Deep Sea Mining Risks Over $560 Billion in Export Earnings, New Report Warns
A recent report by financial think tank Planet Tracker cautions that deep sea mining could threaten domestic economies by jeopardizing over $560 billion annually in export earnings. The study, entitled Race to the Bottom, highlights the precarious balance between pursuing potential profits from marine resources and the significant environmental consequences that could ensue.
Understanding Deep Sea Mining’s Potential Impact
Deep sea mining, which involves extracting valuable minerals from the ocean floor, has gained traction as countries look for alternative sources to meet growing demand for critical minerals. In particular, polymetallic nodules—potato-sized rocks rich in metals like nickel, copper, and cobalt—have captured the interest of companies and governments alike. However, the potential benefits, as highlighted by Planet Tracker, may not offset the ecological and financial risks associated with this emerging industry.
Emma Amadi, an Investment Analyst at Planet Tracker, succinctly expressed the report’s core findings:
“Deep sea mining is expected to offer minimal financial returns to ISA Member States. Countries do not own the mineral resources in international waters, and companies can choose sponsorship from any ISA member State, triggering a race to the bottom in corporate income tax rates.”
The report also calls into question the mere $6.25 million annual corporate income tax revenues projected for participating nations, suggesting that the figure is inconsequential when juxtaposed with potential environmental costs.
Prominent Figures in the Deep Sea Mining Debate
The report follows US President-elect Donald Trump’s nomination of Elise Stefanik as the country’s ambassador to the United Nations. Stefanik has openly championed the extraction of critical minerals from polymetallic nodules. The nodules—located at ocean depths of 4 to 6 kilometers (2.5 to 4 miles)—are particularly abundant in the Clarion Clipperton Zone (CCZ), where Canada’s The Metals Company (NASDAQ: TMC) currently holds two exploration contracts.
As noted by the International Union for Conservation of Nature (IUCN), the environmental stakes are high. Over 40% of coral species are at risk of extinction due to activities like fishing, bottom trawling, and deep sea mining.
Royalty Returns: A Drop in the Ocean?
According to the report, potential royalty incomes from deep sea mining range drastically, estimated between $42,000 and $1.1 million annually—a figure seemingly negligible for most economies. Furthermore, these royalties could be arbitrarily altered by the International Seabed Authority (ISA), raising concerns about their viability.
Planet Tracker’s assessment suggests that nations engaging in deep sea mining should critically analyze these adjustments against the backdrop of environmental degradation.
Counterarguments from Industry Representatives
In response to Planet Tracker’s findings, The Metals Company has voiced its skepticism regarding the report’s conclusions. A spokesperson for TMC stated:
“As the world’s largest economies gear up for responsible deep-sea mining, activists are throwing the whole misinformation kitchen sink at the public. Speculating on a fixed annual tax revenue is overly simplistic.”
TMC further contended that the complexities of the deep-sea mining industry were not accurately portrayed in the report, citing its own comprehensive Initial Assessment for the NORI-D project, projecting $7 billion in life-of-mine royalties and $9 billion in life-of-mine taxes for ISA members.
Broader Economic Risks and Environmental Consequences
Parallel studies from Planet Tracker also reveal the enormous economic risks associated with deep sea mining. When compared to land-based mining revenues, the report outlines that the collective annual loss for countries mining key terrestrial minerals could soar to $560 billion, further destabilizing markets already susceptible to fluctuations.
Prior studies have alluded to losses amounting up to $500 billion, alongside far-reaching impacts on global biodiversity. Dr. Nicole Heller, an ecologist involved in related research, underscores this point, stating that deep-sea mining could inflict damage to the ecosystem that could be up to 25 times greater than land-based mining practices.
The Case for Caution in Deep Sea Mining
Despite the potential promise of deep sea mining in contributing to the global supply of critical minerals—copper and rare earth metals are expected to see demand spike by 40%—the issues surrounding sustainability and ecological risks cannot be overlooked. The International Energy Agency projects that demand for nickel, cobalt, and lithium from clean energy technologies could surge by 60%, 70%, and 90%, respectively.
Opponents of seabed extraction maintain that valuable research remains to be conducted before any large-scale operations commence, emphasizing the need for a more sustainable approach to mineral resource management.
Final Thoughts
The findings articulated in Planet Tracker’s Race to the Bottom report serve as a clarion call for governments and businesses to reevaluate their positions on deep sea mining. The substantial risks to the environment and existing land-based economies suggest that prioritizing sustainability over immediate financial gains is crucial.
Readers are encouraged to share their thoughts on deep sea mining and its implications for our planet. How can we balance economic interests and environmental preservation effectively?
For more insights on environmental economic risk, explore our related articles on sustainable mining practices, biodiversity conservation, and the future of clean energy.
![Deep-Sea Mining]()
For more information on this topic, please refer to the full text of Planet Tracker’s “Race to the Bottom” report and the latest findings from the International Union for Conservation of Nature.
