Efficiency of Enterprises in Conditions of Instability of the World Market (by the Example of Mining and Processing Plant “Erdenet”)

Abstract

The research analyzed the effectiveness of the activity of the mining and industrial complex «Erdenet» at the present stage. The problems of transforming the mining and industrial complex «Erdenet» into an open joint-stock company and the advantages and disadvantages of this process are considered. The authors emphasize how relevant and necessary for study and analysis is the issue of increasing the efficiency of industrial enterprises at the present stage, especially in those conditions when the mining industry of Mongolia is successfully developing, and competition in the world market is intensifying. The instability of the world market of raw mineral resources, the growth of their consumption in the Asian market, the global financial crisis dictate the need to study the optimization of mining enterprises. It becomes important not only to study the world copper market, but also to study ways to reduce future price risks, increase the stability of the financial condition of mining companies. In the article, the authors consider the problems of transforming the Erdenet GOK into an open joint-stock company, the need to introduce hedging, and suggest specific directions for improving the efficiency of enterprises.