Andina

Peru tops LatAm mining investment attractiveness index

Las Bambas

Las Bambas

00:00 | Calgary (Canada), Mar. 2.

Peru surpassed Chile this year as the most attractive mining jurisdiction in Latin America, Fraser Institute's Annual Survey of mining companies 2016 revealed.

"When considering overall investment attractiveness (policy and geology), Peru (28th) surpassed Chile this year as the most attractive jurisdiction in Latin America," the report reads. 

Thus, Chile (39th) became the second most attractive jurisdiction in the region.

"Chile is no longer the top-ranked jurisdiction in the region, after ranking 35th overall on the PPI in 2016, down from 26th in the previous year. Respondents indicated they were increasingly concerned over uncertainty concerning protected areas (+23 points), the legal system (+19 points), and the geological database (+17 points) in Chile," the report notes.

In Latin America and the Caribbean Basin, "the median investment attractiveness score improved slightly this year, placing the region between Oceania and Asia."

The median Policy Perception Index (PPI) score for Latin America and the Caribbean Basin also improved slightly over 2015. Overall, French Guiana (34th), Chile (35th), Guyana (50th), Mexico (53rd), and Peru (54th) are the most attractive jurisdictions in the region for investment based on policy.

On the other hand, Two Latin American countries were also in the bottom 10 jurisdictions based solely on PPI.

"These were Venezuela, which occupied the least attractive spot in the world, and Ecuador which was the 10th least attractive jurisdiction in the world based on policy," it indicates.

Argentina 

Argentina's median investment attractiveness declined by almost seven points this year, a marked decrease over both 2015 and 2014. "Argentina continues to rank as the least attractive region in the world for investment," it says.

While the median investment attractiveness score deteriorated, the median PPI score for Argentina actually increased in 2016, "although Argentina is still the second least attractive region in the world when considering policies only."

All but two of the Argentinian provinces saw their PPI scores increase this year. Salta had the second highest increase in its PPI score within Argentina, and the province is now ranked as the most attractive jurisdiction for investment in the country based on perceptions of the policy environment.

Venezuela

Venezuela (102nd) was the only Latin American jurisdiction (other than some of the Argentinian provinces discussed above) to appear in the global bottom 10 based on the country's investment attractiveness score.

World

At world level, Canada's Saskatchewan topped the investment attractiveness index, followed by Manitoba (Canada), Western Australia, Nevada (U.S.), Finland, Quebec (Canada), Arizona (U.S.), Sweden, the Republic of Ireland and Queensland (Australia).

On the other hand, the bottom 10 is composed of: Mozambique, Zimbabwe, India, Mendoza (Argentina), La Rioja (Argentina), Afghanistan, Chubut (Argentina), Venezuela, Neuquen and Jujuy (Argentina).

About the survey

The Fraser Institute Annual Survey of Mining Companies was sent to approximately 2,700 exploration, development, and other mining-related companies around the world.

It was conducted from August 30 to November 18, 2016.

The companies that participated in the survey reported exploration spending of US$2.7 billion in 2016 and US$3.2 billion in 2015.

(END) MVB

Published: 3/2/2017
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