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Trump's order aims to boost U.S. access to critical
minerals
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Environmental groups warn of irreversible biodiversity
loss
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Congressional hearing shows partisan divide on deep-sea
mining
(Adds details throughout from congressional hearing,
background)
By Ernest Scheyder
April 29 (Reuters) -
Deep-sea mining firm The Metals Co asked the Trump
administration on Tuesday to approve its plans to mine the
international seabed, making it the first such company to seek
the government's permission to operate outside U.S. territorial
waters.
Last week President Donald Trump signed an order aiming
to jumpstart mining in both domestic and international waters in
an attempt to boost U.S. access to critical minerals and reduce
China's market control.
The move ratchets up tension between Washington and the
United Nations-backed International Seabed Authority, which has
been crafting mining standards for more than a decade, while
China objected to the order as a violation of international law.
Parts of the world's oceans are estimated to contain large
amounts of potato-shaped rocks known as polymetallic nodules
filled with the building blocks for electric vehicles and
electronics.
Supporters of deep-sea mining say it would lessen the need
for large mining operations on land, which are often unpopular
with host communities. Environmental groups are calling for the
activity to be banned, warning that industrial operations on the
ocean floor could cause irreversible biodiversity loss.
Any country can allow deep-sea mining in its own territorial
waters, roughly up to 200 nautical miles from shore, and
companies are already lining up to mine U.S. waters.
Vancouver-based The Metals Co asked the U.S. Department of
Commerce's National Oceanic and Atmospheric Administration for a
commercial recovery permit under the Deep Seabed Hard Mineral
Resources Act of 1980 to operate in part of the Pacific Ocean
between Hawaii and Mexico known as the Clarion-Clipperton Zone.
The application was timed to coincide with a Tuesday hearing
on deep-sea mining by a U.S. House of Representatives
subcommittee at which Gerard Barron, CEO of The Metals Co,
testified.
"America has an urgent need for critical minerals. It needs
to secure these metals," said Barron, who estimated the company
could extract more than 1 billion nodules containing manganese,
copper, nickel and cobalt that would supply U.S. needs for
decades.
Glencore ( GLCNF ) has agreed to buy metals the company
extracts from the seabed.
The Metals Co expects an initial determination for whether
the commercial application meets U.S. regulatory requirements
within 60 days, after which an environmental and technical
review of the full application would commence. It also applied
for two exploration licenses in the zone.
Representatives for NOAA were not immediately available to
comment.
Greenpeace's Louisa Casson said the application would be
remembered as an act of disregard for international law and
scientific consensus and encouraged other governments to defend
international rules and cooperation against "rogue" deep-sea
mining.
Shares of The Metals Co lost 1.7% to $3.25 in Tuesday
afternoon trading.
HEARING
The congressional hearing was organized by Republicans, many
of whom support the nascent deep-sea mining industry.
"(It) can significantly help America buck the supply chain
yoke placed on us by China and re-establish mineral
independence," said Representative Paul Gosar, an Arizona
Republican.
Democrats pushed back, calling deep-sea mining uneconomical
and a form of "subsidized plunder" of the world's oceans.
"The industry's financial models are based on wildly
optimistic assumptions and fail to reflect the volatility and
reality of global mineral markets," said Representative Maxine
Dexter, an Oregon Democrat.
Privately-held Impossible Metals, which has asked
Washington to auction American Samoa's minerals, told the
hearing it had no plans to operate without conducting more
environmental testing.
An engineering expert from the Massachusetts Institute
of Technology told the hearing the effects of deep-sea mining
may not be as severe as some people have speculated but added
the practice requires robust regulation.