Kudelko J.,KGHM CUPRUM Ltd RDC
12th International Multidisciplinary Scientific GeoConference and EXPO - Modern Management of Mine Producing, Geology and Environmental Protection, SGEM 2012 | Year: 2012
Vertical integration of the mining companies is one of the options of their strategic development. It results from specific needs of basic company and means the take-over of outside company involved in one part of the production chain. The integration process may concern mining and processing or mining-processing-metallurgical operations. The paper presents the economic evaluation of strategic activity of mining companies, aimed to improve the management methods, in order to create new structures and to provide the continuous development. Strategy of backward vertical integration towards suppliers, giving new possibilities and allowing for efficient company management was discussed as one of possible options. Advantages offered by this option are significant since they consist in taking over the majority of production process as well as give the means to control the delivery of the raw materials and products. The method of evaluation of the vertical integration profitability presented in the paper may be one of the tools supporting the strategic decisions based on economic premises. © SGEM2012 All Rights Reserved by the International Multidisciplinary Scientific GeoConference SGEM Published by STEF92 Technology Ltd.