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E. V. Slukina
E. V. Slukina
Master’s degree student, research assistant
G.V. Plekhanov Saint Petersburg Mining University
Master’s degree student, research assistant
G.V. Plekhanov Saint Petersburg Mining University

Articles

Economics and finance: a look into the future
  • Date submitted
    2001-08-17
  • Date accepted
    2001-09-20
  • Date published
    2002-03-01

Production and financial constraints in the development of the raw material base of the mining enterprise

Article preview

Enterprises that have successfully transitioned to commercial activities have managed to establish themselves in their market niches (segments) on the basis of individual market research. Such enterprises often include enterprises of the mining industry, each of which has accumulated its own experience. However, the strategy of improving economic and financial condition of the economic entity under conditions of developing regional market relations has not yet become the basis for forming and developing commodity-money relations between enterprises of this or that region. The experience of formation of economy in the market conditions is individual for each economic entity, but each of them has common difficulties. Activity of any enterprise faces three main types of limitations: in resources, in demand and in investments. The degree of severity of manifestation of restrictions depends on many factors, including the industry specifics of the enterprise. For mining enterprises, the most important constraint is the availability of raw materials, which also affects the other two constraints. The intensity of development and financial stability of the enterprise depend on the constraints themselves, their causes and consequences, as well as on the possibility of easing the impact of these factors.

How to cite: Slukina E.V. Production and financial constraints in the development of the raw material base of the mining enterprise // Journal of Mining Institute. 2002. Vol. 151. p. 138-140.
Economics and management
  • Date submitted
    2001-06-20
  • Date accepted
    2001-07-16
  • Date published
    2002-01-01

Factors shaping the security of the mining and metallurgical enterprise in market conditions

Article preview

In the conditions of development of regional market relations the experience of entering the market is different for each economic entity, but there are common features in the improvement of economic and financial condition of the enterprise. Each of the enterprises, transitioning to functioning under market conditions, has a number of common difficulties. The nature of these difficulties can be explained on the basis of the principle of three constraints. The first kind of constraints are resource constraints (an enterprise cannot produce more goods than it has resources at its disposal). The second type is demand constraints (an enterprise cannot sell more products than can be bought at a given price level). The third type of restriction is a restriction in the sources of investment (the enterprise cannot spend more than its own or borrowed resources). Differences in the degree of severity of these constraints depend on many factors, including industry specifics. For mining companies, the most important constraint is the availability of raw material resources. The degree of rigidity of the other two constraints is determined by the existing situation at the enterprise: for enterprises with an established raw material base, the primary constraint is the sales constraint; for enterprises with a resource-constrained economic system, on the contrary, it is a constraint on investments. Depending on the existing constraints, the reasons for their emergence and consequences, as well as on the possibility to reduce the constraints, the enterprises can be characterized in terms of the intensity of their development and sustainability.

How to cite: Slukina E.V. Factors shaping the security of the mining and metallurgical enterprise in market conditions // Journal of Mining Institute. 2002. Vol. № 1 150. p. 139-143.