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Peschansky Aleksandr

Peschansky Aleksandr 

Higher school of economics and management

Faculty: Economy

Speciality: Economics of fuel and energy complex

Scientific adviser: Rozumnaya Natalya  


About author

Evaluation of investment attractiveness of the coal- mining enterprise

(Summary of research and developments)


Introduction (Motivation)

In this time the problem of the search for a new ways of development of the industry, out of the protracted crisis situation is the most actual. It is bounded with the fact that the coal industry is in need of modernization and technical re-equipment. The country is not able to implement the program of coal industry development with private capital. But the problem is how to attract investor’s attention to the loss-making mine. The scientific value of work consists of the development of evaluation of investment attractiveness of the Ukrainian coal mines. At this stage of development, this problem has been put on the first plan.

Survey of research and developments DonNTU

In DonNTU this problem involved such authors: A.A. Kravchenko, I.K. Demin, I.O. Mitroshevich

Main planned results

Despite the positive macroeconomic changes that have occurred in recent years, the majority of the coal-mining enterprises are still in a state of crisis. At the same time, for a stable economic development of society is necessary to ensure stable work of the enterprises of the industry for a long time, provided the maximum possible increase of efficiency of their work. One of the main directions of the decision of this strategic task is to increase the quality of mine fund, which can be achieved by improving the performance of enterprises and changes in the structure of the industry. In the conditions of national economy state transformation to support the industry, it is necessary the coal-mining enterprises to be persevered. Still the problem of limited production resources of the state remains. The task of management consists precisely in the fact, to ensure optimal allocation and to gain the maximum effect from its use. IN order to solve such managerial task is necessary to create an integrated criterion for the assessment of the state of the mines as an economic mini system. [1] One of the prerequisites for sustainable development of the national economy is an effective use of available resources at all stages of industrial production. Inefficient work of many enterprises of the coal industry, which is the base for other sectors and strategic from the point of view of energy security of the state, reduces the effectiveness of functioning of Ukrainia eonomy in general. Restructuring of mine fund should provide for the minimum number of mines a maximum concentration of production and the high efficiency of working coal mining enterprises. One of its central issues is targeting investment in a simple and expanded reproduction capacity due to the scarce investment funds. Compliance with the principles of the address investment will increase the level of development of production facilities and modernization of the group's mines, having a significant potential and good chances to remain competitive. Production management problem of resources and parameters of operation of mining enterprises, investing in a simple and expanded reproduction in the coal industry have been studied by many domestic and Russian scientists: Amosha A.I., Astakhov A.S., Burchakov O.S., Galushka A.S.Kabanov, A.I., Pasechnik N.V. , Raikhel'B.L., Reznichenko S.S., Reshetilova T.B., Sally V.I. and others. However, in the process of coal industry restructuring the need to improve the investment policy appeared in order to ensure the targeted investment in some coal mines. This improvement is impossible without an objective assessment of the level of investment attractiveness of the coal mines and the development of control tools of parameters, which determine it. An existing situatuion shows the urgency of a theme of the dissertation devoted to theoretical and practical aspects of control parameters, defining the investment attractiveness of the coal mines. [2] The main provisions of the recently developed programs of reforming of domestic mine indistry steel privatization investment-attractive mines, the organization of public-private partnership for the future and tightening of unprofitable firms. In addition, it involves the elimination of the state ENTERPRISE "Coal of Ukraine", as well as the reduction of subsidies industry by 80%. In the last two months the Ministry of coal industry of Ukraine has completed a preliminary stage of the distribution of the mines that are owned by the state, by category and has promulgated the relevant lists. The result of the analysis of 63 mine related to the perspective and the total necessary investment sum - of 47.3 billion uah. In the list of loss-making coal-mining enterprises, which is expected to close,103 mines were entered, two mine control systems, one coal mine and one of soes in the industrial association on brown coal mining. Cabinet has allocated Минуглепрому from the stabilization fund of the state budget 286 million ua grivnas for financing the process of their elimination, which should be completed in the current year.

And, finally, a preliminary list of mines was publishedunder the category of investment-attractive. It consists of 38 enterprises, recommended for privatization. Thus, the agency had fulfilled the main part of the work, provided by the recently created the program of reforming of coal branch for the current year.[3]

Beyond are recommendations for increasing of investment attractiveness of the mine.

1. To increase the profit of the enterprise should more fully use the resources of the are disposal, and first of all, it should use the provision on the production at the existing it equipment additional products. An increase in production reduces the cost per unit of production. Well and in addition, further production of cost-effective products already in itself gives additional profit. 2. Cost reduction can also significantly increase the company profit. As described in the previous paragraph, one of the factors of cost reduction is the increase in volume of production. Other factors are:

- improvement of the level of organization of production, which has the purpose to minimize or even eliminate irrational expenditures;

- coordinated work of all components of the production process (primary, secondary, maintenance of production);

- optimization of the flow processes at the enterprise;

- improvement of quality of released production.

3. The important factor of reception of the additional income is the optimization of the sales structure.

- increase of the share of small-scale production;

- carry out timely devaluation of products, they have lost their initial quality;

- to implement an effective price policy, differentiated in respect of certain categories of customers;

- to improve the advertising activity, to raise the effectiveness of advertising activities;

4. To improve the management of the enterprise, it is necessary to:

- to allocate the structural subdivisions and structural units of the company cost centers and centers of responsibility;

- introduction on the enterprise the system of management accounting cost in terms of the centers of the responsibility, cost centers and separate groups of products;

- to carry out systematic monitoring of the operation of the equipment and make timely him debugging in order to avoid the decrease of the quality and production of defective products;

- at introduction in operation of new equipment to give enough attention to education and training, improve their skills, and for the effective use of the equipment and to prevent the crash through the low qualification;

- training of the employees, which is accompanied by the growth of labor productivity.

5. Given the primary importance of raising labour productivity for the competitiveness of enterprises, heads and specialists of all levels in the forward-looking organizations should develop and implement programmes to performance management. These programs at the enterprise include the following stages:

- measurement and evaluation of the achieved level of performance for the enterprise as a whole and on separate kinds of labour in particular;

- search and analysis of the provisions of productivity on the basis of information obtained during the measurement and evaluation;

- development of the plan of use of reserves of increase of labor productivity, which should include specific terms and measures for their implementation, financing the costs of these activities and the expected economic effect from their implementation, define responsible executors;

- development of the systems of motivation of the employees to achieve the required level of performance;

- control over the implementation of actions stipulated by the plan and the program, and control their implementation;

- measurement and evaluation of the real impact of proposed activities on labour productivity growth.

6.Compliance with all of these recommendations will help the enterprise to emerge from the crisis, to establish its activities, to earn profit and to achieve a significant level of investment attractiveness. Talking about the control of the material resources at the mine, which include energy, it is necessary to reduce the cost of materials. This search should be organized in the following directions:

- improvement of the consumption of materials;

- improvement of the organization of acceptance of materials and ensure their safety until the beginning of the industrial consumption;

- saving materials in the process of industrial consumption;

- prolongation of service life of the materials of long-term use;

- re-use of materials;

- organization of material encouragement of employees in the economy.[4]

A necessary factor for investor attraction is the possibility of acquiring a controlling stake in the coal mine in the process of privatization. It should be borne in mind that the industrial investor seeks to control the production and receive from this profit, and not speculate shares. The basic direction of work for attraction of investors should be changed starting from the legislative base (in relation to laws regulating the issues of coal mining). The right to use the mineral resources within the mining allotment should be exceptional, i.e. may not simultaneously be granted to others. Serious step on attraction of investments in the state for drilling wells with the purpose of large-scale decontamination of coal layers is adoption of the Law "On gas (methane) of coal deposits", adopted on may 21, 2009, which defines the legal, economic, ecological and organizational principles of the activity in the field of geological study of gas. Including industrial research production, use and recovery degassing. [5] Private capital in most cases convincingly proves its advantages. Among them - optimization of business processes, reduced costs, increased investment in the acquisition of equipment. For example, on the "Павлоградугле" from the moment of privatization purchased sixteen mining and eleven heading harvesters (this year it is planned to purchase another 16 harvesters), which allowed to increase the competitiveness of production and to reduce the share of manual labor. Without the transfer of mines in order to make the ownership private and their inclusion in the vertically integrated chain prospects of the industry will be a little. Apparently, realizing this, Minugleprom trying to work out a mechanism, which will begin to privatize mines extracting coked coal, to create bundles "mine-processing factory-coke-metallurgical plant". If this mechanism launch, privatization of such mines may be interested in and metallurgists, which are among the largest consumers of coked coals in the country. So, in the coal industry will come additional investments, which will help to improve its development. [6]

Conclusions and future research

From everything said above, we can make a conclusion that the current state of the coal industry of Ukraine has the crisis proportions, this is due to overage of hfactors, described in the work. Recently a favorable investment climate, caused by the situation on global markets and changes in the legislative base started to appear. One of the important directions of the state policy should be the continuation of the work on increase of investment attractiveness by changing the legislative base, further privatization and competent forecasting of demand for coal.[7]

References

  1. Бардась Артем Володимирович. "Разработка оценки инвестиционной привлекательности угольной шахты с учетом внутренней экономической энтропии." Диссертация / Дис... канд. екон. наук: 08.06.01 / Національний гірничий ун-т. — Д., 2003. — 182арк. — Бібліогр.: арк. 166-182.[Електронный ресурс] .— Режим доступа: www.dissland.info
  2. Трифонова Олена Василівна. "Управление параметрами, определяющие инвестиционную привлекательность угольных шахт." Диссертация /дис... канд. екон. наук: 08.06.01 / Національний гірничий ун-т. — Д., 2006. — 192арк. : рис., табл. — Бібліогр.: арк. 168-182. [Електронный ресурс] .— Режим доступа: http://www.disszakaz.com
  3. Елена ГЕРАСИМОВА. "Закрыть или приватизировать?" // №32 (136) 17 августа 2010. Украинская техническая газета. [Електронный ресурс] .— Режим доступа: http://eutg.net/ru
  4. Науменко І. О. Індивідуальна робота з дисципліни «Інвестиційна привабливість підприємства» на тему: «Підвищення інвестиційної привабливості промислового підприємства» Донецький національний технічний університет. [Електронный ресурс] .— Режим доступа www.masters.donntu.ru
  5. Дмитрий Защихин. "Проблемы повышения инвестиционной привлекательности предприятий угольной промышленности Украины" / Угольный Консалтинговый Центр. [Електронный ресурс] .— Режим доступа http://www.uamc.com.ua
  6. Наталка Прудка, Игорь Лубчук "Угольный ренессанс" [Електронный ресурс] .— Режим доступа www.expert.ua
  7. Уланенко Б. ,Шаповалова Э. В. "Повышение инвестиционной привлекательности угольной промышленности Украины" [Електронный ресурс] .— Режим доступа http://www.science-community.org

NOTE

When writing this master of the abstract qualifying work is not completed yet. Date of final completion of work: 15 December 2011. Full text of the work and materials on the subject of the work can be obtained from the author or his / her supervisor after this date.


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