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Minerals Report - International Seabed Authority

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Although at first glance the nature of diamond deposits appears<br />

quite different to polymetallic nodules and crusts, they are likely to bear<br />

many similarities in terms of mineral resource management. This<br />

indicates that the development of mineral resources for transformation to<br />

reserves could be an important aspect for companies to address if funding<br />

is to be secured. Currently, data available about deep-sea mineral deposits<br />

might only permit estimation of resources at an inferred level of<br />

confidence in general. Substantial research may be required to determine<br />

how variable the grade and metal content of these deposits might be in a<br />

spatial context at a level of resolution suitable for indicated mineral<br />

resource category. This could imply that considerable expenditure will be<br />

required for mineral resource development to properly establish a<br />

producing mining industry with manageable financial risk.<br />

Experience in the deep-water diamond industry has shown that<br />

effective and efficient sampling to establish mineral resources for<br />

transformation into reserves is a critical success factor. The ability to costeffectively<br />

sample deep-ocean polymetallic nodule and Ferro-manganese<br />

crusts in a manner suitable for mineral resource estimation will impact on<br />

the financial viability of future mining operations in terms of cost.<br />

Depending upon the variability of parameters, the confidence level of the<br />

results will determine the ability to manage technical and financial risk<br />

effectively whilst delivering an acceptable return on investment through<br />

optimisation of depletion strategy.<br />

Mining system development<br />

Ten years on from the initiation of large-scale offshore deep-water<br />

diamond production, DBM is intensively focused on the development of<br />

new and improved mining systems. This trend is not unusual in the<br />

mining industry - it has been a characteristic throughout the entire history<br />

of NAMDEB, which now spans almost 100 years. This type of continuous<br />

innovation has been an essential factor in enabling the company to<br />

responsibly mine the mineral resources on the West Coast of Namibia by<br />

maximising the profitable extraction of both high and low grade deposits.<br />

A similar trend is likely to characterise future development of the offshore<br />

mining industry.<br />

INTERNATIONAL SEABED AUTHORITY 588

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