The Metals Company to Apply for Deep-Sea Exploration License Under U.S. Legislation

In a significant move for the deep-sea mining industry, The Metals Company (TMC) has announced plans to apply for exploration licenses and commercial recovery permits under the United States’ Deep Seabed Hard Mineral Resources Act (DSHMRA) of 1980. This decision marks a pivotal shift in the company’s strategy to harness critical minerals from the ocean floor.

Background on DSHMRA

Enacted in 1980, DSHMRA was established to enable exploration and commercial recovery of deep-sea minerals in international waters. The act grants the National Oceanic and Atmospheric Administration (NOAA) the authority to regulate these activities, ensuring environmental protection and responsible resource management. NOAA’s comprehensive regulatory framework includes provisions for environmental impact assessments and stakeholder consultations.

TMC’s Strategic Shift

TMC’s decision to pursue permits under DSHMRA comes after years of collaboration with the International Seabed Authority (ISA). Despite extensive efforts and significant investment exceeding half a billion dollars, the ISA has yet to adopt regulations for mineral exploitation in international waters, delaying TMC’s progress. Gerard Barron, TMC’s Chairman and CEO, emphasized the need for a robust regulatory regime, stating that the U.S. offers a stable and enforceable path forward.

Environmental Considerations

The environmental impact of deep-sea mining remains a topic of concern. Studies have shown that mining activities conducted over four decades ago in the Clarion-Clipperton Zone have left enduring marks on the seabed, with significant declines in megafauna populations and biodiversity. These findings underscore the importance of rigorous environmental assessments and the implementation of measures to mitigate potential ecological damage.

Regulatory Landscape and Industry Implications

TMC’s initiative highlights the complex regulatory environment surrounding deep-sea mining. While the U.S. has established a legal framework through DSHMRA, international consensus on seabed mining regulations remains elusive. The ISA’s prolonged deliberations have prompted companies like TMC to seek alternative avenues to advance their objectives. This development may influence other industry players to explore similar strategies, potentially reshaping the future of deep-sea mineral extraction.