Drops off the list of 91 countries according to Fraser Institute Annual Survey of Mining Companies for 2017

India is no longer among the most attractive regions for investment in the mining sector, says an international report. According to the Fraser Institute’s annual survey of mining companies, after being ranked among the bottom 10 countries at 97 of 104 in the Investment Attractiveness Index in 2016, and at 73 in 2015, India has been dropped from the list of 91 countries in 2017.

The survey, conducted in late 2017, is ranked by combining a metric ‘Best Practices Mineral Potential’ index, which rates regions based on their geologic attractiveness, and the ‘Policy Perception Index’, a composite index that measures the effects of government policy on attitudes toward exploration investment. However, the Policy Perception Index alone does not recognize the fact that investment decisions are often sizably based on the pure mineral potential of a jurisdiction.

In February, the Supreme Court cancelled all the iron ore mining leases in Goa, with effect from mid-March 2018, thereby effectively banning all operations from then onwards. Goa is known for its prolific iron ore reserves and mining has played a significant role in boosting the state’s economy.

“The mining lease renewal judgment by the Supreme Court on Goa would expectedly have a far-reaching impact not only on the state, but also on India’s image as an investment destination. In the last 10 years, iron ore mining has added Rs. 30,000 crore to the exchequer and brought in around $7 billion worth of foreign reserves,” the survey report said.

It adds, “The limitations put by the legislative system on mining industry in the form of cap on iron mining (in Goa and Karnataka), high export duty, and permission for export (of iron ore from Karnataka) would impact not only the investment options in the country but also all those individuals directly connected to the mining sector. This would further generate a slump on the already adverse unemployment rate in the country.”