On Necessity Of China's Western Mining To Attract International Capital

It's an important strategic decision made by the Central Government to accelerate the development of the West Regions and implement the development strategies. The West Regions have gained significant progress and entered a new era for economic development since the reform and open policy was adopted for 30 years and the western development drive policy adopted for 10 years. However, the development of China western mining industry was restricted by problems resulted in capital shortage, process engineering, the philosophy of safety and environment, and the management ability, etc, of which, one of the key factors is the inadequate openness toward the mining capital market. The introduction of international capital to the western mining industry is not only a main method to address the capital shortage problem, introduce advanced technology and management expertise, but an important embodiment of the regional openness. The international mining capital market has become the necessary condition for rapid development and access to international market for the development of Western mining industry. However, the introduction of international capital scale, so far, is not large, neither are the successful examples many. To solve the problem effectively would benefit a lot to promote the Western development drive.Taking China western mining industry development as the topic, the paper firstly thoroughly introduced the general situation of mining resource and the present condition of western mining industry, as well as the main problems in the mining development. Secondly, the international capital is deeply briefed and the international mining capital market along with its characteristics is stated through taking the Canada mining capital market which is the most representative market in the world as example. The writer expounded further the supply, demand and development of international capital market, and also analyzed the contradiction of international capital market. Thirdly, the paper discussed theoretically the characteristic of mining capital intensive from the relationship perspectives between mining resource and capital as well as the suppositional economy, and also the aspects of mining inner fluctuation and the internationalism. The characteristic of management intensive in mining industry was expounded from the perspectives of risk, stage, scale restriction and personnel system in order to clarify the mining industry dependence to mining capital market. Fourthly, the paper demonstrated the necessity of introducing international capital in the western mining industry through the statement of which the ideas and experiences come from introducing international capital to western mining industry. Finally, taking Guizhou Jinfeng Project and other successful international projects as examples for demonstration and analysis, the paper brought forward reasonable proposals. Based on above demonstration and analysis, the paper expounded the necessity and practicability of introducing international capital into China Western mining industry.Step by step exposition was carried out employing the method of theory with practice, combined with the relevant national economic theory and the related international capital ideas. Based on the documentations and resources industry both home and abroad, a detailed analysis of Western mining capital and the characteristics of international capital markets was conducted from both macro-economic and micro-economic perspectives, then exposition in detail of the thesis was carried out with specific projects as examples.