MercoPress. South Atlantic News Agency

Chile, best country for mining investment

As in 2002, Chile in 2003 ranked top of the list among the best mining investment countries according to the prestigious Fraser Institute from Canada.

"Geological attraction is no investment guarantee if mining policies is not adequate" according to Chilean company executives interviewed for the Seventh Annual Mining Companies poll.

During 2003, "Chile, Australia, Quebec and Nevada", ranked high in the list because of their combination of geological attraction with favourable mining policies. However other areas such as British Columbia and Indonesia, with excellent geological potential "underscored because they have been harmed by policies that subtract points", said Liv Fredricksen, co-ordinator of the poll.

The poll has two basic ingredients, the Mining Potential Index, linked to geological attraction and the Political Potential Index which combines government policies such as regulations and the use of the soil. The Investment Attraction Index considers both the mining potential (60%) and political factors (40%).

Chile ranks top of the list with 92 points out of 100, a combination of 96 for Mining potential and 85 for Political potential.

Nevada is the US is second with 91 points (92 and 89) and Western Australia figures third with 88 points and Quebec fourth with 84 points. Other interesting areas include, Brazil and Peru, 82 points; Australia's Northern Territory 76; Russia 74 and Mexico 72.

Among the worst: Washington11; California 12; Wisconsin 16; South Dakota 23 and Colorado 24, while British Columbia only managed 30 points because of the least attractive mining policies in Canada.

The Investment Attraction Index was started in 1974 by the Fraser Institute, an independent institution from Vancouver, British Columbia.

Chilean Minister of Mines Alfonso Dulanto remarked that "this positive result is indicative that the debate we're involved in Chile, as to how mining companies should better contribute to the community have not had the least influence in the excellent business atmosphere for foreign investment in our country".

The Chilean Congress is currently considering how to obtain greater revenue from the very successful and profitable mining industry.