WA ranks second in world for mining investment

Western Australia is the second most attractive jurisdiction for mining investment, moving up from fifth place in the year prior, according to the Fraser Institute Annual Survey of Mining Companies for 2018.

WA reversed a three-year downward trend and rose three places on the survey’s Investment Attractiveness Index, which takes into account several other indexes from the survey, to now only sit behind the US state of Nevada.

In all, 83 jurisdictions were surveyed for 2018, compared with 91 in 2017.

Association of Mining & Exploration Companies chief executive Warren Pearce said WA’s rise was driven by a jump of 12 places up the Policy Perception Index (PPI) from 17th in 2017 to fifth in 2018. 

The PPI measures the overall policy factors which affect investment decisions, including environmental regulations, taxation, political stability, and labor and skills availability.

“[WA’s rise up the PPI] follows improved responses regarding political stability, royalties and environmental regulation, and it can reasonably be interpreted that taking the gold royalty change off the table has helped WA’s ranking,” Mr Pearce said.

Nationally, in terms of PPI, WA’s closest rivals experienced decreases, as Queensland dropped one place to 11^th and South Australia fell 10 places to 24^th.

NSW rose four places 42^nd, while Victoria went up 14 places to 54^th.

Of all respondents from WA, 35.7 per cent said it only required two months or less to receive the necessary permit and license approvals to conduct exploration activities.

No other Australian state surveyed recorded more than 10 per cent within the same time frame.