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

Abstract

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.