Study On The Determination Of Discount Rate In Mining Rights Evaluation

Mineral resources is the important material base of the national economic constructionand social economy development. The reasonable development and use of mineralresources is a vital event, it has important strategic significance. The establishment ofmining right market is to guide the rational allocation of mineral resources through themining right transfer and the circulation.Mining right evaluation plays an important role in the process of circulation. Theestablishment of mining right market in China, however, has only a dozen years so far. Theresearch about mining right evaluation is only more than ten years. There are also manyneeds of further exploration in the theory and practice. In mining right evaluation,discounted cash flow method is used more widely, and is relatively mature method. Themethod mainly involves the determination of three parameters: the future net cash flow, thefixed number of year, and the discount rate. The determination of the discount rate has longbeen one of the mining right debates.At present, the determination of the discount rate is based on the risk in mining rightevaluation parameters determine guidance accumulation method, and the ministry of landand resources in2006,.involving the national collection of the price of the mining rightevaluation, geological exploration degree above for exploration of mineral exploration rightand (application) of mining right evaluation take8%discount rate, degree of geologicalexploration for the detailed investigation and exploration right evaluation discount rateunder9%."Guidance" to different risk rate of return required by the setting of agv, themineral right appraiser just numerical and accumulation can he saw fit. This methodadvantage is highly feasible, deficiency is the selection of discount rate is affected by thesubjective of the appraiser, lacks the corresponding basis; the discount rate of the "eight ornine" selection is not scientific.This thesis is trying to use the financial management of related theory model to study theissue of mining right evaluation to determine the discount rate. Paper first study of miningright and mining right market, through analyzing the concept of mining right, this papersummarizes the characteristics of mining right and the mining to analysis with therelationship between the ownership of mineral resources. Then study the mining rightmarket in our country, the analysis of the current market structure of mining right market inour country, the participants and the role of the mining right market. Then study miningright evaluation at home and abroad and the related theoretical research, on the basis of the analysis of the discount rate in mining right evaluation of the economic substance, the riskof mining project, and the measure of risk, combined with relevant theory and model offinancial management, using concrete examples to calculate the discount rate.