August 5 th , 2004
Miners look to SA, Ghana, Congo; shy on Zimbabwe AFROL News

22 January - Mining executives rating the investment climate around the world agree that "attractive geology does not guarantee mining investment if a region's policies are bad." In Africa, South Africa gets the executives' best rating, followed by Ghana and Congo Kinshasa ( DRC ). Investors are more insecure on Zimbabwe , mostly due to political instability.

Mining executives surveyed in the seventh Annual Survey of Mining Companies - released today by the Canada-based Fraser Institute - in general give an above average rating to the four African countries mentioned in the survey. Chile ranks highest overall, obtaining 92 out of 100 possible points.

South Africa competes well among the 53 areas surveyed, which mostly include Canadian, US and Australian states. With 66 points, South Africa ranks highest among the four African nations, followed by Ghana and the Congo (58 points). Much lower on the list, one finds Zimbabwe (41 out of 100 points).

The survey - which gives far less weight to the geological potential of mining than policies and stability - is the major annual measurement of investment attractiveness of states and countries for mining companies. In this year's survey, companies responsible for a combined total of US$ 642.4 million in international exploration rated the policy and mineral attractiveness of mining jurisdictions around the world.

Jurisdictions like Chile, Australia, Quebec, and Nevada, which bolster attractive geology with mining-friendly policies, do well on the overall investment attractiveness index, says Liv Fredricksen, the survey's coordinator. "Other jurisdictions like British Columbia and Indonesia , who also have excellent geology, are hurt by their policies which have lowered their score."

The results of the survey were used to create several indices. The Mineral Potential Index rates a region's attractiveness for new investment based on its geology. The Policy Potential Index is a composite index that measures the effects of government policies such as regulation and land use in attracting new investment. An overall Investment Attractiveness Index considers both mineral potential and policy factors.

Those regions most successful in competing with Africa in terms of miners' investments are mostly found in the Americas . Chile (92 points) is closely followed by the US state Nevada (91) and closely thereafter are the South American countries Brazil , Peru and Mexico . But the Americas also include the worst places for miners to invest, such as Bolivia (32) and California (12).
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