Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Artist rendition of a mining operation in space. (Screenshot via YouTube)
After months of deliberation, the U.S. Congress has unanimously passed a legislation that establishes legal rights for citizens to own resources in outer space, which would ease asteroid mining companies plans.
Until now, there was no legislature clarifying issues such as whether resources mined from celestial bodies could be sold on Earth, or what would happen if someone other than a base-owner needs or wants to land there —a key requirement for asteroid mining ventures such as Planetary Resources.
“Many years from now, we will view this pivotal moment in time as a major step toward humanity becoming a multiplanetary species,” Eric Anderson, co-founder and co-chairman of the Redmond-based company, said in a statement. “This legislation establishes the same supportive framework that created the great economies of history, and it will foster the sustained development of space.”
The ruling, known as H.R.2262 — SPACE Act of 2015, also extends the regulatory “learning period” for commercial spaceflight ventures through 2023, confirms that the International Space Station should stay in operation through 2024, and extends indemnification of commercial launches through 2025.
Some asteroids are packed with minerals valued in the trillions of dollars.
U.S Congressman Bill Posey said the set of regulations serves as a “landmark for American leadership in space exploration.” This, as the country is recognizing basic legal protections in space, fully accepting asteroids and other space objects as potential sources of rare minerals and other materials that can improve the manufacture of a wide range of products on Earth, the Florida Republican representative added.
For non-U.S. citizens, the norm includes some important disclaimer as it clearly states that it does not assert “sovereignty or sovereign or exclusive rights or jurisdiction over, or the ownership of, any celestial body.”
Geologists believe asteroids are packed with iron ore, nickel and precious metals at much higher concentrations than those found on Earth, making up a market valued in the trillions of dollars.
President Barack Obama is expected to sign the language into law in coming weeks.
5 Comments
Philip S. Baker
Already, important segments of the base metals complex (e.g., copper, aluminium, etc.) are struggling under the weight of oversupply, reflected in ballooning inventory levels. The passage of the Space Act of 2015 (HR 2262) and the investment by asteroid mining company, Planetary Resources, betoken a new era of extra-terrestrial mining. However, when developments in seafloor mining (pioneered by firms such as Nautilus Minerals Inc.) are added to the mix, a very likely scenario that emerges is the substantial expansion of the feedstock sources for an already-bloated base metals complex. The inescapable question is: Will there be a commensurate exponential increase in demand for base metals through a proliferation of innovations resulting in new base metals-intensive end use applications? If not, then oversupply, leading to soft prices, is likely to be a feature of important segments of the global base metals complex for several years out into the future.
sunmines
Come on, Phil, we’re going to the stars, …and we’ll need all the resources we can get.
StoneAge
Who determined that the US has the right to dictate who can and cannot sell anything on the earth, outside the US borders of Washington DC, let alone make any legislation concerning anything off planet?
The USA does NOT own anything outside it’s borders. Nor does she have any “right” to pass laws concerning same.
Never mind something not even of this world.
Next thing you know the USA will claim ownership of the sun and charge a tax on anyone that has a solar panel.
Arrogance at it’s finest.
Nice try, but doesn’t hold any water. Whether passed or not.
Restless Boomers
Let’s figure out how to get Congress up to an asteroid so they’ll be out of our hair.
Prospector
Will these rights be located (mining claim) or leased (leasehold)? If the U.S. cannot defend sovereignty then it cannot legitimately dispose rights as either locatable or leasable. Staking a mining claim on an asteroid is going to be a real challenge, but is do-able.