Study On Risk Management For Overseas Mining Project Of Chinese Enterprises

Overseas mining project is characterized of many risks,long periods of construction and operation,complicated situationes of the internal and external environment,diversified key points and content of the management.Compared with the enterprises occidental,Chinese enterprises are new for the merger and acquisition and the development of overseas mining project.The risks in the field of politic,community,labor forces,and management are seriously obstructed the development of the Chinese overseas mining project,even have caused great losses,such as the Australian magnetite project trap for CITIC Pacific,the Peru mining projects of the Minmetals and Zijin,which revealed the shortcomings and problems of Chinese enterprises in risk identification,risk evaluation and risk response.To improve the level of risk management of Chinese overseas mining projects is the key point for the successful implementation of enterprises resource strategy of China,and the starting point and the foothold of this paper.On the basis of the reviews of investment process and the characteristics of Chinese overseas mining projects,this paper researches the related theories of risk management and,with the reference to the personal experience of 11 years on the management of overseas mining projects,defines the concept of risk,summarizes the risk management procedure,explains the major risks of the Chinese overseas mining projects,comparatively analyse the methods of risk identification,risk evaluation and risk response measures under the bascground of the motivation of Chinese enterprises overseas project investment.Furthermore,selects the F-AHP method as the model of evaluation of the risks,puts forward the countermeasures of overseas mining projects.Peru is one focus of the Chinese overseas mining investment.This paper chooses the Peru Toromocho copper project of Chinalco as the object of example study,testing the theories and methods proposed in this paper.The process and thre resalut of testing consistently reveals that the correct identification,risk evaluation and effective risk response are very important for Chinese overseas mining projects.The conclusions and suggestions of this study are as the following:Firstly,overseas mining projects are characteristiced of great amount of investment,high cost of pit close,slow payback,many more risks,decreasing returns,and multified effects;Secondly,this paper has clarified the objectives of overseas mining projects risk evaluation,on the basis of real variables of Chinese enterprises overseas mining project,designed the comprehensive evaluation model of F-AHP method with Expert Investigation Method;Thirdly,on the philosophy of overall risk management and by the deeply analisis of the representative risks for the Chinese overseas mining projects with the respects of the objectives,processe and countermeasures of risk management,the Chinese enterpries should reinforced the corporate governance,incorporate the risk manangement into the whole processe of the project managemtne and execute the overall risk management by the system and process;Fourthly,on the basis of the concrete situation and the phase of the each project,the correct indentification and evaluation of the project risks,and the effective impletement of the countermeasures are the key points of the success of the management of the overseas mining projects;Fifthly,the localization of the labor forces and internationalization of project management can effectively avoid or control the management risk of the overseas minging project;Sixthly,it should pay more attention to the matter of worker union,develop and operate the overseas mining project with the standardes of local residents of the host country;Finally,in the case of the established conditions such as resource and others,to ease the managemental and cultural differences is the key point to overseas projects,which is the ultimate factor that determines the success of construction and development of the Chinese overseas mining project.