Introduction of Energy-Saving Technologies in the context of Improvement of the Financial Condition of Mining Enterprises

Abstract

Topicality. In conditions of unstable economy, modern ore mining and processing enterprises must have a stable competitive position in the iron ore market in order to function effectively. Considering significant depreciation of fixed assets, the cost of production in the vast majority of such enterprises is quite high. This fact negatively affects their market positions. Outdated energy-intensive equipment consumes a significant amount of energy, the cost of which is reflected in the cost structure. Therefore, domestic ore mining and processing enterprises need prompt installation of grounded management decisions on improvement of the technical and technological base. Mining companies are one of the energy-intensive industries. This fact contributes to a steady increase in the level of energy consumption, and therefore, energy costs, which are included in the cost structure of the prime cost of iron-containing products, cause an increase in its price and negatively affect the financial condition of enterprises. It is a known fact, that if the price is higher, it is difficult to find promising markets for iron ore. In order to reduce the prime cost of iron ore products, there is an objective need for modernization and installation of innovative energy-saving technologies in ore mining and processing production. The aim of the research is to analyze the correlation between net financial result of an ore mining and processing enterprise, potential energy costs and the installation of effective management decisions, with their subsequent economic justification in order to improve energy efficiency. In addition, the article considers correlation between the level of technical and technological base and the crisis state at a particular enterprise.