Concern over protected areas and disputed aboriginal land claims is tarnishing the Yukon’s shine again, says the annual survey of exploration and mining companies.

The survey by the Fraser Institute, released Tuesday, says the Yukon is the apple of industry’s eye when it comes strictly to the potential for finding minerals, rating fourth in the whole world.

Layer on the regulatory system and the uncertainty over land tenure, and the Yukon dropped to 12th among the leading jurisdictions in 2015, down from sixth in 2014.

“Those seem to be the two largest areas that are holding Yukon back,” policy analyst Taylor Jackson of the Fraser Institute said in an interview Tuesday afternoon.

Jackson said concerns over protected areas and disputed land claims are not unique to the Yukon but they are clearly responsible for the drop in the territory’s overall standing.

In the area of disputed claims, concern in the Yukon was the second-worst in the country, falling only behind B.C., he pointed out.

Jackson said 44 per cent of companies with experience in the territory said disputed land claims were a mild deterrent, 26 per cent described them as a strong deterrent and three per cent said they would not invest here because of it.

The 73 per cent of negative responses is second to the 77 per cent of negative responses in B.C. and just ahead of the 72 per cent in the Northwest Territories, he said.

In response to protected areas, 66 per cent of the companies registered a negative response, the fourth-worst in Canada, with the N.W.T. the worst at 75 per cent, B.C. at 70 per cent and Nunavut at 66 per cent.

Thirty-four per cent said it was a mild deterrent to investment in the Yukon, 26 per cent described it as a strong deterrent and two per cent said they would not invest in the Yukon because of it.

Included in the survey were a couple of anonymous comments from company representatives for each province and territory.

“The creation of arm’s length boards (YESAB) for conducting environmental assessments that are not governed by public service rules and are not under control of the government,” notes the vice-president of an exploration company, referring to the Yukon.

“These boards often outsource expertise to consulting firms to advise the board on the adequacy of proponent submissions, and the information requests and demands from these consultants and the board are strangling the industry at what should be a planning level study.”

Jackson said negotiating socio-economic agreements is also a factor tugging at the Yukon’s image.

Although the survey does not identify what companies found bothersome about socio-economic agreements here – whether it was the time it took to negotiate them or the cost – there is definitely a perception in the industry that they are a concern, he said.

The policy analyst and co-author of the survey results emphasized that while the territory has issues, it is still the 12th most attractive jurisdiction in the world to invest in out of 109 included in the survey, and the third-most attractive in Canada.

Western Australia was the most attractive in the world last year, while Saskatchewan was second, Alaska sixth and Quebec was eighth.

Five years ago, however, the Yukon topped the charts in the country.

In the area of disputed claims, it was 98th from the top and 81st in the category of protected areas.

In the category of mineral potential, it was fourth, with Western Australia rated number one, followed in second by Alaska and Indonesia in third.

In the category of room for improvement, the survey identified the Yukon as the third-highest in Canada behind the Northwest Territories and Nunavut.

The survey asked company representatives a variety of questions, ranging from advantages in taxation, security, political stability, quality of infrastructure and availability of skilled labour.

Most of the questions were answered by senior executive officers – 41 per cent company presidents and 17 per cent vice-presidents – or senior administrative staff.

The quality of the Yukon’s geological data base, for instance, scored eighth in Canada but 17th in the world.

Availability of skilled labour here was 10th in Canada and 47 among the 109 jurisdictions.

The Yukon was 10th in Canada under the availability of infrastructure, just ahead of the N.W.T. and Nunavut, and 81st from the top overall. Alaska wasn’t much ahead, finishing 76th from the top.

The Fraser Institute’s policy analyst said when considering remote regions like the Canadian North with relatively small populations, one might not fault the Yukon for not scoring high in the availability of infrastructure.

Nonetheless, it is a factor taken into account when companies are weighing where to invest their time and money, Jackson said.

“It is something miners will consider,” he said. “It’s just another piece of the puzzle, that once everything is accounted for, it will be factored in.”

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