The Metals Company (TMC) used its recent shareholder briefing to reaffirm its controversial decision to apply to mine the seabed in international waters under the U.S. Deep Seabed Hard Mineral Resources Act (DSHMRA). In the briefing TMC appeared to confirm it was not applying to mine via the International Seabed Authority (ISA), although it won’t relinquish those licences.

It may struggle to keep the ISA licences given their compliance issues and recent criticisms of the U.S. applications from the ISA Secretariat and Member States.

TMC’s own filings acknowledge the serious risks involved in this approach, including:

• Lack of clarity in the DSHMRA process, with TMC noting “there can be no assurance that such determinations will be favorable.” The process will require a full Environmental Impact Statement under NEPA, public comment, and may face legal challenges.
• Dependence on long-term political support from the U.S. Government to maintain a multi-year mining licence.
• Potential regulatory and legal conflict with the ISA which may result in suspended or cancelled licenses, or costly international litigation.
• Legal obligations under the UN Convention on the Law of the Sea (UNCLOS), as highlighted by the ISA, require ISA Member States to deny recognition of a U.S. permit and take action under national laws to not comply with it. 

There are 170 Member States and so these legal obligations present a huge problem for TMC. It’s a Canadian registered company, with an Australian CEO, whose main operating partner is the Swiss-Dutch company, Allseas, with processing by a Japanese company and potential multinational investors, insurers and customers. 

Will businesses, investors or insurers be willing to be associated with such a high risk and legally dubious venture?

Andy Whitmore, Finance Advocacy Officer at the Deep Sea Mining Campaign noted “TMC has been forced into this gamble by vanishing cash and tight deadlines. There has been no significant change in their bottom line announced in their recent financial results. This move is perilous and provocative. It merely prolongs the pipe dream of seabed mining for a few more months.”

TMC has abandoned its earlier narrative that deep sea mining was necessary for the energy transition. It now frames the project as serving U.S. strategic interests; a claim that also falls short, given the minerals in polymetallic nodules don’t align with U.S. critical minerals priorities. 

Andy Whitmore concluded “This is deep sea mining in a nutshell: divisive, destructive, and unwanted. In this case, also completely unnecessary. TMC’s minerals are not even priority minerals for the U.S. – this is just another desperate move by a company running out of options.”

The Deep Sea Mining Campaign continues to oppose deep sea mining and urges governments, investors, and companies to reject this dangerous industry.

For more information contact our Finance Advocacy Officer below: 

Andy Whitmore, P: +44 7754 395597 E: andy@dsm-campaign.org