Critical minerals are key components of clean-energy technologies, which are essential to replacing fossil fuels and stabilizing the climate. At present, the United States is highly dependent on critical minerals to support a growing electric vehicle market. Yet, the United States is also vulnerable to growing geopolitical realities and supply-chain bottlenecks. China, a major supplier of these minerals to global markets, just announced a ban on some exports to the United States.
This situation raises a red flag for Ocean Conservancy as we strive to protect our ocean forever and for everyone. While some are looking to the ocean as the next frontier for securing these minerals, countries like China are positioned to mop up the international seafloor. Should they do so, this would only further weaken the United States by bolstering China’s dominance over critical mineral supplies.
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However, according to two new reports by Planet Tracker, an award-winning nonprofit that focuses on sustainable finance, deep-sea mining would be an economic boondoggle, particularly for developing countries. Simply put, seabed mining would be little more than a gold rush, benefitting the few at the expense of the many.
In its first report, Planet Tracker evaluated the financial impact of deep-sea mining on the economies of 12 developing countries that currently obtain critical minerals from land-based mines. All 12 countries are characterized as dependent or highly dependent on the mining sector for revenue.
A market influx of marine-derived minerals, particularly cobalt, copper and nickel, is expected to directly compete with these land-based sources, depressing export earnings of countries with land-based mining operations. Planet Tracker estimates that these 12 countries, with a combined $560 billion in export revenue, would be vulnerable to potentially destabilizing price shocks as a result.
The International Seabed Authority (ISA) previously confirmed that seven of the countries in Planet Tracker’s analysis are at the greatest risk of economic harm from market saturation if or when companies begin extracting polymetallic nodules from the seabed. ISA is required to compensate developing countries for economic losses related to the impacts of seabed minerals on their export or market prices. However, the annual amount of ISA compensation each country could expect would be only $1.1 million, a paltry sum considering the 12 countries each currently generate between $5-240 billion in critical mineral export revenues.
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In Planet Tracker’s second report, ISA member countries or states sponsoring mining companies were found to receive nominal payments, either in taxes or royalties, should deep sea mining proceed. The amounts of payments to members depends on the number of ISA’s financial and legal obligations, which could be substantial and take precedence over payouts to members. For example, ISA could be required to restore seafloor habitats damaged by mining, with the potential to significantly reduce royalties to member states. By one estimate, the cost to restore the seafloor on a per km2 basis could be as high as $5.3-5.7 million. According to ISA, a typical 20-year mining operation could impact an area of around 8,500 per km2. This means the potential total cost to restore the footprint of a 20-year mining tract could be as high as $48 billion, all but depleting funds for payments.
Developing countries sponsoring mining companies also might not see a dime in corporate income taxes because of the sponsorship agreements that waive company taxes. Small Island Developing States could also receive far fewer royalties than more populous countries if the amount of money to be distributed from the ISA royalty fund is tied to population size.
To add salt to the wound, Small Island Developing States could potentially experience a greater share of the environmental impacts from mining operations if the marine ecosystems on which they depend for food or cultural uses are harmed. According to one study, some Small Island Developing States or developing countries catch as much as 10% of their tuna from areas likely to see some of the earliest and largest deep-sea mining operations. In a separate study, Ocean Conservancy identified the overlap of fisheries with prospective locations for mining critical minerals in U.S. federal waters. The potential impacts of deep-sea mining on ecosystem services like fisheries and seafood are among the reasons Ocean Conservancy is advocating for a moratorium on deep-sea mining.
When you add up all the financial and economic impacts, the conclusion is that deep-sea mining would be tragically unnecessary for the ocean and for local communities, especially those located in Small Island Developing States.
But we can put the energy transition on a different path, one not dependent on minerals scoured from the deep seafloor. Technological innovation is already rapidly moving electric car batteries away from the types of minerals or metals found on the deep seabed. Some minerals, such as cobalt, a critical component in electric vehicle batteries, can instead be extracted directly from seawater, which contains 70 times more cobalt than land. Decommissioned offshore oil platforms in the Gulf of Mexico could serve as structures for harvesting cobalt, an elegant example of how old energy infrastructure can support new sources of climate- and ocean- friendly energy.
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An international moratorium on seabed mining is needed to prevent further dominance of the global mineral supply chain by China and other countries. This action would give the U.S. valuable time to achieve critical mineral independence through a domestically centered supply-chain strategy that prioritizes technological efficiency, material substitution and circularity.
Society simply has too much to lose ecologically—and very little to gain economically—by plundering the deep seabed for critical minerals.
If we don’t act now, we risk sleepwalking into deep-sea mining and doing irreversible harm to the ocean. Take action with Ocean Conservancy to halt seabed mining in its tracks.
The post The Risks of Deep-Sea Mining appeared first on Ocean Conservancy.
