Resources Management and Rent Theory in Mining Industry

Marius Bulearca,Mihai-Sabin Muscalu,Catalin Popescu,Constantin Ghiga

doi:10.5171/2012.790264

Abstract

Highlighting both the problems of composing and acquiring mineral rent, and the procedures and forms in which the rent is reflected in the price of mining products and energy resources are basic premises to emerge specific methodological elements of economic management of mineral resources. As our researches revealed, contractual duties represent one of these elements. Hence, the problem of new approaching in mining rents is to select policies for the contractual duty to provide sufficient incentives for foreign companies engaged in exploration and extraction of resources, by obtaining the broadest possible part of that resource rent.

Highlights

Economic analysis of extractive industry is fundamentally different from the analysis of agriculture, manufacturing and services
Differential rents will always exist, but their way of sharing and ownership are influenced by microeconomic logic of political and geopolitical factors, as by the level of competition between manufacturing industries and landowners with mineral deposits
When it comes to organizing a system of economic management of natural resources, especially non-renewable, we rely on discounted pricing theory

Summary

Introduction

Economic analysis of extractive industry is fundamentally different from the analysis of agriculture, manufacturing and services. The problem of modeling mining rents, put in simple terms, is to select policies for the contractual duty to provide sufficient incentives for foreign companies engaged in exploration and extraction of resources, by obtaining the broadest possible part of that resource rent. This issue has some elements of the problem of attracting foreign investors, it is different in many respects. The second concept is that of the total economic value This value expresses the largest parts of the conservation value of natural resources in a tolerable way. The analysis of both concepts is extended at the end of this paper

A New Approach of Rent Theory in Mining Industry

Findings

Conclusions