The Research On Investment Decision Of Mining Safety In China

The mineral resource is the basis for society development and helps human makeprogress. But the safety accidents happen frequently which causes the economic lossto the companies and damage to mining employees’ work and life. Although the safetyof mine is constantly improving, the situation of our country is also bad whencompared to other countries. The large mine accident happens from time to time andthe mortality remains very high. Therefore it is necessary to invest in mining safety.To prevent the occurrence of safety accidents and reduce the loss is the ultimate goalof the safe production of mines. However, the investing capital of the mine is limited.The company cannot pay a lot to pursue the max safety. And the bigger investmentdoesn’t mean the higher safety benefit because of the higher investment risk. So themine operators or investors not only care about the how to keep the production safe,but also how realize bigger safety benefits. So when invest for security, we should paymore attention to the safety cost and benefit.According to the characteristics of mines the paper establishes the safety costaccounting system and analyzes the safety cost, safety investment and benefits. Thenthe paper introduces the method of grey correlation analysis to analyze the correlationbetween the safety measures and accident losses. That is the qualitative analysis ofinvest cost and benefit. On this basis, the author introduces the grey forecastingmethod to predict the investing amount. After that, I introduce the cobb-douglasproduction function to determine the safety investing proportion of different measuresfor biggest security benefits. So that the investment decision model is established.Finally the paper collects the related data of our country in recent10years andanalyzes the relationship between the safety investment and accident loss. Alsopredict the investing amount of next time node and analyze the investment proportionquantitatively with the method of production function. All in all the paper providereasonable theoretical reference for invest decision.According to the statistical data of safety-investing in our country and using the method of grey correlation analysis, the result shows that the correlation between themine accidents and safety education or environment is bigger than that with safetymachines. So the mines should pay more attention to the education of safety andenvironment when investing. At the end of the paper, author predicts the mines’ safetyinvestment amount of our country.