U.N. seabed regulator defends inquiry as deep-sea miners sue

The UN body that regulates mining in international waters has defended its authority over ocean governance after two subsidiaries of deep-sea mining firm The Metals Company (TMC) launched legal action to halt an investigation into their conduct.

Speaking at the International Seabed Authority’s (ISA) annual meeting in Kingston on Monday, secretary-general Leticia Carvalho said the regulator’s role “matters more than ever” as governments grapple with growing pressure to exploit the deep seabed for minerals needed for the energy transition.

“The deep seabed belongs to no single country and no corporation; it belongs to all of us,” Carvalho said, describing its resources as “the common heritage of humankind”.

“If we lose sight of this,” she added, “we risk repeating on the ocean floor the same injustices and destruction we still strive to remedy on land.”

The UN body that regulates mining in international waters has defended its authority over ocean governance after two subsidiaries of deep-sea mining firm The Metals Company (TMC) launched legal action to halt an investigation into their conduct.

Speaking at the International Seabed Authority’s (ISA) annual meeting in Kingston on Monday, secretary-general Leticia Carvalho said the regulator’s role “matters more than ever” as governments grapple with growing pressure to exploit the deep seabed for minerals needed for the energy transition.

“The deep seabed belongs to no single country and no corporation; it belongs to all of us,” Carvalho said, describing its resources as “the common heritage of humankind”.

“If we lose sight of this,” she added, “we risk repeating on the ocean floor the same injustices and destruction we still strive to remedy on land.”

The conflict stems from TMC’s attempt to bypass the UN process by applying for US-sponsored ocean mining permits offered last year by the Trump administration. The Canadian firm aims to become the first company to mine the seabed for minerals like nickel, rare earths and manganese used in the production of both clean energy technologies and military equipment.

Several governments, including China, condemned the move as a “violation of international law”. In response, ISA member states agreed to open an inquiry into its licence-holders – among them two of TMC’s subsidiaries – to make sure they have complied with international law. If they are ultimately found to have breached those obligations, their exploration contracts could be revoked.

In June, the two TMC subsidiaries – Tonga Offshore Mining Ltd (TOML) and Nauru Ocean Resources Inc (NORI) – filed claims against the ISA at the International Tribunal for the Law of the Sea (ITLOS), asking the court to suspend the inquiry while the case proceeds. The companies argue they are being targeted “without lawful procedural basis”, “in breach of due process”, and without “good faith”.

Environmental groups have accused The Metals Company of using legal tactics to block the investigation into its subsidiaries.

“We find ourselves in this Orwellian situation where these companies are trying to effectively get an injunction against the ISA from continuing its inquiry,” said Louisa Casson, who leads Greenpeace’s global campaign against deep-sea mining.

“The stakes are so high and that’s why we’re seeing this pretty extraordinary move to try to get an injunction against the ISA,” she added.

Mining the deep ocean floor

The ISA has been negotiating a mining code for the deep ocean floor for over 12 years without success. Nearly 40 governments, including the UK, France and Germany, have called for a moratorium or precautionary pause on deep-sea mining until there is sufficient scientific evidence that it can proceed without causing serious harm to marine ecosystems.

Rather than wait for the UN process, industry frontrunner, The Metals Company, decided to apply for US permits offered by the Trump administration last year. In May, the US National Oceanic and Atmospheric Administration (NOAA) certified TMC’s application to explore 120,000 square kilometers of sea floor.

The firm wants to mine an area in the Pacific known as the Clarion-Clipperton Zone, which holds critical minerals inside potato-sized rocks found in the deep ocean floor known as polymetallic nodules. The minerals like manganese, nickel and rare earths are used in clean energy technologies like batteries and wind turbines.

But the area is also a little-understood ecosystem inhabited by thousands of unnamed species. The International Union for Conservation of Nature (IUCN), the world’s largest environmental network, says mining this area would threaten the existence of over half of all molluscs reliant on deep-sea vents.

Governments launch inquiry

Seeking to discourage companies from bypassing the UN process, the ISA’s member states unanimously agreed to open an inquiry into whether holders of its exploration licences complied with their contractual obligations under the UN Convention on the Law of the Sea (UNCLOS).

“The stage we’re at now is countries grappling with what they can do about this. What tools do they have to constrain this pathway that would go against international law,” Casson said.

Both NORI and TOML continue to hold ISA exploration contracts in the Clarion-Clipperton Zone. NORI’s license, however, expires later this month on July 21st and is up for review.

The inquiry is currently ongoing, but Casson said that if governments decide to cancel NORI’s license, other firms could apply for the ISA permit and compete for mining rights in the area.

“If that happens, it could really put into jeopardy TMC USA’s application (for US permits) because then suddenly that area could be open for a competing claim,” she explained. “At the moment, TMC is trying to kind of play both sides and shore up the area so that there will be no competition.”

Deep-sea mining firms push back

The cases before ITLOS are the first contentious disputes over deep-sea mining to reach the court designed for maritime disputes and the first brought directly by private contractors against the ISA. Among the companies’ legal advisers is former ISA secretary-general Michael Lodge.

Both NORI and TOML claimed that, unless the inquiry is suspended, there is a “real
and imminent risk of prejudice” that “may have significant legal and practical consequences” for
their activities.

The claim was backed by the Pacific island nation of Nauru, which has sponsored TMC’s push to mine the Clarion-Clipperton Zone and would benefit from the economic activity. The country raised “concerns on the adherence of due process with respect to the treatment of NORI”.

The mining companies allege that the ISA has singled them out among other applicants by requesting additional documentation, and that the UN auditors did not give them an opportunity to “meaningfully respond” to their concerns.

The ISA rejected those allegations as “wholly unsupported assertions”. It added that, given TMC’s application for US mining permits, it had done “what any reasonable regulator would do”: with the unanimous support of member states, it opened an inquiry simply to establish the facts.

Delay tactics

A decision from the maritime court is now expected by July 18, which has added to a “climate of significant regulatory uncertainty”, according to global law firm HSF Kramer.

As ISA countries meet in Kingston this week, the court’s president asked them “not to act in any way that could hinder any order” the court may make.

At the hearing representing the ISA, renowned human rights lawyer Philippe Sands said the deep-sea mining firms were engaging in “strategic litigation” meant to delay the inquiry and send the ISA into a years-long legal process.

“It’s a delaying tactic, and nothing would make them happier than for you to kick this into the long grass for two years while you sort out the merits. That is what they want this Tribunal, the Chamber, to do. You are being instrumentalized in this process,” Sands told the judges.