Comment by 6ren | Hacker News Reader

Comment by 6ren | Hacker News Reader

Parent Full thread

Firstly, the article is misleading in mentioning iron, when platinum group metals are their stated focus. Platinum at $1550/oz is priced much closer to gold ($1650/oz) than to iron ($30/ ton), that's 50x the figure... 32,000x oz per ton... a combined factor of a million (1,600,000x). Note: I'm comparing refined to ore. In addition some rare earth metals are considerably more valuable - but it's not just price, but also strategic value, as China currently is the only source for some rare earths. [Prices http://www.kitco.com/market/]

Secondly, the article is misleading in speculating on Amun. Planetary Resources is first sending telescopes (in a year or two). That's how very far they are from choosing their target. An extremely low value-per-weight metal, in an expensive orbit, is not representative of their plans.

Also, a proposal to cushion supply decreasing prices is to sell futures in the metals http://www.forbes.com/sites/timworstall/2012/04/25/how-plane...

> but also strategic value, as China currently is the only source for some rare earths

China effectively subsidizes mining for strategic purposes. Cheaper mining = cheaper manufacturing = strong industrial base = higher employment and lots of foreign IP to acquire.

This blew up in their face for rare earths, because they are valuable enough that shipping isn't a big deal, so cheaper rare earths in China just means cheaper rare earths in Japan.

If they didn't subsidize mining, or they keep restricting exports, people will look elsewhere. I'm not sure if China has particularly good reserves, I think they just dig it up cheaper, because they want to feed their industrial base.

less environmental controls, that's the biggest reason it's cheaper.

I said "effectively subsidizes". Environmental controls is one factor. Cheap land / water use is another. OH&S standards, favorable tax, there's a lot of ways it can be done if the government decides it's strategically important.

That attitude will start changing now that they have plenty of IP, and they no longer suck at engineering low cost stuff.

but also strategic value, as China currently is the only source for some rare earths.

80% of the platinum comes from South Africa.

platinum is not a rare earth http://en.wikipedia.org/wiki/Rare_earth_element

Reply on news.ycombinator.com