Mongolia Drops in Annual Fraser Institute Mining Survey

By , 9 May, 2010, No Comment

Mongolia has dropped from 55th place to 67th place out of 72 jurisdictions in the annual Survey of Mining Companies 2009/2010, released on April 15 by the Fraser Institute, one of Canada’s leading public policy think-tanks.

This is Mongolia’s lowest ranking since 2006.  Mining industry executives rate Quebec as the world’s most attractive jurisdiction for mineral exploration and development for the third straight year

In the “policy potential index,” Mongolia was in the bottom 10 of 72 jurisdictions rated. Countries rated lower than Mongolia were the Congo (DRC), Zimbabwe, the Philippines, Ecuador and Venezuela.  In 2008/2009, Mongolia ranked 55th out of 71, in 2007, 61st of 68, and in 2006-2007, 62nd of 65.  California was also in the bottom 10 this year, ranked below Indonesia.

To download the survey, go to Survey of Mining Companies 2009/2010

As we had speculated in an earlier NAMBC newsletter, Mongolia’s rank may have been adversely affected by the fact that global questionnaires sent to mining experts were being filled out last year after the passage of the Nuclear Energy Law (with its provision for uncompensated expropriation) but before the signing of the final agreement on Oyu Tolgoi.

The Fraser Institute’s annual survey represents the opinions of 670 mining executives and managers worldwide on the policy and mineral endowment of 72 jurisdictions on all continents except Antarctica. Companies participating in the survey reported exploration spending of US$2.9 billion in 2009 and of US$3.6 billion in 2008.

Last year’s survey showed significant international pessimism towards new mining investment, but this year’s survey reveals a strong rebound in optimism. Almost twice as many miners plan to increase investment as hold it steady or decrease it, with 83 per cent of miners saying mining prices will rise and 20 per cent expecting substantial increases.

Source: NAMBC Newsletter April 30, 2010.  Visit NAMBC website here: North America Mongolia Business Council.

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