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On Thursday, U.S. President Donald Trump signed an executive order aimed at enhancing the deepsea mining sector, furthering his administration’s efforts to increase U.S. access to essential minerals like nickel and copper, which are crucial for various industries, including electric vehicles and electronics.
This executive action, finalized in private, is designed to stimulate mining activities in both U.S. and international waters as part of a broader strategy to counter China’s significant dominance in the critical minerals market. The order was initially reported by Reuters last month while it was still under consideration.
Large quantities of polymetallic nodules, which are potato-shaped structures found on the ocean floor, are believed to exist in parts of the Pacific Ocean and other regions. These nodules are rich in vital components like manganese, nickel, and copper.
WATCH | This rover extracts critical minerals from the ocean:
Retrieving deep sea nodules
A rover on the ocean floor extracts nodules embedded with critical minerals and brings them to a mining vessel.
According to officials, it’s estimated that over a billion tonnes of these nodules lie within U.S. waters, potentially having significant economic implications by contributing an estimated $300 billion to the U.S. GDP over the next decade and generating around 100,000 jobs.
“The United States has a core national security and economic interest in maintaining leadership in deepsea science and technology and seabed mineral resources,” Trump mentioned in his executive order.
The order calls for the expedited processing of mining permits under the Deep Seabed Hard Mineral Resource Act of 1980, and it aims to create a streamlined process for issuing permits for activities on the U.S. Outer Continental Shelf.
Controversy over mining in international waters
The directive also includes fast-tracking the review of permits for seabed mining in areas beyond U.S. jurisdiction, which could lead to potential conflicts with the international community.
The International Seabed Authority (ISA), established by the United Nations Convention on the Law of the Sea—a treaty that the U.S. has not yet ratified—has been developing standards for deepsea mining in international waters. However, these standards remain unresolved, pending agreement on environmental impacts such as dust and noise pollution generated by mining activities.
WATCH | The Canadian company leading deepsea mining efforts:
Deep-sea mining: The race for critical minerals
With vast reservoirs of valuable minerals necessary for electric vehicle batteries located on the ocean floor, a Canadian company is currently at the forefront of mining these resources. However, marine scientists and environmental advocates express concern that such industrial activities could jeopardize fragile deep-sea ecosystems.
Proponents of deepsea mining argue it may reduce the need for extensive terrestrial mining operations, which often face opposition from local communities. Conversely, environmental groups advocate for a complete ban on such mining, warning of irreversible damage to marine biodiversity.
“The United States government has no right to unilaterally allow an industry to destroy the common heritage of humankind and ravage the deep sea for the profit of a few corporations,” stated Arlo Hemphill from Greenpeace, which stands against these practices.
Countries have the sovereign right to permit deepsea mining within their territorial waters, extending approximately 200 nautical miles from their coasts. As such, numerous companies are already positioning themselves to exploit resources in U.S. waters.
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Is Trump really coming after Canada for its critical minerals? | About That
Prime Minister Justin Trudeau has indicated that President Trump’s ongoing threats regarding Canadian annexation may, in part, reflect a desire to gain control over vital critical minerals.
Mining companies that could benefit
Recently, Impossible Metals requested the U.S. administration to initiate a commercial auction for the rights to access nickel, cobalt, and other critical minerals off the coast of American Samoa.
Following the announcement of the executive order, shares of The Metals Company, a leading player in the deepsea mining sector, surged approximately 40%, reaching a 52-week high at $3.39 per share.
“With a stable, transparent, and enforceable regulatory pathway available under existing U.S. law, we look forward to delivering the world’s first commercial nodule project, responsibly and economically,” said Gerard Barron, CEO of The Metals Company, which aims to harvest nodules from the Clarion-Clipperton Zone in the Pacific Ocean.
Other firms eyeing deepsea mining opportunities include California-based Impossible Metals, Russia’s JSC Yuzhmorgeologiya, Blue Minerals Jamaica, China Minmetals, and Marawa Research and Exploration from Kiribati.
Source
www.cbc.ca