New governance risks slowing deep-sea mining momentum

Significance

Carvalho favours a more cautious approach to deep-sea mining (DSM). Interest in its development reflects rising demand for critical raw materials (CRM) and a desire for more diversified supply sources. The commercial case for what is a technically unproven form of raw material extraction is weak, while environmental opposition is growing.

Impacts

• DSM-focused companies will struggle to retain investor interest.
• National maritime areas, rather than the international waters regulated by the ISA, may become the new focus of DSM companies.
• Slow development of DSM removes a potential competitor to land-based raw material extraction.