Survival and Development of China's Small-sized Mining Enterprises

摘要

There is no doubt of the importance of the small-sized mining enterprises in the national economy, whose survival and development has been one of the spotlights of the government, businesses and scholars. This paper, firstly, employs the SWOT method to systematically reveal the strengths and weaknesses of China's small mining firms as well as the opportunities and threats facing them. Compared with the large organizations, they embrace merits such as low costs, matched with the features of the resources, and high efficiency of operation; on the other hand, they have to tolerate the shocking drawbacks like poor financing capabilities, extensive utilization of the resources, and unlawful business behaviors. Thanks to the accelerating industrialization and urbanization, there arises the rigid demanding of the mineral resources, which, connected with the highlighting of the supportive policies for the small and medium-sized enterprises, provides a golden opportunity for the small mining firms. On the other hand, the small-sized mining enterprises are confronting tough challenges such as mining crisis, and more governmental regulating of the mining industry order. Secondly, with the constructing of dynamic non-cooperative game model between the small mining firm and the governmental monitoring institution, it presents an analysis of the small firm hardship of survival in such a condition: on one hand, it is driven to conduct the unlawful business taking the risk of being closed; on the other hand, the government has to pay high costs for the rectifying and regulating the mining industry order. Only based on the common interest the shift of enterprise-government non-cooperative game to cooperative game can the two parties get through this dilemma. Finally, their strengths and weaknesses as well as the opportunities and threats they are confronting, the small mining firms shall not swim in such a gaming condition; they are capable of building up the business by means of merger of small-sized mining firms, being attached to the large ones as well as reducing the costs with subtle management. Whatever approaches are adopted heavily relies on improving the development environment of small mining firms, which requires the governments' continuing to enhance the exploration of mineral resources and implementing more favorable policies on tax and finance to support the small firms. Also, there ought to be regulating the operations of small mining firms through policies guidance and mining planning.