The Fraser Institute”s annual survey reveals miners and explorers still believe Mongolia is a nightmare. It is seen as “suffering from endless tinkering with mining laws and regulations, resource-nationalism, creeping expropriation, and non-transparency”.

The Institute’s annual survey of mining companies, published recently, represented the opinions of 670 mining executives and managers internationally on the policy and mineral riches of 72 jurisdictions on all continents except Antarctica. Companies participating in the survey reported exploration spending of USD2.9 billion in 2009 and USD3.6 billion in 2008.

Miners also expect mineral prices will increase over the next two years: 64 percent expect mineral prices will rise moderately, while nearly 20% expect substantial increases, the survey said. Twenty percent or more expect peak prices for copper and gold, while 10% expect new peaks for silver, nickel, platinum, zinc and coal.

California is a least favorable jurisdiction along with Venezuela, Ecuador, the Philippines, Mongolia, Bolivia, Honduras and Guatemala. “Respondents said California“s staunchly environmentalist polices create a strong deterrent to investment by interfering with mining practices that are proven to be clean and responsible,” the report observed. “Unfortunately, the rest of the worst-ranked jurisdictions are developing nations that urgently need the new jobs and economic prosperity mining can create.”