Assesment of the tin industry creation prospects in the republic of Kazakhstan

Abstract

The modern industrial corporations are deeply integrated which is expressed in a variety of connections and interactions. Key among these are technological connections based on which the commodity and cash flows are generated. The global innovative economy impacts economic activity integration and consolidation parameters, leading to organization of strategic management and value creation chains in mesoeconomic network structures with a single logistic center, intangible assets and a special system of long-term contracts. Product fabrication in the mineral resources sector is primarily associated with the large highly efficient companies. Meanwhile present competition in the global resource extraction and a need in further development and growth of the companies, especially in the resource-based economies, become a stimulus for implementation of large-scale strategic projects involving exploration of new mineral resources. As a rule, strategic projects in mineral sector have impact on the population and various business actors, on the development of an industry, a region and a country as a whole. Strategic investment projects in the mining sector are often implemented in complicated organizational, technical and economic setting, including poor infrastructure, harsh natural climatic and geographical conditions, lack of qualified staff, a need in large-scale funding, a need to mitigate material adverse effect on the environment. Large-scale projects implemented in the frontier regions have significant impact on the development of resource- based economies and cross-border cooperation. Selection of a modality for implementation of the mining project and assessment of its effects can be based on the added value concept, which maximizes the value growth. Value creation pattern depends on a number of production stages, depth of diversification, production capacity, company assets and range of products. Here it is important to consider not only project’s positive NPV, but also emerging additional effects related to project integration and implementation in the value chain. The purpose of the study is to justify a methodic approach based on the value chain to the assessment of effects of a large-scale mining project, which may have impact on a holding, a region, national economy and cross- border cooperation. The research carried out helped to justify the use of the added value concept for deciding on the type of pro ject for the field development, the basic and additional effects of a large-scale mining project have been revealed and possible organizational and economic framework for creation of tin industry in the Republic of Kazakhstan has been proposed.