Recommendation of near-earth Asteroids mining to the company board
Introduction
The space mining operations are extremely prominent option for mining companies who are in pursuit of rare metals that are abundant on these celestial bodies. The man’s space expedition reached a landmark with the lunar expedition and since then a lot of mining activities are already planned for this segment of the space. However, the future prospects for mining of asteroids near to earth are very high as this idea is relatively newer to the world of mining. These are almost 13,000 celestial bodies flying very close to the earth in the space and they are potential treasures in terms of their capacity of containing rare earth metals.
This essay aims at recommending the near earth asteroid mining as my firm’s next investment driven project. The essay recommends this investment by explaining the various factors a relatively higher quotient of future prospects and profitability assured in the asteroid mining operations vis-à-vis other space mining operations and lunar mining.
How investment-worthy is the idea of Asteroid mining?
The study conducted by the Keck institute of space studies (KISS) in April 2012 showed that there can be an asteroid mining project coming into action by 2012 when an asteroid of about 1.1 million pounds weight and approximately 7 meters wide will be captured for a mining action (David, 2012). The project was estimated to cost around 2.2 Billion dollars and can be used to extract water and other rare metals from an asteroid close to the earth surface. Since, this project can be materialized by using a team of astronauts and space mining explorers, the chances of precision and success of the project are extremely high (David, 2012). Further, it is also true that such a project will not be initially pursued by other companies because the results are not mapped with respect to an earlier benchmark. Thus, the prime mover advantage is most awaited opportunity that is underlying with the success of associating with the near earth asteroid mining project. If the project success is to be derived by 2025, we have almost a decade to develop the project in advance and prepare ourselves for an entire series of the near earth Asteroid mining operations.
Near earth Asteroid mining: An extremely profitable venture
There are a few prospects of this project which make this project a highly profitable business pursuit specifically for those players who are already in this industry (Cruddas, 2016). These prospects are analyzed with respect to the targeted mining materials and their value is estimated from the composition of the smallest asteroid explored by NASA which is named Amun. Therefore, assuming the mining potential of Amun is the minimum caliber of any asteroid, the prospective profitability calculations are as follows:
Iron and nickel are the most abundant metals found on most of the asteroids near earth and the international markets have the value of these metals ranging close to $8 trillion.
Rarer earth metals like Palladium, Platinum, and Osmium are also readily available on most of the asteroids and they have the potential of adding almost another $6 trillion to the profit figures for the business investors (Science Clarified, 2011).
The asteroids like Amun are also rich in non-metals like Carbun, Phosphorus, Hydrogen, etc. which have a net value of at least $2 trillion in the international markets (Science Clarified, 2011).
Adding it all and assuming the full potential oriented mining operations at even the smallest asteroid like Amun, the net operations can boost the profits by at least $22 Trillion and even the overhead costs are assumed to be $1 Trillion, the overall returns of the project are beyond expectations.
Further, the above-mentioned sources can be used in two different modes with respect to the demand analysis of the project output, they are as follows:
The extracted metals, water, and other objects can be sold in the earth markets with respect to their estimated value driven by the international demand (Cruddas, 2016).
The mined metals, non-metals, and water can be used to create the human friendly habitats at the international space station or at the prospect human colonization ventures in the space and planets (Cruddas, 2016). The supply of these materials from space to the point of the requirement can save the extraneous cost of transportation and still serve as the material supply for perhaps the costliest construction venture in the history of mankind.
Conclusion
The crux of this essay is to develop an effective recommendation for the firm’s investment on the project focused on near earth asteroids owing to the various aspects of profitability explained above. This mining project has immense caliber in terms of deriving the true revenue generation from a celestial source which stands as a potentially huge opportunity(Cruddas, 2016). Further, since this aspect of space mining is almost untapped, the prime mover advantage can really aid in developing a strong foothold over the entire industry. The future prospects of this project are extremely profitable and this makes it the optimum choice for any further investment decision for any firm operating in this segment.
References
Cruddas,S.(2016).The truth about asteroid mining.BBC. Retrieved online from http://www.bbc.com/future/story/20160103-the-truth-about-asteroid-mining
David, L. (2012). Is Asteroid Mining Possible? Study Says Yes, for $2.6 Billion. Space.com. Retrieved online from http://www.space.com/15405-asteroid-mining-feasibility-study.html
Science Clarified (2011). How Humans Will Mine Asteroids and Comets. Retrieved online from http://www.scienceclarified.com/scitech/Comets-and-Asteroids/How-Humans-Will-Mine-Asteroids-and-Comets.html
