Differentiation conditions for mining, ground, and financial rent

1.	Mining rent, although having some specific features related to its source, is closely connected with financial rent and is similar in its economic nature to ground rent, which makes it possible to determine mining rent on the basis of macroeconomic financial parameters.
2.	The infinite variety of the conditions determining the amount of mining rent makes it necessary to take into account the maximum possible number of criteria for its differentiation, thus making much more difficult the calculation and the comparison of the size of the mining rent for different mining enterprises, especially those engaged in mining different kinds of mineral resources.
3.	The use of the proposed model for calculating mining rent based on comparison of the value of the optimized profit of a mining enterprise, cleared of the part of the profit that is not related to the mining and primary processing of mineral resources, and the prevalent level of the bank interest rate related to the cleared cost of the capital assets of the enterprise allows one to take into account integrally the numerous differentiation conditions for mining rent and the risk of possible nonreturn of an investment connected with the specific features of the mining industry as the object of investments.

Translated from Metallurg, Vol. 39, No. 3, pp. 7–9, March, 1995.