The Metals Company is a deep-sea mining company focused on extracting polymetallic nodules containing valuable metals such as nickel, copper, and cobalt from the ocean floor.
Gerard, it would be useful if you begin by telling us more about the Clarion-Clipperton Zone (CCZ). Why have you decided to focus on that particular area for your potential deep-sea mining?
We know that 70% of our planet is ocean, but what people do not realize is that 70% of the known global reserves of nickel, cobalt, and manganese are in the CCZ. It is inevitable that we are going to turn to the oceans for metals, much like we did for oil and gas. As we face the environmental and human costs of land-based mining, the International Energy Agency expects we will need to increase mining activity massively to meet the transition by 2040. Already, we are encroaching on the most biodiverse, fragile ecosystems on land, making this accelerated rate unsustainable.
We need to rethink where we can secure these important battery metals with the lightest planetary and human touch. Polymetallic nodules from the CCZ provide this answer. These nodules sit on the ocean floor, and picking them up from the abyssal plains, which are desert-like environments, is the right answer. Our company has dedicated itself entirely to making this industry a reality, ensuring that we address these pressing questions with thoughtful solutions based on thorough life cycle analyses.
How did you first get the idea to explore the CCZ?
To unpack the idea, we need to go back to the 1870s and thank the brave explorers on HMS Challenger who discovered these nodules in 1873. In the 1970s, under the guise of a CIA operation to recover a sunken Russian nuclear submarine, the idea of mining polymetallic nodules was developed. This effort attracted many industry participants who began to build systems to recover these nodules from 4,000 meters below sea level and turn them into metals. However, the momentum was halted by the United Nations, as the world had not yet agreed on ocean borders, which was resolved in 1982 with the signing of UNCLOS.
The International Seabed Authority (ISA) was established to regulate these international waters, and the first licenses were granted in 2001. UNCLOS encouraged developing countries to participate by allowing member countries to sponsor private companies. We reached an agreement with Nauru to sponsor our application in return for benefits like jobs, training opportunities, royalties, and taxation. In 2011, we set up the company and applied for a license in the CCZ as DeepGreen Metals. After extensive work on permitting and environmental understanding, we went public in 2021 and changed our name to The Metals Company.
Why did you strike an agreement specifically with Nauru?
Firstly, we wanted developing countries to benefit from this activity, as UNCLOS was designed to encourage their participation. Nauru had its own environmental injustice due to phosphate mining, which left the island scarred and depleted of its resources. This small Pacific island, once lush and named Pleasant Island, was rich in phosphate, attracting exploitation by various nations, resulting in a devastated landscape.
For Nauru, participating in a solution to global warming and biodiversity loss was a way to address past injustices. By helping to transition away from fossil fuels through this new resource, Nauru saw an opportunity for a positive impact. The same goes for Tonga and Kiribati, who are also involved in our activities. These nations, having experienced environmental degradation, found a way to contribute to global solutions through our partnership.
This year is key with another round of negotiations at the International Seabed Authority (ISA) in July. These negotiations are directly related to your CCZ project. But whereas a final decision by the ISA on deep-sea mining is expected in 2025, you are planning to submit your application for mining the CCZ this year. Why?
It was the sovereign right of Nauru to file the two-year notice in 2021, based on Article 15, an addition to UNCLOS in 1994, which was intended for this purpose. If the regulator failed to establish the necessary regulations, any member state ready to proceed could file this notice to prompt regulatory action. We had the legal right to submit our application in July 2023, but we observed significant momentum and intersessional work towards finalizing these regulations.
We announced that we would not lodge our application until after the July session this year to maintain appropriate pressure and keep progress on track. Achieving agreement among 169 intergovernmental bodies is challenging, so a clear target is essential. By setting this target, we ensured that the regulations would be in place by the time our approval comes through, likely 12 months after lodging our application. We support strong environmental regulations for this industry's development and are fully aligned with this requirement.
Could you introduce us to the technology you plan to use to collect polymetallic nodules?
The technology we use involves a combination of proven methods and new innovations. For example, the integration of technologies from the offshore oil and gas industry allows us to operate effectively at great depths. We use remotely operated vehicles (ROVs) and other advanced machinery to carefully collect the nodules from the ocean floor. This approach ensures minimal disruption to the surrounding environment while efficiently gathering the resources we need.
We have a production vessel called the Hidden Gem, which provides the necessary energy and storage. Using a vertical riser, the transport mechanism drops to the seafloor and connects to an electric robot that crawls along the ocean floor to pick up the nodules. Our engineering partners have helped us develop a method to pick these nodules up with great efficiency and minimal impact. Since the nodules lie unattached on the ocean floor, we use a jet of water to create inverse pressure and lift the nodules without plowing the seafloor.
In 2022, we tested this system at a commercial scale and it was a huge success. Our job involves lifting the nodules to the production boat, offloading them to a transport boat, and moving them to shore for processing. This process, while an amazing engineering challenge, is quite simple in concept. The technology we use is already being deployed in the deep ocean daily by dozens of companies, so much of the technology needed for our operations is already in use in adjacent industries.
A number of scientists, NGOs and some countries have expressed opposition to your proposed activities. What is your response to them?
We live in an era where saying no is easy, especially when it comes to protecting the oceans. The best way to protect our oceans is by addressing global warming, as acidification poses the biggest threat. Land-based mining has a checkered past with both responsible and irresponsible operators. People often think that our ocean mining will be similar to land-based mining, but they are vastly different. For instance, nickel mining on land often involves destroying equatorial rainforests, displacing biodiversity, and impacting indigenous populations.
Critics sometimes depict our industry as harmful, using images of coral reefs to mislead the public. However, we are operating in the abyssal plains, where life is minimal. Extractive industries should be carried out in areas with the least life, not the most. While some scientists oppose our activities, we have hundreds of scientists working on our environmental research program. The data we gather forms part of our application, which regulators will assess to decide if this activity should proceed to commercial production. We must push into new frontiers responsibly, and that is where we are today.
Do you see a potential risk in not focusing on one metal, considering the fact that few junior mining companies are polymetallic?
No, it is an opportunity. We have four main metals—nickel, copper, cobalt, and manganese—all of which are critical minerals. Economically, when one metal's market is low, another may be high, reducing our dependency on a single metal market. For processing, we have developed a method to extract high recoveries of all four key metals from our nodules. This process has been tested through pilot and large-scale testing.
Being polymetallic is like having three excellent mines in one: nickel, copper, and manganese all in a single ore body. This diversity mitigates economic risk and enhances our operational flexibility, making it a significant advantage rather than a disadvantage.
What are the next steps for The Metals Company, and can you tell us about your partnerships, particularly with battery and electric vehicle producers?
The next steps involve finalizing an application to the ISA to transition from exploration to the exploitation phase. We continue to build partnerships, engaging with large automakers and potential customers. As we approach production, more commercial partnerships will be announced, providing an attractive alternative supply for these metals compared to current supply chains.
We are forming partnerships at every stage of the value chain, from offshore operations to processing partnerships, like the one we have in Japan. These collaborations allow us to use existing, permitted, and financed processing plants, eliminating permitting and construction risks. We aim to engage more with customers who want to reduce environmental impacts, such as CO2 emissions, by using metals from our nodules. This approach will become increasingly important for consumer-facing brands as environmental regulations tighten.
Is there a political aspect to your operations, considering the dominance of China in the battery material supply chain?
Yes, very much so. Recently, Congress allocated $2 million to study refining nodules in North America from the CCZ. We also receive substantial support from China, which is investing heavily in this opportunity. While it is positive to see support in DC, China’s involvement highlights the need for the West to catch up.
China is currently dominant in the battery materials market, akin to OPEC in oil. This is one of the few resources that can make North American mineral independence possible. Developing this industry is essential for diversifying supply chains and reducing dependency on China for critical battery materials.
