The mechanism of economic diversification of the mining industry in the Caucasus regions

It is proved that the effectiveness of diversification of mining companies is provided by optimizing the cost of production of marketable products from new raw materials by new technologies. Basic principles of system component of regional policy stipulate the presence of creative resources in regional industrial complex in order to ensure its innovative modernization, including diversification. The effectiveness of diversification defines correctness of the choice of its implementation instruments, focusing on achievement of the above economic results in the development of the regional system. It is determined that the diversification of the mining enterprises is more efficient than building new businesses, primarily due to the use of existing production assets and stocks, including those considered to be lost. Diversifiable Russian subjects may receive additional development opportunities in overcoming the limitations of development of the technological diversification by activation of economic processes.