Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Plans to begin mining the seafloor for metals that could be used in the energy transition have been pushed back to at least next year after a meeting of the UN-backed regulator in Jamaica ended without agreement on how the industry would be regulated.
The Council of the International Seabed Authority (ISA) ruled out any immediate permission for mining to begin, as expected, after a meeting in Kingston that ended on Friday, but kept open a legal loophole that could allow it to begin next year.
Critics say not enough research has been done into the industry and its impact on wildlife, and that the cost of remediation could far eclipse any advantage reaped by obtaining the metals.
But proponents, including Canada’s The Metals Company, say mining the seafloor will support the energy transition in a less environmentally damaging way than land-based mining.
Jessica Battle, ocean expert at the Worldwide Fund for Nature, said there was “no green light” for deep seabed mining to go ahead.
“What seems crystal clear is that the majority of states feel very uneasy about a license being granted before the regulations are in place, enough scientific research is done and the effective protection of the marine environment can be ensured,” Battle said.
At the heart of the debate is a loophole known as the “two-year rule”, which says the ISA Council must “consider and provisionally approve” applications two years after they are submitted, whether it has finalized regulations or not.
Nauru, TMC’s sponsoring state, triggered the “two-year rule” legal mechanism in July 2021, but though the deadline has passed, the ISA said on Monday that no application to begin mining had been received to date.
The ISA Council said in a statement that if an application for a “plan of work” was received before it had completed mining regulations, it would make a decision on how the two-year rule should be applied “as a matter of priority” at its next meeting.
TMC Chairman and CEO Gerard Barron said in a statement the company was “disappointed” that the ISA had failed to complete regulations on time but he was confident mining would begin soon.
“It is now a question of when — rather than if — commercial-scale nodule collection will begin,” he said.
“I believe the finish line is now within sight and we look forward to the consolidated regulatory text at the next meeting in November 2023.”
The ISA Assembly is meeting this week, with opponents of deep-sea mining expected to hold a vote among the authority’s 168 members aimed at imposing a moratorium.
(By Melanie Burton and David Stanway; Editing by Robert Birsel)
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