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By Bruce Johnstone, Leader-Post February 25, 2015

Saskatchewan is the best place for mining investment in Canada - ahead of traditional mining powerhouses, like Ontario, Quebec and B.C. - and second-best in the world, according to the annual survey of mining executives by the Fraser Institute released Tuesday.

The survey of 485 mining executives representing global companies with exploration budgets totalling US$2.7 billion in 2014 and US$3.2 billion in 2013 rated 122 jurisdictions based on their geological attractiveness and how well they encouraged mining exploration and investment.

In 2014, Saskatchewan was ranked the top jurisdiction in Canada and finished second worldwide behind Finland, the conservative Vancouverbased think-tank said.

"In addition to being blessed with an abundance of mineral potential, Saskatchewan gets credit for having a government with a transparent and productive approach to mining policy," said Kenneth Green, the institute's senior director of energy and natural resources and director of the survey.

"The province offers a competitive taxation regime, good scientific support, efficient permitting procedures and clarity around land claims."

Five provinces finished in the top 10 worldwide: Saskatchewan, Manitoba (4), Quebec (6), Newfoundland and Labrador (8) and Yukon (9). Two of Canada's other major mining provinces didn't fare as well internationally, with Ontario ranked 23rd and B.C. 28th.

Economy Minister Bill Boyd said the survey confirms that Saskatchewan offers mining companies world-class resources, stable, predictable royalty and tax rates and a responsive, but fair, regulatory environment.

"Clearly, there is a very good resource here in the province, whether it's in potash, uranium or other minerals that we mine here in Saskatchewan,' Boyd told reporters Tuesday.
 
"We've been able to create a business climate here in Saskatchewan that's positive. There's a good workforce in Saskatchewan, a trained workforce, as well.'

Boyd cited technological advances, like the MARS system of online claims staking, that has made the province an attractive place for mining companies to invest. "That's why we've moved up the ranking such as we have,' Boyd said, referring to Saskatchewan's improvement from its seventh place finish in 2013.

Boyd said mining companies have also responded positively to the province's stable royalty and tax system. Recently, Jack Mintz of the University of Calgary public policy school, criticized the province's potash royalty and tax regime as being overly complicated and generous to mining companies.

"We've seen over $12 billion of (mining) investment here in Saskatchewan,' Boyd said, referring to the potash mining expansions resulting from the capital cost allowance and other changes introduced in 2005. "We may take a look at (royalty rates) sometime in the future, but at the moment we're relatively comfortable with them.'

But NDP economy critic Trent Wotherspoon said the Sask. Party government has its "head in the sand" over its resource royalty and tax regime. "There's definitely room for improvement on these policies. The government has been ... reliant on policies built well over a decade ago."

Wotherspoon said the province needs "a policy that serves Saskatchewan people's best interests for generations forward,' including a plan to invest non-renewable resource revenues for future generations.

bjohnstone@leaderpost.com 

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