PH slips in world mining survey

MANILA, Philippines — The Philippines further slipped this year as the sixth most unattractive to explorers of industrial and precious metals from being the world’s 14th least attractive place for global mining investments last year, according to an annual survey from a Canadian think tank.

The 131-page mining survey released on Friday revealed that the Philippines ranked the worst among 93 world jurisdictions based on specific indicators, such as “socioeconomic agreements/community development conditions” and “physical security due to the threat of attack by terrorists, criminals, [and] guerrilla groups.”

Other survey indicators wherein the Philippines ranked low included labor/employment laws/militancy/work disruptions (91st); disputed land claims uncertainty (88th); infrastructure/access to roads and power (86th); regulatory duplication/inconsistencies (84th); political stability (83rd); mining policy/implementation uncertainty (also 83rd); administrative/enforcement regulations uncertainty (82nd).

Moreover, environmental regulations uncertainty (80th); fair/transparent/noncorrupt/timely/efficient legal processes (77th); geological database/quality, scale of maps and access to info (75th); taxation regime (also 75th); trade barriers/tariff and nontariff/profit/currency restrictions (70th); protected areas uncertainty on wilderness, parks or archeology sites (58th); and supply of labor/skills (56th).

Faring worse than the Philippines among global mining investors are Honduras, Guatemala, Bolivia, Venezuela, and India, while slightly better but still rounding up the Bottom 10 this year are Kyrgyzstan, Ecuador, Indonesia and Vietnam.

Aside from Honduras, the Bottom 10 last year included Venezuela, the Democratic Republic of the Congo, Bolivia, Guatemala, India, Madagascar, Wisconsin in the United States, Zimbabwe and Indonesia.

In the 2010-11 Fraser Institute survey conducted from October 19 to December 23, 2010, the Philippines ranked 66th among 79 global jurisdictions for miners.

But in its 2011-2012 edition, conducted from October 4 to December 23, 2011, the country slipped to 88th among 93 areas.

“Unfortunately, all are developing nations which most need the new jobs and increased prosperity that mining can produce,” the Fraser Institute said of the bottom scorers in its 2011-12 survey.  “All were in or close to being in the Bottom 10 last year, except for Kyrgyzstan, which fell from the 39th spot the year before, and Vietnam, which fell from 55th.”

Based on index potentials in government mining policies and mineral explorations two years ago, the Philippines, in fact, ranked the third least attractive at 70th place among 72 areas, according to the 2009-10 Fraser Institute survey.

In the past four annual surveys, the Philippines ranked 88th out of 93 this year, 66th out of 79 last year, 70th out of 72 the other year, and 59th out of 71 in the 2008-09 edition.

At first place this year is New Brunswick in Eastern Canada, bouncing back from its 23rd place last year after slipping from its vaunted second place two years ago.

Other places in Canada were also in the Top 10.  Alberta, first place last year, is third this year, while Saskatchewan, third last year, is sixth this year.

Quebec, fourth place last year after falling from No. 1 for the first time in four years, is fifth this year.

“Quebec’s reputation floundered over the past two years due to uncertainty around royalty increases and proposed changes to the provincial mining act,” a co-author of the 2011-12 survey said in a statement.

Fred McMahon, vice president for international research at Fraser Institute, said miners prefer to do business in other places such as New Brunswick and Alberta, where mining policy is clear and the government is resource-friendly.

Manitoba, ninth place in 2009-2010 and 2010-11, falls to 20th this year.  “Respondents blasted Manitoba for its mishandling of First Nations consultations, which they say creates excessive delays in processing permits and licenses, that’s damaged the province’s reputation and is reflected in the rankings,” McMahon said.

Yet another Canadian area on top is the Yukon, a mining-rich territory at 10th this year after placing 15th last year.

At second place this year is Finland, up from fifth last year, while Sweden remains at seventh place for two years in a row. “The presence of these Nordic countries among the world’s most preferred mining jurisdictions shows that environmental stewardship and natural resource development can go hand in hand,” McMahon stressed.

From second place last year, the US state of Nevada is eighth this year.  Another US state, Wyoming, is fourth this year after placing 10th last year. But another US state, Utah, falls to 21st this year from sixth last year.

Ireland makes it to ninth place this year after landing 16th last year.

For the first time since the surveys began in 1997, Chile is out of the Top 10. At eighth place last year, Chile slips to 18th place this time. –Businessmirror