Morocco is no longer among the 10 most attractive jurisdictions in terms of mining policies in the world, reveals the annual survey of mining companies by the Fraser Institute, which dissects 62 jurisdictions around the world.
“This report presents the results of the Fraser Institute’s 2022 Annual Survey of Mining and Exploration Companies. The survey is an attempt to assess how mineral endowments and public policy factors such as taxation and regulatory uncertainty affect exploration investments. The survey was released electronically to approximately 1,966 people between August 23 and December 30, 2022. Responses to the survey were tallied to rank provinces, states, and countries by the extent to which factors of public policy encourage or discourage mining investments”, explain the authors of this document.
According to them, geological and economic considerations are essential factors in mineral exploration, the political climate of a region is also an important investment consideration.
“Political factors examined include uncertainty regarding the administration of current regulations, environmental regulations, regulatory duplication, legal system and tax regime, uncertainty regarding protected areas and disputed land claims, infrastructure, socioeconomic and community development conditions, trade barriers, political stability, labor regulations, quality of the geological database, safety and availability of labor and skills,” add -they.
According to them, the Global Investment Attractiveness Index is calculated by combining the Best Practices Mineral Potential Index, which assesses regions according to their geological attractiveness, and the Policy Perception Index. A composite index that measures the overall policy attractiveness of the jurisdictions under review, and takes into account a range of considerations affecting investment decisions such as regulatory administration, legal system, tax regime, environmental policy, infrastructure, socio-economic development conditions, political stability, labor regulations, security or the availability of labor and skills.
Nevada, the most attractive in the world
Thus, the first jurisdiction in the world for investments based on this index is the American state, Nevada, after occupying the 3rd position in 2021. Western Australia, which was at the top of the ranking last year, placed 2nd this year. Saskatchewan, a Canadian province, continues to be on the podium, dropping slightly from a rank of 2nd in 2021 to 3rd this year.
The United States, Canada and Australia each have three jurisdictions in this year’s top 10, followed by Africa.
At the bottom of the table is Zimbabwe, which ranks as the world’s least attractive jurisdiction for investment, followed by Mozambique, South Sudan and Angola.
Also, in the bottom 10 (starting with the least attractive for investment) are Zambia, South Africa, China, Congo, Papua New Guinea and Tanzania.
“Africa is the region with the most jurisdictions (8) in the bottom 10. Asia and Oceania each have jurisdiction in the bottom 10.
What about Morocco?
Regarding Morocco, investors, surveyed by the Fraser Institute, expressed increased concerns about the uncertainty of the administration and application of existing regulations (+40 points), labor regulations and labor agreements. employment (+40 points), emphasizes Fraser Institute to explain Morocco’s decline. Investors also expressed concerns about contested land claims (+29), socio-economic agreements and community development conditions (+29 points), and trade barriers (+29 points).
As a result, Morocco takes 17th position with a score of 74.13 out of 62 jurisdictions. It was 2nd in 2021 out of 84 jurisdictions with a score of 82.56.
This decline also concerns its ranking in Africa. The Kingdom becomes the 2nd most attractive jurisdiction, overtaken by Botswana. The 3rd and 4th places are respectively occupied by Cote d’Ivoire and Burkina Faso.
“The mining industry is an important contributor to Canada’s economy and to economies around the world. It not only provides essential materials for all sectors of the economy but also jobs and government revenue. Mining contributes to global economic growth and Canadian mining companies operate in jurisdictions around the world. While mineral potential is obviously a very important consideration in encouraging or deterring mining investment, the impact of government policies can also be important in encouraging or discouraging investment in this important area of economic activity.
In addition, many regions of the world have attractive geology and competitive policies, allowing exploration investment to be diverted from jurisdictions with unattractive policies.
