Corporate mine development: essence, characteristics and mechanism of implementation

Yuliya S. Zaloznova, Iryna P. Petrova


The paper deals with Corporate Mine Development (CMD) as one of the interaction forms between government and business on principles of public-private partnership.It is known, that modern conditions demand new forms and models which would allow to increase inflow of investments and to improve the management of state-owned mines. In that regard it should be noted that Corporate Mine Development is a promising form of public-private partnership. Much attention is given to the analysis of the law of Ukraine«On public-private partnership». The possibility of referring the Corporate Mine Development to public-private partnership is analyzed in the paper. Authors state, that Corporate Mine Development as a form of public-private partnership involves provision by state the right to manage the mine offshore, adjacent to the mine, with its subsequent management (use, operation) on condition of making commitments and fulfilling investment obligations by private partner according to the contract. As a part of the licence agreement obligations between the state and the private sector under the Corporate Mine Development scheme arise for both parties: a private party undertakes to adhere to certain rules in exchange for the fact that the state grant it such right.Based on the results of a study on the Corporate Mine Development authors offer a CMD implementation mechanism, which consists of five stages: CMD implementation (offer to implement, initiation), analysis of the CMD implementation effectiveness, study of socio-economic and environmental effects of the CMD implementation and a decision on the holding, organization and opening tenders and auctions, conclusion of a contract for the development of a mine field with the winner of the auction.Corporate Mine Development is a perspective form of public-private partnership in the coal industry, which will improve the management quality, economic efficiency of coal-mining industry and will allow to attract private investments to state-owned coal-mining enterprises.


public-private partnership; Corporate Mine Development; private sector; public mine; license; mechanism; coal industry

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