SOMBA K'E/YELLOWKNIFE
Two recently released reports paint a bleak picture of mining industry confidence in the territory's regulatory and permitting system.

Two reports highlight bleak results of surveys of mining company leaders on their opinions of the regulatory system in the territory. - NNSL file photo

The Fraser Institute, a right-leaning think tank, surveyed mining and exploration companies operating in Canada for a report on permit waiting times and a separate report ranking locations around the world on investment attractiveness.

The Northwest Territories performed the worst in several areas, including the wait time for exploration permits, as well as other permitting processes. The territory's attractiveness rank dropped from previous years.

The permit time report states companies indicated 39 per cent of respondents wait more than seven months for permits, eclipsed only by Nunavut at 43 per cent. Fourteen per cent of respondents in Yukon waited more than seven months for permits.

The report indicates the time it takes to get permits here has increased over the past 10 years, with 23 per cent of respondents saying it has increased "considerably."

On top of that, the NWT had the poorest rating on the transparency of the regulatory system.

Premier Bob McLeod, who is also Minister of Industry, Tourism and Investment, was asked about the issue by Yellowknife North MLA Cory Vanthuyne in the legislative assembly Feb. 29.

McLeod said the results are proof the GNWT needs to improve its policies to attract exploration and mining.

"We are also committed to regulatory streamlining," McLeod said, adding the government plans to introduce a new Mineral Resources Act.

The premier pointed out some of the respondents to the Fraser Institute survey had been in the territory "a long time ago and haven't been back since."

In a news release, the NWT & Nunavut Chamber of Mines pointed to the results as one of the reasons for a "dramatic decrease" in exploration spending in the territory.

The release urged the federal and territorial government to "reduce permitting timelines, provide clear rules on permitting processes, settle land claims and increase certainty around lands open to development with balanced land use plans and policies."

The Fraser Institute also released its annual survey of mining companies report that rates the investment attractiveness of provinces and territories in Canada and around the globe.

The Northwest Territories ranked 35th for 2015 of 109 jurisdictions, a drop from 15th the year before. It has placed in the low 20s in previous years.

The territory's drop was attributed to policy related issues, a decrease of available labour, regulatory duplication and socio-economic agreements.

A lack of settled land claims was cited by several unnamed companies as deterrents to investment.

The ranking is based on a combination of factors that include regulations, taxation, quality of infrastructure and other policy questions. Those factors were given a weight of 40 per cent in the ranking, while the mineral potential of the jurisdictions was given a weight of 60 per cent.

New Brunswick and Nova Scotia were the only Canadian locations that ranked lower than the NWT, at 45 and 59 respectively.