State-owned Mining Rights Valuation

Successful valuation is the basic for the transfer of state-owned mining rights (SMR). Auction can not limit the loss of the value of SMR on a reasonable level. Currently, the main SMR valuation method used for calculating base price is reset cost method (RCM)-a method similar to MEE (multiple of exploration expenditure), because the bargainor is lack of investment plans. The real set price is generally much high than the base price, because the RCM miss a very important part of the total value which is the scarcity value of mineral products. According to Chinese laws, scarcity value is owned by the country which they call people. The value of SMR is enclosed in the value of the corresponding mineral product. In the value of a mineral product, there are the forming value of the SMR which stands for the cost and the explorator's due income, the mining value which is made of the investment cost and investor's due income, the scarcity value of the mineral.Different stakeholders in the SMR transfer pursue different benefits. There are at least 25 stakeholders in the transfer. Their natures are quite different in power, legitimacy and urgency and can be classify into 7 types. Even there are difference among the theoretical typology, the current typology and the potential typology. Some of the governmental department stakeholders have benefit conflicts in the transfer game. SMR...