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China puts the world on alert: Asian giant targets the bottom of the ocean to extract trillions of nodules of copper, nickel, cobalt and manganese to hold the world hostage to its supremacy in critical minerals and military operations

Written by Flavia Marinho
Published 26/10/2024 às 20:32
mining - china - copper - nickel - cobalt - manganese - critical minerals
China, the largest manufacturer of solar panels, electric cars and batteries, wants the world hostage to its supremacy in critical minerals and targets the ocean floor to extract trillions of nodules of copper, nickel, cobalt and manganese.

China, the largest manufacturer of solar panels, electric cars and batteries, wants the world hostage to its supremacy in critical minerals and targets the ocean floor to extract trillions of nodules of copper, nickel, cobalt and manganese.

China, ever ambitious, has its eye on a new territory to expand its dominance: the bottom of the ocean. With trillions of nodules of nickel, copper, cobalt and manganese scattered in the deep sea, underwater mining seems to be the logical next step. These “critical minerals” are fundamental to the green economy the world seeks, but the path to extracting them is still fraught with regulatory uncertainty.

The International Seabed Authority (ISA), a UN body, still deliberates on the rules for this practice. On the one hand, environmental groups call for a total ban, fearing irreparable damage to the marine ecosystem. On the other, companies and governments, especially China, are pushing for regulations that allow controlled exploration. Recently, at an ISA meeting in Jamaica, between July 29th and August 2nd, these debates became even more intense.

China is a world leader in the manufacture of solar panels, electric cars and batteries, items that depend on these minerals

Demand for critical minerals is expected to more than double by 2040, driven mainly by China. The Asian giant is a world leader in the manufacture of solar panels, electric cars and batteries, items that depend on these minerals. Last year, clean energy industries accounted for 40% of Chinese GDP growth, according to the Center for Research on Energy and Clean Air, a Finnish think-tank.

However, China's dependence on importing these minerals from other nations, such as South Africa, Gabon, Australia and the Democratic Republic of Congo, worries its leaders. They fear that political instability or pressure from rivals such as the United States could disrupt supplies of these essential materials. Thus, the race for critical minerals has become a new front in global strategic competition.

The importance of these minerals for China's future is compared to oil and gas

The importance of these minerals for China's future is compared to oil and gas. Deep sea mining emerges as a solution to ensure a safe supply, far from the sovereign borders of other countries. In 2016, Xi Jinping, leader of China, highlighted the need to explore the “hidden treasures” of the ocean, beginning a national effort to conquer the seabed.

To achieve this goal, China spent years building influence within the ISA. This body, responsible for regulating seabeds in international waters, receives funding from its members, with China being the largest donor. Additionally, in 2020, the country offered a training facility in the port city of Qingdao, further strengthening its ties with the ISA.

At recent ISA meetings, some countries attempted to impose a moratorium on underwater mining, but were blocked by Chinese pressure. China's goal is to establish a permissive mining regime, without external interference, as pointed out by Isaac Kardon, of the Carnegie Endowment for International Peace. To date, ISA has issued 31 mineral exploration licenses, with China holding five of them, more than any other country.

Chinese miners include China Ocean Mineral R&D Association, China Minmetals and Beijing Pioneer Hi-Tech Development. Three of the Chinese licenses cover areas in the Clarion-Clipperton Zone in the eastern Pacific Ocean, where there are mineral deposits comparable to all terrestrial reserves. The other two are located in the western Pacific and Indian Ocean.

However, Chinese companies are not just looking for profit. They have broader objectives, such as ensuring the supply of minerals to strengthen the nation. In March, the chairman of China Minmetals, a state-owned giant, promised to expand operations in a way that ensures China cannot be dislodged from global supply chains. He highlighted that underwater mining is crucial to “rejuvenating the Chinese nation.”

China's ability to quickly build ships and robots

Deep-sea mining involves advanced technology, with large robots sent to the seabed to collect polymetallic nodules. Although Chinese technology is not yet the most advanced, it is evolving rapidly. In July, a team from Shanghai Jiao Tong University tested a robot more than 4.000 meters underground, collecting 200 kg of material. Chinese state media highlighted the use of national components, breaking the international monopoly.

If commercial mining begins, Chinese companies will likely lead the sector. China's ability to quickly build ships and robots, combined with generous government support, puts the country ahead of any competitor. Furthermore, the vast domestic demand for these minerals guarantees a certain market for the riches extracted from the bottom of the sea.

World on alert: mineral extraction in deep waters could serve as a front for military operations

However, this perspective worries environmentalists. The ocean floor is home to thousands of unique species, from microbes to sponges, which can be severely impacted by mining. Even with strict regulation, robots can cause irreversible damage, destroying habitats and creating sediment plumes that threaten marine life. Furthermore, the record of Chinese mining companies in terms of environmental responsibility is worrying, even on dry land, where inspection is easier.

China's rivals also have their concerns, and not just about the environment. There are fears that deep-sea mining could serve as a front for military operations, such as underwater research that would benefit the navigation of Chinese submarines. In 2021, for example, a China Minmetals research vessel made an unexplained detour near Hawaii, where the US maintains large military bases.

The biggest Western concern, however, is who will control the supply chains of clean energy industries. China already has a significant advantage in this field, and underwater mining could further consolidate this position. Meanwhile, the United States, which has not ratified the United Nations Convention on the Law of the Sea (Unclos), is excluded from ISA discussions. In March, a group of former US officials urged the Senate to ratify the treaty, highlighting that the US absence benefited China.

These concerns are seized upon by Western companies advocating underwater mining, such as Canada's The Metals Company, which hopes to apply for an ISA commercial license later this year. In Washington, the company has received support, with many fearing that China could dominate this emerging industry. “The possibility of China controlling this industry is a very strong motivator,” said Gerard Barron, founder of The Metals Company.

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Flavia Marinho

Flavia Marinho is a postgraduate engineer with extensive experience in the onshore and offshore shipbuilding industry. In recent years, she has dedicated herself to writing articles for news websites in the areas of industry, oil and gas, energy, shipbuilding, geopolitics, jobs and courses. Contact her for suggestions, job openings or advertising on our portal.

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