Once home to four of the top 10 most attractive places for mining investment, Canadian provinces and territories have plummeted in the Fraser Institute’s annual survey of mining companies.
“We do this survey every year, but for the first time in a decade, no Canadian province or jurisdiction ranked in the global top 10,” said Ashley Stedman, a senior policy analyst with the institute.
The survey asks mining executives to offer their perception of how public policy — on taxation, the environment, and labour, among other issues — affects the industry in more than 80 active mining regions worldwide.
Those responses were combined with a region’s overall geological potential to form a score on the institute’s investment attractiveness index out of 100.
In 2018’s survey, Saskatchewan, Quebec, Yukon, and the Northwest Territories broke the top 10, and all Canadian regions except for Nova Scotia, Alberta and New Brunswick broke the top 20.
Saskatchewan claimed the top spot in the world for its mining-related policy.
But in 2019, every Canadian jurisdiction but Alberta, Nova Scotia, and Ontario, dropped down the list. And in the North, where mining is the main driver of the economy, all three territories dropped more than 10 places.
“Policy and regulatory uncertainty is escalating across the country,” said Stedman. “This should be a serious concern for policymakers.”
Uncertainty, delays, and lack of transparency
The single biggest drop in the country was in New Brunswick, which lost nearly 20 points on the index over trade uncertainty and decreasing potential.
But on the policy index, which measures how government policies make investment more or less attractive to the industry, every Canadian region suffered. The N.W.T. and Manitoba scored especially low, dropping 14 and 22 points respectively. Yukon dropped more than 10 points.
According to the survey, uncertainty over land claims and consultation requirements were a major driver of that decline,
In the N.W.T. and Nunavut, infrastructure was also a concern. Nunavut ranked below Nicaragua on infrastructure; the N.W.T. ranked below Mali.
In Yukon, everyone surveyed said a lack of transparency around the permitting process discouraged investment. The numbers were almost as bad in the N.W.T., where 80 per cent said it was a concern.
There and in Nunavut, uncertainty over which regulations will be enforced is almost as discouraging.
The territories also fared particularly poorly in a sub-survey focused on permitting times.
In Nunavut, N.W.T., and Yukon, no respondents expected to receive their permits in three months or less. In the N.W.T., 20 per cent said they expected it to take two years or more.
Everyone who responded in the Yukon and N.W.T. — and the vast majority of respondents in Nunavut — said permitting times are only getting longer.
“We want to see it as a report card on government policies,” said Stedman. “Investors are raising the red flag here that governments need to streamline regulations and provide certainty.”
Alberta scores higher, but before Teck Mine
Elsewhere in Canada, the findings are not much better.
In Quebec, which dropped 12 points, and British Columbia, which dropped four, mining executives voiced concern about uncertainty over unsettled land claims, protected areas and environmental regulations.
In Saskatchewan, down 10 points, it was tax policy and regulatory duplication that had executives worried.
The mineral industry did see some silver linings in Alberta, which shot up more than 20 places in the rankings and became Canada’s highest ranking jurisdiction on policy alone.
Like in Ontario, mining executives were less concerned about uncertainty over environmental regulations and enforcement following the election of a conservative government in Alberta.
But those numbers don’t tell the whole story — Stedman said the 2019 survey doesn’t reflect the fallout over Teck Resource’s Frontier Mine, a project that was abandoned amid significant public opposition.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
