Advertisement

Saskatchewan tops ranking for mining investment: Fraser Institute

Saskatchewan tops ranking for mining investment: Fraser Institute
WATCH: Global's Ryan Kessler looks at what makes the province attractive to investors.

A new report from the Fraser Institute is painting a rosy picture of mining in Saskatchewan.

The report, released Tuesday, said Saskatchewan and Manitoba are the most attractive places in the world for mining companies to invest.

READ MORE: PotashCorp Q4 profit hit by weak prices, low margins for fertilizers

Saskatchewan placed second in the 2015 survey while Manitoba was ranked 19.

The survey ranks 104 jurisdictions around the world on a number of factors.

“Competitive tax regimes, efficient permitting procedures and certainty surrounding environmental regulations and land-claims have vaulted Saskatchewan and Manitoba to the top in the eyes of miners looking to invest,” Kenneth Green, a senior director at the Fraser Institute and a co-author of the report, said in a statement.

Story continues below advertisement

Saskatchewan appears to have struck a “fairly decent” balance between taxation and incentives, according to Rob Theoret, chief financial officer of Gensource Potash Corporation.

“Everybody wants to see taxes lower from a production perspective, but from a community perspective, people benefit from those taxes,” Theoret said.

READ MORE: Cameco CEO ‘cautiously optimistic’ that better days will come in 2017

Saskatchewan’s mining sector created $8.2 billion in GDP in 2015, according to the Saskatoon Regional Economic Development Authority (SREDA).

The province’s royalty structure gives investors certainty, said SREDA’s president and CEO Alex Fallon.

“And that’s what they’re looking for when they’re looking at making a billion dollar investment in a mining project,” Fallon said.

“They want that stability and I think this report highlights the strength of our stability again.”

Western Australia ranked third followed by Nevada and Finland.