Updated March 18, 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
cannot apply for or obtain a contract for seabed mining
Resources Act (DSHMRA; P.L. 96-283) as an interim
exploration or exploitation through the ISA. To date, the
measure to allow U.S. citizens to proceed with seabed
ISA has issued 31 exploration contracts; China holds 5
mining activities in areas beyond national jurisdiction
contracts, the most of any country party to UNCLOS. The
(ABNJ) until an international regime was in place (i.e., the
ISA has not issued any contracts for exploitation because it
United Nations Convention on the Law of the Sea
has yet to finalize regulations for seabed mineral
[UNCLOS]). DSHMRA established a framework for
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, and commercial recovery (or
one mining company (The Metals Company [TMC]) has
exploitation) means the actual at-sea mining and processing
announced its intention to apply for an exploitation contract
following the ISA’s summer
of seabed minerals for the primary purpose of marketing or
2024 session. TMC, a
commercial use (30 U.S.C. §1403).
Canadian company, has acquired three ISA exploration
contracts through sponsorships with Nauru, Kiribati, and
Congress authorized the National Oceanic and Atmospheric
Tonga, all parties to UNCLOS.
Administration (NOAA) to issue exploration licenses and
Exploration Licenses Issued Under DSHMRA
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,
Background on UNCLOS and the International
exploration licenses are issued for 10 years (30 U.S.C.
Seabed Authority
§1417(a)). NOAA issued
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
Implementation of Part XI of the United Nations
USA-2 to Ocean Management, Inc., comprising
Convention on the Law of the Sea (commonly known as the
Schlumberger Technology (an American company) and
1994 Agreement) substantially modified the deep seabed
Canadian, German, and Japanese companies;
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
States is not a party to UNCLOS or the 1994 Agreement.
USA-4 to Kennecott Consortium, comprising Kennecott
Utah Copper Corporation (an American company) and
UNCLOS also established the International Seabed
British, Canadian, and Japanese companies.
Authority (ISA), an autonomous organization that regulates
parties to UNCLOS conducting mineral-related activities in
NOAA issued these four exploration licenses 10 years
ABNJ. The ISA came into existence with the adoption of
before UNCLOS entered into force and 12 years before the
the 1994 Agreement and became fully operational in 1996.
ISA became operational. NOAA has not issued any
The United States participates as an observer state in the
exploration licenses since 1984, although the agency has
ISA but has no vote in the ISA Assembly or Council and
approved extension requests. A license can be extended by
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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 as a non-party to UNCLOS.
Two of the four exploration licenses issued by NOAA have
been surrendered. In 1997, Ocean Mining Associates
Recent Congressional Interest
relinquished USA-3. In 1999, Ocean Management, Inc., the
Members of Congress have considered the potential
holder of USA-2, dissolved and, because the conditions for
environmental impacts of seabed mining as well as the
holding an exploration license were no longer met, NOAA
additional supply of critical minerals that could be achieved
considered USA-2 relinquished. On July 1, 1999, NOAA
through seabed mining. In the 118th Congress, H.R. 4537
published a notice about the relinquishment of USA-2 and
would prohibit NOAA from issuing licenses and permits for
USA-3 (64 Federal Register 3563).
seabed mining activities in ABNJ and would prohibit
BOEM from issuing leases for hardrock mineral mining
To date, USA-1 and USA-4 remain the only active
activities on the U.S. outer continental shelf. H.R. 4537 also
exploration licenses issued by NOAA pursuant to
would direct NOAA, with the National Academies of
DSHMRA. Lockheed Martin currently holds both
Science, Engineering, and Medicine, to study the
exploration licenses; it became the sole holder of these
environmental impacts of mining activities.
licenses by different means. In 1993, Kennecott Consortium
relinquished USA-4 to NOAA (58 Federal Register 33933,
In the 118th Congress, both chambers have considered
June 22, 1993). Ocean Minerals Company, the consortium
seabed mining as a strategy for potentially addressing
including Lockheed Martin, applied for USA-4 (58 Federal
national security concerns related to critical minerals.
Register 34782, June 29, 1993) and was issued the license
S.Res. 466 calls for the Senate to take up UNCLOS. The
by NOAA in 1994 (59 Federal Register 66942, December
resolution contends that as a party to UNCLOS, the United
28, 1994). In 1995, Cyprus Minerals withdrew from Ocean
States would be able to participate directly in setting and
Minerals Company, leaving Lockheed Martin as the sole
voting on ISA policies related to mineral-related activities
company overseeing USA-1 and USA-4.
in ABNJ. Also, H.Rept. 118-125, the House Armed
USA-1 and USA-4 will remain in effect through June 2,
Services Committee report accompanying its reported
2027 (87 Federal Register 52743, August 29, 2022).
version of the National Defense Authorization Act for
However, the ISA designated an area of the CCZ that
Fiscal Year 2024 (H.R. 2670), directs the U.S. Department
partially overlaps with USA-1 as an Area of Particular
of Defense (DOD) to submit a report to the panel assessing
Environmental Interest (APEI 13), thereby precluding
the processing of polymetallic nodules domestically. The
seabed mining activities from taking place in the area. This
committee report notes that while the United States holds
APEI designation demonstrates that NOAA-issued seabed
no ISA contracts, “there remains opportunity to evaluate
mining exploration licenses for ABNJ do not have
domestic processing and refining of seafloor resources from
international recognition. This likely would be true for any
the contracts held by allied [UNCLOS] parties and
future NOAA-issued commercial recovery permits, as well.
domestic partners in international waters.” H.R. 7636 would
As a non-party to UNCLOS, U.S. citizens may face
direct the U.S. government to coordinate the development
challenges to protect their claim to explore and/or recover
of infrastructure to process and refine polymetallic nodules
seabed minerals in ABNJ.
within the United States, among other actions. For example,
TMC has expressed interest in the feasibility of seabed
Recent actions taken by Lockheed Martin suggest the
mineral processing along the Texas Gulf Coast. Congress
company may be divesting from seabed mining. On March
could consider seeking feedback from Lockheed Martin
16, 2023, a Norwegian company (Loke Marine Minerals)
and/or other U.S. entities with seabed mining interests on
acquired 100% of UK Seabed Resources, a subsidiary of
financial and technological capabilities for the exploration,
the United Kingdom-based arm of Lockheed Martin. This
exploitation, and/or processing of seabed minerals. In
acquisition also included the transfer of UK Seabed
addition, in a December 7, 2023, letter to U.S. Secretary of
Resources’ two ISA-issued exploration contracts for
Defense Lloyd Austin, 31 Members expressed concern over
polymetallic nodules in the CCZ to Loke Marine Minerals.
potential pressure from China on the ISA to adopt
To extend USA-1 and USA-4 beyond June 2, 2027,
regulations for the exploitation of mineral resources in
Lockheed Martin would need to submit an extension
ABNJ. They called on DOD to work with allies to “ensure
request to NOAA at least six months prior to the expiration
that China does not seize unfettered control of deep-sea
date. NOAA communicated to the Congressional Research
assets.” Congress also may weigh the advantages and
Service that if Lockheed Martin does not request an
disadvantages of giving U.S. entities access to ISA
extension, the agency would consider USA-1 and USA-4
contracts through U.S. accession to UNCLOS as a strategy
lapsed and relinquished. At that time, U.S. entities could
to help achieve critical mineral supply chain independence.
request a transfer of USA-1 and/or USA-4 and NOAA
For further reading, see CRS In Focus IF12608, U.S.
would process the request pursuant to the requirements of
Interest in Seabed Mining in Areas Beyond National
15 C.F.R. §970.516. According to NOAA, the agency may
Jurisdiction: Brief Background and Recent Developments.
choose to not actively solicit offers for the transfer of these
licenses. Congress could consider whether to direct NOAA
Caitlin Keating-Bitonti, Analyst in Natural Resources
regarding the solicitation of DSHMRA exploration licenses.
Policy
Congress also could consider whether to seek information
IF12608
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 3 · UPDATED

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