U$ CONGRESS APPROVES DEEP SEA MINING
The Metals Company stock rises as US Bill proposes investment in seafloor mining
The Responsible Use of Seafloor Resources Act was introduced on Tuesday.
By Bruno Venditti March 13, 2024
System used to uplift nodules from seafloor to surface.
The Metals Company (Nasdaq: TMC) shares soared on Wednesday after Congresswoman Carol Miller (R-WV) and Congressman John Joyce (R-PA) introduced a Bill to increase US support for deep-sea mining.
The Responsible Use of Seafloor Resources Act calls for federal resources to be allocated towards refining polymetallic nodule materials and advises several analyses across benefit sharing, technology development, trade, and environmental and human health.
The Act calls for the government to coordinate and expedite the development of infrastructure to process and refine seafloor nodules within the United States.
It also asks the Office of Science and Technology Policy to annually submit to the President and Congress a report including quantitative and qualitative analysis of the benefits to the US of importing seafloor nodules and processing and refining nodules domestically.
“The strength of US national security and energy independence will be determined by how we choose to respond amid increasing reliance on China. This legislation is common sense and encourages the needed strategic decoupling from China that is long overdue,” said Congresswoman Miller.
China controls roughly 60% of the global critical mineral production and over 85% of the world’s refining capacity.
“Over the last two decades, the Chinese Communist Party has strategically invested in putting a stranglehold on global critical mineral supply chains. It’s vital to our security and economic interests that the CCP controlled monopoly on these materials is broken,” said Congressman Joyce.
Following the introduction of the Bill, shares of the deep-sea mining pioneer rose as much as 15%. The Metals Company has a $588 million market capitalization.
“With commercial deep-sea nodule operations expected to begin soon, Congressional action to lay the foundation for processing and refining this remarkable resource is a game-changer,” CEO Gerard Barron said in a news release.
Minerals and metals such as cobalt, nickel, copper, and manganese can be found in potato-sized nodules on the ocean floor. Reserves are estimated to be worth anywhere from $8 trillion to more than $16 trillion, and they are in areas where companies, including The Metals Company, plan to target.
Many NGOs and environmental groups, however, argue that mining the seafloor could have a devastating impact on the planet.
A recent report by the non-profit Planet Tracker says mining the seafloor for key minerals and metals could negatively impact the mining industry, resulting in $500 billion of lost value and causing damages to the world’s biodiversity estimated to be up to 25 times greater than land-based mining.
TMC Applauds U.S. Congress For Championing Seafloor Nodule Exploration and Resource Independence
Discover how TMC lauds the U.S. Congress for the ground-breaking RUSRA bill, paving the way for responsible seafloor resource management and enhancing energy security.
Israel Ojoko
14 Mar 2024
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TMC Applauds U.S. Congress For Championing Seafloor Nodule Exploration and Resource Independence
TMC, the metals company Inc. (Nasdaq: TMC), a trailblazer in uncovering the world’s largest untapped reservoir of critical battery metals, extends its commendation to the U.S. Congress.
Their recent legislative proposal, the Responsible Use of Seafloor Resources Act (RUSRA), marks a pivotal step toward securing our energy future and bolstering national security.
Seafloor Nodules: Hidden Riches Beneath the Waves
Seafloor nodules—those enigmatic clusters of minerals strewn across the ocean depths—hold immense promise.
These polymetallic nuggets harbor essential elements like nickel, cobalt, and manganese, vital for cutting-edge technologies, renewable energy, and defense applications. As the world grapples with resource scarcity, unlocking these oceanic treasures becomes imperative.
Congress Takes the Helm
The RUSRA bill, championed by House Representatives, charts a course toward responsible seafloor resource management. Its dual mandate is clear:
International Governance: The U.S. commits to collaborative stewardship of seafloor exploration. Allied partners join hands to navigate the delicate balance between extraction and environmental preservation.
Support and Refinement: Congress pledges financial, diplomatic, and logistical backing for seafloor nodule collection, processing, and refining. This strategic move aims to reduce reliance on adversarial nations and fortify our supply chains.
Gerard Barron’s Optimism
Gerard Barron, Chairman and CEO of The Metals Company, echoes the sentiment: “We stand on the cusp of commercial deep-sea nodule operations. Congress’s groundwork in establishing processing and refining protocols is a game-changer. But that’s not all—we eagerly await the Pentagon’s report, a directive from the House Armed Services Committee. This report could pave the way for a domestic refinery feasibility study, ensuring mineral independence for the U.S.”
The rising tide of support within Congress emboldens Barron. It signals multiple pathways—innovative, collaborative, and strategic—for our nation to secure critical minerals derived from these oceanic marvels.
The Ocean Beckons
As the sunken riches beckon, Congress’s resolve shines through. Seafloor nodules hold the promise of energy security, technological advancement, and a resilient future. Let us navigate these uncharted waters with purpose, unlocking the ocean’s bounty for generations to come.
The Metals Company Commends U.S. Congress on Bill to “Provide Financial, Diplomatic, or Other Forms of Support for Seafloor Nodule Collection, Processing and Refining” and Advancing International Regulations for Seafloor Resources
- The Responsible Use of Seafloor Resources Act (RUSRA) calls for U.S. support for ‘responsible polymetallic nodule collection’ and the use of federal funding to establish domestic infrastructure to refine nodules into critical minerals for the energy transition and national defense.
- The legislation comes as American and allied auto and battery makers struggle to secure supplies of critical battery metals that comply with guidelines for incentives under the Inflation Reduction Act, while metals demand for infrastructure and development continues to grow.
- The bill is endorsed by a coalition of leaders across the offshore energy industry, marine mineral exploration, and global research centers.
NEW YORK, March 13, 2024 (GLOBE NEWSWIRE) -- TMC the metals company Inc. (Nasdaq: TMC) (“TMC” or the “Company”), an explorer of the world’s largest estimated undeveloped source of critical battery metals, today welcomed the introduction of legislation by members of the House of Representatives calling for the U.S. to “support international governance of seafloor resource exploration and responsible polymetallic nodule collection by allied partners” and to “provide financial, diplomatic, or other forms of support for seafloor nodule collection, processing and refining.”
Sponsors of the bill, entitled the Responsible Use of Seafloor Resources Act (RUSRA), find that the “United States is falling behind in competitiveness within supply chains for critical defense and clean energy technologies”, and recognize that “the collection of seafloor nodules is integral to ensuring the United States does not continue its over-dependence" on adversarial nations.
Gerard Barron, Chairman and CEO of The Metals Company, said, “With commercial deep-sea nodule operations expected to begin soon, Congressional action to lay the foundation for processing and refining this remarkable resource is a game-changer. Additionally, we eagerly await the forthcoming Pentagon report on nodules as directed by the House Armed Services Committee. The Pentagon’s ability and willingness to support a feasibility study for a domestic refinery could help establish mineral independence for the U.S. in nickel, cobalt and manganese. The rising wave of support within Congress gives me confidence that there are multiple pathways for the country to support and potentially fund allied supply of nodule-derived critical minerals.”
The bill, introduced by Representatives Carol Miller (R-WV) and John Joyce (R-PA), notes: “Investing in the development of mineral resources and processing infrastructure quantitatively proven to reduce ESG impacts, such as seafloor nodules, is integral to ensuring the raw materials that underpin our domestic industrial base and transition to clean energy do not have adverse planetary impacts.”
In addition to TMC, the bill is endorsed by the National Ocean Industries Association, the Breakthrough Institute, the Critical Ocean Minerals Research Center, Deep Reach Technology, Kingston Process Metallurgy Inc., Global Seabed Resources NV, Ocean Minerals LLC, Odyssey Marine Exploration, Inc. and Moana Minerals.
Over recent years, TMC has welcomed letters from congressional leaders including the House Armed Services Committee as well as former military leaders urging the Biden Administration to assess domestic processing of seafloor polymetallic nodules as a means to secure key energy transition metals and “close national security vulnerabilities.” In March of 2022, TMC Chairman and CEO Gerard Barron wrote to the Senate Energy and Natural Resources Committee, noting, “It is a geological reality that there are insufficient U.S. reserves of nickel, cobalt, and manganese to support lithium-ion battery production at scale, and that recycling will not be able to meet demand in the mid-term. TMC can provide access to enough in situ resource to fully electrify the U.S. passenger fleet (280 million EVs).”
In July of 2022, Secretary Granholm of the US Department of Energy advised, "For nickel and certain other minerals, such as manganese and cobalt, the presently known U.S. reserves and known resources fall short of satisfying projected domestic demand to meet decarbonization goals. For nickel specifically, Russia’s footprint in the nickel market and the subsequent price spikes related to the Russia-Ukraine conflict have reinforced the importance of establishing a strong domestic supply, processing, and refining base for economic development and national security. "
The newly introduced Responsible Use of Seafloor Resources Act aims to ready the United States for the commercial availability of seafloor nodules, an abundant source of critical minerals.
About The Metals Company
The Metals Company is an explorer of lower-impact battery metals from seafloor polymetallic nodules, on a dual mission: (1) supply metals for the global energy transition with the least possible negative impacts on planet and people and (2) trace, recover and recycle the metals we supply to help create a metals commons that can be used in perpetuity. The Company through its subsidiaries holds exploration and commercial rights to three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean regulated by the International Seabed Authority and sponsored by the governments of Nauru, Kiribati and the Kingdom of Tonga. More information is available at www.metals.co.
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