US firm completes first step in licensing process for seabed mining near Guam

By Jayvee Vallejera

Deep Sea Rare Minerals Inc., an American company, has cleared the first step in its bid to explore a portion of the seabed off Guam for polymetallic nodules mining.

The National Oceanic and Atmospheric Administration has determined that DSRM “substantially complied” with the license application requirements, giving it a “priority of right” over the target area in international waters.

DSRM has set a 2028 target year to begin extracting polymetallic nodules, depending on final regulatory approvals, technical feasibility, environmental review and financing.

The stamp of “substantial compliance,” which is part of a multi-step process under NOAA rules, means that the company's application to explore the target seabed area meets the minimum regulatory criteria to proceed to the next step of the licensing review.

DSRM’s application covers 150,000 sq.km of the seafloor within portions of the Clarion-Clipperton Zone in the Central Pacific Ocean and in areas of the Western Pacific near Guam. These regions are widely recognized for their polymetallic nodules and are located in international waters.

This area is outside Guam's exclusive economic zone, said Tony Romeo, DSRM

 founder and chief executive officer.

For areas within the Guam exclusive economic zone, the U.S. Department of the Interior’s Bureau of Ocean Energy Management has a separate leasing process.

“We do anticipate participating in that when it happens,” Romeo said in an email.

The compliance clearance determines DSRM’s position in the queue among companies applying to mine seabed resources in a specific area.

Called a “priority of right,” it means that processing DSRM’s application is now fixed according to the chronological order in which qualifying applications were filed.

As the regulatory process moves forward, DSRM said it is keeping pace with its own engineering design and operational planning.

DSRM’s exploration license application remains subject to further review, public notice and comment, environmental analysis and final agency determinations.

In November last year, DSRM started designing seabed mining equipment intended to support potential exploration and sampling activities. It said they want machines that are also environmentally responsible, efficient and that have reduced seafloor impact.

DSRM expects to begin manufacturing the deep-sea mining equipment in early summer this year. Any manufacturing, deployment, or operational activities remain subject to regulatory review, permitting and authorization, the company said.

While the issuance of the license may not be guaranteed, Romero said the company welcomes the opportunity to take the next step in the application process.

“NOAA's determination of substantial compliance marks a meaningful milestone in the regulatory process and reflects the depth of preparation behind our submission," he said.

"We look forward to continuing to engage with NOAA as we further develop our exploration and recovery plans. This is an exciting time to be part of this industry, and we're looking forward to the next steps," Romero added.

Seabed mining is fast becoming this century’s new gold rush, with the vast fields of polymetallic nodules on the ocean floor being eyed as a rich source of critical minerals essential for electrification, renewable energy and advanced manufacturing.

Polymetallic nodules contain high concentrations of cobalt and nickel, which are essential for the manufacture of batteries, electric vehicles, grid storage, and clean-energy infrastructure.

These seabed resources are valued at up to $20 trillion.

DSRM said that deep-sea mining, when developed responsibly, offers the prospect of a stable, diversified mineral supply with a smaller surface footprint than land-based operations, reduced deforestation and community displacement, and the ability to support global decarbonization goals while meeting surging demand for critical metals.

In December, NOAA announced the start of public review of exploration license applications for deep seabed mining after The Metals Company USA, LLC applied for exploration licenses targeting seabed mineral resources in the Clarion-Clipperton Zone, a vast region of the Pacific Ocean known for abundant critical minerals such as nickel, cobalt, copper and manganese. 

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