Income Distribution Of Mineral Resources In China

In the market economy, a rational body always chooses a mode which is propitious to him to gain maximize income. As there is an abnormal phenomenon that price of mineral resources has a departure from value, some problems come into being. On the one hand, in the process of mining, cost of environment isn't considered. So the price of production factor and cost of enterprise are also distorted, which break the balance between supply and demand. As a result, mineral resources are exploited overly. Not only has a great influence on sustainable utilization, but also arouse the matter on mineral resources'safety. On the other hand, levying mineral resources compensation in a low rate can't embody the owner's interests completely. Besides, presently the distribution of resources'profits doesn't have an eye on local manager and resident, which affects local officer's enthusiasm and falls into a confusion of management.Now the profits distribution on mineral resources is the core to solve the problems that are inferred in the first paragraph. For the time being, there is short of systematic research on how to levy and to manage, how to distribute etc. Most of these are in a chaos. To reform actual system and set up the new distribution system is on the agenda. The thesis is just a try to propose some constructive advice.How to distribute income is the key to solve these sticking points. Of course, distribution is based on the income's achievement, and the distribution system also has a counteraction on income's achievement. Before answering these questions, firstly, we should have a clear realization on valuation of mineral resources, property rights, manner of levying and rate, and so on.Four theories are discussed at the beginning of the thesis. Considering that to explain the value of mineral resources is not enough if just using one of value theories. We should analyze the value of mineral resources using Work Value Theory, Property Rights, Income Distribution and Contract. And come to a conclusion that making the value of mineral resources achieved lies on four factors, labor, benefit value, scarcity and property rights.Then, reviewing five countries'distribution system in the world, they are USA, Canada, Australia, India and Russia. And having a contrast with China, indicated that the income of mineral resources owner isn't carrying out commendably. The branch to manage mineral resources on abroad, most countries are concentrated on single branch. But there are several branches in China. Especially, they have an eye on local residents'interests in the foreign, but in China, just a blank topic. So we should take local residents'interests into account.Before we have a new distribution system, we should know the characteristics of mineral resources income and who will take part in distribution, how about the relationships among them. Mainly focus on owner, investor, employee of mining company and inhabitant around mining area, how to assign profits. And construct a new income distribution system of mineral resources.As the owner of mineral resources, to gain the property rights and interests via levying royalty, high quality royalty and others, especially royalty which has been discussed as a key point. And in this thesis, investors are sorted into two kinds, including country as owner and other investors. As the owner of mineral resources, she can sell the mining rights and get the mining price, or add as the country's capital to gain the capital bonus. Others usually purchase mining rights, then exploit the resources, sell the mining products to achieve the expected profits.Detailed research on royalty, which comprises how to levy and on what rate, is carried out. Using the contract theory, result is that levying royalty on selling is better than others. And collecting data of coal industry to establish a function, have a conclusion that reference rate of royalty is 4.5 percent.Royalty is the chief factor to gain the profits for the owner, so the levying and managing system also have a great role. Establishing a logical way to levy and supervise, the country's rights can be implemented well. At the same time, reassigning between local and center government and taking care of resident are also the main aspects on distribution system.In the thesis, improving the earning system, and calculating the academic royalty rate for mining industry. Although the result is not right completely, there are many factors cannot be considered, the result has a little value to country's policy. Due to finite knowledge, there has a pity that quantitative analysis is not given on proportion of distribution between local and center government. This is the difficulty in the system, so further research should be done.