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SA ranking drops
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Charlotte Mathews
Financial Mail
Friday, April 23, 2010
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SA has slipped down the rankings of attractive mining destinations in the latest Canadian-based Fraser Institute Mining Survey. It annually canvasses the views of mining executives operating around the world on issues like regulations, labour laws and mineral wealth.
On almost all measures, Botswana rated well above SA, and it topped all 72 countries surveyed on certainty of administration, interpretation and enforcement of regulations.
“In Southern Africa, Botswana seems to be the only country that truly understands the importance of mining investment to its economy,” said a manager of a US$50m revenue company. “Legislation is stable and a deal made is a deal honoured.”
One of the committees giving input to SA’s current mining charter review is examining this country’s competitiveness in attracting foreign investment. Perhaps it ought to consider the Fraser Institute’s findings.
On the policy potential index, a composite index showing the overall attractiveness of the jurisdictions surveyed, SA ranked 61st, one place behind India and seven places above the Democratic Republic of Congo. SA’s ranking has plummeted from 49th out of 71 jurisdictions surveyed in 2008/2009.
“The black empowerment regime in SA is very confusing and restrictive,” an exploration company manager said.
SA rated one notch below Zimbabwe, which was fourth from the bottom, on whether labour regulations deterred investment. More than half the respondents said SA’s labour regulations were a mild deterrent to investment; another 20% said they were a strong deterrent.
Zimbabwe was, unsurprisingly, close to the bottom of most categories.
“In Zimbabwe the corruption is impossible to deal with,” a mining technology company CEO said.
The institute said nine of the 10 worst scorers in the survey were developing countries, “which most need the new jobs and increased prosperity mining can produce”.
“In Southern Africa, Botswana seems to be the only country that truly understands the importance of mining investment to its economy,” said a manager of a US$50m revenue company. “Legislation is stable and a deal made is a deal honoured.”
One of the committees giving input to SA’s current mining charter review is examining this country’s competitiveness in attracting foreign investment. Perhaps it ought to consider the Fraser Institute’s findings.
On the policy potential index, a composite index showing the overall attractiveness of the jurisdictions surveyed, SA ranked 61st, one place behind India and seven places above the Democratic Republic of Congo. SA’s ranking has plummeted from 49th out of 71 jurisdictions surveyed in 2008/2009.
“The black empowerment regime in SA is very confusing and restrictive,” an exploration company manager said.
SA rated one notch below Zimbabwe, which was fourth from the bottom, on whether labour regulations deterred investment. More than half the respondents said SA’s labour regulations were a mild deterrent to investment; another 20% said they were a strong deterrent.
Zimbabwe was, unsurprisingly, close to the bottom of most categories.
“In Zimbabwe the corruption is impossible to deal with,” a mining technology company CEO said.
The institute said nine of the 10 worst scorers in the survey were developing countries, “which most need the new jobs and increased prosperity mining can produce”.
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