Deep sea minerals positioned as supplemental source amid supply constraints

Rising demand for critical minerals is being driven by structural changes in the global energy system, including electrification, decarbonization and expansion of digital infrastructure. These trends are increasing reliance on minerals such as copper, cobalt, nickel, manganese, graphite and rare earth elements (REEs). At the same time, terrestrial supply sources are facing declining ore grades, environmental and social constraints and supply concentration risks.

Seabed mineral resources, particularly polymetallic nodules located in the Clarion Clipperton Zone (CCZ) in the Pacific Ocean and other regions such as the Cook Islands, are being evaluated as a potential supplementary source of supply. These nodules contain multiple critical minerals within a single ore body and have been studied for decades.

Recently, Canadian Mining Journal spoke with James Deckelman, CEO of Deep Sea Minerals Corp., regarding the role of deep sea minerals, project development strategies, cost structures, regulatory frameworks and sector outlook.

Q: Could deep sea minerals become an important part of solving the global supply challenge?

A: Deep sea minerals represent a potential component of the overall solution. Multiple industry participants are active in this space, including companies with exploration acreage in the CCZ, where seabed mineral resources have been studied for several decades.

The global energy system is undergoing a structural transition from reliance on fossil fuels — including coal, oil and gas — toward systems that depend on critical minerals, including copper, cobalt, nickel, manganese, graphite and REEs.

Deep Sea Minerals Corp. is in the process of applying for exploration licenses in the CCZ and other Pacific regions, including the Cook Islands. Planned activities include exploration, potential test mining and possible transition to commercial recovery.

Demand for these materials is increasing significantly. Estimates from the International Energy Agency (IEA) indicate that the market value of critical minerals could increase by approximately 30% to 40% by 2030 and continue growing toward 2040.

Critical minerals are required for energy systems. Wind energy systems require copper and cobalt. Solar systems require copper, cobalt and manganese. These materials are present in polymetallic nodules, which concentrate multiple metals within a single seabed orebody.

Terrestrial sources are facing multiple constraints. Ore grades are declining. Environmental and social opposition to land-based mining is increasing. Production levels for certain minerals, including copper, are stable or declining in key producing regions such as North America and South America. A recent assessment indicates that approximately 293 new terrestrial mines would be required by 2030 to meet projected demand for battery minerals alone. This is not considered practical. As a result, terrestrial sources are unlikely to meet projected demand independently. Deep sea minerals are expected to become an increasingly important supplementary source.

Q: What are your concerns regarding operating costs and what are the key technological challenges?

A: Operating expenditures (OpEx) are expected to be high and comparable to deepwater oil and gas developments. Capital expenditures (CapEx), particularly at the processing stage, are also significant.

Estimated cost ranges include tens of millions of dollars for exploration, hundreds of millions of dollars for production development and billions of dollars for processing infrastructure. Despite these cost levels, full-cycle project economics may be compelling. Economic studies conducted by industry participants, including pre-feasibility assessments, indicate strong financial metrics, including high net present value (NPV), internal rate of return (IRR) and EBITDA (earnings before interest, taxes, depreciation, and amortization) margins.

The risk profile differs from oil and gas. Polymetallic nodules are located on the seabed surface, are unattached, visible, and inert. Resource quantification can be conducted with a high degree of accuracy, and recovery efficiency may approach 100%. In contrast, oil and gas reservoirs are located kilometers below the seabed and require remote imaging, which introduces higher levels of uncertainty during exploration and development.

Technological development is focused on the following areas:

Harvesting systems: Advancements are being made in seabed collection technologies. These systems are being developed to improve efficiency and reduce environmental impact.

Environmental management: Key concerns include sediment plume generation and its potential impact on benthic organisms and marine habitats. Technology developers are working to manage and mitigate these effects.

Processing technologies: While processing methods exist for individual metals, optimized processing systems specifically designed for polymetallic nodules are still under development.Industry participants, including technology developers and operators, are advancing these areas, with some pilot processing initiatives underway.

Q: What are your views on regulatory developments and bypassing the International Seabed Authority (ISA)?

A: The ISA has historically managed seabed resources in international waters outside of exclusive economic zones (EEZs). Its role has included resource management, environmental protection, promotion of scientific research and ensuring equitable access. The ISA has performed this role effectively over several decades. However, regulatory progress related to commercial exploitation has been slow.

Recent developments include the presentation of revised draft regulations on resource exploitation by the ISA Secretary General at a council meeting in Kingston, Jamaica. These draft regulations aim to establish a framework for responsible and sustainable resource development. This represents a step toward enabling commercial activity while maintaining environmental and governance standards.

In parallel, alternative regulatory mechanisms are emerging. In the U.S., the National Oceanic and Atmospheric Administration (NOAA) is considering frameworks that would allow combined exploration licenses and commercial recovery permits. These would apply to international waters outside EEZs. Under current ISA regulations, provisions for commercial recovery have been limited. The NOAA framework would enable both exploration and exploitation under a consolidated permitting system.

Deep Sea Minerals Corp. is pursuing exploration licenses under this alternative mechanism, including applications for areas within the CCZ. These developments are shaping the regulatory landscape and may accelerate project advancement.

Q: How do you see the sector progressing over the next five to 10 years?

A: The sector is advancing rapidly across multiple dimensions. First, demand for critical minerals is increasing because of the energy transition requirements, defence sector needs, clean technology development and growth in artificial intelligence (AI) and cloud computing. Additionally, Terrestrial supply is constrained by declining ore grades, supply disruptions, export controls and geographic concentration of production. Production of key minerals such as cobalt and copper is concentrated in specific regions, creating supply chain vulnerabilities, particularly for the U.S. Moreover, government policy support is increasing. In the U.S., an executive order issued in April 2025 designated critical minerals as a national security priority. Seabed harvesting technologies are also advancing, with increased focus on environmental performance. Processing technologies are evolving, although further development is required. Several initiatives are underway, including strategic stockpiling of critical minerals (e.g., Project Vault, valued at approximately $12 billion) and strategic partnerships between countries (e.g., U.S. and Cook Islands). Finally, market conditions are changing significantly. We mentioned he IEA estimates for critical mineral market value earlier. Investment levels are also increasing. Estimates suggest that approximately $3 trillion could be invested in sectors related to AI, data centers and cloud infrastructure over the next five years. These sectors require large volumes of critical minerals for electrical infrastructure (copper) and battery systems (cobalt, nickel and manganese). Capital is flowing into the sector from governments, institutions, exchange-traded funds (ETFs) and other investment vehicles focused on critical minerals. These factors are expected to continue driving sector growth.

Q: What milestones would indicate that deep sea mining has become a viable part of the global mining industry?

A: Key indicators of sector viability include the following:

1. Regulatory clarity: Establishment of clear frameworks for exploration and commercial recovery, including implementation of ISA regulations and alternative permitting systems.

2. Technology validation: Demonstration of reliable, efficient, and environmentally responsible seabed harvesting systems.

3. Processing capability: Development of scalable, optimized processing technologies for polymetallic nodules.

4. Commercial deployment: Progression from exploration to test mining and commercial-scale operations.

5. Capital deployment: Continued investment from governments, institutions, and private sector participants.

6. Strategic integration: Integration of seabed minerals into global supply chains for energy, defence and technology sectors. 

Watch a video of the interview at
https://youtu.be/0mjLYdAUHLI?si=9rd–pcl-IAphcxm