Feedback: Increase general price of natural resources

[mwyeoh]

Hi David

It is very hard to make any sort of money with mining natural resources. If we have a look at the AI, they are usually quite content with operating a mine at a loss.
I think the prices need to increase by atleast 50% if not double (And still have the same overall rating)

[Keither]

I think it's more challenging. Natural resources/mines allow you to produce semi products. You make money on semi products not natural resources. I also think that if it wasn't for the increase in prices of mines, it would be too easy to monopolize the raw materials and semi products industries.

[mwyeoh]

I think it's more challenging. Natural resources/mines allow you to produce semi products. You make money on semi products not natural resources. I also think that if it wasn't for the increase in prices of mines, it would be too easy to monopolize the raw materials and semi products industries.

Hi Keither

I dont mean increase the price of building mines, I mean increase the price for selling the resources. At the moment, most AI follow the ratings for the resources and often make a loss whilst selling

[David]

Hi mwyeoh,

Could you provide a save game with the AI losing money on the mines which you think they should increase raw material prices?

[mwyeoh]

Hi David

Although a number of the AI mines are losing money because they are not selling much, they should still be able to make a profit when at a third or half capacity or so.
Having a mine which barely breaks even only once they are at max capacity is not that realistic as mining companies are some of the most profitable companies in the world, een when they only sell a small amount.
The AI tries to offer the minerals at too low of a margin, making only a pittance when they sell their goods. Just a minor increase in price would double profit.

Heres a save game
https://dl.dropbox.com/u/23145017/CHAL_010.zip

Here are some mines to look out for
IQ company's Chemical Minerals mine in Harbin. 6 years old. At roughly 40% capacity, lost 1.8 million last year (Not a good investment for something that cost around 150million)
Happy Resource's Aluminium mine in St Louis. 5 years old. Lost 5.7 million last year, and -25 million in its lifetime. Makes 6c/lb (Also bad)
United Array's silica mine. 18 years old. Lost 56 million in its lifetime and -3.4 million last year. Making 2c for each lb silica they sell (Very poor for an 18 yr mine)

[Boruta]

I agree with the original poster.

The natural resources should have higher base base.

[kie99]

Hi Mwyeoh,

Mining can only be profitable if are not manage by AI.. There is chain of effect forcing AI selling the price below the cost..

For example,

Company A build chemical mine and Company B buidl anothe chemical mine, both of the will keep fight and drop the price till one of them gone.. this will be differnt if manage by us.. we are building mine for our own usage as sometimes cuz AI supply is tight or internal sales apply.. leave us with no choice..

By setting lower price by AI , the main benificery is the factory buying the chemical for production.. margin is higher whereas the mining industries is at loss.

I think David will need to do some improvement again..

[mwyeoh]

Hi Mwyeoh,

Mining can only be profitable if are not manage by AI.. There is chain of effect forcing AI selling the price below the cost..

For example,

Company A build chemical mine and Company B buidl anothe chemical mine, both of the will keep fight and drop the price till one of them gone.. this will be differnt if manage by us.. we are building mine for our own usage as sometimes cuz AI supply is tight or internal sales apply.. leave us with no choice..

By setting lower price by AI , the main benificery is the factory buying the chemical for production.. margin is higher whereas the mining industries is at loss.

I think David will need to do some improvement again..

Hi Kie99

Yes, this is the main point I am discussing. I can easily make a profit from a mine by leaving the overall rating at around 40, however the AI, as you mentioned, always pushes the prices down until its at 100-120 overall rating, so they are not maing any money

I havent had a good look since the new patch though, since many AI can now get the required materials though seaports

[David]

Hi Mwyeoh,

Mining can only be profitable if are not manage by AI.. There is chain of effect forcing AI selling the price below the cost..

For example,

Company A build chemical mine and Company B buidl anothe chemical mine, both of the will keep fight and drop the price till one of them gone.. this will be differnt if manage by us.. we are building mine for our own usage as sometimes cuz AI supply is tight or internal sales apply.. leave us with no choice..

By setting lower price by AI , the main benificery is the factory buying the chemical for production.. margin is higher whereas the mining industries is at loss.

I think David will need to do some improvement again..

Hi Kie99

Yes, this is the main point I am discussing. I can easily make a profit from a mine by leaving the overall rating at around 40, however the AI, as you mentioned, always pushes the prices down until its at 100-120 overall rating, so they are not maing any money

I havent had a good look since the new patch though, since many AI can now get the required materials though seaports

Hi Mwyeoh,

Would you provide me with the current save game of your Challenge Game 008? Would like to look at it.

[mwyeoh]

I will post it in a moment in the 1.970 patch thread