TMC Commends U.S. Congress on Bill to “Provide Financial, Diplomatic, or Other Forms of Support for Seafloor Nodule Collection, Processing and Refining” and Advancing International Regulations for Seafloor Resources
March 13 2024 - 8:00AM
TMC the metals company Inc. (Nasdaq: TMC) (“TMC” or the “Company”),
an explorer of the world’s largest estimated undeveloped source of
critical battery metals, today welcomed the introduction of
legislation by members of the House of Representatives calling for
the U.S. to “support international governance of seafloor resource
exploration and responsible polymetallic nodule collection by
allied partners” and to “provide financial, diplomatic, or other
forms of support for seafloor nodule collection, processing and
refining.”
Sponsors of the bill, entitled the Responsible Use of Seafloor
Resources Act (RUSRA), find that the “United States is falling
behind in competitiveness within supply chains for critical defense
and clean energy technologies”, and recognize that “the collection
of seafloor nodules is integral to ensuring the United States does
not continue its over-dependence" on adversarial nations.
Gerard Barron, Chairman and CEO of The Metals Company, said,
“With commercial deep-sea nodule operations expected to begin soon,
Congressional action to lay the foundation for processing and
refining this remarkable resource is a game-changer. Additionally,
we eagerly await the forthcoming Pentagon report on nodules as
directed by the House Armed Services Committee. The Pentagon’s
ability and willingness to support a feasibility study for a
domestic refinery could help establish mineral independence for the
U.S. in nickel, cobalt and manganese. The rising wave of support
within Congress gives me confidence that there are multiple
pathways for the country to support and potentially fund allied
supply of nodule-derived critical minerals.”
The bill, introduced by Representatives Carol Miller (R-WV) and
John Joyce (R-PA), notes: “Investing in the development of mineral
resources and processing infrastructure quantitatively proven to
reduce ESG impacts, such as seafloor nodules, is integral to
ensuring the raw materials that underpin our domestic industrial
base and transition to clean energy do not have adverse planetary
impacts.”
In addition to TMC, the bill is endorsed by the National Ocean
Industries Association, the Breakthrough Institute, the Critical
Ocean Minerals Research Center, Deep Reach Technology, Kingston
Process Metallurgy Inc., Global Seabed Resources NV, Ocean Minerals
LLC, Odyssey Marine Exploration, Inc. and Moana Minerals.
Over recent years, TMC has welcomed letters from congressional
leaders including the House Armed Services Committee as well as
former military leaders urging the Biden Administration to assess
domestic processing of seafloor polymetallic nodules as a means to
secure key energy transition metals and “close national security
vulnerabilities.” In March of 2022, TMC Chairman and CEO Gerard
Barron wrote to the Senate Energy and Natural Resources Committee,
noting, “It is a geological reality that there are insufficient
U.S. reserves of nickel, cobalt, and manganese to support
lithium-ion battery production at scale, and that recycling will
not be able to meet demand in the mid-term. TMC can provide access
to enough in situ resource to fully electrify the U.S. passenger
fleet (280 million EVs).”
In July of 2022, Secretary Granholm of the US Department of
Energy advised, "For nickel and certain other minerals, such as
manganese and cobalt, the presently known U.S. reserves and known
resources fall short of satisfying projected domestic demand to
meet decarbonization goals. For nickel specifically, Russia’s
footprint in the nickel market and the subsequent price spikes
related to the Russia-Ukraine conflict have reinforced the
importance of establishing a strong domestic supply, processing,
and refining base for economic development and national security.
"
The newly introduced Responsible Use of Seafloor Resources Act
aims to ready the United States for the commercial availability of
seafloor nodules, an abundant source of critical minerals.
About The Metals CompanyThe Metals Company is
an explorer of lower-impact battery metals from seafloor
polymetallic nodules, on a dual mission: (1) supply metals for the
global energy transition with the least possible negative impacts
on planet and people and (2) trace, recover and recycle the metals
we supply to help create a metals commons that can be used in
perpetuity. The Company through its subsidiaries holds exploration
and commercial rights to three polymetallic nodule contract areas
in the Clarion Clipperton Zone of the Pacific Ocean regulated by
the International Seabed Authority and sponsored by the governments
of Nauru, Kiribati and the Kingdom of Tonga. More information is
available at www.metals.co.
ContactsMedia | media@metals.coInvestors |
investors@metals.co
Forward Looking Statements This press release
contains “forward-looking” statements and information within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements may be identified by words such as “aims,”
“anticipates,” “believes,” “could,” “estimates,” “expects,”
“forecasts,” “goal,” “intends,” “may,” “plans,” “possible,”
“potential,” “seeks,” “will” and variations of these words or
similar expressions, although not all forward-looking statements
contain these words. Forward-looking statements in this press
release include, but are not limited to, TMC’s expectations with
respect to the U.S. Senate’s ratification of UNCLOS. The Company
may not actually achieve the plans, intentions or expectations
disclosed in these forward-looking statements, and you should not
place undue reliance on these forward-looking statements. Actual
results or events could differ materially from the plans,
intentions and expectations disclosed in these forward-looking
statements as a result of various factors, including, among other
things: the Company’s strategies and future financial performance;
the International Seabed Authority’s (“ISA”) ability to timely
adopt the Mining Code and/or willingness to review and/or approve a
plan of work for exploitation under the United Nations Convention
on the Laws of the Sea (UNCLOS); the Company’s ability to obtain
exploitation contracts or approved plans of work for exploitation
for its areas in the Clarion Clipperton Zone; regulatory
uncertainties and the impact of government regulation and political
instability on the Company’s resource activities; changes to any of
the laws, rules, regulations or policies to which the Company is
subject, including the terms of the final Mining Code, if any,
adopted by ISA and the potential timing thereof; the impact of
extensive and costly environmental requirements on the Company’s
operations; environmental liabilities; the impact of polymetallic
nodule collection on biodiversity in the Clarion Clipperton Zone
and recovery rates of impacted ecosystems; the Company’s ability to
develop minerals in sufficient grade or quantities to justify
commercial operations; the lack of development of seafloor
polymetallic nodule deposit; the Company’s ability to successfully
enter into binding agreements with Allseas Group S.A. and other
parties in which it is in discussions, if any; uncertainty in the
estimates for mineral resource calculations from certain contract
areas and for the grade and quality of polymetallic nodule
deposits; risks associated with natural hazards; uncertainty with
respect to the specialized treatment and processing of polymetallic
nodules that the Company may recover; risks associated with
collective, development and processing operations, including with
respect to the development of onshore processing capabilities and
capacity and Allseas Group S.A.’s expected development efforts with
respect to the Project Zero offshore system; the Company’s
dependence on Allseas Group S.A.; fluctuations in transportation
costs; fluctuations in metals prices; testing and manufacturing of
equipment; risks associated with the Company’s limited operating
history, limited cash resources and need for additional financing;
risks associated with the Company’s intellectual property; Low
Carbon Royalties’ limited operating history and other risks and
uncertainties, any of which could cause the Company’s actual
results to differ from those contained in the forward-looking
statements, that are described in greater detail in the section
entitled “Risk Factors” in TMC’s Annual Report on Form 10-K for the
year ended December 31, 2022, filed by TMC with the Securities and
Exchange Commission (“SEC”) on March 27, 2023, as updated and/or
supplemented by TMC’s Quarterly Report on Form 10-Q for the quarter
ended June 30, 2023, filed with the SEC on August 14, 2023, and in
TMC’s other future filings with the SEC, including TMC’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2023, filed
with the SEC on November 9, 2023. Any forward-looking statements
contained in this press release speak only as of the date hereof,
and the Company expressly disclaims any obligation to update any
forward-looking statements contained herein, whether because of any
new information, future events, changed circumstances or otherwise,
except as otherwise required by law.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/99b63efa-1d43-4668-afae-ef236d0419ef
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