Minerals Report - International Seabed Authority

The manganese nodule boom was short-lived and driven by
geopolitical forces stemming largely from the Cold War. The 70s nickel boom
and the severe prices spike it creased has also gave nickel a commercial status
it has not enjoyed since. Personally I believe manganese nodules will not be
economic for centuries to come because of their inferior grade and the water
depths they are found in. Some of the shallower manganese crusts and
perched nodule fields may be commercialised sooner.
Looking to what I see as a current analogy for SMS mining, the
runaway success of the Namssol alluvial diamond mining off the west coast
of southern Africa is generating intense interest. I have just inspected two
new mining systems that are to be deployed there.
Today, the greatest threats terrestrial mining faces are most likely land
access problems due to indigenous peoples issues, the increasing (over)
population of the Earth, and the decreasing liberty with which tailings and
mine waste can be disposed. On all points, marine mining will get the inside
running.
Sovereign risk factors are also making terrestrial mining investors
nervous. While less developed countries are seen as being increasingly
unstable, regulation and intense environmental pressure in the developed
nations is also closing mines. In Fiji and the Solomon Islands coups and
succession moves have recently impacted on mining operations there. In the
United States, mining has been all but outlawed in many areas through overly
tough legislation despite booming consumption there.
The offshore environment is attractive to resource developers. Apart
from offering magnificent transport, excellent equipment availability and
convenient topography-free working environment, it has isolation from
population pressures and the risks they bring. The 1999 decision by Shell to
spend US$8.0 billion in offshore petroleum exploration and production
preceded the countries first democratic election for some time by three weeks.
The offshore environment presents a large comfort factor for investors
concerned about sovereign risk issues.
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