Apr 26, 2021

Battery metal rush pits miners against marine biologists

DeepGreen
SeafloorMining
BatteryMetals
InternationalSeabedAuthority
4 min
International Seabed Authority is set to announce regulations for the seafloor mining of polymetallic nodules

Controversial plans to mine the ocean floor face a key test this year when a United Nations body unveils rules that could spur the exploitation of hundreds of billions of dollars of battery metals.

Seafloor Mining

The International Seabed Authority is preparing to pass regulations in July that could trigger a rush to extract metals needed to power the electric-vehicle revolution, reports Bloomberg. Environmentalists say that would endangerfrgile marine ecosystems and fear the ISA is too closely aligned with the emergent mining industry. The conflict exposes the complex trade-offs nations face to survive on a warming planet.

“It is a grand challenge of our time to reconcile humanity’s opposing interests in acquiring ocean resources - food, minerals and energy - with protecting these habitats,” said Will Homoky, a biochemist at the U.K.’s University of Leeds, who’s helped collect the environmental data being analyzed by miners and regulators.

A half-century after the Central Intelligence Agency first piqued interest in undersea mining while covertly salvaging a Soviet nuclear submarine with the help of Howard Hughes, the industry is back in the spotlight. The need to supply emissions-free vehicles has put the focus three kilometers (1.9 miles) down in the Pacific Ocean, where cobalt and nickel reserves dwarf those found in the Democratic Republic of Congo and Indonesia, the biggest terrestrial producers of the two metals.

A European research ship left San Diego in April to test mining equipment in the Clarion Clipperton Zone: an expanse of ocean between Hawaii and Mexico that’s as big as the continental U.S. Its seabed is littered with billions of tons of 

manganese nodules — fist-sized rocks formed over thousands of years, which are filled with nickel and cobalt needed for lithium-ion batteries.

DeepGreen Metals

Another vessel owned by A.P. Moller-Maersk A/S also departed this month to collect scientific data for DeepGreen Metals, a Vancouver-based company that acquired the right to explore a patch of ocean floor the size of South Africa from the Pacific island nations of Nauru, Kiribati and Tonga.

“It’s a pivotal time,” said DeepGreen Chief Executive Officer Gerard Barron. The area of ocean DeepGreen has explored contains battery-mineral reserves to power 280 million plug-in cars, he said.

Valued through a blank-check company merger at $2.9 billion last month, DeepGreen is backed by Glencore Plc and Allseas Group SA. It’s just one of a new generation of ocean miners that include Lockheed Martin Corp., China Minmetals Corp. and Belgium’s Deme Group, which used a deep-sea mining robot on April 20 to retrieve minerals for the first time.

Previous attempts to mine the ocean depths, including the CIA’s Summa Corp. and Deep Sea Ventures, stalled in the 1970s. More recently, Nautilus Minerals Inc. left most investors out of pocket and incensed environmentalists by threatening to destroy coral reefs in the waters off Papua New Guinea.

Some scientists remain skeptical about the environmental trade-off being presented by miners and highlight the risks to marine ecosystems.

“It is a false dichotomy being proposed by the industry that if we want renewable energy and electric car batteries then we have to mine the deep sea,” said Lisa Levin, a scientist at the Scripp’s Institution of Oceanography in San Diego.

There is uncertainty over how sediment plumes kicked up by mining the seabed will spread, potentially changing ocean chemistry and harming fish. Research has also shown that disturbances to the ocean floor have a lasting impact almost three decades later.

While sea-floor deposits of cobalt and nickel potentially could clear bottlenecks faced by battery makers, concerns about the environmental risks prompted BMW AG, Alphabet Inc.’s Google and Samsung SDI Co. to say last month that they’re not yet willing to buy metals mined from the ocean until research shows that such activity is benign.

World Wildlife Fund

The World Wildlife Fund is calling for a moratorium, while Greenpeace is threatening to disrupt deep-sea mining. Ocean ecosystems are already under mounting strain from acidification, plastic pollution and coral extinction.

Much of the research into the ocean abyss over the past decade has been funded by miners, who are coordinating with regulators to produce rules that make projects viable and protect the marine ecosystem. Their close relationship means the ISA’s primary objective has effectively become opening up deep-sea mining, according to Levin.

Miners will be subject to annual reporting requirements and independent monitoring to verify that they’re adhering to environmental regulations, according to an ISA statement in response to questions. The body was established in 1994 under the UN’s Convention on the Law of the Sea to ensure the minerals located in international waters are only tapped for the benefit of humanity.

Increasing tensions between environmentalists and the mining industry mean the regulations announced in July by the Kingston, Jamaica-based ISA will be scrutinized by both sides.

DeepGreen’s Barron, a veteran of the failed Nautilus venture, promises investors profit margins of more than 60% from operations that could start producing metal from 2024. He says talks with Detroit carmakers about potential long-term contracts have started.

Others remain more cautious, and not only about the environmental impact.

“As a concept it looks interesting,” said Grant Sporre, a mining analyst at Bloomberg Intelligence. “But I would like to see some trial results - both in mining and processing - before I get too excited.”

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Jun 12, 2021

How BHP is addressing climate change

BHP
Sustainability
Climate Change
Decarbonisation
2 min
BHP's Fiona Wild, VP for Sustainability and Climate Change, explains how the mining major is tackling climate change

The materials BHP provides are central to modern life and the company is constantly evolving its approach to continue to deliver them sustainably into the future.

BHP is tackling climate change

BHP has laid out a comprehensive series of metrics, targets and goals...

"We have committed to holding management to account through a direct linkage of climate-related targets and goals to executive remuneration. And we have affirmed our commitment to advocate for public policy in pursuit of global decarbonisation.

"We will remain alert to technological, political and societal developments that may indicate changes to our signposts and the development of new uncertainties for our portfolio analysis. We will continue to monitor developments and review our approach as necessary, to respond to evolving approaches to climate change and climate-related disclosures."

Fiona Wild, Vice President, Sustainability and Climate Change

Fiona leads the design and implementation of our global climate change strategy, including activities in the areas of mitigation, adaptation, portfolio evaluation, stakeholder engagement and low emissions technology. 

BHP's purpose and strategy

"Our iron ore and metallurgical coal create the steel that builds cities and makes renewable energy infrastructure possible; our copper is needed for electrical appliances and wind turbines; our oil powers mobility; our natural gas and energy coal provide energy and heat; and our nickel enables the development of storage solutions for intermittent wind and solar power. And looking to the future, potash has the potential to support more efficient and sustainable agriculture by making crops more productive.

In 2020, BHP published its Climate Change Report 2020, a special publication designed for a more detailed discussion of our approach to identifying and managing climate-related risks and opportunities, which aligns with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. It outlines its successes, learnings and plans for future initiatives.

BHP

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