JOHANNESBURG (miningweekly.com) – The perception of South Africa’s mining policy framework improved slightly during 2013, the Canada-based Fraser Institute’s yearly survey of mining and exploration companies has shown.

South Africa achieved a policy perception index (PPI) score of 39.8 and achieved a ranking of 64 out of 112 regions in the 2013 survey, as opposed to a score of 35 and a ranking of 64 out of 96 regions in the 2012/13 survey.

The Fraser Institute explained that while geological and economic considerations were important factors in mineral exploration, policy climate was also an important investment consideration.

The PPI, which measured overall policy attractiveness by surveying 690 respondents across 112 jurisdictions from September to December, was composed from survey responses to questions about policy factors that affected investment decisions.

Policy factors examined included uncertainty concerning the administration of current regulations, environmental regulations, regulatory duplication, the legal system and taxation regime, uncertainty concerning protected areas and disputed land claims, infrastructure, socioeconomic and community development conditions, trade barriers, political stability, labour regulations, the quality of the geological database, security, and labour and skills availability.

Meanwhile, with regard to mineral potential, South Africa ranking 37 out of 112 regions surveyed, as opposed to 15 out of 97 regions in 2012/13, while the country achieved a score of 54.7 in the investment attractiveness index, up from 47.8 in the previous survey.

In the current practices mineral potential index, which was based on respondents’ answers to a question about whether or not a jurisdiction’s mineral potential under the current policy environment encouraged or discouraged exploration, South Africa ranked 55 out of 122, as opposed to 77 out of the 96 regions surveyed in 2012/13.

Meanwhile, Botswana remained the highest ranked African jurisdiction with a PPI of 74.2 and a ranking of 25 out of 122.

The country’s ranking for 2013 was, however, lower than that of 2012/13 when it scored 78.1, ranking 17 out of 96 jurisdictions.

The Fraser Institute stated that Botswana’s lower score on the PPI reflected a deterioration in the ratings for nearly all policy factors, most notably for regulatory duplication and inconsistencies, uncertainty concerning the administration, interpretation, or enforcement of existing regulations, its taxation regime and uncertainty concerning disputed land claims.