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Deep-sea Mining Company is the first company to request international permits from Trump

The Metals Co, a deep-sea miner, asked Tuesday for the Trump administration to approve plans to mine international seabeds. This is the first time a company has sought permission from the government to operate outside U.S. territory waters.

Last week, President Donald Trump issued an executive order to increase mining in domestic and international waters. The goal was to improve U.S. market access and to reduce China's control.

The order is a violation to international law, according to China, and it has heightened tensions between Washington, the United Nations, and the International Seabed Authority.

The world's oceans contain a large amount of polymetallic nodules, which are potato-shaped rocks that contain the building blocks of electric vehicles and electronic devices.

Deep-sea miner supporters say that it will reduce the need for large land-based mining operations, which are not always popular with local communities. Environmental groups have called for the activity to cease, warning that industrial operations at the ocean's bottom could lead to irreversible biodiversity losses.

Companies are already lined up to mine U.S. water.

The Metals Co, based in Vancouver, asked the U.S. Department of Commerce’s National Oceanic and Atmospheric Administration to issue a commercial recovery license under the Deep Seabed Hard Mineral Resources Act of 1981 for operations in a part of the Pacific Ocean known as the Clarion-Clipperton Zone between Hawaii and Mexico.

The timing of the application coincided with an hearing Tuesday on deep-sea mines by a U.S. House of Representatives Subcommittee, at which Gerard Barron of The Metals Co testified.

America urgently needs critical minerals. "It needs to secure these minerals," said Barron. He estimated that the company could remove more than one billion nodules with manganese and copper as well as nickel, cobalt, and cobalt, which would meet U.S. requirements for decades.

Glencore has agreed that it will buy metals mined from the seabed.

The Metals Co anticipates a first determination of whether the commercial application meets U.S. Regulatory requirements within 60-days, following which an environmental and technological review of the entire application will begin. The company also applied for 2 exploration licenses within the zone.

NOAA representatives were not available for immediate comment.

Greenpeace's Louisa Casson stated that the application will be remembered as a disregard for international law, scientific consensus, and encouraged other government to defend international laws and cooperate against "rogue deep-sea mines".

The Metals Co shares fell 1.7% in trading on Tuesday to $3.25.

HEARING

Republicans organized the hearing, and many Republicans support the emerging deep-sea mine industry.

Rep. Paul Gosar (a Republican from Arizona) said, "It can help America break free of the Chinese supply chain yoke and restore mineral independence."

Democrats responded by calling deep-sea mines uneconomical, and "subsidized plundering" of oceans around the world.

Maxine Dexter is an Oregon Democrat. She said, "The financial models of the industry are based on wildly unrealistic assumptions and do not reflect the volatility and realities of global mineral markets."

Impossible Metals (a private company) told the hearing that it has no plans to continue operating without further environmental testing.

A Massachusetts Institute of Technology engineering expert told the hearing that the effects of deep sea mining might not be as bad as people had thought, but said the practice needed robust regulation. (Reporting and editing by Nia William; Ernest Scheyder)

(source: Reuters)