This article investigates the use of a bespoke fund, the Space Resources Fund (SRF), to facilitate monetary benefit sharing from commercial space resource utilisation (SRU) and at the same time provide a source of funding for a developing space resource industry. The study investigates the possible objectives such a fund could have and compares these to range of terrestrial fund types that could have similar objectives. We find that there is no one fund type that could meet the possible objectives for a SRF, however, by combining several fund types, it is possible to construct a dedicated fund that meets the objectives initially developed. The study proposes a fund with the Double Bottom Line of both generating monetary benefits from commercial SRU and providing investment capital to an industry targeting SRU. The study also proposes a possible strategy, structure, funding mechanism and benefit distribution mechanism for the SRF and undertakes high level financial modelling to illustrate the wealth creation potential of such a fund. Further, we discuss the advantages and disadvantages of the approach proposed in this study compared to the use of a royalty mechanism for monetary benefit sharing, should monetary benefit sharing ultimately be proposed, by the UN Committee On the Peaceful Uses of Outer Space (COPUOS) for example. This work builds on previous work that reviews the ongoing debate concerning benefit sharing from commercial SRU and explores the use of royalties for such monetary benefit sharing in the context of commercial lunar ice mining. We conclude that a SRF as proposed here could help resolve the long standing dilemma of how to facilitate monetary benefit sharing from commercial SRU without impacting the development of such an industry.

This paper explores the impacts of a potential royalty mechanism by considering the effects of different royalty and tax rates on the economics of a hypothetical commercial lunar ice mining project. The study also examines the conceivable benefits that could be generated from a royalty regime from a global perspective and considers the possible impacts of royalties on operational decision making in a com-mercial lunar ice mining context. There has been substantial debate since the signing of the Outer Space Treaty in 1967 regarding how to ensure the international community benefits from the commercial exploitation of space resources, should these activities eventuate. This includes the recent initiative by the Legal Subcommittee of the UN Committee on the Peaceful Uses of Outer Space to establish a Working Group to explore potential models for a legal framework to govern space resource activities. No formal proposal to include a royalty mechanism has yet been made; however, it is apparent that part of the mandate of the Committee on the Peaceful Uses of Outer Space Legal Subcommittee could be to explore the issue of benefit sharing, and it is possible that a royalty mechanism or something similar could ul-timately be proposed. After considering the impact of royalties on a hypothetical lunar ice mining project, this paper finds that royalties, in particular ad valorem royalties, could have a meaningful impact on the economics and operational parameters of a commercial lunar ice mining project, in turn potentially impacting the ability to raise the funding required to develop such projects. The study also finds that under plausible scenarios, the benefits generated on a per capita basis would be negligible, even assuming significant industry growth rates over 50 years. The study, therefore, concludes that the rationale for imposing a royalty mechanism on space resource activities for the purposes of benefit sharing through direct monetary distribution to recipients would need to be carefully examined should such a royalty mechanism ever be proposed.& COPY; 2022 Elsevier Ltd. All rights reserved.