South Africa’s
mining rating better,
but not great
 
Toronto, Canada — MININGREVIEW.COM — 13 March 2009 – The 10 most inviting global destinations for mining investment are, with the exception of Chile, all in North America – but South Africa has improved its rating slightly according to an international survey.
 
Every year the Fraser Institute – an independent Canadian research organisation –consults some 3 000 mining companies involved in worldwide exploration and mine development.

Fin24.com reports that in the most recent survey 658 responses were received from companies representing about 24% of the global expenditure on exploration for non-ferrous minerals.

In a media release issued here, it revealed that South Africa’s index score had lifted from 34.6 to 40.4, but it was still ranked only 49th of 71 countries in terms of attractiveness for mining investment.

The release added that Botswana remained the most appealing in Africa, with a score of 64.9, while Tanzania with 41.8 also ranked above South Africa. Zimbabwe (19.1) and the Congo (24.1) joined countries like Venezuela at the bottom of the list.

The Institute said that if government policy and regulations were ignored, and one considered only technical factors in terms of the concentration of minerals in South Africa, the country would have moved from 49th to 27th position.

The report said that environmental regulations and tax did deter investment in South Africa, but far less so than uncertainty as to the interpretation of new mining legislation, regulatory inconsistencies and misgivings about land claims. South Africa had also received a poor score in terms of labour relations and security.

The availability of geological information, however, was a plus.