A Brief Discussion on Strategies to Control Safety Risks of Investment and Exploitation of Overseas Mineral Resources

Abstract

Based on the analysis of multiple factors that had influenced the safety of investment and exploitation of overseas mineral resources, such as political, legal, macro- economic, resources, market, community, public relation and other risks, this article built a safety evaluation system of investment and exploitation of overseas mineral resources. Furthermore, it combined with the current condition of safety problems in investment and exploitation of mineral resources with some experiences and practices that are executed in developed countries to guarantee safety of mineral resources, and then proposed several strategies to control risks of safety of investment and exploitation of overseas mineral resources, for example, to develop active resources-oriented diplomacy, raise awareness to affect overseas insurance, improve financial support system merged overseas, attach importance to safety management and environmental protection, accelerate cultivation of international managing talents and enhance contacts and communication with local government and masses, which will provide reference for mineral resources companies to strengthen prevention and control on safety risks during the processes to implement international strategies. Keywords-Overseas; Mineral Resources; International; Safety Risks; Risk Evaluation; Control Strategies I. INT RODUCT ION With the development of economic globalization, in order to solve the conflict of shortage of domestic resources that exists for a long time, seek for new approaches to obtain mineral resources and ensure to meet the needs of their own rapid development, many companies around the world begin to extend their sights overseas, go abroad, propose and imp lement international management strategies and attempt to participate in international competition of mineral resources in the world. However, the mineral resources industry is a tough one with great risk, which needs the investing and exploiting companies to pay huge efforts to achieve success. Through the analysis on data disclosed by relevant domestic and foreign authorities, currently, it is found that there is great risk in managing investment and exploitation of overseas mineral resources. According to relevant theories from domestic and foreign researches on mineral resources safety, combin ing with actual conditions and existing problems on safety of overseas mineral resources with the experiences and practices that economically advanced countries have employed to guarantee mineral resources safety, this article focuses on studying and discussing on the main risks that may appear during investment and exp loitation of overseas mineral resources and how to prevent these risks. II. MAIN RISKS The risks of investment and exploitation of overseas mineral resources refer to the possibilit ies of failure, major losses or even disaster happening to cooperative strategies of overseas resources, which is resulted from a series of unnatural and uncertain factors (1). Based on classification of risk by world experts and scholars, in accordance with origins of transnational investment risks that overseas mineral resources companies may suffer, the investment and explo itation risks for these companies can be divided into external and internal risks. The external risk primarily includes political, legal, macro-economic, resources, market, co mmunity and public relation risks; and the internal risk main ly includes such risks in business decision, investment and financing and project implementation and management.