The Assessment Of Mining Rights Value Of Galena In Hei Shan

This paper is focused on the value of the mining rights, researching the influencing factors of the value of the mining rights, try to find a new method of assessment, applying the real option pricing model to the valuation of the mining rights from the theoretical and applied perspectives on valuation and related issues of mining rights system, comprehensive introduction to the analysis of its feasibility and inadequacies.China is rich in mineral resources, the per capita less in actual mining, Most of them have not been rational and effective use. At first the valuation of the mining rights is for decreasing the loss of state-owned assets. Lately development of China’s mining rights market is after1996, the implementation of the mining rights to obtain compensation and mining rights market is divided into a transfer market and the secondary market, and transferring these two processes need to assess when the evaluation of the mining rights vigorously developed. Mining rights assessment system is not perfect, so we can refer to the following several major foreign countries.Commonly used assessment methods of mining rights are descripted, analyzing their weaknesses that is to ignore the uncertainty that may exist in the future. And this uncertainty is valuable, the lack of flexibility of these assessment methods. Real option make up for this shorting. Linking B-S model parameters and the value of mining rights factors form a real option. Seriously the various parameters were researched to determine the real options model. Volatility parameters are by the value of mineral resources to perform sensitivity analysis to identify the greatest influence, so its volatility is the volatility of the underlying asset.After sensitivity analysis, it is found that mineral prices is the most important influencing factors, the use of the statistical theory of price to strike a number of years before the historical volatility, and this volatility as a model of successful asset price volatility.Studying previous research scholars, the author has a little view of the maturity of the real options model parameters. I believe that mining to mine infrastructure construction will take some time before the mine beginning infrastructure time is also included in the effective period of the mining rights. The mining rights are not like general contract that can be a one-time completion of the transaction immediately, it needs an exploitation time, and resource extraction requires a certain amount of time, selectable time to exercise the option to shorten the maturity of the options ahead. Therefore the value of the mining rights option model period t should be as follows:t=T-M-NT-the service life of the mining rights; M-mining before the time of the mine infrastructure; N-the exploitation of resources needed time.In this paper, using the real options method and the discounted cash flow method to assess the value of the mining rights of a galena. Results of the assessed value of the real options method is higher than the assessed value of the discounted cash flow method, this part is the flexibility to select the right of the value also the results show that the use of real options method theoretically feasible assessment of the value of the mining rights. But in practice, thinking of this assessment process, the use of real options method assessment of mining rights also has a certain difficulty. First, this approach is not easy to promote, second the assessed value of the real options method is not accepted.