Latest news with #deepSeaMining
RNZ News
2 days ago
- Business
- RNZ News
Nauru, Metals Company revise deep sea mining agreement
Nauru President David Adeang at the 53rd Pacific Islands Forum Leaders' Meeting in Nuku'alofa, Tonga. 25 August 2024 Photo: RNZ Pacific / Lydia Lewis Nauru has revised its commercial agreement with Canadian mining group The Metals Company for deep sea mining in international waters. The updated "sponsorship agreement" was announced in a press release from The Metals Company. It comes at a time of increasing uncertainty in the deep sea mining industry with both the US and International Seabed Authority (ISA) respectively stating each offers a licencing pathway to mine the seabed in international waters. Nauru president David Adeang said in the press release that The Metals Company has been a "trusted and respectful" partner to Nauru. "We have worked to establish a responsible pathway for deep sea mineral development, one that can serve for a model for other developing states." The area of international waters currently under the spotlight is the Clarion Clipperton Zone - a vast area of the Pacific Ocean that sits between Hawai'i, Kiribati and Mexico, and spans 4.5 million square kilometres. The zone is of high commercial interest because it has an abundance of polymetallic nodules that contain valuable metals like cobalt, nickel, manganese and copper, which are used to make products such as smartphones and electric batteries. The minerals are also used in weapons manufacturing. Nauru has special rights in the Clarion Clipperton Zone through the ISA, which under the UN Convention on the Law of the Sea (UNCLOS) has jurisdiction over it. Since 2011, Nauru has partnered with The Metals Company to explore its area of the zone for minerals through that framework. At the same time, the ISA - which counts all Pacific nations among its 169-strong membership - has been developing a commercial mining code. The process, which began in 2014 and is ongoing, has been criticised by The Metals Company as effectively blocking it and Nauru's commercial mining interests. The company has also praised the US deepsea mining licencing pathway , which was effectively reactivated through an executive order President Donald Trump issued in April. That legislation, the Deep Sea Hard Mineral Resources Act, states the US can grant mining permits in international waters. At face value, it offers an alternative licencing route to commercial seabed activity in the high seas to the ISA. However, any cross-over between jurisdictions and authorities remains untested. The Metals Company Photo: Facebook / The Metals Company In the press release from The Metals Company, its chief executive Gerard Barron made direct reference to Trump's order, titled 'Unleashing America's Offshore Critical Minerals and Resources'. He said he was heartened by its call "for a joint assessment of a seabed benefit-sharing mechanism" and was certain that "big ocean states" like Nauru would continue to play a leading role in the deep sea mining industry. The company confirmed two weeks ago it would not be applying for a commercial mining license through the ISA in June. Instead, it has said it would apply exclusively apply through US regulations. No mention of that decision was made in the press release. "We remain unshakeable in our commitment to developing this project responsibly, transparently, and in a way that delivers real benefits to Nauruans," Barron said. ISA secretary general Leticia Carvalho has previously said the US had no authority to offer permits in the Clarion-Clipperton Zone. "Circumventing the regulatory authority of the ISA not only breaches international law, but also erodes trust," Carvalho said. In addition to Nauru, Tonga, Kiribati and the Cook Islands have special rights in the Clarion Clipperton Zone through the ISA.
RNZ News
2 days ago
- Business
- RNZ News
Nauru, Metals Company announce revised deep sea mining agreement
Nauru President David Adeang at the 53rd Pacific Islands Forum Leaders' Meeting in Nuku'alofa, Tonga. 25 August 2024 Photo: RNZ Pacific / Lydia Lewis Nauru has announced an update to its commercial agreement with Canadian mining group The Metals Company for deep sea mining in international waters. The updated "sponsorship agreement" was announced in a press release from The Metals Company. It comes at a time of increasing uncertainty in the deep sea mining industry with both the US and International Seabed Authority (ISA) respectively stating each offers a licencing pathway to mine the seabed in international waters. Nauru president David Adeang said in the press release that The Metals Company has been a "trusted and respectful" partner to Nauru. "We have worked to establish a responsible pathway for deep sea mineral development, one that can serve for a model for other developing states." The area of international waters currently under the spotlight is the Clarion Clipperton Zone - a vast area of the Pacific Ocean that sits between Hawai'i, Kiribati and Mexico, and spans 4.5 million square kilometres. The zone is of high commercial interest because it has an abundance of polymetallic nodules that contain valuable metals like cobalt, nickel, manganese and copper, which are used to make products such as smartphones and electric batteries. The minerals are also used in weapons manufacturing. Nauru has special rights in the Clarion Clipperton Zone through the ISA, which under the UN Convention on the Law of the Sea (UNCLOS) has jurisdiction over it. Since 2011, Nauru has partnered with The Metals Company to explore its area of the zone for minerals through that framework. At the same time, the ISA - which counts all Pacific nations among its 169-strong membership - has been developing a commercial mining code. The process, which began in 2014 and is ongoing, has been criticised by The Metals Company as effectively blocking it and Nauru's commercial mining interests. The company has also praised the US deepsea mining licencing pathway , which was effectively reactivated through an executive order President Donald Trump issued in April. That legislation, the Deep Sea Hard Mineral Resources Act, states the US can grant mining permits in international waters. At face value, it offers an alternative licencing route to commercial seabed activity in the high seas to the ISA. However, any cross-over between jurisdictions and authorities remains untested. The Metals Company Photo: Facebook / The Metals Company In the press release from The Metals Company, its chief executive Gerard Barron made direct reference to Trump's order, titled 'Unleashing America's Offshore Critical Minerals and Resources'. He said he was heartened by its call "for a joint assessment of a seabed benefit-sharing mechanism" and was certain that "big ocean states" like Nauru would continue to play a leading role in the deep sea mining industry. The company confirmed two weeks ago it would not be applying for a commercial mining license through the ISA in June. Instead, it has said it would apply exclusively apply through US regulations. No mention of that decision was made in the press release. "We remain unshakeable in our commitment to developing this project responsibly, transparently, and in a way that delivers real benefits to Nauruans," Barron said. ISA secretary general Leticia Carvalho has previously said the US had no authority to offer permits in the Clarion-Clipperton Zone. "Circumventing the regulatory authority of the ISA not only breaches international law, but also erodes trust," Carvalho said. In addition to Nauru, Tonga, Kiribati and the Cook Islands have special rights in the Clarion Clipperton Zone through the ISA.
RNZ News
22-05-2025
- Business
- RNZ News
Deep sea mining frontrunner set to sidestep UN oversight , pivots to US route
The Metals Company Photo: Facebook / The Metals Company Deep sea mining frontrunner The Metals Company (TMC) has confirmed it will not apply for a mining license through the International Seabed Authority (ISA) in June, instead it will exclusively apply through US regulations . It is unclear what this means for both Nauru and Tonga, who have sponsored TMC at the ISA. However, the firm's chief executive Gerard Barron said the company would still renew its subsidiary Nauru Ocean Resources' (NORI) exploration licence. "We will be renewing that because NORI is in full compliance. There is no legal basis on which that licence cannot be renewed," he said during the company's first quarter update of 2025. TMC's mining application through US regulations was made possible through an executive order last month by President Donald Trump. The company's application covers 25,000 square kilometres in the Clarion Clipperton Zone - located in the international waters in north Pacific between Hawai'i and Mexico. Barron said the block was "not claimed by any other sovereign". "While there is an ability to lay claim over grounds currently under license through the ISA by other countries we made a deliberate plan not to do that." Barron added that Tonga and Nauru are supportive of TMC's moves. However, China's Ambassador to Nauru Lu Jin said that the US trampled on the United Nations Convention on the Law of the Sea (UNCLOS) by creating a mechanism to allow for deep sea mining outside of the ISA. During a meeting with Nauru's President David Adeang , Lu said China and Nauru should work together to safeguard Nauru's interests in deep sea mining, adding China would push the ISA to accelerate mining progress. Greenpeace activists protesting around MV Coco, a specialised vessel collecting data for The Metals Company in November 2023. Photo: Supplied / Greenpeace / Martin Katz Deep Sea Conservation Coalition's Phil McCabe said China's deep sea mining interest in the region is growing. "This is the third Pacific Island country that China has spoken to on deep sea mining and looking for greater cooperation with, following the Cook Islands sealed deal on cooperation and discussions with Kiribati as well." ISA secretary general Leticia Carvalho claimed the US had no authority to offer permits in the Clarion-Clipperton Zone. "Circumventing the regulatory authority of the ISA not only breaches international law, but also erodes trust," Carvalho said. Carvalho said TMC had been "very pushy" on trying to get mining rules approved at the ISA, so the company pivoting to the US was "not completely unforeseen". "The new administration of the US aligns with a number of issues regarding employment generation, security, also regarding the fact that they're somehow behind China in possession of the minerals." Juressa Lee with Greenpeace Aotearoa said the Trump administration is acting outside of multilateralism. "This sets a very, very low bar and a terrible precedent for other countries, [ISA] member states and wannabe deep sea mining companies to follow." Despite criticism, TMC's share price has quadrupled since the beginning of this year. Barron believes the price was held back by a lack of a clear regulatory pathway, which he sees is now secure through the US regulations. "We believe this US-based pathway offers the greatest probability of receiving a commercial permit in a timely, transparent and legally robust manner, giving us clear line of sight to responsible commercial operations." Barron expects the commercial recovery permit to be deemed complaint prior to the end of June, TMC will then go through an environmental review if successful.
Yahoo
21-05-2025
- Business
- Yahoo
Why TMC The Metals Company Skyrocketed Today
A news article over the weekend appears to have highlighted the potentially massive opportunity for deep sea mining. On April 24, the Trump administration issued an executive order to speed up the permitting for deep sea mining operations. One study put the value of undersea metals at $20 trillion. 10 stocks we like better than TMC The Metals Company › Shares of Vancouver-based TMC The Metals Company (NASDAQ: TMC) rocketed 22.7% higher on Monday as of 1:07 p.m. ET. The Metals Company was mentioned in a Wall Street Journal article this past weekend, highlighting an April 24 executive order from the Trump administration directing the National Oceanic and Atmospheric Administration (NOAA) to grant permits to mining companies to extract critical metals from the sea floor. The metals include manganese, cobalt, copper, and nickel. While the executive order happened in late April and The Metals Company surged on the news, apparently this WSJ piece has increased the company's visibility and the overall massive financial opportunity for the company, sending the stock another leg higher. The WSJ piece pointed to a 2024 analysis by consulting firm Arthur D. Little that estimated the worth of undersea metals at $20 trillion globally. And while the administration's executive order came over the objections of the International Seabed Authority, the WSJ also highlighted a 2021 MIT study and a recent U.K. National Oceanography Center study, which each showed the environmental impact might not be as bad as feared. Of note, The Metals Company, which was founded in 2011, has been specifically formed for the deep sea opportunity off the coast of California. Following the executive order, TMC applied for a permit just five days later -- the first company to do so. And after the order and application, the company raised $37 million in equity at $3 per share from a strategic investor, which the company said was enough to fund itself through the potential issuance of the permit. On its first-quarter update, chairman & CEO Gerard Barron said, "We have invested over a half a billion dollars and more than a decade preparing for this moment." TMC's market cap is around $2 billion now, even though the company isn't making any revenue and is generating losses while raising more capital. So, the stock is extremely speculative here and not meant for conservative investors. Still, as an early mover in this potentially massive opportunity, TMC has a huge amount of upside if many things go right -- if it obtains the requisite permits, if it can extract these metals off the sea floor in a cost-effective way, and if the prices of these metals generate a requisite return. So for investors interested in these types of "lottery ticket" opportunities, The Metals Company is a name to add to your list, especially after the April 24 executive order. Before you buy stock in TMC The Metals Company, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and TMC The Metals Company wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why TMC The Metals Company Skyrocketed Today was originally published by The Motley Fool 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
RNZ News
19-05-2025
- Business
- RNZ News
Environmentalists question Henry Puna's role in deep sea mining firm
Henry Puna. Photo: Pacific Islands Forum Environmentalists in the Cook Islands have criticised former Prime Minister and Pacific Islands Forum (PIF) head Henry Puna for joining the board of a deep sea mining company. Puna, who finished his term as PIF secretary general in May last year, played a pivotal part in the creation of multi-use marine park, Marae Moana , in 2017. The marine protected area extends over the entire country's exclusive economic zone (EEZ), covering an area roughly the size of Mexico. It prohibits large-scale commercial fishing and seabed mining within 50 nautical miles of each of the 15 islands. Puna has now joined the board of deep sea mining company Cobalt Seabed Resources (CSR) - a joint venture between the Cook Islands government and the Belgium company Global Sea Mineral Resources. CSR is currently undertaking exploration in the Cook Islands EEZ, along with two other companies. It also has an exploration licence in the Clarion-Clipperton Zone, located in the high seas in the central Pacific Ocean. Also read: Environmental advocates say Puna's new role conflicts with his conservation work. The Te Ipukarea Society said Puna was interested in the deep sea mining industry while simultaneously pushing for the creation of Marae Moana during his time as Prime Minister. "It is something to be wary about with his new role and maybe how he will go about green washing how the deep sea mining company operates within our waters and their actions," the environmental charity's director Alana Smith said. While in parliament, Puna was an MP for the Northern Group atoll, Manihiki. Manihiki resident Jean-Marie Williams said Puna is a good man However, Williams believes the benefits of deep sea mining will not be seen on his island. "We could make money out of it," he said. "But who's going to make money out of it? Definitely not the people of Manihiki. "The corporat[ions] will make money out of it." However, William Numanga, who previously worked for Puna as a policy analyst, does not view it like that. "Remember, Henry lives on an atoll, up north, so if there is any effect on the environment, he would be first to know," Numanga said. "I do not think he will be putting aside a lot of the environmental concerns or challenges. He will be making sure that those environmental concerns are factored into this development process," he added. Henry Puna ended his term as the PIF secretary general in May 2024. Photo: RNZ Pacific / Eleisha Foon He believes Puna's "passion for environmental protection", coupled with his desire for economic development, makes him a good fit for the role. Auckland doctoral student Liam Koka'ua said the company, which has the aim of extracting valuable minerals from the seabed, goes against the purpose of Marae Moana. "If you truly believe Marae Moana is a place that must be protected at all costs and protected for our sustained livelihood and future and be protected for generations to come, then I don't think rushing into an experimental industry that could potentially have huge impacts is aligned with those intentions," Koka'ua said. RNZ Pacific has made multiple attempts to reach Puna for comment, but has yet to receive a response. However, in a statement, he said CSR is "uniquely placed to make advances for the people of the Cook Islands".
