Comparative Analysis of Mining Financing

Abstract: Mining of mineral exploration and mining enterprises in the manufacturing process need to be fund raising, and financing is an effective use of Economic behavior. In this paper, the financial investment of mining, the main problems, the financing channels can be analyzed and propose policy recommendations to promote mining finance.

Keywords:: mining finance, mining, capital markets, securities financing, commercial financing
1, of the problem
Funding sources to solve problems facing the development of China's mining industry one of the main problems. And the current capital market of mining problems in the market mainly in the low level of mining investment and financing over-reliance on loans, lack of government financial investment, the mining enterprise asset-liability ratio high, heavy taxes mining companies lack of funds led to the accumulation of business skills. Therefore, the mode of financing of mining is of great practical and theoretical significance.

2 Comparison of mining financing
Mining Finance (financial capital out of a business enterprise engaged in mining in the mineral exploration, construction and production during the process of raising funds and operating funds of action. Mineral development can be divided into mineral exploration, mine development and mine operation phases. different stages of financing can be different. From the perspective of division of funding, social financing consists of budgetary financing, bank financing, commercial finance, securities financing and international finance. The mining capital market financing for the venture capital mainly , issuance of bonds and equities, loans from banks or financial institutions, inter-firm strategic alliances or joint risk management, project financing and leasing, will now present the main financing channels in China is as follows:
(1 fiscal financing. Fiscal policy financing is a financing, the State capital providers to the financial sector as the demand for funds of funds out of the mining corporate finance forms and methods. It reflects the power of the State, with its real involved in the distribution of social products. The income structure, with two main characteristics: first, compulsory and free sex, a non-mandatory and paid sex. fiscal policy has a strong financing.

(2 securities financing. Securities financing, capital surplus Economic agents (mainly personal and financial needs of residents who (among enterprises in securities as a medium to achieve the financial activities of financial intermediation. Securities, including stocks and bonds. So the securities financing includes equity financing and debt financing into two categories. for our mining industry, the higher listing requirements, only suitable for large-scale geological exploration companies and mining companies.

(3 commercial financing. Commercial financing, also called commercial credit financing, is the demand for funds by the mining enterprises to commercial credit or consumer credit and other forms to obtain funding. This is an important short-term mining companies financing.

(4 bank financing. Bank financing is the bank's financial intermediation activities as an intermediary, is the way of a loan facility. It is our current main form of financing, are indirect financing. Flexible bank financing, banks as both lenders and borrowers intermediary, can provide different ways to satisfy both the number and financing options. banks to provide funds for the needs of the number of different sizes, varying the length of the loan period.

(5 project financing. Project financing is project-specific assets, expected return or interest as collateral and obtain a non-recourse or limited recourse financing or loans. As an international large-scale mining project financing of a development project important way of financing the project itself is a good business conditions and completion of the project, put into use as a repayment guarantee of cash flow to finance. it does not need the credit to investors or tangible assets as collateral, does not require government departments repayment commitment, the loan is paid specifically for the project financing and project management company set up. project financing for the development of mining enterprises in China play a positive role in pushing forward. use of project financing to reduce the external liabilities of mining enterprises to raise external financing the ability not to use the country's foreign exchange reserves or state funds to repay foreign debt, reducing the investment risks of the participants, while conducive to learning advanced management experience, but also conducive to introducing and absorbing foreign advanced mining equipment and production technology . Links to Research Papers Download http://www.hi138.com (6 venture capital.

venture capital, also known as venture capital or venture capital, venture capital, is a kind of a way to raise funds to set up companies and other organizational forms, investment in unlisted small and medium enterprises in emerging as a commitment to high-risk, high demands form of investment returns. venture capital is characterized by the long period, strong competition, high risks and high returns.

Mineral exploration investment of venture capital institutions, including the risk or investment companies, private venture capital firms, large multinational mining company or the bank's venture capital institutions. Some of the risks of investment in listed companies, private venture capital firm specializes in the financing of mineral exploration . Its activities should follow the principle of market economy, private capital markets with high sensitivity and high decision-making efficiency, and government investment in this area is difficult to adapt. Therefore, the financing of risk capital to private capital should be based.

Third, the choice of mining investment pattern mining financing channels based on the above analysis, the current mode of financing of mining under the mining enterprise at different stages of development, and enterprise needs of the individual to make appropriate choices
Fourth, the development of several mining financing recommendation 1, the state should ensure that investment in basic geological work, encourage social capital for the business income of the survey, geological survey effectively reverse the lag, the level of assurance of declining resources.

2, lower mining enterprises listing and financing conditions. To strengthen and improve the securities regulatory authority, stock exchange and financial investment in the mining sector financing policy rules mining companies to develop and market supervision and management functions, and promote the establishment of capital market exploration. To support and encourage exploration companies, mining companies to the international mining capital market financing.

3, on the relationship between national Economic security of large, large energy, metallurgy, nonferrous metals, chemical mining and strategic minerals, the dominant state-owned capital should be, the state should inject capital or debt-equity swap. But the local Economic entities, not should be excluded from joint ventures and other Economic elements. New key large-scale mine shaft into the main by the state.

References:
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[4] Securities Association of China eds. Stock Market Basics [M], Beijing: China Financial and Economic Publishing House .2006.7 Links http://www.hi138.com Research Papers Download