BMW Launches Business Pledge Against Deep-Sea Mining
March 31 2021 - 7:44AM
Dow Jones News
By Dieter Holger
A group of four companies led by German luxury car maker BMW AG
vowed not to use metals mined from the deep sea until there is a
way to safely carry out the controversial type of mining, creating
headwinds for a burgeoning industry.
Swedish bus-and-truck manufacturer Volvo AB joined BMW,
alongside South Korean battery-producer Samsung SDI Co. and Google,
the Alphabet Inc.-owned internet giant that also makes
electronics.
"The lack of knowledge and the numerous risks to ocean health,
fisheries, sustainable development and to important climate
functions, point clearly to the need for precaution," the companies
said Wednesday in a letter posted on noseabedmining.org. "Before
any potential deep-seabed mining occurs, it needs to be clearly
demonstrated that such activities can be managed in a way that
ensures the effective protection of the marine environment."
The companies committed not to source minerals from the deep
seabed, exclude these minerals from their supply chains and not to
finance deep seabed mining. They also called on governments to
support a moratorium and invited other companies to join the
pledge.
Demand for cobalt, lithium and nickel is expected to grow over
the coming decade to meet manufacturing needs for electric cars and
electronics. The ocean floor offers a valuable trove of the
metals.
Globally, the deep-sea mining market could grow to $15.3 billion
by 2030 from some $650 million in 2020, according to BCC
Publishing. Still, miners face headwinds from activists and
investors who are increasingly gauging environmental concerns.
Vancouver-based ocean-mining pioneer Nautilus Minerals Inc. went
bankrupt in 2019 after public outcry and financial setbacks for a
project off the coast of Papua New Guinea.
BMW ranks in the top 37% for materials sourcing and efficiency
among 46 automobile companies world-wide, according to The Wall
Street Journal's environmental, social and governance research.
Write to Dieter Holger at dieter.holger@wsj.com;
@dieterholger
(END) Dow Jones Newswires
March 31, 2021 07:29 ET (11:29 GMT)
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