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Private equity within mining industry in Europe

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Category: Economy and management

Last Updated on 28 October 2015

Published on 28 October 2015

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Authors:

M. Bittner, PhD., Barclays PLC Banking & Financial services, London, UK.

T. Soroková, Ing., PhD. The Technical University of Košice, Economic faculty, Department of economical theories, University teacher in area of ethics and communication in business, Kosice, Slovakia.

A. Csikósová, Ing., CSc., Prof., The Technical University of Košice, Faculty of Mining, Ecology, Management and Geotechnologies, Head of the Department of Business and Management, Kosice, Slovakia.

K. Čulková, Ing., PhD., Doc., The Technical University of Košice, Faculty of Mining, Ecology, Management and Geotechnologies, Department of Business and Management, University teacher in area of companies’ finances, Kosice, Slovakia.

D. Marasová, Ing., CSc., Prof. The Technical University of Košice, Faculty of Mining, Ecology, Management and Geotechnologies, Department of Logistics of transport and industry, University teacher in area of logistics, Košice, Slovakia.

Abstract:

Purpose. The purpose of the study is to determine the extent of private equity (PE) contribution to growth of various industrial branches, individual companies, particularly its impact on mining industry in the frame of Europe.

Methodology. Investors evaluated mining companies through index of attractiveness of private equity and risk capital.

Findings. In the frame of the countries evaluation the country’s individual risk profiles have been created. Through analysis of private equity influence we have found out that the activity of PE investments in mining industry in Europe decreases, but in comparison the companies without PE investments are stable, but do not achieve significant growth in the context of Europe.

Originality. The analysis proved mining industry has significant potential for attraction of PE investors.

Practical value. The paper presents the results of research in the area of sustainable development of the region in context of human, capital and natural resources, in the frame of the Project No. 1/0176/13 developed by Grant Agency VEGA, Slovakia.

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