The economics of mining seabed manganese nodules: A case study of the Indian Ocean nodule field

Mukhopadhyay, Ranadhir; Naik, Sankalp; Souza, Shawn De; Dias, Ozinta; Iyer, Sridhar D.; Ghosh, Anil K.

doi:10.1080/1064119x.2018.1504149

Cited by 13 publications

(7 citation statements)

References 11 publications

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“…Whether deep-sea mining will yield net benefits and for whom, depends on numerous factors, including the occurrence, volume and composition of the mineral deposit to be mined, the capital and operational costs required for recovering them (especially in comparison to terrestrial mining), the development of the metal market, and whether the environmental costs of mining are considered (Jaeckel 2020;Folkersen et al 2019;Mukhopadhyay et al 2019;Van Nijen et al 2019). Any predictions of the future profitability of deep-sea mining are complicated by persisting knowledge gaps, a high level of uncertainty, and the general difficulty of expressing environmental impacts in economic terms (Folkersen et al 2019;Mukhopadhyay et al 2019;Folkersen et al 2018b). Where deep-sea mining is carried out in the Area, the profitability of deep-sea mining may also be influenced by the compensation of terrestrial-mining countries, which are negatively affected by metals obtained from deep-sea mining entering the global market, as demanded by the CHM (Christiansen et al 2019).…”

Section: Economic Considerationsmentioning

confidence: 99%

Transitioning to Sustainable Life below Water

2022

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From 2004 to 2017 he was a member and chair of the Committee of Directors. He is a fisheries biologist trained at Bochum, Hamburg and Kiel University and has worked in Antarctica, Argentina, and the Azores. Since 1991 his work has revolved around fish biology and ecology in tropical ecosystems and throughout the 1990s he was a coordinator for the bilateral co-operation in Marine Research between Brazil and Germany. His research interests lie in the wider field of "Adaptations of different life stages of fish to their environment and the consequences of climate change". This includes activities in growth and population dynamics; migration pattern of fish in coastal environments; ichthyoplankton; fisheries biology; ecology; and ecosystem responses to climate change. An important topic is his work is the ecosystem approach to fisheries management, by which he engaged for many years in the Large Marine Ecosystem community as well as the stimulation and enforcement of international cooperation and networking in marine science and governance. He is a member of the Group of Experts on Capacity Development of the Intergovernmental Oceanographic Commission of UNESCO.

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Section: Economic Considerationsmentioning

confidence: 99%

Transitioning to Sustainable Life below Water

2022

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“…The economic viability of DSM for PMNs remains unproven in practice, though this is at present due more to a prohibitive regulatory framework than pervading insurmountable technical or wider economic challenges. Multiple recent studies have suggested PMN mining in the Area is economically feasible in theory (Volkmann and Osterholt 2017 ; Roth et al 2018b ; Mukhopadhyay et al 2019 ), although calculations are made on the assumption of a single operator working with current market conditions. Roth et al ( 2018b ) note that one seabed operator may have visible effects on global copper and nickel prices, which may mean that multiple operators greatly increasing global cobalt supply could significantly reduce cobalt price to a theoretically subeconomic level.…”

Section: The Case For Deep-seabed Mining Of Pmn Depositsmentioning

confidence: 99%

Assessing the feasibility of deep-seabed mining of polymetallic nodules in the Area of seabed and ocean floor beyond the limits of national jurisdiction, as a method of alleviating supply-side issues for cobalt to US markets

Cunningham

2022

Miner Econ

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The growing importance of cobalt to the US economy has led to its categorisation as a critical mineral. Cobalt demand is increasing due to its requirement in lithium-ion batteries, which will significantly contribute to the energy transition. Supply is threatened for various reasons, primarily regarding supply chain concentrations, with the majority of the world’s cobalt originating in terrestrial deposits in the Democratic Republic of the Congo, and being refined in China. There remain environmental and ethical concerns over the present supply chain. Previous discussions around reducing cobalt’s criticality have suggested diversifying processing locations to reduce geographical and jurisdictional reliance where possible. This study assesses the viability of extracting cobalt from polymetallic nodules (PMNs) located on the deep-seabed in the Area, as an alternative strategy to reduce cobalt’s criticality. Assessments are made of the viability of PMN extraction considering ongoing barriers to introduction, contrasted with current arguments supporting PMN extraction. PMN mining offers a more stable and decentralised alternative to current cobalt supply. There exist impediments to its introduction, notably potential environmental impacts, which remain poorly understood. Technical and political restrictions must also be overcome. It is argued that the wider environmental benefits of increased cobalt supply from PMN mining may offset its detrimental environmental impacts. It is suggested that PMN mining be used in a wider strategy to improve supply security of cobalt to US markets.

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“…Infrastructural needs in a developing world, a quickly rising global middle class, and a general demand for new 'green' technologies everywhere in modern society all amount to greater demands for more key and rare metals [24]. DSM is not only portrayed by proponents as a means to secure economic growth [25] but also as the potential start of an alternate economya blue one-that could pave a way out of poverty and assist in transitioning to green technologies [26].…”

Section: Narrative 1: a Green Economy In A Blue Worldmentioning

confidence: 99%

“…According to Hein et al, [24] and others (e.g., Lodge & Verlaan [13]), the higher-grade ores and convenience of the marine mineral deposits should be compared to terrestrially sourced metals, and their potential for decreased environmental and social impacts. Metal prices have steadily increased since 2003, and alongside new technological innovations, DSM has become what might seem to be a new feasible (and final) resource frontier [26]. Demand for copper, nickel, and cobalt, under the current conventional idea of development, will continue to rapidly increase and influence the chances for developing countries to improve their quality of life [27].…”

Section: Narrative 1: a Green Economy In A Blue Worldmentioning

confidence: 99%

“…Despite the inherent uncertainties of an unproven industry, when comparing marinebased mining sites with terrestrial ones, it is argued that DSM would potentially have fewer needs for vast infrastructure and transport systems. Roads to mining sites, deforestation, large on-site buildings, and polluted nearby waterways would be avoided in the deep sea [3,24,26]. Additionally, DSM means fewer social and economic impacts on human populations with less displacement of indigenous people in close proximity to mining-sites, and hazards to personnel would be smaller or even non-existent [13].…”

Section: Narrative 1: a Green Economy In A Blue Worldmentioning

confidence: 99%

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Conflicting Narratives of Deep Sea Mining

Hallgren

Hansson

2021

Sustainability

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As land-based mining industries face increasing complexities, e.g., diminishing return on investments, environmental degradation, and geopolitical tensions, governments are searching for alternatives. Following decades of anticipation, technological innovation, and exploration, deep seabed mining (DSM) in the oceans has, according to the mining industry and other proponents, moved closer to implementation. The DSM industry is currently waiting for international regulations that will guide future exploitation. This paper aims to provide an overview of the current status of DSM and structure ongoing key discussions and tensions prevalent in scientific literature. A narrative review method is applied, and the analysis inductively structures four narratives in the results section: (1) a green economy in a blue world, (2) the sharing of DSM profits, (3) the depths of the unknown, and (4) let the minerals be. The paper concludes that some narratives are conflicting, but the policy path that currently dominates has a preponderance towards Narrative 1—encouraging industrial mining in the near future based on current knowledge—and does not reflect current wider discussions in the literature. The paper suggests that the regulatory process and discussions should be opened up and more perspectives, such as if DSM is morally appropriate (Narrative 4), should be taken into consideration.

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The economics of mining seabed manganese nodules: A case study of the Indian Ocean nodule field

Cited by 13 publications

References 11 publications

Transitioning to Sustainable Life below Water

Transitioning to Sustainable Life below Water

Assessing the feasibility of deep-seabed mining of polymetallic nodules in the Area of seabed and ocean floor beyond the limits of national jurisdiction, as a method of alleviating supply-side issues for cobalt to US markets

Conflicting Narratives of Deep Sea Mining

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