Equity pricing in the mining sector: evidence from NYSE and LSE

The study examines the Capital Asset Pricing Model (CAPM) for the mining sector using weekly stock returns from 27 companies traded on the New York Stock Exchange (NYSE) or on the London Stock Exchange (LSE) for the period of December 2008 to December 2010. The results support the use of the CAPM for the allocation of risk to companies. Most companies involved in precious metals (particularly gold), which have a beta value less than unity (Table 1), have been actuated as shelter values during the financial crisis. Values of R2 do not shown very explanatory power of fitted models (R2 < 70 %). Estimated coefficients beta are not sufficient to determine the expected returns on securities but the results of the tests conducted on sample data for the period analysed do not appear to clearly reject the CAPM

Harnessing Natural Resources for Development: New Legal Regimes for Localized Benefit Sharing in the Mining Sector

Thesis (Ph.D.)--University of Washington, 2016-06

The productivity-inflation nexus: The case of the Australian mining sector

This paper examines the causal links between productivity growth and two price series given by domestic inflation and the price of mineral products in Australia's mining sector for the period 1968/1969 to 1997/1998. The study also uses a stochastic translog cost frontier to generate improved estimates of total factor productivity (TFP) growth. The results indicate negative unidirectional causality running from both price series to mining productivity growth. Regression analysis further shows that domestic inflation has a small but adverse effect on mining productivity growth, thus providing some empirical support for Australia's 'inflation first' monetary policy, at least with respect to the mining sector. Inflation in mineral price, on the other hand, has a greater negative effect on mining productivity growth via mineral export growth.

Corporate social responsibility reporting in the mining sector of Tanzania:(Lack of) government regulatory controls and NGO activism

Purpose – The purpose of this paper is to contribute to the ongoing debate on governance, accountability, transparency and corporate social responsibility (CSR) in the mining sector of a developing country context. It examines the reporting practices of the two largest transnational gold-mining companies in Tanzania in order to draw attention to the role played by local government regulations and advocacy and campaigning by nationally organised non-governmental organisations (NGOs) with respect to promoting corporate social reporting practices. Design/methodology/approach – The paper takes a political economy perspective to consider the serious implications of the neo-liberal ideologies of the global capitalist economy, as manifested in Tanzania’s regulatory framework and in NGO activism, for the corporate disclosure, accountability and responsibility of transnational companies (TNCs). A qualitative field case study methodology is adopted to locate the largely unfamiliar issues of CSR in the Tanzanian mining sector within a more familiar literature on social accounting. Data for the case study were obtained from interviews and from analysis of documents such as annual reports, social responsibility reports, newspapers, NGO reports and other publicly available documents. Findings – Analysis of interviews, press clips and NGO reports draws attention to social and environmental problems in the Tanzanian mining sector, which are arguably linked to the manifestation of the broader crisis of neo-liberal agendas. While these issues have serious impacts on local populations in the mining areas, they often remain invisible in mining companies’ social disclosures. Increasing evidence of social and environmental ills raises serious questions about the effectiveness of the regulatory frameworks, as well as the roles played by NGOs and other pressure groups in Tanzania. Practical implications – By empowering local NGOs through educational, capacity building, technological and other support, NGOs’ advocacy, campaigning and networking with other civil society groups can play a pivotal role in encouraging corporations, especially TNCs, to adopt more socially and environmentally responsible business practices and to adhere to international and local standards, which in turn may help to improve the lives of many poor people living in developing countries in general, and Tanzania in particular. Originality/value – This paper contributes insights from gold-mining activities in Tanzania to the existing literature on CSR in the mining sector. It also contributes to political economy theory by locating CSR reporting within the socio-political and regulatory context in which mining operations take place in Tanzania. It is argued that, for CSR reporting to be effective, robust regulations and enforcement and stronger political pressure must be put in place.

Sustainability analysis in the mining sector: a case study on new recycling technologies for sulphidic mine residues valorisation

Research has demonstrated that mining activities can cause serious impacts on the environment, as well as the surrounding communities, mainly due to the unsafe storage of mine tailings. This research focuses on the sustainability assessment of new technologies for the recovery of metals from mine residues. The assessment consists in the evaluation of the environmental, economic, and social impacts through the Life Cycle based methods: Life Cycle Assessment (LCA), Life Cycle Costing (LCC), and Social Life Cycle Assessment (SLCA). The analyses are performed on the Mondo Minerals bioleaching project, which aim is to recover nickel and cobalt from the Sotkamo and Vuonos mine tailings. The LCA demonstrates that the project contributes to the avoided production of nickel and cobalt concentrates from new resources, hence reducing several environmental impacts. The LCC analysis shows that the company’s main costs are linked to the bioleaching process, caused by electricity consumption and the chemicals used. The SLCA analyses the impacts on three main stakeholder categories: workers, local community, and society. The results demonstrated that a fair salary (or the absence of it) impacts the workers the most, while the local community stakeholder category impacts are related to the access to material resources. The health and safety category is the most impacted category for the society stakeholder. The environmental and economic analyses demonstrate that the recovery of mine tailings may represents a good opportunity for mine companies both to reduce the environmental impacts linked to mine tailings and to increase the profitability. In particular, the project helps reduce the amounts of metals extracted from new resources and demonstrates that the use of the bioleaching technology for the extraction of metals can be economically profitable.

Analysis of corporate social responsibility (CSR) performance and financial performance of selected mining companies

The global concern about sustainability has been growing and the mining industry is questioned about its environmental and social performance. Corporate social responsibility (CSR) is an important issue for the extractive industries. The main objective of this study was to investigate the relationship between CSR performance and financial performance of selected mining companies. The study was conducted by identifying and comparing a selection of available CSR performance indicators with financial performance indicators. Based on the result of the study, the relationship between CSR performance and financial performance is unclear for the selected group of companies. The result is mixed and no industry specific realistic way to measure CSR performance uniformly is available. The result as a whole is contradictory and varies at company level as well as based on the selected indicators. The result of this study confirms that the relationship between CSR performance and financial performance is complicated and difficult to determine. As an outcome, evaluation of benefits of CSR in the mining sector could better be analyzed based on different attributes.

Determinants of capital expenditures: Evidence from oil and mining sectors in Russia

This master’s thesis investigates the significant macroeconomic and firm level determinants of CAPEX in Russian oil and mining sectors. It also studies the Russian oil and mining sectors, its development, characteristics and current situation. The panel data methodology was implemented to identify the determinants of CAPEX in Russian oil and mining sectors and to test derived hypotheses. The core sample consists of annual financial data of 45 publicly listed Russian oil and mining sector companies. The timeframe of the thesis research is a six year period from 2007 to 2013. The findings of the master’s thesis have shown that Gross Sales, Return On Assets, Free Cash Flow and Long Term Debt are firm level performance variables along with Russian GDP, Export, Urals and the Reserve Fund are macroeconomic variables that determine the magnitude of new capital expenditures reported by publicly listed Russian oil and mining sector companies. These results are not controversial to the previous research paper, indeed they confirm them. Furthermore, the findings from the emerging countries, such as Malaysia, India and Portugal, are analogous to Russia. The empirical research is edifying and novel. Findings from this master’s thesis are highly valuable for the scientific community, especially, for researchers who investigate the determinant of CAPEX in developing countries. Moreover, the results can be utilized as a cogent argument, when companies and investors are doing strategic decisions, considering the Russian oil and mining sectors.

Thanatos Empresarial : muerte empresarial en el sector minero causas y consecuencias

Este trabajo hace parte del proyecto de investigación de Thanatos Empresarial, el propósito del tema fue seleccionado con el fin de encontrar un factor o patrón común existente entre las empresas del sector minero colombiano, teniendo en cuenta aquellas que hayan sido liquidadas, estén cursando un proceso de liquidación obligatoria o aun estén desarrollando actividades. El trabajo fue dividido en tres partes principales. En la primera expresamos la problemática que cursa el país por la mortalidad prematura de empresas en el país, problemática que en lugar de disminuir sigue aumentando, pese a que desde hace más de cuatro décadas se han venido creando y modernizando leyes que buscan fomentar la creación de empresas sostenibles y de la misma manera ayudar a aquellas que se vean en la necesidad de entrar en un proceso de liquidación. La segunda parte de la investigación esta nutrida de datos recogidos por entidades, principalmente del estado, durante los últimos 15 años, por medio de los cuales se puede ver detalladamente las cifras de empresas que han venido entrando a procesos de liquidación, concordato, reorganización etc. y como pese a las leyes, muy pocas son las que logran sobrevivir a este proceso. Los resultados obtenidos mediante el análisis de estos datos corroboran de manera precisa esta premisa, las leyes existentes no están siendo suficientes para frenar la mortalidad de empresas en lo que respecta al sector minero nacional. Las empresas no toman decisiones por si solas, al mando de ellas están diferentes personas que como capitanes de un barco dirigen el rumbo de la misma, dependiendo de qué decisiones se tomen desde la dirección y la gerencia la empresa lograra recorrer el camino del éxito o del fracaso. Lamentablemente muchos de los emprendedores colombianos deciden dirigir su compañía sin buscar ayuda de algunos estamentos que fueron creados para ayudarlos y evitar la crisis de las empresas, tales como las cámaras de comercio, y por lo mismo debido a su inexperiencia o al abuso de toma de decisiones arriesgadas terminan por echar por la borda la empresa y poniendo en dificultades a todos los que de una u otra forma interactuaban con esta. Esta investigación cobra importancia cuando aquellas personas que desean crear empresa, buscan informarse con anterioridad sobre los problemas pueden cursar cuando entren en el mercado, encontrando en este trabajo una herramienta valiosísima en la gestión de la crisis la cual hace las veces de guía para evitar repetir el patrón que causa la muerte prematura de muchas empresas en el sector minero y en general en la economía Colombiana.

Situación actual del sector minero en el departamento del Chocó e identificación de escenarios de desarrollo alternativos

En el presente trabajo se presenta una análisis del sector minero del Departamento del Chocó en el que se pretende conocer la situación actual de esta región y realizar un análisis prospectivo. Persiguiendo este fin se analizará el comportamiento del sector en cuanto a producción, exportación, zonas mineras, inversión, beneficios generados, actores, entre otros componentes participes en el desarrollo económico y social del sector.

Perfil logístico de Colombia sector minero

El proyecto “Perfil logístico de Colombia” tiene como objetivo poder suplir las falencias de información que existen actualmente en Colombia a la hora de proyectar el proceso logístico de un bien o servicio. Las empresas colombianas cuentan con pocos recursos para llevar la materia prima de forma eficaz a su fin o punto de consumo. Dentro de este proyecto se analizará el sector Minero en Colombia, donde este presenta un alto reconocimiento a nivel mundial. Posee metales preciosos y metales básicos, su principal producción es el carbón térmico, ferroníquel, oro y esmeraldas. De esta manera, la minería en mediana y pequeña escala presenta un alto potencial, el cual si es aprovechado de una manera adecuada puede llegar a convertirse en una fuente muy importante y representativa para el país en cuanto a ingresos y empleos. De acuerdo a los últimos años Colombia se ha convertido en un país atractivo en cuanto a la inversión de explotación minera, gracias al incremento de precios internacionales de los minerales y el desarrollo de la seguridad en Colombia. Se realizará un análisis global en el cual se mostrará la posición de Colombia frente a la situación internacional, esto se investigará de acuerdo a los diferentes indicadores como el PIB, índice global de competitividad, productividad, y balanza comercial. Así mismo, se examinará el nivel de infraestructura logística que promueve la planeación de los flujos logísticos teniendo variables de costo, tiempo, y transporte. Además se tendrán en cuenta factores como cadena de suministro, problemática del sector minero con el gobierno, caracterización mundial, panorama nacional, VSM (proveedores, productores, almacenamiento, distribución y logística inversa) y gremios.

Análisis del proceso de negociación e implementación del TLC entre chile y EE.UU. y su articulación con el régimen internacional de comercio en el sector de la minería

El objetivo del presente estudio de caso es identificar los mecanismos, normas y reglas empleados durante la negociación e implementación del TLC entre Chile y EE.UU. y su articulación con el Régimen Internacional de Comercio en el sector de la minería chilena. De esta manera se analizarán históricamente las principales condiciones políticas y económicas de Chile y EE.UU. que propiciaron la negociación e implementación de un acuerdo entre estas dos economías asimétricas. Así durante el proceso de negociación del TLC se describirán los elementos que se adaptaron a los principios y normas de la Organización Mundial de Comercio, logrando establecer un TLC entre las dos naciones. Finalmente se examinan algunos efectos que tuvo en el sector minero chileno, la puesta en marcha de acuerdo de libre comercio, teniendo en cuenta que dicho sector es altamente sensible para la economía del país latinoamericano.

Abatement of mercury pollution in the small-scale gold mining industry: Restructuring the policy and research agendas

This paper critiques contemporary research and policy approaches taken toward the analysis and abatement of mercury pollution in the small-scale gold mining sector. Unmonitored releases of mercury from gold amalgamation have caused considerable environmental contamination and human health complications in rural reaches of sub-Saharan Africa, Latin America and Asia. Whilst these problems have caught the attention of the scientific community over the past 15-20 years, the research that has since been undertaken has failed to identify appropriate mitigation measures, and has done little to advance understanding of why contamination persists. Moreover, the strategies used to educate operators about the impacts of acute mercury exposure, and the technologies implemented to prevent farther pollution, have been marginally effective at best. The mercury pollution problem will not be resolved until governments and donor agencies commit to carrying out research aimed at improving understanding of the dynamics of small scale gold mining communities. Acquisition of this knowledge is the key to designing and implementing appropriate support and abatement measures. (c) 2005 Elsevier B.V. All rights reserved.

Improving awareness of mercury pollution in small-scale gold mining communities: Challenges and ways forward in rural Ghana

This paper critiques the approach taken by the Ghanaian Government to address mercury pollution in the artisanal and small-scale gold mining sector. Unmonitored releases of mercury-used in the gold-amalgamation process-have caused numerous environmental complications throughout rural Ghana. Certain policy, technological and educational initiatives taken to address the mounting problem, however, have proved marginally effective at best, having been designed and implemented without careful analysis of mine community dynamics, the organization of activities, operators' needs and local geological conditions. Marked improvements can only be achieved in this area through increased government-initiated dialogue with the now-ostracized illegal galamsey mining community; introducing simple, cost-effective techniques for the reduction of mercury emissions; and effecting government-sponsored participatory training exercises as mediums for communicating information about appropriate technologies and the environment. (c) 2006 Elsevier Inc. All rights reserved.

Strained relations: a critical analysis of the mining conflict in Prestea, Ghana

This paper examines the dynamics of the ongoing conflict in Prestea, Ghana, where indigenous galamsey mining groups are operating illegally on a concession awarded to Bogoso Gold Limited (BGL), property of the Canadian-listed multinational Gold Star Resources. Despite being issued firm orders by the authorities to abandon their activities, galamsey leaders maintain that they are working areas of the concession that are of little interest to the company; they further counter that there are few alternative sources of local employment, which is why they are mining in the first place. Whilst the Ghanaian Government is in the process of setting aside plots to relocate illegal mining parties and is developing alternative livelihood projects, efforts are far from encouraging: in addition to a series of overlooked logistical problems, the areas earmarked for relocation have not yet been prospected to ascertain gold content, and the alternative income-earning activities identified are inappropriate. As has been the case throughout mineral-rich sub-Saharan Africa, the conflict in Prestea has come about largely because the national mining sector reform program, which prioritizes the expansion of predominantly foreign-controlled large-scale projects, has neglected the concerns of indigenous subsistence groups.