CONCERNS over potential legislative changes affecting the resources sector has seen Papua New Guinea’s ranking slide in the latest Fraser Institute Annual Survey of Mining Companies.
Released in late February, the Fraser Institute Annual Survey of Mining Companies 2016 found that PNG fell from 12th to 23rd in the “Best Practices Minerals Potential” section.
This section considers both geological potential (where PNG is world class) along with the mining jurisdiction and this is section of the survey where the country historically gets its strongest ratings.
However, a number of exploration company presidents noted the potential introduction of a new Mining Act and changing policies and government decisions and unpredictability as major concerns when considering investment in PNG.
In the main Investment Attractiveness Index, PNG ranked 59th out of 104 countries surveyed, down from 43rd of 109 countries in 2015.
In the Policy Perception Index PNG ranked 83rd out of 104 countries surveyed, down from 77th out of 109 countries surveyed in 2015.
The Fraser Institute Annual Survey of Mining Companies was sent to approximately 2,700 exploration, development, and other mining-related companies around the world. The survey was conducted from August 30th to November 18th, 2016. The companies that participated in the survey reported exploration spending of US$2.7 billion in 2016 and US$3.2 billion in 2015.
The top jurisdiction in the world for investment based on the Investment Attractiveness Index is Saskatchewan, which moved up to first from second place in 2015. Manitoba moved up to second place this year after ranking 19th the previous year. Western Australia dropped to third, after Saskatchewan displaced it as the most attractive jurisdiction in the world. Rounding out the top ten are Nevada, Finland, Quebec, Arizona, Sweden, the Republic of Ireland, and Queensland.
When considering both policy and mineral potential in the Investment Attractiveness Index, the Argentinian province of Jujuy ranks as the least attractive jurisdiction in the world for investment.
This year, Jujuy replaced another Argentinian province—La Rioja—as the least attractive jurisdiction in the world. Also in the bottom 10 (beginning with the worst) are Neuquen, Venezuela, Chubut, Afghanistan, La Rioja, Mendoza, India, Zimbabwe, and Mozambique.