Research Of Investment Strategy In Mineral Resource Projects Of Enterprise

This thesis analyzes the mineral resources investment strategy which is based on the view of the investigated macroeconomic background and the investment environment of the mineral resources sector. This paper discusses the investment methods and mineral resources business strategies from the point of view of internal and external business investment environment in mining projects, value analysis, the selection of trading patterns, price and financing strategies, risk and risk control strategy.This paper solves some essential problems of the investment of current mineral resources which Chinese companies face to, such as the choice of self-investment or cooperation projects. How to select a better project? How to determine the value of a project? As the current market environment, there are more and more collaborations on projects. Not only investors but also for the new parties for cooperation, how to determine a reasonable trading pattern which can balance the interests of all parties is particularly crucial. The trading pattern often determines the fate of the project as well. In this thesis, we discuss deeply the trading patterns of mineral resources project:stock purchase, assets acquisition, exploration cooperation etc. We also compare the advantages and disadvantages of various trading patterns in order to find out a better mode.After the determination of the trading pattern of a project,there are some essential problems:to determine the value of mineral rights, cooperation on the price and financing strategies. Different trading patterns may form a various structure and risk structure and it also requires different price arrangements. No matter which trading pattern we use, the price is determined by the value of mineral rights. In the meantime, the financing strategy depends on trading patterns and price arrangements. For example, if the mineral rights holders think the price is not high enough for collaboration,they may accept the price with a commitment with the new party who needs to provide with post project financing. In this thesis, we analyze these effects in the project investment and cooperation to reveal the internal relations.Due to the specificity of the mineral resource projects, we call it a "high risk" industry. But the so-called "high risk" is a vague concept, why we call it's a high risk industry? How high? Where is the highest point? This paper investigates some of the major mineral resource projects at different stages and the risk control strategies.