Aspects of Estimation and Reporting of Mineral Resources of Seabed Polymetallic Nodules: a Contemporaneous Case Study
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minerals Article Aspects of Estimation and Reporting of Mineral Resources of Seabed Polymetallic Nodules: A Contemporaneous Case Study John Parianos 1,*, Ian Lipton 2 and Matthew Nimmo 2 1 Nautilus Minerals Pacific Ltd., East Brisbane, QLD 4169, Australia 2 AMC Consultants, Brisbane, QLD 4000, Australia; [email protected] (I.L.); [email protected] (M.N.) * Correspondence: [email protected] Abstract: Exploration of seabed polymetallic nodules identifies the Clarion Clipperton Zone and the Indian Ocean Nodule Field to be of economic interest. Mineral resource estimation is important to the owner of the resource (all of mankind; and managed by the International Seabed Authority; ISA) and to developers (commercial and government groups holding contracts with the ISA). The Committee for Mineral Reserves International Reporting Standards was developed for the land- based minerals industry and adapted in 2015 for ISA-managed nodules. Nodules can be sampled in a meaningful manner using mechanical devices, albeit with minor issues of bias. Grade and moisture content are measured using the established methodology for land-based minerals. Tonnage of resource is determined via the abundance of nodules in kilograms per square metre of seabed. This can be estimated from physical samples and, in some cases, from photographs. Contemporary resource reporting for nodules classify the level of confidence in the estimate, by considering deposit geology, sample geostatistics, etc. The reporting of estimates also addresses reasonable prospects for eventual economic extraction, including factors such as mining technology, the marine environment, Citation: Parianos, J.; Lipton, I.; metallurgical processing, and metals markets. Other requirements are qualified persons responsible Nimmo, M. Aspects of Estimation for estimation and reporting, site inspection, and sample chain of custody. and Reporting of Mineral Resources of Seabed Polymetallic Nodules: A Keywords: polymetallic nodules; mineral resource estimation; mineral resource reporting; CRIRSCO; Contemporaneous Case Study. seabed geology; geostatistics Minerals 2021, 11, 200. https:// doi.org/10.3390/min11020200 Academic Editor: Pedro Madureira 1. Introduction Received: 8 January 2021 The estimation and reporting of mineral resources and their exploitable subsets, e.g., Accepted: 10 February 2021 mineral/ore reserves, provide important information for the owners of the minerals, the Published: 14 February 2021 owners of groups with development rights, and other stakeholders. We report here on aspects that we found important in producing some of the first contemporary mineral Publisher’s Note: MDPI stays neutral resource estimates for polymetallic nodules. with regard to jurisdictional claims in There are extensive deposits of high-grade polymetallic nodules resting on the seabed published maps and institutional affil- within the Clarion Clipperton Zone (CCZ) in the Pacific Ocean and the Indian Ocean Nod- iations. ule Field (IONF) (Figure1; International Seabed Authority [ 1], Mukhopadhyay et al. [2]). Recent interest in developing these resources has resulted in efforts to advance questions of mineral rights (e.g., Watzel et al. [3], Toro et al. [4], Hein et al. [5]). Copyright: © 2021 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https:// creativecommons.org/licenses/by/ 4.0/). Minerals 2021, 11, 200. https://doi.org/10.3390/min11020200 https://www.mdpi.com/journal/minerals Minerals 2021, 11, 200 2 of 33 Minerals 2021, 11, x 2 of 33 FigureFigure 1. 1.Locations Locationsof of thethe ClarionClarion ClippertonClipperton Zone and Indian Ocean Nodule Nodule Field. Field. Adapted Adapted from from Andreev Andreev et et al. al. [6] [6 ]and and MatthewsMatthews et et al. al. [ 7[7]].. Rich Rich Co Co is is generally generally >0.4%, >0.4%, very very rich rich Co Co is is >0.8%, >0.8%, NiCuCoNiCuCo isis 0.7–1.7%0.7–1.7% NiNi ++ Cu,Cu, richrich Ni-CuNi-Cu isis >1.7%>1.7% NiNi + + Cu, and very rich Ni-Cu is >2.5% Ni + Cu; the fields are better constrained from sampling than the areas. Cu, and very rich Ni-Cu is >2.5% Ni + Cu; the fields are better constrained from sampling than the areas. 1.1.1.1. Mineral Owners TheseThese deposits are located on the the seabed seabed within within international international waters, waters, and and ownership ownership ofof thethe mineralsminerals cannotcannot be directly attributed to to any any particular particular nation nation (as (as is is typically typically the the casecase onon land).land). AtAt thethe UnitedUnited NationsNations inin 1972,1972, ownership ownership of of these these minerals minerals was was declared declared as “Theas “The Common Common Heritage Heritage of Mankind”,of Mankind” and, and a protracted a protracted process process of defining of defining international interna- lawtional to law manage to manage such mineralssuch minerals commenced commenced [8]. The[8]. The third third United United Nations Nations Conference Conference on theon the Law Law of theof the Sea Sea (1973–1982) (1973–1982) led led to to the the United United NationsNations ConventionConvention on on the the Law Law of of the the SeaSea (UNCLOS)(UNCLOS) of 1982 and the the agreement agreement adopted adopted by by the the General General Assembly Assembly of of the the United United NationsNations inin 19941994 relatingrelating to to the the implementation implementation of of Part Part XI XI of of UNCLOS. UNCLOS. UNCLOS UNCLOS assigns assigns the responsibilitythe responsibility to organise to organi andse and control control activities activities in “thein “the area” area” beyond beyond national national jurisdiction jurisdic- totion the to International the International Seabed Seabed Authority Authority (ISA), (ISA), especially especially regarding regarding exploration exploration and mining and ofmining the minerals; of the minerals; equitable equitable distribution distribution of the proceeds; of the proceeds; adequate adequate protection protection of the marineof the environment;marine environment; protection protection of land-based of land-based industry industry (anti-dumping (anti-dumping and and anti-competition); anti-competi- andtion); promoting and promoting development development opportunities opportunities for citizensfor citizens of developing of developing states states and and marine ma- scientificrine scientific research research [9]. State-owned [9]. State-owned or state-sponsored or state-sponsored commercial commercial enterprises enterprises can complete can preliminarycomplete preliminary research onresearch unclaimed on unclaimed seabed, andseabed, then and apply then for apply an exploration for an exploration contract, withcontract, one with condition one condition being that being they that supply they datasupply for data anarea for an of area equal of qualityequal quality that is that then reservedis then reserved for “Contractors” for “Contractors sponsored” spon bysored developing by developing states. states. TheThe ISA envisagesenvisages that qualifying entities entities will will convert convert part part or or all all of of their their exploration exploration contractscontracts to exploitationexploitation contracts and will mine, process process,, and and sell sell nodules and/or and/or their their derivedderived metal products. These These entities entities will will pay pay f fees,ees, royalties royalties,, and and taxes taxes to to the the ISA ISA and and thethe nations in in which which they they are are located located and and who who sponsor sponsor them. them. Remittances Remittances to the to ISA the will ISA will then need to be suitably dispensed to the mineral owners. The reporting of mineral Minerals 2021, 11, 200 3 of 33 resources and, in due course, mineral/ore reserves to modern international standards has thus become topical and of increasing importance (Madureira et al. [10]). It is worth noting that countries that have not signed and ratified UNCLOS do not recognise UNCLOS’s provisions. Most notably, the United States has issued its own seabed licenses for polymetallic nodules within the CCZ, albeit so far without any overlap with the ISA contracts or reserved areas (National Oceanic and Atmospheric Administration [11], Lipton et al. [12]). 1.2. Mineral Developers At the time of writing, the ISA has issued 30 exploration contracts for deep-sea minerals (polymetallic nodules, polymetallic sulphides, and cobalt-rich ferromanganese crusts (ISA [13]), including 18 for polymetallic nodules, 16 in the CCZ, one in the IONF, and, most recently, one in the Prime Crust Zone (Figure1). The contract holders are mostly national ministries or nationally owned entities, but in the case of CCZ polymetallic nodules, seven commercial entities are also included. A recent revival of commercial interest in polymetallic nodules in the CCZ (Figure2) has been driven by the improvement of metal prices in the 2000s, the expected increased demands for battery metals, the proposed release of exploitation regulations, and improve- ments in subsea technology (e.g., Sparenberg [14]). Any entity seeking or providing project financing will very likely need estimates of the mineral resources and mineral/ore reserves to be compiled and reported to modern international standards. Figure 2. Growth in seabed claims in the CCZ. Sources: International Seabed Authority (ISA) [13], National Oceanic