Canada is one of the largest economies in the world, and it recently made a bold move to strengthen its economic core. The country recently pulled out from the Kyoto Protocol to strengthen economic opportunities that the country has for investors. The move is likely to make Gold Juniors in Canada a more attractive investment option.
Peter Kent, the incumbent Canadian Minister of the Environment, stated that since 2007, the country has declared the fact that it does not intend to meet the current obligations and environmental requirements set by the Kyoto Protocol, a global project to stop and avoid global warming. The country has done little to achieve the set goals and guidelines of the project because of investment and economic issues. The Kyoto Protocol requires its members to achieve a 6 percent reduction in gas emission levels by the year 2010.
This bold move might get a frown from environmentalists, but opens a great opportunity for gold juniors. Mining companies now have better exploration opportunities in the country without being restricted by global environmental policies. Investors know that the Canadian government is very friendly to corporate interests. While also known for its strong environmental policies, this move shows that the government in Ottawa is able to look beyond environmental considerations when possible economic growth and profit are concerned.
Gold juniors and investors took this as a go signal to continue investing in the country and exploring for gold. Canada has a substantial amount of natural resources and a large mining industry. The country has historically been favored by investors because of its economic and political stability. It has four out of the ten top mining areas listed in the 2011 Fraser Institute Survey of Mining Companies. According to the same journal, it is home to seven out of the top 20 mining areas in the world.
Players in the mining industry did feel the volatility of gold, although for a short term, when it reached $1,900 per troy ounce. This is the first-ever quarterly decline in gold since the 3rd quarter of the year 2008. Merger and acquisition proposals still abound in the mining industry. With this declaration of Canadian support for the miners of the world, plans to develop more infrastructure and push explorations further are being drafted. The positive business policies and mining regulations of the country provide a good boost of confidence to the mining industry in general.
Marginal return on investment is set to improve as more junior gold companies are looking at top producers to reward them with significant investments in high value properties within the country.