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Congressional Research Service
Informing the Iegislative debate sinco 1914
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
Resources Act (DSHMRA; P.L. 96-283) as an interim
measure to allow U.S. citizens to proceed with seabed
mining activities in areas beyond national jurisdiction
(ABNJ) until an international regime was in place (i.e., the
United Nations Convention on the Law of the Sea
[UNCLOS]). DSHMRA established a framework for
authorizing U.S. citizens (e.g., companies and other
entities) to explore for and recover minerals from the
seabed in ABNJ. In general, exploration means the at-sea
observation and evaluation of seabed mineral resources and
the taking of the resource as needed to design and test
mining equipment (30 U.S.C. §1403(5)). In general,
commercial recovery (or exploitation) refers to the actual
at-sea mining and processing of seabed minerals for the
primary purpose of marketing or commercial use (30
U.S.C. § 1403(5)).
Congress authorized the National Oceanic and Atmospheric
Administration (NOAA) to issue exploration licenses and
commercial recovery permits to U.S. citizens for seabed
mining activities in ABNJ (30 U.S.C. § 1412). By contrast,
for areas within national jurisdiction (i.e., on the U.S. outer
continental shelf), the Department of the Interior's Bureau
of Ocean Energy Management (BOEM) regulates mineral-
related activities. At a time when many countries are
investing in deep seabed mining activities (i.e., taking place
at water depths greater than 200 meters), U.S. access to
seabed mining in ABNJ remains uncertain.
Background on UNCLOS and the International
Seabed Authority
UNCLOS was adopted in 1982, establishing a
comprehensive international legal framework to govern
activities related to the global ocean, including deep seabed
mining. In 1994, the Agreement Relating to the
Implementation of Part XI of the United Nations
Convention on the Law of the Sea (commonly known as the
1994 Agreement) substantially modified the deep seabed
mining provisions of UNCLOS to address concerns held by
many industrialized nations. After the adoption of the 1994
Agreement, UNCLOS received the necessary number of
signatories for the agreement to enter into force. The United
States is not a party to UNCLOS or the 1994 Agreement.
UNCLOS also established the International Seabed
Authority (ISA), a U.N. organization that regulates parties
to UNCLOS conducting mineral-related activities in ABNJ.
The ISA came into existence with the adoption of the 1994
Agreement and became fully operational in 1996. The
United States participates as an observer state in the ISA
but has no vote in the ISA Assembly or Council and cannot
apply for or obtain a contract for seabed mining exploration
or exploitation through the ISA. To date, the ISA has issued
31 exploration contracts; China holds 5 contracts, the most
of any country party to UNCLOS. The ISA has not issued
any contracts for exploitation because it has yet to finalize
regulations for seabed mineral exploitation.
The ISA is working toward finalizing exploitation
regulations (anticipated 2025). ISA draft exploitation
regulations state that exploitation applications will be
examined in the order in which they are received. At least
one mining company (The Metals Company [TMC]) has
announced its intention to apply for an ISA exploitation
contract in summer 2024. TMC, a Canadian company, has
acquired three ISA exploration contracts through
sponsorships with Nauru, Kiribati, and Tonga, all parties to
UNCLOS.
Exploration Licenses Issued Under DSHMRA
In 1984, NOAA issued exploration licenses for four sites
located beyond U.S. jurisdiction within a 1.7-million-
square-mile-area of the seafloor in the Pacific Ocean,
known as the Clarion-Clipperton Zone (CCZ). The CCZ is
estimated to contain more cobalt, copper, manganese, and
nickel than all known land deposits combined. NOAA
issued exploration licenses to four U.S. mining consortia,
three of which were multinational private-sector consortia
with participating American companies. Under DSHMRA,
exploration licenses are issued for 10 years (30 U.S.C.
§ 1417(a)). NOAA issued
USA-1 to Ocean Minerals Company, comprising Cyprus
Minerals and Lockheed Martin Corporation (both American
companies);
USA-2 to Ocean Management, Inc., comprising
Schlumberger Technology (an American company) and
Canadian, German, and Japanese companies;
USA-3 to Ocean Mining Associates, comprising Essex
Minerals Co. and Sun Ocean Ventures, Inc. (both American
companies) and Belgium and Italian companies; and
USA-4 to Kennecott Consortium, comprising Kennecott
Utah Copper Corporation (an American company) and
British, Canadian, and Japanese companies.
NOAA issued these four exploration licenses 10 years
before UNCLOS entered into force and 12 years before the
ISA became operational. NOAA has not issued any
exploration licenses since 1984, although the agency has
approved extension requests. A license can be extended by](ViewImageLocal?handle=hein.crs/goveoob0001&div=1&collection=&method=preview&ext=.png&size=3)