Deep sea mining risks $560bn in land extraction — report

Headline: Deep-Sea Mining Faces Scrutiny Amid Environmental Concerns

In a rapidly evolving debate, deep-sea mining is coming under fire as environmental and economic implications are highlighted in a recent report by Planet Tracker. This discourse follows US President-elect Donald Trump’s nomination of Elise Stefanik as ambassador to the United Nations, a known proponent for extracting critical minerals from polymetallic nodules situated on the ocean floor. With these nodules lying in the Clarion-Clipperton Zone (CCZ) at depths of 4 to 6 kilometers, critics are now weighing the purported economic benefits against significant ecological risks.

The Stakes of Deep-Sea Mining

The transition to deep-sea mining promises an economic exploration of vast underwater resources. However, a warning from the International Union for Conservation of Nature (IUCN) underscored the urgency of the situation when it noted that over 40% of coral species face extinction due to human activities, including fishing and mining. Recent findings by Planet Tracker further complicate the picture, revealing minimal projected financial returns for ISA Member States involved in deep-sea mining activities.

“Deep sea mining is expected to offer minimal financial returns to ISA Member States,” cautioned Emma Amadi, an Investment Analyst at Planet Tracker. “Countries do not own mineral resources in international waters, making corporate sponsorship a potential race to the bottom in tax rates.”

A Grim Financial Outlook

The Planet Tracker report, titled “Race to the Bottom,” indicates that annual corporate income tax revenues could reach a mere $6.25 million for mining nations—a figure deemed inconsequential against potential environmental costs. It estimates that royalties for nations from these mining endeavors could fluctuate between $42,000 and $1.1 million annually, a vastly insufficient amount for all but the smallest economies.

Critics assert that the potential income outlined in the report underestimates the complexity and potential scale of the projects. “As the world’s largest economies gear up for responsible deep-sea mining, activists are throwing the whole misinformation kitchen sink at the public,” commented a spokesperson for The Metals Company (NASDAQ: TMC). “Speculating on a fixed annual tax revenue is overly simplistic.”

Environmental Concerns

Opposition to deep-sea mining is mounting as the unknown risks continue to unfold. Planet Tracker’s companion report, “Mining for Trouble,” estimates that nations already mining critical minerals on land could collectively see annual export revenues plummet by $560 billion, significantly impacting global economies. Early-stage research suggested potential damage to biodiversity could be up to 25 times greater than traditional mining.

Deep-sea mining activists call for more extensive research to assess the potential consequences of resource extraction from the ocean floor. “The consequences of both exploration and extraction of minerals from the seabed remain poorly understood,” a marine ecologist stated. “We must prioritize in-depth studies before proceeding with such initiatives.”

On the flip side, proponents argue that deep-sea mining is essential to addressing increasing demands for critical metals. The International Energy Agency has projected a 40% surge in demand for copper and rare earth metals by 2030, expectations that include a staggering 60%, 70%, and 90% increase for nickel, cobalt, and lithium sourced from clean energy technologies.

The Implications for Local Economies

While the immediate financial returns from deep-sea mining appear minimal, the potential long-term implications could alter the nature of global supply chains. TMC asserts a comprehensive SEC-compliant SK-1300 Initial Assessment for its NORI-D project, suggesting $7 billion in life-of-mine royalties and $9 billion in life-of-mine taxes. However, critics question whether these projections account for the environmental price that may accompany such resource extraction.

Engaging in the Discussion

As the debate continues, voices from both sides of the aisle emphasize the necessity of responsible mining practices, transparency, and environmental stewardship. “We need to engage in thoughtful dialogue and ensure all stakeholders have their voices heard in the decision-making process,” a policy advisor said.

The conversation around deep-sea mining serves as a timely reminder of the critical balance needed between economic development and environmental protections. With both sides presenting compelling arguments, the discussion is set to intensify, particularly as countries look to transition to more sustainable energy sources.

At this crossroads, we invite readers to share their perspectives on deep-sea mining and its implications for our oceans and ecosystems. What do you think of the economic benefits vis-à-vis environmental costs? Your thoughts matter!

Further Reading

• Planet Tracker: Race to the Bottom Report
• International Union for Conservation of Nature

Internal Links:

• Understanding Polymetallic Nodules
• The Importance of Marine Conservation

In summary, the implications of deep-sea mining provide a fascinating lens through which global resource extraction avenues can be examined. As we move forward, ongoing evaluations and discussions about the impact of such initiatives will be crucial in steering the course toward a sustainable future.