Researches On How To Invest In Foreign Iron Mine Resources In Our Country

The mineral resources are the important material foundation of national economy and socialdevelopment. As the main raw material of steel industry, the iron mine is used most widely and theconsumed quantity is biggest in the world. The iron mine is being praised to the "food" and"blood" for modern industry, whose guaranteeing degree relate directly to the national security andthe sustainable economy development in china. Although the total amount of iron mine resourceslies in the front of the world, the average per capita is low, and the resources quality is very bad.And, with the development of national economy in recent years, the demand of the steel materialis increasing quickly, the gap comparing internal production capacity of iron mine to the demandfor iron mine stone in the steel industry become bigger and bigger, the import of iron mine stone isincreasing fast, which affects severely the independence and the stability of the economicdevelopment in our country. Facing this trend, "walking out" to explore and develop the foreigniron mine resources, building up a group of supply base iron mine overseas is pressing for ourcountry's steel industry to acquire iron mine resources from foreign countries long-term, stably,safely, then lower the cost of the whole national economy develops.Though the experiences for direct foreign investment of iron mine in our country has alreadyincreased gradually, and has gained the initial effect, however, because of the lack of theoreticalguidance and policy supporting, especially there is no complete theoretical system on how tochoose the investment location, investment style and the risk management etc., which makes thepractice of our country's direct foreign investment of iron mine has some blindness unavoidably,and enlarge the investment risk objectively, so that it happen to some failure case such asShouGang's investment in Peru. For this, we should seek suitable strategies for country andenterprise according to these problems so as to make our country or enterprises invest the foreigniron mine healthily, stably and ordered. This text tries hardly to discuss the system includinginvestment location, investment style, and the operating mechanism for investors, and put forwarda series of policy suggestions to advance the foreign investment of t iron mine recourses in ourcountry, the analysis has a reference value to make the globalization strategy of mineral resourcesfor government and iron-steel enterprises in our country.This text mainly includes the following seven parts:The first part is an introduction, this part put forward the base point of the whole text startingfrom the contradiction between the quick development of steel industry and insufficient supply ofinternal iron mine, then elaborated the policy meaning, theoretical meaning and realistic meaning of this research, and generalizes the total way of thinking and main innovative points.The second part is the theories basis of this text. Introduced the general theories of directlyforeign investment, and analyzed briefly the guide meaning for investment in mineral industry,look back and review the existing domestic researches on direct foreign investment of mineralresources, and points out the deficiency in these researches, and the key problem that the follow-upresearch should value.The third part distributes the necessity and urgency of direct foreign investment of mineralresources from following aspects: the importance of the economic development and the nationalsecurity, the unbalance of mineral resources in world, the situation for international mineralindustry and the upgrading of China's international status, and discuss the conditions of directforeign investment of mineral resources from the aspects of internal economic environment andpolicy, international mineral industry's environment and experience for investment etc.The fourth part introduced firstly the endowment of iron mine resources in our country,disclosure the contradiction between the quick development of steel industry and insufficientsupply of internal iron mine, and analyzes the import of iron mine stone in detail and thedisadvantageous influence to the economic development of our country, and then point out that weshould change the using way of foreign iron mine, from import to direct foreign investment.The fifth part carries on a introduction to the practices of direct foreign investment of mineralresources in our country, and points out the defects in them, points out further the necessity that weshould build up the system of strategies on how to invest in foreign iron mine.The sixth part is the main body in this text. It sets up the system of strategies in direct foreigninvestment of iron mine resources that also be applicable to other minerals including the strategyon how to choose the investment location, the strategy on how to choose the investment style, thestrategy on how to choose the operating mechanism for investors and the strategy on how tomanage the risk. Among them, the strategy of investment location points out the step and methodof investment, and make use of evaluate model of comprehensive evaluation on internationalinvestment environment to get the best location for iron mine's investment The strategy ofinvestment style analyzes the two kinds of way, and makes use of Q theory to choose the best way.The operation mechanism of investors puts forward 4 kinds of mode, and discusses briefly themethod on how to choose; The strategy of risk management induces detailed many kinds of therisk and discusses the mechanism of risk defense accordingly.The seventh part puts forward some policy suggestions on how to encourage and support theenterprise to invest for iron mine resources overseas from the angle of country.The eighth part is a conclusion, pointing out the problem that this text has already resolvedand the defects in it, and then puts forward the key points that the follow-up research should attachimportance to.