Mining of Mineral Deposits

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Features of legal support for the operation of small atypical Ukrainian coal mines under contractual conditions of a public-private partnership

Roman Kirin1, Sergii Hryshchak2, Oleksandr Illarionov1

1V. Mamutov Institute of Economic and Legal Research of NAS of Ukraine, Kyiv, 03057, Ukraine

2Dnipro University of Technology, Dnipro, 49005, Ukraine

Min. miner. depos. 2020, 14(2):128-137

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      Purpose is to study and develop the economic and legal model of small atypical coal mines basing upon the analysis of the operations under contractual condition of public-private partnership as well as upon adequate legislative and engineering support in the context of pressure of internal and external factors.

      Methods. The study has been carried out with the use of economic and legal approach being the evaluation of actual techno-economic activities of the two market participants, i.e. small atypical mine and state-owned mining enterprise, identification of their interaction problems and determination of obstacles preventing from their cooperation. Component two of the approach is the analysis of available (legal) mechanisms for regulatory management of relations between the two market participants as well as formulation of appropriate proposals to conclude such an economic agreement which would satisfy demands and involve governmental interests and interests of a private investor (partner).

      Findings. It has been determined that economic contracting under the conditions of engineering as well as procedural and institutional operational dependence of a small atypical coal mine, and hypothetical liquidation of a state-owned coal mining enterprise is possible under the conditions and in accordance with the procedure by the legal system of Ukraine. A type of agreement concerning mutual provision of services with the required appendices has been identified to normalize production activities, to control operational safety, and to minimize the socioeconomic results of such potential conservation (liquidation) of unpromising mines.

      Originality.Innovative model of legal support for a small atypical mine establishment and operation has been developed which has never been formulated in such a proposed manner in Ukrainian scientific sources, and in the foreign ones.

      Practical implications.The study results may be applied to develop business relations in the context of a coal industry, i.e. to establish small atypical mines, to solve the severe socioeconomic, investment, and environmental problems of coal mining Ukrainian regions with unpromising mining objects, and to exercise influence on the contents of a concept aimed at extraction industry reforming as well as its implementation plan.

      Keywords: small atypical mine, state-owned coal mining enterprise, public-private partnership, contractual terms


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