The world's lowest and highest-risk jurisdictions for mining investment are revealed in Mining Journal Intelligence's (MJI) World Risk Report 2024 feat. MineHutte ratings.
The World Risk Report is a comprehensive evaluation of mining investment risk, featuring assessments of 117 jurisdictions globally. Risks are assessed across six risk categories (Legal, Governance, Social, Environmental, Fiscal and Infrastructure), using 13 data-driven ‘Hard Risk' metrics, including Regulatory Risk Ratings by legal consultancy MineHutte, MJI's partner. In addition to the Hard Risk indicators, which account for 80% of risk scores, jurisdictions are assessed on Perceived Risk, based on the results of MJI's World Risk Survey, which was completed by 439 mining professionals and experts.
Register here for a free webinar marking the launch of the 2024 report.
Ontario tops the table
Ontario was this year's lowest-risk jurisdiction globally. The Canadian province scored 74.2 on the Investment Risk Index (IRI) – the key measure of overall risk in the report. The score is equivalent to an A risk rating, meaning low risk. IRI scores are out of 100, with higher scores meaning lower risk.
Ontario was the top-scoring (lowest-risk) jurisdiction in the Legal risk category and performed well in the Governance and Social categories. It ranked seventh in MJI's new Environmental risk category, which compares jurisdictions on EIA approvals risk, water stress and access to low-carbon electricity.
Nevada was the second lowest-risk jurisdiction, scoring 73.1. The US state ranked second overall on Legal risk, with strong performances in the Governance and Environmental categories but a weaker showing in the Social risk category. Canadian provinces and US states made up 18 of the 20 lowest-risk jurisdictions.
Highest risk
At the other end of the risk table, Venezuela was the highest-risk jurisdiction with an IRI of 31.6, or a D rating, meaning exceptionally high risk, with weak scores across the board.
The Democratic Republic of the Congo (DRC) was second from bottom, scoring 33.9. Other exceptionally high-risk jurisdictions included Mali, Burkina Faso, Guinea, Tajikistan and Russia.
Risk trends
Global risks rose to new highs in 2024, with the average IRI falling to 54.4, or a CCC rating, meaning moderate to high risk, from 58.9 in 2023 (scores were affected by the addition of the new Environmental category and changes in jurisdictions assessed). Significant falls in IRI scores were recorded in Burkina Faso, Panama, Mexico and Russia.
Canada was the lowest-risk region, with an average score of 70.8, or an A rating (low risk), across 11 provinces evaluated in 2024. Asia was the highest-risk region, with an IRI of 44.5, or a C rating (very high risk).
The World Risk Report is available here. Premium subscribers can access the report for free.
MJI and MineHutte are holding a free webinar to mark the launch of the report on Monday, January 13, at 2pm GMT, featuring analysis of global and regional investment risk trends and a discussion on rising risks in West Africa. To register click here.
