Miners find SA unattractive
Jaco Leuvennink
Posted: Fri, 13 Mar 2009
miningmx.com
[miningmx.com] -- THE 10 most inviting global destinations for mining investment are, with the exception of Chile, all in North America. But South Africa has improved its rating slightly according to an international survey.
The Fraser Institute, an independent Canadian research organisation, every year consults some 3,000 mining companies involved in worldwide exploration and mine development.
In the most recent survey 658 responses were received from companies representing about 24% of the global expenditure on exploration for non-ferrous minerals.
South Africa's index score lifted from 34.6 to 40.4, but it is still ranked only 49th of 71 countries in terms of attractiveness for mining investment.
Botswana remains the most appealing in Africa, with a score of 64.9, while Tanzania with 41.8 also ranks above South Africa. Zimbabwe (19.1), and the Congo (24.1), join countries like Venezuela at the bottom of the list.
If government policy and regulation are ignored, and one considers only technical factors in terms of the concentration of minerals in South Africa, the country would have moved up to 27th position.
The report says that environmental regulations and tax do deter investment in South Africa, but far less so than uncertainty as to the interpretation of new mining legislation, regulatory inconsistencies and misgivings about land claims. South Africa also received a poor score in terms of labour relations and security.
The availability of geological information, however, was a plus. |
