Some investors have started to believe that at the end of the province of British Columbia is not the Pacific Ocean — but a dead end, an impassable region where resource projects go to wither and die. Many LNG and pipeline dreams have fallen afoul of B.C.’s intractable regulatory quagmire or an elusive social license that they can’t apply for at a government entity.
While oil and gas companies have long complained about B.C.’s hostility to energy projects, the mining sector has also begun to feel the heat.
Not surprisingly, British Columbia was ranked as the least attractive jurisdiction in Canada for mining development, according to the latest survey by the Fraser Institute of more than 260 mining executives globally.
Survey respondents pointed to uncertainty concerning disputed land claims and environmental regulations as key factors that made the province unattractive.
“The sum of negative responses citing these two areas as deterrents to investment was 78 per cent and 74 per cent, respectively,” the Fraser survey noted. “In addition, 67 per cent of respondents for British Columbia were deterred by uncertainty concerning protected areas. Investor concerns related to disputed land claims and protected areas likely reflect the ongoing tensions in the province over land title issues.”
Some of the anonymous quotes from investors in the survey focused on how Trans Mountain pipeline project’s unpredictability hurt sentiment, and “failure to coordinate provincial and federal permitting processes deters investment.” Only 14.3 per cent of respondents said B.C. regulators meet their own timelines set for decisions on projects.
Other Canadian jurisdiction hardly impressed either. Fraser noted that for the first time in a decade, no Canadian jurisdiction ranked in the top 10 for “investment attractiveness”.
Saskatchewan maintained its places as the country’s most attractive jurisdiction for investment (ranking 11th on this year’s survey index, down from 3rd last year) followed by Ontario (16th up from 20th), Quebec (18th down from 4th) and British Columbia (19th down from 18th).
Here’s what you need to know this morning:
- ‘This is just the beginning’: Coronavirus roils global markets, putting rate cuts back on the radar
- Global stocks pause after coronavirus shakeout
- Bank of Montreal profit rises 5.4%
- Scotiabank profit tops estimates on strong growth in global banking and markets
- End of blockade in central Ontario clears way for train service to resume
- Alberta legislature to resume with throne speech, tabling of blockade bill
- Kenney says feds sank Teck mine with deadline change, but Ottawa says ’not true’
- B.C. tells inquiry money laundering has warped economy, fuelled opioid crisis
- Caltex Australia fields more suitors, appoints temporary CEO
- ‘Disappointment, fear and anger:” Indigenous communities blindsided by Teck’s decision to pull Frontier
- Why Teck decided to shelve its controversial oilsands project
- Scrapped: How nearly $150 billion worth of energy projects have been shelved in Canada
- Teck’s shelved project tells the world Canada is a difficult place to do business: Deloitte
- Bank of Canada deputy governor Timothy Lane to give a speech on the future of money to Rendez-vous FinTech 2020 conference in Montreal
- Officials from the Impact Assessment Agency of Canada provide a briefing to the House of Commons environment committee
- The Parliamentary Budget Officer will post a new report entitled “Labour Market Assessment-2020″
- The Canadian Federation of Agriculture will hold a press conference to discuss the impacts that rail blockades are having on Canadian farmers and the Agri-Food industry in Ottawa
- Agriculture Minister Marie-Claude Bibeau will make a funding announcement in support of the Canadian Agri-Food Sustainability Initiative (CASI) at the Canadian Federation of Agriculture Annual General Meeting
- CRTC hearings on mobile wireless services in Gatineau, Que.
- Alberta Premier Jason Kenney and Justice Minister Doug Schweitzer on a bill to protect essential infrastructure in Edmonton
- The 30th session of the Alberta legislature opens with the throne speech in Edmonton
- The Canada Energy Regulator will hear oral Indigenous knowledge on an application from NOVA Gas Transmission Ltd. to build a natural gas pipeline in Alberta
- Opening statements at the Cullen Commission of inquiry into money laundering in B.C.
- Notable Earnings: Bank of Montreal, Bank of Nova Scotia, Aimia Inc., Thomson Reuters, Gibson Energy Inc.
It’s hard being a resource developer in Canada. Teck Resource Ltd., the company that cancelled its proposed $20 billion Frontier oilsands mine over the weekend, already has a lot on its plate as it develops its commodity resources. Gabriel Friedman writes on why the company decided to pull the plug on the controversial project.
— Please send your news, comments and stories to firstname.lastname@example.org. — Yadullah Hussain @Yad_Fpenergy
With files from The Canadian Press, Thomson Reuters and Bloomberg