Economic Analysis Tools for Mineral Projects in Space

The charge to the workshop was to propose projects of commercial potential utilizing resources available in space. Many of the proposed projects involved resources that will have to be mined, either to supply a primary product or as raw feedstocks for products manufactured in space or for construction projects in space. Mining engineers are accustomed to dealing with all aspects of commercial projects, from initial planning through financing to final closedown. The economic analysis tools presented here comprise an overview of the tools provided to mining engineers, and are offered here as tools that can be applied effectively to space ventures. Space and mining projects share fundamental similarities: high risk, long lead times, and high capital cost. The analysis starts with the definition of ore, which is purely economic: ore is a geologic material that can be extracted from the ground at a profit. For profit to occur, sales must exceed costs, or: Sales-Costs = Profit