The attractiveness of the Yukon to investment from mining and exploration companies has fallen, according to the Fraser Institute’s annual Survey of Mining Companies.

The work involves surveying mining companies across the world regarding attractiveness, the regulatory regime and confidence in a particular jurisdiction to accommodate their industry.

In investment attractiveness, the Yukon received a score of 73.26, down from a score of 82.43 last year.

It was ranked 20th out of 62 jurisdictions involved in the survey, compared to ninth out of 84 last year.

Saskatchewan scored the highest in investment attractiveness, with a score of 88.19.

The institute notes attractiveness is weighted 40 per cent by policy and 60 per cent by mineral potential.

Among the 12 provinces and territories – P.E.I. is not included in the survey – the Yukon was ranked seventh, compared to third last year.

Policy perception, the institute points out, is a composite index that captures the opinions of managers and executives on the effects of policies in jurisdictions with which they are familiar.

The Yukon scored 60.41, down from 79.77 in 2021, with a rank of 31 out of 62 compared to 23 out of 84 last year. The Yukon came in 10th in Canada, compared to seventh last year.

Respondents this year indicated increased concern in the Yukon over the socioeconomic agreements and community development conditions, the taxation regime and regulatory duplication, the institute said.

One unnamed executive is quoted as citing “Lack of clarity on the rules of First Nations’ role in the exploration and production process.”

The institute notes that overall, given its policy performance and geologic attractiveness, Canada is the second most attractive region in the world after Australia.

In a recent press release, the Yukon Party notes the territory’s ranking has dropped from 20th overall to 31st.

Among concerns raised by the industry are the issues of taxation and the duplication of permitting.

Taxation and permitting are directly under the control of the premier, the party points out.

“Investors around the globe look to these rankings when making investment decisions, and things do not look good for the Yukon,” says the release.

Yukon Party critic Scott Kent said despite the criticisms contained in the report, Premier Ranj Pillai and Energy, Mines and Resources Minister John Streicker continue to try to paint a rosy picture of how they’re managing the territory.

“I hope this drop in rankings serves as a wakeup call to the premier and the minister,” said Kent.

“What they are doing clearly is not working and they need to focus on issues in their control to return the Yukon to a more favourable ranking.”

In a statement issued May 8, the Liberal government noted the Yukon has a rich mineral endowment, including the critical minerals needed for our energy transition, and mining and mineral exploration remains of central importance to the Yukon’s economy.

“Our government continues to work to help stimulate new discoveries through the Yukon Mineral Exploration Program,” says the statement.

“This year, we’re investing $1.4 million to support 44 mineral exploration projects.

“It is expected that these projects will spend more than $4.6 million on exploration this season,” says the release.

“Through our Geological Survey, we are continually improving geoscience and mapping work that aids in new mineral discoveries and developments.

 “Our government is proud to work collaboratively with mineral sector stakeholders and First Nations partners, and we continue to promote the Yukon as a stable, world-class mining jurisdiction adhering to strong environmental, social and corporate governance practices.”

Best practices mineral potential ranks the jurisdictions based on which region’s geology encourages exploration investment or is not a deterrent to investment.

The Yukon was given a score of 81.82, with a rank of 10 out of 47, compared to sixth out of 84 in 2021.

Saskatchewan scored the highest in Canada with a score of 90.63 and a ranking of second out of 47.

Respondents to the survey were also asked about their experience with the permitting process.

In the Yukon, 25 per cent indicated they expected to get permits for exploration activities in two months or less, 25 per cent said three to six months and 25 per cent said seven to 24 months. The remaining 25 per cent said 24 months or more.

In Newfoundland and Labrador, 43 per cent indicated they would expect their permits in two months or less, 43 per cent indicated three to six months and the remaining 14 per cent said in 11 to 14 months.

In Alaska, 11 per cent said they would expect the permits in two months or less, 67 per cent said in three to six months and 22 per cent said seven to 10 months, but nobody indicated more than 10 months.

Asked about changes in time to receive permits over the last 10 years, none of the respondents indicated the time in the Yukon was shortened considerably.

Twenty five per cent said it was shortened somewhat, 25 per cent said it stayed the same, 25 per cent said it was lengthened somewhat and 25 per cent said it was lengthened considerably.

Asked if the jurisdiction met its own established timelines, 25 per cent said the Yukon met the timelines most of the time (80 to 100 per cent).

Twenty-five per cent said some of the time (60 to 80 per cent), 25 per cent said about half of the time (40 to 60 per cent) and 25 per cent said it rarely met the timelines (0 to 20 per cent).

For Alaska, by comparison, 67 per cent said it met its time line most of the time, 22 per cent said some of the time and the remaining 11 per cent said about half of the time.

The institute said another critical issue in the granting of exploration permits is transparency.

“When those prospecting for exploitable mineral deposits do not understand what the rules are or how they are applied, political interference and even corruption can enter the process, with the result that investment may be deterred.

For the Yukon, 25 per cent said transparency encourages investment in exploration, 50 per cent said it’s not a deterrent to investment and the remaining 25 per cent said it’s a mild deterrent.

For Alaska, 78 per cent said transparency encourages investment while the remaining 22 per cent said it was not a deterrent to exploration investment.