Seabed mining offers new vistas for business partnerships and joint ventures among different industries in the offshore mining supply chains.
The month-long debate “to mine or not to mine” has ended inconclusively at the 28th session of the International Seabed Authority (ISA) Assembly from 28 June to 28 July 2023 in Kingston, Jamaica amid calls for a “ban /suspension/precautionary pause” on any extractive activities.
Figure Credit: eandt.theiet.org
The ‘naysayers’ vehemently argued for the protection of the oceans given that these large bodies of water are already experiencing multiple and diverse nature and human-induced challenges such as climate change, unsustainable fishing, marine pollution etc. Furthermore, any attempt to mine the seabed will have far-reaching adverse impacts on marine life and result in biodiversity loss keeping in mind that human knowledge about the deep sea ecosystems is very little.
Those in favour of seabed mining attempted to convince that energy transition is critical for sustainable development and for that a sustained supply of nickel, manganese, cobalt, and copper, is inescapable. These metals/minerals would have to be sourced from the seabed. For the time being, the representatives of the ISA Member States and other stakeholders have returned home to mull over the issue of seabed mining.
The sudden hyper-activity at the ISA is a result of the June 2021 submission by Nauru, a Pacific island nation which submitted an application for approval from the ISA to commence extraction activities relying on the “two-year rule,” under which the “Council shall complete the adoption of the relevant rules, regulations, and procedures (RRPs) within two years from the submission”. The two-year deadline expired on 9 July 2023, but the ISA Council, a 36-member body executive arm responsible for approving contracts with private corporations and government entities, among other things, announced that it would “continue the negotiations on the draft exploitation regulations”.
Meanwhile, at home, the Government of India is all set to exploit oceanic resources. Earlier this month, the Indian Parliament (Rajya Sabha and Lok Sabha) passed the Offshore Areas Mineral (Development and Regulation) Amendment Bill 2023 which enables extraction activities in offshore areas for mineral resources.
It is true that offshore resource development has been a much-neglected area other than the oil and gas sectors. This is notwithstanding the seminal contributions made by the Geological Survey of India (GSI) which has been leading offshore scientific research and survey activities since the early sixties. The Marine and Coastal Survey Division (MCSD) of the GSI conducts numerous related activities including seabed mapping and exploration within the Indian EEZ and is supported by three ocean-going vessels.
According to the GSI, as of January 2023, nearly 95 % of India’s EEZ of 2.159 million square kilometres has been surveyed. Since 2022, the GSI has been carrying our seabed mapping in international waters and has covered over 70,000 square kilometres till December 2023 for “generation of baseline data along with the search for possible mineral occurrences in the Ninety East Ridge near the Equator, Indian Ocean and the Laxmi Basin (Block-I, II and III), Arabian Sea by deploying its vessels”.
The Indian EEZ is endowed with 1,53,996 million tonnes of live mud particularly off Gujarat and Maharashtra coasts, and 745 million tonnes of construction-grade sand has been found along the Kerala coast. The Bay of Bengal coast (Odisha, Andhra Pradesh and Tamil Nadu) and the Arabian Sea coast (Maharashtra and Kerala) are rich in heavy mineral and Polymetallic Ferro-Manganese nodules are available in the Andaman Sea and waters off Lakshadweep islands.
Polymetallic nodules (Copper, Cobalt, Nickel, Manganese, Rare earth, etc.) are particularly important to support India’s mission to promote the use of clean energy. In November 2022, during the G20 summit in Indonesia Prime Minister Narendra Modi told the participating countries that by 2030, half of India’s electricity will be “generated from renewable sources,”
The Offshore Areas Mineral (Development and Regulation) Amendment Bill 2023, among many issues, has introduced a number of initiatives including the “auction” of offshore mineral exploration sites and mining rights to companies, including from the private sector, thus creating a level playing field for business competition. The Bill provides for two types of operating rights through auction to the private sector (a) production lease and (b) composite license. It merits mention that the provision for “renewal of production leases has been scrapped with a 50-year lease period to remove uncertainty for operators” which will “give confidence to investors by bringing in transparency and fair play,”
Seabed mining offers new vistas for business partnerships and joint ventures among different industries in the offshore mining supply chains. For instance, lifting of the extracted ore and carrying it to storage sites ashore is an opportunity for the maritime transportation sector. Similarly, environmental impact assessment, and restoration techniques when needed is a unique industry. Likewise, Industry 4.0 technology developers have opportunities to support Marine Spatial Planning (MSP), bio-remediation, bio-prospecting, and a variety of other seabed mining sectors.
This article was published earlier in kalingainternational.com
Feature Image Credit: euronews.com
