The Metals Company asked to provide more information to deep sea mining regulator, NOAA, before its exploration licence applications can be officially reviewed
NOAA needs more information from The Metals Company before it can begin the process of sharing its exploration applications with several federal agencies and the general public for review and feedback.
The Metals Company (TMC) has been asked to provide more information before its applications for deep sea mining exploration licences can be deemed fully compliant by the National Oceanic and Atmospheric Administration (NOAA).
TMC must submit fully compliant applications before they can be reviewed by NOAA and other federal agencies the US regulator will need to get involved.
The deep sea mining company will now have 60 days to bring its applications into full compliance.
Not doing so by end of July would cause the company to lose its priority right to the exploration areas, which is established on a chronological basis.
Substantial compliance
NOAA wrote to TMC yesterday to advise that its two exploration applications were in substantial compliance, which means they cover the essential information required by law, but are still missing everything that full compliance requires.
In an 8-K SEC filing today, TMC said it would resubmit amended applications "in the coming days' with the required information that NOAA has requested.
It is not clear what additional information has been requested of the company, but in a post to social platform X today, CEO Gerard Barron described them as minor:
"A few minor questions remain, which we’ll address promptly"
Application requirements
The law requires that exploration licence applications are submitted in 30 copies (although the number of copies can be waived) to NOAA and contain the following:
- Statement of financial resources
- Statement of technological experience and capabilities
- Exploration plan over ten years
- Environmental and use conflict analysis (impact of the activities proposed by the applicant. The applicant must present physical, chemical and biological information for the exploration area)
- Vessel safety (affirmation that any United States flag vessel utilized in exploration activities will possess a current valid Coast Guard Certificate of Inspection; information on any foreign vessels)
- Statement of ownership (proof of US citizenship and a specific responsible person)
- Anti-trust information
- Fee of $100, 000
Exploration versus Commercial permits
Exploration licences are separate from the commercial recovery permit that would allow TMC to conduct operational deep sea mining in 25, 000 square kilometres of the Clarion-Clipperton Zone.
Exploration licences only allow the company to conduct surveys, tests and research in the 199,895 square kilometres, dubbed USA-A and USA-B, which the company has applied to license for ten years.
Feedback on the whether the commercial permit application is fully compliant will be communicated to TMC by end of June.
What happens next
Once The Metals Company amends and resends fully compliant applications, NOAA will engage in two concurrent courses of action - forward the applications to other necessary federal agencies; and hold public consultations.
US Government review
The agencies of government that may also review the applications and recommend whether to proceed or not include:
- Departments of: State, Transportation, Justice, Interior, Defense, Treasury and Labor
- Environmental Protection Agency
- Federal Trade Commission or US Attorney General (for anti-trust guidance)
- Small Business Administration
- National Science Foundation
Public comments
NOAA will also allow public comments on TMC's exploration licence applications.
Once the fully compliant submissions are received, NOAA will notify the public though the Federal Register and those interested in having a say may be 'permitted to examine the material relevant to such application'.
Both the federal agencies and members of the public or civil society organisations weighing in on TMC's application will have 60 days to do so.
Environmental hearings
As part of the public consultation process, NOAA will also hold a hearing on the draft Environmental Impact Statement to be prepared in conjunction with the applications.
The regulations state:
'After preparation of the draft EIS ... the Administrator shall hold a public hearing on the application and the draft EIS in an appropriate location, and may employ such additional methods as he deems appropriate to inform interested persons about each application and to invite their comments thereon.
If the Administrator determines there exists one or more specific and material factual issues which require resolution by formal processes, at least one formal hearing will be held in the District of Columbia metropolitan area...the record developed in any such formal hearing will be part of the basis of the Administrator's decisions on an application'
Resources in the exploration areas
According to TMC's press release in April when it applied for the licences, TMC USA-A and USA-B exploration areas contain 1,635 million wet tonnes of polymetallic nodules, "with an additional estimated 500 million tonnes of exploration upside".
The ocean mining company estimates that the area contains approximately 15.5 million tonnes of nickel, 12.8 million tonnes of copper, 2.0 million tonnes of cobalt, and 345 million tonnes of manganese. These are all minerals the United States hopes to stockpile to secure its own domestic supply chain and reduce its manufacturers' dependence on China.
If the company successfully gains the exploration licences, it will be able to apply for a commercial permit for these specific areas within ten years.
However, if the commercial recovery permit already applied for is granted, TMC will be able to start mining soon after.
The company has already said it is aiming to begin commercial operations in 2027.
Read:
For editorial comments or questions: [email protected]