Economic and mathematical modeling of the mining industry in the Republic of Sakha (Yakutia): assessment of the resource utilization efficiency

This article presents an economic and mathematical modeling of the impact of the mining industry on the social and economic development of municipal districts in the Republic of Sakha (Yakutia). Five key mining districts were evaluated, i.e, the Aldansky, Lensky, Mirninsky, Neryungrinsky, and Oymyakonsky districts, using the CES (Constant Elasticity of Substitution) production function to analyze the substitution elasticity between capital and labor. These districts account for over 90% of the region’s mineral mining. The study utilizes the official municipal statistics from 2000–2023, including data on the off-loaded volumes of locally produced goods, the value of fixed assets, and the average annual number of employees at these companies. The results revealed the most balanced resource utilization in the Aldansky and Lensky districts, while the low model accuracy for Neryungrinsky district was attributed to coal production volatility and data scarcity. At the macro level, the model demonstrated near-perfect alignment for the Republic of Sakha (Yakutia) as a whole, confirming its applicability for strategic planning. The developed model serves as a tool for optimizing investments, designing sustainable development strategies, and minimizing risks in the mining territories. Study limitations stem from insufficient municipal statistics, that require integration of social and environmental parameters in the future. Further research needs a more differentiated approach to local management to ensure balanced growth.