Asteroid mining used to be a science fiction but it seems like things are getting closer to reality. Several private companies have focused on how to launch satellites with risks for future colonization. Due to the technological advancement, asteroid mining became legitimate prospects.
As Resource World pointed out, there are millions of asteroids in space and number of them orbits between Jupiter and Mars. The report revealed that asteroids closer to earth are more carbon and silica base like the Earth’s crust. It has only little valuable minerals.Go to comment section for pizza feedback.
On the other hand, asteroids that are iron-based have other elements. According to some scientist, asteroids may contain the following:
- Lucratively-high proportions of gold
- even rarer metals
It was revealed that these elements are used in:
- metal alloys
- permanent magnets
- electric motors (for electric vehicles)
To identify the asteroids that have the earlier mentioned metals has become advance with the help of radar, infrared detection, and other technologies. Once the valuable asteroid is identified, one can capture it and place it into Earth’s orbit and eventually brought safely down to our planet, which can be in pieces.
In line with this, several private companies want to have these valuable asteroids. Some are already raising funds from willing investors. Moreover, the price for 200-meter diameter rock that has 80 percent iron is one hundred dollars per kilogram. Thus, it will cost about US$800 billion for exotic and other rare elements.
The Tanzania mining sector will lock out law firms, insurance companies, and foreign-owned banks. This is reportedly part of the new fierce regulations that intend to limit the ownership in the mining-related matter.
Tanzania, famous for being the fourth largest producer of gold in Africa, is set to overhaul the fiscal and regulatory regime of the mining sector. They aim to gain more profits from its vast mineral resources. The new regulation was passed last month and under it, foreign-owned mining groups are obliged to offer shares to the local government and the companies.
According to Reuters, the spokesperson of the mining ministry revealed that the new regulations became effective after Tanzanian President John Magufuli ordered authorities to make it happen. These new rules will restrict the old ways of foreign-owned businesses and establishments.
“A contractor, sub-contractor, the licensee (mining company) or other allied entity shall maintain a bank account with an indigenous Tanzanian bank and transact business through banks in the country,” according to the Mining (Local Content) Regulations of 2018. “The insurable risks relating to mining activity in the country shall be insured through an indigenous brokerage firm or where applicable an indigenous re-insurance broker,” the local content regulation added. Major foreign-owned banks operating in Tanzania include the following:
- Barclays Bank
- Standard Chartered Bank
- Stanbic Bank
- South Africa’s First National Bank (FNB)
Moreover, the local content rules are yet to be released, publicly. It is only the first among nine separate mining regulations issued by the mining ministry in January 2018. The new rules also put an emphasis to require “indigenous Tanzanian companies” to have five percent equity participation in a mining company. This is in addition to the 16 percent government free carried interest. At least $5million fine awaits the companies that failed to comply with these new requirements.
Mining investments in Mexico have ongoing and evolving risks like many others countries in Latin America. Mining Technology revealed that a report says the country’s tax agency was holding more than $360m in tax rebates owed to six Canadian miners. This includes $230m for Goldcorp, despite the stability of Mexico’s government and its favorable investment environment. The situation leveled up into a showdown ongoing between the Mexican Government and the Canadian mining firms operating there.
Mining companies, which export much of their product and spend heavily on machinery and equipment, typically generate large VAT returns. Head of Mexico’s Tax Administration Service Osvaldo Santin addressed the problem in an interview, saying the agency had seen a spike in VAT refund requests.
Meanwhile, other investment risks in Mexico mirror problems in neighboring countries, for example, cartel activity, resistance to projects from indigenous peoples and illegal mining. “We see illegal gold mining and gang activity as more pertinent downside risks to mining in Mexico. Unregulated gold mining often attracts violent criminal activity to control the deposits and sell the material and, in general, the widespread presence of criminal syndicates can create security concerns for authorized mining operations,” says Molly Shutt.
Furthermore, two striking workers were fatally shot at a blockade mounted in November 2017. This was reportedly a part of a stoppage they were participating in at a gold mine owned by Toronto-based Torex Gold Resources. These strikes, tragedies, and actions do not only impact lives, but also lead to the reputation, incurred costs, and loss of output.
In the end, Shutt believes that the rewards are inevitable while these trials persist. BMI’s Americas Mining Risk/Reward Index reveals Mexico in the seventh rank out of the 17 countries. “The country’s score is boosted by a well-established mining industry, diverse competitive landscape, and low labor costs,” Molly Shutt shared.
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The executives will look for the Democratic Republic of Congo’s mining minister at this week’s Mining Indaba in Cape Town. This is to explain major shifts in royalties and tax policy in the country’s mining bill.
According to Financial Times, the bill was reportedly approved by parliament. It only awaits the president’s signature at the moment. The new mining bill is the product of an odd legislative saga. For a long time, Congolese people have requested a reform of the mining code. After two years of uncertainty surrounding the bill’s status, some, including mining minister Martin Kabwelulu, declared the mining bill to be suspended.
Meanwhile, the bill’s positive changes include a requirement that 0.3 percent of companies’ turnover goes to local development. However, raising DRC’s credibility with mining investors could be damaged if taxed are suddenly raised. The bill includes an increase in royalty rates from 2 or 2.5 to 3.5 percent for non-ferrous and precious metals. Aside from this is up to 10 percent for minerals, which considered “strategic.” The law professes to be instantly used to existing mining projects as they ignore the current code’s 10-year stabilization before any legal or fiscal changes apply.
On the other hand, one additional concerning issue is the corruption that has characterized the sector goes unaddressed. The new bill explicitly permits government officials to own mining companies. This is along with a new requirement that Congolese nationals must own at least 10 percent of the mining companies’ capital. As expected, this creates conflicts of interests.
In the end, it will probably create costly legal complications, as its affectivity could be delayed if this bill becomes law. Also, this will potentially lead to the need for further revisions in the near future. The end result risks failing to fulfill its promises to the Congolese people five years after the mining code review started. Maybe more fund in the bank is needed to accomplish this project.
A question that mining business consultants often encounter is the one as to whether it is possible for an ordinary person to establish a mining business. This question is borne of the commonly-held view that only people who are ‘well-connected’ can establish mining businesses. So, in other words, the question is as to whether it is possible for an ordinary, ‘non-connected’ person to establish a mining business.
The simple answer to the question is in the affirmative: that, yes, it is indeed possible for an ordinary person to establish a mining business. But there are several other considerations that come into play. When all is said and done, whether or not an ordinary person will be able to establish a mining business depends on what mineral we are looking at, what scale of mining we are looking at, and where the mining is to be done. An ordinary person may struggle to get a chance to engage in the mining of the strategically important minerals, like uranium or cobalt. He or she may struggle to engage in very large-scale mining projects or to engage in mining in certain countries where there are political intricacies to be dealt with.
When it comes to small-scale mining of non-sensitive minerals in non-sensitive locations, pretty much anybody can get started. That is just the way pretty much anyone can buy the best in ear headphones for the gym. Or is just the way pretty much anyone can buy over-ear stereo headphones. But then, not everybody can be allowed to buy a radar system or a submarine system.
Mining plants tend to require a lot of electricity power, if they are to operate optimally. Thus, as a person considering setting up some sort of mining enterprise (especially one that involves a bit of processing for the minerals), you have to think about how to access electric power. And in that regard, you have two major options, for powering a mining plant.
The first option for powering a mining plant is where you can simply connect the plant to the nation grid of the country you happen to be operating in. This is usually the cheapest method, but in some countries, the national grid turns to be unreliable. Or the power available on the national grid in some countries simply turns out to be inadequate for such intensive applications like mineral processing.
The second option for powering a mining plant is where you can work out a method for generating the electrical power you need locally, within or around the plant. To this end, for instance, you can set up a system through which you can generate all the power you need by burning heavy fuel oil.
To get more information about the intricacies of the mining business, you need to consider subscribing for industry newsletters. In most cases, all you need, in order to subscribe, is an email address. Even free webmail accounts – like SBCGlobal accounts, accessible at Sbcglobal.net (that is the Sbcglobal.net email system) can be used to receive the mining industry newsletters. General business publications, such as Wall Street Journal and Forbes can also be helpful to you, as a person trying to understand the dynamics of the mining business.
It is not always easy to win mining concessions in foreign countries. While the said mining concessions can be very lucrative, winning them is not easy. There are (in most cases) at least two things that you need to have, in order to win the mining concessions in foreign countries.
The first thing you need to have, in order to win mining concessions in foreign countries is the right set of political connections. You have to appreciate that the mining business is one which is always very sensitive, from a political point of view (thanks mainly to the widely-held — and mostly wrong — perception that it is very profitable). Against this background, one often needs strong political connections, to get the mining concessions. And establishing the political connections can be tricky, especially if you come from a country where corruption in foreign countries is strongly discouraged, and if you are competing with other industry players from countries where corruption is not minded.
The second thing you need to have, in order to win mining concessions in foreign countries, is the capacity to do the actual mining work. You need to understand that having the right political connections only gets your foot in the door. You need to prove that you have the capacity to actually exploit the minerals (and that you are not just a broker), for you to be given the mining concessions. This is certainly not like IT, where even players with limited capacity can always get assistance remotely through sites like www.logmein123.com – which is a remote support site (as accessed at the Logmein123 login page. With mining, the actual extractive work is done on the ground, and that often calls for massive investments of capital, among other resources. Unless you can get massive loans from major serious banks like Goldman Sachs, you may simply not be able to marshal the required resources to build capacity by yourself.
In order to succeed in the business of selling vacuum cleaners, there are several things you need to do.
Firstly, in order to succeed in the business of selling vacuum cleaners, you need to ensure that you get your marketing right. You need to ensure that the business has the exposure it needs, to thrive. You need to ensure that as many people as possible know that you are selling vacuum cleaners: in order to enhance the probability of at least a few of them actually coming to buy the machines on any given day. You also need to ensure that you actually address people’s specific needs, in your marketing campaigns. You need, for instance, to go beyond telling people that you have the best vacuum cleaners. You need to be more specific in, say, telling people that you have the best vacuum for pet hair (if research reveals that that is specifically what they are looking for).
Secondly, in order to succeed in the business of selling vacuum cleaners, you need to ensure that you manage your business’ finances in the right manner. The idea, as in any other business, is to minimize the costs, and maximize revenues: though you must not be overzealous, as being overzealous could backfire badly. You have to be reasonable, in the measures you put in place while trying to either minimize costs or to maximize revenues.
Thirdly, in order to succeed in the business of selling vacuum cleaners, you need to ensure that you manage the workers you engage in the business in the right manner. Do you understand why big corporations, such as Apple, Walmart and Coca Cola are successful? Part of the reason lies in effective human resource management. Ask any business professors at a top school such as the Wharton School of Business, and they will tell you as much.
Running a company within the mining industry is not easy. The mining industry is a very dynamic one. It is an industry where you can easily burn your fingers, if you are not careful. It is, for instance, an industry where your revenues can easily end up being much lower than your monetary inputs: leading to major losses. You just have to go through the stories touching on mining companies in, say, the business section of the New York Times to understand how difficult the mining business can be. Still, there are some things you can do, to increase the odds of success within the mining industry: that is, keys to success in running a company within the mining industry.
The first key to success in running a company within the mining industry (just as in any other industry) is to ensure that you hire the right caliber of people, especially for the technical roles.
The second key to success in running a company within the mining industry is to ensure that you invest in the right type of equipment: ideally, highly efficient equipment.
The third key to success in running a company within the mining industry is to ensure that you put in place good security policies: to ensure that you don’t end up losing whatever you harvest from the mines to theft. This is particularly important if the type of mining you are involved in is that which entails the mining of the so-called precious stones. The security system should be highly effective without being too intrusive at the same time.