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September 2021 · Volume 6, Issue 6

IUCN votes for deep-sea mining moratorium

Featured Images: Sponges settled on a polymetallic nodule at a historic deep-sea mining test site off the coast of Florida. Photo courtesy NOAA.

Featured Image: Map of the Clarion-Clipperton Zone, modified from Treasures Beneath the Waves – X Marks the Spot!

This month, the International Union for Conservation of Nature called on all state members to implement a deep-sea mining moratorium, including a moratorium on issuing new exploration contracts and adopting a mining code, until appropriate impact assessments have been completed. Those impact assessments include social, cultural, and economic risks, in addition to environmental risks. The IUCN also called for the implementation of the Precautionary Principle, an ecosystem approach to management, and a policy of polluter pays, as well as a for policies to ensure global metal production, both off and on-shore, be conducted responsibly, with a focus on transitioning to a circular economy and reducing demand for virgin ore.

Notably, and in direct conflict with the International Seabed Authority’s current implementation plan for the next 2 years of deliberation, the IUCN called for more and more transparent public consultation mechanisms to ensure that stakeholders from around the world, including indigenous peoples, be involved at all phases in the development of the mining code.

Read more: IUCN votes for deep-sea mining moratorium

From the Editor: ISA rushes forward

The International Seabed Authority published their provisional roadmap for the next two years of international negotiations, optimistically culminating with the approval of the Mining Code for polymetallic nodules in areas beyond national jurisdiction. This ambitious goal depends upon the ability to resume ISA sessions in Kingston, a scenario that continues to be unlikely, with many participants and stakeholders expressing doubt that in-person meetings will resume before boreal summer 2022.

The ISA hopes to get at least a few delegations to return to Jamaica before the end of the year. As part of their new schedule, they expect to hold a much-abridged meeting of the Assembly and Council this December. The ISA is encouraging member states to send small delegations of no more than 2 individuals or use already in-country representatives from existing permanent missions. Observers are limited to sending a single individual. Even with a smaller format, several stakeholders have expressed doubts that the ISA will be able to gather enough members for a quorum.

In order to meet the deadline of July 9, 2023 for adoption of a mining code for the exploitation of polymetallic nodules in the Area, the ISA is pushing forward a plan to double the length of in-person meetings, with two three-week council sessions, totaling six weeks. The Legal and Technical Commission, who have performed the heavy lifting in 2021 through a series of remote meetings, will meet for two in-person sessions of one week each. The Assembly, which represents the sole opportunity for many non-member state stakeholders, including observer groups, NGOs, nations with observer status, and other representatives of civil society, will meet for a single week, as they have for the last several years. The Finance Committee will meet for three days during the second session.

The ISA leaves open the potential for a third session in late 2022 subject to need and the availability of resources.

Most surprising in the provisional plan is the complete absence of any opportunity for stakeholder input during the two years leading up to the release of the expedited mining code. Without a chance for stakeholders to provide direct feedback on a near-final draft, the ISA is placing itself in an extremely vulnerable position which could lead to the collapse of negotiations and the failure to deliver on its obligations to the international community. Given this proposed path forward, it seems all but inevitable that stakeholders should prepare for the final contingency: that a Plan of Work submitted by NORI sometime in 2023 will proceed to review without the framework of a finalized mining code.

The Metals Company suffers a weak opening month of public trading

Featured Image: Pilot nodule collector deployed by Lockheed in the 1970s.

Featured Image: Nasdaq chart for $TMC during the month of September

This month, The Metals Company completed its reverse merger with Sustainable Opportunities Acquisition Corp and was formally listed as $TMC on Nasdaq. On September 17, Chairman and CEO of The Metals Company Gerard Barron, rang the opening bell at the Nasdaq MarketSite in Times Square.

In a press release announcing the successful merger and listing, Barron said: “Public listing and access to public capital markets is an important milestone in our mission to solve the raw materials challenges of the clean energy transition. I want to give a heartfelt welcome to our new investors who participated in this transaction and thank our existing partners and investors who continue to support our important mission and our evolution from DeepGreen to The Metals Company.”

Unfortunately, at least two of those investors felt otherwise. Following the reverse merger, two investors failed to deliver on promised funding, which may account for almost two-thirds of the supplementary funding expected from investors in the reverse merger. The Metals Company is now in the unenviable position of having to seek legal remedies against their potential shareholders to force delivery of the promised funds.

Read more: The Metals Company suffers a weak opening month of public trading.

Deep-Sea Mining set to become a $100 billion plus industry but U.S. can’t participate

Alex Gilbert explains why the US can’t participate in the international deep-sea mining industry in this interview with Kitco News.

Commentary: Can the invocation of the ‘two-year rule’ at the International Seabed Authority be challenged?

Pradeep A. Singh for the Deep-sea Mining Observer

In late June 2021, some three months ago now, the Republic of Nauru invoked section 1(15) of the 1994 Agreement Relating to the Implementation of Part XI of the UN Convention on the Law of the Sea (hereinafter ‘section 1(15)’), which houses the ‘two-year rule’ or ‘trigger’, at the International Seabed Authority (ISA). The potential implications and consequences that would ensue from the invocation of section 1(15) have been broadly discussed in previous editions of the DSM Observer, for example, in November 2020, June 2021, and August 2021.

There are numerous legal ambiguities surrounding the implications and consequences that would necessarily follow from the invocation of section 1(15), especially in relation to how the Council should respond in the event the two-year deadline has passed and an application is submitted while the exploitation regulations remain incomplete. Some of these uncertainties have been broadly highlighted elsewhere from an academic viewpoint in a short paper and recent blog post. This commentary will instead focus on a separate but closely related question, namely, whether the invocation of section 1(15) can be challenged?

Read more: Can the invocation of the ‘two-year rule’ at the International Seabed Authority be challenged?

Deep-sea Mining in the News

Note: We try to represent both positive and negative news surrounding the development of deep-sea mining when we curate each month’s collection of news articles. Unfortunately, the most significant and relevant media surrounding the industry this month was overwhelmingly negative.

Race to the bottom: the disastrous, blindfolded rush to mine the deep sea

(The Guardian) One of the largest mining operations ever seen on Earth aims to despoil an ocean we are only barely beginning to understand.

Read more: Race to the bottom: the disastrous, blindfolded rush to mine the deep sea

Deep-sea mining gets a resounding rejection from conservation authorities

(Mongabay) Delegates at this year’s global conservation summit have voted overwhelmingly in support of a motion that calls for a moratorium on deep-sea mining and the reform of the International Seabed Authority (ISA), the U.N.-mandated body tasked with regulating this activity.

Read more: Deep-sea mining gets a resounding rejection from conservation authorities

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DSM Observer is published by Blackbeard Biologic: Science and Environmental Advisors, via a grant from the Pew Charitable Trusts to the University of Maryland Center for Environmental Sciences. Editor-in-chief: Andrew Thaler