Perth, Western Australia’s capital city.
Western Australia has been removed from its top position in investment attractiveness, falling to fourth position, according to the Fraser Institute’s annual global survey of mining and exploration companies for 2020.
The state also fell from the fifth to 11th position when it came to the survey’s policy perception index.
All Australian states barring New South Wales has fallen in investment attractiveness since last year’s results.
The Canadian-based research organisation sent the survey to around 2200 individuals across the industry between August and November last year, assessing how regional prosperity and public policy had affected exploration investment.
A total of 12.5 per cent of recipients responded to the survey, representing 77 jurisdictions.
Nevada, the United States has taken Western Australia’s first position on the investment attractiveness index.
The Minerals council of Australia (MCA) chief executive, Tania Constable, said she was disappointed with her nation’s results.
“The release of the Fraser Institute’s Annual Survey of Mining Companies has sounded the alarm on the need for policy reforms by state governments to drive greater investment in Australia’s mining industry,” she said.
“While Australia remains an attractive place to do business, the survey results show other mining regions in North America and Africa are becoming more competitive as investment destinations because of improving investor perceptions of government policy.”
What makes an investment attractive involves multiple factors, according to the Fraser Institute’s policy analyst, Jairo Yunis.
“A sound regulatory regime coupled with competitive taxes make a jurisdiction attractive to investors,” he said.
Constable added the mining industry had a responsibility to the 240,000 people directly employed by the resources sector, and to the 1.1 million direct and indirect jobs in the mining and mining equipment, technology and services sectors.
“Australia cannot take mining’s contribution to jobs, investment and communities in the future for granted,” she said.
“Policy reform and greater investment will ensure that the minerals industry continues to contribute significantly to Australia’s economy and communities.”