Silicon Valley venture capitalist helps lead controversial race to start mining ocean floor
The Metals Company, a Canada-based deep-sea mining firm, is leading efforts to mine polymetallic nodules in the Clarion Clipperton Zone, backed by venture capitalist Steve Jurvetson, who invested $5 million and is vice-chairman. A Trump executive order asserted U.S. rights to mine seabed areas, and The Metals Company USA filed permits with NOAA for about 10,000 sq miles. The company’s Nasdaq stock has more than tripled since the order amid environmental and legal challenges.
How this was made
The 30-second read
Why it matters
The article frames a US policy push to enable seabed mining alongside accelerating permitting activity for The Metals Company USA, while emphasizing legal uncertainty and strong environmental opposition that could delay or derail approvals.
Market read
For traders, the key actionable element is the combination of a policy catalyst and a concrete next regulatory step (NOAA permit review) for TMC, offset by unresolved legal and environmental risks.
What to watch
Environmental litigation, state-level restrictions (California), and potential operational constraints (deep-water collection impacts and costs) could dominate outcomes more than the executive-order rhetoric.
Background
The Clarion Clipperton Zone is a high-biodiversity deep-sea region where polymetallic nodules contain cobalt, nickel, copper, and manganese; multiple countries have banned or paused deep-sea mining.
Ticker impact
The Metals Company USA applied to NOAA for permits to mine polymetallic nodules in the Clarion Clipperton Zone after Trump’s executive order.
Near-term upside bias if NOAA processing continues smoothly, but downside risk if courts or regulators constrain US authority or environmental approvals.
The article ties a fresh US permitting step to a policy catalyst and highlights unresolved legal authority and environmental opposition, both of which can quickly change perceived project risk.
Market effects
Deep-sea mining permitting and environmental scrutiny can affect sentiment and risk premia for critical-minerals supply-chain plays and battery-materials narratives.
US regulatory posture on offshore seabed mining may influence how investors price US-based critical-minerals projects versus international competitors.
The US move intersects with the International Seabed Authority’s existing exploration contracts, potentially reshaping competitive dynamics for cobalt and nickel supply claims.
Counterpoint
Even with fast NOAA processing, the core bottleneck may be legal authority and international/regional bans, limiting the probability of commercial-scale mining.
Key entities
- companyThe Metals Company
Canada-based deep-sea mining firm with a US subsidiary seeking NOAA permits for polymetallic nodule mining.
- regulatorNOAA
US agency reviewing The Metals Company USA’s permit applications for deep-sea mining.
- governmentUnited States (Trump executive order)
Executive order asserting America’s right to mine beneath the ocean wherever it chooses, explicitly mentioning polymetallic nodules.
- expertUC Berkeley Law School (Holly Doremus)
Highlights uncertainty over whether the US has legal authority to issue such permits.
- NGOGreenpeace
Warns deep-sea mining poses severe threats and previously boarded the company’s exploration vessel.
