23 Mar 2012

PNG fares poorly in rankings for investors in mining projects

4:21 pm on 23 March 2012

Papua New Guinea has been ranked the worst country out of a survey of 25 nations for mining projects in terms of the political risks for investors.

In its annual ranking, Denver-based mining business consultants Behre Dolbear, has ranked Australia, Canada, Chile, Brazil and Mexico as the top five nations in which to locate mining projects.

The nations were ranked on seven criteria: economic system, political system, degree of social issues affecting mining, delays in receiving permits, corruption, currency stability and the competitiveness of tax policy.

The Post Courier reports that the five lowest-scoring nations were Russia, Bolivia, the Democratic Republic of Congo and Kazakhstan with PNG bringing up the rear as the worst in terms of the political risk for mining projects.

Those with the greatest incidence of corruption are Kazakhstan, Russia, the Congo, South Africa and PNG.

The US tied with PNG as the countries with the most numerous delays affecting permits.