The use of natural resources in the twenty-first century became a special kind of economic activities. The rapid growth of world population and, accordingly, of all kinds of production and consumption of goods led to a depletion of various natural resources, considerable degradation of the environment, climate changes and the origination of some ecological, geological and social challenges and threats.
Currently, an indispensable condition of successful implementation of projects on the effective use of natural resources, cooperation and activity coordination, consideration and harmonisation of the interests of all related parties in such projects is the integrated approach.
One single company, no matter how powerful, cannot exclusively provide the complex and very wide range of services and products that is required for projects related to the use of natural resources. This can be resolved by the International Hub of Natural Resources TUTKOVSKY as it attracts hundreds of specialized companies to the implementation of projects.
Taking into consideration above and the twenty-first century realities, the TUTKOVSKY International Hub of Natural Resources provides services to three groups of its customers that implement projects and programmes related to the use of natural resources: to investors, production companies and governments. At first glance, specified groups of the TUTKOVSKY’s clients may seem independent from each other, but they are not. The use of natural resources requires harmonisation of interests of the following:
- Investors, who generate capital in the projects related to the use of natural resources to gain profit;
- Production companies, for which the resources are means required for production (subject and/or means of work);
- Governments (states) as managers of natural resources and local authorities/territorial communities, which are directly and indirectly partners in development processes.
A requirement for the cooperation and coordination of activities, the harmonisation of interests during the implementation of projects and programmes related to the use of natural resources is visually demonstrated by the registered trademark of our company – TUTKOVSKY Tetrahedron.
TUTKOVSKY Tetrahedron: Interaction of the partners in the projects related to the use of natural resources
The relationship between all the partners in projects related to the use of the energy (oil, gas, solid fossil fuels, alternative energy sources), minerals (ore, non-ore and waste of productions), water (underground and surface waters) as well as land resources require the determination and concretization of the roles and interests of each partner in such projects. Just a clear definition of this role and interests allows TUTKOVSKY to create separately a package of proposals of the integrated high-tech solutions for each group of clients, to make the use of natural resources effective, balanced and investment-attractive.
The partners’ action and interdependence is fully implemented if they participate in relevant projects related to the use of natural resources. All kinds of natural resources acquire their costs and additional value only in the course of their engagement to production process. During the period of «non-use» of resource, it cannot be the source of profit, object of investment or introduction of innovative technologies. It concerns also material production and the service industries. That’s why the implementation of projects related to the use of natural resources is beneficial for all partners. On the other hand, all partners are aware that natural resources are in most cases depleted and non-renewable or are qualitatively and quantitatively recovered during a long period. This requires a selection of only rational investment projects, which represents the priority for a sustainable development of the economy, the society and the entire system of environmental management. The owner or manager of these natural resources gives the project a privileged right of use to these entities, which are able to provide almost all benefits to the project partners. The project, in order to become a subject of investment and implementation, has to be subjected to assessment to prove its priority and advantages over other projects. Therefore, for each project, TUTKOVSKY develops and creates models of the use of natural resources, which are characterised by profitability, social and economic viability and the minimisation or the absence of ecological hazards.
Considering the listed conditions, the project can become successful only by ensuring each partner’s interests according to the «win-win» formula. Implementing a strategy where only one/several parties obtain profits in these projects are unacceptable and a priori unsuccessful.
Among the functions of TUTKOVSKY, implementation of a «win-win» strategy is foreseen as the system that harmonises partner interests and ensures a formation of sustainable and highly profitable business. The application of effective communications, the search for financial motivations and the harmonization of interests of all partners is the main task of TUTKOVSKY. Cooperation within these limits offers an opportunity to consider projects as a joint work to achieve success for all parties.
Investors in the projects finance processes of engaging resources in the material and non-material production in order to obtain profit. Projects related to the use of natural resources, as a rule, are medium- and long-term ones due to the intensive investment, complexity and long-term payback of projects. Therefore, investments in such projects are associated with risks that rise in proportion to the investment value. In addition, the use of natural resources is associated with the occurrence of specific risks (geological, environmental, social, etc) that requires professional assessment and prediction. Projects that require investment are large and often long-term projects that contribute to the production, technical and technological innovative transformations.
Production companies in the projects. Projects related to the use of natural resources are capital-intensive and labour-consuming; therefore, they are conditionally implemented to engage the fixed assets and qualified personnel available by the production company. On the other hand, the improvement of production processes, equipment modernisation, and attraction of the up-to-date technologies for production companies are possible only with the participation in innovative projects. As a result, it determines their competitiveness in the market.
Governments in the projects related to nature management provide an access to natural resources.
The government bodies and institutions are considered to be the executive organs of the state that, in the sphere of nature management, act as the owner/manager of natural resources, perform the functions of a distributor of rights, control, monitor and determine the priorities in the use of resources. The government (state) performs a series of functions which concern all other partners of the project:
- Establishment and allocation of property rights and rights to use natural resources;
- Creating a legal framework for the implementation of projects.
The task of the government is to regulate external effects of nature management, which are not reflected in terms of the contract and are not valuated by profitability. Positive effects are related to social and the ecological impact of productions; negative effects occur in the case of irrational nature management. The state regulates external effects, minimizing damages from negative impacts and supporting the benefits from positive ones. Tools to influence users of natural resources are the state control and monitoring of the business activities, setting environmental standards, quotas, etc.
Investors, for production companies, give an opportunity to implement long-term projects associated with considerable industrial, technical and technological transformation, innovation. It ensures the implementation of innovative technologies and the improvement of the management of the enterprises. Investment capital can be realized in the form of financial resources, property and intellectual products. Investors define volumes, directions and efficiency of investments and control their intended use.
Investors, for governments, carry out a development of the infrastructure. During the implementation of the projects, there are directly created objects of production (transport, energy, communication), information (in the form of technologies and information transmission channels as well as its preservation) and social infrastructure. Investors indirectly improve a market infrastructure and a management system.
Production companies provide the investors with access to their own means of production (facilities and buildings for production purposes, equipment, machinery, transportation and energy infrastructure, land lots, property rights, raw materials and products) and skilled workforce. Production companies provide the governments with a filing of budgets for all levels; improve the structure and the volume of the GDP. The expansion of production increases the taxation base for filling the budget, volume of rental payments for the use of natural resources. With the assistance of producers, social effects for the population are created, which improves the level of employment, the level of qualification and ensures social stability.
Governments provide investors with legal guarantees and access to the investment market. This is implemented through the development and implementation of regulatory documents and monitoring their implementation, both as a whole and in relation to individual subjects. The state defines principal directions and objects of investment, which have strategic value, providing them additional preferences and stimulus. The government checks the exploitation of natural resources in carrying out the examination of the investment projects.
Governments provide production companies with the right to use natural resources, create business and conditions that are suited for economic activities. They also provide stimulus and opportunities for investment support and development potential. Governments’ position is directly related to the magnitude of the risks of doing business in the country.
Projects for investors offer an opportunity to obtain profit, capitalise on funds and/or growth of market cost of the companies. An indirect effect of participating in innovative projects for investors is obtaining positive reputation.
Projects for production companies create conditions for the acquisition of positive experience, reputation in the field of use of natural resources. Implementation of projects offers an opportunity to modernize the production structure of the enterprises, to improve the qualification of the workers, to obtain an effective control system and finally to increase the profitability of production. Innovative projects give access and the right to production companies to use natural resources.
Projects provide an opportunity to the governments to improve the structure and volume of the GDP, the development of infrastructure, the social effects for the population and ensure social stability. The state obtains its income in the capacity of the owner or the manager of natural resources, which is formed by rent payments, social deductions, taxes and mandatory payments, etc.
TUTKOVSKY, for all project partners, ensures the understanding and achievement of the objectives of a sustainable development in the form of partnership for the implementation of principles of a rational use of natural resources, the avoidance of negative impacts on the components of the environment and the society. Formation of projects with a sustainable development strategy is profitable to all the project partners, since not only are short-term benefits and damages calculated, but the result is projected for multi-temporal effects for all the periods of existence/realization of the project.
TUTKOVSKY gives an opportunity to its own clients to choose high-tech innovative priority projects, thanks to the access to the innovative products of all suppliers of services and products members of its partner network. Keeping in mind that the initial innovative idea in the field of use of natural resources needs an adequate estimation by the experts of the industry (opportunity of technical performance), by the government (social and ecological aspects) and the investors (economic significance of the project), TUTKOVSKY creates a network of local agents who will help promote the ideas to them in particular projects.
The economic implementation of future projects often depend on the provision of additional financing (additional investors). It is also the task of TUTKOVSKY to find out those interested in the project.
TUTKOVSKY ensures the harmonisation of interests of all project partners through a system of effective communication. TUTKOVSKY not only serves for operative transfer of the necessary information, but also ensures its understanding and active participation of all project parties, by having a vision that benefits everyone, and reduces complications that can originate in the case of particular partners and influence the implementation of the project as a whole.
Thanks to the harmonisation of the interests, the owners and managers of resources will obtain benefits from the fact that the resources will be involved in production and its rational use will be ensured. For other partners of the project, the access to all necessary resources (land, water, infrastructure, etc.) is ensured.
The principles intended for the harmonisation and the coordination of actions of all project partners on the use of natural resources provide for liability and competence, transparency, reliability and validity of project decisions in TUTKOVSKY activity.
Competence of contractors is one of TUTKOVSKY's competitive advantages. The suppliers of services and products of the International Hub provide the client with services of specialists having an appropriate qualification, formation, with a long experience and high reputation in all spheres necessary for the implementation of projects on the use of natural resources. For all partners, the requirements about the qualification of their workers are confirmed by appropriate permits, licences or certificates. The availability of effective communication within the Hub and with clients is created by the unique prerequisites for reasonable collaboration of the qualified specialists, contractors, investors/shareholders, state authorities and societies/communities. At all stages of the project, the timely and full transmission of the key information from the contractor to the contracted is ensured.
The TUTKOVSKY International Hub of Natural Resources is a transparent business environment, within which clear and open information is given to all stakeholders of the project to make rational decisions. The projects maintain transparency for both the governments and the investors in each step of the process of its implementation.
The openness is ensured by the required amount, quality, clarity for users, relevance, comparability, essentiality of the information.
Authenticity and substantiation provide conditions that ensure confidence in correctness of the chosen project integrated high-tech solutions thanks to the competence of service and product suppliers and the implementation of other principles of TUTKOVSKY's functioning.
The rationality/reasonableness of project decisions is based on a general view of the project partners on business medium and skills, which ensure a coordination of actions, adequacy of work and ability to develop.
Liability of TUTKOVSKY – The ability to analyse special conditions for the projects, to predict positive and negative consequences of any activity, to inspire project partners to act in the interests of the system and not just in their own interests.
The main result of TUTKOVSKY’s activity for all partners is the optimisation of material, labour, financial resources and the appropriate optimisation of expenses for a project implementation.
Knowing the requirements of all client groups, and of each group separately, TUTKOVSKY provides targeted services that, thanks to integrated high-tech solutions, ensure the effective and rational use of natural resources:
- Management of projects and programmes related to the use of natural resources;
- Organization of new service companies and productions of certain products to meet the needs of local clients.
- Provision of the full-range of services for projects related to the exploration and use of natural resources:
- Services related to the exploration and the use of energy (oil, gas, solid combustible minerals), minerals (ore, non-ore and production wastes) and water (underground waters) resources;
- Services related to the exploration and the use of land, water (surface water) and unconventional energy resources;
- Environmental Impact Assessment (EIA) of the implementation of new and existing projects, elimination of negative effects of production activities and prevention of environmental risks.
- Production and supply of materials and equipment required for the implementation of projects related to the exploration and use of natural resources:
- Production and delivery of materials and the equipment required for the exploration and the use of energy (oil, gas, solid combustible minerals), mineral (ore, non-ore and production wastes) and water (underground waters) resources;
- Production and delivery of materials and the equipment required for the exploration and the use of land, water (surface water) and unconventional energy resources.
- Management of regional programmes related to the integrated study and the rational use of energy (oil, gas, solid combustible minerals), minerals (ore, non-ore and production wastes), water (underground waters) resources;
- Services related to the study and use of natural resources:
- Regional geological investigations;
- Rehabilitating and monitoring the environment after the completion of projects related to the use of natural resources.
- Managing the projects and regional programmes related to the integrated study and rational use of land and (surface) water resources, as well as alternative energy sources.
Our advantages are attracting highly qualified professionals into the powerful network of partners, which includes a number of leading companies, diverse management experience in the most complex projects and readiness to satisfy most needs of investors, industrial companies and governments to implement projects with efficient and sustainable use of natural resources anywhere in the world.