What are the financing channels for mining enterprises?

Mining financing refers to the active financing and capital utilization of mining enterprises in the process of mineral exploration, mining and production. Mining industry has its own characteristics, and its financing methods and sources are different in different exploration and development stages. The biggest characteristics of financing in exploration stage are high financing risk, small capital demand, high rate of return when successful, and relatively few financing methods can be selected. The characteristics of financing in the development stage are large capital demand, low risk, decreased return on capital, and a variety of financing methods to choose from; When the mine is put into production, it is a new stage of mining development, and the capital demand at this stage is mainly liquidity and debt repayment. 2. Project Financing Project financing started from the oil field development projects in the United States in the 1930s, and then gradually expanded its scope, and was widely used in the development of mineral resources such as oil, natural gas, coal, copper and aluminum. For example, the Escondida copper mine in Chile is the largest copper mine in the world with an annual output of 800,000 tons, which was developed through project financing. As an important financing method of international large-scale mining development projects, project financing is based on the good operating conditions of the project itself and the cash flow after the project is completed and put into use as repayment guarantee. It does not need investors' credit or tangible assets as a guarantee, nor does it need the repayment commitment of government departments. Loans are granted to project companies specially established for project financing and operation. 3. Equity financing Equity financing mainly refers to the enterprise's capital increase through public offering of shares or private placement, so as to carry out financing without paying principal and interest, but it needs to distribute dividends. The advantage of equity financing lies in: equity financing absorbs equity capital, so the pressure of company's equity return or even dividend is less, which enhances the company's ability to resist risks. If we can attract strategic investors with specific resources, we can also take advantage of strategic investors' advantages in management, market channels, government relations and technology to produce synergistic effects and rapidly expand our own strength. The biggest risk of equity financing is that the dilution of equity may make the company lose control and part of its income rights, and even lead to major differences with new shareholders in company strategy, business objectives and business behavior, leading to difficulties and even division of the company. Equity financing methods include venture capital, private placement, pre-listing financing and MBO. 4. Debt financing Debt financing mainly refers to the obligation of enterprises to borrow from outside and repay the principal and interest on schedule, mainly including bank loans, trust plans, short-term financing bonds, corporate bonds, convertible bonds and asset-backed securities. (1) Bank loan. (2) entrusted loans. Entrusted loans are loans provided by clients such as government departments, enterprises, institutions and individuals, and issued by financial institutions (trustees) according to the loan object, purpose, amount, term and interest rate determined by the clients. The entrusted financial institution is only responsible for issuing, supervising the use and assisting in recovery, and does not bear any form of loan risk. Scope of application: The loan object and purpose determined by the entrusting party must comply with relevant national laws, regulations and policies, and the project itself has good economic and social benefits. (3) Trust mortgage loan. The project party mortgages the mining right certificate or other documents that can be pledged to the employer, and the employer entrusts the bank to lend money directly to the project party. (4) mineral products mortgage loan. Dayu County, Ganzhou, Jiangxi Province is known as the "Tungsten Capital of the World". In recent years, the financial institutions in this county have tried out and popularized the pledge loan of tungsten sand, which has opened a "new prescription" for broadening the financing channels of loan financial institutions in resource-based areas and solving the financing difficulties of small and medium-sized mining enterprises. In view of the abundant tungsten resources in this county, the financial institutions in this county have stepped up the loan marketing for tungsten products enterprises, combined with the actual situation, boldly innovated the loan management, and pledged the quality of tungsten as a loan for tungsten enterprises, realizing a "win-win" between banks and enterprises. As long as the enterprise's collateral value is sufficient, it will actively participate in the financing business with mineral products as collateral and support its development.