have forged a partnership that further strengthens them as industry leaders in mining and exploration.
"Through our partnership, we are creating a circle of certainty in the Golden Triangle that will attract investors to work with us in our territories," said Nisga'a Lisims Government President Eva Clayton.
Responsible mineral exploration and mining companies that respectfully engage with Nisga'a and Tahltan First Nations find themselves with strong partners that can help streamline permitting.
More information on the Tahltan-Nisga'a mining partnership can be read at BC First Nations forge mining alliances.
One advantage BC holds over the other North of 60 Mining jurisdictions is relatively good infrastructure that includes roads that cut across the length of breadth of the province, as well as the Northwest Transmission Line, which delivers clean, industrial-grade hydroelectricity nearly to its northern border.
Mining execs ranked BC No. 26 when it comes to infrastructure, which is comparable to Queensland, Australia (25), and Saskatchewan, Canada (27).
Much like Alaska, Canada's Yukon dropped out of the top 10 when it comes to mining investment attractiveness, falling from No. 9 in 2021 to No. 20 in the latest Fraser Survey.
Part of the reason for this drop is a less favorable view of the territories' geology. On the latest survey, mining execs ranked Yukon No. 10 when it comes to pure mineral potential; while not bad, this is a drop from the No. 6 position held a year earlier.
On the policy front, Yukon dropped from No. 23 to No. 31 in the latest edition of the Fraser Survey.
One reason for this is uncertainty concerning land claims. Yukon was ranked No. 44, between Angola and Ghana, in this category.
The westernmost Canadian territory ranked even lower when it comes to uncertainty concerning protected areas, coming in at No. 56 out of 62 on this topic.
"Lack of clarity on the rules of First Nations' role in the exploration and production process," according to an exploration company president that responded to the survey.
Much like its northern neighbors – Alaska, Northwest Territories, and Nunavut – Yukon gets a low score for infrastructure, coming in at No. 44 on the 2022 Fraser Survey.
While the perceptions of Northwest Territories' geology and mining policy have both improved, the northern Canada mining jurisdiction's investment attractiveness slid eight positions to No. 43 in the 2022 Fraser Survey.
Mining execs ranked NWT as the world's 19th richest jurisdiction when it comes to mineral potential, up from No. 26 in the previous survey.
This view of the territory's geology will likely continue to rise as more executives become aware of the rich critical minerals potential NWT has to offer.
Already home to Canada's first rare earths mine, excitement is building for the lithium and associated critical minerals found in the Yellowknife Pegmatite Province east of NWT's capital city.
More information on lithium and other critical metals found around Yellowknife can be read at Yellowknife emerging as EV metals hub.
While NWT's policy perception increased from No. 59 on the 2021 Fraser Survey to No. 51 on the latest annual mining investment report card, mining execs still have many concerns.
"Regulatory duplication works as a deterrent to investment. A very slow permitting process due to needing both federal and territorial approvals, as well as approval from local Indigenous communities," one mineral exploration company president penned in his response to the Fraser Survey.
NWT has a unique permitting system that requires a recommendation by an indigenous review board prior to government approval, and has been criticized for adding time to the permitting process.
Northwest Territories Minister of Industry, Tourism and Investment Caroline Wawzonek, however, contends that having ingenious involvement built directly into the process results in consensus building with residents and a permitted mining project that has ESG at its very core.
"We are world leaders in these measures, well known for our environmental oversight, Indigenous representation in regulatory processes, and the recognition of traditional knowledge," she said. "In fact, the NWT model; the ESG-I, with its unique approach to collaborative and consensus-based legislative development, resource royalty sharing, and socio-economic and benefit agreements, is anchored by the critical leadership of NWT Indigenous Governments in resource exploration and development in Canada."
Mining and mineral exploration companies, however, are not yet convinced of the benefits of the NWT's permitting process. Execs ranked the territory No. 56 on the topic of environmental regulations, No. 58 on socioeconomic agreements, and next to last (61) when it comes to uncertainty concerning protected areas.
"The regulatory boards state they are trying to work with the industry to make things better but because the Feds own the legislation, every time the boards look at a guideline they increase the requirements for monitoring," a senior mining consultant wrote.
And, of course, NWT was ranked poorly on infrastructure, coming in at No. 49 on the latest Fraser Survey.
While Nunavut's mineral potential is considered as the 13th best on the planet, its policy index ranks amongst the lower echelon of third-world countries, resulting in the territory ranking a paltry No. 42 on the 2022 Fraser Survey Investment Attractiveness Index.
Nunavut's overall score was drug down by a No. 55 ranking with respect to mining policy, which falls between Mongolia and the Democratic Republic of Congo (DRC).
The eastern Canadian territory scored low on nearly every policy metric considered in the Fraser Survey, including last place when it comes to uncertainty concerning protected areas and socioeconomic agreements
"Lack of clarity on the role of First Nations' involvement creates uncertainty," an exploration company vice president wrote.
Nunavut also scored poorly when it comes to uncertainty regarding environmental regulations (61); only California was considered worse and in the category of regulatory duplications and inconsistencies (57), one notch above DRC.
Nunavut only beat out Mali, Zimbabwe, Guinea, Angola, and Papua New Guinea when it comes to infrastructure.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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