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Prospects for Mining Asteroids: Into this World or Out of the Question

Author

Listed:
  • Carol Dahl

    (Division of Economics and Business, Colorado School of Mines)

  • Ben Gilbert

    (Division of Economics and Business, Colorado School of Mines)

  • Ian Lange

    (Division of Economics and Business, Colorado School of Mines)

Abstract

Depletion of minerals and other non-renewable resources has long been a source of worry to industrial economies. This worry waxes when markets are tight and wanes when they are not. However, evidence has continued to mount that there are staggering amounts of minerals in space that are technically within our grasp. Scientific work has considered mineral availability and technical ability to mine on near earth objects. Within the last decade a number of space related industries have gained attention. While availability and technical feasibility are both necessary conditions for this industry to develop, they are not sufficient. Rather sufficiency also requires financial feasibility. Although studies have considered the costs of mining asteroids, we are aware of no papers that carefully model the effects on terrestrial mineral market structure with the injection of extra-terrestrial minerals. Our contribution is to consider the current state of mineral markets and provide a model of firm entry to derive implications to the market from asteroid mined minerals entering the market. We conclude with a numerical simulation to demonstrate what prices asteroidal entrants might face for a variety of metals.

Suggested Citation

  • Carol Dahl & Ben Gilbert & Ian Lange, 2019. "Prospects for Mining Asteroids: Into this World or Out of the Question," Working Papers 2019-03, Colorado School of Mines, Division of Economics and Business, revised Jan 2021.
    • Handle: RePEc:mns:wpaper:wp201903
    as

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    File URL: http://econbus-papers.mines.edu/working-papers/wp201903.pdf
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    File URL: http://econbus-papers.mines.edu/working-papers/wp201903v2.pdf
    File Function: Revised version, 2020
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Mining Space; Asteroids; Milling; Smelting; Magnetic Precious Metals; Demand; Cost;
    All these keywords.

    JEL classification:

    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices

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