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Later stage projects are located in regions that are on average less jurisdictionally safe, according to a study of Mining Intelligence data and the Fraser Institute's Investment Attractiveness Index.
Mining Intelligence tracks several thousand properties throughout the world at various stages of development. The data was paired with the Fraser Institute's 2017 annual study of Investment Attractiveness which poll miners on how friendly a jurisdiction is to mining. Jurisdictions are assessed on levels of taxation, regulation and quality of infrastructure. The most attractive jurisdictions were Republic of Ireland at 84% and Finland at 89%. Ranked near the bottom were Venezuela at 36% and Bolivia at 34%.
The overall average, indicated by the light gray line, show that early stage projects rank in the mid-seventies. Projects that have reached the permitting stage drop to the mid-60s.
Properties with exposure to various metals were compared to the overall average. Projects with graphite exposure tended to fall below the overall mean while iron projects placed above it.
"Miners have to work in riskier jurisdictions to find the next generation of projects that are viable enough to turn into a mine," says Katja Freitag, managing director of Mining Intelligence.
"Miners have to learn to manage risk and work hard to develop the trust of local stakeholders if they are going to be successful."
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