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Financial desperation is driving TMCs reckless push to bypass International law inbox

1 day ago

The Deep Sea Mining Campaign DSMC has condemned The Metals Companys TMC announcement that it will seek deepsea mining permits through the United States as a cynical desperate attempt to stay afloat not a credible step forward This is a company floundering under pressure and trying to buy time said Andy Whitmore Finance Advocacy Officer at the Deep Sea Mining Campaign TMCs lastminute pivot to the US system is a red flag one driven by investor panic financial stress and a complete disregard for multilateralism TMCs timing just hours before its investor earnings call and one day before the International Seabed Authority ISA is set to discuss how it will deal with a potential mining application from TMC through its sponsoring state Nauru is no coincidence This is about pressure not progress By proposing to use the US Deep Seabed Hard Mineral Resources Act DSHMRA even though the US is not party to the UN Convention on the Law of the Sea UNCLOS TMC is not only trying to apply undue pressure to the ISA but also attempting to circumvent international customary law and sidestep global scrutiny In doing so it opens itself up to a backlash from investors and customers alike Theyre waving around a potential US permit system as if its a legitimate alternative to the international process Its not Its smoke and mirrors A closer look at TMCs Q4 2024 earnings paints a picture of a company in crisis By focussing its quarterly earnings call on this news TMC downplayed core financials and the technological shifts that are reducing the need for nickel and cobalt in batteries suggesting it is struggling to maintain confidence and liquidity TMC made a loss of over US81 million last year and is still burning through cash said Whitmore Whether it survives as a company comes down to whether it can quickly obtain a licence to mine Even setting aside the political ramifications there is no guarantee of a licence nor even a hint of a timeline for mining And given the backlash theyve likely triggered they may have opened themselves up to even more insecurity said Whitmore Despite their optimism TMCs own annual report filing at the SEC admits this new US strategy introduces conflicting regulatory requirements political instability and no assurances that any commercial rights will be granted ever TMC also hinted at applying for licenses in the same areas currently linked to its Pacific sponsors Nauru and Tonga raising serious questions about transparency shared benefits and regional sovereignty If US licenses potentially overlap with ISA licenses or override Pacific partnerships what does that say about how TMC views its socalled allies This isnt about sustainability its about staying solvent says Whitmore TMC will do anything to stay solvent They have never cared about sound science good governance or the Pacific This is about money pure and simple We call on governments to reject this reckless attempt to start mining in international waters through any means More than ever it emphasises why a global moratorium on deepsea mining is the only responsible path forward The deep ocean is not a bargaining chip for failing businesses

DSMC Reporter Ib

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