Home  Journals  Regional Economics: Theory and Practice  30(357) - 2014 August

Gold mining enterprises: mechanism of growth through mergers and acquisitions

Available online: 6 August 2014

Subject Heading: Economy and management

JEL Classification: 

Pages: 2-9

The subject of the article is the process of horizontal integration in the gold mining sector of the Russian economy. The purpose of the study is the theoretical substantiation and development of methodological instructive regulations aimed at improving the economic efficiency of the economic activity of enterprises of the gold mining industry on the basis of horizontal integration. When writing an article the authors used the methods as follows: economic and mathematical method, system analysis, modeling of economic processes and graphic modeling, etc. The paper highlights the following scientific results: identification of the tendencies of horizontal integration based on the concentration of production, taking into account the current state of mineral resources base; identification and assessment of the sources of synergies; proposal of the new strategy of economic activities for the horizontal integrated gold enterprise, which consists in the transition to mine development of the underdeveloped deep alluvial deposits; development of the method for evaluating the effectiveness of horizontal integrated enterprises, taking into account the synergy and new business strategies and risk for the selection of the most rational solution of gold mining enterprises. The scope of the application of the results may contribute to the development of a number of measures at the level of the State or municipal entities in the development of mining enterprises of the Far East region in view of the involvement in the development of the underdeveloped deep alluvial deposits. The paper also considers the approaches that can be used by managers of mining enterprises in planning, forecasting and evaluation of economic efficiency of horizontal integration. Thus, the results detailed in the article, enable to ensure the larger in-depth examination of the effective control of horizontal integration and to carry out the further study and discussion which may help to strengthen the positions of the gold mining industry enterprises.

Keywords: M&A transactions, gold mining industry, strategic development, alluvial gold deposits, horizontally integrated enterprise, evaluation methodology, cash flow, economic risk

References:

1. Valyukhov S.G., Chasov E.M., Gadzhimetov B.E. Sinergeticheskii effekt integrirovannykh struktur [Synergistic effect of integrated structures]. Vestnik VGU: ekonomika i upravlenie – Bulletin of VSU: economics and management, 2007, no. 2, pp. 56–59.
2. Gadzhiev M.O. Sovremennye tendentsii razvitiya zolotodobyivayushchey promyshlennosti [Current trends in the development of gold mining industry]. Vestnik Rossiiskoi akademii estestvennykh nauk. – Bulletin of Russian Academy of Natural Sciences, 2012, no. 2, pp. 76–81.
3. Gornodobyvayuschii kompleks Khabarovskogo kraya [Mining complex of Khabarovsk Krai]. Parlamentskaya gazeta na Dalnem Vostoke –Parliamentary newspaper of Far East, 2007, no. 14, pp. 1–4.
4. Kradenykh I.A., Barchukov A.V. Rol' integratsionnykh protsessov v razvitii zolotorossypnogo dobyvayushchego kompleksa [The role of the integration processes in the gold development mining complex]. Nauchnye issledovaniya i razrabotki: menedzhment – Scientific research and development: management, 2014, no. 1, pp. 18–26.
5. Lazhentsev V.N. Sever Rossii i regional'nye problemy syr'evogo sektora ekonomiki [North of Russia and regional problems of the commodity sector of economy]. Gornyi zhurnal – Mining journal, 2007, no. 3, pp. 6.
6. Lapshin P. P., Khachaturov A. E. Sinergeticheskii effekt pri sliyaniyakh i pogloshcheniyakh [Synergetic effect of mergers and acquisitions]. Menedzhment v Rossii i za rubezhom – Management in Russia and abroad, 2005, no. 2, pp. 21–30.
7. Leont'ev R.G., Golikova Yu.A. Genezis korporatsii [Genesis of a corporation]. Khabarovsk, FESTU Publ., 2006, 306 p.
8. Osokina O.Yu. Kompensatsionnyi lizing na zolotodobyvayushchem predpriyatii [Back-to-back leasing at gold mining enterprise]. Gornyi informatsionno-analiticheskii byulleten – Mining information and analytical bulletin, 2006, no. 8, pp. 46.
9. Samsonov N.Yu., Dudkin N.V. Zolotodobyvayuschaya otrasl' Sibiri i Dal'nego Vostoka: faktory rosta do 2020 goda [Gold mining branch of Siberia and the Far East: growth factors until 2020], Zoloto i tekhnologii. – Gold and technologies, 2011, no. 4, pp. 74–78.

View all articles of issue

ISSN 2311-8733 (Online)
ISSN 2073-1477 (Print)

Journal current issue

Vol. 22, Iss. 4 April 2024

Archive