Deep-sea mining analysis warns of significant economic losses

A new economic analysis titled ‘Case Not Proven: The Economics of Deep-Sea Mining’ suggests that deep-sea mining is likely to result in financial losses rather than the promised economic prosperity. The study, conducted by Koinon Consulting and promoted by several environmental organizations including the Deep Sea Conservation Coalition and the Ocean Azul Foundation, applied a stress test to industry economic projections.

The findings indicate that in 83% of realistic scenarios, deep-sea mining destroys value, even without accounting for environmental or social costs. Furthermore, there is a 61% probability that investors will fail to recover their initial capital. While companies like The Metals Company project multi-billion dollar gains, this independent analysis produces a median loss of $5 billion.

Johnny West, director of Koinon Consulting, stated that the returns are too low given the technical, operational, environmental, and social risks involved. Experts involved in the report argue that the narrative of economic necessity is a myth and suggest that a pause on deep-sea mining is the only responsible path.