Risk Analysis and Prevention in Mineral Resources Development Alliance Between China and ASEAN Companies: From the Perspective of China Companies

Abstract

From the perspective of China companies, the risk identification, analysis and prevention of mineral resources development alliances (MRDAs) between China and ASEAN companies (CACs) are studied in this article. Based on the perspective of project management, the Grid Method is used to break down the risks of MRDAs between CACs. The risks of MRDAs are broken down into decision-making risks, formation risks, operation risks and disintegration risks from horizon; internal risks and external risks from longitude. Besides, the Modular Method and the Back Propagation Neural Network (BPNN) are used to identify and analyze the risks of MRDAs, respectively. The results show that: There are 23 specific risks in MRDAs between CACs; And based on a case of the Letpadaung Copper Mine project in Myanmar, these risks can be divided into five levels: high, medium high, medium, medium low, and low. Based on the above results, the risk prevention methods are presented: (1) According to the risk level, the corresponding prevention strategies are developed; (2) Chinese companies need to unite the Chinese government departments and local alliance partners to jointly prevent the risks of MRDAs. Among them, the Chinese government departments mainly prevent political risks; the others mainly prevent non-political risk; (3) For internal risk, the changes of internal key risk-induced factors need to be eliminated, controlled or mitigated as much as possible. For external risks, the changes of external key risk-induced factors need to be strictly monitored, and to develop corresponding responses. Finally, for the internal and external risks, the specific prevention strategies are proposed respectively.