Trends in the development of diversification of mining companies

Abstract

Diversification has recently become an integral part of any large mining company's strategy. Diversification can be carried out in different directions, but there is a certain tendency of the company's stage-by-stage development. The first stage is characterized by product diversification. At this stage different products are manufactured on the basis of a single technology. Expansion of the nomenclature and assortment of output products is achieved by development of traditional technology, improvement of quality of consumer properties of goods. At the strategy of diversification of production there is a transition from isolated productions to integrated systems. The formation of strategic alliances of various organizational and legal forms makes it possible to create world-class competitive organizations. If the raw material base of the main production cannot provide a wide range of goods, then it is possible to talk about geographical diversification. Before making a decision on the direction of diversification of a mining company, a detailed analysis of its work is necessary. The structure of the industry as a whole should be analyzed to determine the prospects for development. For a comprehensive and comprehensive assessment of the directions of diversification abroad, a systematic approach is used. The decision-making process should be based on economic and mathematical models. The most difficult task is to estimate the future profit of the project, to determine projected prices.