March 11, 2024
U.S. Interest in Seabed Mining in Areas Beyond National
Jurisdiction: Brief Background and Recent Developments
In 1980, Congress passed the Deep Seabed Hard Mineral
but has no vote in the ISA Assembly or Council and cannot
Resources Act (DSHMRA; P.L. 96-283) as an interim
apply for or obtain a contract for seabed mining exploration
measure to allow U.S. citizens to proceed with seabed
or exploitation through the ISA. To date, the ISA has issued
mining activities in areas beyond national jurisdiction
31 exploration contracts; China holds 5 contracts, the most
(ABNJ) until an international regime was in place (i.e., the
of any country party to UNCLOS. The ISA has not issued
United Nations Convention on the Law of the Sea
any contracts for exploitation because it has yet to finalize
[UNCLOS]). DSHMRA established a framework for
regulations for seabed mineral exploitation.
authorizing U.S. citizens (e.g., companies and other
entities) to explore for and recover minerals from the
The ISA is working toward finalizing exploitation
seabed in ABNJ. In general, exploration means the at-sea
regulations (anticipated 2025). ISA draft exploitation
observation and evaluation of seabed mineral resources and
regulations state that exploitation applications will be
the taking of the resource as needed to design and test
examined in the order in which they are received. At least
mining equipment (30 U.S.C. §1403(5)). In general,
one mining company (The Metals Company [TMC]) has
commercial recovery (or exploitation) refers to the actual
announced its intention to apply for an ISA exploitation
at-sea mining and processing of seabed minerals for the
contract in summer 2024. TMC, a Canadian company, has
primary purpose of marketing or commercial use (30
acquired three ISA exploration contracts through
U.S.C. §1403(5)).
sponsorships with Nauru, Kiribati, and Tonga, all parties to
UNCLOS.
Congress authorized the National Oceanic and Atmospheric
Exploration Licenses Issued under DSHMRA
Administration (NOAA) to issue exploration licenses and
commercial recovery permits to U.S. citizens for seabed
In 1984, NOAA issued exploration licenses for four sites
mining activities in ABNJ (30 U.S.C. §1412). By contrast,
located beyond U.S. jurisdiction within a 1.7-million-
for areas within national jurisdiction (i.e., on the U.S. outer
square-mile-area of the seafloor in the Pacific Ocean,
continental shelf), the Department of the Interior’s Bureau
known as the Clarion-Clipperton Zone (CCZ). The CCZ is
of Ocean Energy Management (BOEM) regulates mineral-
estimated to contain more cobalt, copper, manganese, and
related activities. At a time when many countries are
nickel than all known land deposits combined. NOAA
investing in deep seabed mining activities (i.e., taking place
issued exploration licenses to four U.S. mining consortia,
at water depths greater than 200 meters), U.S access to
three of which were multinational private-sector consortia
seabed mining in ABNJ remains uncertain.
with participating American companies. Under DSHMRA,
exploration licenses are issued for 10 years (30 U.S.C.
Background on UNCLOS and the International
§1417(a)). NOAA issued
Seabed Authority
UNCLOS was adopted in 1982, establishing a
USA-1 to Ocean Minerals Company, comprising Cyprus
comprehensive international legal framework to govern
Minerals and Lockheed Martin Corporation (both American
activities related to the global ocean, including deep seabed
companies);
mining. In 1994, the Agreement Relating to the
USA-2 to Ocean Management, Inc., comprising
Implementation of Part XI of the United Nations
Schlumberger Technology (an American company) and
Convention on the Law of the Sea (commonly known as the
Canadian, German, and Japanese companies;
1994 Agreement) substantially modified the deep seabed
mining provisions of UNCLOS to address concerns held by
USA-3 to Ocean Mining Associates, comprising Essex
many industrialized nations. After the adoption of the 1994
Minerals Co. and Sun Ocean Ventures, Inc. (both American
Agreement, UNCLOS received the necessary number of
companies) and Belgium and Italian companies; and
signatories for the agreement to enter into force. The United
USA-4 to Kennecott Consortium, comprising Kennecott
States is not a party to UNCLOS or the 1994 Agreement.
Utah Copper Corporation (an American company) and
British, Canadian, and Japanese companies.
UNCLOS also established the International Seabed
Authority (ISA), a U.N. organization that regulates parties
NOAA issued these four exploration licenses 10 years
to UNCLOS conducting mineral-related activities in ABNJ.
before UNCLOS entered into force and 12 years before the
The ISA came into existence with the adoption of the 1994
ISA became operational. NOAA has not issued any
Agreement and became fully operational in 1996. The
exploration licenses since 1984, although the agency has
United States participates as an observer state in the ISA
approved extension requests. A license can be extended by
https://crsreports.congress.gov

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U.S. Interest in Seabed Mining in Areas Beyond National Jurisdiction: Brief Background and Recent Developments
five-year periods (30 U.S.C. §1417(a)). NOAA has not
from NOAA, the U.S. Department of State, and/or other
issued any commercial recovery permits.
stakeholders on NOAA’s interpretation of its regulatory
role in seabed mining activities in ABNJ as a non-party to
Two of the four exploration licenses issued by NOAA have
UNCLOS.
been surrendered. In 1997, Ocean Mining Associates
relinquished USA-3. In 1999, Ocean Management, Inc., the
Recent Congressional Interest
holder of USA-2, dissolved and, because the conditions for
Members of Congress have considered the potential
holding an exploration license were no longer met, NOAA
environmental impacts of seabed mining as well as the
considered USA-2 relinquished. On July 1, 1999, NOAA
additional supply of critical minerals that could be achieved
published a notice about the relinquishment of USA-2 and
through seabed mining. In the 118th Congress, H.R. 4537
USA-3 (64 Federal Register 3563).
would prohibit NOAA from issuing licenses and permits for
seabed mining activities in ABNJ and would prohibit
To date, USA-1 and USA-4 remain the only active
BOEM from issuing leases for hardrock mineral mining
exploration licenses issued by NOAA pursuant to
activities on the U.S. outer continental shelf. H.R. 4537 also
DSHMRA. Lockheed Martin currently holds both
would direct NOAA to “enter into an agreement with the
exploration licenses; it became the sole holder of these
National Academies of Science, Engineering, and Medicine
licenses by different means. In 1993, Kennecott Consortium
to conduct a comprehensive study of the environmental
relinquished USA-4 to NOAA (58 Federal Register 33933,
impacts of mining activities.”
June 22, 1993). Ocean Minerals Company, the consortium
including Lockheed Martin, applied for USA-4 (58 Federal
In the 118th Congress, both chambers have considered
Register 34782, June 29, 1993) and was issued the license
seabed mining as a strategy for potentially addressing
by NOAA in 1994 (59 Federal Register 66942, December
national security concerns related to critical mineral
28, 1994). In 1995, Cyprus Minerals withdrew from Ocean
supplies. S.Res. 466 calls for the Senate to take up
Minerals Company, leaving Lockheed Martin as the sole
UNCLOS. The resolution contends that as a party to
company overseeing USA-1 and USA-4.
UNCLOS, the United States would be able to participate
directly in setting and voting on ISA policies related to
USA-1 and USA-4 will remain in effect through June 2,
mineral-related activities in ABNJ. Also, H.Rept. 118-125,
2027 (87 Federal Register 52743, August 29, 2022).
the House Armed Services Committee report accompanying
However, the ISA designated an area of the CCZ that
its reported-version of the National Defense Authorization
partially overlaps with USA-1 as an Area of Particular
Act for Fiscal Year 2024 (H.R. 2670), directs the U.S.
Environmental Interest (APEI 13), thereby precluding
Department of Defense (DOD) to submit a report to the
seabed mining activities from taking place in the area. This
panel assessing the processing of polymetallic nodules
APEI designation demonstrates that NOAA-issued seabed
domestically. The committee report notes that while the
mining exploration licenses for ABNJ do not have
United States holds no ISA contracts, “there remains
international recognition. This likely would be true for any
opportunity to evaluate domestic processing and refining of
future NOAA-issued commercial recovery permits, as well.
seafloor resources from the contracts held by allied
As a non-party to UNCLOS, U.S. citizens may face
[UNCLOS] parties and domestic partners in international
challenges to protect their claim to explore and/or recover
waters.” For example, TMC has expressed interest in the
seabed minerals in ANBJ.
feasibility of seabed mineral processing along the Texas
Recent actions taken by Lockheed Martin suggest the
Gulf Coast. Congress could consider seeking feedback from
company may be divesting from seabed mining. On March
Lockheed Martin and/or other U.S. entities with seabed
16, 2023, a Norwegian company (Loke Marine Minerals)
mining interests on financial and technological capabilities
acquired 100% of UK Seabed Resources, a subsidiary of
for the exploration, exploitation, and/or processing of
the United Kingdom-based arm of Lockheed Martin. This
seabed minerals. In addition, in a December 7, 2023, letter
acquisition also included the transfer of UK Seabed
to U.S. Secretary of Defense Lloyd Austin, 31 Members
Resources’ two ISA-issued exploration contracts for
expressed concern over potential pressure from China on
polymetallic nodules in the CCZ to Loke Marine Minerals.
the ISA to adopt regulations for the exploitation of mineral
resources in ABNJ. They called on DOD to work with
To extend USA-1 and USA-4 beyond June 2, 2027,
allies to “ensure that China does not seize unfettered control
Lockheed Martin would need to submit an extension
of deep-sea assets.” Congress also may weigh the
request to NOAA at least six months prior to the expiration
advantages and disadvantages of giving U.S. entities access
date. NOAA communicated to the Congressional Research
to ISA contracts through U.S. accession to UNCLOS as a
Service that if Lockheed Martin does not request an
strategy to help achieve critical mineral supply chain
extension, the agency would consider USA-1 and USA-4
independence.
lapsed and relinquished. At that time, U.S. entities could
request a transfer of USA-1 and/or USA-4 and NOAA
For further reading, see CRS Report R47324, Seabed
would process the request pursuant to the requirements of
Mining in Areas Beyond National Jurisdiction: Issues for
15 C.F.R §970.516. According to NOAA, the agency may
Congress, by Caitlin Keating-Bitonti.
choose to not actively solicit offers for the transfer of these
Caitlin Keating-Bitonti, Analyst in Natural Resources
licenses. Congress could consider whether to direct NOAA
Policy
regarding the solicitation of DSHMRA exploration licenses.
IF12608
Congress also could consider whether to seek information
https://crsreports.congress.gov

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U.S. Interest in Seabed Mining in Areas Beyond National Jurisdiction: Brief Background and Recent Developments


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https://crsreports.congress.gov | IF12608 · VERSION 1 · NEW

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