Seabed mining must be ‘commercially viable’ in order to proceed: PM Brown
Prime Minister Mark Brown has acknowledged economic concerns about seabed mining, emphasising that the government will only proceed with projects that are both commercially viable and environmentally sustainable.
Brown was responding to recent cautionary remarks from Australian economist Professor Christopher Flemming regarding the Cook Islands’ plans for seabed mining.
Professor Flemming, who spoke at the Deep Ocean Symposium in October 2024, expressed scepticism about the financial viability of seabed mining.
He cautioned that much of the anticipated revenue might be directed towards mining companies rather than benefiting the Cook Islands directly.
“The economic case of seabed mining is far from settled,” Professor Flemming said previously, pointing out that employment benefits for host nations, such as the Cook Islands, would likely be minimal.
The economist also raised concerns about the environmental and cultural costs, noting that reports on seabed mining’s potential profits might be overly optimistic.
Professor Flemming explained that previous analyses, such as one from the Pacific Community (SPC) and environmental consulting services company, Cardno, suggested potential net benefits of US$467 million, but he also warned that the cost estimates were uncertain, with unproven technology in play.
“There won’t be any or very little direct benefit to the Cook Islands,” he added, urging caution and calling for further study before moving forward.
Speaking to Cook Islands News in December 2024, the Prime Minister acknowledged Professor Flemming’s concerns but clarified the government’s position, emphasising the complexities involved in the seabed mining industry.
Brown, who is also the Minister responsible for Seabed Minerals, recognised that while the concerns raised by the economist were valid, they were based on a particular perspective of seabed mining.
He emphasised that for any venture to proceed, it must meet environmental safety guidelines and be commercially viable.
“If it’s not commercially viable then it doesn’t go ahead,” Brown said.
PM Brown also noted that the government is aware of the rapidly changing technological landscape in the mining sector.
“We may not need those critical metals as other technologies advance. That’s the reality that if there are alternative forms of energy that don’t require critical metals then of course the demand will go down,” Brown said.
He drew comparisons to terrestrial mining operations, where the closure of certain mines has occurred when metal prices dropped.
“If prices increase then production gets back going again. That’s a commercial reality that investors in any industry are mindful of and aware of.
“We see it in the terrestrial mining operations, certain metals, certain mines have closed down because prices have dropped. So they will wait, if prices increase then production gets back going again. So that’s a commercial reality of any industry.”
Prime Minister Brown highlighted the importance of balanced decision-making.
He reaffirmed that the government will ensure any projects undertaken are both economically viable and aligned with the country’s environmental and cultural values.
Next month, Cook Islands will enter the fourth year of a five-year exploration phase to determine the feasibility of deep-sea mining for polymetallic nodules rich in cobalt, copper, nickel and manganese. These metals are used to make lithium-ion batteries for electric vehicles.
Cook Islands reportedly boasts the world’s largest documented collection of mineral rich manganese nodules, estimated at a staggering 6.7 billion tonnes, found at a depth of 5000 metre and spread over some 750,000 square kilometres of the country’s continental shelf.
Written by Talaia Mika | Published in Environment, National