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Study to Investigate State of Knowledge of Deep Sea Mining

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Study to Investigate State of Knowledge of Deep Sea Mining Study to investigate the state of knowledge of deep-sea mining Final Report under FWC MARE/2012/06 - SC E1/2013/04 Client: European Commission - DG Maritime Affairs and Fisheries Rotterdam/Brussels, 28 August 2014 Study to investigate the state of knowledge of deep-sea mining Final Report under FWC MARE/2012/06 - SC E1/2013/04 Client: European Commission - DG Maritime Affairs and Fisheries Acknowledgements This project has been carried out under the leadership of Ecorys with support from its partners MRAG Ltd and GRID Arendal, and its specialist subcontractors GEOMAR (Helmholtz Centre for Ocean Research), TU Delft, Seascape Consultants Ltd, Deep Seas Environmental Solutions Ltd. and the National Oceanography Centre in Southampton. Their contributions to the study have been invaluable. We would also like to thank the Steering Group members of the European Commission for their genuine support and guidance throughout the course of this study. Finally, and most importantly, we would like to thank all the organisations, private enterprises, research centres, national authorities and NGOs that assisted us in exploring the possibilities within this emerging field and contributed to this study by way of participating in consultations and by exchanging views and opinions. Rotterdam/Brussels, 28 August 2014 About Ecorys and Consortium Partners Consortium Lead Partner ECORYS Nederland BV P.O. Box 4175 3006 AD Rotterdam The Netherlands T +31 (0)10 453 88 00 F +31 (0)10 453 07 68 E [email protected] Registration no. 24316726 www.ecorys.com 2 FGP96656 JG|OV Table of contents List of abbreviations 10 Preface 14 Executive Summary 15 1 Introduction 29 1.1 Background and objective 29 1.2 Main drivers for deep-sea mining 30 1.3 Study objective and scope 31 2 Geology 33 2.1 Summary 33 2.2 Types of deposits found on the seabed 34 2.2.1 Seafloor Massive Sulphides 34 2.2.2 Polymetallic nodules 37 2.2.3 Polymetallic crusts 38 3 Legal aspects 43 3.1 Summary 43 3.2 Introduction 44 3.3 International law 45 3.4 European Union law 49 3.5 National legislation 50 4 Technology 55 4.1 Summary 55 4.2 Deep-sea mining value chain 56 4.3 Main components of each value chain step and their TRL levels 60 4.4 Critical components 62 4.5 Ongoing EU research efforts 66 4.6 Position of the EU industry 68 4.7 Integral environmental impact 70 5 Ongoing and planned activity 73 5.1 Summary 73 5.2 Introduction 74 5.3 Ongoing projects 75 5.3.1 Projects in The Area 75 5.3.2 Projects in areas under costal state jurisdiction 76 5.3.3 European Innovation Partnerships 79 5.4 Characteristics of the ongoing projects and applications for projects 80 5.4.1 Water depth 80 5.4.2 Size of expected deposits 80 5.4.3 Companies and governments involved: Main contractors 81 5.4.4 Obstacles 84 3 Study to investigate the state of knowledge of Deep-sea mining 5.4.5 Expected future developments 84 5.5 Conclusions 85 6 Environmental implications 89 6.1 Summary 89 6.2 Approach 90 6.2.1 Overview of environmental concerns 91 6.3 Seafloor massive sulphides 92 6.4 Polymetallic nodules 95 6.5 Polymetallic crusts 98 6.6 Findings 100 6.6.1 Overview of findings 100 6.6.2 Steps of the Mining Process that Impact the Environment 102 6.7 Environmental Impacts Unique to Mineral Type 102 7 Supply and demand 112 7.1 Summary 112 7.2 Most relevant metals in deep-sea mining deposits 113 7.3 Key commodity trends and market structure 114 7.3.1 Market structure 115 State control and “resource nationalism” in terrestrial mining 117 7.3.2 Commodity trends/developments 120 7.4 Main components of assessing the economic viability of deep-sea mining 123 7.4.1 Project characteristics 124 7.4.2 Costs 127 7.4.3 Revenues 131 7.4.4 Economic viability of deep sea mining 133 8 Comparison with terrestrial mining and recycling 136 8.1 Summary 136 8.1 Comparison with land-based mining 137 8.2 The potential of recycling as an alternative to deep-sea mining 141 8.3 The environmental impacts of recycling 151 8.4 Requirements to assess recycling as an alternative to deep-sea mining 152 9 Standards and transparency 157 9.1 Summary 157 9.2 Standards in deep-sea mining 157 9.3 Other issues 159 9.4 Transparency 159 9.4.1 Transparency and deep-sea mining in the Area 161 9.4.2 Transparency and deep-sea mining in areas under coastal State jurisdiction 163 10 Conclusions and recommendations 166 10.1 Summary 166 10.2 Conclusions on the potential and environmental impacts of deep-sea mining 167 10.3 Conclusions on the technological aspects 168 4 Study to investigate state of knowledge of Deep-sea mining 10.4 Conclusions on legal elements 168 10.5 Conclusions for EU industries 170 10.6 Possible recommendations for the EU 175 Literature 177 Annexes 192 5 Study to investigate the state of knowledge of Deep-sea mining List of Tables Table 1.1 Key factors related to the three deposit types 15 Table 1.1 Percentage of primary supply of critical raw materials from the 20 most significant producing countries 29 Table 2.1 The mean metal content of seafloor massive sulphides with respect to their tectonic setting 35 Table 2.2 Seafloor Sulphide Occurrences for which size information is available based on drilling 36 Table 2.3 Mean content of selected elements of polymetallic crusts in various regions 40 Table 3.1 National legislation on deep-sea mining 53 Table 4.1 Technology readiness levels 60 Table 4.2 Level of advancement per value chain stage and deposit type 62 Table 4.3 Table 4.4. EU-wide research projects related to deep-sea mining and ocean floor ecosystems 66 Table 4.5 Assessment of the EU competitive position by value chain component 69 Table 5.1 Mineral resource estimate for Solwara 1 at 2.6% Cu equivalent cut off 81 Table 6.1 Basic mining processes 102 Table 6.2 Nodule mining impacts: Area licensed to each operator - 75,000 sq. km 103 Table 6.3 Impacts of SMS mining - Are of each mine site – 0.1km2 for Solwara 1 but could be larger 105 Table 6.4 Impacts of cobalt-crust mining 107 Table 7.1 Most relevant metals for deep-sea mining 114 Table 7.2 Overview of the formal mining industry 115 Table 7.3 Metal resources and reserves at land for crusts and nodules (millions of tonnes) 121 Table 7.4 Leading metal producers and their percentage in world production 122 Table 7.5 Market grouping of materials 123 Table 7.6 production volume on seafloor massive sulphides 125 Table 7.7: Production volume nodules 126 Table 7.8 Production volume on crusts 126 Table 7.9 SMS extraction costs 128 Table 7.10 Polymetallic nodule extraction costs 129 Table 7.11 crusts extraction costs 130 Table 7.12 Composition of mined deposits (dry weight) and recovery rates (in brackets) 131 Table 7.13 Estimated total amount of minerals entering the market (tonnes per annum) 131 Table 7.14 Market prices for key metals per tonne 132 Table 7.15 Estimated revenues per metal in million USD per annum 133 Table 7.16 Key assumptions 133 Table 7.17 Estimated annual revenue generation per mineral type in USD 133 Table 8.1 Comparison of land based and deep sea mine sites 139 Table 8.2 Open and closed life cycles and corresponding industries and products 142 Table 8.3 Recycling estimates for selected metals 142 Table 8.4 Potential of recycling deep-sea mining metals 144 Table 8.5 Supply sources and market structure per material 146 Table 8.6 Comparison of recycling and land based mining 151 Table 10.1 Potential Blue Growth contribution of European industry in the various DSM stages 171 7 Study to investigate the state of knowledge of Deep-sea mining Table 10.2: Mineral content of seafloor massive sulphides 172 Table 10.3 mineral content of nodules 172 Table 10.4 mineral content of crusts 174 8 Study to investigate state of knowledge of Deep-sea mining List of Figures Figure 1.1 Schematic overview of deep-sea mining value chain 19 Figure 2.1 Location of seafloor massive sulphide occurrences investigated for this report (306 sites)35 Figure 2.2 Location of seafloor massive sulphide occurrences with base and/or precious metal enrichment (source GEOMAR; N=82) 36 Figure 2.3 Area with highest polymetallic nodule potential based on morphology, age of the crust, and metal input 37 Figure 2.4 Location of polymetallic nodule samples in the ISA database investigated for this report (N=2753) 38 Figure 2.5 Seamounts, guyots, and oceanic plateaus important for the formation of polymetallic crust (based on morphological features identified by GRID Arendal; Harris et al., 2014) 39 Figure 2.6 Location of polymetallic crust samples in the ISA database investigated for this report (N=1224) 40 Figure 2.7 Location of polymetallic crust samples in the ISA database with Co concentrations above 0.5 wt. % (N=465). Note that most samples lie in the western Pacific. 41 Figure 3.1 Maritime zones under UNCLOS 45 Figure 1.1 Schematic overview of deep-sea mining value chain 55 Figure 4.2 Value chain phases and activities 57 Figure 4.3 Auxiliary cutter ROV (left), Bulk-cutter ROV (right) and collecting machine (below) 64 Figure 4.4 Example active mechanical collector system 65 Figure 4.5 Air lift system 65 Figure 7.1 Global and commodity expansion between 2001 and 2009 116 Figure 7.2 Corporate concentration 1998/2008 117 Figure 7.3 Share of state companies in metal mining over time 118 Figure 7.4 Share of transnational corporations in domestic production by country 119 Figure 7.5 IMF Commodity price index – metals (2005=100) 121 Figure 7.6 Key elements determining the economic viability of Deep-Sea Mining 124 Figure 8.1 The lifecycle of recycled material 141 9 Study to investigate the state of knowledge of Deep-sea
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