Ontario doesn't make the Fraser Institute's Top 10 best places for mining investment

Ontario has fallen out of the top 10 list in the Fraser Institute’s annual global rankings of favourable mining jurisdictions for investment.

The Fraser’s Annual Survey of Mining Companies survey for 2024, released late last month by the public policy think tank, lists Ontario as dropping from 10th in last year’s rankings to 12th place among 82 jurisdictions around the world.

The researchers said some provinces and territories are falling short in capitalizing on their strong mineral potential due to the lack of a solid policy environment that would attract investments. 

In the report, mining and exploration company executives working in Ontario expressed increased concern over the taxation regime, labour regulations and political stability. On the flip side, there were decreased concerns over environmental regulations, the state of security and Ontario’s legal system.

In the comments section of the report, one unnamed exploration company president, operating in Ontario, had issues with environmental regulations.

“The Environmental Assessment process on some projects has raised concerns due to its complexity and delays.”

The annual survey is basically a report card to governments about their mining-related policies and the perception by mining and exploration company executives on whether a particular jurisdiction is a favourable place to invest. 

This year’s survey incorporates the results from 350 respondents evaluating 82 mining jurisdictions around the world.

Finland is ranked as the top-ranked jurisdiction in the world for investment attractiveness, jumping up from 17th place in 2023. Nevada comes in at second for the second year in a row. Alaska is ranked third, up from 11th in last year’s report. 

Two Canadian provinces — Saskatchewan (7th) and Newfoundland & Labrador (8th) — finished in the top 10.

Quebec, which finished in the top 10 for four consecutive years, tumbled to 22 out of the 82 jurisdictions listed.

Yukon, British Columbia and Manitoba have great geology, the report said, but finished 40th, 32nd and 43rd, respectively, based on policy factors alone.

Nova Scotia’s public policy has that province ranked among the worst in the world, finishing 76th out of 82. Nunavut came in at 59th with the Northwest Territories at 56th.

The consensus among survey respondents working in Canada was that uncertainty over disputed land claims, protected areas, environmental regulations, along with duplication and inconsistency in government regulatory processes, are hindering mining investment.

The Fraser rankings can be somewhat misleading due to the time lag on when the survey is done. 

The survey of mining executives was conducted electronically between August and December 2024 before being released by the institute on July 29. It doesn’t take into account recent elections and changes in government, as well as any new mining-related legislation or policies passed or enacted by government.

This year’s report also included a jurisdiction-by-jurisdiction analysis of permit times.

A mantra of the Ford government has been to speed up permitting times for new mines in Ontario. The Fraser Institute chose to focus on permitting for exploration projects. 

And that’s where the province still has some work to do, the report said.

In Ontario, 47 per cent of respondents said they were able to acquire the necessary exploration permits within six months. The rest said it takes 11 to 24 months or longer.

“Slow permit processing and a lack of decisive action,” was one comment expressed by someone in management of an exploration company.

U.S. jurisdictions, on average, have the highest percentage of respondents — at 73 per cent — who said they received exploration permits within six months or less. Across Canada, the respondents’ average was 45 per cent.

 “A sound and predictable regulatory regime coupled with competitive fiscal policies help make a jurisdiction attractive in the eyes of mining investors,” said Elmira Aliakbari, co-author of the study and director of the institute’s Centre for Natural Resources Studies.

“Policymakers in every province and territory should understand that mineral deposits alone are not enough to attract investment.”