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ArticleName Risks in mineral mining on a concession basis
DOI 10.17580/gzh.2019.10.10
ArticleAuthor Nazarova Z. M., Kosyanov V. A., Leonidova Yu. A.

Sergo Ordzhonikidze Russian State Geological Prospecting University, Moscow, Russia:

Z. M. Nazarova, Head of Chair, Professor, Doctor of Economic Sciences
V. A. Kosyanov, Rector, Professor, Doctor of Engineering Sciences
Yu. A. Leonidova, Senior Lecturer,


The article is devoted to the problem of systematization of risks that arise in the transfer of mineral deposits to investors for development under concession. The authors substantiate the need for state participation in the construction of infrastructure projects necessary for the involvement in development of hard-to-reach mineral deposits. The article describes the methods of risk management in public–private partnership. On the basis of the analysis of the Russian legislation and world practice of mineral mining, the authors identify the main ways of their transfer to investors for the purpose of development, namely: license agreement, concession, contract for the provision of services and production sharing agreement. The authors consider the advantages of the concession as a way to promote investment processes in development of hard-to-reach mineral deposits (a long period of concession agreements, active-passive role of the state, the possibility of zero budget participation, various forms of concession fees, the mechanism of transferring risks to the private partner, etc.). The necessity of improving the methods of risk distribution between the public and private partners using the concession mechanism is determined. The classification of risks in concession agreements by the type of dependence/independence between the participants is presented. In conclusion, the systematization of risks characteristic of concession agreements in mineral mining was carried out, which facilitates preliminary examination and risk assessment at the stage of negotiations and competition for the conclusion of the concession agreement.

keywords Mineral deposits, subsoil management, mineral resources sector, public-private partnership, concession, concession agreement, risk.

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