The Study On Assessment Methods And Parameters For Mining Right In China

Mineral resource is produced by man and nature together. On the condition of market economy, mineral resource is a commodity that has value. The use value of mineral resource is the fountainhead of its value, and the scarcity is the condition to determine whether the resource has the value. The value theories about mineral resource are the theory basement of mining rights assessment.According to present people's understanding on the mining right value, the method of mining rights assessment is a technical route to assess and value mining rights by quantifying the parameters in the aspects on geology, minerals and economy so on. As usual, based on different geological exploration degree and assessment objects and intentions, mining rights is mainly evaluated by the methods of return, market and cost, which generally includes DCF (Discounted Cash Flow), Return, Comparable Sales, as well as Geoscience Rating.The complexity of mining right market and the factors that affect mining rights value determines that mining rights assessment is a very subjective and challengeable task. This is mainly because that the data for assessment (past or present) are not necessarily reliable and there are too many suppositions. Especially exploration right evaluation is more difficult and complex. On the one hand, if the parameters used in assessement were different though for the same mining right assessment project, there would have different results. On the other hand, the accuracy and the rationality of assessment are mainly related with the adopted assessment methods. Therefore, only by selecting scientific and reasonable assessment method as well as the accurate parameter, the assessment value can be objective, fair and rational.Through the theoretical study and evaluation in practice, however, it can be found that the present mining right assessment has no perfect theory foundation, beyond the principle of objective, fairness and scientific. So the value can not be acceptable with no suspicion. At the same time, whether the selected parameters for assessment itself can be correctly defined and be accurately understood and controlled influenced the credibility of the value assessment in a deep degree. Presently in our country, mining right assessment is controlled as a stage prop by some interest clients for their special interests in most conditions. Or it is a muddled account under the shield of so-called "specialized" the form consciously or not.Precisely in view of the condition that mining right assessment plays a vital role inpromoting our country modernized mining industry economy development, the paper exhaustively expounded the contents and principles which suit for all kinks of traditionally and commonly adopted mining rights assessment methods. Many pointed analysis on how to select scientifically some important assessment parameters for main assessment methods was made. Moreover, on the basis of summarizing limitations on mining right assessment theories and methods commonly used in our country, the paper further discussed the approach to values of real options -which can effectively assess the project value- in mining right assessment field among the indefinite business decision.