Seabed mining regulator meets amid mounting pressure for code

Despite the absence of formal rules, deep sea mining could technically start this year, as Canada’s The Metals Company (NASDAQ: TMC), one of the companies with the most advanced plans to extract key metals from nodules covering the seafloor, is expected to submit a mining license application before the end of 2024.

One of the TMC’s ISA contracts is sponsored by the tiny Pacific island nation of Nauru, which in 2021 triggered a provision requiring the ISA to enact mining regulations by 2023. The ISA missed that deadline, and so must start accepting license applications.

Leadership battle

How the ISA will respond to applicants is a key question for the coming weeks. Under existing rules, a mining application must be approved by the group’s Legal and Technical Commission (LTC), which then issues recommendations to the body’s ruling council. For a licence to be granted, it would need the support of one-third of the council’s 36 members.

The issuing of mining licenses will also depend on who is elected as the new secretary-general, particularly if regulations are enacted. The individual in this position holds the power to oversee the administrative functions of the ISA and is responsible for negotiating contracts with mining companies. 

The new leader’s commitment to environmental sustainability will impact how strictly environmental assessments and safeguards are enforced, potentially influencing the approval or denial of seabed mining licenses based on habitat impact considerations.

Analysts predict that the election of Carvalho, the head of the marine and freshwater division at the UN Environment Programme in Nairobi, could signal a significant shift from the current leadership of Michael Lodge. Lodge, whose second four-year term concludes in December, has faced criticism for his dismissive stance on environmental opposition to deep-sea mining and his close ties with mining contractors regulated by the ISA.

Trillions of dollars

Ocean floor mining supporters estimate the activity could provide up to 45% of all the world’s critical metal needs by 2065. They also believe that the UN High Seas Treaty agreed in March last year by member countries won’t jeopardize exploration efforts. 

The accord aims to place up to 30% of the world’s oceans that lie outside national boundaries under protection by 2030.

A study commissioned by The Metals Co says that mining metals such as cobalt and nickel from the seafloor dramatically lowers the environmental impact of producing battery metals the traditional way.

Minerals and metals such as cobalt, nickel, copper and manganese can be found in potato-sized nodules on the ocean floor. Reserves are estimated to be worth anywhere from $8 trillion to more than $16 trillion and they are in areas targeted by potential seabed miners companies, such as TMC.

While some countries fiercely oppose the activity until scientists can clearly estimate the potential damage to aquatic ecosystems, others are ready to kick off mining the seabed.

Norway’s parliament greenlit in January seabed mining exploration in the country’s territorial waters. Only five months later, the nation opened up vast areas of its Arctic region for a first seabed mineral licensing round.

Nine countries, including France and Chile, are set to urge the Assembly this week to discuss specific policies for safeguarding the marine environment in anticipation of potential mining activities.

Last year, a similar proposal was blocked by China. This year, China has taken a key step in the global race to explore the ocean floor for minerals after one of its deep-sea mining vehicles reportedly broke multiple national records during a recent trial operation.