Application Of Discounted Cash Flow Method In Valuation Of Mining Rights In Mengtai Coal Mine

Coal resources, as the largest energy in our country, is very importance for industrial production, people’s life and national security. For a long time, the establishment of perfect circulation system restricted by economic system. It fails to perfect promote the economic development in the framework of socialist market economy.In 1996, the newly revised "the People’s Republic of China mineral resources law" was promulgated. The use of coal resources by way of entirely by the state free transfer into free circulation. Coal resource allocation gradually changed from the government leading to the dominance of the market. Value assessment of Mining rights of coal resources produces.Value assessment of Mining rights started late in China, but it during years of development in the international. The basic theory is very mature and complete. This brings great convenience to the development of China’s value assessment of Mining rights business at the same time, because of the different national conditions, raise new problems. This paper focuses on the research of assessment of Mining rights value by discounted cash flow method.The discounted cash flow method, one of the main method as the return type of evaluation method, is most commonly used in assessing the value of Mining rights in practice at present. It is simple, accurate, easy to understand. However, due to the cause of the nature of Mining rights and management system, discounted cash flow method in practical application did not closely combined with the situation of our country. Therefore, further study of the discounted cash flow method has important significance to the evaluation of the value of Mining rights.This paper mainly from the following aspects of Value assessment of Mining rights are studied, and draw the relevant conclusion:The first point, explore the nature of Mining rights, Mining rights value and the value of Mining rights evaluation by analysis of the concept of Mining rights, mineralresources and used of Marx’s theory of land rent and other related.The second point, through the process of discussion for the establishment of the model of discounted cash flow and select the main economic parameters in Mengtai coal mine, to analyze the selection of the problem of service life, cash flow and conversion rate of Mining rights. To solve the problem, carries on the reasonable improvement. And the Mining rights value of Mengtai coal mine were again assessed using improved method. Then to prove the way of the selection of parameters is improved through government guidance price, market comparison method and real option method. I hope to bring a sense of enlightenment for the Mining rights to coal enterprise value assessment in Inner Mongolia Ordos coalfield area.Limited to the factors the author’s ability, data and time, this paper also has some shortcomings. In the future, I will thoroughly study how to improve the way of selecting parameters of discounted cash flow method, and make an empirical test.