Deep‑sea mining in Pacific deemed financially unviable, report says
A report by consultancy Koinon, commissioned by Oceans North, Deep Sea Conservation Coalition, Blue Ocean Foundation, IUCN and Dona Bertarelli Philanthropy, examined the economics of commercial extraction of polymetallic nodules in the Clarion‑Clipperton Zone of the Pacific Ocean.
The analysis, presented at the Deep Sea Dialogues alongside the 31st session of the International Seabed Authority in Kingston, Jamaica, focused on two projects – NORI‑D and TOML (Tonga Offshore Mining Limited) proposed by The Metals Company. It found that 83% of realistic scenarios would generate a financial loss and that there is roughly a 60% chance the investment would never recoup its capital.
The report identified cost overruns as the primary profitability risk, alongside uncertainty about the quantity and concentration of minerals and technical challenges of operating on the ocean floor. It concluded that, under all plausible outcomes, deep‑sea mining would destroy more public value than it creates, offering limited and uncertain financial benefits for the international community and sponsoring states.
Entities: Clarion‑Clipperton Zone · Deep Sea Conservation Coalition · International Seabed Authority · International Seabed Authority (ISA) · Koinon · Oceans North · The Metals Company
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 3 SOURCES] The report evaluated the NORI‑D and TOML projects promoted by The Metals Company in the Clarion‑Clipperton Zone. (Koinon analysis)
- [● 3 SOURCES] There is roughly a 60% chance that the investment would never recover its initial capital. (Koinon analysis)
- [● 3 SOURCES] The Koinon report titled “Case for proving: the economics of deep sea mining” was commissioned by Oceans North, Deep Sea Conservation Coalition, Blue Ocean Foundation, IUCN and Dona Bertarelli Philan (Oceans North, Deep Sea Conservation Coalition, Blue Ocean Foundation, IUCN, Dona Bertarelli Philanthropy)
- [● 3 SOURCES] Deep‑sea mining of polymetallic nodules in the Pacific is unlikely to generate net financial benefits for the international community or sponsoring states. (Koinon analysis)
- [● 3 SOURCES] Cost overruns are the primary factor reducing profitability, with additional risks from uncertainty of mineral quantity, concentration and operational difficulties on the ocean floor. (Koinon analysis)
- [● 3 SOURCES] In 83% of realistic scenarios the projects would result in a financial loss. (Koinon analysis)
- [● 3 SOURCES] Under UNCLOS, seabed mineral resources beyond national jurisdiction are the common heritage of humankind and the ISA must ensure a fair distribution of economic benefits. (UNCLOS provision cited in report)
- [● 3 SOURCES] The report was presented at the Deep Sea Dialogues during the 31st session of the International Seabed Authority in Kingston, Jamaica. (Koinon presentation)