It does explain why the original New Birmingham mine on Frigga crashed and burned so hard....
They open up pre-war, when the mining boom is just starting to crank up (Like a .comin 1998), an grow big quick because of a lot of investors hopping on, producing massive quantities of high-value precious metals.
The problem is, with so many other sites producing massive quantities og high-value precious metals and global demand so low, the price plummets as demand has not yet caught up with supply. The ones who struck it rich early on in the boom jump ship finding other ways to keep their operations going and diversify into further industries, while a lot of the independants and latecomers crash as they have tons of now near-worthless 'precious' metals that no-one has a demand for, and banks calling in loans that'll now never be repaid because the business model was based on 100,000 dollars a ton, not 100 dollars.
But.... as demand kicks up to match supply and people start to find new and novel uses for cheap 'precious' metals, mines which failed and fell into the hands of madboys/private equity groups/assorted fen suddenly start to become commercially viable again, especially if the accommodation has been 'in-steam' and lived in rather than allowed to decay.
Or something like that. I mean.... I don't know economics. That's just a result of me trying to comprehend he article.
________________________________
--m(^0^)m-- Wot, no sig?
They open up pre-war, when the mining boom is just starting to crank up (Like a .comin 1998), an grow big quick because of a lot of investors hopping on, producing massive quantities of high-value precious metals.
The problem is, with so many other sites producing massive quantities og high-value precious metals and global demand so low, the price plummets as demand has not yet caught up with supply. The ones who struck it rich early on in the boom jump ship finding other ways to keep their operations going and diversify into further industries, while a lot of the independants and latecomers crash as they have tons of now near-worthless 'precious' metals that no-one has a demand for, and banks calling in loans that'll now never be repaid because the business model was based on 100,000 dollars a ton, not 100 dollars.
But.... as demand kicks up to match supply and people start to find new and novel uses for cheap 'precious' metals, mines which failed and fell into the hands of madboys/private equity groups/assorted fen suddenly start to become commercially viable again, especially if the accommodation has been 'in-steam' and lived in rather than allowed to decay.
Or something like that. I mean.... I don't know economics. That's just a result of me trying to comprehend he article.
________________________________
--m(^0^)m-- Wot, no sig?