Norway halts deep sea mining

[Ben Graham]

Norway is hitting pause on deep sea mining after the governing party reached a deal with the opposition to ensure adoption of its latest budget.

No deep sea licences will be issued in Norway’s territorial waters until 2029, in line with an agreement made with the opposition Socialist Left Party on Tuesday.

Second thoughts

The moratorium marks a reversal of Norway’s decision 18 months ago to approve licensing for exploration permits that were supposed to be issued this year, BMO Capital Markets analyst Helen Amos said in a note on Wednesday.

Oslo had proposed 386 offshore blocks comprising about 38% of the 280,000 sq. km approved by Parliament for exploration earlier in the year.

At least two companies had applied for licences last year while the government was keen on deep-sea mining in the Arctic to increase Europe’s supply of essential rare earth minerals and battery metals such as copper, nickel and manganese. Those minerals are key components of clean energy technologies and defence applications.

Mining would not have started before 2030.

US looking deep

Norway’s change of heart comes as United States policymakers warm to deep sea mining, with President Donald Trump issuing an executive order in April to fast-track offshore mining. The Trump administration views deep-sea mining as a strategic means of reducing dependence on foreign mineral supply chains.

Just days after Trump’s order, deep-sea explorer The Metals Company (Nasdaq: TMC) filed applications for a commercial recovery permit and two exploration licences under the US seabed mining code.

TMC’s two exploration licence applications cover a combined 199,895 sq. km, while the commercial recovery permit covers 25,160 sq. km within the Clarion-Clipperton Zone, a resource-rich region of the central Pacific Ocean between Hawaii and Mexico.

Potential bonanza

The zones host 1.63 billion wet metric tonnes of SEC SK 1300-compliant nodules, with an estimated exploration upside of 500 million tonnes, according to TMC. The resource is projected to contain 15.5 million tonnes of nickel, 12.8 million tonnes of copper, 2 million tonnes of cobalt, and 345 million tonnes of manganese.

Several other nations, including the Cook Islands and Japan, are also exploring deep-sea mining within their territorial waters, which extend 200 nautical miles from shore.

Japan to test mine seabed mud for rare earths

Supporters claim seabed extraction has a smaller environmental footprint than land-based mining and that it’s vital to meeting rising demand for critical minerals. But critics say it poses huge risks to sensitive seabed ecosystems.