Speeding of Government Permitting Could Open Doors for U.S. Deep Sea Mining

---

Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--"We're...looking forward to this administration's proposed amendments to streamline permitting and supportive guidance from senior officials underscoring the U.S. government's intent to lead in the production and processing of deep seabed critical minerals," said The Minerals Company's (TMC) (Vancouver, British Columbia) Chief Executive Gerald Barron in the company's recent second-quarter earnings call.

Because of its long history of investment and research, TMC is widely considered to be the leader in deep sea mining of polymetallic nodules that abundantly line the ocean floor in many areas. TMC is invested in research in the minerals-rich Clarion-Clipperton Zone (CCZ) extending southeast of Hawaii all the way to the western coast of Mexico.

Polymetallic nodules range in size from microscopic to about 8 inches across. Composed largely of manganese hydroxides in most cases, they can also be rich in cobalt, copper, manganese and nickel. These are among the "critical minerals" identified by the Trump administration in Executive Order 14285, for which, as Barron alluded to, the administration has promised to fast-track mining permits.

It's the Deep Seabed Hard Mineral Resources Act of 1980, administered by the National Oceanic and Atmospheric Administration (NOAA), which outlines the procedures and responsibilities for permitting.

On August 4, TMC issued information on two economic studies that valued resources in the company's two CCZ blocks. It showed a potential value of $23.6 billion.

TMC Chief Financial Officer Craig Shesky added that, based on the studies done, TMC's first project should be in the CCZ's Nori-D zone. The company projects first production for Q4 2027. Sheskey explained, "Assume production start date is Q4 2027, with a life of mine just over 18 years, annual production in steady state was modeled at 10.8 million tons of wet nodules. Steady state for the [prefeasibility study] is defined as the years 2031 through 2043."

At a separate event in Texas last summer, TMC officials noted that the CCZ area is rich in nickel, cobalt and manganese, in amounts that dwarf combined land reserves. And unlike many land-based mining operations, deep-sea mining emits no waste and does not disturb surface areas--although some environmental organizations are saying more research is needed to evaluate what sea floor disturbance might mean to that environment.

Permit processing acceleration is already moving along, Barron said, as the company submitted applications for their preferred locations in April, confirmed substantial compliance in May, "And on August 12, NOAA confirmed full compliance for our exploration license applications, another important milestone that validates the thoroughness of our submission and moves us to the next stage in the process. And I'm pleased to say that NOAA has begun the process of certifying these applications, a hundred-day process that started on July 27 and July 28. Each regulatory milestone derisks the project."

Getting that production to the surface will require four converted drill ships, with the first one being available just in time for the Q4 20207 startup.

Once the nodules are collected, processing is next. According to Industrial Info, 1.3MM tons per year of the nodules will be toll processed at PAMCO Smelter in Japan. Those remaining will be toll processed at other smelters in Indonesia producing Nickel-Cobalt-Copper Alloy Matte. The Matte will be sold downstream to third parties refineries (like Korea Zinc) until TMC construct its own refineries along the Texas Coast.

IIR is tracking six projects in CCZ, says IIR's VP Research Metals & Minerals, Joe Govreau. "The nodules from NORI-D will be processed at a tolling facility in Japan owned by Pacific Metals Company. Then TMC will develop their TOML-F mining operation, also in the CCZ. This will be followed by development of a hydrometallurgical refinery in Texas."

The need for energy security, including the critical minerals required in the energy transition, was cited as the main impetus for the aforementioned executive order streamlining the permitting process. Other areas, including the U.S. outer continental shelf in the Gulf of Mexico may also be in the mix, particularly near the Texas coast, as the permitting process continues to be streamlined.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more by viewing the related project reports.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).