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RNZ News
6 days ago
- Politics
- RNZ News
Tiny Nauru is causing big waves over mining
An image from the National Oceanography Centre shows a carnivorous sponge, photographed during an expedition to the NE Pacific abyss and found in the Clarion-Clipperton Zone (CCZ). A recent executive order by US President Donald Trump could open the door to Nauru deep sea mining in the CCZ. Photo: National Oceanography Centre/ AFP One of the smallest islands in the South Pacific is causing some big waves right now. Nauru, just 21 square kilometres and with a population of 12,000, has opened the door to a deep sea mining company to explore and potentially harvest the sea bottom for minerals and resources. It can do that under International Seabed Authority (ISA) rules because it's one of 19 "sponsoring states" that's been allocated an area of the Pacific in the Clarion-Clipperton Zone, that it can potentially benefit from. Nauru signed a partnership with The Metals Company in 2011 to research what minerals and resources were on the seabed. Now, that company is becoming impatient with the slow progress on the ISA in drawing up rules for deep sea mining in international waters, and has found a way around them. Most of the world - that's 169 countries plus the European Union - are members of the ISA, but the USA has never signed up, retaining its right to mine the seabed. Until recently however, it hasn't authorised anyone to do that, and it's been assumed that because it has played by the rules, it agrees to them. But this year President Donald Trump signed an executive order to fast track deep sea mining off the US coast, and The Metals Company saw another pathway to begin mining. Nauru meanwhile is bound by the agreement it signed up to. That includes, under its sponsoring state responsibilities, exercising effective control over any activities in its patch of the CCZ. That means things like checking the contractor is sticking to the terms of the contract, and that all the paperwork is in order. It also must "apply a precautionary approach" and promote best environmental practice, respond to incidents and inquire into them, keep records, liaise with the ISA, and monitor and inspect activities. Environmental law experts say not only does this sort of "rogue mine" operation pose enormous risks to the largely unexplored seabed, but it would also see Nauru breaking its obligations to the rules it signed up to. Professor Karen Scott is a Canterbury University expert who's been working in the area of international law of the sea for 25 years. She specifically researches ocean environmental issues, and is the editor of the journal Ocean Development and International Law. "I would suggest that Nauru is very much being driven by the interests of The Metals Company, which obviously is a commercial organisation," she says. "And whilst clearly there are good reasons for supporting Nauru's economic development and the welfare of Nauru people, I think there's an equally good argument that that should not come at the cost of potentially significant environmental harm, which may well affect all states." Nauru stands to make millions from the venture, and it will also provide jobs for its people. Nauru's president has argued at the UN that the benefits of taking minerals to use them for batteries to increase electrification outweigh any environmental damage that might be caused. The chief executive of The Metals Company, Gerard Barron, is on record saying it's a less harmful way of getting the minerals we need than land-based mining in places such as Indonesia, where vast jungles are being ripped up to get minerals such as nickel. But one of the reasons that work to create an international rulebook over such mining has taken over a decade of debate and is still nowhere near completion is that we still don't know exactly what's in these ocean depths, and how they contribute to the ecosystem. On today's episode of The Detail , Karen Scott goes through the complexities of who rules the sea; and we also hear from RNZ Pacific journalist Teuila Fuatai, who's been across the subject. She points out that one of the big issues here is that there just isn't a lot of research on an area that is three to four kilometres deep in the ocean. "It's pitch black ... we don't know what the sea life is down there, and it's being researched by mining companies or deep sea exploration companies because they're interested in these deep sea minerals or polymetallic nodules. "They've got to put forward a case as to whether mining is financially viable and what the environmental impacts of that could be." Fuatai says The Metals Company, funded by shareholders, is frustrated by the amount of time it's taking the ISA to formulate regulations on deep sea mining, including how much can be taken. The process started in 2014 and hasn't got far. ISA members are meeting in Jamaica right now trying to get a draft agreement. In the meantime, New Zealand is one of 37 nations calling for a moratorium on deep sea mining in international waters until those rules are sorted out. Check out how to listen to and follow The Detail here . You can also stay up-to-date by liking us on Facebook or following us on Twitter .
RNZ News
17-07-2025
- Business
- RNZ News
Nauru could earn millions after backing US deep sea mining pathway
The Metals Company Photo: Facebook / The Metals Company Nauru is a step closer to mining in international waters under highly contentious United States legislation. The path has been set out in the nation's new agreement with Canadian mining group The Metals Company (TMC) and sits outside international law. News of it comes as delegates from around the world have gathered in Jamaica at the International Seabed Authority (ISA) - the world's deep sea mining authority. Nauru is among the body's 170 members and has special rights to a deep sea mining area of the Pacific Ocean in international waters under international oceans law. This area is known as the Clarion Clipperton Zone (CCZ). The ISA's jurisdiction of the CCZ has effectively been challenged by the US, which has claimed its own authority over deep sea mining in international waters through its high seas mining legislation. Nauru has had ambitions to mine in the CCZ for more than a decade. Since 2011, it has partnered with TMC to explore its block of the area for deep sea mining potential. However, after more than a decade of research, TMC has become frustrated by its inability to gain a commercial mining licence through the ISA because the body has not finished developing a mining code. The process began in 2014 and is ongoing. Now, it has backed the US claim as a deep sea mining authority, and international environmental lawyer Duncan Currie of the Deep Sea Conservation Coalition said it was pulling Nauru with it. The company, he said, had effectively incentivised Nauru to mine under the US pathway and break international law through the terms of its new contract. These included provisions for millions of dollars in payments to Nauru as well as an option to buy shares in TMC once deep sea mining occurred through US legislation. "[The contract specifically] states [Nauru] will be paid set amounts once the company does engage in seabed mining under the US regime. And it's a significant amount of money. It can be initial payments of US$265 million and can go up to US$515m. "And then on top of that, there are what's called share warrants, which is the ability for Nauru to buy into The Metals Company at a favourable price," Currie said. Meanwhile, potential payment amounts available through the ISA pathway, should mining occur, have been removed from the public version of the new contract. Currie believes it would be a fraction of what had been offered through the US pathway. At the ISA meeting in Jamaica, delegates have raised concerns over the conduct of TMC and the US. While Nauru's new contract had not come up in official sessions, Currie said it was being heavily discussed on the "sidelines" and "in corridors". "France, in particular, referred to what they called the elephant in the room. Then they changed it to a blue whale in the room. "[The contract] basically incentivises countries to breach international law frankly, and it could lead to other countries saying: 'Well, this looks good. We'll do the same thing.' So that's really why it's giving delegates concern. And of course, this kind of rogue mining - which it really would be - poses enormous risks to the deep seabed." The ISA said it would not comment on the contract, and the US agency in charge of deep sea mining - the National Oceanic and Atmospheric Administration (NOAA) - referred RNZ Pacific's request to TMC and Nauru. Neither responded. Thirty-seven countries support a moratorium on deep sea mining in international waters. The practice has divided the Pacific. Supporters include Nauru, Tonga and the Cook Islands, while Fiji, Vanuatu and New Zealand were against it. Indigenous rights advocate Solomon Kaho'ohalahala was at the ISA meeting for Hawaiian NGO Maui Nui Makai network. He wanted Nauru and mining supporters to consider the whole region. "I want to remind these nation states that we all belong to the same ocean, and that any of their activities that may be detrimental to that ocean is going to have an impact on all of us," he said. Ultimately, Duncan Currie said, Nauru had been backed into a corner in this contract. No amount of money or compensation would fix that, he said, particularly as the country stood to lose a lot. "Nauru, by entering into this agreement, has placed itself well outside international law. "Quite honestly, it is The Metals Company wanting a quick return, and Nauru is left there really getting what they can," Currie said. The new contract between Nauru and TMC is dated 29 May. According to online records of the US Securities and Exchange Commission, it was filed with the agency on 4 June.
Yahoo
12-07-2025
- Business
- Yahoo
TMC (TMC) Rallies 9.25% as Investors Cheer Copper Import Tariff
TMC the metals company Inc. (NASDAQ:TMC) is one of the . TMC saw its share prices increase by 9.25 percent on Thursday to close at $6.85 apiece as investor sentiment was supported by President Donald Trump's imposition of 50 percent tariffs on copper imports. According to Trump, the move was aimed at bolstering US copper production of a metal critical to electric vehicles, military hardware, the power grid, and various consumer goods. TMC the metals company Inc. (NASDAQ:TMC), which has operations in the US through its subsidiary The Metals Company USA LLC, is set to benefit from the imposition of levies as it would result in reduced competition and strengthen its pricing power for the said metal. In recent news, TMC the metals company Inc. (NASDAQ:TMC) earned an 'outperform' rating from Wedbush with an $11 price target, a significant upgrade from its 'neutral' stance and $6 price target previously. A tunneling machine underground, deep in the mine to extract the polymetallic nodules. According to Wedbush, the upgrade was based on a stronger US government from President Donald Trump's executive order in April, 'Unleashing America's Offshore Critical Minerals and Resources,' which could allow TMC the metals company Inc. (NASDAQ:TMC) to bypass the UN-affiliated International Seabed Authority and ramp up production in the Clarion Clipperton Zone. While we acknowledge the potential of TMC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-07-2025
- Business
- Yahoo
TMC (TMC) Rallies 9.25% as Investors Cheer Copper Import Tariff
TMC the metals company Inc. (NASDAQ:TMC) is one of the . TMC saw its share prices increase by 9.25 percent on Thursday to close at $6.85 apiece as investor sentiment was supported by President Donald Trump's imposition of 50 percent tariffs on copper imports. According to Trump, the move was aimed at bolstering US copper production of a metal critical to electric vehicles, military hardware, the power grid, and various consumer goods. TMC the metals company Inc. (NASDAQ:TMC), which has operations in the US through its subsidiary The Metals Company USA LLC, is set to benefit from the imposition of levies as it would result in reduced competition and strengthen its pricing power for the said metal. In recent news, TMC the metals company Inc. (NASDAQ:TMC) earned an 'outperform' rating from Wedbush with an $11 price target, a significant upgrade from its 'neutral' stance and $6 price target previously. A tunneling machine underground, deep in the mine to extract the polymetallic nodules. According to Wedbush, the upgrade was based on a stronger US government from President Donald Trump's executive order in April, 'Unleashing America's Offshore Critical Minerals and Resources,' which could allow TMC the metals company Inc. (NASDAQ:TMC) to bypass the UN-affiliated International Seabed Authority and ramp up production in the Clarion Clipperton Zone. While we acknowledge the potential of TMC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-07-2025
- Business
- Yahoo
TMC (TMC) Falls on Uncertainties from Deep-Sea Mining Talks
TMC the metals company Inc. (NASDAQ:TMC) is one of the . TMC dropped its share prices for a third straight day, losing 4.42 percent to close at $6.27 apiece as investors continued to unload positions amid uncertainties in the resumption of deep-sea mining talks. This is after the International Seabed Authority (ISA) announced the revival of negotiations on the controversies surrounding deep-sea mining, following President Donald Trump's order last April to fast-track permits for deep-sea mining even beyond US waters, taking advantage of its non-membership in the organization. Sentiment was further dampened by TMC, the metals company Inc.'s (NASDAQ:TMC) bypassing of the ISA after its immediate submission of its first offshore license application, despite being a Canadian company and with Canada being a member of the organization. In recent news, TMC the metals company Inc. (NASDAQ:TMC) earned an 'outperform' rating from Wedbush and an $11 price target, a significant upgrade from its 'neutral' stance and $6 price target previously. A tunneling machine underground, deep in the mine to extract the polymetallic nodules. According to Wedbush, the upgrade was based on a stronger US government from President Donald Trump's executive order in April, 'Unleashing America's Offshore Critical Minerals and Resources,' which could allow TMC the metals company Inc. (NASDAQ:TMC) to bypass the UN-affiliated International Seabed Authority and ramp up production in the Clarion Clipperton Zone. While we acknowledge the potential of TMC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
