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Synchro-mining: civilized solution of problems of mining regions’ sustainable operation

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Category: Economy and management

Last Updated on 14 July 2013

Published on 14 November 2012

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Authors:

H.H. Pivniak, Dr. Sci. (Tech.), Academician of the National Academy of Science of Ukraine, State Higher Educational Institution “National Mining University”, rector, Dnipropetrovsk, Ukraine

P.I. Pilov, Dr. Sci. (Tech.), Professor, State Higher Educational Institution “National Mining University”, Vice-rector, Dnipropetrovsk, Ukraine

M.S. Pashkevych, Cand. Sci. (Econ.), State Higher Educational Institution “National Mining University”, Senior Lecturer of the Department of Economics of Enterprices, Dnipropetrovsk, Ukraine

D.O. Shashenko, Cand. Sci. (Tech.), State Higher Educational Institution “National Mining University”, Senior Lecturer of the Department of Civil and Economic Law, Dnipropetrovsk, Ukraine

Abstract:

Purpose. Development of new concept of regulation of development of Ukrainian mining regions on the basis of the strategic management of mining enterprises. Justification of the integrated mechanism of implementation of the developed concept.

Methodology. Theoretical and methodological basis of the research consists of the theory of regional development, management of mining company, systems, innovations, works of domestic and foreign scientists devoted to restructuring of the mining industry, to the solution of problems of the depressed regions, implementation of environmental protection measures after completion of mining operations, legislative acts of the Verkhovna Rada of Ukraine and Cabinet of Ministers of Ukraine. The general scientific methods of investigation processes and phenomena was also used (namely, the epistemological analysis – to determine the parameters and characteristics of different systems life cycle management of mining enterprises, system approach – to study the relationship of processes and phenomena in the development of the synchro-mining concept and justification mechanisms for its implementation; comparative analysis – to determine the differences between the conceptual approaches of strategic management of mining enterprises). Factual basis of the study were the primary data about the results of mining operations in Dnieper-Donetsk region and the results of the restructuring of the coal industry in Ukraine.

Findings. It is proved that the level of efficiency and duration of mining enterprise partially depends on the mineral resources and their extraction conditions. It is proved that a considerable share of profitability may compose business projects of other economic directions, implemented using the resource base of the mining company. Therefore, in order to ensure sustainability of the surrounding area the strategic management of the enterprise should be based on the principles of diversification of economic activity. It is proved that with the approaching of the life cycle of a mining company to the stage of cessation of mining operations, the level of profitability from the main type of activity is being reduced, and overall profitability of simultaneously operated their activities remains unchanged or increases due to new projects, implementation of which was not possible with the active core business.

Originality. For the first time a new coherent concept of sustainability of mining areas and strategic development of mining, which was so called synchro-mining was proposed. Scientific and methodical approach to the selection mechanism of regulation of monostructural mining area based on the integration of the interests of government, business and science is improved. The scientific and methodical approach to the selection of mechanism of regulation of monostructural mining area based on the integration of the interests of government, business and science was improved.

The concept of synchro-mining is based on the complex of actual innovative technologies that already could be implemented on existing mining enterprises.

Practical value. The concept of synchro-mining based on complex actual innovative technologies that might be implemented to the existing mining enterprises. Also, the proposed concept is based on the system of diversification of business and a comprehensive mathematical model that can be used to calculate the optimal amount of investment, payback period, the sequence of implementation of existing projects taking into consideration the internal and external factors. On the basis of the proposed concept the regional policy of territories development may be updated.

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