Tag Archives: phosphate mining ocean floor

Green Con Artists and their Moneyed Followers

Green investing has grown so fast that there is a flood of money chasing a limited number of viable companies that produce renewable energy, electric cars and the like. Some money managers are stretching the definition of green in how they deploy investors’ funds. Now billions of dollars earmarked for sustainable investment are going to companies with questionable environmental credentials and, in some cases, huge business risks. They include a Chinese incinerator company, an animal-waste processor that recently settled a state lawsuit over its emissions and a self-driving-truck technology company.

One way to stretch the definition is to fund companies that supply products for the green economy, even if they harm the environment to do so. In 2020 an investment company professing a “strong commitment to sustainability” merged with the operator of an open-pit rare-earth mine in California at a $1.5 billion valuation. Although the mine has a history of environmental problems and has to bury low-level radioactive uranium waste, the company says it qualifies as green because rare earths are important for electric cars and because it doesn’t do as much harm as overseas rivals operating under looser regulations…

When it comes to green companies, “there just isn’t enough” to absorb investor demand…In response, MSCI has looked at other ways to rank companies for environmentally minded investors, for example ranking “the greenest within a dirty industry”….

Of all the industries seeking green money, deep-sea mining may be facing the harshest environmental headwinds. Biologists, oceanographers and the famous environmentalist David Attenborough have been calling for a yearslong halt of all deep-sea mining projects. A World Bank report warned of the risk of “irreversible damage to the environment and harm to the public” from seabed mining and urged caution. More than 300 deep-sea scientists released a statement today calling for a ban on all seabed mining until at least 2030. In late March 2021, Google, battery maker Samsung SDI Co., BMW AG and heavy truck maker Volvo Group announced that they wouldn’t buy metals from deep-sea mining.

[However the The Metals Company (TMC) claims that deep seabed mining is green].

Excerpts from Justin Scheck et al, Environmental Investing Frenzy Stretches Meaning of ‘Green’, WSJ, June 24, 2021

A Brand New World: Mapping the Ocean Floor

Mapping of the ocean floor may expand under an order signed by President Donald Trump on in  November, 2019 to create a federal plan to explore U.S. coastal waters. The announcement…comes amid growing international interest in charting the sea floor as unmanned aquatic drones and other new technologies promise to make the work cheaper and faster. The maps, also created by ship-towed sonar arrays, are crucial to understanding basic ocean dynamics, finding biological hot spots, and surveying mineral, oil, and gas deposits.

But much of the ocean floor remains unmapped; an international campaign called Seabed 2030 aims to map all of it in detail by 2030. Such maps cover just 40% of the 11.6 million square kilometers in the U.S. exclusive economic zone, which extends 320 kilometers from the coasts of all U.S. states and territories—an area larger than the total U.S. land mass. Today, those maps are a hodgepodge drawn from government, industry, and academic research, says Vicki Ferrini, a marine geophysicist at Columbia University’s Lamont-Doherty Earth Observatory in Palisades, New York. The federal plan, she says, could be a “game changer.”

Excerpts from  United States to Survey Nearby Sea Floor, Science, Nov. 29, 2019, at 6469

Mining the Ocean: the Fate of Sea Pangolin

A snail that lives near hydrothermal vents on the ocean floor east of Madagascar has become the first deep-sea animal to be declared endangered because of the threat of mining.  The International Union for Conservation of Nature (IUCN) added the scaly-foot snail (Chrysomallon squamiferum) to its Red List of endangered species on 18 July, 2019 — amid a rush of companies applying for exploratory mining licenses…. The scaly-foot snail is found at only three hydrothermal vents in the Indian Ocean.  Two of those three vents are currently under mining exploration licences,…Even one exploratory mining foray into this habitat could destroy a population of these snails by damaging the vents or smothering the animals under clouds of sediment..

Full-scale mining of the deep seabed can’t begin in international waters until the International Seabed Authority (ISA) — a United Nations agency tasked with regulating sea-bed mining — finalizes a code of conduct, which it hopes to do by 2020….The biggest challenge to determining whether the scaly-foot snail warranted inclusion on the Red List was figuring out how to assess the extinction risk for animals that live in one of the weirdest habitats on Earth…

When the IUCN considers whether to include an organism on the Red List, researchers examine several factors that could contribute to its extinction. They include the size of a species’ range and how fragmented its habitat is…The IUCN settled on two criteria to assess the extinction risk for deep-sea species: the number of vents where they’re found, and the threat of mining.   In addition to the scaly-foot snail, the researchers are assessing at least 14 more hydrothermal vent species for possible inclusion on the Red List.

Excerpts from Ocean Snail is First Animal to be Officially Endangered by Deep-Sea Mining, Nature, July 22, 2019

On Sea Pangolins see YouTube video

The Expoitation of Seabed

Patania One became in May 217the first robot in 40 years to be lowered to the sea floor in the Clarion Clipperton Zone (CCZ), about 5,000 metres beneath the Pacific ocean…There it gathered data about the seabed and how larger robots might move carefully across it, sucking up valuable minerals en route.

The CCZ is a 6m square-kilometre (2.3m square-mile) tract between two of the long, straight “fracture zones” which the stresses of plate tectonics have created in the crust beneath the Pacific. Scattered across it are trillions of fist-sized mineral nodules, each the result of tens of millions of years of slow agglomeration around a core of bone, shell or rock. Such nodules are quite common in the Pacific, but the CCZ is the only part of the basin where the International Seabed Authority (ISA), which regulates such matters beyond the Exclusive Economic Zones (EEZs) of individual countries, currently permits exploration. Companies from Japan, Russia, China and a couple of dozen other countries have been granted concessions to explore for minerals in the CCZ. The ISA is expected to approve the first actual mining in 2019 or 2020.

This could be big business. James Hein of the United States Geological Survey and colleagues estimated in a paper in 2012 that the CCZ holds more nickel, cobalt and manganese than all known terrestrial deposits of those metals put together. The World Bank expects the battery industry’s demand for these, and other, minerals to increase if the transition to clean energy speeds up enough to keep global temperatures below the limits set in the Paris agreement on climate.

One of the firms attracted by this vast potential market is DEME, a Belgian dredging company ….Korea, Japan and China all have state-run research projects looking to dredge nodules from the deep sea with robots: “It really is a race,” says Kris Van Nijen, who runs DEME’s deep-sea mining efforts…

[It was expected]that deep-sea mining would develop rapidly by the 1980s. A lack of demand (and thus investment), technological capacity and appropriate regulation kept that from happening. The UN Convention on the Law of the Sea (UNCLOS), which set up the ISA, was not signed until 1982. (America has still not ratified it, and thus cannot apply to the ISA for sea-floor-mining permits.)

Mr Van Nijen and his competitors think that now, at last, the time is right. DEME is currently building Patania Two, or P2… In order to satisfy the ISA, this new machine does not just have to show it can harvest nodules; it also has to show that it can do so in an environmentally sensitive way. Its harvesting will throw up plumes of silt which, in settling, could swamp the sea floor’s delicate ecosystem. A survey of CCZ life in 2016 found a surprising diversity of life. Of the 12 animal species collected, seven were new to science…

The CCZ is not the only sea floor that has found itself in miners’ sights. Nautilus, a Canadian firm, says it will soon start mining the seabed in Papua New Guinea’s EEZ for gold and copper, though at the time of writing the ship it had commissioned for the purpose sits unfinished in a Chinese yard. A Saudi Arabian firm called Manafai wants to mine the bed of the Red Sea, which is rich in metals from zinc to gold. There are projects to mine iron sands off the coast of New Zealand and manganese crusts off the coast of Japan. De Beers already mines a significant proportion of its diamonds from the sea floor off the coast of Namibia, although in just 150 metres of water this is far less of a technical challenge.

If the various precautions work out, the benefits of deep-sea mining might be felt above the water as well. Mining minerals on land can require clearing away forests and other ecosystems in order to gain access, and moving hundreds of millions of tonnes of rock to get down to the ores. Local and indigenous people have often come out poorly from the deals made between miners and governments. Deep-sea mining will probably produce lower grade ores, but it will do so without affecting human populations.

Undersea Mining: Race to the Bottom, Economist, Mar. 10, 2018

Mining Rights on the Ocean Floor: phosphate

A persistent fear of diminishing phosphorus reserves has pushed mining companies to search far and wide for new sources. Companies identified phosphate deposits on the ocean floor and are fighting for mining rights around the world….

From April 2007 to August 2008, the price of phosphate, a necessary ingredient in fertilizer, increased nearly 950 percent, in part due to the idea that phosphate production had peaked and would begin diminishing. Before prices came back down, prospectors had already begun looking for deep sea phosphate reserves around the world.

Since then, the fledgling seabed phosphate industry has found minimal success. While several operations are proposed in the Pacific islands, New Zealand and Mexico rejected attempts at offshore phosphate mining in their territory.  This means southern African reserves – created in part by currents carrying phosphate-rich water from Antarctica – are the new center of debate.

Namibia owns identified seabed phosphate deposits, and the country has recently flip-flopped about whether to allow mining. A moratorium was in place since 2013, but in September 2016 the environmental minister made the controversial decision to grant the necessary licenses. Since then, public outcry forced him to set those aside…

Three companies, Green Flash Trading 251 (Pty) Ltd, Green Flash 257 (Pty) Ltd and Diamond Fields International Ltd., hold prospecting rights covering about 150,000 square kilometers, roughly 10 percent, of  South Africa’s marine exclusive economic zone…[G]reen Flash companies received drill samples, which showed current prices could not sustain seabed phosphate mining.

This leaves Diamond Fields as the only remaining player in South African waters. The company announced in a January 2014 press release that it received a 47,468 square kilometer prospecting right to search for phosphate.  According to information the company published summarising its environmental management plan, prospecting would use seismic testing to determine the benthic, or seafloor, geology. If mining commenced, it would take place on the seafloor between 180 and 500 meters below the surface.  “A vital and indisputable link exists between phosphate rock and world food supply,” the company stated, citing dwindling phosphate reserves…

Environmentalists argue that not only would phosphate mining destroy marine ecosystems, but it would also lead to continued overuse of fertilizers and associated pollution. They call for increased research into phosphate recapture technology instead of mining.“We could actually be solving the problem of too much phosphates in our water and recapturing it. Instead we’re going to destroy our ocean ecosystems,” John Duncan of WWF-SA said.

The act of offshore mining requires a vessel called a trailing suction hopper dredger, which takes up seafloor sediment and sends waste back into the water column.  “It amounts to a kind of bulldozer that operates on the seabed and excavates sediment down to a depth of two or three meters. Where it operates, it’s like opencast mining on land. It removes the entire substrate. That substrate become unavailable to fisheries for many years, if not forever,” Johann Augustyn, secretary of the South African Deep-Sea Trawling Industry Association, said….

Mining opponents also worry offshore mining would negatively impact food production and economic growth. Several thousand subsistence farmers live along South Africa’s coast, and the country’s large-scale fishing industry produces around 600,000 metric tonnes of catch per year.

“[Mining] may lead to large areas becoming deserts for the fish populations that were there. If they don’t die off, they won’t find food there, and they’ll probably migrate out of those areas,” Augustyn said.

South Africa is one of only three African nations – along with Namibia and Seychelles – implementing marine spatial planning. This growing movement toward organised marine economies balances competing uses such as oil exploration, marine protected areas and fisheries….[and mining.]

Excerpts from Mark Olalde, Phosphate Mining Firms Set Sights on Southern Africa’s Sea Floor, IPS, Nov. 17, 2016