What Are the Best Jurisdictions for Investing in Mineral Exploration?
Jurisdictions can make or break exploration and mining companies. Even projects with fantastic mineral potential can become stale if located in an area with non-mining-friendly regulations or poor infrastructure. To help miners, investors, and governments assess (or improve) a jurisdiction’s potential, the Fraser Institute (a Canadian independent research organization) created the Annual Survey of Mining and Exploration Companies in 1997.
The survey creates a “report card” that governments can use to enhance their mining-related public policies to attract investment and boost local economies and employment. The survey is also valuable for others in the mining industry, the investment sector, academia, and the media, as it aids in evaluating potential investment opportunities and assessing various risk factors in different jurisdictions.
Rated the most important metric by most people, the Investment Attractiveness Index is a composite index that combines the Policy Perception Index (PPI) with the Best Practices Mineral Potential Index results. While the PPI is valuable for assessing a jurisdiction's attractiveness based on policy factors like regulations, taxation, and quality of infrastructure, it doesn't reflect the significant influence of a jurisdiction's mineral potential on investment decisions.
By combining policy perception with geological potential, the attractiveness index offers a true sense of which mining jurisdictions investors should pay attention to or avoid (see the tables below). The index is weighted 40% by policy and 60% by mineral potential, providing a comprehensive evaluation for readers.
Table 1: 2023 Investment Attractiveness Index Top Results
| Jurisdiction Ranking | 2023 Score | 2022 Score & Ranking |
| 1. Utah, USA | 90.00 | 73.79 - 17/62 |
| 2. Nevada, USA | 87.93 | 92.17 - 1/62 |
| 3. Saskatchewan, CA | 86.83 | 88.19 - 3/62 |
| 4. Western Australia, AUS | 86.58 | 88.26 - 2/62 |
| 5. Quebec, CA | 85.47 | 84.03 - 8/62 |
| 6. Manitoba, CA | 84.74 | 77.98 - 14/62 |
| 7. Arizona, USA | 83.97 | 84.23 - 7/62 |
| 8. Northern Territory, AUS | 81.72 | 84.64 - 6/62 |
| 9. Newfoundland & Labrador, CA | 80.48 | 87.35 - 4/62 |
| 10. Ontario, CA | 80.46 | 80.75 - 12/62 |
Table 2: 2023 Investment Attractiveness Index Bottom Results
| Jurisdiction Ranking | 2023 Score | 2022 Score & Ranking |
| 77. Cambodia | 36.38 | - |
| 78. Bolivia | 36.28 | 53.97- 52/62 |
| 79. Kazakhstan | 36.10 | - |
| 80. Senegal | 35.87 | - |
| 81. Zimbabwe | 33.43 | 34.29 - 62/62 |
| 82. Mozambique | 31.90 | 34.96 - 61/62 |
| 83. Argentina: La Rioja | 30.00 | - |
| 84. Solomon Islands | 25.22 | - |
| 85. China | 19.08 | 44.86 - 56/62 |
| 86. Niger | 14.61 | - |
Click here for the full 2023 Annual Survey of Mining Companies
When considering both policy and mineral potential Canada had the most jurisdictions in the 2023’s top 10. The remaining five are in the United States and Australia.
Niger ranks as the least attractive jurisdiction in the world for investment followed by China, Solomon Islands, and Argentina (Province of La Rioja).
While mineral potential is obviously a very important consideration in attracting or deterring mining investment, government policies also play a significant role in influencing investment decisions in this vital sector. Many regions offer attractive geology and competitive policies, leading to a shift of exploration investment away from jurisdictions with unfavorable policies.