Research Onfoundation Of Western Mining Group Resources Equity Funds

Recent years,private equity funds(PE)becomes extremely active in the Chinese mar ket,it penetrated from the early major investment in emerging high-tech industriesto nearl y all business areas.It has been support a large number of enterprises of China more or less during the developing stage such as Alibaba,Mengniu and etc.SinceChina's first priv ate equity fund established in 2009,private equity funds in mining investment have boom ed rapidly.At present,there is China National Gold Group,Zijin Mining Group and man y large mining conglomerates have set up mining private equity funds.Though private eq uity funds as financial tools and technical expertise,personnel and other aspects of the ad vantages of investing,these large mining group companies carry out mergers and acquisiti ons in mineral on a global scale,it is a more advanced form which can increase investm ent efficiency capital and even improve the resources allocation from various social sector s.This article analysis the coming investment risk in Western Mining Group Co.,Ltd.("Western Mining Group" for short),partial problems existing in division of investment s ystem,prospects and opportunities of the mining industry,defines its position as a middle size company in the field of mining.Combined with the coming living environment,fin ancial status,the strategy and objectives in the further,author raises an idea of setting private equity investment funds in Western Mining Group as financial instruments to solve the Western Mining Group's existing financial resources problems.The funds supplies as a n investment and financing platform with the function of riskcontrol for Western Mining Group and give a well-organized market-oriented mining investment team.By promoting t he level of risk management it enables an optimal development and expansion.This paper proposes to establish a private equity fund as a financial instruments wor k for Western Mining Group's foreign investment service and gives a scheme andprocedur e in detail which shows a kind of innovation in mechanism and operation.