On the 23rd (local time), U.S. President Donald Trump signed an executive order in the Oval Office of the White House in Washington, D.C. The [Financial News] reported that the U.S. is actively preparing to mine minerals from the seabed.
On the 24th (local time), Trump signed an executive order to expedite the development of seabed mining and mineral processing. This decision was made to bypass regulations from the International Seabed Authority (ISA), a United Nations organization, with Trump warning that China could monopolize seabed resource mining and processing if the U.S. fails to secure essential minerals needed for national security.
The Wall Street Journal (WSJ) reported that this executive order indicates the U.S.’s first foray into deep-sea resource development. Trump emphasized the necessity of minerals for infrastructure, advanced defense technology, energy systems, and manufacturing.
Environmental groups have previously opposed the development of the deep sea, the last undeveloped area, but Trump and some in the industry argue that resources like cobalt, nickel, and manganese are essential for the production of renewable energy, steel, and defense materials.
Furthermore, with the U.S. actively moving forward with development, companies like The Metals Company (TMC) in Canada are expected to benefit. TMC announced last month that it would proceed with mining regardless of international mining bans.
The company has been in discussions with the U.S. White House for several months, and CEO Gerard Barron explained to the U.S. Congress last fall that deep-sea mining is a way to cut off China’s supply chain, according to the Journal.
TMC is expected to commence mining through its U.S. subsidiary within a year.
Based in Kingston, Jamaica, the ISA has been facing backlash from some countries and mining companies due to its failure to finalize mining regulations despite various negotiations.
In addition to TMC, Norway, India, and the Cook Islands are showing interest in deep-sea mining as a promising new industry.
U.S. Secretary of the Interior Doug Burgum stated at a conference hosted by the American Energy Research Institute on the 23rd that the Trump administration is reviewing investments in resource development and processing companies to reduce resource dependence on countries like China. He emphasized the need for equity investment, noting that U.S. companies are unable to compete as China releases minerals at a low cost.