Mixed results in latest Fraser Institute rankings

The latest Fraser Institute rankings reflect the rising concern held by investors in Queensland’s mining sector as a result of the State Government’s coal royalty tax hike, according to the Queensland Resources Council. In the Fraser Institute Annual Survey of Mining Companies 2022, the state fell to 28th place out of 62 jurisdictions on the question of policy perception, compared to 21st out of 84 in the previous year (scoring 67.81 compared to 80.33 in the previous survey. However it lifted to 13th place overall on the question of investment attractiveness compared to 18th in the last survey. A report on the survey highlighted the following comments - good and bad - about Queensland: "The Geological Survey of Queensland’s online data access is first-class." —an exploration company manager "The Queensland Government introduced a high royalty increase for coal without consultation and with no regard to any stakeholders." —an exploration company president "Land access compensation agreements are a major hurdle." — an exploration company president Poorer status on policy perception QRC chief executive Ian Macfarlane highlighted the fact that Queensland had dropped seven places in the international surveyy when it came to policy issues. “Government policies play a significant role in a company or country’s decision to invest billions of dollars into resources projects, and it’s clear many are now thinking twice about making those significant investment decisions in Queensland,” Mr Macfarlane said. “The full impact of an investment downturn will be felt in five to 10 years when new projects dry up along with thousands of jobs. “Queensland has abundant reserves of the resources the world needs from coal through to the critical minerals that will drive a decarbonised future and we should be at top of mind for potential investors. “Queensland’s overall survey score was saved by the state’s attractive geology. “On the eve of a Federal Budget that will again confirm the crucial importance of the resources sector to our economic strength, it’s time for the Queensland Government to reconsider its coal royalty tax increase. “Queensland’s economy, and thousands of future jobs, depend on long term investment in our resources sector and the State Government needs to take serious notice of survey results like these.” Reduced sample size Association of Mining and Exploration Companies (AMEC) chief executive officer Warren Pearce said the annual survey was a valuable indicator to how industry viewed the performance and supportiveness of governments and regulatory bodies. Based on 180 responses, the survey sample size was only sufficient to evaluate 62 jurisdictions, considerably less than in previous years, meaning that these results are less representative than in previous years, AMEC noted. “Despite the reduced sample size, the survey reflects the view that overall, Australia continues to be seen as highly desirable place for investment,” Mr Pearce said. "The survey’s overall Investment Attractiveness Index is determined by a combination of a jurisdiction’s mineral potential and policy perception. "Respondents to the survey have consistently indicated that approximately 40 per cent of their investment decision is determined by policy factor, and 60 per cent by mineral potential. "On overall investment attractiveness, Western Australia finished 2nd, falling from 1st place last year, leading the Northern Territory which came in 6th, up from 14th, and South Australia 9th up from 10th, Queensland 13th up from 18th, New South Wales 23rd up from 33rd. Victoria fell from 33rd to 47th this year. “All in all, these results reflect well on Australia’s performance, with most jurisdictions either maintaining or improving their position in the overall rating of investment attractiveness. “And while these results are encouraging, there is always room for further improvements here in Australia.” The pointed to the increase in Queensland coal royalties, greater uncertainty around tax increases for petroleum and mining sectors at a Commonwealth level and increasing levels of environment and heritage regulation across the board. “Australian governments must continue to take notice, and work with industry, to deliver greater certainty and efficiency to support the mining and mineral exploration industry,” said Mr Pearce. The Fraser Institute rankings put Nevada at the top globally when it came to the Investment Attractiveness score, followed by Western Australia, Saskatchewan, Newfoundland & Labrador, Colorado, the Northern Territory, Arizona, Quebec, South Australia, and Botswana. At 100, Nevada had the highest policy perception score this year, displacing the Republic of Ireland as the most attractive jurisdiction in terms of policy. Botswana ranked second and South Australia third, followed by Utah, Newfoundland & Labrador, Alberta, Arizona, New Brunswick, Colorado, and Western Australia.

Mixed results in latest Fraser Institute rankings

Industry Queensland

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