Deep-sea mining (DSM) is the process of extracting minerals such as polymetallic nodules from the seabed. The terrestrial source indicates land-based mining activities that supply global demands for essential minerals such as cobalt and nickel. In the wake of increasing needs for critical minerals due to rapid shifts toward cleaner energy sources, moving into the oceans has moved from theory to practice.
The governance of DSM within areas outside national jurisdictions is the sole responsibility of the International Seabed Authority (ISA). The ISA was formed after the ratification of the UN Convention on the Law of the Seas (UNCLOS) to regulate all the mining processes that take place in the international seabed (Blanchard et al., 2023). The UNCLOS has referred to the international seabed as a “common heritage of humankind.” The ISA has issued several exploration contracts but not exploitation licenses as regulations have not been established yet.
The present situation can be described as an intensely disputable one. ISA is working on the Draft Exploitation Regulations to form legal framework for exploitation activities (Pecoraro et al., 2024). It entails negotiations on developing rules and guidelines, which are often marked by discussions of environmental assessment and benefits sharing. Conflicts heightened following sponsoring states’ decision to invoke relevant legal clauses to force the ISA into finalization of regulations under considerable environmental uncertainty (klimašauskaitė et al., 2024).
The main challenge in terms of developing regulations is associated with a serious lack of baseline scientific information about deep sea ecosystems. There are numerous calls from environmentalists and other member states for a precautionary stop on exploiting because of possible adverse consequences. The ISA Secretariat bases its work on scientific expertise, but incorporating it is rather problematic (klimašauskaitė et al., 2024). Indeed, there is a paradoxical demand for facilitation of exploitation together with adequate protection of the marine environment (Blanchard et al., 2023).
However, the implications of DSM on the terrestrial supply will be profound. Inclusion of a novel source of minerals can diversify supply chains since the reliance of terrestrial countries that are dominant in extraction will be reduced. The consistent supply of nickel and cobalt from the deep-sea can address shortage of metals and provide stability of metal prices and enough materials for rapid development of the electric vehicle industry. In other words, DSM becomes an essential part of overcoming the inherent weaknesses of terrestrial operations.
At the same time, DSM can disrupt economies of land-based mining. Countries that obtain revenue from extracting minerals might experience negative effects if the price of ocean-sourced metals is below the price for the terrestrial ones. It is evident why the mandate of the ISA is oriented on minimizing adverse effects on developing terrestrial producers although implementation of this approach is complicated. Thus, the supply of minerals depends on ability of the ISA to adopt a balanced regulatory framework (Pecoraro et al., 2024).
To sum up, an emerging oceanic ore supply source may pose serious risks to the economics of terrestrial mineral mining industries. The countries that depend on terrestrial minerals for their economy may face problems if the metals from oceans drive down the price level of terrestrial minerals. In consideration of these factors, there is an approach in the mandate of the ISA that may address the negative impact on developing countries in terms of their economics.
References
Blanchard, C., Harrould-Kolieb, E., Jones, E., & Taylor, M. L. (2023). The current status of deep-sea mining governance at the International Seabed Authority. Marine Policy, 147, 105396. https://doi.org/10.1016/j.marpol.2022.105396
klimašauskaitė, a., Dees, P., Funtowicz, S. O., Drivdal, L. E., & Berta, O. G. (2024). Science at the Secretariat of the International Seabed Authority: post-normal science for recalibration of policy instruments. Open Research Europe, 4, 252. https://doi.org/10.12688/openreseurope.18879.1
Pecoraro, A., Lily, H., & Singh, P. (2024). The International Seabed Authority and the Push for Exploitation of Deep Seabed Minerals: Does the Doctrine of Legitimate Expectations Apply? The Journal of World Investment & Trade, 25, 698–741. https://doi.org/10.1163/22119000-12340344
