At least two companies seek Norway seabed mining permits

Wilh Wilhelmsen Holding ASA

22/05/2024 15:51

OSLO, May 22 (Reuters) - Two companies said on Wednesday
they are seeking offshore seabed acreage on the Norwegian
continental shelf where they hope to explore for minerals, in
what could be the start of a controversial new mining industry.
    The process puts Norway on track to become the first country
to start commercial production from its continental shelf of
metals useful in the transition from from oil and gas, such as
copper, cobalt and zinc, as well as rare earth elements (REE).
    Nominations for acreage submitted by a May 21 deadline will
form the basis for announcing the country's first seabed mineral
exploration licensing round later this year, Norwegian
authorities have said.
    Norway's energy ministry did not immediately respond to a
request for comment.
    Startup Loke, backed by TechnipFMC  1T1.F , Wilhelmsen
 WWI.OL  and Kongsberg Gruppen  KOG.OL , told Reuters it had
nominated a substantial number of blocks focusing on areas with
polymetallic crusts, rich in cobalt and rare earth elements.
    "We are encouraged by the significant resource potential and
are looking forward to the first licensing round," Chief
Executive Walter Sognnes told Reuters in an email.
    Oslo-listed Green Minerals  GEM.OL  said it had nominated
four areas, each comprising several blocks. The company expects
first ore from pilot production in 2028, according to a recent
investor presentation.
    Environmental groups, including Greenpeace, have called for
a global moratorium on mining for seabed minerals, arguing that
it can cause irreversible harm to little researched life forms.
    The Norwegian government says the exploration phase should
help to establish the potential impact of seabed mineral
extraction, and also provide more knowledge about seabed
organisms. 
    Norwegian oil firm Aker BP  AKRBP  declined to say whether
it had submitted nominations, but has previously said it would
be interested in exploring the resource potential.
    The government aims to issue first licenses in 2025, but
companies will require separate approvals to start production.
    The country's parliament, which decided in January to open
vast areas in the Norwegian and the Greenland Seas to the
potential new industry, will also have to approve the first
projects.     

 (Reporting by Nerijus Adomaitis, editing by Terje Solsvik and
Philippa Fletcher)
 ((nerijus.adomaitis@thomsonreuters.com; +47 9027 6699; Reuters
Messaging: nerijus.adomaitis.thomsonreuters@reuters.net))