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Management & Engineering 13 (2013) 1838-5745
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Management & Engineering
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Model of Assessment
Competitiveness
Indexes
of
Mineral
Resources
Baoer ZENG
School of Economics and Management, Beijing University of Aeronautics & Astronautics, 100191, P.R.China
KEYWORDS
ABSTRACT
Mineral resources,
Competitiveness,
Assessment,
Index system
As one type of important material foundation of national construction, mineral resources are
essential assurance for sustainable development of economy and society. This study
discussed the concept of competitiveness of mineral resources and its influencing factors
considering the characteristics of the development of mineral resources. Mineral resources
competitiveness means the ability to transform mineral resources predominance into
economic predominance. We established the model of assessment of mineral resources
competitiveness by five aspects: resources predominance, market environment, ecological
environment, investment climate and economy and society benefit. We also came up with
quantitative items of each index.
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1 Introduction
The purpose of forming mineral resource competitiveness assessment index system is to find out regional and enterprises’
inadequacies in mineral resources competitiveness comparing with other regions and enterprises. Regions and enterprises can work
out the way to improve mineral resource competitiveness and identify the development trend of a variety of indicators. Through
competitiveness assessment index system of the mineral resources research, can find the direction to improve and try their best to
transform mineral resources into economic advantage, which have a very important practical significance to economic development
of our country.
2 Mineral Resources Competitiveness
Mineral resources competitiveness means the ability to transform mineral resources predominance into economic predominance.
Resource-advantages minerals mainly refer to rich natural endowments, such as well geological conditions, rich mineral resources,
good deposits occurrence conditions and technical conditions of processing and smelting, favorable conditions of natural economic
geography. Economic advantages mean that minerals have highly efficient mining production ability, advanced technology of
development and processing, low cost and high-profit products, superior conditions of investment environment, ecological

Corresponding author.
E-mail address: [email protected]
English edition copyright © ST. PLUM-BLOSSOM PRESS PTY LTD
DOI:10.5503/J.ME.2013.13.017
95
environment and socio-economic environment, and have strong competitiveness in market. In current conditions of market economy,
the mineral resources competitiveness focuses on the ability of converting resource inventory to monetary income flow. Mineral
resources advantages influence mineral resources competitiveness through cost advantage and price advantage, which is decided by
the characteristic of mineral resources.
On the one hand, mineral resources competitiveness is demonstrated by its resource advantages; on the other hand, influenced by the
market environment, investment environment, ecological environment and other factors affect the performance of the
competitiveness. Mineral resources competitiveness is the comprehensive embodiment of the inner endowment and external
environmental impact. Thus, we should assess mineral resources competitiveness of abilities of transform mineral resources
predominance into economic predominance, basing on the evaluation of mineral resources endowment condition, taking market
demand trends prediction as main reason, under the influence of investment environment, ecological environment and other factors.
3 Assessment Indexes Model of Mineral Resources Competitiveness
The main objective of this study is to establish index system to assess mineral resources competitiveness. We collect indexes from
inner factors and outside environment factors to evaluate mineral resources competitiveness all around.
3.1 Resource predominance index
Resources predominance is the primary factor of those who influence mineral resources competitiveness for its inherent
characteristics of the mineral resources.
Resources predominance is the basic foundation of degree of difficulty of development of mineral resources, which mainly consist of
the scale of resources reserves, mineral type and quality, the degree of aggregation of the mineral resources, level of resources
available, mining conditions, dressing and smelting processing conditions. See Table 1.
Table 1 Resources predominance factor
Factor
Resources predominance
Assessment index
Resource reserves
Mineral type and quality
Degree of aggregation of mineral resources
Level of resources available
Mining conditions
Dressing and smelting processing conditions
Cost advantage
Cost advantage is also an important factor of resources predominance index. When market demand is fixed, enterprises which have
low cost product can own more market share in the fierce market competition, which is called competitiveness in economic
significance, and it can also be called cost advantage. Mineral resources predominance influence mineral resources competitiveness
through cost advantage. If one kind of mineral resource have large reservation, high quality and ease of development in some area,
this mineral product may have low cost in the area, thus can sell large quantity in lower price level to gain more income, and it can be
regarded as have more mineral resources competitiveness. Otherwise, mineral resources which have mineral resources predominance
without cost advantage may be weak competitiveness, even though no competitiveness.
3.2 Market environment index
Market environment of mineral resources refers to the relationship between supply and demand of mineral resources in the market.
The relationship between supply and demand reflects the level of assurance of mineral resources and the social demand for minerals.
Natural existence of the mineral in nature and social demand for minerals mining production are the two basic stimulating factors for
mining activities. The relationship between supply and demand determines the prices of mineral products formation and mineral
products in the market competitiveness. Determine of market environment indicators are the followings: market demand conditions,
regional market conditions, market development and competitiveness of mineral product. See Table 2.
Table 2 Market environment factor
Factor
Market environment
Assessment index
Market demand
Distance between major consumer market and mineral resources
Regional market conditions
Market development
Competitiveness of mineral product
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3.3 Ecological environment index
Ecological environment reflects the dependent relationship of development of mineral resources and the natural environment. Harsh
ecological environment will inevitably affect the development of mineral resources, mine construction and production, which will
inevitably cause damage and impact on the ecology and the environment. The development of mineral resources will take up a lot of
fertile land, the concentrator of dust and smoke emissions and waste water will pollute the air, water and farmland, and the ecological
balance is destructed. So, when assessing the competitive evaluation of mineral resources development, we should predict the
resources development impact on ecological environment, and at the same time, should work out ways to protect the ecological
environment. Determine of ecological environment indicators are the followings: ecological and environmental conditions,
atmospheric environment impact, water environment impact, soil environment impact, occupation of cultivated land area, impact on
the natural landscape, integrated environment management measures. See Table 3.
Table 3 Ecological environment factor
Factor
Assessment index
Ecological and environmental conditions
Atmospheric environment impact
Water environment impact
Ecological environment
Soil environment impact
Occupation of cultivated land area
Impact on the natural landscape
Integrated environment management measures
3.4 Investment climate index
Investment climate is a conception which contains comprehensive implication. Factor that influence investment decisions can be
divided into two categories: hard climate and soft climate. Investment in physical form “hard” climate and investment in material
form “soft” climate. Transportation, posts and telecommunications, water supply, electricity, gas and other living facilities, and
minerals, natural plant resources are generally classified as “hard” climate. Policies and regulations, the level of economic
development and stability, technical and management level and efficiency of administrative agencies are classified as “soft” climate.
Mineral resources investment climate has its characteristics. First, mineral resources investment climate is objectivity. Mining
investors attach great importance to the geological potential of the investment area and the development of economy. Mining activity
is hidden underground objective geological resource-rich collective labor, its size, reserves, and ore grade, the presence of harmful
elements will have a direct impact on potential investors of the scale of production, equipment selection, production deadlines and
the final income. At the same time, geological the complexity of the hydrological conditions, have an important impact on the future
cost of production. Second, mineral resources investment climate is followed by a high degree of dependence in infrastructure. One
body buried deep underground, and deposit in the mountains away from the cities and towns where there always existing
transportation inconvenience. while the amount of exploitation of the mineral and waste stone mining optional ore is giant, Therefore,
the convenient transport facilities in the mining investment is prerequisites. Third, electricity and water supplies and modern
communication facilities are also essential. Four, the stability of the mining policy is an important aspect of investor decision. Mining
investment is a long period of high capital density in high-risk business activities; investors will pay very careful and special attention
to investment in the mining policy adaptability, coherence and stability. All in all, factors affecting investment climate can be divided
into four categories: infrastructure, regional economic development, conditions of supply of factors of production, social service
facilities. See Table 4.
Table 4 Investment climate factor
Factor
Assessment index
Infrastructure
Investment climate
Regional economic development
Conditions of supply of factors of production
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Items
Transportation
Power supply
Water supply
Fuel supply
Posts and telecommunications
GDP
GDP per capita
Revenue
Gross industrial and agricultural production
Supply of labor
Labor quality and technical proficiency
Supply of production and life material
Efficiency of administrative agencies
Finance and insurance
Life and living conditions
Medical and health conditions
Commercial trade
Social service facilities
3.5 Economy and society benefit index
Economic benefit index contain the investment rate of return, the profit rate of investment, financial internal rate of return and the
loan repayment period. Society benefit index include labor and employment effects and income distribution effects. See Table 5.
Table 5 Economy and society benefit factor
Factor
Assessment index
Profit rate of investment
Investment tax rate
Financial internal rate of return
Loan repayment period
Labor and employment effects
Income distribution effects
Economy and society benefit
4 Conclusion
This study discussed the concept of competitiveness of mineral resources and its influencing factors considering the characteristics of
the development of mineral resources. Mineral resources competitiveness means the ability to transform mineral resources
predominance into economic predominance.
Competitiveness of mineral resources is a comprehensive concept of by their inner qualities and external environments. On the one
hand, mineral resources competitiveness is the presence of competitive ability by its resources predominance. On the other hand,
mineral resources competitiveness is also influenced of by the market environment, investment climate, ecological environment and
economy and society benefit and other factors affecting the performance of the competitiveness. We established the model of
assessment of mineral resources competitiveness by five aspects: resources predominance, market environment, ecological
environment, investment climate and economy and society benefit. We also came up with quantitative items of each index.
References
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