Manitoba more attractive in mining investment survey

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This article was published 06/05/2023 (1239 days ago), so information in it may no longer be current.

Manitoba moved up the ranking in this year’s edition of the Fraser Institute’s Annual Survey of Mining Companies, but still lags behinds its provincial neighbours as the global demand for critical minerals heats up.

The province ranked 14th this year — up from 32nd last year — in investment attractiveness, the key index of the global survey that ranked 62 jurisdictions around the world including all nine provinces and three territories in Canada, nine U.S. states and six states and one internal territory in Australia.

Manitoba was the fourth highest ranked Canadian province behind Saskatchewan, ranked third, Newfoundland and Labrador fourth, Quebec eighth and Ontario 12th.

Despite being among the top 10 most attractive jurisdictions for mineral potential Manitoba ranked 24th when considering policy factors alone. But industry officials are still heartened that the ranking is moving up after a year of more positive political support.

In the Fraser institute’s survey, the investment attractiveness index combines the mineral potential index and the policy perception index

John Morris, executive director of the Mining Association of Manitoba, which represents the companies with operating mines in the province including Vale, HudBay Minerals and Tanco, said, “The provincial government has really taken a hold of the priority of mining as an economic growth opportunity.”

He said there are reasons why the ranking has improved over the past year.

“I can honestly say the departments of Natural Resources and Economic Development have really embraced consultation and engagement with industry to work on those policy points,” he said.

MaryAnn Mihychuk, president of the Manitoba Prospectors and Developers Association, was also encouraged by the results.

“It is fantastic news,” she said. “We want people to understand that Manitoba has great mineral potential and that we are working hard to improve our reputation and the industry has had a strong endorsement from the Premier.”

But there are still plenty of challenges. Jim Campbell a veteran in the exploration industry in Manitoba who is currently on the board of directors of a couple of companies active in Manitoba, said that while the ranking may be getting better the working environment is still difficult for companies in the field.

He said that while it’s a good thing that the mining branch is now making an effort to fill positions that were badly depleted in recent years, it will take some time to replace the body of knowledge that left the department.

“It’s horrible,” he said, “Permitting is crucial. Without a permit everything else is null and void.”

Elmira Aliakbari, director of the Fraser Institute’s Centre for Natural Resource Studies and co-author of the study, said overall Canada continued to be second most attractive region in the world following Australia.

“However,” she said. “It is worth noting that Canada’s high ranking is largely driven by strong mineral potential not by the policy environment. When we only consider policy perception Canada drops in the rankings and becomes the fourth most attractive.”

The survey only has 180 respondents from around the world, it is considered a barometer and not a detailed analysis.

Aliakbari said the top barriers for investment in Manitoba were uncertainties over disputed land claims, protected areas and environmental regulations.

“About 80 per cent of responses for Manitoba indicated that uncertainties concerning disputed land claims was a deterrent to investment compared to only nine per cent for Nevada and zero per cent for Utah,” she said.

In an email exchange, Jeff Wharton, minister of economic development, investment and trade, pointed out the record-setting $170 million in mineral exploration in the province last year.

“We’re not letting up and continuing to press on,” he said. “Manitoba is open for business, and we are committed to advancing shared goals, promoting economic reconciliation, protecting the environment, and creating long-term growth and prosperity for all Manitobans.”

martin.cash@freepress.mb.ca