ST. JOHN'S, N.L. — Newfoundland and Labrador is good as gold, according to a global mining industry survey.
The Fraser Institute’s 2020 survey of mining and exploration companies placed Newfoundland and Labrador in the top 10 jurisdictions for both investment attractiveness and policy.
The survey ranked 77 places, including several North American states, provinces and territories. Newfoundland and Labrador placed eighth in both categories.
Saskatchewan was the only other province to make the top 10, placing third in investment attractiveness and ninth in policy perception. Nova Scotia meanwhile ranked among the bottom 10 in the investment category and 24th for mining-friendly policy.
Jairo Yunis, a policy analyst with the Fraser Institute who co-authored a report based on the survey results, said the most attractive jurisdictions for investment tend to match their mineral potential with a competitive policy environment.
“However, Newfoundland’s improvement from (2019), when it ranked 28th in terms of overall investment attractiveness, was largely driven by improved perceptions by investors on its mineral potential,” he said. “When considering mineral potential alone, the province went from ranking 50th in 2019 to 11th in 2020, with no changes in its policy ranking.”
Exploration activity
Last year, the provincial Department of Industry, Energy and Technology processed 389 mineral exploration applications, more than in any of the previous five years. Expenditures for mineral exploration in 2020 were also up, climbing from $50 million in 2019 to $61 million last year.
Ed Moriarity, executive director of Mining Industry NL, said a combination of good people, solid infrastructure and strong geology and geoscience has placed the province in a position to succeed when it comes to this sector. He added the exploration and mining operations in Newfoundland and Labrador are quite diverse. In turn, this diversity helps attract further investment.
Saskatchewan 3rd most attractive jurisdiction worldwide for mining investment, Quebec and Newfoundland and Labrador also in global top 10.
— The Fraser Institute (@FraserInstitute) February 23, 2021
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“You see (the survey) every year, and Newfoundland and Labrador will vary from year to year, but I was quite pleased to see it in the top 10 again,” Moriarity said. “We want to see us in the top three, or as we like to say, the best place in the world in which to explore and develop a mine.”
Moriarity said a favourable commodity market for gold has certainly helped Newfoundland and Labrador.
“The number of companies that are active in the province compared to year over year is also a factor in terms of that general awareness,” he added, noting there’s been a lot of work happening over the years to promote Newfoundland and Labrador’s mineral potential. In the last couple of years, he’s noticed an uptick in the frequency of news releases touting the achievements of projects in the province.
Other opportunities
Moriarity sees another trend emerging that Newfoundland and Labrador is well-positioned to act on — green and low-carbon minerals are abundant in the province, including copper, nickel and cobalt.
“We have the potential here to realize that phase of development,” Moriarity said. “I think fundamentally as the world shifts in that direction, jurisdictions that are safe harbours, good legal and regulatory framework, that have a strong professional work force to avail of, that have the supply and service sector necessary to support it, all these factors are put into the risk equation for companies. And on the bottom line is the quality and quantity of the mineral occurrences and prospectivity you have in the province. That, I think, is always going to be a fundamental benefit for Newfoundland and Labrador as we move forward and capture these new opportunities and get our attention and direction focused there.”
Yunis cautioned the survey did identify some areas where the provincial sector could potentially improve in performance, noting 26 per cent of respondents indicated infrastructure was a factor deterring investment in Newfoundland and Labrador.
He said there is also a sense of uncertainty with respect to all Canadian provinces and territories when it comes to protected areas and land claim disputes.
Andrew Robinson is a business reporter in St. John's. [email protected] | Twitter: @CBNAndrew
