Research On Capitalization Of Mineral Resources In Western China

The strategy of development of western regions in China is a significant measure for implementing regional development strategies, which to a big extent will influence the international competitive power in21st century. In recent years, the strategy for the development of the western regions has achieved obvious effects. However, the gap between eastern and western regions still keeps widening in many aspects, such as the Per capita accumulation. There are different opinions concerning the reasons and solutions of the gap.The research of this paper is based on the big project the resources exploitation and economy sustainable development supervised by ministry of education in China. The objective is to find the mechanism and path of economic sustainable development through resources exploitation and put forward relevant policy advices. The core thought of the paper is capitalization of resources. It assumes that the reason that western regions develop slowly is lack of capital. It has the advantage of natural resources, so transferring the advantage of natural resources to capital advantage through resource capitalization is a good choice.The core of the paper is researching on the condition, method and mechanism of natural resources capitalization, taking mineral resources for example. The nature of mineral resources capitalization is discounting the future cash flow of resources. It needs the capitalization operating of mining right, especially the use of financial means, such as asset-backed securitization.The main content and innovation are summarized as follows:Firstly, based on the literature review, the author points the thinking of resource capitalization which transfers resource advantage to capital advantage. The nature of mineral resources capitalization is discounting the future cash flow of resources. It needs the capitalization operating of mining right, especially the use of financial means, such as asset-backed securitization. With the available capital and good resource disposition mechanism, we can move the investment, technique innovation and human resource accumulation, and eliminate the resource curse, and eventually promote western regions’ sustainable development.Secondly, the author defines the property rights of western regions’ mineral resources and constructs the value model of mineral resources, and analyzes the typical methods of mining rights estimation, which is the premise and base of mineral resource capitalization.Thirdly, the author analyzes the realizing ways of mineral resources capitalization, which include the property transfer and securitization of mineral resources. The key point is the mineral resource securitization. The author analyzes the importance of mineral resource securitization, constructs the securitization model of mineral resources, designs the scheme of western regions’ mineral resources securitization, and give deeply research on the basic assets choice, asset-backed securities pricing, risk analysis and control in the process of securitization. From the native and foreign experiences, the author put forward some supporting measures for the implementation of western regions’ mineral resources securitization.Fourthly, the author researches deeply on the accounting recognition and measurement of mineral resources capitalization, including the resetting of accounting subject and the accounting treatment of the mining rights, which is the micro basis of mineral resources securitization.Fifthly, the author researches on the mineral resources’ development and management from the perspective of resource, asset and capital integration, including mining rights transaction market and mineral capital market construction, the distribution of mineral resources profit, the resource and ecological environment protection, and big enterprises and large projects leading. The new mechanism may realize the benign interaction between resource and capital.The paper combines the economy and accounting connotation of capitalization, and put forward the complete theory system of mineral resources capitalization in western China, including the property rights definition and value assessment, the capitalization operation, accounting, and capitalization management of mineral resources. The property rights definition and value assessment is premise, the capitalization operation is core, the accounting is micro basis, and the capitalization management mechanism is guarantee for capitalization of mineral resources.The paper provides new path of natural resources exploitation and economic sustainable development in western China, provides reference for mineral industries’developing pattern and optimal disposition of mineral capital, provides advices for finance supporting in the development of western regions, and provides the theory evidence for governments to make policies about resource management, ecological environment protection and resource profit distribution.