China’s Minerals Industry Mechanism Of Governance: A Perspective Of The Stakeholder

Minerals industry is a basic and strategic industry in the nation’s economy of China. At present, the external shock pressure from capital and the internal conflict tension forced China’s management system of minerals industry to reform. In such a setting, this dissertation researches the scientific questions on how the reform should be effective based on the stakeholder theory and governance theory.The review of related literatures shows that the collaborative governance which formed from stakeholders’ participation has been the first mechanism to reform the traditional centralized decision-making. Although many studies mention about stakeholder’s participation in corporative governance, there is still room to improvement from the frame, mechanism and system. It can be used for reference that the soft system methodology in the studies of natural resources management and the systematic mechanism in the studies of industrial governance.All minerals management system of major countries such as U.S.A, Canada and Australia made the stakeholders as the part of governance. They pay attention to management not only of production but of the allocation. However, China’s minerals management system still focuses on production management and ignores allocation management. The governance mechanism of stakeholders’ participation has not formed. It caused many problems on model and system of minerals management.Under the conditions of the market economy, the diversification of production factors makes the relationship of those stakeholders in the minerals industry as the distribution of investment based on various forms of capital. This embedded relationship helps to construct a framework of minerals industry governance, which core is a cooperation relationships organization that is composed of local government, enterprises and the third-party organization. This framework breaks the extreme authority of the government at social capital such as information and trust. It’s a balance system formed by multi stakeholders.We construct a cooperative game model based on the cooperation relationships organization as the core of the framework. The results of the model show that allocation should be(0.5, 0.5, 0) if the property right of resources is fuzzy, but(0.18, 0.3, 0.52) if the property right of resources is clear. It illustrates that interest coordination should be mainly transferred from the local government to the third-party organizations. Property rights system and the third-party organization in cooperation negotiation ability is the key to the reform of the China’s minerals governance.Based on the results the main conclusions are as follows:(1) Encourage stakeholders to participate in minerals industry governance by constructing a institution to interest’s expression, coordination and security.(2) Strengthen citizen quality and autonomous social democracy of the third-party organization.(3) Construct the public service system of minerals industry from two aspects of the top design of central government and the reform of local government.