Lockheed Martin sells deep-sea mining firm to Norway's Loke (updated)

TechnipFMC

16/03/2023 22:43

(Recasts, adds comment from UK Seabed Resources managing
director)
       OSLO, March 16 (Reuters) - Norway's Loke Marine Minerals
has acquired deep-sea mining firm UK Seabed Resources (UKSR)
from U.S. weapons manufacturer Lockheed Martin  LMT.N , the
companies said on Thursday as international rules governing
seabed mining are hammered out.
    Norway, whose vast oil and gas reserves made it one of the
world's wealthiest countries, has taken a leading role in the
global race to mine the ocean floor for metals that are in high
demand as countries transition away from fossil fuels. 
    Loke, which declined to disclose the value of the deal, aims
to start mining by 2030 and plans to invest around $100 million
in surveys, environmental mapping, and technology development,
CEO Walter Sognnes said. 
    "Where we are now is making that transition from being
really quite fundamental exploration towards a credible path to
exploitation," UKSR Managing Director Christopher Williams said.
    UKSR holds two seabed exploration licences in the Pacific
Ocean's Clarion-Clipperton Zone (CCZ), a 4.5 million square
kilometre (1.7 million square mile) swathe of sea floor lined
with potato-sized rocks rich in cobalt, copper, nickel, and
manganese.
    UKSR also has a 19.9% stake in Ocean Mineral Singapore, a
subsidiary of Singapore's Keppel Corporation which also holds a
license in the CCZ. 
    Lockheed Martin did not give a reason for the sale beyond
saying that "following a detailed analysis of the business it
was clear that there was a better owner for our UK Seabed
Resources business."
    Plans to extract minerals from the ocean floor have been
criticized by environmentalists who say mining could have
devastating impacts on marine life. 
    Seabed mining in international waters cannot start until the
International Seabed Authority (ISA), a Jamaica-based U.N. body,
decides on regulations. ISA member states are currently meeting
in Kingston for talks with a view to finalising the rules by
July. 
    Norway is also considering opening parts of its extended
continental shelf in the North Atlantic for mineral exploration.
    Loke said Norway's Kongsberg Gruppen  KOG.OL , which
provides technologies for offshore oil and gas and other
industries, has taken a stake in it, joining TechnipFMC  1T1.F 
and Wilhelmsen. 

 (Reporting by Nerijus Adomaitis in Oslo and Helen Reid in
London; Editing by Mark Potter and Stephen Coates)
 ((nerijus.adomaitis@thomsonreuters.com; +47 9027 6699; Reuters
Messaging: nerijus.adomaitis.thomsonreuters@reuters.net))