The Metals Company Photo: Facebook / The Metals Company
Deep sea mining frontrunner The Metals Company (TMC) has confirmed it will not apply for a mining license through the International Seabed Authority (ISA) in June, instead it will exclusively apply through US regulations.
It is unclear what this means for both Nauru and Tonga, who have sponsored TMC at the ISA.
However, the firm's chief executive Gerard Barron said the company would still renew its subsidiary Nauru Ocean Resources' (NORI) exploration licence.
"We will be renewing that because NORI is in full compliance. There is no legal basis on which that licence cannot be renewed," he said during the company's first quarter update of 2025.
TMC's mining application through US regulations was made possible through an executive order last month by President Donald Trump.
The company's application covers 25,000 square kilometres in the Clarion Clipperton Zone - located in the international waters in north Pacific between Hawai'i and Mexico.
Barron said the block was "not claimed by any other sovereign".
"While there is an ability to lay claim over grounds currently under license through the ISA by other countries we made a deliberate plan not to do that."
Barron added that Tonga and Nauru are supportive of TMC's moves.
However, China's Ambassador to Nauru Lu Jin said that the US trampled on the United Nations Convention on the Law of the Sea (UNCLOS) by creating a mechanism to allow for deep sea mining outside of the ISA.
During a meeting with Nauru's President David Adeang, Lu said China and Nauru should work together to safeguard Nauru's interests in deep sea mining, adding China would push the ISA to accelerate mining progress.
Greenpeace activists protesting around MV Coco, a specialised vessel collecting data for The Metals Company in November 2023. Photo: Supplied / Greenpeace / Martin Katz
Deep Sea Conservation Coalition's Phil McCabe said China's deep sea mining interest in the region is growing.
"This is the third Pacific Island country that China has spoken to on deep sea mining and looking for greater cooperation with, following the Cook Islands sealed deal on cooperation and discussions with Kiribati as well."
ISA secretary general Leticia Carvalho claimed the US had no authority to offer permits in the Clarion-Clipperton Zone.
"Circumventing the regulatory authority of the ISA not only breaches international law, but also erodes trust," Carvalho said.
Carvalho said TMC had been "very pushy" on trying to get mining rules approved at the ISA, so the company pivoting to the US was "not completely unforeseen".
"The new administration of the US aligns with a number of issues regarding employment generation, security, also regarding the fact that they're somehow behind China in possession of the minerals."
Juressa Lee with Greenpeace Aotearoa said the Trump administration is acting outside of multilateralism.
"This sets a very, very low bar and a terrible precedent for other countries, [ISA] member states and wannabe deep sea mining companies to follow."
Despite criticism, TMC's share price has quadrupled since the beginning of this year.
Barron believes the price was held back by a lack of a clear regulatory pathway, which he sees is now secure through the US regulations.
"We believe this US-based pathway offers the greatest probability of receiving a commercial permit in a timely, transparent and legally robust manner, giving us clear line of sight to responsible commercial operations."
Barron expects the commercial recovery permit to be deemed complaint prior to the end of June, TMC will then go through an environmental review if successful.
