Business Day

What the rush to exploit the deep seabed means for African countries

Continent’s absence in the sector raises questions about its readiness to adapt to a critical developmen­t

- Ayelet Zamek ● Zamek is a graduate student in the Georgetown University foreign service programme, specialisi­ng in energy and the global environmen­t with an emphasis on critical minerals.

Despite the global outcry and maelstrom of debate over deep-sea mining, key actors are emerging from Europe, Asia and the Pacific Islands. For instance, the Norwegian parliament recently approved deep seabed mining on its extended continenta­l shelf, paving the way for future activities in areas beyond its national jurisdicti­on. China holds five of the 31 exploratio­n licences granted by the Internatio­nal Seabed Authority, the UN-affiliated body charged with regulating deep seabed mining activities, the most of any one country.

Canadian firm The Metals Company has secured the sponsorshi­p of Nauru, Kiribati and Tonga for its deep seabed mining projects.

However, absent from this recent flurry of activity are African countries. Though the trajectory of deep seabed mining is hardly fixed, many argue that it is a matter of when, rather than if, deep seabed mining production will start off the continent. If that is indeed the case, what are the implicatio­ns of the rush to mine the deep seabed for Africa?

African countries are top producers of many of the same prized minerals also found in polymetall­ic nodules and ferromanga­nese crusts on the deep seabed: copper, cobalt, nickel and manganese. These minerals, demand for which the Internatio­nal Energy Agency predicts will more than double by 2030, are vital to the energy transition for their use in electric vehicle batteries and other green technologi­es.

The Democratic Republic of Congo (DRC) is the largest producer of cobalt in the world, and in 2023 Madagascar became the fifth largest. The DRC is also the third-largest producer of copper, with neighbouri­ng Zambia in the top 10. Of the largest producers of manganese, four are African countries: SA (number one), Gabon (number two), Ghana (number four) and Ivory Coast (number eight).

Deep seabed mining production could therefore become a new source of competitio­n for some African countries, and land-based producers — especially those with large shares of their GDP coming from mineral exports — could take a beating economical­ly.

Recognisin­g this, the Internatio­nal Seabed Authority commission­ed a study in 2022 to assess the potential effects of deep seabed mining on the economies of developing states engaged in landbased mining of these minerals. Of the 13 countries the study found most likely to experience negative economic effects from seabed mining, eight are African: Zambia, the DRC, Eritrea, Madagascar, Zimbabwe, Gabon, Mauritania and Namibia.

The extent to which land-based producers will face competitio­n from deep seabed mining production depends on world prices for these minerals. Low world prices are likely to make deep seabed mining projects uneconomic­al and favour lower-cost, land-based producers, assuming production can increase to keep revenues stable.

Investors in deep seabed mining are banking on high prices, fuelled by increasing demand for critical minerals and the declining productivi­ty of convention­al mines. However, in this era of strategic competitio­n cost is but one factor in investment and sourcing decisions. Western consumers of these minerals, particular­ly the US, have shown their willingnes­s to sacrifice on cost for the sake of diversific­ation and “friend-shoring”. Environmen­tal, social and governance (ESG) concerns, for example over child labour in the DRC and mass deforestat­ion in Indonesia for nickel mining, may also tip the scales towards otherwise uneconomic­al sources.

African countries are unprepared for this major developmen­t in a key sector. While the 48 African Internatio­nal Seabed Authority member states have participat­ed in the ongoing negotiatio­ns on deep seabed mining regulation­s, largely en bloc as the Ghana-led Africa Group, none has sponsored any deep seabed mining exploratio­n licences. This is despite efforts by the Internatio­nal Seabed Authority secretaria­t, the AU and the Norwegian Agency for Developmen­t Co-operation to encourage deep seabed activities, including but not limited to mining activities through the Africa Deep Seabed Resources Project.

Edwin Egede of the Institute for Security Studies Africa argues that the AU and Economic Community of West Africa have been apathetic towards deep seabed mining.

No In Namibia African’country s offshore possesses mining activities the technologi­cal some capacity for deep seabed mining exploitati­on. Consider Namibia, which has mined diamonds offshore since the 1960s. In 2022 Debmarine Namibia, a joint venture between the Namibian government and De Beers, inaugurate­d the Benguela Gem, the largest offshore diamond recovery vessel in the world. might see a nascent capacity for deep seabed mining. However, they are incomparab­le in terms of complexity: the Bengula Gem dredges the sea floor at depths of 90m-150m, while the kinds of activities under debate at the Internatio­nal Seabed Authority occur at depths of 3.5km-6km.

Even exploratio­n, a prerequisi­te for deep seabed mining exploitati­on, is a challenge. According to the 2022 Global Deep-Sea Capacity Assessment, 65% of African respondent­s believed their regions lacked the technologi­cal capacity for deep-sea exploratio­n. Faced with a lack of domestic capacity, African countries could choose to sponsor foreign-based businesses, as Nauru is sponsoring The Metals Company.

While this would allow them to receive some percentage of the royalties from the project, such an arrangemen­t does not build capacity for countries to pursue deep seabed mining activities of their own. A potential alternativ­e is for a group of African countries with shared interests in deep seabed mining to pool their resources and jointly sponsor deep seabed mining activities. Resourcepo­oling such as this could help African countries overcome gaps in technical capacity.

The absence of African countries in the current landscape of deep seabed mining raises questions about their readiness to adapt to a critical developmen­t in mining, especially considerin­g the importance of the sector to many of the continent’s economies. Developing the capacity for deep-sea activities, including mining exploratio­n and exploitati­on, will require African countries to pursue strategic partnershi­ps and joint initiative­s. Only then will the continent be poised to ensure that it is not left behind in the rush to mine the deep seabed.

 ?? ??

Newspapers in English

Newspapers from South Africa