Mining is a tough business – it’s always expensive, often disappointing, and sometimes compels miners to work in extreme and dangerous conditions. Fortunately, new technology and rising prices of resources are making the risks and rewards more attractive – to such an extent that they are giving rise to a new, related industry. This one is called deep-sea mining, and some companies are licking their chops at the prospect of getting involved in it.
Deep-sea mining refers to exploring the ocean floor and extracting minerals that are found there. Often these are at depths of 660 feet, but sometimes they are as much as 21,300 feet below the surface of the ocean.
Deep-sea mining has the potential to be very lucrative, as resources at such depths are still untapped and the minerals found there are crucial for producing green energy. But there is also a downside to it, as this mining is controversial, banned by many countries, and may potentially damage both marine life and the delicate ecosystems that impact the oceans and the climate.
Undersea Mining
Despite the drawbacks, there is growing interest in mining the resources on the bottom of the ocean. This is very understandable, as they include a variety of strategic minerals and untapped deposits of manganese, cobalt, graphite, zinc, and other rare earth metals. These resources are crucial for building products that emit zero carbon but that are becoming more difficult to find and to mine on land.
Everyone is familiar with the products that use these materials, as they include rechargeable batteries, smart phones, steel, and much more. Moreover, there also are deposits of phosphates, used as fertilizer, as well as gold, silver, copper, diamonds, and even more.
Demand for them is growing rapidly, but supplies are not keeping pace. The World Resources Institute (WRI) points out the obvious conclusion: Undersea resources “can help meet the world’s pressing need for critical minerals,” which is increasing steadily.
U.S. Money Reserve estimates there may be as much as 20 million tons of dissolved gold in the oceans, and that’s certainly a lot, but not nearly as good as it sounds because that comes out to only one gram for every 110 million tons of ocean water. It is believed, however, that in addition, large deposits of gold may be trapped under rocks deep below the surface of the ocean. Furthermore, there is optimism that deposits of other strategic metals and minerals will also be found there.
According to the WRI, these minerals can be found in “slow-forming, potato-sized
polymetallic ‘nodules’ and other under water ‘crusts.’ While there has been commercial interest in these minerals for decades, recent advances in technology have made it possible to mine these by sending vehicles down to (retrieve) mineral deposits from the sea floor.”
Changing Climate Change
Governments around the world are passing laws and setting policies to reduce greenhouse gas emissions, thereby helping to control climate change. According to WRI, the energy industry is responsible for 72% of global greenhouse gas emissions, making the need for alternate, environmentally-friendly energy a priority. As a result, the demand for certain rare minerals used in curbing emissions is soaring.
Many of these minerals are being mined in various countries, including the U.S., Australia, Canada, and China. Resources such as lithium, cobalt, and graphite are among those necessary to produce EVs, batteries, wind turbines, solar panels, and other products used to produce clean energy.
Companies (and countries) are anxious to get their hands on much more of these resources – whatever the source. Miners have been exploring and mining for them on land for some time with a respectable amount of success. However, the possibility these minerals may be found in large quantities on the sea floor is one they will surely explore.
If this proves to be correct, deep-sea mining could enable these materials to be brought to the surface. According to the WRI, “there has been commercial interest in these minerals for decades but recent advances in technology have made it possible to mine these under water areas by sending vehicles down to harvest mineral deposits from the sea floor.”
Before that can happen, however, many more technological challenges will have to be resolved; international legal guidelines first will have to be established. And that’s where the UN’s International Seabed Authority (ISA) enters the picture.
The ISA believes that most of the ocean’s crucial minerals are in international waters. Countries, however, will need a permit from the ISA before exploring for any of them. And some experts warn that simply extracting minerals from the ocean floor could create serious consequences for both marine life and for planetary health. That’s why the ISA is trying to finalize regulations about how countries can pursue deep sea mining in international waters as quickly as possible.
Speeding Ahead
So far there has been limited deep-sea mining. The little that has been done was mainly to test equipment, and even that was only on a small scale. In other words, there have been no commercial activities of any kind. The official estimate is that deep-sea mining may not get underway for several years. However, given the need for strategic minerals and the potential for huge profits, it’s very likely mining may begin as soon as next year.
The race to benefit from undersea mining has already begun. India has very recently applied to the ISA for two new licenses to explore the seabed for strategic minerals under parts of the Indian Ocean. If approved, it would raise their total to four – more than all other countries except China, which already has five.
So far, the ISA has approved 31 contracts, each one valid for 15 years. Some of these have been awarded to governments. In addition to India and China, this unique club includes Poland and the Republic of Korea. Zero Hedge points out that the majority of these contracts have been awarded to private companies.
It’s still too early to invest directly in undersea mining. However, this does not mean that things are at a standstill. Scientific studies about mining the bottom of the sea are progressing, preliminary legal work is moving ahead, and techniques to more easily and inexpensively mine and capture resources are being studied and perfected. This will be a major industry one day. And that day may come sooner than you think.
Sources: gao.gov; usmoneyreserve.com; wikipedia.org; wri.org; zerohedge.com
Gerald Harris is a financial and feature writer. Gerald can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.
